Sadharan Bima Corporation is just state-owned General Insurance Corporation operational below the direct management and administration of the Ministry of Finance, Government of the People’s Republic of an Asian country. It emerged on fourteenth could, 1973 below the Insurance Corporation Act (Act No. VI) of 1973 to handle all categories of general insurance & reinsurance business was emanating in an Asian country.
After that, SBC was acting because of the individual nondepository financial institution of General Insurance until 1984. Within the year 1984 Asian country Government allowed insurance firms within the non-public sector and to it result publicized the insurance companies (Amendment) Ordinance 1984.
Sadharan Bima Corporation incorporates a terribly sturdy monetary base. It’s a market share of over twenty capitalize on the entire premium financial gain of the insurance market of the Asian country. SBC, the biggest insurance enterprise within the country, incorporates a network of Tk.605 large integer an authorized capital of Tk.20 crore, paid up capital of Tk. Ten large integer and therefore the anticipated revenue throughout this twelvemonth is around Tk. 417 crores.
Following characteristics of SBC proves its monetary soundness:-
It’s sound financial Soundness thanks to Brobdingnagian assets in hand by SBC
- Solely re-insurer in the Asian country
- The Wide network of offices
- Charitable trust
- Brobdingnagian trained & experienced workforce
- Large invest able fund
- Brobdingnagian property Assets in: Dacca, Chittagong, Khulna, Rajshahi, Bogra & Sylhet.
SBC is that the sponsoring investor of Investment Corporation of Asian country, Industrial Development and Leasing Company, National Tea Company restricted, National Housing Finance and Investment Ltd, Aramis Ltd, Central installation baccalaureate Ltd., etc.
SBC has met all prudent norms in any its financial strength. Not solely that, Sadharan Bima Corporation has emerged mutually of the country’s few largest taxpayers within the company sector.
This corporation deals with general insurance business only. In a contract of general insurance, the insurer, in consideration of premium paid by the insured, undertakes to indemnify the assured against loss or losses which may arise in certain circumstances subject to fulfillment of the conditions laid down therein.
If the assured does not suffer a loss, the question of payment of compensation by the insurer to the insured does not arise.
SBC did monopoly business in the general insurance sector till 1984 when the government decided to open it to the private sector also. Consequent upon the Government decision, sixteen private general insurance companies came into existence by 1988. But they were allowed to do private insurance business only.
As a result, SBC had to compete with private insurance companies for private insurance business but continued to do monopoly business in the public sector. But in 1990, the Government directed SBC to distribute 50% of the public sector insurance business among the private insurance companies equally as demanded by them.
As a result, SBC continued to underwrite 100% public sector insurance business but could retain only 50% thereof.
In 1996, the Government allowed eight more private companies to underwrite general insurance business.
Recently, the Government allowed 19 more private companies to do general insurance business with the result that the total number of private companies doing general insurance business would new be 43.
As per the decision of the Government, SBC has been distributing 50% of the public sector insurance business among the private insurance companies equally since 1990 for their healthy financial growth.
On the other hand, private companies have been doing 100% reinsurance business with SBC, although they have the option to place 50% of their reinsurance business with other reinsurance companies within or outside Bangladesh.