DHAKA: The government has constituted a new controlling authority to reform laws relating to insurance and for its development. The Insurance Development & Regulatory Authority (IDRA) Bangladesh has taken some measures, for the development and control of the insurance bodies, with a view to implementing the laws.

Some new principles have been fixed for the insurance companies. However, the IDRA did not take any measure for creating new customers.

For this reason, some life insurance companies are facing their tough time for survival. Despite, the government has given approval for new fifteen companies.

Managing Director of Prime Islami Life Kazi Murtoza Ali had exclusive talks to banglanews on the success, problem, possibilities and the decisions of the government.

Banglanews: How much quality does possess the policy of the insurance companies of the country?
Mortoza Ali (M A): If you mean various schemes about policy then I must say that these are very much of quality. Our companies are trying to make policies in the line of different developed countries of the world.

Banglanews: How far you think it justified of giving government approval to new 14 companies?

M A: Though Bangladesh is thickly populated still it is a small country. The country’s market is not suitable to afford so many companies at a time. The old companies also did not get any logistic support of the government. The educated meritorious people could not be given any positive conception about insurance matter. There is negative attitude about the insurance policies in the society due to the presence of dishonest and inefficient people in that arena. For that reason the insurance market is small and unstable.

I think that it is not justified to give permission to 14 insurance companies at a time.

Banglanews: How the insurance companies can contribute more in the economic development?

M A: The insurance companies are playing a substantial role in country’s economic development now. At the very step of selling the policy the government revenue is deducted. Moreover the insurance workers are deducting the revenues from their income more in comparison to other professionals.

So, the government revenue will increase more the insurance companies will earn premium.

Moreover, the companies except their management expenditure use all their earnings in purchasing bonds of Bangladesh Bank and invest the other money to other money investing institutions, which contribute to our national economy.

Had the government given more attention on this sector then the insurance companies could play more positive role, I strongly believe.
Banglanews: How much impact it makes on the business through cheque transactions?

M A: Transaction through cheques is a very good initiative. To ensure transparency it is commendable. However the workers are not interested to leave the long habits of cash handling. Moreover the policy holders of rural areas do not like the hassle of bank transactions owing to sufferings in the banks.

Though there is a circular of Bangladesh Bank to open an account by Tk 100 presenting the policy paper. But the most branches of private and government banks are disinterested about it. The BB should look into the matter so that the follow the circular.

Banglanews: What sort of measures should be taken for the development of Islami Insurance?

M A: Our government has given permissions to a number of Islamic Insurance companies. Comparatively their premium income is higher than the contemporary conventional insurance companies. It is not possible to follow the Islamic principles because we are to follow the conventional laws of insurance. The things will be easier if Takaful laws can be adopted. So, it is urgent to adapt Takaful laws in insurance laws for better performance.

BDST: 1515 HRS, FEB 02, 2014