The Insurance Development and Regulatory Authority (IDRA), the country’s insurance regulatory body, has finalised the initial contract for the construction of a 20-storey building, funded entirely by IDRA itself.
A memorandum of understanding was signed between the IDRA and the Jiban Bima Corporation (JBC) on Thursday, outlining the collaborative effort for the construction of a multi-storied building.
The agreement was signed by Jiban Bima Corporation managing director, Mizanul Haque Chowdhury, and IDRA Chairman, Mohammad Zainul Bari.
This impressive 20-storey building will be erected on 8.15 katha land owned by the Jiban Bima Corporation in Motijheel. As per the contract, the construction is expected to be completed within the next four years.
Initially, it was proposed to name the building as Bangabandhu Bima Bhaban but it was later renamed Bima Bhaban.
Since July 6, 2014, IDRA has been functioning from its current location in Sadharan Bima Corporation Tower at 37/A Dilkusha. However, it will move its operations to the new building at 80 Motijheel once the construction is completed.
The agreement outlines that IDRA will bear the entire cost of constructing the building, despite the land belonging to Jiban Bima Corporation. The division of space within the building is stipulated, with the 3rd to 11th floors allocated for use by Jiban Bima Corporation, and the 12th to 20th floors reserved for IDRA’s utilisation.
Though the specific cost of the building construction has not been mentioned in the agreement, IDRA sources have indicated that this will be discussed in a subsequent meeting. It is also possible that the government’s assistance may be sought to fund the construction.
While IDRA is funding the construction, the ownership of the land will be retained by the Jiban Bima Corporation. Both parties will share the floor space equally, and each will pay rent for the allotted floor they occupy. The agreement explicitly prohibits selling, mortgaging, or transferring any part of the property in a way that would change ownership.
In the event of construction delays caused by natural calamities, floods, war, a prolonged blockade, or any other uncontrollable circumstances beyond IDRA’s control, the timeline for completion can be extended with the mutual consent of both parties.
Currently, the country’s insurance industry is served by 79 insurance companies, with 35 being life insurance companies and 46 being non-life insurance companies.
Among these, one life insurance company is government-owned, while 34 are privately owned.
In contrast, one non-life insurance company is government-owned, and 45 are privately owned.
