Insurance Act, 2010

(Act No. 13 of 2010)

[ March 18, 2010 ]

An Act enacted for the purpose of repealing, re-enacting and consolidating the
Insurance Act, 1938

WHEREAS, it is expedient and necessary to repeal the Insurance Act, 1938 (Act IV of
1938) and to re-enact and consolidate the same; And

Therefore, it is hereby enacted as follows:-

CHAPTER ONE
early

Short title 1. (1) This Act shall be called the Insurance Act, 2010 .
and (2) It shall take effect immediately.
introduction

definition 2. Unless there is anything contrary to the subject or context, in this Act,—
(1) "approved auditor" means an auditor appointed by the Authority under
the provisions of this Act;
(2) "approved investment" means an investment specified as an
investment approved by the Government by Gazette notification for the
purposes of this Act;
(3) "authorised securities" means Government securities and any
securities payable out of Government revenue or guaranteed by the
Government for payment of principal and interest; and it shall also include
debentures or any other securities issued to raise money under any
power conferred by an Act of Parliament which the Government may, by
Gazette notification, designate as securities for the purposes of this Act;
(4) "participating policy" means, in relation to the life insurance business,
any contract other than investment related contracts, health related
contracts, group life insurance contracts and group health related
contracts under the terms of which the insurance policyholder participates
in the distribution of dividends or surpluses of the insurer in respect of life
insurance; possessed; Provided that a benefit granted under the policy, if
it is determined in accordance with the terms of the contract and the
optional power of the insurer is not exercisable therein, shall not be
deemed to be a dividend or distribution of surplus for the purposes of this
clause;
(5) "financial institution" means a financial institution as defined in clause
(b) of section 2 of the Financial Institutions Act, 1993 (Act No. 27 of 1993);
(6) "electronic media" means any electronic media used for media
including internet, mobile, radio, television, tape recorder, cassette and
computer diskette and CD-ROM;
(7) "Islamic insurance business" means an insurance business conducted
in accordance with Islamic Shariah;
(8) "actuary" means a qualified actuary as prescribed by regulations;
(9) "employer agent" means a person licensed under this Act who
procures insurance business for an insurer in relation to life insurance by
employing or having as its full-time or part-time employees;
(10) "authority" means the Insurance Regulatory Authority constituted
under the Insurance Development and Regulatory Authority Act, 2010 (Act
No. 12 of 2010);
(11) "company" means a company defined in clause (d) of sub-section (1)
of section 2 of the Companies Act;
(12) "Company Act" means the Companies Act, 1994 (Act No. 18 of
1994);
(13) "continuing disability agreement" means an agreement under which
benefits are payable subject to the following events, namely :-
(b) death of the Life Assured from any cause specified in the insurance
contract;
(a) if the insured is injured or incapacitated by accident or illness; or
(e) if the insured person is found to be suffering from or undergoing
treatment for any disease specified in the contract;
(14) "Schedule" means any Schedule to this Act;
(15) "Scheduled Bank" means a Scheduled Bank as defined in clause (j)
of section 2 of the Bangladesh Bank Order, 1972 (PO 127 of 1972);
(16) "encumbrance" means any mortgage, fixed or floating charge,
hypothecation, page, title or security or otherwise transfer of interest in
any immovable or immovable property by which the legal and beneficial
ownership is diminished;
(17) "registration" means the registration granted under section 9 of this
Act;
(18) "family" means husband or wife, father, mother, son, daughter,
brother and sister and all dependents of the person concerned;
(19) "policy" means any contract of insurance;
(20) "reinsurance" means an agreement whereby the insurer transfers the
excess risk insured in his own interest to one or more reinsurers or to any
other insurer and limits the liability to himself;
(21) "relinquishment insurance" means an agreement whereby the
reinsurer undertakes to relinquish certain liabilities of the reinsurer to
another insurer for its own benefit;
(22) "certified" means, in relation to a copy or translation of a document to
be filed by an insurer or on its behalf or by a society as defined in Chapter
III of this Act, certified as a true copy or translation by a chief executive
officer of such insurer or society;
(23) "regulations" means regulations made under this Act;
(24) "rules" means rules made under this Act;
(25) "Insurer" means any such company, association or statutory body
incorporated or registered in Bangladesh or outside Bangladesh under the
laws of Bangladesh or the laws of any other State, which-
(1) carries on insurance business in Bangladesh; or,
(2) appoints a representative in Bangladesh for the purpose of insurance
business or establishes a business office within Bangladesh;
(26) "insurance policy subscriber" or "insured customer" means the
person in whose favor the policy is issued or, in the case of a life
insurance policy, the person in whose favor the entire interest in the policy
is vested in perpetuity;
(27) "insurance policyholder's liability" means life insurance in relation to
—
(n) liability arising under the policy; or
(a) liability arising out of the event described in the policy;
(28) "Insurance" means a policy and contract or under any other name
subject to the acceptance of premiums by one person to another person,
subject to the occurrence of any event specified in the contract in which
the second-mentioned person is injured, the business of undertaking and
being engaged in undertaking to pay, life; It shall also include reinsurance,
and reinsurance, including contracts of insurance;
(29) "Insurance Agent" means any person registered under this Act, who
solicits and collects insurance business, including the activation, renewal
or revival of insurance policies, on receiving or agreeing to receive
commission or other remuneration;
(30) "insurance surveyor" means a person licensed under this Act, by
whatever name called, who, under a contract of non-life insurance,
ascertains the cause, extent, location and cause, extent, location and
claimed loss of any loss to any product, property or interest insured;
Provide an unbiased opinion on the quantity tested;
(31) "manager" means a manager as defined in clause (t) of sub-section
(1) of section 2 of the Companies Act;
(32) "person" means any person and includes any institution, company,
partnership, firm or any other body;
 (33) "broker" means an intermediary or insurance intermediary, including
banks and financial institutions, registered under this Act to act for or on
behalf of an insurance or reinsurance proposer in receipt of broker's fee or
commission from an insurer or reinsurer;
(34) "managing agent" means any person, firm or company who, by
contract with the company and unless otherwise provided in the contract,
is entitled to manage all the affairs of that company under the control and
direction of the board of directors and, by whatever name called, any
person holding similar office; It shall also include firms or companies;
(35) "Government securities" means Government Security as defined in
clause (a) of section 2 of the Securities Act, 1920 (X of 1920);
(36) "Co-operative Societies Act" means the Co-operative Societies Act,
2001 (Act No. 47 of 2001);
(37) "solvency margin" means the amount reserved by the insurer as
prescribed by regulations;
(38) "subsidiary" or "subsidiary company" means a subsidiary company as
defined in sub-section (2) of section 2 of the Companies Act;
(39) "auditor" means any person qualified to act as an auditor of a
company under the provisions of section 212 of the Companies Act;
(40) All words or expressions not defined in this Act shall have the
meaning assigned to them in the Companies Act, 1994 .

CHAPTER II
Provisions applicable to insurers

Applicability 3 The provisions of this Act shall be applicable in the case of any class of
of Act to insurers in relation to business related matters in Bangladesh if any
Liability liability is not fulfilled and no other action has been taken regarding the
Insurer related liability.

Restrictions 4 (1) No person shall be permitted under this Act to carry on insurance or
on carrying reinsurance business in Bangladesh other than the following companies
on or societies, namely:-
insurance
(a) any public limited company under the Companies Act;
or
(b) any co-operative societies registered under the Co-operative Societies
reinsurance
Act which are registered as insurers under the Insurance Act, 1938
business
immediately before the coming into force of this Act; And
(c) any insurance company incorporated under the laws of any country
outside Bangladesh, which is not a private company or a subsidiary of a
private company.
(2) No mutual insurance company shall carry on non-life insurance
business under this Act.
Classification 5 (1) For the purposes of this Act there shall be two classes of insurance
of business namely life insurance and non-life insurance.
Insurance (2) Life insurance under this section shall mean contracts of insurance
Business relating to human life and, subject to the provisions of sub-sections (4)
and (5), may, by rules, be classified into various sub-classes for the
effective conduct of life insurance business.
(3) Non-life insurance under this section means contracts of insurance of
all classes other than contracts of insurance on human life and, subject to
the provisions of sub-sections (4) and (5), for the effective carrying on of
the business of non-life insurance, by rules , can be classified into various
sub-categories
(4) A contract under this Act whose principal object is to carry on life
insurance business shall be deemed to have been entered into for the
purpose of carrying on life insurance business, if the contract includes any
insurance business relating to or supplementary to non-life insurance.
shall be
(5) The execution and performance of a contract by a registered insurer
for the carrying on of non-life insurance business under a contract of not
more than 1 (one) year's duration as a non-life insurance contract
containing terms of payment for loss caused by accident, disease or
disability other than accidental death or death of any person. will be
considered
(6) Notwithstanding anything contained in this section, life insurance and
general insurance business carried on by an insurer under the Insurance
Act, 1938 and the Insurance Corporations Act, 1973 shall be deemed to
be life insurance and non-life insurance business respectively for the
purposes of this Act.

Insurance 6 Every insurer shall carry on life insurance or non-life insurance business
business in in the rural or social sector at such proportionate rates as may be
rural or prescribed by the Authority, by Gazette notification, after the coming into
social force of this Act.
sector

Islamic 7 (1) All insurers registered under the Insurance Act, 1938 before the
Insurance coming into force of this Act carrying on Islamic insurance business, and
Business any person or company interested in carrying on Islamic insurance
business, subject to the other provisions of this Act and obtaining
permission from the authorities, May carry on any class or sub-class of
insurance business:
Provided that no person or company shall conduct conventional non-
life insurance business and Islamic insurance business at the same time.
(2) Those insurers who, immediately before the coming into force of this
Act, were conducting Islamic insurance business along with the
 conventional non-life insurance business, after the coming into force of
this Act, those insurers shall, after the coming into force of this Act,
conduct any type of insurance business between the conventional
insurance business and the Islamic insurance business. Can manage:
Provided that within 6 (six) months after the establishment of the
Authority, such insurer shall notify the Authority in writing of the type of
insurance business he is interested in doing.
(3) An insurer under the terms of sub-section (2) shall, subject to the
approval of the Authority, continue to carry on that type of insurance
business and shall not carry on any other type of insurance business
except:
Provided that the insurance policies previously issued under such
other type of insurance business shall remain in force until the claim is
paid or the term expires.

Registration of insurers

Certificate 8 (1) No person shall carry on any activity relating to insurance business
of under this Act without a certificate of registration from the Authority:
Registration, Provided that life insurance corporations and general insurance
etc corporations constituted under the Insurance Corporations Act, 1973 shall
be deemed to be registered under this Act for carrying on insurance
business.
(2) Every such person desiring to carry on life insurance or non-life
insurance business shall apply to the Authority, in the form and manner
prescribed by the regulations, for obtaining a certificate of registration.
(3) If an insurer registered under the Insurance Act, 1938 immediately
before the coming into force of this Act wishes to continue its insurance
business in Bangladesh, the said insurer shall apply in writing to the
authority for a registration certificate within 6 (six) months of the coming
into force of this Act .
(4) For the issuance and renewal of registration certificate under this
section the applicant shall pay such fee as may be prescribed by the
rules.
(5) The following documents, papers and information shall be submitted
along with the application form for registration certificate under this
section, namely:-
(a) if the applicant is a company, certified copy of its memorandum and
articles of association, names, addresses, occupations and tax
identification number, if any, of the directors;
(b) if the applicant is an insurance company registered under the
Insurance Act, 1938, the full address of its head office in Bangladesh and
the names, tax identification numbers, if any, and contact addresses of the
directors and managers of the said company ;
(c) the documents specified in clause (a) of section 114 if the head office
of the insurance business of the applicant is outside Bangladesh or if the
applicant is a permanent resident outside Bangladesh;
(d) if the applicant is a co-operative society, the names, addresses, tax
identification numbers, if any, of all its members and the address of the
registered head office of the society;
(e) the requirements, if any, not applicable to the nationals of the country
in which the insurer is formed, incorporated or in the country in which the
person is a permanent resident in the case of such applicant having its
principal office of insurance business outside Bangladesh or in the case of
an applicant who is a permanent resident outside Bangladesh; A
statement by the chief executive officer of the insurer of such matters
imposed by law or custom as conditions in respect of Bangladeshi
nationals for carrying on the business;
(f) the statement of the class or sub-classes in which the insurance
business is to be done and the certificate of Bangladesh Bank containing
the details of the amount of money deposited with the details related to
the deposit of money required under section 23 or section 119 before
applying for registration;
(g) in all cases to which the provisions of section 21 and section 118
apply, a statement duly certified by the auditor of the total paid-up capital
and total working capital of the insurer respectively and in respect of both
the paid-up capital or, as the case may be, the working capital of the chief
executive officer of the insurer; A declaration certified by affidavit that the
provisions of the said sections have been complied with;
(h) published prospectus, if any, and certified copy of the insurer's
standard policy form, detailing the proposed premium rates, benefits and
terms and conditions relating to the insurance policy and a certificate by
the actuary as to the enforceability and correctness of the said rates,
benefits and terms relating to the life insurance business;
Provided that, in respect of non-life insurance business other than
workmen's compensation and motor car insurance, matters relating to
prospectus, completed forms and statements;
(j) receipt of payment of fees, as prescribed by rules, for any class or sub-
class of insurance business regulated under this Act; And
(j) any other document, paper or information prescribed by regulations for
this purpose
(6) Every application under this section shall be signed and certified by
the applicant by a declaration that the particulars attached to the
application are true and correct.
 (7) After receiving the application form under sub-section (3), the authority
may make necessary inquiry and inquiry to ascertain all the information
submitted with the application form.

Issuance of 9 (1) On receipt of any application for a certificate of registration under

registration section 8, subject to the provisions of sub-sections (2) and (3), the
certificate Authority may grant a certificate of registration to the insurer for carrying
on life insurance or non-life insurance business if he is satisfied in the
following matters: can, namely:-
(a) the applicant is incorporated or registered under the laws of
Bangladesh or any other State in Bangladesh or outside Bangladesh;
(b) the applicant has complied with the provisions relating to the minimum
paid-up share capital required under this Act;
(c) the provisions relating to minimum statutory deposits under this Act
have been complied with by the applicant;
(d) the general characteristics of the applicant's management are good
and the financial position is sound;
(e) the applicant has complied with the provisions relating to reinsurance
arrangements under this Act;
(f) the proposed business of the applicant is likely to generate sufficient
income to meet its liabilities; And
(g) An actuary and other qualified officers and employees are employed
under the applicant for the conduct of life insurance business.
(2) If the application of any applicant is not considered proper, the
Authority shall, after giving the applicant a reasonable opportunity of
hearing, reject the application within the prescribed time and manner and
shall communicate the same to the applicant in writing stating the proper
reasons for such decision.
(3) If an application for a certificate under sub-section (2) is rejected, the
aggrieved person may, within 30 (thirty) days after being notified of the
decision, apply to the authority for reconsideration of the matter.
(4) The Authority shall reject the application for a certificate of registration
unless the fee prescribed by the rules is paid by the applicant for each
class and sub-class of insurance business, in the manner prescribed by
the regulations, and the receipt of the relevant payment is not submitted.

Suspension 10 (1) The Authority may suspend or cancel the registration of an insurer
or in whole or in any particular class or sub-class of insurance business for
cancellation one or more of the following reasons, namely-
of If the insurer-
registration (a) fails to comply with the provisions of section 23 or section 119 relating
to bail;
(b) does not commence business within 1 (one) year of registration;
(c) proposes or makes any compromise or settlement with its creditors, or
is amalgamated or the insurance business is suspended or dissolved or
the business is otherwise wound up or the insurer is declared bankrupt;
(d) conducts any insurance business contrary to the interests of insurance
policy customers or the development of business or detrimental to the
national interest;
(e) is unable to fulfill his obligations;
(f) fails to maintain the solvency margin prescribed by the regulations;
(g) contravenes any provision of this Act or any rule or regulation made
thereunder or fails to comply with any condition imposed or any direction
given by the Authority;
(h) engages in any unethical activity or malfeasance or irregularities in the
management of his business;
(j) fail to satisfactorily carry out reinsurance arrangements; or
(j) any claim against him on any insurance policy, arising in Bangladesh,
remains unpaid for a period of 3 (three) months after the final judgment of
any court or order of an authority under this Act.
(2) The Authority may, for one or more of the reasons mentioned in sub-
section (1), by giving 30 (thirty) days' notice to the insurer, suspend the
registration granted to the insurer for a period not exceeding 3 (three)
months. Until such suspension is withdrawn, the insurer Issuance of new
policies by him shall be prohibited and shall continue the obligations
under the earlier policies.
(3) On receipt of the reply from the insurer to the notice sent under sub-
section (2), the Authority may take the following measures, namely-
(a) immediate withdrawal of the suspension, if cause is shown in favor of
removing the suspension granted by the insurer; or
(b) Extension of the period of suspension previously in force for a period
not exceeding 2 (two) months or cancellation of registration if the insurer
is not satisfied for reasons shown.
(4) If the Authority decides to extend the suspension in accordance with
clause (b) of sub-section (3), the Authority shall again inform the insurer of
the following matters, namely:-
(a) period of extension of suspension; And
(b) the reasons for extension of suspension and the necessary action to
be taken by the insurer to remove such reason and the time limit thereof.
(5) If the action taken by the insurer under clause (b) of sub-section (4) is
not satisfied, the Authority shall, forthwith, cancel the certificate of
registration of the insurer and, if satisfied, withdraw the suspension.
(6) If any certificate of registration is canceled under this section, the
Authority shall, within 15 (fifteen) days of the decision, by written notice,
 communicate its decision to the insurer and such decision shall take effect
on the date specified in the notice.
(7) The applicant may appeal to the Government against any action or
decision taken by the Authority under Sections 9, 10 and 11 within a
period not exceeding 90 (ninety) days of being informed of the decision.
(8) If any certificate of registration is canceled under this section, the
insurer shall not enter into any new contract of insurance after the
cancellation takes effect:
Provided, however, that the rights and liabilities of the insurance
policies so issued before the cancellation of the certificate of registration
shall, subject to the provisions of sub-section (11), continue and continue
as they would have been if the certificate of registration had not been
cancelled.
(9) If the registration has been canceled under sub-section (1), the
Authority may revive the registration at its own discretion if it is satisfied
for the following reasons, namely:-
If the insurer-
(a) furnish the necessary security under the provisions of section 23 or
section 119;
(b) revive his permanent contract;
(c) complies with the contravention or failure to comply with which the
registration was canceled under clause (g) of sub-section (1);
(d) not leave any claim under clause (j) of sub-section (1) unpaid; or
(f) Comply with the instructions given by the authorities
(10) If the registration of an insurance company is canceled under sub-
section (1), the authority may, after 6 (six) months from the effective date
of the cancellation, apply to the court for an order to wind up the
insurance company or to wind up any class of insurance business of the
insurance company, unless sub- -In accordance with section (9) the
registration of the insurance company is revived or any application for
winding up of the company has previously been raised in court.
(11) The court may treat the application under sub-section (10) as an
application under section 103 and section 109 and take necessary action.

Renewal of 11 (1) The certificate of registration granted under section 9 is renewable

Certificate and shall be renewed every year.
of (2) The insurer shall submit the application for renewal of registration for
Registration any year to the authority before 30th November of the previous year and
shall pay the fee prescribed by the rules along with the application.
(3) The Authority shall renew the license of the insurer subject to the
application of the insurer under sub-section (2) and receipt of the
application fee.
 (4) The Authority shall maintain a register and record every matter relating
thereto in respect of the certificate of registration and its renewal,
suspension and cancellation.

Notification 12 (1) If at any time after registration under section 9 any change occurs
of change or is made in relation to any document or particulars filed with the
in application or any document required to be filed with the application, the
information insurer shall forthwith submit to the Authority a duly certified statement of
submitted such change. Will send
with (2) If any change under sub-section (1) relates to the life insurance policy
application and affects the proposed rate of insurance, facilities and conditions, an
for actuarial certificate shall be attached to the statement relating to such
registration change.

