Fareast Islamic Life Insurance's four-year income-expenditure discrepancy is horrendous. Excluding expenses from their income in the last four years, they are expected to have a surplus of Tk 628.40 crore in the life fund this year. But far from being a surplus, the company's revenue and investment have declined by Tk 1,400 crore.

The Insurance Development and Regulatory Authority (IDRA) is taking initiative to investigate where this huge amount of money has gone.

Reviewing the financial report of Fareast Islami Life for the last four years, it has been seen that the company (from 2015 to 2016) earned a total income of Rs 4,408.14 crore from premium collection and investment. The total expenditure on management and insurance claims is Tk 3,79.64 crore. In other words, there is a surplus of Tk 628.40 crore. Which is the current year's life fund.

This is to increase the company's investment or assets. However, during the period under discussion, income and investment have decreased by Tk 1,400 crore. Of this, FDR alone has decreased by Tk 1,017 crore, bank cash has decreased by Tk 60 crore and total investment has decreased by Tk 160 crore.

In the case of life insurance companies, the net premium is calculated by deducting the reinsurance premium from the total premium collected per year. Added to this is the return on investment. This is the total income of the company. After that, the commission, salaries of development officers, administrative and other sector expenses as well as management expenses were excluded. Expenses for payment of insurance claim are excluded. Which is basically the total cost.

The surplus after deducting the total expenses from the total income is called the current year's life fund. Last year's life fund was also added to this year's life fund. This money from the current year's Life Fund is invested or fixed assets are purchased.

According to Fareast Islami Life's financial report, in 2015, the company's FDR (fixed deposit) in various banks was Rs 1,562 crore. The following year, it fell by Tk 152 crore to Tk 1,420 crore. After that it decreased by another Tk 292 crore and in 2016 it stood at Tk 1,126 crore. And in 2016, this fixed deposit decreased by another Tk 624 crore to Tk 404 crore.

On the other hand, in 2015, the life fund of Fareast Islamic Life Insurance was Tk 3,130 crore. The next year it increased by Tk 6 crore to Tk 3,217 crore. After that it increased by Tk 128 crore and in 2017 it stood at Tk 3,345 crore.

However, in 2016, the company's life fund was reduced by Tk 6 crore to Tk 3,339 crore. In other words, the life fund has increased by Tk 209 crore in three years. Excluding income and expenditure, the amount of life fund in the last three years is Tk. 307 crore.

In 2015, the total investment of the company was two thousand 793 crore 72 lakh. The following year, in 2016, it decreased by Tk 80.53 crore to Tk 2,623 crore. The next year, in 2016, it again increased to Tk 128 crore to Tk 2,650 crore 60 lakh.

However, in 2016, it decreased again by Tk 238.64 crore and the investment amount stood at Tk 2,512.06 crore. And between 2015 and 2016, the total investment decreased by 160 crore 7 lakh taka.

Hemayet Ullah, CEO of Fareast Islami Life, tried to contact him several times but could not be reached.

Insurance Development and Regulatory Authority (IDRA) Acting Chairman. M Mosharraf Hossain said, "We are aware of this information. I am preparing to do a special audit on this company. Then action will be taken against them on the basis of the report.