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General Insurance:
Insurance is essentially a collective endeavor under which a large number of
individuals agree to share the loss which a few of them would incur in future. This
means insurance protects those unfortunates who suffer heavy financial impact of
anticipated misfortunes by distributing the loss among many who are exposed to
the risk of similar misfortunes. General insurance is a type of insurance in which one
person makes regular payments so that he receives a sum of money different types
of accidental loss.

Insurance is not a new business in Bangladesh. Almost a century back, during

British rule in India, some insurance companies started transacting business, both
life and general, in Bengal. Insurance business gained momentum in East Pakistan
during 1947- 1971, when 49 insurance companies transacted both life and general
insurance schemes. These companies were of various origins British, Australian,
Indian, West Pakistani and local. Bangladesh Insurance (Nationalization) Order 1972.
After independence of Bangladesh, insurance industry was nationalized.
Subsequently through the enactment of Insurance Corporation Act VI, 1973, two
corporations namely Sadharan Bima Corporation (SBC) for general insurance and,
Jiban Bima Corporation for life insurance were established in Bangladesh. SBC was
acting as the sole insurer of general insurance till 1984. Between 1985 to 1988 first
generation of private general insurance companies were emerged as Bangladesh
Government allowed the private sector to conduct business in all areas of insurance
for the first time in 1984. A total of 16 private general insurance companies were
registered in that phase. In 1996 another 8 private general insurance companies
were registered. The third generation of private general insurance companies, which
included 18 companies, came into operation between 1999 and 2001. The general
insurance market in Bangladesh now consists of 45 private sector insurance
companies and 1 state owned insurance company.
The insurance industry in Bangladesh continued to achieved a moderate growth in
2009-2010 . per capita spending on insurance is still less than $3 while insurance
penetration , measured on premium as a percentage of GDP, also below 1 percent.
The total premium income from private sector life insurance companies rose from
TK 35794.53 million in 2008 to TK 45957 million in 2009 registering growth of
27.75%.
The gross premium income of private sector non life insurance companies also
increased from TK11163.03 million in 2008 to TK 12284.22 million in 2009
registering the growth of 10.93%.

It is hoped that the newly established insurance Regulatory Authority will

help to modernize and bring the insurance laws and rules of Bangladesh in
line with international standards and also help bring more discipline in the
sector.
The Bangladesh Insurance Association strongly feels that professionalism
modern management and sales techniques and new products development
are necessary for the growth and progress of the industry.