Restrictions 13 Any insurer-

on (a) for life insurance business if registered for any class of non-life
registration insurance business; And
of life (b) Non-life insurance business, if registered for any class of life insurance
insurance business, shall not be registered.
and non-life
insurance
business
by the
same
insurer

Grant of 14 (1) No insurer shall, after the commencement of this Act, establish a
license to new branch or office and transact business without obtaining a license
set up from the Authority.
branches (2) An application for obtaining a license under sub-section (1) shall be
and offices made by the insurer, in the form prescribed by the regulations and subject
of insurers to payment of the fee prescribed by the rules.
(3) On receipt of an application for a license under this section, the
Authority may, after considering the application, issue a license in the
prescribed form to the insurer for setting up a new branch or office.
(4) If an applicant's application is not considered valid, the Authority shall
reject the application after giving reasonable opportunity to the applicant
and shall notify the applicant in writing not later than 6 (six) weeks from
the date of decision stating the reasons for rejection.
(5) If the license application under sub-section (4) is rejected, the
aggrieved person may appeal to the Government within 30 (thirty) days of
being informed of such decision and the order given by the Government
based on such application shall be deemed final.
(6) If any appeal is made under sub-section (5), the same insurer shall not
reapply for a license to establish a branch or office or to transact business
 at the same place during the pendency of such appeal.
(7) If an application for a license to establish a new branch or office or
transact business under this section is refused or, as the case may be, an
appeal is refused, within 1 (one) year from the date of such refusal, the
same insurer shall establish a branch or office at the same place or
Cannot reapply for license to transact business.

Restrictions 15 (1) No person shall be registered as an insurer under this Act or

on Name of immediately before the coming into force of this Act under the same or
Insurer similar name as any insurer registered under the Insurance Act, 1938 ,
which may cause confusion to the public or be considered fraudulent, if
No Registered Insurer is in winding up process and already registered
Insurer's consent for registration of any person in same or similar name as
Insurer has not been notified to the Authority.
(2) If an insurer is carelessly and unintentionally issued with a certificate
of registration in a name or a similar name which is similar to the name of
an already registered insurer and without the consent of the earlier
registered insurer, the later registered insurer, on the application of the
earlier registered insurer, the Authority If the name is not changed within
the prescribed period, no insurance business can be done.

Premiums, Insurance and Reinsurance

Accuracy of 16 (1) If, at the time of application for registration under section 8 or at any
premium other time, it appears to the Authority that the proposed premium rates,
rates for life benefits and conditions relating to life insurance are not acceptable or
insurance correct, then the Authority shall, within the period so prescribed, revise the
said rates, benefits and conditions. The authorities may direct such
corrections as may be deemed acceptable and proper
(2) The insurer shall not issue any life insurance policy unless the actuary
employed by the insurer certifies that the premium rate, benefits and
conditions stated in the policy are acceptable and correct.
(3) If an insurer conducting life insurance business wants to launch a new
insurance plan, it must be submitted to the authority at least 30 (thirty)
days before marketing the prospectus or prospectus containing full details
and the sample policy plan, along with the certificate of the actuary
employed, as directed by the authority.
(4) If any insurer fails to comply with the provisions of sub-section (2) and
sub-section (3), the Authority may impose a fine not exceeding five (five)
lakhs on the insurer concerned for each such failure.
(5) The certificate payable by the actuary shall be in the form prescribed
by the regulations
(6) The Authority may fix the maximum rate of interest and rate of
commission applicable to the premium rate
 (7) If the life insurance plan is not duly proved to the Authority, the
Authority shall take the following measures within the thirty (30) days
mentioned in sub-section (3), namely-
(a) shall prohibit the marketing of the life insurance scheme by the insurer
to the general public; or
(b) direct the insurer to modify or amend the insurance scheme as
directed by him.
(8) The Authority may direct the insurer to transmit information relating to
the mortality rate, rate of investment income, rate of management
expense and rate of commission paid to the insurance policy customers
and the insurer shall comply with such direction.
(9) any policy or contract other than a policy of life insurance business
specified in the prospectus, if any, filed with the Authority under clause (h)
of sub-section (5) of section 8 of an insurer, or in the revised statement
filed under section 12; shall not offer, unless the Insurer has filed with the
Authority a certificate as to the rates, benefits and terms of such policy in
accordance with this clause.
(10) The Authority shall prepare a mortality register containing the
average mortality of insurance policy subscribers every 10 (ten) years.

Fixation of 17 (1) For the purposes of this Act, the Authority may constitute a Central
rates of Rating Committee (CRC) and, in consultation with the said Committee,
premium may fix premium rates for non-life insurance business, which such
for non-life insurers shall be bound to observe.
insurance (2) The Chairman of the Authority shall be the head of the Central Rating
Committee and its membership, powers, functions and management shall
be prescribed by regulations.
(3) The Government may, if necessary, dissolve the Central Rating
Committee at any time

Provisions 18 (1) Every insurer shall, within 30 (thirty) days of the coming into force
relating to of this Act, declare to the Authority the amount of gross premiums due in
collection respect of his fire, marine and miscellaneous insurance business,
of premium including the status of agents, if any, and shall collect the same within
such time as may be prescribed by the Authority, and in this respect
Follow the instructions given by the authorities
(2) No insurer, without the prior permission of the Authority, shall, on or
after the date of coming into force of this Act, forfeit any premium due in
respect of non-life insurance business.
(3) No insurer shall accept any insurance risk in connection with non-life
insurance business in Bangladesh unless the insurer has received the
premium payable or part of the premium payable as prescribed by law or
has guaranteed the payment of the premium payable by such person
within such manner or period as may be prescribed. remains
 (4) In case of cancellation of non-life insurance policy or any change in its
terms and conditions, the amount of refundable premium due to the
policyholder shall be paid directly to the policyholder by crossed order
check or money order and due acknowledgment of receipt shall be
obtained from the policyholder and such refundable amount shall in no
case Insurance cannot be provided as an agent or broker.

Regulations 19 No person shall insure any risk of any property or interest in

relating to Bangladesh outside Bangladesh without obtaining a certificate from the
insurance authority to the effect that such risk cannot be covered in Bangladesh:-
abroad Provided that the Authority may exempt any person from the
provisions of this section relating to the insurance of such property or
interest for such period as it thinks fit.
Provided further that if the Authority refuses to issue a certificate
under this section, the Authority shall notify the applicant in writing of its
decision within 15 (fifteen) days of receipt of such application.

Provisions 20 (1) Subject to the conditions prescribed by regulations, an insurer may

relating to reinsure with another insurer any liability in Bangladesh or outside
reinsurance Bangladesh arising out of such executed and effective contract or
abroad insurance policy that the interests of the policyholder and the insurer are
secured.
(2) The Authority may, by notice in writing, direct any reinsurer to furnish
such information as may be necessary as to whether it has sufficient
funds and assets to meet claims under the policy.
(3) The Authority may, from time to time, by notification in the Official
Gazette, prohibit all insurers from entering into contracts of reinsurance
with any reinsurer in Bangladesh or outside Bangladesh for the purpose
of covering risks under any policy or contract issued and in force relating
to their insurance business in Bangladesh, if the reinsurer Such
agreements are against the national interest:
Provided that, before issuing a notification under this sub-section, the
Authority shall notify all insurers and reinsurers carrying on reinsurance
business in Bangladesh or outside Bangladesh with those particular
reinsurers of the intention to issue the notification and shall consider any
application by the insurer or insurers regarding the notification of
issuance.

Capital and deposits

Conditions 21. (1) No insurer shall be registered to carry on any class of insurance
to be business after the coming into force of this Act, except such insurer who
fulfilled was engaged in any class of insurance business in Bangladesh before the
regarding coming into force of this Act, unless he has the amount of paid-up capital
capital and specified in Schedule 1 and His shares are not redeemed in the manner
shareholding prescribed by the rules:
Provided that the Government may, if necessary, by notification in the
Government Gazette, increase or decrease the amount of paid-up capital:
It is further provided that the entrepreneurs shall deposit their
respective share of the paid up capital in the name of the company in any
Scheduled Bank in Bangladesh free of liability before applying for
registration and the said amount shall remain as deposit free of liability.
(2) No money shall be withdrawn from the paid-up capital deposit account
referred to in sub-section (1) after the application for registration is made
by the insurer or in future without the written permission of the Authority,
except the interest earned on the deposit and on the paid-up capital
except in favor of the Authority without the written permission of the
Authority. No lien shall be registered.
(3) Any insurer incorporated in Bangladesh or outside Bangladesh before
the commencement of this Act shall fulfill the condition of having its capital
under sub-section (1) within the manner and time prescribed by law.

Shares of 22 Foreign entrepreneurs may, subject to conditions prescribed by law,

foreign purchase or hold shares in insurance companies and such shareholding
entrepreneurs shall not exceed the maximum limit fixed by the Government.

Deposit 23 (1) If an insurer has been registered before the commencement of this
Act or, at the time of applying for registration under this Act, the sum
specified in Schedule-1 shall be paid to Bangladesh Bank in cash or at
estimated value as per the market rate on the date of deposit, in approved
securities or partly in cash and partly in similar estimated approved
securities. shall deposit and keep as security
(2) The security money under sub-section (1) shall be deposited in favor
of the insurer and if the said money is refundable to the insurer, the
amount of the cash amount invested in the securities in view of the
application of the insurer shall be payable by the insurer except that
portion and the securities deposited. Interest earned shall also be payable
by the Insurer:
Provided that the commission charged by Bangladesh Bank, from
time to time, for collecting interest on the securities shall be deductible.
(3) The insurer may at any time replace the securities deposited with
Bangladesh Bank under this section in cash or other approved securities
or partly in cash and partly in other approved securities provided that the
value of such cash or other securities is at the prevailing market rate, or
similar cash and The face value of the securities, as applicable, is not less
than the estimated face value of the securities on the date of submission.
(4) Bangladesh Bank if the insurer applies-
 (a) sell the securities deposited by the insurer under this section and keep
the proceeds of such sale as security for himself, or
(b) the insurer may invest the whole or part thereof of the proceeds of the
deposit or the sale of the securities specified, or the maturity value of the
securities deposited, in Government securities and collect the commission
so charged on such sale and investment.
(5) In the case where the provisions of sub-section (4) apply,—
(a) If the maturity value of the securities is less than the market value
prevailing on the date of deposit of the securities, excluding the proceeds
of sale of the securities or accrued interest, the insurer shall make up the
said deficiency in cash or market on the date of deposit within 2 (two)
months of the maturity or sale of the securities. shall meet the rates by
way of government securities at estimated value or partly by cash and
partly by securities, otherwise the insurer shall be deemed to have
breached the provisions relating to security under this section.
(b) if the maturity value of the securities excluding the proceeds of sale of
the securities or the interest earned exceeds the prevailing market value
on the date of deposit of the collateralized securities with Bangladesh
Bank, in that case the Authority shall take appropriate measures through
Bangladesh Bank to refund the said excess amount to the insurer; And
(c) if any part of the sum assured under this section is used to discharge
any liability of the insurer, the insurer shall make an additional deposit in
cash or in government securities valued at the market value on the date of
deposit or partly in cash and partly in government securities valued at the
same value to meet the said sum. And if the security used to discharge
the liability or any part thereof is not made good within 2 (two) months
from the date of special use, the insurer shall be deemed to have failed to
meet the requirements of sub-section (1) and to have violated the
provisions relating to security.

Preservation 24 The surety of the insurer shall be preserved in the following manner,
of security namely:-
(a) any security deposited under section 23 or 119 shall be deemed to
form part of the property of the insurer;
(b) the surety shall not assign any title or make the surety liable;
(c) the security shall not be used to discharge any liability of the insurer
other than discharge of outstanding liability arising out of the insurance
policy issued by the insurer; or
(d) No such liability in respect of the insurance policy customer's policy
which the insurance policy customer has failed to collect in any other
manner shall be secured except by an order obtained in his favor in
respect of such liability.
Refund of 25 If an insurer ceases any class of insurance business in Bangladesh
security and if his liabilities in that class of business are satisfactorily settled in
deposit Bangladesh or arrangements are made for such settlement in any other
manner, the authority shall, on the application of the insurer, return the
security deposited under section 23 or section 119 for that class of
insurance business. Can

Accounts, audits, actuarial reports and statements

Separate 26 (1) An insurer shall, under this Act and the rules made thereunder,
accounts maintain separate accounts of all income and expenditure for each class
and funds and, as the case may be, sub-classes of insurance business, whether
carried on singly or jointly, irrespective of the nature of the business.
(2) In cases where the insurer carries on life insurance business, all the
proceeds of that business shall be deposited in a separate fund called Life
Insurance Fund.
(3) Details of the money and assets deposited in the fund under sub-
section (2) shall be duly certified by the auditor and sent to the authority
within 6 (six) months of the end of every calendar year by every insurer.
(4) Life insurance funds shall be for the security of life insurance
policyholders only, shall not be liable under any contract other than life
insurance and shall not be used directly or indirectly for any purpose other
than life insurance business.

Statement 27 (1) Every insurer under this Act shall, after the close of every calendar
of year in respect of all classes of insurance business transacted by him in
Accounts, Bangladesh, prepare the following statements for that year, namely-
etc (a) balance sheet in the manner and form prescribed by the regulations;
(b) profit and loss account in accordance with the tables prescribed by the
regulations;
(c) in the case of an insurer required by this Act to keep separate
accounts of income and expenditure according to the type of insurance
business, a revenue account in the form prescribed by regulations for the
relevant class or sub-class of insurance business; And
(d) A report specifying the names and contact details of the persons
engaged in the management of the insurance at that time and all the
information relating to the business activities of the said persons.
(2) In the case of a company under the Insurer Companies Act, by the
chairman, two directors and chief executive officer of the company, or in
the case of a co-operative society under the Insurer Co-operative
Societies Act, by two of its members, the statement, profit and loss
account under sub-section (1) , revenue accounts and reports should be
signed
 (3) Every insurer shall maintain separate accounts relating to the funds of
its shareholders and policy customers in accordance with the regulations.

নিরীক্ষা৷ 28 (1) The articles of association, profit and loss account, revenue
account of any insurance business conducted and transacted in
Bangladesh under this Act shall be audited by one or more auditors every
year, unless subject to audit under the Companies Act.
(2) An auditor appointed under this section shall be entitled to exercise the
powers and functions of an auditor under section 213 of the Companies
Act.

Special 29 (1) Notwithstanding anything contained in any other provision of this

inspection Act, the Authority may cause to be audited by one or more auditors, from
time to time, in the manner prescribed by regulation, of all insurance
transactions, records, documents of any or all insurance companies
carrying on insurance business in Bangladesh:
Provided that the auditor appointed to audit the accounts of any year
under this section and the auditor appointed under section 28 shall not be
the same person.
(2) The auditor appointed under this section may inspect all records,
account books, registers, vouchers, papers and all other documents
relating to the insurance business of the insurer and for this purpose may
hear the statement of any director, officer and employee of the insurer and
may request any information from the insurer. You can summon relevant
documents and information
(3) The auditor appointed under this section shall prepare an audit report
and submit 4 (four) copies of the said report to the authority within a
maximum of 4 (four) months after receiving the appointment.
(4) The auditor appointed under this section shall receive from the insurer
such fee as may be determined by the authority.

Actuarial 30 (1) Every insurer carrying on life insurance business shall, at least
reports and once in a year, in the manner prescribed by the regulations, have the
summaries financial condition of the life insurance business carried on by him,
including the assessment of his liabilities, inquired by an actuary and a
summary of the report given by the actuary in the tables and manner
prescribed in the regulations shall prepare a summary of the inquiry work:
Provided that the Authority may, having regard to the special
circumstances of an insurer, permit him to make an inquiry under this
section at any date within 2 (two) years of the previous inquiry.
(2) The provision of summarization under sub-section (1) shall also apply
in the case where the results of the investigation or the results of the
investigation are made public at any time conducted by the insurer to
determine the financial condition for the purpose of distribution of any
profit.
 (3) A certificate signed by the principal executive officer of the insurer to
the effect that a full and accurate statement of each policy containing the
actual and potential liability of the insurer has been supplied to the auditor
for the purpose of inquiry shall be annexed to every summary made under
this section.
(4) Each summary shall be accompanied by a statement of the life
insurance business of the insurer as at the date on which the account-
based summary is to be prepared in accordance with the regulations:
Provided, however, that if the inquiry referred to in sub-section (1) and
sub-section (2) is made by the insurer on an annual basis, the said
statement shall be included as an appendix once in every 3 (three) years
instead of every year.
(5) If the financial condition of an insurer is not ascertained on the date of
closing of the accounting year, in that case, the accounts for the period
subsequent to the closing of the previous accounting year and the date of
inquiry shall be prepared and the same shall be audited in accordance
with the provisions of this Act.
(6) The provisions of this section relating to life insurance shall also apply
to accident and health insurance:
Provided that if the Authority considers that the number and volume of
health insurance business transacted by an insurer is very small, the
Authority may exempt the concerned insurer from the provisions relating
to health insurance under this sub-section.
(7) The assessment of the liability under sub-section (1) shall be made in
such manner and on such basis that the actuarial reserve calculated
thereby is not less than the actuarial reserve calculated in the manner and
basis prescribed by the regulations.

Policy and 31 Every insurer shall maintain a register in the manner prescribed by
Claims regulations of all policies and claims relating to insurance business
Register transacted in Bangladesh.

Filing of 32 (1) The accounts, statements, etc. under section 27 and the audited
returns accounts, summaries and statements of liability-valuation reports under
section 30 shall be printed and submitted to the authority in the form of a
four-page return, section 27 and sub-section (5) of section 30 ) within 6
(six) months of the end of the accounting year in the case of accounts and
statements under this and within 9 (nine) months in the case of liability
assessment reports, summaries and statements under section 30:
Provided that the period of 6 (six) months mentioned above shall be
extended in the case of insurers whose head office of business or
permanent residence is outside Bangladesh and insurers who are formed,
incorporated and domiciled in Bangladesh but carry on insurance
business outside Bangladesh. Can be extended up to 3 (three) months:
 Provided further that the Authority may, if necessary, extend the period
for filing returns provided in this sub-section by not more than 1 (one)
month.
(2) Out of 4 (four) returns filed under this section, 1 (one) in the case of a
company, by its chairman and 2 (two) directors and the chief executive
officer of the company and if there is a managing director of the company,
by that director. , in the case of a cooperative society, shall be signed by 2
(two) members thereof; and 1 (one) shall be signed by the auditor
conducting the breadth audit, or, as the case may be, by the actuary
conducting the valuation.
(3) If the principal place of business or permanent residence of the insurer
is outside Bangladesh, the insurer shall send the statement of accounts,
profit and loss account and revenue account and valuation report and
statement, if any, together with the documents mentioned in section 27, to
the authority responsible for the formation, incorporation of the insurer. or
permanently resident, or, in cases where such documents are not
required, to file at the end of the term a certified statement showing the
total assets and liabilities and the total income and expenditure of the
insurer as included in the said documents for that term. shall be
1
[(4) Notwithstanding anything contained in this Act,an insurer established
as a ``public interest body'' as defined in section 2(8) of theFinancial
Reporting Act, 2015Submitting necessary documents to the authorities
including the auditor's report prepared in accordance with the standards.
(5) The said authority shall not accept any annual report unless it is
submitted with the report of a registered auditor.]

Exemption 33. Unless inconsistent with the Companies Act, where an insurer
from incorporated as a company under the Companies Act or any law repealed
certain thereby files its articles of association and accounts in any year in
provisions accordance with the provisions of section 32, the insurer shall at the same
of the time send a copy of the said articles of association and accounts to the
Companies Registrar of Companies. and if such copies have been sent, it shall not be
Act necessary to file with the Registrar a copy of its articles of incorporation
and accounts as required by the Companies Act, and the same fee shall
be leviable for similar copies previously sent, and in all respects such
proceedings shall be taken as if the said articles of incorporation and
accounts were in accordance with the aforesaid clause. has been filed
accordingly.

