Sadharan Bima Corporation

Sadharan Bima Corporation (popularly known as SBC) is the one and only state-owned non-life insurer and reinsurer in Bangladesh under the Ministry of Finance, Government of the People's Republic of Bangladesh. Both Sadharan Bima Corporation, the non-life insurer, and Jobon Bima Corporation, the life insurer, were created under the Insurance Corporation Act (Act No. VI) of 1973 of Bangladesh.[1]

History

Up until 1984, SBC was the sole insurer of non-life insurance business in the country. In the same year some private sector non-life insurance companies started operation. Since then, it is providing reinsurance support to private sector non-life insurers. With regard to regulatory control, Insurance Development & Regulatory Authority of Bangladesh regulates all insurance companies in Bangladesh including Sadharan Bima Corporation. Sadharan Bima Corporation is the only insurer of properties owned by Government of Bangladesh. No other private non-life insurance companies are allowed to insure any public property.Under an agreement between Sadharan Bima Corporation and Bangladesh Insurance Association (BIA), half of the business so acquired from insuring public properties, is equally distributed among the private sector non-life insurance companies who, on the other hand, compulsorily reinsure half of their re-insurable business with the SBC.[2] The Company incurred damages worth about Tk 250,000 in 2013 during Operation at Motijheel Shapla Chattar by Hefazat-e-Islam Bangladesh.[3]

Management

The Board of Directors of SBC consists of 07 member including one part-time Chairman. Of the members, 5 are honorary (part-time) and the rest one, the Chief Executive Officer of the company.[2] Ms. Shamima Akhter is the current managing director of Sadharan Bima Corporation (SBC).[4] As an additional duty, she has been discharging her duties as Managing Director since December 2015.

Business performance

The business performance of SBC in the last decade or so is on an upward trend in comparison with the overall performance of the Bangladesh insurance sector.[5] Moreover, the repeated devastating insured events in the RMG sector of the country, namely 2013 Savar building collapse (Rana Plaza Tragedy), 2013 Standard Garment fire and 2012 Tazreen Fashion factory fire, have adversely impacted the performance of SBC despite sufficient reinsurance protection. It has earned a direct premium of BDT 190.96 crore and BDT 218.92 in the year 2013 and 2012 respectively. Regarding reinsurance premium. it made BDT 605.07 crore in the year 2013 and BDT 581.60 crore in the year 2012.

SBC is the sponsor shareholder of Investment Corporation of Bangladesh, Industrial Development and Leasing Company, National Tea Company Limited, National Housing Finance and Investment Ltd, Aramit Ltd, Central Depository BD Ltd.etc. Therefore; the contribution of SBC to the economy of Bangladesh is significant.

Insurance services

The services provided by Sadharan Bima Corporation include insuring public and private property risks, providing liability insurance coverage, reinsurance of the risk underwritten by private non-life insurers, providing Risk Improvement Services, Industrial Development through Equity participation and Human Resources Development for Insurance Industry. Moreover, Sadharan Bima Corporation itself makes retro-cession to different overseas re-insurers. Under a project backed by Asian Development Bank, SBC has been patronizing the introduction of Weather Index Based Insurance Solutions for the farmers. This product is expected to get the massive acceptance from the farmer community of the country.

Criticism

The company has faced censure from the Insurance Regulatory Agency for its failure in realisation of outstanding reinsurance premiums worth about Tk 4.0 billion (400 crore).[6]

Notes

  1. ↑ "Profile of Sadharan Bima Corporation". Sadharan Bima Corporation. Retrieved 2015-06-10.
  2. 1 2 Karim, Muhammad Rezaul (2012). "Sadharan Bima Corporation". In Islam, Sirajul; Jamal, Ahmed A. Banglapedia: National Encyclopedia of Bangladesh (Second ed.). Asiatic Society of Bangladesh.
  3. ↑ Staff Correspondent. "Hifazat chaos costs Tk 240 mln". bdnews24.com. bdnews24.com. Retrieved 23 June 2015.
  4. ↑ http://www.sbc.gov.bd/site/office_head/595bcfed-e2f1-444c-a284-b2b554616e88/%E0%A6%AC%E0%A6%BF%E0%A6%B8%E0%A7%8D%E0%A6%A4%E0%A6%BE%E0%A6%B0%E0%A6%BF%E0%A6%A4
  5. ↑ "Bangladesh Insurance Sector:The Ultimate Guide". The-Insured.com - Insurance Magazine. 2015-06-24.
  6. ↑ Karim, Rezaul (2015-06-13). "SBC warned as Tk 4.0b premiums lie in arrears". The Financial Express. International Publications Limited. Retrieved 2015-06-23.

References

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