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‘Insurance companies are pledge bound to cover losses as per agreement’

  • Published at 01:06 am March 17th, 2018
  • Last updated at 01:07 am March 17th, 2018
‘Insurance companies are pledge bound to cover losses as per agreement’

‘Insurance companies must cover losses under regulations’

At the roundtable, Managing Director of Guardian Insurance Ltd, Monirul Alam said: “Insurance companies operate under regulations that make covering losses of customers mandatory, and aircraft insurance falls under this jurisdiction. “Insurance companies in Bangladesh are very serious, and I firmly believe that they will follow regulations to the letter.” Recommending initiatives to move this sector forward, Monirul said: “The agents have to be thoroughly trained. The insurance sector has become much more accessible in other countries.” “In some places, insurance is being sold through smartphone applications. We could take the same approach. We must raise awareness about the benefits of insurance policies.” He added: “We urge that a government initiative be taken so that people can buy policies from home using their credits cards. We are working to make this approach a reality.”

‘US-Bangla plane crash victims will be compensated by insurance companies’

Chairman of Meghna Life Insurance Ltd Nizam Uddin Ahmed said: “The insurance industry operates under strict regulations, and under these regulations the companies will certainly compensate the nominees of the deceased victims of the US-Bangla plane crash. “The insurance companies cannot refrain from doing so, as the agreement between the policy holders and the companies was inked under international regulations.” He added: “Some companies had re-insurance policies taken from foreign companies based in Britain and other countries. So, the Bangladeshi companies will have to cover their losses, as per regulations.”

‘Bangladeshi companies only pay 50% of insurance’

Green Delta Insurance Ltd Advisor Chairman Nasir A Chowdhury said: “As per Bangladeshi law, insurance companies only cover 50% of the losses. “The law is in place because it is difficult for smaller companies to pay large amounts of compensation to policy holders. Under the circumstances, many customers take re-insurance from foreign companies.” Nasir pointed out that he does not know the total amount of insurance US-Bangla airlines has. Citing an example at the roundtable discussion, Nasir said: “A plane lost half of its fuselage while making a landing in Rawalpindi. An insurance company covered all losses from the incident.” “It was possible because the insurance company had re-insurance with a foreign company. So, the local company was able to fully compensate its customers.”

‘Most Bangladeshis have little knowledge about insurance’

Addressing the discussion, Lawyer Fahria Ferdous said: “The people of Bangladesh have little or no knowledge about insurance policies. If someone approaches us to sell policies, we view and treat them as middlemen.” “We have failed to showcase the benefits of insurance since the 1971 Liberation War.  People in rural areas have absolutely no idea what an insurance policy is.” She added: “The insurance sector is booming across the globe, but in Bangladesh, this sector is lagging behind. The insurance sector needs to be modernized, and be treated like a product. However, insurance companies in the country are yet to take the sector to the next level.” Lawyer Ferdous further said: “Whoever took out an insurance policy, will be paid back in full as per the law.”

‘Insurance policies are agreements’

The Head of News of Bangla Tribune, Harun ur Rashid said: “In general, an insurance policy is just an agreement.” “If I am buying a ticket and travelling on a bus or any other public transportation, then I am a passenger, and I fall under the coverage of that transport’s insurance policy.” He added: “If I suffer losses while travelling, then I should be compensated under that agreement. Insurance companies are much more aware of this fact.” Harun ur Rashid further said: “However, If a person is unaware about the insurance policy regulations, then there remains a possibility of getting cheated. “Customers must educate themselves about the rules and regulations of this sector, and follow the agreement of the insurance policy. This is a service sector, and both parties must remain active.”

‘US-Bangla plane crash victims will get around Tk 22 lakh’

Bangla Tribune journalist Golam Mowla said: “Insurance of those who travel by air is ensured by the authorities. The accident occurred in Nepal, and an investigation is ongoing there. “Officials of Sena Kalyan are currently in Nepal to conduct a probe. After the conclusion of the investigation, the details about compensating the victims will be revealed.” He added: “As far as I know, each victim or his or her family members will receive around Tk 22 lakh as compensation.” Stating that insurance companies only make payments under certain regulations, Golam Mowla said: “This is the first time in Bangladesh’s history that so many people have died in a plane crash on foreign soil. “I have spoken with the officials of an international insurance company based in Britain and the Sena Kalyan Insurance Company Ltd of Bangladesh. They have confirmed that losses of the plane crash victims will be covered.” Discussing the problems plaguing the sector, he pointed out: “Both the government and entrepreneurs have taken little initiative to boost the insurance sector. Even the finance minister has stated that this sector is the most corrupt. “The government does not have enough manpower to regulate this sector. But the manpower issue has not been addressed as yet.”