INURANCE CORPORATION ACT, 2019

Insurance Corporation Act, 20

(Act No. 8 of 27)

[May 9, 25]

Laws made to repeal the Insurance Corporations Act, 1973, amending it in a timely manner.

Since the Insurance Corporations Act, 1973, it is expedient and necessary to redesign it in a timely manner;

Therefore, the law is hereby made as follows: –

Short title and introduction

  1. (3) This Act shall be called Insurance Corporation Act, 20.

(2) It shall be effective immediately.

Definition

  1. (3) In this Act, unless there is anything contrary to the subject or context, –

(a) “financial statement” means the interim or final statement, income statement or profit and loss calculation, equity change statement, cash flow statement, notes and other statements. And explanatory statements on them;

(B) “corporation” means the life insurance corporation and general insurance corporation;

(C) “authority” means the insurance development and control authority established under the Insurance Development and Regulation Authority Act, 25 (Act No. 22 of 27);

(D) “Chairman” means the Chairman of the Board;

(E) “director” means the director of the board;

(F) “regulation” means the regulations made under this Act;

(G) “Managing Director” means the Managing Director of Life Insurance and General Insurance Corporation;

(H) “person” means an individual, an organization, company, partnership business, firm or any other entity with a natural personality;

(I) “board” means the board of directors of a corporation established under section 3;

(J) “Rule” means the rules made under this Act; And

(k) “insurer” means the insurer as defined in clause (28) of section 2 of the Insurance Act, 24 (Act No. 2 of 24).

(2) All words and expressions not defined in this Act, in the sense of the words and expressions in the Insurance Act, 23 (Act 6 of 27) and the Insurance Development and Regulation Authority Act, 23 (Act No. 22 of 28). Be used in the sense of being used.

Applicability of other laws

  1. In the case of a corporation, some of the provisions of the following law or law shall, as far as possible, apply, namely: –

(a) Insurance Development and Regulation Authority Act, 20; And

(b) to take action in accordance with the provisions of section 4 of the Insurance Act, section 2, section 1-5, section 20-24, section 12, sub-section (1) of section 6, and in that case There shall be ” Part (b) and (c) of sub-section (1) of section 3, clause (b) of sub-section (1) of section 4, section 12-5, section 1-5, section Subject to sub-section (2) of section 12, section 1, section 8-12 and other sections other than section 122.

Establishment of a corporation

  1. (3) For the purpose of this Act, a life insurance corporation and general insurance corporation established under the Insurance Corporations Act, 1973 (Act No. VI of 1973) shall be maintained as if both of those corporations were established under this Act.

(2) The corporation shall be a statutory body and shall have a permanent continuum and a common seal and shall have the power to acquire, hold and transfer the immovable or immovable property of both immovable or immovable property subject to this law or rules made thereunder. Can be filed and a lawsuit can be filed against him.

Capital

  1. (3) The authorized capital of Life Insurance Corporation shall be 1 (three hundred) crores and the paid up capital shall be Tk. Thirty crores.

(2) The authorized capital of the general insurance corporation shall be 1 (one thousand) crores and the paid up capital shall be 1 (five hundred) crores.

(3) Notwithstanding anything contained in sub-clauses (1) and (2), the Government may, by notification in the Official Gazette, determine the source of the alteration or source of the capital specified in sub-clauses (1) and (2). .

The office of the corporation

  1. The headquarters of the corporation shall be in Dhaka, and the corporation may, with the prior approval of the Government, establish one or more branch offices within or outside Bangladesh.

Powers and Functions of the Corporation

  1. The powers and functions of the corporation shall be as follows: –

(a) In Bangladesh and outside Bangladesh –

(i) To conduct all life insurance and related reinsurance business as per the Insurance Act, 20, by Life Insurance Corporation; And

(ii) conducting all types of non-life insurance and related reinsurance business, as defined by the General Insurance Corporation, Insurance Act, 20;

(B) to acquire, hold and transfer any immovable property with the approval of the Authority for the purpose of conducting business;

(C) transfer the whole or any part of the insurance business operating outside Bangladesh to any person, with the prior approval of the Government, if it is deemed in the interest of the Corporation; And

(D) With the approval of the Authority, to conduct any other business related to the insurance business and to the corporation which is profitable for the Corporation and which the Corporation is able to manage properly.

