Office of the Chief Controller of Insurance (CCI) realised Tk 37.16 lakh in penalty from insurance companies for violation of regulations in 2004-05 fiscal year, official sources said yesterday.

The amount was 65 percent higher than what was realised during the previous fiscal, the sources said, adding the amount in fiscal 2003-04 was Tk 22.52 lakh.

"The increase in the penalty money reflects the growing trend of

violation of the insurance act and regulations by different companies," Feroz Ahmed, Chief Controller of Insurance (CCI), said.

He said at least 90 percent insurance companies violated government rules and regulations in the last fiscal.

Although the annual audited financial statements are to be submitted on prescribed forms to the CCI, with separate disclosure of data on each type of coverage -- life, fire, marine etc -- most companies do not comply with the rules.

"The statements submitted are not sufficient ... we have to carry out special audit for every insurance company," Feroz said.

Asked on the outdated insurance act enacted in 1938 and rules adopted in 1958, Feroz said there is no plan to enact new law, but some amendments are being worked out.

The CCI has already raised the penalty money to Tk 10,000 from Tk 1,000 by an amendment, he added.

Sources said the number of insurance companies has grown from 3 to 62 since 1971.