Finance ministry moves to take over insurance sector
Wednesday, 26 March 2008
FE Report
An initiative to take the responsibility of insurance sector by the finance ministry started Tuesday when it sought policy papers and documents from the commerce ministry, official sources said.
In a letter, the finance ministry said it is essential for it to have all papers and documents to create a department in the ministry aiming to prepare a proper policy on one of the country's growing business sector.
Earlier, the government decided to transfer the insurance policy department to the finance ministry from the commerce ministry, the sources added.
Transfer of the insurance sector policy making responsibility to the finance ministry is a long-standing demand of the country's insurance operators.
"To have the finance ministry as the new policy maker is our long-standing demand," said Bangladesh Insurance Association (BIA) secretary Nurul Islam Mollah.
The sector has been facing various problems, mainly relating to fiscal measures that only concern the finance ministry. The sector is treated as a specialised industry and vested with the finance ministry everywhere, he said.
He said: "The finance ministry as a new policy maker will bring new dynamism in the insurance business, which is essential to fulfil the expectation of the growing sector."
Commerce ministry officials said they are ready to leave the responsibility of making policy on insurance sector with finance ministry. The commerce ministry has already prepared a draft to amend the Insurance Company Act 1938.
The amendment to the act, which is awaiting approval of the advisory council, is essential to facilitate the transfer, they said.
An initiative to take the responsibility of insurance sector by the finance ministry started Tuesday when it sought policy papers and documents from the commerce ministry, official sources said.
In a letter, the finance ministry said it is essential for it to have all papers and documents to create a department in the ministry aiming to prepare a proper policy on one of the country's growing business sector.
Earlier, the government decided to transfer the insurance policy department to the finance ministry from the commerce ministry, the sources added.
Transfer of the insurance sector policy making responsibility to the finance ministry is a long-standing demand of the country's insurance operators.
"To have the finance ministry as the new policy maker is our long-standing demand," said Bangladesh Insurance Association (BIA) secretary Nurul Islam Mollah.
The sector has been facing various problems, mainly relating to fiscal measures that only concern the finance ministry. The sector is treated as a specialised industry and vested with the finance ministry everywhere, he said.
He said: "The finance ministry as a new policy maker will bring new dynamism in the insurance business, which is essential to fulfil the expectation of the growing sector."
Commerce ministry officials said they are ready to leave the responsibility of making policy on insurance sector with finance ministry. The commerce ministry has already prepared a draft to amend the Insurance Company Act 1938.
The amendment to the act, which is awaiting approval of the advisory council, is essential to facilitate the transfer, they said.