Bank accounts to be made must for policyholders: Muhith

The government will make it mandatory for life insurance policyholders to use bank accounts for operating their policies in a bid to ensure guaranteed money back at maturity, said Finance Minister AMA Muhith yesterday.
Muhith said many life insurance policyholders complain that they do not get money at the time of maturity as a section of company officials cheats their clients out of their dues.
But, if the money is transacted under a specific bank account, the policy holders will get the money at maturity of the policy, and the officials will not have a chance to interfere in, he said.
He said he will give a directive to the Bangladesh Bank (BB) after Eid-ul-Fitr so that the central bank can introduce making a bank account mandatory for operating a life insurance policy.
“If a farmer can open an account with only Tk 10, the life insurance policyholders will also be able to open an account with Tk 100. Such an account will guarantee their money,” the minister told journalists after a meeting with the leaders of Bangladesh Insurance Association (BIA) at his secretariat.
The minister also said he will consider tax reduction on the earnings of life insurance agents as their income is not so high. Muhith said the government will relax some rules for Islamic insurance so that they can make profit from the sales of Islamic bonds.
The government is now working on agriculture insurance to make it available for the farmers, he added.
Muhith said the government will strengthen Bangladesh Insurance Academy (BIA) to fill the vacuum of skilled manpower in the sector. At present, the country has no actuary in the non-life insurance sector and there are only three actuaries in the life insurance sector, he said.
“We also need some foreign experts to train the insurance people as the local experts of BIA can hardly impart the required training to the professionals,” he said. The BIA has also some roles to play for the sector, he added.
BIA President Sheikh Kabir Hossain led the delegation during the meeting. The BIA leaders put forward their 16-point demand for the sector. At present, 17 life insurance and 43 general insurance companies are in operation in the country. Replying to a query, the minister said the government will put in all efforts for tackling terrorist financing.