Insurance companies are upset for the political violence

Insurance companies in BangladeshInsurance companies are upset about the violent political situation of the country. The insurance industry is facing an identity crisis for continuing violence after the business downturn of 2013 and 2014. Most companies are struggling to manage the cost of the office maintenance. Some companies are bearing the cost of their reserve fund, but they can’t give the salary of the officers-workers. On the other hand, there is 15 crore taka hampering daily in the insurance industry for the continue strike and blockade of 20 party alliance. In this calculation in 39 days with the strike of 1st of January 585 crore taka has been damaged. Of these, from 15th January to 22nd January 16 company had damage of 40 crore 26 lakh 18 thousand and 885 policies. Which is three crore 42 lakh 57 thousand and 973 taka in amount informed Insurance Owners Association Bangladesh Insurance Association (BIA)? In this regard Managing Director of Central Insurance Md. Jahid Anwar said to Manab Kontho that, now there is a ‘disaster’ in the insurance industry.

The demand for the insurance is increasing constantly for the strike-blockade, but there is no business. They did business of 20 lakh taka monthly’s earlier, but last month they did only business of 7 lakh taka. Companies are unable to bear the cost of the office. The insurance industry will be ruined if there is no quick solution to the political problem. For this, the shareholders of the stock market would not be able to get good profit at the end of the year.

Member of Insurance Development and Control Authority (IDRA) Sultan-Ul-Abedin Mollah said to Manab Kontha about the compensation of Insurance company that, both life and asset of people damaged in the violence. Insurance companies have to recover the both damages. So the most victims of the strike-blockade are insurance industry. If the situation of the country continues, the insurance industry of the country will be stopped soon.

Vice president of BIA Ahsanul Islam said common people are already reluctant to the insurance companies. Now for this continues strike and blockade there is no business, to maintain the regular cost companies have to take money from the reserve fund. The damage on the industry is increasing day by day. Now we need political stability in the country to save the insurance business.

Political violence in Bangladesh

According to BIA, Bangladesh General, Peoples Federal, Express, Republic and Union Insurance Limited gave the data and the amount of damages from1-15th January. Green Delta, Eastern, Karnafuli, Reliance, Northern General, Asia General, Asia Pacific and Army Welfare Insurance Company gave the data to 22nd January.

According to BIA, there are total 77 companies in the insurance sector of the country. Of them, 16 companies had loss of 3 crore taka in first 15 days. Of them, seven companies had a loss of 46 lakh 85 thousand for fire related incident. And on Motor Vehicles policy 15 companies had loss of 2 crore 73 lakh 97 thousand and 973 taka. And on another sector damage is 20 lakh 75 thousand taka.

Earlier, it’s said in a press conference on behalf of the Association in last 19th January that, the daily damage amount in the insurance sector for the strike-blockade is 15 crore taka. They said the year-end business was not satisfactory due to strike. Insurance company faces damage in Investment, Import-Export, and Premium income and policy claim payment from all the sides. And in this equation, insurance companies have to face the loss of 15 crore taka daily.

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