No.
IDRA/GAD/1003/2011
Date:
18th August 2011
Sadharan
Bima Corporation and
All
Non-Life Insurance Companies
Bangladesh
Circular
No. Gen – 24/2011
It is
notified for information of all concerned that the Central Rating Committee in
its 143rd meeting
held
on 12 July, 2011 and an emergency meeting (Meeting-144) held on 10 August 2011
took a
number
of wide ranging decisions effective from 04-09-2011. IDRA firmly believe that
the decisions
taken
are indispensable for increased discipline and uniformity in market practice
which apart from
creating
a level playing field for all would substantially improve the financial
strength of the
companies
and their claim paying abilities. This is particularly true of the companies
who lack a good
financial
base and border on sickness. In addition, the decisions will ensure proper
receipt of vat,
stamp
duties and income tax on the part of the government.
The
decisions are summarized below: -
A.
All companies would strictly abide by the existing fire and marine tariff
rates, which will
include
10% tariff discount until further instruction.
Special
tariff rates presently in force for BGMEA/BKMEA and SMEs and similar other
organizations
will become invalid and be similar to the regular fire and marine rates
2
including
10% tariff discounts.
However,
any policies/cover notes issued on or before 03-09-2011 will remain valid until
their next renewal and expiry date except open covers which will be subject to
tariff rates including 10% discount effective form 04-09-2011.
B.
Documents issued on or before 03-09-2011 using special discounts given to
various clients by the CRC prior to 28-04-2002 including risks within all
Export Processing Zones (EPZs)
will
remain valid until their next renewal and or expiry date.
C.
For special rates for marine and fire clients companies may apply anew to the
CRC giving premium and claim statistics for immediate past 3 years and CRC
would consider granting special rates where the 3 years average annual premium
would amount to a minimum Tk.50 lakhs with average incurred claims not
exceeding 10% of the 3 years average premium. Additionally, special rates, per
above criteria, may be for a maximum reduction of 10% of Tariff rate including
10% Tariff discount, on the merit of each case.
D.
Where rates are obtained from overseas re-insurers for amounts above the
present country limits the committee may load such rates if deemed necessary.
The overseas reinsures quoting rates and terms or offering support must carry a
minimum rating of B+ prepared by “Standard and Poor’s” or any other rating
organizations of similar standard.
E. CRC will annually review premium and claim experience under
special rate cases and where incurred claims exceed 10% of the premium for the
year under review special rates will become automatically invalid and usual
rates must be reapplied in such cases. To this end companies will notify CRC of
any claim immediately after its occurrence giving brief particulars of the
claim and its estimate.
F.
Any application for rates and terms to CRC by the member companies must contain
all relevant information.
3
All
concerned are, therefore, advised to fully comply with the above mentioned
decisions of the Central Rating Committee. Any deviations will attract
penalties under the relevant sections of Insurance Act 2010 and Insurance
Development & Regulatory Authority Act 2010.
M.
SHEFAQUE AHMED, ACTUARY
CHAIRMAN
C.c.
to: (Not in order of seniority)
1.
Secretary, Bank and Financial Institutions Division, Ministry of Finance.
2.
Managing Director, Sadharan Bima Corporation.
3.
General Manager (Underwriting), SBC, Dhaka.
4.
General Manager (Re-insurance), SBC, Dhaka.
5.
Managing Director, Bangladesh General Insurance Co. Ltd.
6.
Managing Director, Peoples Insurance Co. Ltd.
7.
Managing Director, Green Delta Insurance Co. Ltd.
8.
Managing Director, Pragati Insurance Ltd.
9.
Managing Director, United Insurance Co. Ltd.
10.
Managing Director, Reliance Insurance Ltd.
11.
Managing Director, Bangladesh Co.-operative Ins. Co. Ltd.
12.
Managing Director, Janata Insurance Co. Ltd.
13.
Managing Director, Phoenix Insurance Co. Ltd.
14.
Managing Director, Karnaphuli Insurance Co. Ltd.
15.
Managing Director, Eastland Insurance Co. Ltd.
16.
Managing Director, Eastern Insurance Co. Ltd.
17.
Managing Director, Central Insurance Co. Ltd.
18.
Managing Director, Purabi General Insurance Co. Ltd.
19.
Managing Director, Rupali Insurance Co. Ltd.
20.
Managing Director, Federal Insurance Co. Ltd.
21.
Managing Director, City General Insurance Co. Ltd.
4
22.
Managing Director, Pioneer Insurance Co. Ltd.
23.
Managing Director, Provati Ins. Co. Ltd.
24.
Managing Director, Bangladesh National Ins. Co. Ltd.
25.
Managing Director, Prime Insurance Co. Ltd.
26.
Managing Direc
tor,
Northern General Ins. Co. Ltd.
27.
Managing Director, Mercantile Insurance Co. Ltd.
28.
Managing Director, Meghna Insurance Co. Ltd.
29.
Managing Director, Asia-Pacific General Insurance Co. Ltd.
30.
Managing Director, Crystal Insurance Co. Ltd.
31.
Managing Director, Express Insurance Co. Ltd.
32.
Managing Director, Nitol Insurance Co. Ltd.
33.
Managing Director, Sonar Bangla Insurance Co. Ltd.
34.
Managing Director, Agrani Insurance Co. Ltd.
35.
Managing Director, South Asia Insurance Co. Ltd.
36.
Managing Director, Global Insurance Ltd.
37.