General instructions of the corporation

  1. (3) Every board shall perform commercial considerations, giving due importance to the public interest in the performance of its functions, formulate and implement the business strategies and plans of the corporation and for this purpose shall follow the directions given by the Government from time to time.

(2) All functions and all powers applicable by the Corporation shall be completed and implemented by the Corporation, and general instructions and general administration of each corporation’s general affairs and business shall be vested on the Board of Directors.

Board of Directors

  1. (3) The board of directors of the corporation shall be composed of the following directors, namely: –

(a) one (1) chairman nominated by the government;

(B) two (two) employees of the rank of Additional Joint Secretary nominated by the Department of Financial Institutions;

(C) one (1) employee of the rank of Additional Joint Secretary nominated by the Department of Finance;

(D) the rank of additional Joint Secretary nominated by the Ministry of Commerce (1) one employee;

(E) a professor in the concerned department of Dhaka University nominated by the Government;

(F) the Director, Bangladesh Insurance Academy, ex officio;

(G) two (two) insurers experienced in conducting insurance business designated by the Government;

(H) Experienced in the accounting and audit nominated by the Government. (A) Professional Accountant; And

(i) the Managing Director, ex officio.

Explanation: For the purpose of clause (h) of sub-section (1), “professional accountant” means a professional accountant defined and registered in clause (1) of section 2 of the Financial Reporting Act, 23 (Act No. 2 of 27). .

(Ii) sub-section (1) of clause (a), (e), (g) and (h) referred to directors of three (3) year term of his office subject to hold and not more than 1 (one) term may be re-:

if Provided that the Government may at any time exempt the Chairman or any Director without showing any reason.

 

(3) The Chairman or Director may resign in his signed letter for the purpose of the Government:

provided that such resignation shall not be effective unless accepted or approved by the Government.

(3) If the Chairman becomes vacant or if the Chairman is unable to perform his duties due to absence, illness or any other reason, the Director appointed by the Government shall serve as Chairman until the newly appointed Chairman takes office or the Chairman is able to resume his duties. .

Meeting of the Board

  1. (3) The meetings of the Board shall be held at the date, time and place set by the Chairman.

(2) Subject to the provisions of this section, the Board may determine the procedure for its meeting.

(3) A meeting of the Board shall be convened by the Managing Director under the direction of the Chairman.

(3) At least 5 (five) directors will be required for the quorum at the meeting.

(3) The Chairman shall preside over all meetings of the Board and a Director elected by the Directors present in his absence shall preside over the meeting.

(3) Every board of directors shall have one vote in the meeting of the board and a decision shall be taken by the meeting of the majority of the directors present, but in the case of equality of votes, the second or decisive vote of the chairperson shall be:

Provided that, the Director may not vote on any matter, whether directly or indirectly, the interests of a director are involved.

(4) Only a vacancy in the post of a director or a flaw in the formation of the board shall not invalidate any function or proceeding of the board or raise any question or objection to it.

Qualifications and Disqualifications of Directors

  1. No person shall be a director or a director, if-

(a) he is not a citizen of Bangladesh or accepts citizenship of another country or is loyal to another state;

(B) he was convicted of a criminal offense and sentenced by a court;

(C) he is punished by a competent court for any violation of any law, rule or regulation of any regulatory body concerned with the financial sector;

(D) he has been declared bankrupt by a competent court or has not been relieved of his obligation to declare bankruptcy;

(E) he was declared unconstitutional by a competent court;

(F) has any adverse observation or comment on the judgment of a court in a civil or criminal case;

(G) He is absent from the Government in the case of the Chairman and in the case of other directors, at the next three (three) meetings of the Board without taking leave from the Chairman;

 

(H) he becomes a salaried employee of the corporation, excluding the field of management;

(I) Has no additional five (five) years of administrative management, business or professional experience;

(J) he is affiliated with any company or organization whose registration or license has been revoked or the company has been terminated;

(K) he fails or fails to repay the loan taken from a bank or financial institution in the name of his own or interest-bearing institution; Or

(l) he becomes a director of another insurer, a bank company or a financial institution registered for the same class of insurance business.

