Monday, April 29, 2024
A representative will visit the customer to arrange insurance policy. He will inform the customer about various benefits of the insurance. In particular, he will offer various incentives for profit to sell the policy to the customer on behalf of the insurance company for which he acts as an agent.
Even though the customer trusts the agent and buys the policy and deposits the policy money with the company through the agent, it is found that the agent is no longer with the said company. He has joined another company. Then the customer fails to deposit his policy, resulting in the policy being terminated at some points. So, customers often complain that they do not get their deposited money back.
It also happens that the customer is depositing the policy money through the agent, but the agent is not depositing the money to the company. Even if the agent takes money from the people in the name of insurance premium, the policy buyer at the end of the term finds that most of his premium money has not been deposited.
Then that agent is also no longer available and the company says that the agent is not employed by them or he is not a company person.
Bancassurance has been launched to end the suffering of insurance customers. Now the bank acts as the insurance corporate agent.
Insurance Development and Regulatory Authority (IDRA) Chairman Mohammad Zainul Bari told The Business Post that those who are opposing insurance personalities on Bancassurance are wrong in their thinking.
“A bank is a disciplined financial institution. People feel comfortable keeping their money in banks. Such a registered financial institution will act as an agent for the insurance company and sell the policy, which will also increase the confidence of the customers.”
He further said that one interprets Bancassurance, the bank is now the smart agent of the insurer. Companies can contact with scheduled banks and sell their policies through those banks only. Not only one, but more than one banks can sell their own policies to customers by making such an agreement, he added.
Zainul Bari said, “Bancassurance is one of the things we talk about for the discipline in the insurance sector.”
According to the policy, Bancassurance must be approved by the central bank.
At the same time, Bangladesh Bank has an obligation to assist customers in getting insurance claims after selling insurance products.
In this regard, the bank shall provide necessary assistance and advice to the insured person and his nominated nominee in the final settlement of the claims by following appropriate evidence and procedures.
On December 12 in 2023, Bangladesh Bank approved 'Bancassurance' to allow banks to become corporate agents of all types of insurance, including general and life insurance.
Through this guideline, the bank can engage in the business of marketing and selling insurance products as a 'corporate agent' of insurance companies.
Among other conditions in the policy, after the approval of Bangladesh Bank, commercial banks can enter into agreements with the insurance development and regulatory authority in this regard.
To start Bancassurance, a bank has to be profitable for three consecutive years after getting permission to establish a separate Bancassurance unit or wing.
In the policy, the bank shall expressly declare that it will not accept any risk related to the insurer's insurance or act as an insurer.
Bangladesh Bank has specified the conditions for the appointment of officers, including the Bank Assurance Chief Officer. Annual and quarterly financial reports related to Bancassurance should be published.
According to the Insurance Regulatory and Development Authority (IDRA), there are currently 81 insurance companies in the country. Among them, 46 are general insurance and 35 life insurance companies. Of these, 58 are listed on the stock market.
According to Bangladesh Bank, there are a total of 11,239 bank branches in the country. Among them, there are 5,287 branches in rural areas.
