The insurance regulator yesterday approved five new life insurance companies under political consideration.
The approval was given five months since Insurance Development and Regulatory Authority (IDRA) issued 11 licences.
The new companies are Alfa Islami Life, Shawdesh Life, Trust Islami Life, Jamuna Life and Diamond Life Insurances.
Nazimuddin Ahmed, an apparel exporter and manufacturers, received licence of Alfa Islami Life in recommendation of Shahriair Alam, Member of the Parliament (MP) elected from Rajshahi-6 constitution, sources said.
The regulator issued licence of Diamond Life Insurance to former Chhatra League former General Secretary Ishaq Ali Khan, Jamuna Life Insurance to MP of AL Mosharraf Hossain, Shawdesh Life Insurance to president of the Sheikh Russel Krira Chakra Nurul Alam Chowdhury and Trust Islami Life Insurance to AL leader living in Australia Zaker Ahmed Bhuiyan, according to them.
“Licences of five new insurance companies were issued,” said IDRA Chairman M Shefaq Ahmed told the Dhaka Tribune. “IDRA is an autonomous body, so there is no room for political consideration in issuing licence.”
The approval was given in line with the finance ministry’s instruction, said a source in the IDRA.
Bangladesh Insurance Association (BIA) President Sheikh Kobir Hossain said insurance sector suffered for skilled manpower. “As a result 11 companies are yet to take off. In this context, the government should take the decision taking the present situation into the account.”
Earlier the IDRA issued licences to nine new life insurance companies and two general insurance companies.
The companies were- Mercantile Islami Life Insurance Ltd, Taiyo Summit Life Insurance Co Ltd, Sonali Life Insurance Co Ltd, NRB Global Life Insurance Co Ltd, Protective Life Insurance Co Ltd, Guardian Life Insurance Ltd, Chartered Life Insurance Co Ltd, Best Life Insurance and Zenith Islami Life Insurance Ltd. Sikder Insurance and Sena Kalyan General Insurance got licenses for setting up general insurance companies.