Insurance Corporation Act
The Act has replaced the Insurance Corporation Act passed back in 1973. The incumbent government after coming into power in 2009 took the initiative to modernise the 1938 Insurance Act and in 2010 enacted a new law named as the Bima Act 2010. The government also made the Insurance Development and Regulatory Authority Act, 2010 to effectively regulate this sector. However, the newly formulated Insurance Corporation Act 2019 is comprised of the provisions from both the Bima Act 2010 and the Insurance Development and Regulatory Authority Act, 2010. One of the most significant changes made in the new law is to increase the ceiling of authorized and paid-up capital for both Jibon Bima Corporation and Sadharan Bima Corporation.
The authorized and paid-up capital of Jibon Bima Corporation was previously fixed at BDT 20 crore in 1973, which has now been increased to BDT 300 crore and BDT 30 crore respectively. Similarly, the authorized and paid-up capital of Sadharan Bima Corporation has been increased to BDT 1000 crore and BDT 500 crore respectively. The number of members in the board of directors for Jibon Bima and Sadharan Bima corporations has been increased from seven to eleven people. The provisions regarding insurance of government property as well as eligibility criteria of the board of directors have also been updated.
Insurance Corporations Act 2019
