SBC eyes better earning prospect from mega govt projects
Sunday, 8 May 2011
Asaduzzaman Pallab
State-owned Sadharan Bima Corporation (SBC) sees better earning prospect in the coming years as a good number of mega infrastructure projects are going to be implemented in Bangladesh. The sole state-owned general insurer expects better earning future by bringing those mega projects under insurance coverage. According to the information of ministry of communications, along with Padma bridge project, a number of mega infrastructure projects are now under different stages of implementation. Among them, Dhaka based prominent projects -- elevated express highway, Gulistan-Jatrabari flyover, Mouchak flyover, Jurain overpass and Kuril flyover - are under different stages of implementation. Besides those, communications ministry is implementing a number of projects including construction of roads and bridges outside Dhaka. According to rules, any government project within Bangladesh should be brought under insurance coverage with local state owned insurance company. Sources in the SBC said, last time the SBC earned a premium income of Tk 260 million from Jamuna bridge project alone. The state-run organisation also made commendable income from the Rupsha bridge project, Bhairab bridge project, Lalon Shah project and Jamuna access road project. On condition of anonymity a high official of SBC has told the FE that they expect gross premium income of Tk 1.20-1.25 billion from the Padma bridge project alone as the project size is big. The SBC official said they are in regular contact with the implementing authorities of these mega projects in order to get the insurance deals. During the Ershad regime, the government decided that government owned projects should be brought under the coverage of the state-owned insurance company. But the premium income and the claim liabilities should be shared with a private sector company at a 50:50 ratio. But violating the rules, now-a days some implementing agencies of government projects opted to ink insurance deals with private companies in order to avail undue advantages, alleged a high official of SBC. The private insurance companies can give waiver in many areas including commission and premium rate, which is not possible with the SBC, he added. According to the latest financial data, SBC, the only non-life insurance organisation in the public sector, earned a net profit of Tk 1015 million in 2009.
State-owned Sadharan Bima Corporation (SBC) sees better earning prospect in the coming years as a good number of mega infrastructure projects are going to be implemented in Bangladesh. The sole state-owned general insurer expects better earning future by bringing those mega projects under insurance coverage. According to the information of ministry of communications, along with Padma bridge project, a number of mega infrastructure projects are now under different stages of implementation. Among them, Dhaka based prominent projects -- elevated express highway, Gulistan-Jatrabari flyover, Mouchak flyover, Jurain overpass and Kuril flyover - are under different stages of implementation. Besides those, communications ministry is implementing a number of projects including construction of roads and bridges outside Dhaka. According to rules, any government project within Bangladesh should be brought under insurance coverage with local state owned insurance company. Sources in the SBC said, last time the SBC earned a premium income of Tk 260 million from Jamuna bridge project alone. The state-run organisation also made commendable income from the Rupsha bridge project, Bhairab bridge project, Lalon Shah project and Jamuna access road project. On condition of anonymity a high official of SBC has told the FE that they expect gross premium income of Tk 1.20-1.25 billion from the Padma bridge project alone as the project size is big. The SBC official said they are in regular contact with the implementing authorities of these mega projects in order to get the insurance deals. During the Ershad regime, the government decided that government owned projects should be brought under the coverage of the state-owned insurance company. But the premium income and the claim liabilities should be shared with a private sector company at a 50:50 ratio. But violating the rules, now-a days some implementing agencies of government projects opted to ink insurance deals with private companies in order to avail undue advantages, alleged a high official of SBC. The private insurance companies can give waiver in many areas including commission and premium rate, which is not possible with the SBC, he added. According to the latest financial data, SBC, the only non-life insurance organisation in the public sector, earned a net profit of Tk 1015 million in 2009.