INSURANCE COS
11 licences to be issued, mostly to ruling party loyals
At the fag end of its tenure, the government on Thursday decided to award 11 licences for new insurance companies, mostly to businesses loyal to the ruling party Awami League.
The Insurance Development and Regulatory Authority at a board meeting on the day approved awarding nine for life insurance companies and two licences for general insurance companies.
The new life insurance companies that will get licence are Mercantile Islami Life Insurance Ltd, Taiyo Summit Life Insurance Co Ltd, Sonali Life Insurance Co Ltd, NRB Global Life Insurance Co Ltd, Protective Life Insurance Co Ltd, Guardian Life Insurance Ltd, Chartered Life Insurance Co Ltd, Best Life Insurance and Zenith Islami Life Insurance Ltd.
The Shikder Insurance and Sena Kalyan General Insurance will get licences for setting up general insurance companies.
Sources in IDRA said that sponsors of most of the new life insurance companies had links with the ruling Awami League or party leaders.
They said that the IDRA took hurried decision to award the licences as the present government was approaching the end of its tenure.
The IDRA called for hearing of 75 applicants for the licences between June 16 and 20 after the authorities had received 77 applications till May 15, the last date of submission of applications.
The authorities took a decision only in 15 days to award the licences because of the pressure from the government high-ups, said sources.
The government recently awarded licences for nine commercial banks to some members of parliament of ruling alliance and businesses loyal to Awami League amid widespread criticism.
IDRA chairman Shefaque Ahmed could not be reached despite repeated attempts for his comments.
Earlier, the previous Awami League-led government had issued 11 licences for new insurance companies in 1996-2001, with three given on the last day of the government under controversial circumstances in 2001.
There are 62 insurance companies operating in the country; 43 are general insurers, 17 are life insurers while the remaining two are government owned — one life and another non-life insurance company.
Managing director of an insurance company told New Age on Thursday that the decision to allow 11 more insurance companies would crowd the already saturated sector.
According to the new licencing conditions for general insurance, minimum share for sponsors have to be Tk 4,800,000 and for life insurance it would have to be Tk 3,600,000.
-With New Age input
