Insurance Development and Regulatory Authority (IDRA) requested Bangladesh Bank to allow proposed insurance companies to open accounts with the scheduled banks and deposit minimum deposit with the central bank.

“The IDRA made the request to the BB, as there is provision at present under the existing laws to open accounts in the name of any proposed insurance company and depositing money with the central bank,” said an official of the insurance regulator.

On March 28 this year, the IDRA sent a letter signed by its member Naba Gopal Bonik to the general manger of the Banking Regulation and Policy Department of the BB.

As per section 21 of the Insurance Company Act, 2010, the entrepreneurs of any proposed insurance company have to deposit a portion of their respective paid-up capitals of the company with a scheduled bank.

According to the act, minimum paid-up capital for any life insurance company is Tk 300 million while it is Tk 400 million for general insurance. Of the total paid-up capital, the entrepreneurs have to provide 60 percent for depositing with a scheduled bank for seeking registration.

As per the provision, the entrepreneurs have to deposit total Tk 180 million for obtaining linence of a life insurance company and Tk 240 million for general insurance company.

Besides, they have to deposit Tk 15 million or securities of equal amount as deposits for life insurance company, and Tk 25 million for general insurance company.

Later, the entrepreneurs would be able to withdraw the fund with permission of the IDRA authority.