marine cargo insurance in bangladesh

8/18/2019 Marine Cargo Insurance in Bangladesh

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Marine & Cargo Insurance-

INSURANCE BACKGROUND OF BANGLADESH

Insurance is not a new idea or proposition to the people of Bangladesh. About half a

century back, during the British regime in the then India, some insurance

companies started insurance business, particularly life, in this part of the world.ince !"#$ until !"$! insurance business gained momentum in this part of what

was then known as %ast akistan. 'here were about #" companies transacting both

life and general insurance business. 'hese companies were operating under a free

competiti(e economy.

After the emergence of the eople)s *epublic of Bangladesh in !"$!, the

go(ernment, in order to make a(ailable the fruit of liberation to the general mass,

nationali+ed the insurance industry along with the banks in !"$ by residential

rder o. "/. By (irtue of this order, sa(e and accept postal life insurance and

foreign life insurance companies 0other than the akistani companies1, all

companies and organi+ation transacting all types of insurance business in

Bangladesh came under this nationali+ation order. At the same time, 2(e insurance

corporations were initially established by the 3o(ernment, (i+, 4atiya Bima

Corporation 0ational Insurance Corporation1, 'eesta Bima Corporation 0'eesta

Insurance Corporation1, 5arnaphuli Bima Corporation 05arnaphuli Insurance

Corporation1, *upsa 4iban Bima Corporation 0*upsa 6ife Insurance Corporation1,

urma 4iban Bima Corporation 0urma 6ife Insurance Corporation1.

n !#th May, !"$7 the Insurance Corporation Act 8I, !"$7 was enacted under

which the pre(ious 2(e corporations were abolished and the following two

corporations emerged9

!1 adharan Bima Corporation for 3eneral Insurance and,

1 4iban Bima Corporation for 6ife Insurance in Bangladesh.

CURRENT INSURANCE MARKET ENVIRONMENT IN BANGLADESH

After the emergence of the eople)s *epublic of Bangladesh in !"$!, the

go(ernment nationali+ed the insurance industry along with the banks in !"$ by

residential rder o. "/. By (irtue of this order, all companies and organi+ation

transacting all types of insurance business in Bangladesh came under this

nationali+ation order. 'his was followed by creation of 2(e insurance companies inthe life and non-life sector. :urther changes were brought on !#th May, !"$7.

'hrough the enactment of Insurance Corporation Act 8I, !"$7 which led to creation

of two corporations namely adharan Bima Corporation for general insurance and,

4iban Bima Corporation for life insurance in Bangladesh. In other words adharan

Bima Corporation0BC1 emerged on !#th May, !"$7 under the Insurance

Corporation Act 0Act o. 8I1 of !"$7 as the only state owned organi+ation to deal

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with all classes of general insurance & re-insurance business emanating in

Bangladesh.

'hereafter BC was acting as the sole insurer of general Insurance till !";#.

Bangladesh 3o(ernment allowed the pri(ate sector to conduct business in all areas

of insurance for the 2rst time in !";#. 'he pri(ate sector a(ailed the opportunitypromptly and came forward to establish pri(ate insurance companies through

promulgation of the Insurance Corporations 0Amendment1 rdinance 06I of !";#1

!";#.

'he Insurance Market in Bangladesh now consists of two state-owned corporations,

forty three and se(enteen pri(ate sector general & life insurance companies

respecti(ely, a total of ported. uch goods or merchandise may be lostdamaged or destroyed by perils of the seas whilst in course of transit and therefore,

the owner of such goods can always insure against the possible losses.

:or the purpose of Marine Insurance goodscargo carried by the following three

ways9


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GOODS CARRIED B RAIL3LORR3TRUCK

3oods or cargo co(ered by abo(e transports may be co(ered as under

!. By *ail6orry'ruck *isk only

. By *ail6orry'ruck All *isks.

GOODS CARRIED B AIR

3oods or cargoes con(eyed by abo(e transport may be co(ered as under 9

!. Air *isk nly

. Air All *isks

Re*ar"s:

remium being determined on a rating subect to age and class of construction of

Eull.

*isks co(ered under following categories 9-

c1 I'C 0All risk olicy1

d1 '6 0'otal 6oss only1

According to the law the insured is reuired to pay the tamp duty of this policy
http://www.eicra.com/http://www.eicra.com/

marine cargo insurance in bangladesh

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