Insurance Claims & Reinsurance in Bangladesh

by Barrister Tahmidur Rahman | Sep 14, 2026

Disputes & ArbitrationCoverage, recovery and reinsurance disputes8 min read

Insurance Claims & Reinsurance in Bangladesh

We advise policyholders, insurers, reinsurers and brokers on commercial insurance claims and reinsurance disputes in Bangladesh, from notification and coverage positions to arbitration, court proceedings and recoveries involving London, Singapore and other overseas markets, with practical support at every stage of contested insurance claims.

Overview

How we handle insurance claims and reinsurance disputes

A large commercial loss tests the policy wording, the claims record and the relationships between insured, insurer, broker and reinsurer all at once. Our practice handles contested insurance claims arising from fires, floods, cargo damage, machinery breakdown, construction defects, business interruption and liability exposures, together with the reinsurance questions that follow. We act for Bangladeshi manufacturers, exporters, banks, project companies and foreign groups, and for insurers and reinsurers. The work forms part of our dispute resolution practice in Bangladesh, and draws on the firm's arbitration and banking experience. Our focus is on commercial insurance claims rather than consumer policies.

Insurance business in Bangladesh is regulated under the Insurance Act 2010 and supervised by the Insurance Development and Regulatory Authority (IDRA), which licenses insurers, brokers, agents and surveyors. Policy disputes, however, are mainly contractual. They turn on the wording, endorsements, warranties and conditions, read with Bangladeshi contract and evidence law and with established insurance principles such as utmost good faith, insurable interest and proximate cause. Many commercial policies issued in Bangladesh contain an arbitration clause for disputes about the amount payable, while coverage disputes may go to court. Identifying the right forum early matters for insurance claims of any size.

Reinsurance adds another layer. Bangladeshi insurers commonly cede large industrial and project risks to overseas reinsurers through facultative placements or treaties, and the state-owned Sadharan Bima Corporation has a significant role in the domestic non-life reinsurance market. Reinsurance contracts are often governed by English law or contain London or Singapore arbitration clauses, while the underlying policy is governed by Bangladeshi law. A settlement agreed locally may not be recoverable from reinsurers if notice, claims cooperation or claims control provisions were not followed. We review both levels together, so that direct insurance claims and reinsurance recovery stay aligned.

Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise on coverage, reinsurance wordings and arbitration, drawing on their finance and international arbitration practice, while Adv Syed Wahid, our founding partner, leads court proceedings in Bangladesh. Where a policy, reinsurer or broker sits in another market, we work with counsel in the UK, US, UAE, China, India and Singapore. We coordinate with loss adjusters, surveyors, forensic accountants and engineers, but keep the legal analysis separate from technical assessments, so that each conclusion rests on evidence that will stand up if insurance claims end in formal proceedings before a tribunal.

Timing is often the most important factor. Policies set notice and proof-of-loss conditions, insurers issue reservations of rights, and the Limitation Act 1908 and contractual time bars limit how long a claimant can wait. Large losses in Bangladesh also attract police, fire service, customs or regulatory inquiries whose findings can influence insurance claims. We help clients act within those windows, keep the record consistent and decide when to negotiate, mediate or start proceedings. For an early, practical view of a disputed loss, you can contact our Dhaka office with the policy schedule, the claim file and key correspondence.

01 · What we handle

Core workstreams

  • Coverage opinions and positions
  • Notification and claims management
  • Property, cargo and engineering losses
  • Liability and financial lines claims
02 · How it runs

Four clear stages

  1. 01Policy and record review
  2. 02Position and strategy
  3. 03Evidence and negotiation
  4. 04Proceedings and recovery
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

What we handle

Workstream 01Disputes & Arbitration

Coverage opinions and positions

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
Workstream 02Disputes & Arbitration

Notification and claims management

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
Workstream 03Disputes & Arbitration

Property, cargo and engineering losses

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
Workstream 04Disputes & Arbitration

