The "Bangabandhu Shikkha Bima", introduced in honour of Bangabandhu Sheikh Mujibur Rahman on his birth centenary, will be operated through school banking.
No service charge will be taken for this insurance, says a directive issued by the financial inclusion department (FID) of Bangladesh Bank on Sunday.
The directive has been sent to the chief executives of all the banks in the country, says a press release.
The Insurance Development and Regulatory Authority (IDRA) has already started work on the implementation of 'Bangabandhu Shikkha Bima' under the direction of the government. Jibon Bima Corporation will act as the insurer for this insurance.
The circular said, "The financial transactions of Bangabandhu Shikkha Bima will be completed through the school banking accounts of the students. No service charge can be taken for this. At the same time, students need to be encouraged to open school banking accounts and continue transactions."