Introduce Bangabandhu Shikkha Bima

Insurance Development and Regulatory Authority (IDRA) has asked all life insurance companies in the country to launch the “Bangabandhu Shikkha Bima” to help students.

In this regard, it recently sent a circular, signed by its Chairman Mohammad Jainul Bari, to the chief executive officers (CEO) of all insurance companies to introduce the Bangabandhu Shikkha Bima (or Bangabandhu Education Insurance).

The regulatory body initially launched the insurance scheme, with Jiban Bima Corporation (JBC) as the insurer, under a pilot phase in 2021 on the occasion of Bangabandhu Sheikh Mujibur Rahman’s birth centenary.

The scheme has received a huge positive response from parents since it was launched as its helping them ensure a safe future for their children.

According to IDRA, around 50,000 students have opened the policy during the piloting phase in 64 districts in a year.

JBC officials said only seven insurance claims have been made during that period, which means the policy is profitable from the business point of view.

Parents can buy the policy at an annual premium of Tk 85 with any insurance company for their child aged between three and 17. If the policyholder dies or suffers permanent and total disability from any accident, the child will receive Tk 500 every month for up to 17 years.

The IDRA circular said the Shikkha Bima have to be introduced on a priority basis to keep the educational lives of students going and prevent them from dropping out.

Md Shah Alam, a director at IDRA, told The Business Post that they are working to boost the number of students under the scheme.

The insurance companies can offer facilities under Shikkha Bima to cover the children’s educational expenses, he said and stressed that every citizen should get an education insurance policy for their children.

“We hope the insurance scheme will become more popular among the parents soon,” he added.

IDRA said this policy will help boost the penetration of the life insurance sector while young students from poor families will be able to continue their studies.

The circular said the insurance companies must send the Shikkha Bima scheme’s sales information to IDRA within the first week of every month.

At present, 14 life insurance companies offer the Shikkha Bima under a scheme called Educational Insurance Service.

These companies are MetLife, Best Life, Chartered Life, Fareast Islami Life Insurance, Meghna Life, Mercantile Islami Life Insurance, National Life Insurance, Popular Life Insurance, Pragati Life Insurance, Protective Islami Life Insurance, Sandhani Life, Sonali Life, Zenith Islami Life, and Sunflower Life Insurance.

Several other life insurance companies also offer education insurance under a scheme named Child Protection Plans.

Bangladesh currently has 81 life insurance and non-life insurance companies operating under the Insurance Act 2010, according to IDRA.