Govt Nods Forming Ins Company to Cover All Public Servants

With the intention of providing all public employees with insurance coverage, the government has approved the establishment of a separate insurance firm.

The firm, which will report to the Bangladesh Employees Welfare Board, will be created by the Ministry of Public Administration.

The ministry has asked secretaries, divisional commissioners, deputy commissioners, and upazila nirbahi officials for their opinions on this matter by August 27 in a letter.

The letter claims that clauses in the Bangladesh Employee Welfare Board Act allow for the creation of a unique insurance business just for public employees.

On February 15, at a board meeting, all relevant material was provided.

The discussion covered a wide range of topics, including the need for and justification for establishing a stand-alone insurance firm, suggestions from Jiban Bima Corporation, and advantages and drawbacks.

An independent insurance company's formation and the hiring of an insurance industry specialist as a consultant were both approved in principle at the meeting.

Following the approval, the Ministry of Public Administration received a proposal to establish the insurance firm and has since requested the opinions of those involved.

The issue affects both central and field-level government officials and employees, according to the ministry, thus it is imperative to consider the views of all governmental bodies and stakeholders.

However, the Ministry of Finance's Financial Institutions Division must approve the creation of a new insurance firm.

In the previous term of the Awami League administration, a similar decision was made to provide insurance to all government employees. 

The insurance provider for the government, Bangladesh Jiban Bima Corporation, was supposed to handle this insurance.

At that time, it was determined that every employee would get insurance coverage, along with up to six members of their families. The spouse, two children, and parents or in-laws made up this group of six people. 

The strategy ultimately did not work out though. 

The concept was brought up once more in 2020 during the Covid-19 era, but it was abandoned because the Ministry of Finance was concerned about excessive premium expenditure. 

Later, the government made a one-time financial aid announcement for the families of government personnel and officials who passed away from Covid while performing their duties.