Use insurance sector for humanistic good: Prime Minister
Rumi Akter Polly of DOT
Yesterday Prime Minister Sheikh Hasina urged the insurance companies to use their industry for humanistic welfare and said that Unified Messaging Platform (UMP) will be introduced to save the customers from insurance-related cheating, reports BSS.
Hasina said, “I hope insurance companies will utilize the insurance industry for humanitarian welfare and play a more effective role to keep production and economy out of risk.”
Yesterday afternoon the premier was addressing as the chief guest the inaugural ceremony of the 15th International Conference on Inclusive Insurance at Pan Pacific Sonargaon Hotel in the capital.
She described inadequacy of information as a major problem for insurance customers.
“Consumers’ confidence in the insurance industry decreases and sometimes they are deceived too, as they remain in the dark about how many installments have been deposited and whether the installment money has actually been credited to the head office”, said the premier.
She said, “To overcome the problem, the process of Unified Messaging Platform (UMP) is ongoing.”
The owners of the insurance companies were requested by Sheikh Hasina to give importance to the issue of social responsibility alongside making profit.
Putting emphasis on introduction of micro insurance schemes to tackle climate change risk, she said that it will greatly benefit lower income group people affected due to natural calamities.
The three-day conference was arranged by the Bangladesh Insurance Association (BIA) in association with Munich Re Foundation and Microinsurance Network (MiN) with the theme ‘Coping With Climate Risk’.
Finance Minister AHM Mustafa Kamal, Senior Secretary of the Financial Institutions Division under the Ministry of Finance Ashadul Islam and Chairman of Bangladesh Insurance Development Authority Shafiqul Rahman Patwary were present as the special guests at the function.
BIA President Sheikh Kabir Hossain presided over the function, while its First Vice-President Prof Rubina Hamid delivered the welcome address.
At the event’s outset, an audio-video presentation on business and insurance in Bangladesh was made.
The prime minister said that a directive has been issued to bring transparency in transactions in the insurance industry.
She also said, “All transactions above Tk 10 thousand must be through a bank. All insurance companies have been instructed to show their updated insurance claims on their own website.”
Hasina said that being the largest Delta in the world, Bangladesh is one of the most vulnerable nations to climate change.
She added, “Insurance can play an effective role in tackling the natural disasters. But application of insurance is very limited and inadequate in covering the risks resulting from natural disaster.”
The prime minister said insurance industry helps reduce the invisible risks of individuals, families and the organizations and also provides financial guarantees to minimize potential risks.
“It also provides protection against loss of life and property. It helps create funds for the country’s capital and investment sectors. So, everyone needs insurance, regardless of the rich and the poor,” she said.
“Our government has been trying to develop the insurance industry. We enacted new Insurance Act 2010 in place of age-old Insurance Act 1938,” she said.
She said the government has also established autonomous regulatory body, Insurance Development and Regulatory Authority (IDRA), dissolving the office of the Chief Controller of Insurance.
The prime minister said insurance policy for the workers working abroad has been introduced. She added, “It will be possible to take insurance risk of about 12 million workers. Under this insurance, a worker will get maximum insurance benefit of Tk. 5 lakh.”