According to IDRA sources, since its establishment, the Financial Institutions Division approves its yearly budget but it has not yet been approved this year
The salaries and Eid bonus of 58 officials and employees of Insurance Development and Regulatory Authority (IDRA) have become uncertain as the IDRA’s yearly budget has not been approved yet by Financial Institutions Division of the Finance Ministry.
IDRA officials have expressed their frustrations about the uncertainty.
“This kind of situation never occurred since the IDRA was established. From last month (July), there has been a kind of uncertainty over our salaries,” an IDRA top official said, requesting anonymity.
According to IDRA sources, since its establishment, the Financial Institutions Division approves its yearly budget but it has not yet been approved this year.
On April 12 this year, the IDRA sent a letter to the Financial Institutions Division of the Finance Ministry about the regulator’s annual budget but the finance ministry did not respond to the letter, said IDRA sources.
IDRA has one chairman and four members, some executive directors and directors, all appointed on a contractual basis, along with 58 officers and employees appointed on a temporary basis.
IDRA it spends Tk18 lakh per month in salaries of its 58 officers and employees.
IDRA chairman Md Shafiqur Rahman Patwari, speaking to Dhaka Tribune, said: “It is inhumane. Eid-ul-Azha will be celebrated on August 12. Our employees are very disappointed with the uncertainty over their salary and bonuses."
He said: “We have written to the Financial Institutions Division regarding our budget approval. But we did not receive any response from them yet.”
Meanwhile, the Financial Institutions Division alleged that the IDRA former chairman appointed the employees temporarily. They were never made permanent. That is why the budget was not approved.
However, since the establishment, they got their pays regularly, said Shafiqur.
“I took the initiative to regularize their job when I joined this institution. But the issue is yet to be resolved,” he added.
Arijit Chowdhury, additional secretary of the Financial Institutions Division of the finance ministry, said: “There were some queries on the budget proposal from IDRA which will be resolved soon."
IDRA was formed under the provision on Insurance Development and Regulatory Authority Act 2010 on January 26, 2011. The government enacted the Insurance Act 2010 to develop and regulate the insurance business.
IDRA was established for supervising the insurance business and safeguarding the interest of policy holder.
The authorities are working for the systematic development and regulation of insurance industry with a view to implementing the National Insurance Policy 2014.