Report 34 Every insurer shall file with the Authority a certified copy of the report
submitted on insurance business operations immediately after furnishing the same
to the shareholders or policyholders.

Summary 35 Every insurer shall submit to the Authority within 30 (thirty) days of the
of Annual holding of the meeting a certified copy of the minutes of the annual
General general meeting recorded in its minutes book.
Meeting
Proceedings

Preservation 36 (1) The Authority shall keep in custody a certified copy of every return
and and statement thereof filed with it, which shall be open to inspection and
inspection any person may collect a copy of such return or part thereof on payment
of of such fee as may be prescribed by the Authority.
documents (2) If the application is made within 2 (two) years from the submission of
and supply the printed or certified copy of the accounts, statements and summary
of copies submitted as per the provisions of section 32, the insurer incorporated,
registered and resident in Bangladesh within 14 (fourteen) days of the
said application and in the case of other insurers 1 ( Within a) month, the
Insurer shall provide any Shareholder or Insurance Policy to the
Customer.
(3) The insurer, if a company, shall, on application to any insurance
policyholder and subject to payment of such fee as may be prescribed by
the Authority, furnish to him a copy of its memorandum and articles of
association within 15 (fifteen) days of the application.

Powers of 37 (1) If it appears to the Authority that any return sent to it under the
authorities provisions of this Act is incorrect or defective in any respect, the Authority
in respect shall—
of returns (a) may direct the insurer to send certified additional information as may
be considered necessary by the auditor or actuary for correcting or
supplementing such return;
(b) may direct any books of account, register or other document of the
insurer to be filed for audit at the principal place of business of the insurer
in Bangladesh or to supply the particulars specified in the notice given to
the insurer for this purpose;
(c) may inquire of any officer of the insurer about the return;
(d) The Insurer may refuse to accept such return if the defect in the
information is not rectified or the incompleteness is filled before the expiry
of 1 (one) month after the date of the demand letter for rectification of the
defective information or removal of the incompleteness in the return.
(2) If the authority under clause (d) of sub-section (1) refuses to accept
any return, the insurer shall be deemed to have failed to file the return in
accordance with the provisions of section 32.

Power of 38 (1) If it appears to the Authority that any inquiry or assessment report
authority to under section 30 does not properly reflect the state of affairs of the insurer
order due to faulty procedure followed, it may, after giving notice to the insurer
reassessment and giving him an opportunity to make representations, order re-inquiry
and re-assessment. ; The said valuation shall be completed by an actuary
appointed by the insurer and approved by the authority within the date
 fixed by the authority and at the insurer's own expense and the insurer
shall provide to the said actuary all the materials necessary for the
investigation and valuation by the actuary within a period of not more than
3 (three) months as fixed by the authority.
(2) The provisions of sub-sections (1) and (3) of section 30 and sub-
sections (1) and (2) of section 32 shall apply to the inquiry and
assessment under this section:
Provided that the report and summary of such inquiry and assessment
shall be submitted to the Authority within the date fixed by the Authority.

Documentary 39 (1) Every return submitted to the authority shall be deemed to be a

evidence return if it is certified as a return by the authority.
(2) If the return filed under sub-section (1) is certified as a return by the
authority, every document included therein shall be deemed to be a copy
of the return filed and unless any difference is proved between it and the
original return, the copy shall be accepted as evidence of the original
return.

The returns 40 Any insurer -

are (a) shall not give or make any estimate, illustration, circular or statement
disclosed misrepresenting the terms of the policy as to any policy issued or any
in the policy to be issued or any benefits or bonuses promised therein, dividends
statutory to shareholders or receipt of surplus thereon; or shall not make false or
tables misleading statements as to bonuses, dividends or shares of surplus
previously paid to shareholders, or make any misleading or erroneous
statement of the financial condition of the insurer or name or name of any
insurer with intent to mislead the true nature of any policy or any class of
policies; shall not use the term name or the name or term name of any
insurance policy or any class of insurance policy or give misleading
information in such a manner as to induce or be liable to induce the
policyholder of any company to cancel, forfeit or surrender such policy;
And
(b) make, publish, distribute, promote, publish in public or direct to the
press any advertisement, announcement or statement about any person
engaged in the business of insurance which is false, untrue, deceptive,
misleading or prejudicial to the conduct of the business of any person
engaged in the business of insurance. shall not advertise or promote in
magazines or other publications or by means of notices, circulars, leaflets,
posters or in any other manner:
Provided that nothing in this section shall prevent the Insurer from
disclosing the forms of returns filed with the Authority for publicity
purposes or from disclosing a true and accurate summary or any other
informational particulars of such returns filed.
Asset 41. (1) Every insurer shall invest and deposit its assets in such manner
investment and at such place as may be prescribed by regulation and the Authority
shall have power to regulate such investment:
Provided that no investment shall be permitted in the first capital issue
of any company, firm or any other business entity having any interest in
any director or family member of such director as proprietor, partner,
director, manager or managing agent of any insurer.
(2) Every insurer shall submit to the Authority the return of investment
referred to in sub-section (1) in the manner prescribed by regulations.

Subsidiary 42. (1) The Authority shall, in the interests of the development and
Company improvement of the insurance business in Bangladesh or, if it deems it in
the public interest or expedient, authorize any insurer to form one or more
subsidiary companies for carrying on the insurance business.
(2) Notwithstanding the provisions of sub-section (1), an insurer may hold
shares in any company to such extent as may be prescribed by
regulations.

Solvency Margin, Credit and Management

Conditions 43. (1) Every insurer shall maintain solvency margin for its insurance
to be business in the amount and manner prescribed by the regulations.
fulfilled (2) If any insurer fails to maintain the solvency margin prescribed under
regarding sub-section (1) at any time, the said insurer shall, within a period not
solvency exceeding 3 (three) months from the date of issuance of such directions in
margin accordance with the instructions issued by the Authority in this regard,
make up the said deficiency a The action plan will be submitted to the
authorities.
(3) If the work plan submitted as per sub-section (2) is considered
insufficient by the authority, the insurer shall revise the said plan and
implement the plan approved by the authority.
(4) Any insurer may inspect or verify liabilities and assets and collect other
necessary information to check whether the solvency margin prescribed
by the Authority has been met or not and the insurer shall be bound to
comply with any instructions issued by the Authority in this regard and the
insurer shall receive the instructions of the Authority. Within two (2)
months, if the insurer fails to comply with the said instructions, the
concerned insurer shall be deemed to have failed to maintain the
prescribed solvency margin and in such case action shall be taken as per
the provisions of Section 95 of this Act.
(5) Every insurer carrying on life insurance business shall submit to the
Authority in the manner prescribed by regulations a statement of the
prescribed solvency margin maintained by the insurer in respect of life
insurance, certified by an actuary.
 (6) Every insurer carrying on non-life insurance business shall submit to
the Authority in the manner prescribed by regulations a statement of the
prescribed solvency margin maintained by the insurer in respect of non-
life insurance, certified by an authorized auditor.

Restrictions 44 (1) No insurer shall grant any advance, loan or financial facility on the
on granting security of its own shares.
loans, (2) No insurer shall make any loan or temporary advance to any of its
advances directors, managers, actuaries, auditors or officers or any member of their
and families by way of mortgage of property or personal guarantee or
financial otherwise, except a loan limited to the surrender value of the life
facilities insurance policy issued by the insurer.
(3) any insurer without the permission of its board of directors and the
approval of the authority of any of its directors, managing actuary, auditor
or officer or any member of the family of such director, manager, actuary,
auditor or officer as owner, partner, director or managing agent of any firm
or having interest in No loans or temporary advances shall be made to the
Company.
(4) At the meeting held for consideration of any loan or advance referred
to in sub-section (2), the director of the borrower concerned shall not
participate in voting or any other proceedings of the meeting.
(5) If any event occurs which, at the time of granting a loan or advance
sanction, the existence of which such loan or advance sanction would
have been in contravention of sub-section (1) or (2), then, notwithstanding
any agreement to the contrary, the said loan or advance sanction The
advance shall be repaid within 3 (three) months of the occurrence of the
said event and otherwise, without prejudice to any other applicable
penalty, the director, manager, actuary, auditor or officer concerned after
the expiry of the said 3 (three) months of the insurer making the loan or
advance. Don't stay at work
(6) Nothing in sub-section (1) or (2) shall apply to loans or advances
made by a bank company or any subsidiary company as insurer or
subsidiary insurer of any insurer providing loans and advances.
(7) Nothing in sub-section (1) shall apply to scholarships granted to
insurance agents, brokers or agent recruiters undergoing training in any
training course approved by the Authority.
(8) The provisions of the Companies Act shall not apply to a loan given to
a director of an insurance company, if the said loan is made on the policy
collateral of an insurer bearing the risk of an insurance policy issued on
the life of the director and the loan given is limited to the surrender value
of the policy.
(9) Subject to the provisions of sub-section (1), no insurer shall grant any
loan or temporary advance to any of its officers, employees, insurance
agents, brokers or appointing agents except in the following cases:-
(a) Loans limited to surrender value on life insurance policies issued by
the insurer in the name of officers, employees, insurance agents or
brokers or appointing agents;
(b) Loans on mortgage of immovable property, provided that—
(b) if the insurer carries on life insurance business, the Authority certifies
that it has complied with all the provisions of this Act;
(a) the value of the property is twice the minimum loan amount;
(e) the property is situated in a similar town notified for this purpose;
(e) if the loan is for the purpose of building a house, the loan is disbursed
in installments as decided by the Board of Directors of the insurer;
(f) the loan is subject to a maximum repayment period of 15 (fifteen)
years; or
(v) the amount of the loan is such that the interest and actual installments
thereof do not exceed one-fourth of the principal salary of an officer or
employee in a year or, as the case may be, one-fourth of the renewal
commission or additional commission of an agent, broker or agent
appointing an agent;
(c) a loan to any officer, employee, insurance agent or agent appointee for
purchase of vehicle, provided that -
(b) the officer, employee, insurance agent or appointing agent has
continuously worked under the insurer for a similar period as determined
by the board of directors of the insurer;
(a) the purchased vehicle is mortgaged to the insurer;
(e) such additional amount or schedule of repayment as may be
determined by the Board of Directors of the Debt Insurer as per other
terms and conditions;
Provided that the aggregate amount of loan under sub-clause (e) and
clause (c) of clause (b) of this sub-section shall be 10 (ten) percent of the
net profit of the previous year after payment of income tax in the case of
non-life insurance insurer. shall not be more;
Provided further that the 10 per cent loan amount mentioned in the
first clause shall in no case exceed 20 per cent of the paid-up capital of
the insurer;
(d) in respect of payment of temporary advance to any officer, employee,
insurance agent or employer of insurance agents -
(b) in the case of an officer or employee, the equivalent of not more than 4
(four) months' salary;
(a) in the case of an insurance agent, the renewal commission earned by
him during the previous 2 (two) years on the date of application for
advance and the amount not exceeding the prescribed amount if no
commission has been earned;
 (e) in the case of an agent appointee, the renewal commission and over-
riding renewal commission earned by him in the year immediately
preceding the date of application for advance, or a sum not less than the
prescribed amount if the said renewal commission and over-riding
renewal commission have not been earned;
Provided that the temporary advance mentioned in this clause shall
not at any time exceed the prescribed percentage of life insurance fund of
the insurer in connection with the conduct of life insurance business and
the maximum figure prescribed in other cases.

Liability of 45 Any director, manager or officer knowingly involved in such violation

directors shall, without prejudice to any other penalty applicable under this Act, be
and others individually or jointly liable for any loss caused to the insurer or the
for policyholders due to any violation of the provisions of Section 44.
damages

Method of 46 No asset of the Insurer shall be held in the name of any organization
preservation and in any form other than under the direct control of the Insurer, other
of insurer's than the collateral held in Bangladesh Bank under Section 23 or Section
assets 119 and any deposit held in the custody of any Scheduled Bank.

Restrictions 47 No insurer shall after the commencement of this Act appoint a

on managing agent to carry on its business
appointment
of
managing
agent

Investigation, instruction, etc

Investigation 48 (1) The Authority may initiate an investigation into the whole or part of
of Insurer's the business carried on by an insurer registered under this Act, if it
Proceedings appears that—
(a) the insurer is unable or likely to be unable to pay its liabilities;
(b) the insurer has failed to comply with any provision of this Act relating
to insurance funds;
(c) the insurer fails to file the required particulars fully and satisfactorily
within 1 (one) month of the receipt of the notice given under section 49;
(d) the insurer fails to comply with any of the provisions of sections 27, 30,
41, 43, and 44;
(e) the cost of the insurer's insurance business or any class of insurance
business incurred, maintained or carried on is unreasonably greater than
its insurance premium income;
(f) proper procedure has not been adopted by the insurer in allocating the
expenditure or any particular category of expenditure between the
insurance fund and other funds; or
(g) any information in the possession of the authorities which necessitates
such investigation
(2) Before commencing any inquiry under this section, the Authority shall
issue a notice to the insurer to the effect that the insurer shall not in any
case transfer any property vested in or due to him without the prior written
permission of the Authority before the completion of the inquiry under this
section.
Explanation.- Assets for the purpose of this section include, but are not
limited to, the following assets -
(a) immovable property, namely any land, building and property attached
thereto;
(b) movable property, namely, any furniture, machinery, books, periodicals
and any other movable objects, any motor vehicles, ships, ships, aircraft
and any other form of vehicles;
(c) Investments, namely any securities of the State or local Government
or any other securities authorized by the Government or competent
authority.
(d) other investments, namely stocks, shares, bonds, debentures, mutual
funds or other investments whose prices are quoted on the stock
exchange or whose prices are not quoted;
(e) cash, namely money deposited with a bank or lending institution or
any other body or agency, including cash of ascertainable value;
(f) other assets, namely: any outstanding premiums, commissions and
debts owed or payable, advances, securities, deposits and sureties and
contractual or receivable assets in favor of or vested in the insurer.
(3) The Authority may conduct such inquiry itself or may direct the
investigator appointed under sub-section (4) to conduct such inquiry and
submit to it the result of the inquiry in the form of a report within seven (7)
working days.
(4) The Authority may appoint an auditor, an actuary or any other suitable
person as an investigator under this section, other than the auditor
preparing the accounts and statement of accounts and other statements
of the insurer under section 27, and all expenses of such investigation
shall be paid by the insurer.
(5) The authority or investigator for conducting an investigation under this
section shall—
(a) the insurer or any person acting on behalf of the insurer;
(b) any director, actuary, auditor, officer, employee or agent of the insurer
who is or has at any time been a director or acted as a director; or
(c) any past or present participant of the insurer,
 Any books, accounts, records or other documents relating to
investigations kept in Bangladesh or outside Bangladesh, including
documents evidencing the insurer's title to any asset, may direct the
production or use thereof or the preparation of full or partial copies
thereof;
Provided, however, that the provisions of this clause shall apply only
to the title deeds of the insurer relating to the business carried on by the
insurer in Bangladesh or similar business.
(6) The authority or the investigator may order the person or persons
referred to in sub-section (5) to appear before him for the purpose of
carrying out the investigation under this section and may make
statements and question him about the business of the insurer.
(7) If the Authority, after receiving a report under this section and giving
the insurer a reasonable opportunity of making representations about the
report, considers it appropriate—
(a) direct the insurer to take effective action on any matter mentioned in
the report; or
(b) cancel the registration of the insurer; or
(c) direct any person to apply to the Court for the termination of the
insurer, whether or not the registration has been canceled under clause
(b).
(8) The Authority may, subject to giving reasonable notice to the insurer,
publish the report or any part of the report of the inquiry filed by the
Authority or the investigator under this section if it considers it necessary.
(9) No suit or question shall lie in any court against any order made under
this section other than an order made under clause (b) of sub-section (7).
(10) Where any person directed under sub-section (5) or sub-section (6)
refuses or fails to produce any document in his custody or under his
authority or to appear before or to be examined by the authority or the
investigator, the authority or the investigator shall That denial can be
recorded and certified in court; and the Court may then inquire into the
matter and after hearing the evidence produced for and against the
accused person and after hearing any evidence adduced in support of the
accused person, may punish the guilty person for contempt of court.

Power of 49 (1) The Authority may, from time to time, inspect the books, accounts
inspection and transactions of any insurer or its branch office.
and (2) The insurer shall exhibit its books, accounts and documents to the
information inspector and provide all necessary information and facilities for carrying
sought by out the inspection under sub-section (1).
authorities, (3) The Authority may, for the purpose of carrying out the purposes of this
etc. Act, by notice in writing to any director or officer or representative of the
insurer in relation to the business of that insurer in Bangladesh or outside
 Bangladesh, in the manner prescribed by regulations, and, if necessary, at
the place and time specified in the notice by written notice. -
(a) to provide any information, or
(b) may order him to appear before him
(4) Any person who refuses to conduct an inspection under sub-section
(1) or contravenes any of the provisions of sub-section (2) or fails to
comply with any requirement of the authority under sub-section (3) shall
be liable to be charged and If the criminal is found guilty, he will be fined
up to 5 (five) lakh taka and if the crime continues, he will be fined an
additional 5 (five) thousand taka for each day.

Power of 50 (1) If the Authority is satisfied that the activities of any insurer are
authority to prejudicial to the public interest, to the interest of the policyholder or to the
issue interest of the insurer, the Authority may issue necessary directions to the
directions insurer, in particular, to take the following actions, namely-
to insurer (a) to take any measures necessary for the conduct of the insurance
business of the insurer in accordance with the provisions of this Act or to
employ such qualified personnel in the management;
(b) if the Authority has reason to believe that the Chairman, any director,
adviser, chief executive officer, by whatever name so called, has
contravened the provisions of any law by virtue of his office and such
contravention is of such a nature that they together with the insurer The
involvement may be prejudicial to the interests of the insurer or the
policyholder or contrary to the interest or prejudicial or otherwise
undesirable, but to remove them from their respective positions after
giving them an opportunity to defend themselves;
Provided that if in the opinion of the Authority any delay would be
prejudicial to the insurer or its policyholder, the Authority may, at the time
of giving the opportunity to defend or at any time thereafter during the
pendency of the said defense application, if made, pass such order that ,
the concerned Director Chief Executive Officer, as applicable, from the
date of such order -
(b) the insurer shall not act as such director or chief executive officer;
(a) not directly or indirectly engage in or participate in the management of
the insurer;
(c) the insurer shall not take any action to dispose of or recover the
assets;
(d) not take action for the recovery by the insurer of any such sum
appearing to the authorities to have been paid illegally or wrongfully;
(e) refrain from issuing new policies or renewing policies in respect of the
business of the class of insurance mentioned in the order
(2) The Authority may revoke or modify any direction made under sub-
section (1) and impose such conditions as it thinks necessary on such
 revocation or modification.
(3) Every insurer shall, subject to the fulfillment of such conditions as may
be imposed, comply with any direction given under sub-section (1) or any
such revised direction given under sub-section (2).

Power of 51 The Authority may, during or after the completion of a special audit
authority to investigation conducted under this Act, by order in writing and such
direct conditions as may be specified therein, direct the performance of the
meetings of following functions, namely-
directors of (a) convening a meeting of the Board of Directors for the purpose of
insurers, discussing any matter relating to or arising out of the affairs of the insurer;
etc (b) discussion with the chief executive officer of the insurer or any of his
officers on any matter;
(c) permit the officer deputed for the purpose of observing and presenting
the proceedings of the board of directors of the insurer or any committee
or any committee or association constituted by the insurer and direct such
officer to be given a copy of the minutes of such meeting;
(d) permit any officer employed or appointed for a specified period or for
such period as may be extended from time to time, for the purpose of
observing how the operations of the insurer or any of its offices or
branches are being carried on;
(e) to make such changes in the management of the insurer as may be
necessary in the opinion of the Authority within such period as may be
specified in the direction and for the purpose of bringing the operations of
the insurer into proper condition.

