Rat race for obtaining insurance company license

by Special Correspondent
October 23, 2011

http://www.weeklyblitz.net/1897/rat-race-for-obtaining-insurance-company-license

Hundreds of applicants, mostly belonging to the ruling party have applied for license to start insurance companies in Bangladesh. Following government's decision of issuing fresh licenses, members of parliament, bureaucrats, army officials, political activists and businessmen have submitted applications with Insurance Development and Regulatory Authority [IDRA]. Sources in IDRA said, meanwhile more than two hundred applications have already been submitted, which may rise up to five hundred till the process starts for granting license. Currently 63 insurance companies are operating in Bangladesh, out of which 41 are general insurance companies. On the other hand 18 life insurance companies are also in operation in the country. State-owned Jiban Bima Corporation and Shadharan Bima Corporation are operating as life insurance and general insurance companies respectively.

Sheikh Kabir Hossain, relative of the Prime Minister has applied for license of an insurance company named Sonar Bangla Life Insurance. Few of the applicant companies are: Mercantile Life Insurance, Medina Life Insurance, Islami Life Insurance, Asia Life Insurance, Sunderban Islami Life Insurance, Diamond Life Insurance, South Bengal Micro Life Insurance, Northern Life Insurance, Korotoa Life Insurance, Al-Amin Islami Life Insurance, Toyota Life Insurance [not clear if this is a venture of Toyota Motor Company, Japan], Continental Life Insurance, Global Life Insurance, Sonali Life Insurance, Agrani Life Insurance, Jibon Tori Life Insurance, Seba Insurance, Liberty Life Insurance, Star Line Life Insurance, Desh-Bangla Life Insurance, Provident Life Insurance, OMC Life Insurance, Legend Mutual Life Insurance, Zurich Life Insurance, Royal Life Insurance, Alfa Life Insurance, Total Life Insurance, Alike Life Insurance, Euro-Asia Life Insurance, Progressive Life Insurance, Jethro Life Insurance, Joy Bangla Life Insurance, East Bengal Life Insurance, East End Life Insurance, Eximco Life Insurance, Modhumoti Life Insurance, MAQ Life Insurance, Lal-Sobuj Life Insurance, Guardian Life Insurance, Shahjalal Life Insurance and Asia Life Insurance.

Authorities concerned hinted that few fresh licenses will be issued to new insurance company before June 2012. It also said application in prescribed forms will be invited from the prospective promoters in this regard. Earlier, the government decided to issue fresh licenses for banks, where a few dozens of influential leaders of the ruling party have already submitted applications seeking license for starting commercial banks.

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