The government is planning to introduce insurance for ordinary citizens as a measure to increase insurance penetration in the country.
Finance Minister AHM Mustafa Kamal proposed the plan in the new budget placed in parliament for the next fiscal year.
In the budget speech, the minister said small insurance for poor women and health insurance for government employees and ordinary people will be introduced.
The government plans to digitize the insurance sector and increase its rate of penetration, the minister said in his budget speech.
“I believe the use of life insurance is not very prevalent in our country. Popularising life insurance may contribute to our economy to a great extent,” said the minister.
Currently, 32 insurance companies are operating in the country and insurance penetration is less than 1 percent, according to the Insurance Development and Regulatory Authority (IDRA).
The number of life insurance policyholders is around 1 crore, according to IDRA.
Measures will be taken to arrange group insurance, if necessary combining more than one company. Insurance for ‘loss of profit’ will also be introduced. Accident insurance for factory workers will be implemented.