Amalgamation and Transfer of Insurance Business

Amalgamation 52 (1) Notwithstanding anything contained in the Companies Act or the

and Association of Insurers, the following provisions shall apply to
Transfer of amalgamation and transfer of life insurance business, namely-
Life (a) the life insurance business of any insurer registered outside
Insurance Bangladesh shall not be amalgamated with any person or any other
Business insurer without the permission of the scheme and authority made under
this section;
(b) the terms and conditions on which the transfer or amalgamation is
proposed to be carried out shall be detailed in the scheme drawn up for
the purpose. Provisions necessary for implementation of the plan shall
also include;
(c) At least 2 (two) months prior to applying to the Authority for approval of
the transfer or amalgamation, a letter of intent stating the nature and
reasons for the transfer or amalgamation and 4 (four) attested copies of
each of the following documents shall be submitted to the Authority. shall
be made and 2 (two) other copies of the same shall be kept at the head
 offices, branch offices and agencies of the respective insurers for the
information of the public and policyholders, namely:-
(b) draft deed of proposed amalgamation or transfer;
(a) the insurance business status of the insurers concerned in the
amalgamation or transfer prepared in accordance with the provisions of
the Schedule and Regulations prescribed by the Authority;
(e) actuarial reports and summaries of each of the respective insurers
prepared in accordance with the requirements prescribed by the Authority
and the regulations made by it;
(e) a report on the proposed amalgamation or transfer by an impartial
actuary who has not been professionally involved with the insurer
concerned in the amalgamation or transfer at any time during the 5 (five)
years preceding the signing of the actuarial report; And
(g) any other report relating to the basis of amalgamation or transfer
(2) The status papers, reports and summaries referred to in clause (c) of
sub-section (1), if approved by the Authority, shall be on the date from
which the amalgamation or transfer takes effect; And the date of
preparation of the certificate shall not be more than 12 (times) months
before the date of application to the authority under this section:
Provided that, if the Authority so directs, in respect of any particular
insurer, the status papers, reports and summaries referred to in sub-
clauses (a) and (e) of clause (c) of sub-section (1) respectively prepared
in accordance with the provisions of this Act. Certified copies of the
charter, report and summary shall be substituted if the charter was
prepared within 1 (one) year and the report and summary within 5 (five)
years preceding the date of application under this section.

Authority 53 (1) If any application is made to the authority under clause (c) of sub-
approval in section (1) of section 52, the authority shall direct for any particular reason
case of the notice of application to be sent to every life insurance policy
amalgamation subscriber of the concerned insurer located in Bangladesh and the nature
and and conditions of the amalgamation or transfer. , may direct disclosure in
transfer such manner and for such time as may be prescribed and if, after hearing
the statements of directors and policyholders who wish to be heard and
other persons entitled to be heard, that the objection to the amalgamation
or transfer is not admissible, section 23 or section 119 shall issue an order
for the implementation of the proposed measures including any security
given under s
Provided that,-
(a) no part of the deposit paid by any party in connection with the
amalgamation or transfer shall, after the implementation of the proposed
arrangement, be refunded to the person carrying on the amalgamated
insurance business or to whom the said business has been transferred
before such full deposit has been paid;
 (b) after completion of the deposit referred to in clause (a) only the
unclaimed deposit shall be refunded; And
(c) if the deposit referred to in clause (a) is not completed, the deposit
made by the person carrying on the consolidated insurance business
under this arrangement or to whom the insurance business has been
transferred shall be credited or adjusted as a deposit payable later under
section 23 or section 119 or any installment thereof. Will not go
(2) If the transfer or amalgamation arrangement involves a reduction in
the amount of insurance and any other agreement of any or all insurers
concerned by the transferor, or the amalgamation of insurers, the
Authority may approve the arrangement containing such reduction
agreement subject to such conditions as the Authority may deem fit and
the reduction of the agreement so approved by the Authority shall be
valid. shall be considered and shall be observed by all concerned parties

Statements 54 In case two or more insurers have been amalgamated or the insurance
required business of the insurer has been transferred under a plan approved by
after the Authority or otherwise, the operator of the amalgamated insurance
amalgamation business or to whom the insurance business has been transferred, as the
and case may be, within 3 (three) months of the completion of the
transfer amalgamation or transfer of said insurer. shall submit to the Authority 2
(two) copies of the following documents, namely:-
(a) certified copy of the scheme or agreement or deed under which the
amalgamation or transfer has been effected;
(b) in respect of all parties or companies concerned, a declaration signed
by the Chairman and Chief Executive Officer to the effect that all moneys,
policies, bonds, valuable securities and other property which, in their
belief, have been or will be paid to any person by reason of the
amalgamation or transfer; has been made and no other payment has
been made or will be made in addition to the inclusion; And
(c) in cases where the process of amalgamation or transfer is not carried
out subject to the approval of the authority under section 53,-
(b) the insurance business status of each insurer concerned in the
amalgamation or transfer prepared in the Schedule prescribed by the
regulations; And
(a) Certified copy of any other report based on the scheme of
amalgamation or transfer

Power of 55 (1) In respect of non-life insurance business if the Authority is satisfied

Authority in that,-
preparation (a) in the public interest; or
of Non-Life (b) in the interest of the insured; or
Amalgamation
(c) with a view to ensuring the proper management of the insurer; or
Plan
(d) in the interests of insurance business throughout the country,
 If the amalgamation of any insurer with any other insurer is necessary,
the Authority may prepare a plan for such amalgamation:
Provided, however, that no such plan shall be prepared without the
consent of the other insurer in writing
(2) The aforesaid scheme may include all or any of the following matters,
namely-
(a) the composition, name and registered office address, capital, assets,
cash, powers, rights, interests, authority and privileges and liabilities,
responsibilities and obligations of the transferee insurer;
(b) the conditions specified in the scheme by the Authority for the transfer
of business, property, assets and liabilities in favor of the transferee
insurer;
(c) any change or transfer in the Board of Directors, appointment of a new
Board of Directors of the Consumer Insurer, appointment of the Board of
Directors or any director appointing authority and appointment process
and term of appointment;
(d) alteration of the memorandum and articles of association of the
transferring customer insurer for the purpose of effecting the
amalgamation or for any other necessary reason;
(e) the continuation of any pending action or proceeding instituted by or
against the transferee insurer subject to the provisions of the scheme;
(f) reducing or altering the interests and rights of pre-amalgamation
shareholders, policyholders or other creditors in the insurer and the
interests and rights of the insurer to them in the public interest or in the
interests of shareholders, policyholders and other creditors or for the
purpose of preserving the business of the insurer;
(g) payment in cash or otherwise in full of claims of insurance
policyholders or other creditors as follows;
(b) their interests or rights for and against the insurers prior to the merger;
(a) if any interest or right in favor of and against them has been reduced in
accordance with clause (f) such reduced interest or right;
(h) whether or not the interest or right of the insurer under clause (f) is
reduced or not; allotment of shares of the customer insurer transferred in
lieu of their shares held by the shareholders before the amalgamation; if
any shareholder prefers to settle his claim in cash in lieu of allotment of
shares, or if allotment of shares is not possible; Payment of their claims in
cash as follows, namely :-
(b) due to the insurers in respect of their shares before the amalgamation;
(a) if their interest or right has been reduced in accordance with clause (f)
such reduced interest or right;
(j) to retain in the service of the transferee insurer all the officers and
employees of the insurer with the emoluments and allowances received
immediately before the amalgamation and the conditions of service
unchanged;
Provided, however, that the Scheme shall provide that, within 3 (three)
years of the completion of the amalgamation of the transferee insurer, the
said officers or employees shall be equivalent in the service of the
transferee insurer, subject to the same or equivalent educational
qualification and experience of the officers or employees employed by the
transferee insurer. Will provide equal salary allowances and terms of
service to those employed in the post:
Provided further that if there is any doubt or disagreement as to
whether the educational qualification and experience of any officer or
employee of the transferee insurer is equivalent to the educational
qualification and experience of an officer or employee of similar rank or
status of the transferee insurer or not, then the matter shall be referred to
the authority and the authority shall The decision shall be final in this
matter;
(j) any other terms of incorporation of the insurer;
(k) all incidental, consequential and supplementary matters necessary for
the purpose of effecting the completion and consummation of the Merger;
(3) According to this section—
(a) a draft copy of the scheme prepared by the Authority shall be sent to
the insurer and the transferee insurer and any other insurer concerned in
the amalgamation for suggestions or objections, if any;
(b) The Authority may, in the light of suggestions or objections received
from the insurer, the transferee insurer and any other insurer concerned in
the amalgamation, and the shareholders, policy subscribers or creditors of
each of the above insurers, modify the draft as it deems necessary.
(4) The scheme shall be submitted to the Government for approval in
accordance with this section; The Government may approve the same
without any modification or, if it thinks necessary, with modifications; The
scheme approved by the Government shall come into force on the date
fixed by it:
Provided that different dates may be fixed for implementation of
different provisions in the scheme
(5) The approval given by the Government under sub-section (4) shall be
deemed to be conclusive evidence that all the provisions under this
section have been complied with for the amalgamation; and a copy of the
plan certified in writing by a public officer shall be admissible in evidence
in all legal proceedings (appeal or otherwise) in the same manner as the
original plan.
(6) The Government may make additions, amendments or changes in the
scheme made under this section accordingly.
 (7) On the date on which this Plan or any section hereof comes into force
and from that date the provisions of this Plan shall apply to the Insurer, or
as the case may be, the Transferee Insurer and any other insurer involved
in the amalgamation process and the shareholders and other creditors of
each of the said Insurer and the Transferee Insurer. and shall be binding
on the employee and all persons having any right or liability on the said
insurer or transferee insurer.
(8) On and from the date fixed by the Government, the property and
assets of the insurer shall be transferred and vested in favor of the
transferee insurer in accordance with the plan and in accordance with its
provisions, and the liability of the insurer shall be transferred in its
specified amount in favor of the transferee insurer in accordance with the
plan and in accordance with its provisions and The transferee shall
become the liability of the Insurer
(9) If any difficulty arises in carrying out the provisions of the scheme, the
Government may take any measures or issue such order as may be
necessary and expedient not inconsistent with the said provisions for the
purpose of removing the said difficulty.
(10) Nothing in this section shall prevent consolidation of several insurers
into one insurer by a single scheme.
(11) The provisions of this section and any scheme made thereunder shall
remain in force notwithstanding anything contained in any other provision
of this Act or in any other existing law or in any agreement or deed or
other instrument.
(12) The provisions of section 54 shall not apply to the execution of
amalgamation in accordance with the provisions of this section.

Assignment and Nomination of Policy

Assignment 56 (1) Assignment and transfer of title to a life insurance policy shall
and be made only by paging on the policy or by a separate instrument
Transfer of specifically stating the assignment and transfer signed by the
Life assignee or assignee or a duly authorized or accredited agent and
Insurance attested by at least one witness.
Policy
(2) such transfer or assignment shall be complete and effective by the
pagination and due attestation of the said instrument; But if such
transfer or assignment is in favor of the insurer, it shall not be
effective against any insurer; of such transfer or assignment of title by
notice in writing and unless such paging or document or a copy
thereof certified as true by both the transferor and the transferee and
delivered to the insurer, the transferor and the transferee or his lawful
agent shall be entitled to the amount due or settled under such policy.
Can't sue for:
 Provided, however, that if the insurer has more than one office in
Bangladesh, the above-mentioned notice shall be delivered to the
office or head office mentioned in the policy.

(3) The date of the notice referred to in sub-section (2) for determining
the priority of the claims of persons having different interests in the
policy under the transfer or assignment of title and in the case of
multiple transfers or assignments the priority of the claims of such
documents shall be the delivery of the notice referred to in sub-
section (2). Dates will be determined according to the order

(4) On receipt of the notice referred to in sub-section (2), the insurer

shall record the date of the transfer or assignment of title, together
with the names of the transferor and the transferee, and on the
application of the notice giver or transferee or assignee and subject to
the payment of such notice as may be prescribed by the rules. shall
issue a written acknowledgment of receipt and such acknowledgment
shall be deemed conclusive evidence of receipt of the notice by the
Insurer.

(5) Subject to the conditions of transfer or assignment of title from the

date of receipt of the notice referred to in sub-section (2) of this
section, the person named in the notice as transferee or assignee
shall be the only person entitled to all benefits under the policy and
the transferee or title on the date of transfer or assignment. All liability
and ownership and rights vested in the assignor shall vest in him and
the assignor or assignee may file any suit in respect of the policy
without the consent of the assignor and without making him a party.

(6) There shall be no change in the rights and remedies of the

transferee or assignee under the provisions of this section in the case
of transfer or assignment of any life insurance policy in force before
the introduction of this Act.

(7) Notwithstanding anything to the contrary in any other law, if the

assignment of title in favor of any person is made on such terms that
it shall be void subject to the occurrence of a specified event during
the lifetime of the person to whom the life insurance is granted or the
interest of the insurance policy shall vest in any other person, and
Assignment of property in favor of the surviving heir or heirs of more
than one person shall be valid

(8) A transferee or assignee of any life insurance policy issued by a

mutual insurance company shall not become a member of the said
company merely by reason of such transfer or assignment.
Nomination 57 (1) The policyholder may, at the time of taking the policy on his life
by the or at any time before the maturity of the policy, nominate one or more
customer of persons to receive the sum assured under the policy on his death:
the
insurance Provided that if any nominee is a minor, it shall be lawful to appoint a
person to receive the sum assured by the policy in the manner
policy
prescribed by the policyholder, in the event of the death of the
policyholder during the said minor period.

(2) For any such nomination to be effective, if it is not recorded in the

policy, it shall be made by pagination in the policy and shall be
notified to the insurer in respect of the life insurance and registered in
the records of the insurer and such nomination shall be by pagination
before maturity of the policy liability or may be rescinded or modified,
as the case may be, by another testamentary disposition or by will;
But if notice of such cancellation or variation is not given to the
Insurer, the Insurer shall not be liable for any payment under the
Policy to the nominee in good faith or to a nominee registered on the
Insurer's records.

(3) The insurer shall give to the policyholder a written

acknowledgment of the registration of nomination or cancellation or
change of nomination and may charge the prescribed fee for the
same.

(4) By assignment or transfer of a policy subject to the provisions of

this section, its nomination shall be automatically cancelled:

Provided that no nomination shall be void on account of the insurer

making a loan within the surrender value of the policy security at the
time of assignment of title or re-assignment of title after repayment of
said loan; Only until the debt is paid will the rights of the nominated
person be impaired so far as the interests of the insurer are
concerned:

Provided further that the nomination shall not be void if a loan is

granted within the surrender value of the policy collateral in favor of
anyone other than the insurer taking the title assignment risk; Rather,
the nomination of the re-possession policy will be suspended after
repayment of the loan until the lender's interest in the policy is vested.

(5) Payment of the sum assured by the policy to the insured or his
heirs or legal representatives or heirs if the policy matures for
payment of the policy value during the lifetime of the policyholder or in
the case of a nominee or multiple nominees, all the nominees die
before the maturity of the policy. will be eligible
 (6) In the case of a nominee or several nominees, if the nominees are
alive at the time of the death of the policyholder, the sum assured by
the policy shall be payable to such surviving person or persons.

(7) If the provisions of the Married Women's Property Act, 1874 apply
or have at any time applied to any life insurance policy, the provisions
of this section shall not apply:

Provided that the provisions of sub-section (6) shall not apply where
any person before the coming into force of this Act insures the life of
himself or his wife or children or any of them and makes a nomination
in favor of his wife in the said policy or It shall be considered as not
applicable

Commission, Rebate and Management Expenses

Restrictions 58 (1) No person shall pay or make any agreement to pay any
on the commission or gratuity to any person other than an insurance agent or
payment of agent recruiter or broker for the purpose of acquiring or procuring
commission insurance business in Bangladesh.
or other (2) No person shall pay any renewal commission for the life insurance
remuneration business to an insurance agent, during the term of which his license
for the procured life insurance business has expired, or accept to the insurance
purpose of agent a commission for the business so procured if he fails under section
procuring Not be registered under sub-section (1) of 124
business (3) No agreement shall be made to an insurance agent in respect of life
insurance, in respect of any policy or policies collected by him, of
commission or any other remuneration in excess of the following limits,
namely:-
(a) 35 (thirty-five) percent of the first year's premium;
(b) 10 (ten) percent of the second year's renewal premium; And
(c) 5 (five) percent of the renewal premium in subsequent years:
Provided that life insurance insurers for the first 10 (ten) years of their
business shall pay to their insurance agents 45 (forty five) percent of the
first year's premium of the policy or policies collected through them, 12
(times) percent of the second year's renewal premium and in subsequent
years A commission of 6 (six) percent of the renewal premium may be
paid
(4) For the purposes of sub-section (2), all life insurance business
collected by an insurance agent during the period of his valid licence,
shall be deemed to be business collected by such agent.
(5) An insurance agent shall not pay, or agree to pay, commission or any
other remuneration for any policy not collected in business through him:
 Provided that in case a life insurance policy lapses and cannot be
revived under the terms of the policy without a medical examination of the
insured, the insurer may, within the period specified in the notice, by
giving notice in writing to the insurance agent by whom the policy was
effected, if the agent is acting, which shall be less than 1 (one) month
from the date of receipt of the notice, after giving an opportunity to revive
the policy to another insurance agent who revives the policy,Commission
shall be paid on the outstanding premium (excluding interest on such
premium) and subsequent renewal premiums of the revived policy at the
rate at which the policy was executed by the insurance agent and the
commission would have been paid had it not been cancelled.

Commission 59 (1) No person shall pay or agree to pay to any insurance agent a
Expense commission or any other remuneration in excess of the prescribed
Limit percentage in respect of any life insurance policy in force in Bangladesh
through him and no insurance agent shall accept or agree to receive such
payment:
Provided that this percentage shall not exceed the rate specified in clause
(a) of sub-section (3) of section 58.
(2) No person shall pay or agree to pay to any insurance agent in
Bangladesh any life insurance policy in force in Bangladesh and through
the issuing agent, in excess of the prescribed percentage of commission
or any other remuneration, and no insurance agent appointing or
accepting such payment shall. Will not contract for acceptance
(3) No person shall pay or agree to pay to any insurance agent a
commission or any other remuneration in excess of the prescribed
percentage in respect of any non-life insurance policy issued by him in
force in Bangladesh.
(4) No person shall pay or agree to pay any commission, overriding
commission, or any other remuneration in excess of the prescribed
percentage in respect of any non-life insurance policy issued by the
insurer in Bangladesh and effected by it to any broker.
(5) No insurer shall pay or agree to pay outside Bangladesh any
commission of any kind to any person for carrying on insurance business
in Bangladesh.
(6) If any insurer, insurance agent, recruiting agent and broker
contravenes any of the provisions of sub-sections (1), (2), (3), (4) and (5),
the violator shall be liable to a fine not exceeding 1 (one) lakh for such
contravention. A penalty of Rs
(7) It shall not be deemed a contravention of sub-section (5) for any
insurer registered outside Bangladesh to receive or agree to receive any
commission for reinsurance business carried on in Bangladesh and
outside Bangladesh, provided that all money received outside Bangladesh
is deposited in a manner approved by the Government. is done
Restrictions 60 (1) No person shall pay or offer to pay any rebate of commission or
on grant of part thereof or the premium shown on the policy, directly or indirectly, to
concession induce any person to take, renew or continue any insurance in respect of
any risk to life or property in Bangladesh or The customer or the person
taking, renewing or maintaining the policy cannot accept any discount
other than the discount recognized as per the guidelines or list published
by the insurer:
Provided that if an insurance agent accepts a life insurance policy on
his own life, the commission in respect thereof shall not be deemed to be
a rebate of premium within the meaning of this sub-section, provided that
at the time of accepting the said commission the insurance agent fulfills all
the conditions prescribed. Can establish himself as a bona fide insurance
agent appointed by the insurer
(2) Any person who contravenes the provisions of this section shall be
liable to such fine as may be prescribed by law.

