FIFTY-ONE years of progress of Bangladesh as an impartial state is just not a small achievement. On having reached the milestone, the insurance coverage sector has achieved so much. In the long term, we now have grow to be fairly profitable economically. Immediately, we’re recognised on this planet as a creating nation from a least developed nation, the official transition is scheduled to happen in 2026 although.
Within the insurance coverage sector, we now have additionally had a far-reaching visionary directive within the type of Insurance coverage Growth and Regulatory Authority. March 1 is noticed as Nationwide Insurance coverage Day. That is additionally an enormous achievement for us. The sector continues to enhance progressively by the insurance coverage regulatory authorities.
There was a time when individuals had a detrimental view of insurance coverage. That is altering today. Now individuals insure for their very own wants. The Insurance coverage Growth and Regulatory works for the event of this sector. If it continues to function this manner in future, this sector will play an vital position within the gross home product. We will say that the impression of the insurance coverage sector on the gross home product may be very small. Maybe, this expectation may even add to the account of participation within the gross home product when the insurance coverage sector acquires a powerful place.
Apart from, there may be nonetheless some unhealthy competitors within the insurance coverage sector. We must always get out of it. For this, the motion of the regulatory authority is required by the use of which we are able to eliminate this unhealthy competitors. And to get out of this unhealthy competitors, it’s wanted to incorporate the personal insurance coverage sector within the non-tariff market. Every of us will do enterprise in keeping with our deserves. Let Sadharan Bima Company do a 100 per cent re-insurance. Let the federal government have basic insurance coverage for presidency enterprise. There is no such thing as a want to offer a half of the federal government enterprise to the personal sector.
We have to simplify the obligations with basic insurance coverage in order that we are able to serve prospects with restoration from basic insurance coverage. Now our reinsurances facility is half or 50 per cent. There’s a goal mark that the place, if it exceeds Tk 400 crore for fireplace, Tk 100 crore for marine cargo, Tk 30 crore for marine hull and Tk 20 crore for different/miscellaneous coverages, it might probably carry charges from overseas. If it’s a non-tariff market, it might probably get charges from the market any sum of money.
With out tariffs, unhealthy competitions may even taper off. So within the open market economic system, charges of non-life insurance coverage shouldn’t be bounded by tariff however must be saved open. For that, the insured will get the chance to take insurance coverage protection at low premium charges. And for aggressive costs, we are able to present higher providers for the insured in respect of the world underwriting side.
Apart from, we now have to extend grace interval to at least one month for the deposit of the premium, by adapting the foundations as a result of we now have to supply advantages for purchasers. If nobody pays the premium even after a month, the insured could also be charged for subsequent working days as penalty. If these two points — non-tariff market and a month’s grace time for premium deposit — are addressed, the insurance coverage sector will come to an orderly situation. In consequence, someday the insurance coverage sector will play a significant position within the gross home product.
Ahmed Saifuddin Chowdhury is chief govt officer of Bangladesh Normal Insurance coverage Firm Ltd.