Formation of Insurance Control Authority delayed as law yet to take effect
Monday, 3 November 2008
S M Jahangir
Establishment of an Insurance Control Authority (ICA) is hanging in the balance as the related ordinance is yet to take effect, sources said.
"Though the gazette notification on the Insurance Control Authority Ordinance 2008 was made 20 days back, the process of setting up such an authority is being delayed as no date has been set for the new law to come into effect," an official source told the FE.
The government made the gazette notification on October 13 on the ordinance, under which the ICA will be set up.
But the government, according to a provision, requires to issue a separate gazette notification, setting a date for the new ordinance to take effect, which has not yet been done.
"The government in a fresh gazette notification will have to set a date for the new ordinance to take effect," said an official, citing the provision of the new law.
The government will form the Insurance Control Authority under the new ordinance only after it comes into force.
The authority, comprising a chairman and four members, will be set up in order to oversee the country's insurance business and protect the interests of policyholders for the sake of systematic development of the insurance sector, officials said.
"Since effectiveness of the new ordinance is a prerequisite for establishment of the Insurance Control Authority, the government should take necessary steps in this connection," said a sector insider.
An official concerned said implementation of provisions under the new insurance ordinances can not be possible without creation of such an authority.
Apart from the aforesaid ordinance, a separate law 'The Insurance Ordinance 2008' also came into being through a gazette notification, officials said.
Formation of the new authority is aimed at bringing all insurance companies -- both private and public-- under a uniform regulatory framework, sources said.
Previously, the Chief Controller of Insurance regulated the private insurance companies while the state-owned Sadharan Bima Corporation (JBC) and Jiban Bima Corporation (JBC) were regulated under the Insurance Corporation Act 1973, sources said.
The Insurance Control Authority, according to sources, will replace the 'Chief Controller of Insurance' (CCI), sources said.
Establishment of an Insurance Control Authority (ICA) is hanging in the balance as the related ordinance is yet to take effect, sources said.
"Though the gazette notification on the Insurance Control Authority Ordinance 2008 was made 20 days back, the process of setting up such an authority is being delayed as no date has been set for the new law to come into effect," an official source told the FE.
The government made the gazette notification on October 13 on the ordinance, under which the ICA will be set up.
But the government, according to a provision, requires to issue a separate gazette notification, setting a date for the new ordinance to take effect, which has not yet been done.
"The government in a fresh gazette notification will have to set a date for the new ordinance to take effect," said an official, citing the provision of the new law.
The government will form the Insurance Control Authority under the new ordinance only after it comes into force.
The authority, comprising a chairman and four members, will be set up in order to oversee the country's insurance business and protect the interests of policyholders for the sake of systematic development of the insurance sector, officials said.
"Since effectiveness of the new ordinance is a prerequisite for establishment of the Insurance Control Authority, the government should take necessary steps in this connection," said a sector insider.
An official concerned said implementation of provisions under the new insurance ordinances can not be possible without creation of such an authority.
Apart from the aforesaid ordinance, a separate law 'The Insurance Ordinance 2008' also came into being through a gazette notification, officials said.
Formation of the new authority is aimed at bringing all insurance companies -- both private and public-- under a uniform regulatory framework, sources said.
Previously, the Chief Controller of Insurance regulated the private insurance companies while the state-owned Sadharan Bima Corporation (JBC) and Jiban Bima Corporation (JBC) were regulated under the Insurance Corporation Act 1973, sources said.
The Insurance Control Authority, according to sources, will replace the 'Chief Controller of Insurance' (CCI), sources said.