The government is likely to extend further the deadline for submission of applications until April 30 for the insurance companies for getting their fresh licence, said officials concerned.
Last week, the Insurance Development and Regulatory Authority extended the deadline until April 15 from March 31 as some insurers had requested the authorities to facilitate more time saying that they needed to complete a lot of paper works including opening of the bank accounts to deposit their paid-up capital.
Insurer leaders further requested the government to extend the deadline for two more weeks arguing that they needed more time as processing works were being hindered due to the ongoing political turmoil.
‘Insurance companies are worried about finalising their registration process and getting new licence from the regulatory body by April 15 due to the ongoing political unrest in the country,’ Bangladesh Insurance Association president Sheikh Kabir Hossain told New Age on Friday.
‘So, we have requested the government to extend the deadline for their registrations until April 30,’ he said.
Insurance companies are currently busy with fulfilling many conditions set by the IDRA.
‘But it could be harder for the insurance companies to be registered with the IDRA by April 15 as the deadline is getting nearer but there is no sign of an end to political unrest,’ Hossain said.
The IDRA published advertisements on February 20, inviting applications from the interested people willing to set up new insurance companies and had set the deadline for submitting applications on March 31.
Meanwhile, Bangladesh Bank on Thursday issued a circular asking all scheduled banks to allow the proposed insurance companies to open accounts as a number of companies are facing difficulties including opening of bank accounts under the names of their companies.
The companies, which are willing to set up new insurance companies, need to deposit with banks 60 per cent of their paid-up capital as part of their submitting applications for registrations.
According to the Insurance Act 2010, the 60 per cent of paid-up capital of the proposed life insurance companies has to be deposited amounting to Tk 19.56 crore including Tk 1.56 crore as the statutory deposit with the BB against their respective applications for achieving a fresh licence to run insurance business.
On the other hand, the general insurance companies need to deposit Tk 25.56 crore in their respective bank accounts.
The proposed companies also need to submit applications, along with non-refundable deposit worth Tk 5 lakh each in favour of the IDRA.
Currently there are 62 insurance companies operating business in the country. Of these, 44 are general and 18 are life insurance companies.
-With New Age input
