Jiban Bima life fund hits Tk24,739cr in 2022

The state-owned Jiban Bima Corporation’s (JBC) life fund has been increasing since 2020, with the amount (unaudited) standing at Tk 24,739 crore at the end of last year.

According to JBC, its life fund was Tk 23,173 crore in 2021 and Tk 21,727 crore in 2020.

Analysing the financial report, it was found that JBC’s premium income also increased. At the end of 2022, the company’s gross premium income was Tk 761 crore, up from Tk 671 crore in the previous year.

JBC’s former managing director Md Zahurul Haque told The Business Post they do not keep insurance claims unpaid like many other companies.

“If a client becomes eligible for a life insurance claim, we pay them on time. We are always careful about protecting our clients’ rights. In return, they put their trust in us. This is the key reason why our business is growing,” he explained.

The Insurance Development and Regulatory Authority (IDRA) data shows five companies are dominating the life insurance sector with more than 66 per cent of the market share. JBC is one of them.

The IDRA launched the pilot scheme of Bangabandhu Shikkha Bima at JBC in 2021 on the occasion of Bangabandhu’s birth centenary. The scheme got a large response from parents.

The insurance regulator said around 50,000 students had bought policies during the pilot in 64 districts in a year.

JBC is also a top performer in claim settlement. Though settling claims is key to client satisfaction, insurers had neglected this for a long time.

In recent years, however, they managed to increase the rate of settlement.

According to the IDRA data, at the end of 2021, insurance companies paid Tk 7,724 crore in claims while JBC’s amount was Tk 394.42 crore.

“Our agreement with clients is to pay their claims on time. We have been serving their interests since the beginning and settling claims regularly. In future, settlements will be even faster,” Zahurul said.

JBC was established in 1973. At present, it has 34 insurance schemes in operation and 17 commercial buildings across the country.