Restrictions 61 (1) Notwithstanding anything to the contrary contained in any contract

on entered into between any person and any insurance agent in which
termination provision is made for forfeiture of the renewal commission or cessation of
of payment of commission by the insurance agent, the life insurance renewal
commission commission relating to life insurance business carried on in Bangladesh
payment by such person shall, without cause of fraud, only be insured. Cannot
refuse to pay renewal commission to agent on termination of contract:
Provided that,-
(a) if the Authority is satisfied and informs the Insurer and the Insurance
Agent that, in view of the condition of the said Insurer, the termination of
the employment of the Insurance Agent for the Insurer is expedient, the
said Insurance Agent shall cease to be employed by the Insurer
concerned; or
(b) Such insurance agent shall receive a renewal commission if he works
as an agent in favor of the insurer continuously and exclusively for at least
3 (three) years and completes his work as an insurance agent of the
insurer after obtaining the prescribed minimum renewal commission.
(2) Any commission due to an insurance agent under the provisions of
sub-section (1) or otherwise, notwithstanding the death of the agent and
the suspension of the agent's license in this Act, the insurance agent's
successors in power for as long as the commission would have been
received had he been alive. The commission shall continue to be received
or it shall be payable in one or more installments in accordance with sub-
section (4):
Provided that no commission shall be paid for the renewal premium
under this section if the commission earned by the insurance agent for the
renewal premium during the 12 (times) months preceding the death is
less than the prescribed amount.
 (3) For the purposes of sub-section (2) an insurance agent may nominate
any person or persons for payment of the commission payable to him
after his death:
Provided that any such nomination shall be notified to the Insurer and
shall be registered in writing and such nomination may be canceled or
amended by the Insurance Agent at any time before his death, provided
that no notice in writing is given to the Insurer of such cancellation or
amendment. He shall not be liable for payment of the same if he pays the
commission due to the nominated person registered by:
Provided further that the Insurer shall send a written acknowledgment
of receipt to the Insurance Agent of any registered nomination or
cancellation or amendment thereof:
Provided further that if the nominee is a minor and dies while a minor,
it shall be lawful for the insurance agent to appoint any other person to
accept the commission.
(4) The commission payable to the heirs of the deceased insurance agent
or his nominee under sub-section (2) shall be paid by the insurer in one
time or several installments as may be mutually agreed upon and may be
paid similarly in other cases.
(5) The insurer may recover the amount due to the insurance agent on the
death of the insurance agent from the commission payable to him in
accordance with the provisions of sub-section (2).
Explanation.- In this section "insurance agent" means agent, agent
recruiter and broker and "commission" means commission payable.

Limitation 62 (1) No insurer shall incur in any calendar year in the life insurance
of business transacted in Bangladesh in excess of the prescribed limit as
Management management expenses including commission expenses or remuneration
Expenses and the size and age of the insurer and the generally made provisions for
in Life management expenses at the premium rate of the insurer shall be taken
Insurance into account in determining such expenditure limit:
Business Provided that the Authority may, on application submitted to it in this
regard, excuse the contravention of this sub-section if the insurer, for
reasonable cause, incurs expenditure in excess of the prescribed limit.
(2) Every insurer carrying on life insurance business in Bangladesh shall
attach as revenue a certificate signed by the chairman and two directors
and the chief executive officer and auditor's certificate to the effect that the
total management expenses incurred by the insurer in relation to its life
insurance business in Bangladesh have been deducted from the said
revenue. There will be confirmation
Explanation.-In this section "management expenses" means total
expenses incurred directly or indirectly and shall include the following
expenses-
(a) payment of all commissions;
 (b) proper share of capitalized expenditure;
(c) In case the principal place of business of the insurer is outside
Bangladesh, the appropriate share of the expenses of the head office
which shall not exceed the prescribed percentage corresponding to the
total net premium income, i.e. the gross direct unwritten premiums
transacted in the life insurance business in Bangladesh during the year
shall not exceed the reinsurance premiums ceded but in Bangladesh. No
part of head office expenses relating to life insurance business transacted
abroad shall be included

Limitation 63. (1) No insurer shall spend in any calendar year any amount in excess
of of the limit prescribed as commission cost or management cost including
Management remuneration in any class of non-life insurance business transacted in
Expenses Bangladesh and the size and age of the insurer shall be considered in the
in Non-Life direction of such cost limit:
Insurance Provided that the Authority may, on an application made to it in this
Business regard, excuse the contravention of this sub-section if the insurer incurs
expenditure in excess of the prescribed limit for reasonable reasons.
(2) Every insurer referred to in sub-section (1) shall attach as revenue a
certificate signed by its chairman and two directors and the chief
executive officer and auditor's certificate to the effect that the total
management expenses directly and indirectly related to the business
referred to in this section have been incurred as revenue. There will be
confirmation that it has been tampered with
Explanation.- In this section-
(a) "Management Expenses" means the total expenses incurred directly
or indirectly including payment of commissions and, in case of principal
place of business outside Bangladesh, the appropriate share of head
office expenses of the insurer which shall not exceed the prescribed
percentage corresponding to the total net premium income, i.e. in
Bangladesh for the year; The gross premium written directly shall not
exceed the amount of reinsurance accepted minus surrendered premium;
(b) "insurance business carried on in Bangladesh" means insurance
business carried on at any place in relation to any property situated in
Bangladesh or any vessel or aircraft registered in Bangladesh;

পারিশ্রমিক৷ 64 For the purposes of sections 58, 59, 62 and 63, "remuneration" shall
include traveling allowance and entertainment allowance and all other
payments and expenses.

Power to 65 (1) If the Authority is satisfied that any insurer in all its insurance
limit business carried on in Bangladesh is paying any commission or any other
payment of remuneration to any person in relation to its assets which is not in
accordance with the prevailing general standards of insurance business,
the Authority shall within 6 (six) months in this regard may give such
additional direction as it deems necessary for compliance and if the conditions of the
remuneration contract entered into by the insurer with that person are to be modified for
the purpose of complying with this direction, the insurer may resign to the
person concerned or if the revised conditions are not acceptable to the
person concerned, only because of the amendment of the terms and
conditions. shall not provide any compensation to the person concerned;
and for any amount paid after the date of resignation except at the rate
approved in this regard by the Insuring Authority,
(2) Every insurer shall, before the 1st day of March every year, submit to
the authority in the prescribed schedule a statement of the remuneration
paid to any person in excess of the minimum taxable income limit or in
any other form during the previous calendar year.
(3) If the insurer pays remuneration in excess of the limit of taxable annual
income prescribed in the Income-tax Act under the contract entered into
by him with any person, the authority may, by notice in writing, direct the
filing of a certified copy of such contract and the insurer shall be bound to
comply with such direction.

Manager 66 (1) Notwithstanding anything contained in the Companies Act or, in the
and other case of a company, in its articles of association or in any agreement or
regulations consent, after the expiration of one (one) year from the commencement of
this Act, no insurer shall be managed by any such manager or officer or
any other person holding such office or office. shall not employ any
person whose remuneration or part thereof is calculated as commission
on the gross insurance business transacted or on any class or sub-class
of non-life insurance business or on any part of the business thereof or
otherwise calculated;
Provided that nothing in this section shall be without prejudice to the
following matters, namely-
(a) commission payable for business obtained by or through an insurance
agent or insurance agent appointee or broker;
(b) appoint such insurance agent in a clerical or subordinate position who
receives commission for collecting business;
(c) appointment of such person as an officer who receives commission for
collecting business as insurance agent or insurance agent recruiter;
(d) distribution of profit share of non-life insurance business;
(e) payment of bonus on a uniform basis for any period to all categories of
employees as additional benefits; Such bonus shall not exceed in the
case of any employee his salary at that time and shall be reasonable in
the opinion of the Authority.
(2) No person shall be entitled to any compensation in respect thereof,
whether in contract or otherwise, by reason of the application of any
provision of this section.
Engagement 67 (1) Every insurer registered for life insurance business shall, with the
of Actuary approval of the Authority, appoint an executor as necessary.
(2) The qualifications, duties and other benefits and conditions of the
actuary shall be prescribed by regulations
(3) The Authority may, for good reason, disallow such appointment or
cancel the sanction previously granted
(4) If the actuary appointed by the insurer is absent from service for any
reason other than the reason under sub-section (3), the insurer shall
within 15 (fifteen) days from the date of absence from service inform the
authority in writing of the actuary's absence from service and the reason
thereof and his post shall be vacated. within a period not exceeding 90
(ninety) days or if the Authority grants further time within such period shall
approve the appointment of another person as its actuary.
(5) If the actuary appointed by the insurer deems it necessary to bring to
the notice of the Board of Directors any matter in his opinion, he may
without delay submit his report to the Board of Directors.
(6) An actuary shall not be dismissed without the permission of the
Authority and the Authority shall not permit such dismissal without hearing
both parties.
(7) If an actuary resigns from service, he shall inform the authority of the
reason for his resignation and shall do so if he believes that any matter
connected with the resignation should be brought to the notice of the
authority.
(8) Any director, chief executive officer, officer or employee of the insurer
shall furnish to the best of his knowledge all information requested by the
actuary and ensure that any material particulars furnished to the
appointed actuary are not false or misleading and incomplete.

Two years 68 Any life insurance policy in force before the commencement of this Act
answer after the expiry of 2 (two) years from the date of commencement of this
policy not Act and any life insurance policy in force after the commencement of this
to be Act after the expiry of 2 (two) years from the date of its commencement.
questioned No question can be raised as to the accuracy or falsity of the statement in
due to the offer of insurance or the medical report or related referee or friend of
providing the insured or in any other document, unless the insurer can prove that
false the statement was of vital importance and disclosure is important. such
information information has been withheld or the policyholder has fraudulently
effected it and the policyholder knew at the time of furnishing the
information that it was untrue or that it was important to disclose such
information;
Provided that nothing in this section shall prevent the insurer from being
called upon to prove age at any time if he is entitled to do so, and no
 policy shall be questionable merely because the statement of age given in
the offer is incorporated into the terms of the policy subject to later proof.

Applicability 69 Notwithstanding anything contained in any contract relating to an

of insurance policy issued by an insurer dealing in insurance business
Bangladesh transacted in Bangladesh after the commencement of this Act, the insurer
laws to shall have the power to accept in Bangladesh the sum assured and to file
policies a suit for any remedy in respect of the policy in any court of competent
issued in jurisdiction in Bangladesh and such If any suit is filed in Bangladesh, the
Bangladesh question of law arising in relation to any such policy shall be settled
according to any law in force in Bangladesh:
Provided that nothing in this clause shall apply to marine insurance
policies

Payment to 70 (1) Where the insurer is of the opinion of a life insurance policy
court matured for payment that it is impossible to obtain a proper discharge of
the assured payment in favor of the insurer on account of conflicting
claims or insufficient evidence or other reasonable cause, the insurer from
the date of maturity of the policy or where the insurer is partially due to
circumstances In case such maturity cannot be known immediately, the
insurer may apply to the court of competent jurisdiction for payment of the
said amount due for the policy before the expiry of 9 (nine) months from
the date on which the notice of maturity is given to the insurer.
(2) A receipt issued by the Court for such payment shall be deemed to be
a satisfactory discharge by the insurer of such payment.
(3) The applicant under this section shall apply to the court for permission
to pay by an affidavit signed by the chief executive officer of the insurer
and the application shall include the following matters, namely :-
(a) the name and address of the insured;
(b) if the insured person dies, the date and place of his death;
(c) the nature of the policy and the amount of sum assured;
(d) to the knowledge of the insurer the name, address of each claimant
and a particulars of all notices of claim received;
(e) the reason why, in the opinion of the insurer, exemption from payment
is not available; And
(f) the address to which the insurer shall serve notice of the proceedings
in respect of the money given by the Court
(4) An application to the Court shall not be accepted under this section if it
is made before the expiry of 6 (six) months from the date of maturity of the
policy during the lifetime of the policyholder or from the date of receipt of
notice by the insurer of the death of the person insured.
(5) If it appears to the court that it is impossible for the insurer to obtain
relief from the payment of the sum in any other way, the court shall allow
 the sum to be paid into court and invest the sum in government securities
until such settlement is made.
(6) After filing an application under sub-section (3) the insurer shall send
to the court every notice of claim and the insurer shall bear the costs of
the proceedings in the court in view of such application and the costs of
disposing of the deposit and all other costs authorized by the court and
directed by the court. According to
(7) The court shall arrange for notices to be given to the confirmed
claimants regarding the amount deposited and if any claimant applies for
withdrawal of the amount, the cost of giving notice to all the claimants
shall be met from the amount recovered from him.
(8) The Court shall decide all inquiries relating to the settlement of claims
for money deposited in the Court

Disputes 71 (1) In the event of any dispute as to the amount of a claim under a life
relating to insurance policy or any non-life insurance policy in respect of any
small sum insurance business transacted in Bangladesh (other than such profit and
life bonus not being a guaranteed profit or bonus) as prescribed by the rules,
insurance the claimant shall, if the claimant so desires, may refer the matter to the
and non-life Authority for settlement and the Authority may settle the dispute after
insurance hearing the parties concerned and taking such evidence as it may in its
claims sole discretion consider necessary.
(2) The decision of the authority taken under this section shall be final and
shall not be questioned in any court and such decision shall be deemed to
be the judgment of any court competent to settle the dispute and shall be
enforced accordingly.
(3) The Authority shall levy and collect such fee as may be prescribed by
percentage or otherwise for the performance of duties under this section.

Interest on 72 (1) In such case where the money under the policy issued by the
late insurer is payable and all the documents for payment of the claim have
payment of been filed by the claimant, the insurer shall pay the claim within 90
claims (ninety) days of the claim becoming due or of the completion of all
formalities by the claimant, whichever is later. fails to pay the interest
prescribed in sub-section (2), unless the insurer can prove that such
failure was beyond its control.
(2) Interest under sub-section (1) shall be payable for the ongoing period
of failure and shall be calculated on a monthly basis at an additional rate
of 5 (five) percent of the prevailing bank rate.

Dispute 73 (1) The Authority shall constitute one or more Dispute Resolution
Resolution Committees for settlement of disputes arising between insurers and
Committee policyholders in relation to claims other than disputes relating to claims
under section 71.
 (2) The constitution and procedure of the committee under this section
shall be prescribed by regulations and no provision made under the
Arbitration Act, 2001 or thereunder shall apply to such committee .
(3) No person having interest in the matter related to the dispute shall be
appointed as a member of this committee
(4) Disputes related to life insurance policies or non-life insurance policies
other than group insurance policies shall be within the scope of this
committee.
(5) If any person is aggrieved by the decision of the committee, he may
approach the court within 30 (thirty) days of the said decision.

Administration and management of insurance companies

Restrictions 74 (1) No insurance agent of an insurer relating to life insurance and the
on appointing agent shall be eligible to be or be a director of any insurer
Insurance relating to life insurance.
Agents, (2) No insurance agent, surveyor and insurance broker of a non-life
Recruiting insurance insurer shall be eligible to be or be a director of any non-life
Agents, insurance insurer.
Surveyors
and (3) Any insurance agent or agent recruiter or surveyor or insurance broker
Insurance who contravenes the provisions of sub-sections (1) and (2) shall not be a
Brokers to director and in addition his license as an agent or insurance broker or his
be certificate as an agent recruiter or surveyor. , as applicable, shall be
Directors of voidable
Insurance
Companies

Restrictions 75 Notwithstanding anything contained in any other law for the time being
on in force, a director of an insurer shall not be a director of any other insurer
simultaneous or of any banking company or financial institution registered for the same
directorship class of insurance business.
of several Explanation.- For the purposes of this section, "banking company" shall
insurers of mean a bank company as defined in the Bank Companies Act, 1991 and
the same "financial institution" shall mean a financial institution as defined in the
class or of Financial Institutions Act, 1993 .
insurers
and
banking
companies
or financial
institutions.

The board 76 (1) If an insurance company is registered under the Act, the number of
of directors directors shall not exceed 20 (twenty) persons and in that case 12 (two)
of the entrepreneurial directors and 6 (six) public shareholding directors,
insurer whatever may be contained in its memorandum or articles of association.
And there will be 2 (two) independent directors
(2) The shareholders shall elect directors in the manner prescribed by the
rules

Restrictions 77 (1) Notwithstanding anything contained in any other law for the time
on being in force or in the articles of association of an insurer, no person
Nomination other than a member of the board of directors of an insurer shall exercise
of Nominee the duties of a director:
Directors Provided that if a director stays outside Bangladesh for a period of
more than 3 (three) months, the Authority may nominate a person
qualified to be a director to act as a director in his place by prior
intimation:
Provided further that no such nominated director shall serve as a
director for more than 6 (six) months without the approval of the Authority.

Restrictions 78 For the time being: Notwithstanding anything contained in any other
on law or association of insurers for the time being in force, no person
employment engaged in the employment of an insurer as an adviser, auditor,
by directors consultant or in any other lucrative position shall be eligible to be or be a
director of the said insurer.

Election of 79 Notwithstanding anything contained in the articles of association of the

President insurer, the chairman and vice-chairman of the board of directors of the
and Vice- insurer shall be elected from among the directors:
President Provided that the Board of Directors shall not have more than one Vice-
of the Chairman
Board of
Directors

Appointment 80 (1) No person shall be appointed as the chief executive officer of an

and insurance company without the approval of the Authority and such
Removal of appointment shall not be approved by the Authority unless the person
Chief proposed for appointment is satisfied as to such qualifications and
Executive experience in the field of insurance as may be prescribed by regulations.
Officer (2) No Chief Executive Officer authorized by the Insurer under sub-section
(1) shall be removed, dismissed or dismissed without the prior approval of
the Authority and the Authority shall not, in such case, hear the Chief
Executive Officer concerned and the Insurer or any person duly
authorized in this regard. Will not provide a decision
(3) The Insurer shall notify the Authority in writing before the expiry of 15
(fifteen) days from the expiry of 15 (fifteen) days from the date of
becoming aware of any person being its Chief Executive Officer or not
holding that position.
 (4) The post of Chief Executive Officer of an insurance company shall not
be kept vacant for more than 3 (three) months at a time:
Provided that the authorities may extend the said time limit by another
3 (three) months considering the exigent circumstances
(5) If the post of chief executive officer of an insurance company is not
filled within the period prescribed in sub-section (4), the authority may
appoint an administrator to perform the duties of the chief executive officer
of the company and the company may pay such administrator's salary
and other benefits as the authority may determine. All expenses will be
incurred

Appointment 81 For the time being: Notwithstanding anything contained in any other
of advisers law for the time being in force or in the association of insurers, no insurer
shall appoint more than 2 (two) advisers and such appointment shall not
be made without the approval of the Authority;
Provided that the adviser so appointed shall have such duties and
responsibilities as may be prescribed and shall have such qualifications
and experience as may be prescribed by the regulations.

