Financial sector experts at a seminar on Thursday said that the government’s negligence was the major impediment to the development of the country’s insurance sector.
They also said that the members of the Insurance Development and Regulatory Authority were not equipped with enough knowledge about the insurance industry to serve the sector.
They made the allegations while speaking at a seminar on ‘role of insurance sector in developing economy’ organised by the Bangladesh Insurance Association at its office in the city.
BIA president Sheikh Kabir Hossain said, ‘The insurance sector is very much neglected by the government in our country. The trend is reverse in the developed countries.’
Insurance policy is almost everywhere mandatory in the developed countries and that has helped the sector to grow there, he said.
‘Though the government has constituted a regulatory body for the sector, but the regulatory body is yet to be strengthened with proper manpower and regulations,’ he said.
‘We have requested the government several times to open a separate department for the insurance sector under the finance ministry, but no response is yet to be found,’ said the BIA president.
Federation of Bangladesh Chambers of Commerce and Industry president Kazi Akram Uddin Ahmed said that the government should take necessary steps to empower the regulator as soon as possible.
He also requested the government to scrap 5 per cent source tax on premium and commission earning.
Eastland Insurance chairman Mahbubur Rahman said, ‘Insurance sector is the most neglected sector by the government.’
He also said that the some of the members of the IDRA were not properly equipped with knowledge to serve the sector properly to boost the growth of the sector.
State minister for finance MA Mannan said, ‘If there is any negligence, it is not intentional.’
The main motto of the government is to facilitate the businesspeople as they play the key role in driving country’s economy, Mannan said.
IDRA acting chairman Kuddus Khan said that along with facilitating the insurance sector the regulator would always try to stop irregularities in doing business.
‘Every company should try to prevent irregularities on their own to ensure good governance.’
Companies should take steps to dispose claims promptly which will help to restore clients’ confidence over the insurance companies, he said.
BIA vice-president Ahsanul Islam Titu also spoke on occasion.
-With New Age input
