Jiban Bima Corporation (JBC) is the state-run life insurance corporation in Bangladesh under the provisions of the Insurance Act 1938, Insurance Rules 1958, and related other laws enforceable in Bangladesh in Bangladesh Corporation Act 1973. The JBC started on 14 May 1973 with assets and liabilities worth TK. 157 million of defunct 37 life Insurance companies.[1]
History
Pakistan period (1947–1971)
After partition of India three insurance companies were under Muslim ownership: The Eastern Federal Union Insurance Company Limited, Muslim Insurance Company Limited and Habib Insurance Company Limited. These three companies moved to Pakistan and registered to transact business there.[2] The total number of insurers (life plus life and general) registered in Pakistan in 1951, 1961 and 1971 were 13, 17 and 75 respectively. In 1971, out of 75, ten of the 40 Pakistani companies were exclusively engaged in life insurance business, 21 in life and other business, and 9 in other business only. There were only four foreign insurance companies marketed their products in Pakistan in 1971: Norwich Union Life Assurance Society, Pearl Assurance Company Limited, Prudential Assurance Company Limited and American Life Insurance Company Limited.
Bangladesh period (1971–1973)
The number of insurance companies that had business in East Pakistan was 75, of which 10 were locally incorporated ones. Following the independence of Bangladesh in 1971, both life and general insurance business in the country was nationalised under the Bangladesh Insurance (Nationalisation) Order 1972 except foreign insurance companies. Five corporations were established to absorb, own and control the businesses of the 75 existing insurance companies and these new corporations were Bangladesh Jatiya Bima Corporation, Karnafuli Bima Corporation, Tista Bima Corporation, Surma Jiban Bima Corporation and Rupsa Jiban Bima Corporation.
Insurance schemes
The JBC offers 15 different types of life insurance schemes. These are whole life assurance, endowment assurance, child protection policy, children endowment, anticipated endowment assurance, pension scheme policy, single payment policy, mortgage protection policy, group term insurance policy, group endowment policy, group variable endowment policy, group pension policy, grameen bima policy, joint life endowment policy, and progressive premium policy.[3]
Business performance
1973–1974
In 1973 and 1974, the JBC sold 41,812 and 36,000 life insurance policies with a total assured sum of Tk 397.7 and Tk. 400 million respectively. In 1973 and 1974 the JBC earned gross premiums of Tk. 58 million and Tk. 67.6 million which comprised first year premiums (including group) Tk. 22.7 million and Tk. 29.6 million, renewal premiums Tk. 35.3 million and Tk. 37 million respectively. The JBC inherited an outstanding claim of Tk.50 million at the time of its inception. It has settled all the claims by 31 October 1974.
1998–2011
In 1998, the JBC earned gross premiums of Tk. 1,402.8 million, which comprised first-year premiums (Tk. 401.2 million), renewal premiums (Tk. 913.0 million), and group insurance premiums (Tk. 88.6 million). It paid Tk. 493.7 million to settle life insurance claims under various schemes. Premium income of the corporation was Tk. 2,447 million in 2007 marking an increase 63% over premium income in 2001.[3] Subsequently, the life fund of the JBC has increased to Tk. 13.15 billion, up to the year 2011, which was only Tk. 218.3 million in 1973. The JBC has paid Tk. 15.81 billion against various claims, the highest such payments in the country's life Insurance business. The JBC's investment has reached Tk. 11.99 billion from only Tk.
See also
- Insurance Development & Regulatory Authority of Bangladesh
Further reading
References
- Jiban Bima Corporation Bangladesh, retrieved 25 May 2014^
- Rashid, Harunur (2010). "An Image of an Insurer" in Rahman. Mosharraf^
- S M Mahfuzur Rahman. Banglapedia: National Encyclopedia of Bangladesh Asiatic Society of Bangladesh, 2012^