Life Insurance: Dividend, bonus, profit, distribution etc

Restrictions 82 (1) No insurer shall pay any dividend on its shares without fully
on Payment deducting all management expenses, share sale commissions, brokerage
of Dividend, related expenses, incurred losses and any other expenses which cannot
Bonus be met by its sufficient assets.
(2) declaration or payment of dividends to shareholders of insurers
carrying on any life insurance business, bonus to policy-buyers or
payment of any debenture, loan or advance relating to the actuarial
valuation of assets and filed as part of the summary referred to in this
Ordinance as shown in the valuation certificate filed with the Authority.
shall not use directly or indirectly any part of the life insurance fund or any
fund of any other class of insurance except as surplus; and such surplus
shall not be increased by transfer of money in any manner other than the
reserve fund constituted by such surplus shown in the statement filed with
the Authority under this Act, unless such money is transferred as revenue
through the revenue account relating to life insurance business on or
before the above assessment date. Happens:
Provided that when the interest on the debenture paid is compounded or
accrued to the respective fund or funds as the basis of the interest
accepted in the valuation of the surplus shown above, except in such
cases the payment of interest on any debenture in excess of 50 (fifty)
percent of the corresponding surplus and the amount of debenture
interest paid is per cent. Not more than 10 (ten) percent:
 Provided further that the portion of the surplus so allotted to or
reserved for the shareholders, including the amount reserved for payment
of first liability or otherwise assured dividend, shall not exceed such
amount as may be prescribed by regulations, and shall in no case exceed
the following amounts, namely:-
(a) in the case of partnership policies, ten (10) percent of the surplus; And
(b) in other cases, such percentage of the entire surplus as may be
prescribed by regulations

Distribution 83 Notwithstanding anything to the contrary contained in the insurer's

of profits memorandum or articles of association or any other document, no insurer
among carrying on life insurance business shall distribute for the benefit of
policyholders insurance policy customers out of surplus money less than such
in life percentage of surplus as may be prescribed by regulation.
insurance
business

Interim 84 Notwithstanding anything contained in this Act, any insurer carrying on

Bonus life insurance business may, at the time of interim valuation, declare an
Announcement interim bonus or bonuses to such policyholders whose policies have
matured for payment on death or any other cause, as recommended by
the investigating actuary at the latest valuation.

Giving 85 An insurer shall, before the expiration of 3 (three) months from the date
notice on which the premiums of the life insurance policy became payable, but
about the not paid, give notice to the policyholders of the acceptance wishes
benefits applicable to them, unless those wishes are included in the policy.
available to
the insured
in case of
policy
cancellation

Nomination 86 (1) Under a group life insurance contract the insured may at any
under time nominate one or more persons to whom the sum assured under
Group Life the policy shall be paid on his death:
Insurance
Provided that, if the nominee is a minor, the life assured may
Policy
appoint another person in the manner prescribed by the regulations to
receive the sum assured under the policy in case of death of the
nominee during his minor age.

(2) Any nomination under sub-section (1) shall be made in the manner
prescribed by regulations

Surrender, forfeiture, forfeiture of certain life insurance policies

Specific 87 (1) For the purpose of this section "relevant policy" means a life
definitions insurance policy with such condition that the full benefit assured shall be
and payable at a specified interval or intervals after the occurrence of any
interpretations contingent event.
of relevant (2) Due under the relevant policy shall mean the outstanding premium
policies payable under the policy.

Achieving 88 (1) If a policy remains in force for another 2 (two) years, its surrender
return value value shall be due and the actuary appointed by the insurer shall
determine the surrender value in the manner prescribed by the
regulations.
(2) If any policy issued before the coming into force of this Act remains in
force after the coming into force of this Act, its surrender value shall not
be less than its surrender value immediately before the coming into force
of the Act.
(3) If the basis of calculation of surrender value is subject to change by
the insurer according to the terms of any policy, the basis of such
calculation shall be submitted to the authority and if the insurer not less
than 60 (sixty) days before such change is proposed to the authority by
the executor with a report containing his opinion on the change. No
change shall be made without filing a statement regarding the change and
its reason
(4) If the insurer raises with the authority about the proposed change
mentioned in sub-section (3), the authority may direct the insurer to make
reasonable changes in the proposed change within 60 (sixty) days to
protect the interest of the policyholder and the insurer shall comply with
the said order.

Surrender 89 (1) After the relevant policy has been in force for at least 2 (two) years,
of the the policyholder may request the surrender of the said policy through a
policy at written application to the insurer.
the option (2) Subject to the provisions of sub-section (3) and sub-section (4), within
of the 1 (one) month of the receipt of the application under the provisions of sub-
insurance section (1), if the application has not already been withdrawn by the
policy applicant, the policy The surrender value will be paid to the policyholder
holder minus the amount due to the insurer and the amount accepted as policy
collateral.
(3) If an insurer within 15 (fifteen) days of the receipt of an application
under sub-section (1) informs the policyholder in writing of the benefits of
continuing the policy and, if necessary, requests professional advice, in
sub-section (2) The said period of 1 (one) month shall be extended by 15
(fifteen) days only for this policy
(4) The Authority may, on the application of the insurer, pass an order in
writing suspending or varying the liability of the insurer to pay under sub-
 section (2) if such suspension or modification is necessary to preserve the
interest under,--
(a) financial stability of the insurer; or,
(b) Interest of the policyholder of the insurer
(5) An order made under sub-section (3)—
(a) remain in force for such period as may be determined by the Authority;
And
(b) shall be subject to conditions prescribed by the Authority

Surrender 90 (1) If a policy attains surrender value, the policy shall not be
of policy at surrendered except on the application of the policyholder except as
the will of provided in this section.
the insurer (2) If the amount deposited by the policyholder with the insurer under the
policy concerned or as security for the policy exceeds the surrender value
of the policy concerned, the insurer may issue a written notice to the
policyholder stating the following, namely:-
(a) the liability to the insurer under the policy or its collateral at the date of
giving the notice;
(b) the surrender value of the policy on the date of giving the notice;
(c) Informing the policyholder that if the surrender value excess liability is
not paid before the due date, the policy shall be surrendered after 30
(thirty) days from the issue of the notice and its surrender value shall be
used to pay the liability.
(3) If at least 30 (thirty) days have elapsed from the date of issue of the
notice referred to in sub-section (2) and the excess surrender value
liability has not been paid within this period, the insurer shall give written
notice to the policyholder to effect surrender of the policy and surrender
value liability. can be used for payment, in this case the liability equal to
the return value will be paid

Policy 91 (1) If a policy is in force for a minimum of 2 (two) consecutive years,

Payout as the insurer shall pay the policy within 30 (thirty) days of receipt of written
per application from the concerned policyholder.
policyholder's (2) If an insurer within 15 (fifteen) days of receiving an application under
wishes sub-section (1) informs the policyholder in writing of the benefits of
continuing the policy and advises him to take professional advice if
necessary, the 30 mentioned in sub-section (1) (thirty) days period shall
be extended by 15 (fifteen) days only for this policy
(3) When a policy is paid up, it shall have a premium, subject to the
provisions of sub-section (5)—
(a) the policy shall cover all bonuses already earned; And
(b) the maximum number of premiums payable shall be fixed in advance
and the premiums shall not be less than the fixed number before the
 inclusion of such bonus in the case of such policies where the premium is
the same figure and payable at the same intervals.
(4) No policy paid up under this section shall share in any surplus
declared distributable after conversion to paid up only by reason of the
provisions of this section.
(5) If any policy under sub-section (1) applies to the insurer for settlement
of the paid-up value, if the policyholder owes any debt to the insurer under
the said policy or on the security thereof, the insurer—
(a) the loan may be treated as secured by a paid-up policy; or
(b) may take such amount of credit into account in determining the value
of the paid-up policy as the Actuary engaged may think fit.
(6) In calculating the insured paid amount, if any loan is taken as the
amount as per clause (b) of sub-section (5), the said loan shall be
considered as paid.

বাজেয়াপ্তকরণ৷ 92 (1) No policy shall be forfeited merely for non-payment of overdue

premium, if—
(a) the policy remains in force for at least 2 (two) years; And
(b) The surrender value of the policy exceeds the sum of the overdue
premium and all debts under the policy or secured by the policy.
(2) For the purpose of clause (b) of sub-section (1), the surrender value of
the policy shall be reckoned as if the premium had been paid on the date
on which the overdue premium is payable.
(3) If a policyholder fails to pay any premium due under this section, the
insurer shall, within 3 (three) months from the date on which the premium
was due but not paid, inform the policyholder of his action by notice.
(4) Notwithstanding anything to the contrary in the policy, the policyholder
may optionally comply with the following under this section, namely-
(a) paying the policy in accordance with the provisions of this Act;
(b) adjusting the total surrender value of the policy with the premium
recoverable;
(c) paying off the policy by paying the annual premium in advance subject
to receipt of the surrender value of the policy;
(d) surrender of policies in accordance with the provisions of this
Ordinance;
(e) On the surrender of the policy, the insurer issues a term life insurance
contract to the policyholder for a term of his choice, and the sum assured
is determined from the surrender value of the policy by adjusting the
liability of the company under it or as a security.
(5) Notwithstanding any provision to the contrary in the policy, the insurer
shall, in respect of a policy under this section, take action as follows—
(a) any such desire not included in the notice issued under sub-section (3)
after the receipt of the notice by the policyholder, if the insurer and the
 policyholder agree in writing to act accordingly;
(b) if the policyholder agrees to accept any wish contained in the notice
issued under sub-section (3), proceed accordingly;
(c) if the policyholder does not respond to the notice issued under sub-
section (3) and is not contacted despite reasonable attempts to contact
him—
(b) if the policyholder has agreed in writing to take any action after taking
up the policy, but before ceasing to pay premium, taking action
accordingly, otherwise
(a) If the policy mentions any action other than the action referred to in
clause (b) of sub-section (4), take action accordingly.
(6) No commission shall be paid to any person for the following work,
namely:-
(a) adjustment with payment of surrender value premium under sub-
section (4); And
(b) Issuance of contracts of term life insurance under clauses (c) and (e)
of sub-section (4).

Supply of 93 Every insurer shall, on application and payment of the prescribed fee,
copy of furnish to the policyholder a certified copy of the questions asked in the
proposal insurance proposal and in the medical report and his answers.
letter and
medical
report

Restrictions 94 (1) After the coming into force of this Act or after the expiry of 3 (three)
on months from the date of its coming into force, no insurer shall commence
business in or carry on business in reliance on a policy of apportionment in which the
partition benefits of the policy are not specified but the benefits within the policy
policy which become claims within the prescribed period. The benefit of the
policy depends wholly or partly on distribution or where the amount of
premium of the policy depends wholly or partly on the number of policies
turning into claims during a specified period:
Provided, that nothing in this section shall prevent the insurer from
distributing bonus to the life insurance policy subscriber who has
preempted or cash bonus or otherwise participated with the sum assured
in accordance with the provisions of this Act.

Management by admin

Recruitment 95 (1) If at any time the Authority has reason to believe that an insurer is
of conducting its insurance business in such a manner as to prejudice the
Administrators interests of its policyholders or is unable to maintain the required solvency
in margin, the Authority shall suspend its Board of Directors after giving the
Insurance insurer an opportunity to present its views. may and appoint an
Business administrator to manage the affairs of the insurer under the direction and
Management control of the Authority
(2) The administrator appointed under sub-section (1) shall receive the
salary, allowances and other benefits, if any, as determined by the
authority and the authority may at any time cancel his appointment and
appoint another administrator in his place.
(3) On and after the date of appointment of the administrator, the
responsibility of managing the business of the insurer shall be vested in
the administrator, but the administrator shall not issue any new policy
without the approval of the Authority.
(4) If any person has been entrusted with the responsibility of such
management immediately before the appointment of the administrator,
such management responsibility shall cease on the date of appointment
of the administrator and thereafter.
(5) The Authority shall give necessary directions to the Administrator as to
his powers and duties and the Administrator may at any time apply for the
direction of the Authority on any matter arising in the conduct of the
business or management of the insurance business.

Powers and 96 (1) The administrator shall conduct the insurance business of the
Responsibilitiesinsurer with all economy and efficiency and shall, as soon as practicable,
of submit a report to the Authority with an opinion as to which of the following
Administrator steps is most advantageous to the general interest of the policyholder in
the circumstances, namely—
(a) transfer of the insurance business of the insurer to any other insurer;
or
(b) continuation of the insurance business by the insurer, (in the case of
life insurance either by keeping the principal amount of the policy
unchanged or at a reduced amount with the bonus attached to the policy);
or
(c) winding up the insurance business of the insurer; or
(d) any other method, which he thinks fit
(2) On receipt of the report under sub-section (1), the Authority shall
ordinarily take necessary measures to protect the interest of the insurance
policy holder.
(3) An order passed by the Authority under sub-section (2) shall, in the
case of an insurer and a company, notwithstanding its Articles of
Association and Articles of Association, be enforceable and enforceable.

Powers of 97 (1) If the Administrator is satisfied that any person has come within the
administrator purview of taking legal proceedings against him under this Act, until the
in respect proceedings under this Act are instituted, by order in writing, proceedings
of chattel under the said section shall appear to be coercible. The property may not
property be transferred or otherwise sold by that person or any other person
(2) Any person aggrieved by an order issued by the Administrator under
sub-section (1) above shall appeal to the Government within 14 (fourteen)
days of receipt of the said order and the Government shall take
appropriate action in respect of such appeal.
(3) An order of the Administrator made under sub-section (1) shall, subject
to an order passed by the Government in disposal of an appeal, remain in
force for a period of 3 (three) months from the date of issue of such order,
unless an application under this Act is filed in any court of competent
jurisdiction within such period. and in the case where such application is
made the said order shall have effect subject to any order of the Court as
if it were an order made by the Court for garnishment under the relevant
section.
(4) Any order made by the Administrator under this section—
(a) If any corporation or organization is concerned, it shall be issued in the
manner of summons mentioned in rule 2 of order XXIX or order XXX Gi
rule 3 of the First Schedule to the Code of Civil Procedure, 1908 (Act No.
V of 1908). , and
(b) if any such person other than a corporation or body is concerned, if—
(b) by registered post at the person's last domiciled address and at his
permanent address or by delivering it personally to the person; or
(a) if the said person is not available, by keeping a copy with any elder
male member of the family; or
(e) by placing in any visible part of the person's last known residence or
place of business or place of personal employment for earning,
may be issued and in each case such order shall be published in the
Official Gazette
(5) If any question arises as to whether the order under sub-section (4)
has been duly served on the person concerned, then if the order is
published in the Gazette, such publication shall be conclusive evidence of
the service of the order and failure to comply with the provisions of sub-
section (4) The validity of the order shall not be impaired
(6) Notwithstanding anything else in this section, such property relating to
an order issued by the Administrator shall be transferred or otherwise sold
with the prior approval of the Administrator and subject to such conditions
as may be imposed.
(7) Notwithstanding anything contained in any other existing law, it shall
be unlawful to transfer or otherwise sell any property in contravention of
any order issued or condition imposed by the Administrator under this
section.
(8) In order to be able to form an opinion as to whether any property is
actionable in legal proceedings under this Act or to undertake legal
 proceedings, the Administrator may direct any person to furnish any
information he deems relevant for the purpose and the person so directed
shall comply with the Penal Code, 1980 (Act No. XLV of 1960) shall be
deemed to be legally bound to furnish the said information within the
meaning of section 176.
(9) The Administrator shall have all the powers of a civil court under the
Code of Civil Procedure, 1908 (Act No. V of 1908) in trying the following
matters , namely:-
(a) the confirmation of witnesses in the presence and presence of
witnesses in court and their examination on oath;
(b) directing the filing of documents; And
(c) Testimony through truth reading
(10) Any proceedings and proceedings of the Administrator under this
section shall be considered judicial proceedings within the meaning of
sections 193 and 228 of the Penal Code, 1860 (Act No. XLV of 1960).

Termination 98 The Administrator may at any time during his term, after giving
of contract opportunity to the persons concerned to make representations, cancel or
modify (conditionally or unconditionally) any contract or agreement
entered into between the Insurer and any other person (other than the
policy) if it appears to him to be contrary to the interests of the
policyholders. He can impose such conditions as he thinks fit).

Termination 99 If at any time, as a result of the report given by the Authority for this
of purpose, it appears to the Authority that the purpose of the order
appointment appointing an administrator has been fulfilled or that the order appointing
of an administrator is no longer desirable for any reason, then the authority
administrators may cancel the said order and terminate the administrator's tenure and
his business. , unless the Authority directs otherwise, shall be vested in
the person to whom it was vested immediately before the appointment of
the administrator.

Final 100 Any order or decision of the authority under section 95 or section 99
decision shall be considered final and no question shall be raised in any court.
regarding
appointment
of
administrator
and
cancellation
of
appointment
order
Penalty for 101 If any director or officer of the insurer or any other person is unable or
keeping fails to deliver any account book, register book or any other document in
documents his custody in relation to the business of the insurer in accordance with
or property the demand of the administrator or in possession of any property of such
from the insurer, he shall be liable to a maximum of 6 ( shall be punished with
administrator imprisonment up to six months or with a fine of 5 (five) lakh rupees or with
both

Reservation 102 (1) No suit, complaint or other legal proceeding shall be entertained
of against the administrator for any act done in good faith or with good faith
measures intention under sections 95, 96, 97 and 98.
taken under (2) No suit or any other legal proceeding shall be taken against the
sections 95 Government or the Authority for any loss or potential loss arising out of
to 99 any activity carried out in good faith or with bona fide intention under
section 95, 96, 98, 99 or 100.

Abolition 103 (1) The court may order the winding up of any insurance company in
by Court accordance with the provisions of the Companies Act and the provisions
of the Companies Act shall apply subject to the provisions of this Act in
respect of such winding up order.
(2) In addition to the grounds on which an order of abatement is made
under sub-section (1), the court may make an order of abatement on any
of the following grounds, namely—
(a) If, with the prior approval of the court, the holders of at least one-tenth
of the share capital of the company, at least one-tenth of the number of
shareholders, or at least 500 (five hundred) life insurance policy
subscribers whose policies have been in force for at least 3 (three) years
and whose value is less than the prescribed value No, by filing an
application in this regard;
(b) if the authority, which is hereby empowered to do so, applies to the
Court on the following grounds that,
(b) the company has failed to pay or deposit security deposit with
Bangladesh Bank in accordance with sections 23 and 119 of this Act;
(a) the company has failed to comply with any provision of this Act and
has continued to do so, or has continued to do so for a period of 3 (three)
months after receiving notice of the contravention from the Authority or the
Authority notifying the Company of the contravention;
(e) if it appears from the returns filed under the provisions of this Act or as
a result of any inquiry thereunder, that the company has failed to maintain
a solvency margin; or
(e) the policy maintained by the company is contrary to the consumer or
public interest;
(3) Where a winding-up order is passed under this section against an
insurance company, that company shall not be bound by any contract
 relating to life insurance or non-life insurance;
(4) The non-life insurance contracts issued by the insurer which are in
force on the date of passing the winding-up order shall be deemed to
have been canceled on the date of the order or on such later date as may
be specified in the order.

Unpaid 104 Notwithstanding anything contained in any other law, for the purposes
share of this Act, the outstanding share capital of an insurer shall not be taken
capital as an asset in determining its solvency and other matters.

Voluntary 105 Notwithstanding anything contained in the Companies Act, no

Extinction insurance company shall be voluntarily wound up except by reason of
effecting amalgamation, or reorganization of the company or inability to
carry on the business for its liabilities or cancellation of licence.

Valuation of 106 (1) In case of liquidation of an insurance company or bankruptcy of

Liabilities an insurer under the Bankruptcy Act, 1997, the valuation of assets and
liabilities of the insurer shall be subject to the rules mentioned in
Schedule-II and any direction given by the court.
(2) For the purpose of reducing the amount of contracts of an insurance
company through the court, the assets and liabilities of the company and
the amount of claims on all policies issued by the company shall be
determined in the manner and on the basis specified in the directions
given by the court.
(3) Rules may be made under this section to carry out the provisions of
this Act for effecting winding up of insurance companies and such rules
shall be amended or modified in accordance with the rules made under
the Companies Act.

