Govt wants to form insurer for public employees

The government is pondering over whether to set up an "independent" insurance company under Bangladesh Karmachari Kallyan Board (BKKB) to provide insurance to government employees. 

On August 3, the Ministry of Public Administration sent a letter to all secretaries, divisional and deputy commissioners and upazila nirbahi officers to share opinions on the formation of the company by August 17.

Currently there are two state-run insurance companies for all citizens -- Jiban Bima Corporation which deals with life insurance and Sadharan Bima Corporation, which deals with non-life insurance.

Two state-run insurance companies already exist and insurance coverage for government employees can be ensured through those two, said Prof Md Main Uddin, a former chairman of the Department of Banking and Insurance at the University of Dhaka. 

There is no justification for the formation of another insurance company only for government officials and employees, he said. There are many insurers in the country and most of them are not performing well, he added.

There are two state-run insurance companies for all citizens -- Jiban Bima Corporation and Sadharan Bima Corporation

The proposal for forming the company was placed at a BKKB meeting on February 15 and relevant rationales were approved in principle, says the letter.

The board meeting also approved a proposal to appoint insurance experts or entities as consultants for the company.

On April 11, the BKKB sent a letter to the senior secretary to the Ministry of Public Administration seeking approval of the Ministry of Public Administration to form an "independent" insurance company under the BKKB and to appoint consultants and determine the scope of the consultant's work.

This is what prompted the public administration ministry to seek the opinions.