The Insurance Corporation Bill, 2019 was placed in Parliament on Wednesday, aiming to raise the amount of the authorised and paid-up capital of both Jiban Bima Corporation and Sadharan Bima Corporation.
The Insurance Corporation Bill, 2019 will replace the previous act framed in 1973.
Finance Minister AHM Mustafa Kamal placed the bill in the House and it was sent to the respective scrutiny committee for further examination. The committee was asked to submit its report within 30 days.
Under the new law, the authorised capital of the Jiban Bima Corporation will be Tk 3.0 billion (Tk 300 crore) while the paid-up capital Tk 300 million (Tk 30 crore). The authorised capital for Sadharan Bima will be Tk 5.0 billion (Tk 500 crore) and paid-up capital Tk 1.25 billion (Tk 125 crore).
At the time of inception, the authorised capital of the each of the state-run insurance corporations was Tk 200 million (Tk 20 crore), which is very much insufficient at the present need as the objective of the bill reads.
According to the new law, the Board of Directors the corporations will have 10 members representing experts of different professions instead of the existing seven, reports UNB.