Insurance Association chief calls for mandatory motor ins

Motor insurance should be made mandatory immediately as there was no economy where vehicles run without insurance coverage, said Sheikh Kabir Hossain, president of Bangladesh Insurance Association (BIA).
"Even the honourable prime minister made an instruction to this end, but it's yet to be executed," he told the FE in an exclusive interview at his office recently.

Previously, at least third-party motor insurance was made mandatory for running vehicles on the streets.
But this provision was withdrawn after the enactment of the Motor Act 2018. Instead, a fund has been constituted to compensate liabilities for affected persons and goods in any accident.
Anyone wishing to take risk coverage from insurance companies can take it voluntarily.
Mr Hossain, who was re-elected as chairman of 79 privately-owned life and non-life insurers, said a vested quarter in the transport sector always opposes such mandatory motor vehicle insurance here.
All government and private establishments should be brought under mandatory insurance coverage, he said, adding that both insurance companies and owners of establishments would benefit from such instruments.
He said the inhabitants or owners of those structures or buildings would get insurance coverage for fire accidents, earthquakes or any other disaster.
Such insurance coverage is done mandatorily in developed countries, according to the BIA boss.
Also the chairman of leading non-life insurer Sonar Bangla, Mr Hossain said there is a need for government order on the matter.
"A government order is required to introduce such insurance coverage," the BIA chairman told the FE.
About the much-hyped bancassurance, a partnership business model between banks and insurance companies, Mr Hossain said they have already submitted their final suggestions to the government.
"There were some contradictory provisions in the bancassurance guidelines issued by the Financial Insurance Division. Now, we've amended and submitted it to Financial Institutions Division."
Business by this new insurance model will begin shortly in the country, according to Mr Hossain, saying: "Actually, life insurers will benefit from it (bancassurance)."
Mr Hossain said the insurance regulator IDRA has recently drafted a corporate governance guideline for bringing more transparency in the sector.
They are examining the draft precisely before submitting it to the Insurance Development and Regulatory Authority (IDRA) for its implementation in the industry.
On human resources development in the industry, the BIA chief said: "We're putting emphasis on the setting up of an effective Insurance Academy for developing skilled human resources."
"We had told the former finance minister and also have told the present incumbent of the ministry about adequate supply of skilled manpower for the industry."
According to Mr Hossain, negligence in the settlement of claims by some companies is impacting all insurers.
"They are eight to 10 insurers, but they impact all industry."
jasimharoon@yahoo.com