Types of Insurance In Bangladesh
Insurance is crucial, as it helps protect people and businesses from financial losses due to unforeseen circumstances. There are a variety of different types of insurance available in Bangladesh, ranging from life insurance to general insurance, Islamic insurance, and more. In this article, you will explore the various types of insurance available in Bangladesh and discuss the benefits of each. You will also get guidance on how to choose the right type of insurance for your needs and budget.
What is insurance
Insurance is a financial product that provides protection against losses resulting from unexpected events. It is a risk-management tool that provides financial compensation for losses caused by accidents, fire, illness, death, natural disasters, and other unexpected events. Insurance helps protect individuals and businesses from financial losses due to unforeseen circumstances. Insurance policies are usually purchased from insurance companies and can cover everything from health care to travel medical issues.
Types of insurance companies and aggregators in Bangladesh
In Bangladesh, there are both insurance companies and insurance aggregators that provide a range of products and services to individuals and businesses. Insurance companies offer a variety of products, including life, health, motor, and travel insurance. These companies are overseen by the Insurance Development and Regulatory Authority, which regulates the insurance industry. Insurers in Bangladesh include Pragati Life Insurance, Metlife, Sunlife Insurance Company Ltd, Popular Life Insurance Co Ltd. (PLICL), Delta Life Insurance Co Ltd., and more.
Insurance aggregators are also popular in Bangladesh, offering customers the ability to compare and purchase policies from a variety of providers. These aggregators provide an easy way to compare services and prices and often offer discounts to customers. Popular aggregators in Bangladesh include Carnival Assure, InsuranceDekho, PolicyBazaar, and EasyInsurance.
Types of Insurance In Bangladesh
There are various types of insurance available in Bangladesh, including life, health, motor, vehicle, travel, and business insurance. Let’s discuss the different types of insurance available in Bangladesh according to Bangladesh Bank.
Life insurance
General Insurance
Reinsurance
Micro-insurance
Takaful or Islamic insurance.
Let’s talk various types of insurance available in Bangladesh and discuss the benefits of each.
What is Life insurance in Bangladesh?
Life insurance in Bangladesh is a form of insurance that provides financial protection to the policyholder’s dependents in the event of the policyholder’s death. It is a contract between an insurer and a policyholder that pays a stated sum of money upon the death of the policyholder. Life insurance in Bangladesh is offered by many insurance companies, such as Pragati Life Insurance, Metlife, Sunlife Insurance Company Ltd, Popular Life Insurance Co Ltd. (PLICL), Delta Life Insurance Co Ltd., and more. Policies can be tailored to meet the individual needs of the policyholder, such as providing a lump sum payment, providing an income for the policyholder’s family, or providing for the payment of medical bills. Life insurance in Bangladesh is an important way for people to ensure their family’s financial security in the event of their death.
Types of life insurance in Bangladesh
In Bangladesh, there are various types of life insurance policies, such as term life insurance, whole life insurance, endowment plans, money-back plans, child plans, and annuity plans. Term life insurance plans are the most popular life insurance plans in Bangladesh, as they provide coverage for a determined period of time, usually up to 30 years. Whole life insurance plans provide coverage until the death of the policyholder and are ideal for people who wish to provide financial protection for their families. Endowment plans provide a lump sum payment at the end of the policy term or upon the death of the policyholder and are ideal for people who wish to save for the future. Money-back plans provide regular payments during the policy term, as well as a lump sum at the end of the policy term. Child plans are designed to provide financial security for the child’s future, and annuity plans are designed to provide income during retirement.
What is General Insurance
General insurance is a type of insurance that provides protection against a wide range of risks, such as health, travel, property damage, liability, and motor or car accidents. It includes many different types of insurance, such as motor, health, fire, and personal accident insurance. General insurance in Bangladesh is offered by many different insurance companies and aggregators. These companies and aggregators provide policies that are tailored to meet the individual needs of their customers. General insurance provides a sense of security to individuals and businesses, protecting them against potential losses caused by unforeseen events.
Types of General Insurance
General insurance includes a variety of different types of insurance, such as motor, health, fire, and personal accident insurance. Motor insurance covers the cost of repairing or replacing a vehicle that is damaged in an accident or stolen. Health insurance covers the cost of medical expenses for an individual or family. Fire insurance covers the cost of repairing or replacing property that is damaged by fire. Personal accident insurance covers the cost of medical expenses for an individual who is injured in an accident. Each type of general insurance provides customers with the protection they need against the risks associated with their specific situation.
What is Takaful or Islami insurance?
Takaful, or Islamic insurance, is a type of insurance that operates according to the principles of Islamic law. Takaful insurance is based on the principle of shared responsibility, whereby policyholders contribute to a fund that is used to provide financial assistance to individuals who have suffered a loss. This type of insurance is offered by a range of providers and aggregators in Bangladesh. Takaful insurance is an important way for individuals and businesses to protect themselves against unexpected losses, while also adhering to the principles of Islamic law.
What is Reinsurance in Bangladesh
Reinsurance in Bangladesh is a form of insurance that provides protection to an insurance company against losses from large, catastrophic events. It is a contract between an insurance company and a reinsurer that transfers some of the risks of a policy to the reinsurer in exchange for a premium. Reinsurance in Bangladesh is offered by both local and international reinsurers. Reinsurance is an important tool for insurance companies as it helps them manage their risk exposure and provides stability to their operations. It is also an important way for companies to ensure that they can pay out claims to their policyholders in the event of a large loss.
Number of insurance companies in Bangladesh
There are currently over 60 insurance companies operating in Bangladesh. These companies offer a variety of products, including life, health, motor, fire, and general insurance. The Insurance Development and Regulatory Authority (IDRA) is the regulatory body that oversees the insurance industry in Bangladesh. The IDRA works to ensure that insurance companies are operating in accordance with applicable laws and regulations. These companies provide a range of products and services to individuals and businesses, allowing them to protect themselves against unexpected losses.
Nowadays, 62 companies are operating under Insurance Act 2010. Out of them- 18 Are Life Insurance Companies Including 1 Foreign Company And 1 Is a State-Owned Company, and 44 are General Insurance Companies Including 1 State-Owned Company. – Bangladesh Bank
Conclusion
To sum up, insurance in Bangladesh is a necessity for any individual or business. It provides financial protection and peace of mind in the event of an unexpected event. There are a variety of types of insurance available in Bangladesh as mentioned above. Each type of insurance provides a unique set of benefits and coverage to those who purchase it. Insurance is a valuable asset that everyone should consider when planning for the future.
