July 9, 2011| Posted by arafatsohan under Uncategorized | No Comments | Insurance is a system of spreading the risk of one to the shoulders of many and which is a legal contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. Insurance is not a new business in the Bangladesh it almost a century back, during British rule in India, some insurance companies started transacting business operation , both life and general, in Bengal. Insurance business enlarged momentum in East Pakistan during 1947-1971, when there are 49 insurance companies transacted their business operation both life and general insurance schemes and these companies were of various beginnings with British, Australian, Indian, West Pakistani and local. Then ten (10) insurance companies had their head offices in the East Pakistan, 27 in West Pakistan, and the rest elsewhere in the world. These were mostly limited liability companies and some of these companies were specialized in dealing in a particular class of business, while others were composite companies that dealt in more than one class of business. The Government of Bangladesh (BD) nationalized the insurance industry in 1972 by the Bangladesh Insurance (Nationalization) Order 1972. By virtue of this order, save and except postal life insurance and foreign life insurance companies, all 49 insurance companies and organizations transacting insurance business in the country were placed in the public sector under five corporations. These insurance corporations were given below- Jatiya Bima Corporation
Tista Bima Corporation
Karnafuli Bima Corporation
Rupsa Jiban Bima Corporation
Surma Jiban Bima Corporation.
The Jatiya Bima Corporation was the top corporation only to supervise and control the activities of the other insurance...