Managing Director, Islami Commercial Insurance Co. Ltd.
38.
Managing Director, Republic Insurance Co. Ltd.
39.
Managing Director, Standard Insurance Co. Ltd.
40.
Managing Director, Islami Insurance Bangladesh Ltd.
41.
Managing Director, Dhaka Insurance Ltd.
42.
Managing Director, Paramount Insurance Co. Ltd.
43.
Managing Director, Desh General Insurance Co. Ltd.
44.
Managing Director, Continental Insurance Co. Ltd.
45.
Managing Director, Union Insurance Co. Ltd.
46.
Managing Director, Asia Insurance Ltd.
47. Managing Director,
Takaful Insurance Co. Ltd.
48. Chairman, Bangladesh
Insurance Association. Dhaka.
49. President , Bangladesh
Surveyor’s Association.
50.
P.A. to Chairman, Insurance Development & Regulatory Authority
No.
IDRA/GAD/1003/2011-
Date:
11th September 2011
Sadharan
Bima Corporation and
All
Non-Life Insurance Companies
Bangladesh
Circular
No. Gen – 25/2011
In the
overall interest of the insurance industry, to protect the interest of the
policyholder/shareholder
and in public interest and as a long term policy strategy IDRA has, decided to
place strict prohibition on the companies with effect from September 18 2011
from writing the business of the directors, their spouses, children, parents,
brothers, sisters and all other persons dependent on them and any other
persons/bodies in which directors have direct or indirect business
interest. However,
any policies/cover notes issued on or before 17-09-2011 will remain valid until
their next renewal and expiry date except open covers which will be subject to
this prohibition. IDRA firmly believe that the decisions taken are
indispensable for increased discipline and uniformity in market practice which
apart from creating a level playing field for all would substantially improve
the
financial strength of the companies and their claim paying abilities.
All
concerned are, therefore, advised and directed to fully comply with the above
mentioned decisions of the IDRA. Any deviations will attract severe
consequences under the relevant sections
of
Insurance Act 2010 and Insurance Development & Regulatory Authority Act
2010.
M.
SHEFAQUE AHMED, ACTUARY
CHAIRMAN
C.c.
to: (Not in order of seniority)
1.
Secretary, Bank and Financial Institutions Division, Ministry of Finance.
2.
Managing Director, Sadharan Bima Corporation.
3. General
Manager (Underwriting), SBC, Dhaka.
4. General
Manager (Re-insurance), SBC, Dhaka.
2
5.
Managing Director, Bangladesh General Insurance Co. Ltd.
6.
Managing Director, Peoples Insurance Co. Ltd.
7.
Managing Director, Green Delta Insurance Co. Ltd.
8.
Managing Director, Pragati Insurance Ltd.
9.
Managing Director, United Insurance Co. Ltd.
10.
Managing Director, Reliance Insurance Ltd.
11.
Managing Director, Bangladesh Co.-operative Ins. Co. Ltd.
12.
Managing Director, Janata Insurance Co. Ltd.
13.
Managing Director, Phoenix Insurance Co. Ltd.
14.
Managing Director, Karnaphuli Insurance Co. Ltd.
15.
Managing Director, Eastland Insurance Co. Ltd.
16.
Managing Director, Eastern Insurance Co. Ltd.
17.
Managing Director, Central Insurance Co. Ltd.
18.
Managing Director, Purabi General Insurance Co. Ltd.
19.
Managing Director, Rupali Insurance Co. Ltd.
20.
Managing Director, Federal Insurance Co. Ltd.
21.
Managing Director, City General Insurance Co. Ltd.
22.
Managing Director, Pioneer Insurance Co. Ltd.
23.
Managing Director, Provati Ins. Co. Ltd.
24.
Managing Director, Bangladesh National Ins. Co. Ltd.
25.
Managing Director, Prime Insurance Co. Ltd.
26.
Managing Director, Northern General Ins. Co. Ltd.
27.
Managing Director, Mercantile Insurance Co. Ltd.
28.
Managing Director, Meghna Insurance Co. Ltd.
29.
Managing Director, Asia-Pacific General Insurance Co. Ltd.
30.
Managing Director, Crystal Insurance Co. Ltd.
31.
Managing Director, Express Insurance Co. Ltd.
32.
Managing Director, Nitol Insurance Co. Ltd.
3
33. Managing
Director, Sonar Bangla Insurance Co. Ltd.
34.
Managing Director, Agrani Insurance Co. Ltd.
35.
Managing Director, South Asia Insurance Co. Ltd.
36.
Managing Director, Global Insurance Ltd.
37.
Managing Director, Islami Commercial Insurance Co. Ltd.
38.
Managing Director, Republic Insurance Co. Ltd.
39.
Managing Director, Standard Insurance Co. Ltd.
40.
Managing Director, Islami Insurance Bangladesh Ltd.
41.
Managing Director, Dhaka Insurance Ltd.
42.
Managing Director, Paramount Insurance Co. Ltd.
43. Managing
Director, Desh General Insurance Co. Ltd.
44.
Managing Director, Continental Insurance Co. Ltd.
45.
Managing Director, Union Insurance Co. Ltd.
46.
Managing Director, Asia Insurance Ltd.
47.
Managing Director, Takaful Insurance Co. Ltd.
48. Chairman, Bangladesh
Insurance Association. Dhaka.
49.
President, Bangladesh Surveyor’s Association.
50. P.A. to Chairman, Insurance
Development & Regulatory Authority
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