Application 107 (1) In case of liquidation of any insurance company carrying on life
of surplus insurance business or bankruptcy of any other insurer carrying on similar
assets of business, assets and liabilities related to the life insurance business of the
life insurer shall be valued separately from other assets and liabilities of the
insurance insurer and similar surplus assets shall be used to pay liabilities other
fund in than liabilities in respect of life insurance business. Cannot be used
case of (2) In case of winding up of an insurance company carrying on life
winding up insurance business or in bankruptcy of any other insurer carrying on such
or business, if any part of the profits of the insurer is allocated to the
bankruptcy policyholders before the commencement of the winding up or bankruptcy
proceedings, if in the assessment of the assets and liabilities of the
insurer the assets sought to be filed (hereinafter referred to as primary)
provided that the same shall be added in the proportion equal to the
dividend allotted to the share subscribers with respect to the life insurance
business of the Insurer and the dividend allotted to the policy subscribers
during the 10 (ten) years immediately preceding the commencement of
 the winding up process and after making such addition The assets which
are in excess of the liability shall be considered as surplus assets of the
insurer:
Provided that-
(a) If in any case no such allocation has been made or in special cases
arising it appears to the court that for special reasons it would not be
reasonable or legal or proper to add the aforesaid amount to the deposit
of the insurer in the case of life insurance, such order as the court may
pass. A similar amount shall be added; And
(b) where dividends are allocated to policyholders of any branch of the life
insurance business under consideration before the commencement of
winding up or insolvency proceedings, for the purposes of this sub-section
the assets and liabilities of the insurer shall be determined separately in
the same manner as the assets and liabilities of the life insurance
business are determined; And if any surplus of assets is shown in excess
of liabilities, the same shall be considered as primary surplus for the
purpose of addition to the liabilities of the respective insurers in the life
insurance business.

Abolition of 108 (1) Where any insurance business or any part of the insurance
Subsidiary business of an insurance company is transferred to another insurance
Companies company under any agreement by reason of which the aforesaid
company or its creditors to the company to which such transfer has been
made, the said company, hereinafter referred to in this section as the
subsidiary company, against If there is any claim, if the main company is
wound up by the order of the court or under the control of the court, the
court shall order the winding up of the said subsidiary company along with
the main company and by the same or any subsequent order shall
appoint the same person as the liquidator of both the companies and if
both the companies are the same company. You can take such measures
as you think necessary for this purpose.
(2) Unless the court passes any other order, the winding-up proceedings
of the parent company shall commence with the winding-up proceedings
of the subsidiary company.
(3) While coordinating the rights and liabilities among themselves, the
court shall consider the constitution of the respective companies and the
arrangements of the companies themselves and similarly the rights and
liabilities of the various classes of contributories in the company, as or
nearer to the winding-up of a single company.
(4) Where a company is called a subsidiary company and the parent
company called the subsidiary company is not wound up at the same time
as the parent company, the court shall not order the parent company to be
wound up, unless the court is against the winding up of the said company
or the said company. After hearing all the objections raised (if any), the
 court is satisfied that it would be reasonable to wind up the said company
as a subsidiary company of the parent company and the parent company.
(5) Any person or any creditor of the principal or subsidiary company may
file a petition against the dissolution of the subsidiary company together
with the principal company.
(6) Where a company is a parent company of an insurance company and
a subsidiary company of another insurance company, or where there are
several subsidiary insurance companies of a principal company, the Court
shall, having regard to the principles set out in this section, consider such
number as may be most reasonable. Companies can be grouped together
or in separate categories

Scheme of 109 (1) If at any time it appears necessary that any class of insurance
Partial business included in the formation of the company should be discontinued
Liquidation but all other business of the company should be continued or transferred
of Insurer to another insurer, the court may, by formulating a plan for that purpose, in
accordance with the provisions of this Act. Can be filed for Karan
(2) any scheme under this section including the distribution of any surplus
assets arising from the proposed winding up of various classes of
business, including the reservation of any future rights of the policyholders
of the respective classes of policies, the arrangements for the allocation
and distribution of the liabilities and assets of the company and all the
activities of the company proposed to be wound up; and The purpose of
the Company shall include amendment of the Memorandum of
Association and addition of such other additional provisions as may be
necessary to give effect to the Plan.
(3) Liability and assessment of insurer under winding-up and bankruptcy
The provisions of this Act relating to winding-up under bankruptcy or
application of surplus assets of a life insurance fund shall apply to the
special winding-up of any part of the business of a company in
accordance with a plan made under this section as the said provisions
apply to the winding-up of an insurance company. and the winding-up
provisions of the Companies Act shall, mutatis mutandis, apply to any
scheme made in accordance with the provisions of this section.
(4) At the time of the confirmation of any scheme under this section, any
order of the Court by which the association of any company is altered in
its objects shall be deemed to be confirmed by any order made in the
Companies Act and shall have effect accordingly.
(5) In making any plan confirmation order under this section, the court
shall pay as much as possible of the deposit made by the company under
section 23 and section 119 which does not relate to any class of insurance
business, if any, still carried on by the insurer to the extent necessary for
settlement. can
Deposit 110 In the winding up of an insurance company, except where section 109
back applies and in case of insolvency of any other insurer, the liquidator or
assignee may, under section 23 or section 119, as the case may be, apply
to the court for refund of the deposit advanced by the company or the
insurer and such On application the court shall, subject to such conditions
as may be prescribed by it, order the refund of the bail.

Notice of 111 For the purpose of distributing cash on the liquidation of any
Policy insurance company's assets and in the event of the bankruptcy of any
Value other insurer, every person included in the records of the liquidating or
assigning company or any other insurer, as the case may be, and who
has an interest or shall have an interest in a policy issued by the company
or other insurer,

Power of 112. (1) Where an insurance company is in liquidation or any other insurer
court to is insolvent, the court may, subject to such conditions as may be
reduce prescribed, issue an order reducing the amount of the insurance contract
contract of of the insurance company or other insurer.
insurance (2) Where a company carrying on life insurance business is found to be
insolvent, the court may, if it thinks fit, pass an order reducing the amount
of the insurance contract of the company, subject to such conditions as
may be prescribed by it, in lieu of winding up.
(3) The liquidator or the company or on behalf of the company or the
policyholder or the authority may apply to the court for an order under this
section and any person who in the opinion of the court may be aggrieved
shall be entitled to hear such application.

Special provisions relating to foreign companies

Power of 113 In cases where the law or custom of a country outside Bangladesh
Government has certain special conditions for carrying on insurance business in that
to impose country and similar conditions are applicable to any insurer formed or
reciprocal incorporated in Bangladesh, then the Government, being satisfied about
incapacity the said conditions, may, by gazette notification, notify the insurers of that
on non- country in Bangladesh. may direct the application of similar terms and
Bangladeshi conditions as a condition of conducting business
companies

Information 114 Every insurer having its principal place of business or permanent
to be residence outside Bangladesh, if it establishes its place of business in
submitted Bangladesh or appoints a representative in Bangladesh for the purpose of
by insurers collecting insurance business, shall submit the following information to the
established authorities within 3 (three) months after the establishment of such
business center or appointment of representative, namely:-
outside (a) a certified copy of the insurer's constitution, by-laws, memorandum of
Bangladesh understanding, memorandum and articles of association or any other
document organizing and defining the insurer's constitution and, if the
document is not in the English language, an authentic English translation
thereof;
(b) full address of the insurer in Bangladesh;
(c) one or more persons resident in Bangladesh who is or are authorized
by the insurer to serve any process and notice on behalf of the insurer,
the name and address of such person or persons and a copy of the power
of attorney granted to him;
(d) in case of an insurance company, the list of its directors;
(e) a statement of such class of insurance to be maintained by the insurer;
And
(f) a statement, if any, of any conditions, if any, applicable to citizens of
Bangladesh similar to the special requirements referred to in section 113
in the insurer's home country, certified by a verification.

Books 115 Every such insurer, having its principal place of business outside
maintained Bangladesh or being a permanent resident, shall enable the authorities
by insurers under this Act to prepare accounts, statements, summaries relating to its
established business in Bangladesh and, if necessary, such books, registers and
outside documents as may be inspected by the authorities. shall maintain it at its
Bangladesh head office in Bangladesh and shall submit to the authorities a certificate
from the auditor to the effect that all the books of accounts, registers and
documents maintained on or before the last day of January of every
calendar year are being properly maintained at the head office of the
insurer in Bangladesh.

CHAPTER III
Mutual Insurance Companies and Cooperative Insurance Societies

definition 116 In this chapter-

(a) “mutual insurance company” means an insurance company registered
under the Companies Act or any law made thereunder and having no
share capital; All policy subscribers are its members only by constitution;
(b) “co-operative insurance society” means a co-operative society
registered under the Co-operative Societies Act which was registered as
an insurer under the Insurance Act, 1938 before the commencement of
this Act ;

Application 117. Clause (c) of sub-section (9) of sections 21, 22, 23, 36 and 44 not
of Act to inconsistent with the provisions of this Chapter shall not apply to mutual
Mutual insurance companies and co-operative insurance societies; and the
Insurance
Companies
and Co- provisions of this Chapter shall apply to mutual insurance companies and
operative co-operative insurance societies.
Insurance
Societies

Current 118. No mutual insurance company and co-operative insurance society

Capital of shall be registered under this Act, unless the said company or society has
Mutual the working capital specified in Schedule-1 excluding initial expenses and
Insurance security payable before application for registration.
Companies
and Co-
operative
Insurance
Societies

Security 119 (1) Every mutual insurance company and co-operative insurance
Deposits by society shall deposit and deposit with Bangladesh Bank the amount
Mutual specified in Schedule-1 in cash or in approved securities estimated at
Insurance market value on the date of deposit or partly in cash and partly in
Companies approved securities of similar estimated value at the time of application for
and Co- registration.
operative (2) Money deposited in cash will be deposited by Bangladesh Bank as
Insurance
Co-operative Insurance Society
Societies
(3) The Co-operative Insurance Society may at any time replace the
securities deposited with Bangladesh Bank under this section in cash or
approved securities or partly in cash and partly in approved securities
provided that the value of such cash or other securities is at the prevailing
market rate, or similar cash and The value of the securities, as applicable,
shall not be less than the value of the securities at the estimated value on
the date of deposit.
(4) If the Co-operative Insurance Society applies to Bangladesh Bank-
(a) sell the securities deposited by the Co-operative Insurance Society
under this section and keep the sale proceeds as security; or
(b) The whole or part of the money deposited in the Bangladesh Bank or
the saleable securities, or the maturity value of the deposited securities,
may be invested in Government securities and may receive commission
at the usual rate for the above sales and investments.
(5) If the provisions of sub-section (4) of this section apply,-
(a) If the proceeds of the sale of the securities or (excluding accrued
interest) the maturity value of the securities is less than the market value
prevailing on the date of deposit of the securities, the insurance
committee shall make up the said deficiency in cash or at the market rate
estimated on the date of deposit within 2 (two) months of the maturity or
 sale of the securities. shall meet the value in Government securities or
partly in cash and partly in securities; Otherwise the insurance association
shall be deemed to have contravened the provisions relating to sureties
under this section; And
(b) if the proceeds of sale of the securities or (excluding accrued interest)
the maturity value of the securities deposited with Bangladesh Bank is in
excess of the market value prevailing on the date of deposit of the
securities, if the Authority is satisfied that the escrow is fully protected in
accordance with the provisions of sub-section (1); If that happens, the
Bangladesh Bank will be asked to return the surplus money to the
cooperative insurance society
(6) If any liability of the Co-operative Insurance Society has been paid out
of the deposited money, the Co-operative Insurance Society shall meet
the said amount in cash or in Government securities valued at the market
value on the date of deposit or partly in cash and partly in Government
securities valued at the same and 2 (two) from the date of payment of the
liability. ) If the deficiency is not made good within the month, the Co-
operative Insurance Society shall be deemed to have violated the
provisions of sub-section (1) of this section.

Loan 120 The provisions of Section 44 shall apply to Co-operative Insurance

restrictions Societies in the same manner as to other insurers in respect of loans

Don't 121 A transferee or assignee of a policy issued by such insurer shall not
become a be a member of a mutual insurance company or co-operative insurance
policy society by reason only of such transfer or assignment of title to which the
transferee provisions of this chapter apply.
and owner
member

Publication 122 Notwithstanding anything contained in the provisions of the

of notices Companies Act, a mutual insurance company or a co-operative
and insurance society shall send its articles of association, revenue
documents accounts and other documents to its members in accordance with the
of mutual provisions of the relevant section without sending them to its
insurance members in an English language circulated at the head office of the
companies company or society and a It has to be published once in a newspaper
and published in Bengali
cooperative
insurance
societies

Supply of 123. Every mutual insurance company or co-operative insurance society

documents to apply for a copy of the said documents free of charge within 2 (two)
to members years from the date of sending the documents sent to the Registrar of
 Companies or Registrar of Co-operative Societies under the Companies
Act. ) will be delivered to members within days.

CHAPTER IV
mediator

Recruitment 124 (1) An insurer or broker shall appoint and register an individual
of insurance agent and every insurer or broker shall maintain a register of all
Insurance such appointments and registrations as insurance agents in the manner
Agents prescribed by regulations by the Authority.
(2) Every insurer or broker shall send to the Authority every year a copy of
the register maintained under sub-section (1) and shall inform the
Authority on a quarterly basis in the manner prescribed by regulations of
any additions or subtractions to the said list and of inclusions.
(3) The Authority may compel any insurer or broker to omit the name of
any insurance agent entered in the register filed with it on the grounds
that it is considered inappropriate for the person concerned to perform the
duties of an insurance agent in the interests of non-life insurance
customers.
(4) The Authority may, by making regulations in this regard, prescribe the
qualifications and other conditions for the appointment of insurance
agents, the period of registration of insurance agents, renewal fees and
the manner of payment of similar fees.
(5) No insurer or broker shall appoint as an insurance agent under him
any person registered as an insurance agent of another insurer or broker.
(6) No insurer or broker shall appoint an insurance agent under any
registered insurance agent without an exemption order from his previous
registering insurer or broker;
Provided, however, that if an agent submits an application for
resignation to the insurer or broker and there is no debt owed to him, the
insurer or broker shall issue a discharge order to him within 15 (fifteen)
days from the date of submission of said application.

Recruitment 125 (1) An insurer carrying on life insurance business shall appoint a
of person or statutory body holding an insurance agent employer's certificate
Insurance issued by the Authority to act as an insurance agent employer for the
Agents purpose of soliciting life insurance business or collecting business.
(2) The Authority shall by regulations prescribe the qualifications and other
conditions for the issue of insurance agent recruiter's certificate and the
period of validity of the certificate, the registration fee and renewal fee and
the manner of payment of similar fees.

An 126 (1) An insurer carrying on non-life insurance business may employ an

insurance insurance broker holding an insurance broker's license issued by the
broker shall Authority.
be a (2) No insurance broker other than the company shall be eligible for
licensee licence
(3) The Government shall by rules prescribe, inter alia, the amount of
paid-up capital, eligibility, composition, registration fee and renewal fee
and the manner of payment of license issue fee and the requirements for
issue, renewal and delay or cancellation of licence.
(4) It shall be unlawful for any person to carry on the duties of a broker in
non-life insurance business, to describe or cause himself to be an
insurance broker, or to give or pretend to be an insurance broker, unless
he holds a valid license issued by the Authority.

Licensing 127 (1) No person other than an insurance surveyor licensed under this
of section shall survey, assess or adjust any loss in connection with the non-
insurance life insurance business in Bangladesh and no insurer shall make any
surveyors claim in connection with the non-life insurance business transacted within
Bangladesh by any person licensed under this section. No payment will
be made unless the loss has been surveyed, assessed or adjusted by the
insurance surveyor.
(2) An application for a license under this section shall be made to the
Authority in the manner and with such fee as may be prescribed by the
rules.
(3) Insurance surveyors shall, as prescribed by rule, be divided into
different sub-classes and if such class is divided, separate applications
shall be made for each such sub-class and separate licenses shall be
issued.
(4) The Authority may, on receipt of an application under this section,
direct the applicant to give such information and explanation as it thinks
fit, or to appear before the Authority in person, and if the Authority is
satisfied that the applicant has fulfilled such conditions as may be
prescribed and is fit to obtain the license applied for, -Shall grant such
license subject to the provisions of section (7).
(5) If an applicant is rejected for a license of any sub-category under this
section, he shall not be entitled to make a fresh application for a license of
the same sub-category before the expiry of 1 (one) year from the date of
such rejection.
(6) In the case of an individual applicant, he himself and in the case of a
company or firm applicant, any of his directors or partners shall not fulfill
any of the following disqualifications:
(a) the person is a minor;
(b) is a naturalized person declared by a court of competent jurisdiction;
(c) has been convicted by a court of competent jurisdiction of having
committed an offense of embezzlement or breach of trust or cheating or
forgery or aiding and abetting a similar offence;
 Provided that if a person has been convicted of any such offence, the
authorities shall not prevent the conviction of the person from making
such an application after the expiry of 5 (five) years from the date of
conviction or in the case of imprisonment with or without fine, from the
date of release. Can be announced
(d) in the course of any legal proceedings in respect of any policy of
insurance or winding up of any insurance company or in the course of any
investigation relating to the affairs of the insurance company, if it appears
that such person has committed any fraud, dishonesty or
misrepresentation with any insurer or insured; Accused of knowingly
participating in or aiding and abetting in or similar activities
(7) A license issued under this section shall remain in force for 1 (one)
year from the date of issue and subject to fulfillment of the conditions
prescribed by the rules, the said license shall be renewed.
(8) If the authority refuses to grant or renew a license under this section, it
shall inform the applicant in writing of its decision with the reasons for
refusal within 3 (three) months from the date of application.
(9) Every surveyor and damage assessor shall observe such code of
conduct as may be prescribed by regulations in respect of their duties and
responsibilities and other professional matters.
(10) Where it appears that an insurance surveyor, if an individual, or any
of his directors or partners in the case of a company or firm, has any of
the disqualifications prescribed under sub-section (6) without prejudice to
any other penalty and if to the satisfaction of the Authority It is proved that
the insurance surveyor -
(a) has furnished a false report; or
(b) has grossly overstated or understated any damages; or
(c) any damages are unreasonably excessive;
In that case, the authority may cancel the license or licenses held by the
said surveyor:
Provided that if any license is canceled under this section by the
discretionary power of the Authority and an application is made to the
Government in this regard, the Government may require a report from the
Authority in view of such application and may, after considering the report
and hearing the applicant, issue appropriate directions to the Authority.
(11) The Authority may issue duplicate licenses in lieu of lost, damaged
and mutilated licenses so issued under this section on payment of the
prescribed fee.
(12) Any person who violates the provisions of this section shall be
punished with a fine not exceeding 1 (one) lakh rupees; And if the violator
is a company, every director, manager, secretary or any other officer of
the company, who is knowingly responsible for such violation, shall be
 fined not more than 50 (fifty) thousand taka, without prejudice to the
measures taken against them in any other proceedings.

Second 128 (1) If the Authority has reason to believe that any insurance surveyor
survey has filed a false report or has grossly over-estimated or under-estimated
any loss or has adjusted any loss in an excessively unreasonable manner,
the Authority may, by any other surveyor or surveyors authorized by it,
make a further assessment of that loss. May direct the insurer to carry out
the survey
(2) In the case of a second survey under sub-section (1) the surveyor or
surveyors shall send a copy of their report to the Authority; The Authority
may cancel the license of the concerned first surveyor in accordance with
the provisions of this Act after considering the report and giving
opportunity to the first surveyor to present his statement and the Authority
may give such necessary directions to the insurer on the basis of the
report of the second survey in the interest of the policyholders:
Provided that the second surveyor shall be appointed within a maximum
of 45 (forty five) days after the first surveyor submits the report with
acknowledgment of receipt sent to both the insurer and the insured and
the survey shall be completed within the time prescribed by the authority.

Power to 129 For the purpose of ensuring compliance with the provisions of
ensure Sections 58, 59, 62, 63, 124, 125, 126, 132, 135, 138 and 139, the
compliance Authority may by notice—
with certain (a) any insurer or insurance agent may direct the recruiter or insurance
provisions agent or insurance broker or insurance surveyor to send the necessary
information, certified by the auditor or actuary if the authority considers it
necessary;
(b) may give such directions to the insurer as it may think necessary;
(c) may direct any insurer, insurance agent recruiter, insurance agent,
insurance broker or insurance surveyor to produce for examination any
books of accounts, registers or other documents at its head office in
Bangladesh or to file any particulars specified in the notice.

