JS passes Insurance Corporation Bill, 2019

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SANGSAD BHABAN, April 30, 2019 (BSS) – Insurance Corporations Bill, 2019 was passed in the Jatiya Sangsad today aiming to raise the amount of the authorized and paid-up capital of both Jiban Bima Corporation and Sadharan Bima Corporation.

Finance Minister AHM Mustafa Kamal moved the bill in the House which was unanimously passed by voice votes, with Speaker of the Jatiya Sangsad Dr Shirin Sharmin Chaudhury in the chair.

Piloting the bill, the minister said under the new law, the authorized capital of the Jiban Bima Corporation will be Taka 300 and Taka 500 crore for the Sadharan Bima Corporation while the paid-up capital will be Taka 30 crore and Taka 125 crore respectably.

At the time of inception, the authorized capital of the each of the state-run insurance corporations was Tk 20 crore, which is very much insufficient at the present need, according to the bill placed in the House.

The bill, which will replace the Insurance Corporations Act, 1973, suggests a 10-member governing body, instead of existing seven-member body, in Sadharan Bima Corporation and Jibon Bima Corporation each.

Each governing body will be formed with a chairman, two representatives (joint secretary level) from the Financial Institution Division, one representative (joint secretary level) from the Finance Division, one representative (joint secretary level) from the Commerce Ministry, the director of Bangladesh Insurance Academy, two persons (insurants) involved in insurance business, nominated by the government, one accountant nominated by the government, and the managing director of the respective corporation.

The directors of the governing boards will be appointed for three years, while one could get reappointment for maximum one year.

The finance minister placed the bill in the House on March 6, this year, and it was sent to the respective scrutiny committee for further examination. The committee was asked to submit its report within 30 days.

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