FE Report
A project for enhancing governance and capacity of the country's insurance sector through re-drafting of the laws and by-laws relating to the insurance companies has been initiated recently.
Manila-based donor agency Asian Development Bank (ADB) is financing the project worth Tk 72 million which is likely to be completed by end February 2009.
The Ministry of Finance (MoF) is the implementing agency of the project.
Dr Mahfuzul Haque, Chief Controller of Insurance (CCI) told the FE that the project would enhance the governance and capacity of the country's 62 insurance companies.
"The main task of the project is to recommend some laws and by-laws for better functioning of the insurance companies so that the institutions might provide better and efficient services," Haque added.
He also said a number of local and foreign consultants will be hired under the project.
Sources at the CCI office said that some insurance companies are involved in fraudulent practices mainly due to the lack of enactment of time befitting law.
Currently, the insurance companies are being run by law enacted in 1938 and rules framed in 1958.
Sources at the CCI office said some companies are not paying claims of the clients following lack of laws.
However, the CCI claimed that it had realised nearly 1.0 billion claims over the past six months, which was unresolved for long.
CCI also said the project will facilitate the insurance authority act which is now under final stage.
The government is planning to make the CCI office into an authority and it will work like watchdog in the insurance sector.
"The project will help transform the CCI office into an authority. As a result, the office will perform like the Security and Exchange commission (SEC) to monitor the insurance companies and address the grievances of the clients," CCI added.
Project to re-draft some laws, by-laws for insurance sector initiated
FE Team | Published: July 12, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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