A six-member team will stay in London from tomorrow to evaluate the reinsurance process of Biman Bangladesh Airlines for a massive overhaul in the system ensuring transparency and accountability.
The reinsurance of the national flag carrier is currently being done on the Lloyd’s market of London.
“A six-member committee is going to London to evaluate Biman’s reinsurance system,” Bank and Financial Institutions Division Secretary M Alsam Alam told Dhaka Tribune yesterday.
Bank Division yesterday issued a circular singed by Assistance Secretary Mitu Mariyam regarding formation of the evaluation committee.
The committee is led by Managing Director of Sadharan Bima Corporation Md Rezaul Karim. Other members include commercial counselor of Bangladesh embassy in the UK, one representative from Bank Division, one representative from reinsurance department of Sadharan Bima Corporation and two representatives from Biman.
The team will stay in London from April 22 to May 4 to complete the re-insurance.
The insurance of all aircraft of Biman is supposed to end on May 14 this year.
Biman sources said the airliner has faced huge financial loss in previous insurance policy in Lloyd market London.
Generally, the reinsurance process has to be done on the insurance market in London through brokers.
There is a massive amount of funds involving the reinsurance practice.
A large amount of premium is charged by the international reinsurance firms against various risks of the planes.
On the other hand, the firms ensure coverage of the risks of a plane from 98 to 99% against its value. Different premium rates are charged by re-insurers according to various risks of an airplane, according to Sadharan Bima Corporation.
Under the international lease conditions, the Biman Bangladesh Airlines has to complete reinsurance with an international re-insurer during collecting lease plane.
Otherwise, the Biman has to pay excess money to purchase or take lease of a plane from the international market if it has no re-insurance coverage.
The domestic air service is facing continued challenges due to poor performance of domestic airlines.
On the contrary, foreign carriers have been driving the expansion of the international market to and from Bangladesh, industry insiders said.
