Dhaka, Bangladesh (BBN) – The Insurance Development and Regulatory Authority (IDRA) has formed a probe committee to investigate the reported attempt by the Standard Group to embezzle money through false insurance claim following a fire incident in one of its garment factory in Gazipur.
A three-member committee, under supervision of IDRA consultant AKM Iftekhar Ahmed, will investigate the insurance policies and claim of the Standard Garments and submit the report by March 31, an IDRA statement said.
The committee will also investigate about the Standard Insurance company and other companies and individuals related with the possible forgery, it said.
The Standard Group claimed BDT 9.10 billion in loss after its garment factory in Gazipur was set to fire on November 28 last year.
According to media reports the Standard Garments violated the insurance law as it has its insurance covered in the Standard Insurance Company which is owned by the Standard Group.
The report also said that the Standard Garments has prepared false insurance policies against the affected factory buildings with the help of the Standard Insurance Company and state-owned Shadharan Bima Corporation.
The report said Standard Garments delayed submission of the insurance related documents to the IDRA and some documents were not backed by the money receipts.
BBN/SSR/AD-21Mar14-8:44 pm (BST)