Board canceled

  1. If at any time, the Authority has reason to believe that a corporation conducts its insurance business in such a way that the policy of the insurance policy may not diminish the interest of the customers, or the corporation has not been able to maintain the required solvency margin, then the authority shall give the corporation the opportunity to present its statement. Therefore, the recommendation of the government to cancel its board May rite.

managing director

  1. (4) The managing director of the corporation shall be appointed by the government and his terms of service shall be fixed by the government.

(2) The managing director shall be the chief executive of the corporation, and he shall –

(a) perform the duties and functions assigned by the board and be responsible for implementing the decisions of the board; And

(b) from time to time, exercise all the powers conferred upon it, perform the duties assigned to it and perform the functions.

(4) The managing director shall relinquish the position of a manager in a corporation, company or business other than his own corporation.

(4) If the post of the managing director becomes vacant or if the management director is unable to perform his duties due to absence, illness or any other reason, the newly appointed managing director is not allowed in that vacant post or until the managing director is able to fulfill his duty again. An employee will serve as the Managing Director.

Investment

  1. Each corporation may invest its funds, subject to the provisions of Insurance Act, 20, in the amount, field and manner prescribed by the Board.

Short fund structure, surplus, etc.

  1. (3) After the settlement of bad debts and doubtful debts, depreciation of assets and any other matters specified by the Board, the general insurance corporation may constitute a reserve fund from its net annual profit, and the surplus money will be paid to the government.

(2) If there is any surplus after the valuation of the financial condition of the business and the liabilities above it by the inquiry by the life insurance corporation under section 25, the distribution of life insurance policy of the corporation to the customers, with the approval of the board, of the surplus money (fifty-five percent). Shall be or should be reserved for them and such distribution or preservation After that, the rest will be paid to the government.

(4) Without the prior approval of the Government, the surplus of more than 5% (fifty-five percent) mentioned in sub-section (2) cannot be distributed among the customers of the insurance policy.

Insurance on government property

  1. (3) All non-life insurance business of any type of non-life insurance business, public insurance or any related risk or liability related to public property, underwrites 5% (one hundred percent) and retains 5% (fifty percent) of its own balance. % (Fifty percent) of all private non-life insurance companies will be evenly distributed.

Explanation. For the purposes of this section, “Government property” means –

(a) any immovable or immovable property which is under the direct control or protection of the Government and whose legal duty is to maintain it;

(B) property vested with the government or local authority;

(C) any company, farm, institution, organization, enterprise or other establishment under the control or control of the government or local authority, or where the joint control and management of the government or the local and local authority or the government and any company or government or local There is no such financial accumulation or interest of the authority or government guarantee in financing a company There;

(D) any project undertaken by the government’s guaranteed foreign loan or financial aid; Or

(e) any other property designated by the Government.

(2) The Government may, by notification in the Official Gazette, re-determine the limits mentioned in sub-section (1), for the purpose of fair competition in the insurance industry and for the management of the corporation on a commercial basis.

(4) Any insurance received or issued in violation of the provisions of sub-section (1) shall be treated as void.

Reinsurance

  1. (3) Every insured registered and registered in insurance business in Bangladesh shall, in general terms and conditions, re-insure the additional reinsurance portion of its own capacity.

(Ii) non-life insurance business, punahbimayogya parts of the 50% (fifty percent), General Insurance Corporation to be made and the remaining 50% (fifty percent) of the Corporation or the inside or outside another insurer to be:

if Provided that the Government may, by notification in the Official Gazette, re-set such limits, if necessary.