Liability and financial lines claims

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
Workstream 05Disputes & Arbitration

Reinsurance disputes and recoveries

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
Workstream 06Disputes & Arbitration

Arbitration, litigation and subrogated recovery

  • Policy and record review
  • Position and strategy
  • Evidence and negotiation
  • Proceedings and recovery
01

Coverage opinions and positions

We review policy schedules, wordings, endorsements, exclusions, warranties and deductibles against the facts of a loss, and advise on whether cover responds and in what amount. For insurers, we help frame reservations of rights and declinatures that are reasoned and defensible. For policyholders, we identify arguments on causation, construction and waiver, and prepare a clear response to any refusal or partial payment, so insurance claims move forward on clear terms.

02

Notification and claims management

Large insurance claims are won or lost on the record. We help prepare notices, proof-of-loss submissions and responses to surveyor and adjuster requests, and keep correspondence consistent with the legal position. We advise on documents to preserve, on interim payments, and on how to deal with requests that go beyond the policy conditions without appearing uncooperative or prejudicing later proceedings. We also track every contractual deadline.

03

Property, cargo and engineering losses

We handle disputes over fire, flood, cyclone and industrial all risks policies, marine cargo and inland transit cover, machinery breakdown, contractors' all risks and erection all risks. These claims often raise questions of valuation, underinsurance, average, reinstatement and business interruption, and we work with surveyors and accountants to test quantum while keeping the legal arguments distinct from technical evidence. Cargo insurance claims also need early notices to carriers.

04

Liability and financial lines claims

We advise on claims under public and product liability, professional indemnity, directors' and officers' liability, crime, fidelity guarantee and trade credit policies. These insurance claims usually depend on the underlying allegation against the insured, on consent and defence-cost provisions, and on the interaction with other policies. We coordinate coverage advice with the defence of the underlying claim, so that one does not damage the other or waste the policy limit.

05

Reinsurance disputes and recoveries

We act on facultative and treaty disputes involving Bangladeshi cedants and overseas reinsurers, including notice, claims cooperation, follow-the-settlements, aggregation and recovery wording. We review the reinsurance contract alongside the underlying claim, advise on presenting ceded losses, and coordinate with English or Singapore counsel where the reinsurance is governed by foreign law or subject to foreign arbitration. Reinsurance claims are prepared to match the underlying settlement record.

06

Arbitration, litigation and subrogated recovery

Where negotiation fails, we conduct arbitration under policy clauses and court proceedings in Bangladesh, including money suits and related applications. After a payment, we advise insurers on subrogated recoveries against carriers, contractors, suppliers and other responsible parties, and on contribution between insurers. We also handle allegations of misrepresentation, non-disclosure or fraud, which require careful evidence and measured correspondence on both sides; in contested insurance claims they can shift the balance.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Disputes & Arbitration matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

Our insurer has rejected our claim. What can we do?

First, ask for the reasons in writing and obtain the surveyor's or adjuster's report if it has not been shared. A declinature should identify the policy terms relied on; many rest on a disputed fact or an arguable reading of an exclusion or warranty. We review the wording, the claims record and the timeline, then prepare a reasoned response. Many disputes settle at this stage once both sides see the evidence. If they do not, the policy may require arbitration on quantum, while coverage may go to court. A complaint to IDRA is separate and does not replace contractual remedies.

02

How long do we have to bring insurance claims to court or arbitration?

There are two separate clocks. The policy itself may set conditions on notice and proof of loss, and sometimes a contractual period after which a claim is treated as abandoned. Separately, the Limitation Act 1908 sets general periods for suits based on contract, and the starting point can be disputed in insurance cases. Arbitration clauses may also carry their own time requirements. Because these rules interact and can be decisive, we review the policy and the correspondence as soon as a dispute emerges and diary every possible deadline. Waiting for the insurer's final position can be risky.

03

The surveyor's report undervalues our loss. Are we legally bound by its findings?

