Bangladesh becomes a developing country. Infrastructural, economic and industrial developments are carried out by both private and public sector simultaneously. All the works are carried out with fund, goods and services. Hence, worry and fear are present there in terms of protecting the sources of investment funds. But how all these jobs could be done? It is possible by proper development of Insurance sector and collateral development by banking and other financial works.
It is said that Banks and Insurance sectors are twin pillars. Banks can invest money to the people but insurance would protect the properties and money of the people. So it must have to be believed that the insurance industry has become the vital sector to focus on the country’s economic growth. Insurance is required to make good fortuitous losses, to remove worry and enhancement of credit etc.
Major hurdles on the way to wider expansion of Insurance industry are unethical competition, insufficient patronization of government, lack of conscious people, lack of proper entrepreneurship quality in insurance industries and unskilled manpower in insurance sector.
Proper planning, continuous motivational training etc. are requiredfor development of insurance sector. However, IDRA is doing better in comparison to the time as we have passed. They are trying their best to control the unethical practices in insurance industries.
Conventional insurance is based on uncertainty or ambiguity and Takaful insurance is a profit-sharing business venture. Conventional insurance means a contract through which one party/or persons transfer their risks to other instead of some price which is called ‘premium’.
