Bangladesh Bank (BB) has withdrawn the compulsory system of enlistment of insurance companies with banks in response to a demand made by Bangladesh Insurance Association (BIA).
BIA chairman Sheikh Kabir Hossain disclosed this in a recent meeting of the chairmen of all private insurance companies.
“I met the honourable Governor of Bangladesh Bank and raised the long outstanding problem of enlistment of insurancecompanies with banks and the BB issued a letter withdrawing the system,” the BIA chairman told the meeting.
He also said that efforts are also going on for going public by the low-cap insurance companies on the basis of the paid-up capital at the time of registration of the respective insurance companies.
The meeting put thrust on restoring the image of the industry by withdrawing commission strictly as per provision to avoid unhealthy competition in the market.
Withdrawing the provision barring directors of insurance companies to become directors of banks & financial Institutions, shortage of qualified human resource in the industry, stopping migration of manpower from one company to another without release order and fixing minimum qualifications at the entry point to join any insurance company, taking necessary steps for early recovery of claims against reinsurance treaty from Sadharan BimaCorporation also came up elaborately for discussion.
The BIA chairman hailed the government for enactment of Insurance Act 2010 and formation of the Insurance Development and Regulatory Authority. He hoped this would go a long way in solving problems of the insurancecompanies ensuring necessary monitoring and supervision over the insurance industry.
Mr. M. Moyeedul Islam, Alhaj Md. Mockbul Hossain, Mr. Nizam Uddin Ahmed, Mr. Zahid Maleque, M.P., Mr. Abdul Matlub Ahmad, Mr. Tofazzal Hossain, Mr. Syed Moazzem Hussain and Mr. M. G. Quddus also spoke on the occasion.
Soure: The financial express, 11 April, 2011