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Country's growing insurance sector is struggling as the posts of top executives have remained vacant for long, resulting in unethical business dealings between the companies concerned and the insurance watchdog.
Sources alleged that a section of officials at the Chief Controller of Insurance (CCI), the regulator of insurance companies, in connivance with the owners of insurance companies are running their respective offices leaving such key posts like that of the managing director (MD) vacant for long.
Sources claimed that over 20 posts, mainly at the fourth generation insurance companies, out of country's 60 general and life insurances were vacant.
"We are paying to the CCI officials in this connection as the sector is in dearth of such qualified personnel. My company is running for years without an MD and my deputy MD is looking after the entire business", an owner of a fourth generation insurance company said.
Refusing to be named, he hinted that the office of the CCI was granting regular appeals for time extension to fill the posts of MDs in exchange of handsome cash.
Admitting that a of number of posts for MDs remained vacant, CCI Feroz Ahmed told the FE that rigid rules laid down for appointment of MDs by the Department of Insurance were main obstacles in finding qualified professionals for these top posts.
Sources in the CCI office said that they would not amend the existing rules as flexibility in the rules will pave the way for the entry of unskilled officials in this post.
"MD should be someone who sets standards in professional excellence. But relaxing the rules may flood the entire sector with unqualified personnel and destroy the insurance sector", Feroz Ahmed said.
Sources at the first generation insurance companies said that owners of the third and fourth generation companies are not taking the matter too seriously as they could have their time extended for appointment of an MD through paying as much as Tk 100,000 to the CCI office.
Sources said that the situation will be worse when insurance companies waiting in the sidelines enter in the market, which is growing at around 22 per cent in life insurance and at about 10 per cent in general insurance sector.
There are currently 60 insurance companies including 43 general insurance entities in the country. More 103 applications for fresh licenses are pending with the ministry concerned.
A senior at the CCI official said entry of 30 insurance companies in short time during the previous regime created this problem. He hinted that issuing fresh licenses by the present ruling government would worsen the situation.
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