Generally, a foreign insurer cannot write direct insurance of Bangladeshi risks without being registered with IDRA under the Insurance Act 2010, and Bangladeshi law requires most domestic risks, including import cargo, to be insured locally, subject to limited exceptions. Foreign reinsurers can usually accept reinsurance from Bangladeshi insurers, subject to placement rules, including the share that must go to Sadharan Bima Corporation, and to foreign exchange requirements. Multinational programmes therefore typically use a local fronting insurer. We review the specific structure against current insurance law before policies are issued. Breaching these insurance law rules carries regulatory risk.

A proposed insurer must apply to IDRA for registration and satisfy requirements on minimum paid-up capital, sponsor eligibility and source of funds, fit and proper directors and senior management, a credible business plan, actuarial and reinsurance arrangements, and systems for governance and compliance. IDRA also considers the market's capacity for new entrants. Listing requirements may follow after a period of operation. The application process can be lengthy and requires extensive documents. We help sponsors understand the current requirements, prepare the application and respond to IDRA's questions, coordinating with actuaries and auditors where needed. Early preparation shortens the process.

Start by checking that the claim has been notified in time and that all documents requested by the insurer and the surveyor have been provided, keeping written records of every submission. Insurance law in Bangladesh expects insurers to settle claims within a set period once required documents are received, and IDRA can take action against insurers that unreasonably delay settlements. Options include escalation within the insurer, a complaint to IDRA, arbitration if the policy contains an arbitration clause, or a civil suit. We review the policy, survey report and correspondence and advise on the most effective route.

An insurer may seek to avoid a policy or reject a claim for non-disclosure or misrepresentation of material facts, but the circumstances matter. Questions include whether the fact was material to the risk, whether the proposal form asked about it, whether the insurer or its agent already knew, and, for life policies, the time that has elapsed since the policy was issued. Courts examine these arguments carefully, particularly where the insurer accepted premiums for years. We assess both sides of such disputes under current insurance law and the policy wording before positions harden. The proposal form is key evidence.

Banks may act as corporate agents of insurers under the bancassurance framework issued by Bangladesh Bank and IDRA, subject to approval, limits on the number of insurers a bank may partner with, staff training, disclosure to customers and restrictions on tying insurance to loans. Commission arrangements, data sharing, complaints handling and the responsibility for mis-selling must be documented in the agency agreement. Both regulators may supervise the arrangement. We draft and review bancassurance agreements, advise on approvals and help banks and insurers design compliant sales processes and disclosures. Insurance law and banking rules both apply. Training records should be kept.

Buyers should confirm the insurer's registration and compliance history with IDRA, its capital and solvency position, the adequacy of technical reserves, the quality and valuation of its investments, claims backlogs and disputes, reinsurance arrangements and recoverables, related party transactions, and governance issues. Approval from IDRA, and from BSEC for listed insurers, may be required for acquisitions above certain thresholds or for changes in board control. Foreign buyers also need to consider foreign investment and exchange control rules. We plan diligence and approvals together so the timetable is realistic. Insurance law issues often affect price.

Takaful operators and windows are regulated by IDRA under the same core insurance law, but they must also operate according to Shariah principles. That requires a Shariah supervisory board, segregation of participants' funds from the operator's funds, Shariah-compliant investments and transparent treatment of surplus and deficit. Product documents must describe the takaful model used, such as wakala or mudaraba. IDRA guidance on Islamic insurance supplements the general rules. We help takaful operators and windows document their products, governance and investment policies, and advise on disputes involving takaful contracts. Keep minutes of Shariah board approvals.

Many commercial policies contain arbitration clauses, often for disputes about the amount of loss, with liability questions left to the courts. Arbitrations are conducted under the Arbitration Act 2001, and civil suits proceed in the ordinary courts or, for qualifying commercial disputes, the commercial courts established under the Commercial Courts Act 2026. Policyholders can also complain to IDRA, and mandatory pre-case mediation may apply to some disputes as it is rolled out. We advise on the forum, preserve evidence and aim for negotiated settlement where that serves the client. Insurance law rights depend on timely action.