The Insurance Development and Regulatory Authority (IDRA) has suspended the marine cargo open-policy insurance business of Bangladesh General Insurance Company (BGIC) and Green Delta Insurance PLC for three months over alleged tariff rate violations. 

The regulatory crackdown aims to curb anti-competitive pricing practices and restore discipline within the country's insurance sector.

Separate letters issued by IDRA on November 5 – following head office inspections at both insurers on November 2 – revealed that both companies had substantially undercut prescribed marine cargo insurance rates while issuing policies during 2026.

Alongside the three-month suspension, IDRA issued show-cause notices asking BGIC and Green Delta to explain within 30 days why their registrations for marine cargo open policies should not be suspended under Section 10(1) of the Insurance Act, 2010. 

The immediate suspension was executed under Section 10(2) of the same Act.

Welcoming the regulatory stance, Syed Sehab Ullah Al-Manjur, Chief Executive Officer of United Insurance Company, told Daily Waadaa: "The practice constituted a gross violation of regulations, and those responsible should be punished to ensure discipline in the insurance market."

When contacted by Waadaa for comment, the company secretary of BGIC declined to comment, while the company secretary of Green Delta Insurance did not answer phone calls.

The regulator further noted that offering insurance coverage below prescribed tariff rates violates Section 60 of the Insurance Act, 2010, alongside IDRA Circular No. 80/2021. Such practices trigger unhealthy price competition, erode a level playing field, and weaken the regulatory framework governing premium rates.

The suspension letters were signed by Md Mizanur Rahman, Director (Rating, Audit, and Licensing) at IDRA, and officially served to the chief executives of both insurance firms.