Bangladesh: Insurance bill being reviewed by lawmakers' committee
Source: Asia Insurance Review | Apr 2019
The Insurance Corporation Bill, 2019 has been placed before parliament, introducing changes including raising the amount of the capital of life insurer Jiban Bima Corporation and non-life insurer Sadharan Bima Corporation, both of which are state owned.
The bill, which will replace the existing insurance law enacted in 1973, has been sent by lawmakers to a scrutiny committee.
Under the bill, the authorised capital of the Jiban Bima will be BDT3bn ($35.7m) while the paid-up capital will be BDT300m (at present: BDT200m and BDT50m respectively). The authorised capital of Sadharan Bima will be BDT5bn and paid-up capital BDT1.25bn (at present: BDT200m and BDT100m respectively).
The number of members on the board of directors for Jiban Bima and Sadharan Bima will be increased from seven to 10. The bill also states that at least five directors must be present at a board meeting.
Provisions regarding eligibility and professionalism of board of directors will be updated. A