Generally no. In Bangladesh, insurers usually appoint a licensed surveyor or loss assessor whose report informs the insurer's decision, but it is not a binding determination of the claim. Policyholders can challenge the methodology, the valuation basis, the treatment of salvage and underinsurance, and any factual findings on cause. We often recommend an independent valuation or forensic accountant, prepared with dispute resolution in mind, so the evidence can be used in negotiation, arbitration or court. Correspondence disputing a report should be specific and supported, rather than a general objection, as it may later be read by a tribunal.

04

Can a reinsurer refuse to pay even though the Bangladeshi insurer has already settled the claim?

It can, depending on the reinsurance wording. Many contracts include follow-the-settlements language, which usually obliges reinsurers to follow a settlement made in good faith and within the terms of the reinsurance. Others contain claims cooperation or claims control clauses that require the reinsurer's involvement before a settlement, and failure to comply can defeat or reduce recovery. Questions of aggregation, policy period and exclusions can also differ between the two layers. Where the reinsurance is governed by English law or subject to foreign arbitration, we coordinate with counsel there while handling the Bangladesh side of the insurance claims.

05

Do insurance claims disputes in Bangladesh go to arbitration or court?

It depends on the policy and the issue. Many commercial property and engineering policies issued in Bangladesh refer disputes about the amount payable to arbitration, while disputes about liability or whether cover exists at all may fall outside that clause and go to court. Some policies are silent, and insurance claims then proceed by money suit. The Commercial Courts Act 2026 may also be relevant to commercial insurance disputes, depending on how jurisdiction is allocated in practice. We read the clause closely before acting, because starting in the wrong forum wastes time and can create avoidable jurisdictional arguments.

06

What happens if the insurer alleges misrepresentation or non-disclosure when cover was placed?

Insurance contracts require utmost good faith, and an insurer may seek to avoid a policy or reject a claim if material facts were misstated or not disclosed when cover was placed or renewed. The key questions are what was actually asked or presented, whether the fact was material, whether the insurer was induced by it, and whether the insurer later waived the point by accepting premium or handling the claim. We review the proposal form, broker correspondence and underwriting file, and respond with evidence. Allegations of fraud are serious and need a measured, documented answer rather than an angry one.

07

Can business interruption losses be included in insurance claims after a fire or flood?

Only if the policy includes business interruption or consequential loss cover, and usually only where there has been insured physical damage that caused the interruption. The policy will define the indemnity period, the gross profit or revenue basis, any waiting period and the records required. In Bangladesh, these claims often turn on the quality of the insured's accounts, order books and export records, and on whether lost orders resulted from the damage or from wider market factors. We work with forensic accountants to present the claim properly and to answer the insurer's challenges to the basis of calculation.

08

How does subrogation work after our insurer pays, and what must we do?

Once an insurer indemnifies the insured, it is generally entitled to step into the insured's position and pursue recovery from a third party responsible for the loss, such as a carrier, contractor, supplier or neighbouring occupier. The insured must usually cooperate and must not release the third party in a way that prejudices that right. Recovery may proceed in the insured's name, and time limits run against the underlying claim. We advise insurers on recovery prospects and policyholders on protecting uninsured losses, such as deductibles, so that both interests are pursued efficiently and without conflict between insurer and insured.

How a matter runs

From first call to resolution.

  1. 01

    Policy and record review

    We review the policy schedule, wording, endorsements, broker file, notices, surveyor reports and correspondence, and identify the deadlines, coverage issues and evidence gaps that need attention before the next communication is sent to the other side or to the regulator.

  2. 02

    Position and strategy

    We advise on the strength of the coverage position and quantum, recommend whether to negotiate, mediate or proceed, and prepare a reasoned response to the insurer, reinsurer or policyholder setting out the case clearly and with supporting evidence.

  3. 03

    Evidence and negotiation

    We coordinate surveyors, engineers and forensic accountants, prepare claim submissions or rebuttals, and lead settlement discussions, including any reinsurer consent needed for a binding settlement of the insurance claims, and any lender consent required under the facility documents.