(4) In the life insurance business, the whole or any part of the reinsurable portion may be made to any insurer located in or outside Bangladesh:

Provided, however, that the Government may, by notification in the official Gazette, impose an obligation to reinsure the Life Insurance Corporation, subject to such limits as may be determined from time to time.

Impose administrative penalties

  1. If an insurer violates the provisions of Article 5, the Authority may impose an additional penalty of Taka 5 (five) lakh and an additional Taka 1 (lakh) lakh on the insured.

Corporation termination

  1. (4) No corporation may be terminated without the order and the procedure prescribed by the Government.

(2) The provisions relating to the termination described in the Companies Act, 1 or any other law or regulation thereof, shall not apply to the Corporation.

Ability to borrow and provide grants

  1. (3) The Corporation may, on the prior approval of the Government, borrow from a commercial bank or financial institution, without securities or securities, for the performance of its functions under this Act, and shall be responsible for repaying that debt.

(2) The Corporation may, with the prior approval of the Government, make grants to any other organization.

The committee

  1. The Board may, for the time being, perform its functions, constitute one or more other committees, including the Audit Committee and the Executive Committee, to determine its tenure and tenure.

Appointment of employees of the corporation

  1. (4) The Corporation may appoint the required number of employees, subject to the organizational structure approved by the Government, to carry out its functions properly.

(2) The terms and conditions of employment of employees of the Corporation shall be determined by the regulations.

Handing over power

  1. Under this Act, the Government may delegate any of its powers to the authorities, if required and subject to the prescribed hundreds.

Actuarial Evaluation and Reporting

  1. (3) Every once in two (two) years, Life Insurance Corporation shall be assessed by inquiry by an Actuary on the financial condition of its business and the liabilities above it, and the report made thereunder shall be submitted to the authorities and the Government.

(2) The Government may, by notification in the Official Gazette, change the timeframe specified in sub-section (1).

Budget

  1. The Corporation shall submit to the Government the annual budget statement of the next financial year, within the period prescribed by the Government each year.

Conduct Accounting

  1. The Corporation may open and operate its accounts with any inquiry bank.

Explanation.- To fulfill the purpose of this section, the word “Scheduled Bank” shall mean “Scheduled Bank” as defined in Article 2 (j) of Bangladesh Bank Order, 1972 (President’s Order No. 127 of 1972).

Financial statements, etc.

  1. (3) The Corporation shall, from time to time, submit financial statements and reports to the Authority and the Government, as directed by the Government.

(2) Within six (six) months after the corporation expires every financial year, unless the government extends it for a reasonable reason, the audit and accounts of the audited accounts, statements and summaries described in section 28, along with a report on the overall performance of the corporation performed in that fiscal year, and insurance development and The controlling authority shall submit the same and publish it on its website.

Accounting and Auditing

  1. (3) Subject to compliance with the provisions of Insurance Act, 20, the Corporation shall maintain proper account of it, and thereafter prepare a financial statement for the year, and in that statement the profit and loss account, revenue account and all other statements and summaries shall be made in the insurance business of that category. Ancillary matters should be mentioned.

(2) Notwithstanding any provision of the Comptroller and Auditor General (Additional Functions) Act, 1974 (Act No. XXIV of 1974), the corporation’s account shall be audited by another two (two) auditors who are Bangladesh Chartered Accountants Order, 1973. (Chartered Accountant) as defined in Article 2 (1) (b) of the President (Order No. 2 of 1973) and ‘Professional Accountant’ as explained in Section 4.

(3) The “Chartered Accountant” and “Professional Accountant” referred to in sub-section (2) shall be appointed on such terms as may be prescribed by the Government.

(3) Every auditor appointed under sub-section (2) shall be provided with a width of the corporation’s annual financial statement and other calculations, and the auditors shall verify and verify it with all relevant accounts and vouchers.