CHAPTER FIVE
Crime and Punishment

Imposition 130 (1) If any person under this Act or the rules and regulations made
of Penalty thereunder—
for Failure (a) fails to file statements, accounts, returns or reports with the authorities;
to Comply (b) fails to comply with instructions;
with or
(c) fail to maintain solvency margin;
Violation of
this Act (d) fails to comply with instructions to perform the insurance contract; or
 (e) fails to comply with the instructions to execute the reinsurance contract
within the prescribed period,
If so, he shall be fined not more than 5 (five) lakh rupees for each failure
and an additional fine of 5 (five) thousand rupees per day if the violation
continues.

Penalty for 131 If any person makes such statement or files any document,
furnishing statement, account, return or report which he believes or believes to be
false false and untrue, he shall be punished with imprisonment for a term not
information exceeding 3 (three) years. Or shall be punished with a fine not exceeding
in 5 (five) lakh rupees or both.
documents,
statements,
accounts,
returns etc

Penalty for 132 If any person violates the provisions of section 8, 23, 41, 43, 46 or
carrying on 119, he shall be fined not more than 5 (five) lakhs for each such violation.
insurance
business in
contravention
of certain
sections

Misleading 133 Any person shall be guilty of an offense and shall, on conviction,
statements, attempt to induce any person to enter into a contract of insurance with any
assurances insurer by any such statement, assurance, forecast, or knowingly to be
or fraudulent, or by fraudulent pretense, which he knows to be misleading,
predictions false or fraudulent. shall be punished with a fine of Taka 10 (ten) lakhs or
intended to imprisonment for a term not exceeding 3 (three) years or both.
induce the
execution
of a
contract of
insurance

Personal 134 Unless otherwise provided in this Act, any director, shareholder, chief
penalties executive officer, manager or other officer or broker or partner, surveyor or
for failure any other officer or agent or insurance agent of any insurer fails to comply
to comply with any provision of this Act or the said provision Violation and any
with the person knowingly associated with the violation shall be fined a maximum
provisions of 1 (one) lakh taka and a minimum of 50 (fifty) thousand taka and if the
of the Act violation continues, an additional fine of not more than 5 (five) thousand
or for acts taka per day during the period of the violation.
of violation
Illegal 135 (1) If any director or any other officer or employee of the Insurer
acquisition wrongfully acquires or willfully takes possession of any property of the
and Insurer or uses it for any purpose other than the purpose described or
possession permitted under this Act, on the complaint of the Insurer or any member or
of property policyholder of the Insurer about his attitude to the Insurer. shall be liable
to a fine of 15 (fifteen) lakhs upon giving at least 15 (fifteen) days' notice
and the judicial court may order the return of such property wrongfully
acquired or wrongfully occupied or willfully misappropriated within such
period as may be prescribed and in default not more than 2 ( Two) years
imprisonment shall be given
(2) For the purposes of this section the assets of the statutory life
insurance fund maintained by the insurer shall be deemed to be the
assets of the insurer concerned.

Power of 136 (1) If any court authority or an administrator appointed under section
court to 95 or an insurer or any member of an insurance company or a liquidator
order of an insurance company (in the case of a company in liquidation) on
recovery of application is satisfied that—
insurer's (a) any insurer (including any person connected with the organization and
property or formation of the said insurance company or any former or present
compensation director, managing director, manager, secretary or successor) or any
in certain officer, employee or insurance agent of the insurer;
cases
(b) misappropriates or misappropriates the money or property of any
insurer or incurs liability or incurs liability therefor, or
(a) the insurer has been accused of wrongful performance of any lawful
act or breach of trust;
(b) any person, who is or was in any way connected with the business of
the insurer, wrongfully takes possession of any money or property of the
insurer or wrongfully takes possession of the said money or property or
converts it to any use other than that of the insurer, or
(c) the amount of the life insurance fund is reduced by reason of
contravention of the provisions of this Act; In such case the court may
examine any such insurer, director, manager, managing agent, secretary
or trustee or such other officer, employee, insurance agent or any other
person as may be applicable and indemnify such misappropriation, right
or wrongful act or breach of trust as the court thinks fit. as may compel the
insurer to pay such amount to his assets or, as the case may be, compel
him to restore any money or assets of the insurer or any part thereof, and
if the amount of money in the life insurance fund is reduced by reason of
contravention of any provision of this Act, The court shall have power to
determine the amount of the reduction and to order the person guilty of
such violation to pay the whole or part of the said money to the insurance
fund as compensation; and in each case aforesaid the Court shall have
power to order the payment of interest at such rate and for such period as
it may think fit.
(2) Without prejudice to the provisions of sub-section (1) or sub-section
(3), when it is proved that any money or property of any insurer has
disappeared or been lost, the court shall presume that the said Every
person in charge of money or property (whether he is a director,
managing director, manager, chief executive officer or any other officer) in
accordance with sub-clause (b) of clause (a) of sub-section (1) of the said
money or is liable for the destruction or loss of property and in that context
the provisions of the same sub-section shall be equally applicable, unless
such person can prove that,that the money or property concerned has
been used or distributed in the course of the insurance business of the
Insurer and has taken all reasonable steps to protect the money or
property from being lost or stolen and can provide any other satisfactory
account of the loss or loss of the money or property.
(3) If the insurer is an insurance company and any of the acts described in
clauses (a), (b) and (c) of sub-section (1) are performed by any person of
that insurance company, every person who at the relevant time is the
insured was acting as a director, managing director, manager, trustee,
secretary or other officer of the company shall, for the purposes of this
sub-section, be deemed to be liable in the same manner and to the same
extent as a person who performed those functions; unless he can prove
that the said incident took place without his permission or cooperation and
was not caused by any negligence or fault on his part.
(4) At any stage of the proceedings against any person (hereinafter
referred to as the accused) under this section, if the Court is satisfied, by
affidavit or otherwise, that a prima facie case has been established
against the accused person; And if there is a proper and equitable basis
to protect the interests of the insurer's insurance policy customers or the
members of the insurance company, then the court shall order the croc as
under:-
(a) the property of the insurer in the possession of the accused;
(b) any property owned by the accused person which is in his possession
or deemed to be in his possession within the meaning of sub-section (5);
(c) have the power to seize any property transferred by the accused within
2 (two) years before the commencement of the proceedings under sub-
section (1) or during the course of such proceedings, if the Court is
satisfied to that effect by affidavit or otherwise. That the transfer was not
made in good faith or at fair value
(5) For the purposes of sub-section (4), the following classes of property
shall be deemed to belong to the accused, namely:-
(a) any property in the name of any person appears to belong to the
accused person by reason of consanguinity or any other relevant reason;
(b) owned company property, in which case the accused person directly or
indirectly through the accused person himself or his nominated relatives,
partners or persons interested in shares of the company is entitled to
exercise or assume its control.
Explanation:- For the purposes of this sub-section a person shall be
deemed to be a nominee of an accused person if he directly or indirectly
acquires on behalf of the accused person or at the direction of the
accused person a power by which the accused person is entitled to
control the affairs of the company.
(6) Any claim to any property attached under this section or any objection
to the attachment shall be made by written application to the court; And
the claimant or objector shall show evidence that the said property is not
subject to attachment under this section and the court shall proceed to
investigate the said claim or objection summarily.
(7) The court, while disposing of an application under sub-section (1),
shall, after giving an opportunity to all such persons to present their views
in respect of the interest in the property which has been encroached
upon, for the proper execution of any liability under this section, in relation
to the distribution of the said property which may make such order as it
deems necessary and all such persons under this section shall be
deemed to be parties to the said proceedings.
(8) In all proceedings under this section this Court shall have full power
and sole jurisdiction to decide questions of any nature whatsoever,
particularly in respect of property attached under this section, and no
other court shall have jurisdiction to decide the question in any suit or
other legal proceeding. .
(9) In passing an order for disposal of the property of any company owned
by a person referred to in paragraph (b) of sub-section (5), the court shall
give due consideration to the interests of all persons other than the
accused persons mentioned in that section and the persons mentioned in
that paragraph in the said property.
(10) The Court shall have all the powers conferred by the Companies Act
to take proceedings under this section
(11) In the case of the insurance company or co-operative insurance
society mentioned in the third chapter, the provisions of this section shall
be applicable in the same manner as in the case of the insurer.
(12) The jurisdiction of proceedings under this section shall be in the High
Court Division and any proceeding pending in this matter in a court other
than the High Court Division immediately before the coming into force of
this Act shall be transferred to the High Court Division after the coming
into force of this Act.
(13) For the purposes of this section the Supreme Court may make rules
as follows, namely-
 (a) the procedure for conducting investigations and proceedings under
this section; And
(b) any or all matters relating to the effective regulation of its jurisdiction
under this section

Notice to 137 (1) When an application is made to the Court for an order under this
Authority section and if the Authority itself has not made the application and is not a
and party to the suit, the Court shall notify the Authority of a copy of the
Hearing application together with the date of hearing of the application and shall
give the Authority an opportunity of hearing.
(2) The provisions of this section shall apply to the following orders,
namely:-
(a) an order under section 23 or section 119 to decrement any money
deposited;
(b) an order made under section 25 or section 110 for the refund of any
such deposit;
(c) an order approving any arrangement for transfer or amalgamation of
life insurance business or any other order made in pursuance of this
order;
(d) orders for winding up of insurance companies or mutual insurance
companies or co-operative insurance societies;
(e) an order under section 109 approving a scheme for the partial winding
up of an insurance company;
(f) orders passed by insurance companies or mutual insurance companies
or cooperative insurance societies for reducing the amount of insurance.

Prior 138 (1) No proceedings shall be instituted against the insurer or any
approval of director, manager or other officer thereof or any person liable under this
Attorney Act unless he has obtained the prior approval of the Attorney General to
General in institute such proceedings unless proceedings have been instituted by the
filing authority.
proceedings (2) The provisions of this section shall apply to mutual insurance
companies and co-operative insurance societies as defined in Chapter III
as well as to insurers.

Power of 139 If, after the hearing of any civil or criminal case, the Court finds that
court to any person has been or was liable for negligence, malpractice, breach of
grant duty or breach of trust, but he has acted honestly and reasonably and in
remedy the totality of the case, he shall not be liable for the said negligence, fault,
breach of trust. The court may grant full or partial relief to him from the
said liability on proper discretionary terms
Criminal 140 (1) No court shall entertain any case under this Act except on the
prosecution written complaint of the Chairman of the Authority or any officer
and trial empowered by him.
(2) Notwithstanding anything contained in the Code of Criminal
Procedure, offenses under this Act shall be triable by a Magistrate of the
First Class or, as the case may be, by a Metropolitan Magistrate.

Commissibility 141 Offenses under this Act shall be non-cognizable, bailable and
and compoundable.
bailability
of offences

আপীল৷ 142 (1) An appeal shall lie to a court of competent jurisdiction against any
of the following orders, namely:-
(a) refusing an application for registration of an insurer or ordering
cancellation of registration under sections 8 and 10;
(b) an order directing the change of name of the insurance company
under section 15;
(c) an order under section 124, 125, 131 or 138 to cancel the license of an
insurance agent or an insurance broker or an insurance surveyor or to
strike off the name of an insurance agent from the registrar of insurers;
(d) any order made in winding-up or insolvency proceedings of the
insurer;
(2) For the purposes of sub-section (1), the court having jurisdiction shall
be the chief court having civil jurisdiction within whose local jurisdiction
the head office of business of the insurer concerned is situated.
(3) An appeal against any order passed under sub-section (1) shall lie to a
court having jurisdiction and the decision of such appeal shall be
considered final.
(4) No appeal under this section shall be admissible unless the appellant
files the appeal within 4 (four) months of the receipt of the order relating to
the appeal.

CHAPTER SIX
Misc

Delegation 143 The Authority may by general or special order delegate any of its
of powers powers and duties under this Act in favor of any person subordinate
and duties thereto, any powers and duties so delegated shall be subject to
of authority restrictions, limitations and conditions, if any, imposed by the Authority
and shall be subject to the control of the Chairman. And shall be subject
to amendment
Signing of 144 All such documents shall be signed by the Chairman of the Authority
documents or any person subordinate to him or by any officer empowered under sub-
section (2) of section 125 or sub-section (4) of section 127 under this Act
or the rules made thereunder by such chairman of the authority. or
bearing a facsimile printed, engraved, lithographed or impressed by any
other mechanical method approved by the Government of the signature of
the officer shall be deemed to be duly signed.

Notice 145 (1) Where any process or summons is to be served on an insurer or

issued mutual insurance company or co-operative insurance society, the said
process or summons shall be served with the authority in the name of the
person authorized to receive it on behalf of the insurer or mutual
insurance company or co-operative insurance society and at his address
registered with the authority. Such process or summons shall be deemed
to have been duly issued if delivered or sent by post to the Registry.
(2) Any notice or other document to be sent to an insurance policy
subscriber under this Act shall ordinarily be sent to the address of the
person to whom the notice relating to the insurance policy is sent and the
notice so sent shall be deemed to be a notice given to the insurance
policy subscriber concerned:
Provided, however, that in cases where any person has notified the
insurer or mutual insurance company or cooperative insurance society by
written notice claiming to be interested in any policy by reason of transfer,
appointment or nomination, the notice sent to the insurance policy
subscriber under this Act shall also be sent to such persons.

Power to 146. For the purposes of this Act, the Government may, by notification in
make rules the Official Gazette, make rules relating to Islamic insurance and other
matters.

Power of 147 The Government may, by notification in the Official Gazette, amend
Government the Schedule as it deems necessary.
to amend
Schedule

Power to 148. The Authority may, with the approval of the Government, make
make regulations by notification in the Official Gazette, subject to the provisions
regulations of this Act and any rules made thereunder, for carrying out the purposes
of this Act.

Disclosure 149 The Authority shall cause to be published every year a summary of
of the accounts, statements, statements, summaries and any other returns
Summary under this Act in such manner as may be prescribed and may attach to
of Returns such summary any annotations of the Authority.
Information 150 (1) Any person empowered in that capacity to attempt or negotiate a
and contract of insurance by the insurer or the broker or the employer of the
statements insurance agent, as the case may be, shall in each case be deemed to be
of the the agent of the insurer for the performance of the contract and the risk to
authorized the purchaser of the insurance policy. All matters known to the said
agent are person in relation to acceptance shall be deemed to be known to the
deemed to insurer
be
(2) If any such person makes any statement or does any act as an agent
information for the purpose of executing the contract, the said statement or act shall
and be deemed to have been given or done by the insurer notwithstanding the
statements violation of section 145 or any other provision.
of the
insurer or (3) The provisions of this section shall not apply in the following cases,
broker or namely:-
appointing (a) where there is collusion or inducement between the said person and
agent. the purchaser of the proposed insurance policy to enter into the contract
of insurance;
(b) where such person is no longer an agent and the insurer has taken all
reasonable steps to inform prospective policyholders and the public of
such person's non-agency.

Subject to 151 The provisions of this Act shall not affect the compliance with the
the provisions of the Companies Act by any insurer or mutual insurance
provisions company or co-operative insurance society as defined in Chapter III as a
of the company in matters not specifically provided for in this Act.
Companies
Act

Inspection 152 Any person may inspect the documents submitted to the authority
and supply under clause (h) of sub-section (5) of section 8 on payment of the fee
of copies of prescribed by the rules and may obtain a copy of such document or part
published thereof on payment of an advance fee at the rate prescribed by the rules.
prospectus
etc

Determination 153 According to the provisions of this Act, the market value of the
of market securities deposited in Bangladesh Bank on the date of payment shall be
value of determined by Bangladesh Bank and the decision of Bangladesh Bank in
securities this regard shall be final.
deposited
under this
Act

Advisory 154 The Authority shall, subject to consultation with the Government,
Committee constitute an Advisory Committee in such manner as may be prescribed
 by regulations to give advice in the discharge of its duties under this Act
and shall prescribe its procedure.

Taxation on 155 The Government may, from time to time, by order in the Official
net Gazette, levy and collect a tax on the annual net premium income of
premium every insurer and the rate of such tax shall not exceed one-half percent of
income the annual net premium.

Insurance 156 (1) The Authority shall constitute a fund called “Life Insurance
Policy Consumer Security Fund”. In consultation with the government, the
Consumer amount collected from the levy collected from the insurers engaged in life
Security insurance business will be credited to this fund.
Fund, etc (2) The money deposited in the fund shall be used for the general security
of life insurance subscribers and for such other purposes as may be
prescribed by regulations.
(3) Such money retained in the Fund as is not immediately used for the
purposes of sub-section (2) shall be invested by the Authority in such an
efficient manner as to obtain the maximum return and secure the
investment.

Statistics 157. (1) The Authority shall collect statistical information on insurance
related matters from time to time in the manner prescribed by the
regulations and the rules for the collection of such information and its use
in insurance related or non-insurance related matters shall be included in
the regulations made under this section.
(2) Notwithstanding anything contained in sub-section (1), regulations
made under this section shall include provision for the transmission by
insurers, insurance brokers and surveyors, in the prescribed tables, to the
authorities of any prescribed information.
(3) Any similar information collected by or on behalf of the Authority shall
not be disclosed under this section in such a manner as to reveal the
activities of any particular person.

Confidentiality 158. Except for the purposes of this Act and for the purpose of any
criminal proceedings under this Act, no person appointed to exercise
powers under this Act shall disclose any information collected in the
performance of his duties relating to the activities of any business or
insurance participant unless disclosed under this Act.

Publication 159. (1) The Government shall, not later than 2 (two) years after the
of English commencement of this Act, by notification in the Official Gazette, publish
translation an authentic English text of the Bengali text of this Act.
of Act (2) In case of conflict between the Bengali text and the English text, the
Bengali text shall prevail
 CHAPTER VII
Revocation and Custody

Revocation 160 (1) The Insurance Act, 1938 (Act IV of 1938), hereinafter referred to
and as the repealed Act, is hereby repealed.
Custody (2) Notwithstanding such repeal, under the repealed Act—
(a) Insurers or companies or associations registered for carrying on life
insurance business or general insurance business until the expiry of the
certificate of registration in accordance with the provisions of this Act or
the expiry of 6 (six) months from the commencement of this Act,
whichever is earlier, life insurance business and shall be deemed to be a
registered insurer for the purpose of carrying on non-life insurance
business;
(b) any person employing licensed insurance agents and certified
insurance agents shall be deemed to be registered insurance agents and
employing certified insurance agents in accordance with the provisions of
this Act;
(c) every insurance surveyor holding a valid certificate issued by the Chief
Insurance Controller shall, until the expiry thereof, be deemed to be an
insurance surveyor under this Act;
(d) any suit or other legal proceeding instituted by or against the Chief
Insurance Controller shall be deemed to be a suit or proceeding instituted
or instituted by or against the Authority;
(e) any judgment, order or award passed by any court, tribunal or other
body in any proceeding, matter or suit in favor of or against the Chief
Insurance Regulator, if subsisting on the date of the enactment of this Act,
any judgment order issued or executed in favor of or against that authority
from that date; or shall be deemed to be an award and shall continue in
force and effect accordingly;
(f) the rate of premium approved by the Chief Insurance Regulator shall
remain in force, unless re-fixed or varied or repealed under this Act; And
(g) any rule or regulation made shall, subject to its consistency with the
provisions of this Act and until repealed or amended, remain in force and
be deemed to have been made under this Act.

1
Sub-sections (4) and (5) were added by section 63 of the Financial Reporting Act, 2015 (Act No. 16 of 2015).

Copyright © 2019, Legislative and Parliamentary Affairs Division

Ministry of Law, Justice and Parliamentary Affairs