  4. 04

    Proceedings and recovery

    If settlement fails, we begin or defend arbitration or court proceedings in Bangladesh, coordinate foreign proceedings on the reinsurance side, and pursue subrogated or contribution recoveries on paid insurance claims against carriers, contractors and other responsible parties.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Who regulates insurance claims in Bangladesh?
The Insurance Development and Regulatory Authority (IDRA) supervises insurers, brokers, agents and surveyors under the Insurance Act 2010 and related rules, and can receive complaints about claims handling. A regulatory complaint can prompt a response from an insurer, but IDRA does not usually decide contractual coverage disputes. Those are resolved through negotiation, arbitration or the courts, according to the policy wording and the nature of the dispute between the parties. A documented complaint can still help unlock a stalled claim.
Do you act for policyholders or insurers?
Both, subject to conflict checks on each matter. We advise commercial policyholders, including manufacturers, exporters and project companies, on presenting and disputing insurance claims, and we advise insurers and reinsurers on coverage, reservations, declinatures and recoveries. Acting on both sides of the market gives us a practical view of how claims are assessed, which helps in negotiation, in anticipating the other side's arguments and in preparing evidence that will persuade a tribunal or court.
Should we accept a partial payment on one of our insurance claims?
Possibly, but check the terms first. An interim or partial payment can ease cash flow after a loss, but a discharge voucher or settlement form may release the remaining claim if it is signed without qualification. We review the documents and, where appropriate, propose wording that accepts the payment on account while reserving the balance. Banks with an interest in the policy may also need to consent before any settlement, and their consent should be obtained in writing.
What documents should we keep after a major loss?
Keep the policy and all endorsements, renewal and broker correspondence, notices, photographs and video, maintenance and safety records, stock and asset registers, purchase invoices, accounts, export orders and every communication with surveyors and the insurer. Fire service, police and customs reports are also important. Preserve electronic records and messaging apps, and stop routine deletion. These materials form the backbone of insurance claims and of any later dispute, so keep originals safe and organised.
Can a bank that financed our assets claim under our policy?
Often yes. Banks in Bangladesh routinely require that they are named as loss payee or that the policy is assigned or endorsed in their favour as security. In that case, the insurer may pay the bank directly, or require its discharge before paying the insured. The arrangement affects who controls settlement and how proceeds are applied. We review the endorsement and the facility documents together to avoid disputes between borrower, bank and insurer when insurance claims are paid.
Are reinsurance disputes heard in Bangladesh?
Sometimes, but many reinsurance contracts placed with overseas reinsurers are governed by English law and refer disputes to arbitration in London or another foreign seat. Domestic reinsurance arrangements may fall under Bangladeshi law. We identify the governing law and forum at the outset and, where proceedings are abroad, act as Bangladesh counsel alongside foreign lawyers, supplying evidence on the local policy, the settlement and the underlying loss, so that the reinsurance claims stay consistent.
Can insurance claims be settled through mediation?
Yes. Mediation is often effective for insurance claims where the parties disagree mainly on quantum or where there are several insurers and a reinsurer to align. It can be agreed at any stage, and Bangladeshi procedural rules encourage mediation in civil proceedings, including new pre-case mediation requirements for some disputes. Any settlement should be recorded carefully, with reinsurer consent where required, so that it is binding and recoverable from every party involved, including reinsurers and lenders.
Does foreign exchange law affect claim payments from overseas reinsurers?
It can. Reinsurance recoveries and premium payments between Bangladesh and overseas markets flow through authorised dealer banks under Bangladesh Bank foreign exchange rules, and documentation is required for inward and outward remittances. Delays in remittance can strain an insurer's ability to pay a local claim promptly. We advise on the documentation and contractual terms that reduce friction, and coordinate with banks where payments are held up, so that local insurance claims are not delayed further.

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