(3) For the purpose of auditing a corporation, all the records, documents, annual balance seats, cash, deposits or deposits of cash or bank, of the Auditor-General, under the General Auditor or any person authorized by him or sub-section (2). Provide a list of all exits maintained by the corporation in relation to any other property or subject thereof. EBay and the auditors may examine these issues and the associated Chairman or any employee of the Corporation.

(3) The auditors shall submit a report to the Government on the annual financial statement and account and the report shall contain the following matters, namely: –

(a) all the details required in the financial statement;

(B) an accurate reflection of the actual situation of the affairs of the corporation;

(C) if they seek any explanation or information from the Board; And

(d) satisfactory explanation provided under clause (c).

(3) The auditors responsible under this section shall recommend the adequacy of the procedures followed for internal audit, control and risk management work and recommend reforms in the required field.

(3) The Government may, at any time, direct the auditors to file a report on the adequacy of the steps taken by the corporation or the manner of monitoring of the affairs of the corporation, in order to protect the interests of the creditors of the government and the corporation, and to extend the scope of the audit to any other person or auditor. Any other method by Ite niriksanerao may direct.

(4) For the purposes of this section, financial reporting law, preparation of audit report or any such performance shall be followed in accordance with the provisions of the Financial Reporting Act, 20 (Act No. 2 of 27).

Eliminate the difficulty

  1. In the event of any difficulty or difficulty in implementing the provisions of this Act, the Government may, by notification in the Official Gazette, provide any necessary explanation for eliminating that difficulty.

Contract

  1. The Corporation may, with the prior approval of the Government, execute the contract with any domestic and foreign company.

Ability to make rules

  1. The Government may, by notification in the official Gazette, make rules for the purposes of this Act.

Ability to make regulations

  1. For the purpose of this Act, the Corporation may, with the prior approval of the Government, by notification in the Official Gazette, make such regulations that are not inconsistent with this Act or the rules made thereunder.

Cancellation and custody

  1. (3) The Insurance Corporations Act, 1973 (Act No. VI of 1973), hereinafter referred to as the Act, was hereby repealed.

(2) Notwithstanding the repeal under sub-section (1), under the repealed Act –

(a) any action taken, any action taken or any proceeding taken shall be deemed to have been done, taken or initiated under this Act;

(B) any suit, any action taken or any proceedings filed by or against an established corporation shall be settled as if it were filed or adopted or initiated under this Act;

(C) any contract, document or instrument performed by an established corporation shall continue to be non-incompatible with any provision of this Act as if it were performed under this Act;

(D) all types of loans, liabilities and legal obligations of the established corporation shall be deemed to be the debt, liability and legal obligation of the corporation on the same terms as the provisions of this Act;

(E) whatever the terms of a contract or service may be, the conditions under which the chairman, managing director or employees of the corporation were employed in the service before the commencement of this Act are employed in the corporation’s service on that same condition, unless changed according to the provisions of this Act and, , Will continue; And

(F) All accounts, investments, liabilities, including all business, assets, assets, rights, powers and benefits, fees, immovable and immovable property, authorized capital, reserve funds, cash, surplus, bank deposits and securities of the established corporation. , Deposit and ownership, possession, power or control of the assets existing within or outside Bangladesh and all other rights and interests arising out of it. , And all the associated account books, registers, documents and all other rekardapatrasaha With the introduction of this Act transferred to the Corporation or, as the case may be transferred and the Corporation shall have the rights.

(3) Notwithstanding the repeal under sub-section (1), any rules or regulations made under the repealed Act, any notification issued, any order issued, directives, approvals, recommendations, all plans or activities made and all approved accounting statements and annuals. Unless the report is in force immediately before the cancellation of this report, it is subject to non-inconsistency with any provision of this law, issued under a similar provision of this law Rta, shall be deemed given and approved under this Act shall be in force until repealed or amended.

Publish translated text in English

  1. (4) After the introduction of this Act, the Government shall, by notification in the Official Gazette, publish a text translated into English of this Act, which shall be the Authentic English Text of this Act.

(2) In the case of a dispute between Bengali and English text, the Bengali text shall prevail.

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