The Cabinet has approved a new insurance law, called the Insurance Corporation Act, 2018, replacing a 1973 version.
Among the changes made in the new Act is that the authorised and paid-up capital of state-run life insurer Jiban Bima Corporation, previously set at BDT200m ($2.39m) in 1973, which was increased to BDT3bn and BDT300m respectively. Similarly, the authorised and paid-up capital of state-owned non-life insurer Sadharan Bima Corporation has been increased to BDT5bn and BDT1bn respectively.
The number of members on the board of directors for Jiban Bima and Sadharan Bima corporations has been increased from seven to 10. The new law also states that at least five people must be present at a board meeting.
The provisions regarding eligibility and professionalism of board of directors have been updated. The provisions on insurance of government property have also been updated.
The newly formulated Insurance Corporation Act, 2018 is comprised of provisions from both the Bima Act 2010 and the Insurance Development and Regulatory Authority Act, 2010. It was also translated to English for better accessibility, reported Dhaka Tribune.
In 2009, the then government had modernised the Insurance Act formulated in 1938, and had named it Bima Act 2010. The government also formulated Insurance Development and Regulatory Authority Act, 2010 to regulate this sector.