Insurance regulator to get Tk 632cr for upgrade
Rejaul Karim Byron
The government is set to take up a Tk 632 crore project for much-needed upgrade of the insurance regulator with the view to developing Bangladesh's insurance sector.
At present, there are 78 insurance companies and the project has been taken for better monitoring of the companies to ensure better service for clients, said Gokul Chand Das, a member of the Insurance Development and Regulatory Authority.
“The project is necessary for ensuring transparency and accountability in the activities of the insurance sector and to increase people's trust in it.”
Of the project cost, Tk 91 crore would go towards building the IT infrastructure, Tk 79 crore for automation, and about Tk 9 crore for setting up distance learning centre and implementation of the interactive portal of the IDRA.
The second component of the project is modernisation of the state-owned Sadharan Bima and Jiban Bima Corporation.
A big amount, Tk 84 crore, has been earmarked for consultancy fees under the project and about Tk 51 crore for training about 45,000 people.
The Bank and Financial Institution Division has sent the project to the planning ministry, which will place it before the Executive Committee of the National Economic Council this week for approval.
Of the total project cost, the World Bank will provide Tk 513 crore. The IDRA has been established for the purpose of supervising the insurance business and safeguarding the interest of policyholders.
Since its establishment in 2011, the IDRA has neither been given the human and financial resources nor the independence to carry out its activities in an effective manner to help achieve the objectives, said the WB.
The main goal of the project is to equip the IDRA to build and put into practice a professional and modern regulatory and supervisory system, it added.
Source:
http://www.thedailystar.net/business/insurance-regulator-get-tk-632cr-upgrade-1539733
