& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Let pvt insurance cos underwrite lOOpc public sector businesses

BIA demands separate organisation for removing hurdles

Star Business Report
Bangladesh Insurance Association (BIA) has called for a separate reinsurance organisation and removal of the existing hurdles so that the private companies can underwrite 100 per cent of the public sector businesses.
A BIA delegation led by its Chairman MA Samad recently met Commerce Minister MA Jalil and submitted a memorandum. urging him to remove the obstacles facing the country's insurance industry, a press statement issued by the association said.
Presently, the state-owned Sadharan Bima Corporation (SBC) Is allowed to underwrite
50 per cent of the public sector and 100 per cent of the private sector insurance businesses.
"The present provision oi the Insurance Act compels the private sector companies to reinsure 50 per cent of their businesses with SBC, which has been performing dual functions -- direct underwriting and reinsurance."
SBC is competing with the private sector companies besides acting as their reinsurer, which is against the principle of reinsurance business and this system exists nowhere in the world, the BIA stated.
Bb\ also recommended withdrawal of a letter issued by
the Finance Ministry on August 15. 1995. which advised the nationalised commercial banks (NCBs) to Insure with SBC In case the loanee failed to go for renewal. This is a violation of the provision of Insurance Corporations (amendments) Act 1990. restricting the business scope of the private Insurers
Presently, foreign Investors in the energy sector are violating the provisions of the Insurance Act by having their insurance with foreign Insurers. This Is not only depriving the local insurers of crores of taka In premiums, but also causing drainage of foreign exchange But as per the Insurance Act
provision, all Insurance have to be effected with the local insurance companies.
BLA also referred to the present enlistment system of the insurance companies by banks which has been creating serious problems. As a result of this, the private sector Insurance companies are being deprived of enormous business scopes.
The commerce minister told the delegation that a high-powered Insurance advisory committee will be formed with the minister as its chairman. Chief Controller of Insurance Syed Tanveer Hossain was also present in the meeting.