A Comparative Study On Insurance Act 1938 And Insurance Act 2010

A Comparative Study On Insurance Act 1938 And Insurance Act 2010

A RESEARCH MONOGRAPH

ON

A COMPARATIVE STUDY ON INSURANCE ACT 1938 AND INSURANCE ACT 2010

 

 

A Dissertation Submitted to the Department of Law, University of Rajshahi in the fulfillment of the requirements for the Degree of Masters of Law

 

By

Roll No. 11109046

Reg. No. 2551

Session: 2010-2011

 

DEPARTMENT OF LAW

UNIVERSITY OF RAJSHAHI

RAJSHAHI, BANGLADESH

July, 2016

 

 

 


DECLARATION

 

 

I do hereby declare that this dissertation entitled “A Comparative Study on Insurance Act 1938 and Insurance Act 2010” submitted to the Department of Law, University of Rajshahi, Bangladesh, for the partial fulfillment of the degree of Masters of Law is an original work carried out by me. No part of this work, in any form, has been submitted to any other academic institution for academic award or elsewhere for publication.

 

 

Roll No. 11109046

Reg. No. 2551

Session: 2010-2011

Department of Law

University of Rajshahi

Rajshahi

 

 



ACKNOWLEDGEMENT

 

Eternal thanks to Almighty Allah, the Merciful, Who made it possible for me to complete this piece of work successfully.

I render my gratitude and appreciation to my supervisor for intellectual guidance, cooperation and all out support from initial phases of framing ideas and designing structures of the research project to the final product as dissertation. I express my profound gratitude to all respected teachers of the department of Law.

To complete the dissertation, I have taken assistances from a number of advisors, colleagues, friends, organizations and groups. It would have been quite difficult for me to prepare the dissertation without having help from them at different phases of conceptualizing and writing process. I have to acknowledge their contribution.

I have taken assistance from Central Library of the University of Rajshahi, Seminar library of Department of Law of University of Rajshahi, Bar Library of Rajshahi Court. Besides this I am grateful and thankful to my parents and all my friends, without their support it would be impossible for me to complete the work.



 

ABSTRACT

 

The Insurance Act of 2010 has enacted by repealing back dated British law of 1938. When comparison is made between the two laws, several new points are found in the new law but still the law has some lacunas. The new law cannot mitigate the modern challenges like mobile or health insurances. In the present ICT era to meet up the demands of the society the law should be revised.

 

 

 


 

GLOSSARY

Insurance:

Insurance is a contract where one party undertakes in return of consideration called premium to pay to the other party a certain sum of money on the happening of a certain event or to indemnify the other party against a loss arising from the risk insured.

Insurer:

Any individual or unincorporated body of individuals or body corporate incorporated under the law of any country other than Bangladesh, carrying on insurance business not being a person specified in this clause which-

  • Carries on that business in Bangladesh, or
  • Has his its principal place of business or is domiciled in India ,or with the object of obtaining insurance business or is domiciled in Bangladesh ,or
  • With the object of obtaining insurance business, employs a representative, or maintains a place of business, in Bangladesh;

Anybody corporate (not being a person specified in sub –clause (c) of this clause) carrying on the business of insurance, which is a body corporate incorporated under any law for the time being in force in Bangladesh; or stands to any such body corporate in relation of a subsidiary company.

Policy holder-includes a person to whom the whole of the interest of the policy –holder in the policy is assigned once and for all, but does not include an assignee thereof whose interest in the policy is defeasible or is for the time being subject to any condition.

 


 

 

 

ABBREVIATION

 

 

FIs              –       Financial Institutions

CAMD       –       Capital Adequacy and Mercantile Discipline

IRA            –       Insurance Regulatory Authority

SBC            –       Sadharan Bima Corporation

 


CONTENTS

Declaration ……………………………………………………………………………………………………. i

Acknowledgement………………………………………………………………………………………… ii

Abstract ………………………………………………………………………………………………………. iii

Glossary ………………………………………………………………………………………………………. iv

List of Abbreviations ……………………………………………………………………………………. v

Contents………………………………………………………………………………………………… vi-viii

 

Chapter 1: Introduction……………………………………………………………………… 1-7

1.1 Introduction………………………………………………………………………………………… 1

1.2 Statement of the problem……………………………………………………………………… 3

1.3 Objectives…………………………………………………………………………………………… 3

1.4 Scope…………………………………………………………………………………………………. 3

1.5 Literature Review………………………………………………………………………………… 3

1.6 Sources of Data……………………………………………………………………………………. 6

1.6.1 Primary Source……………………………………………………………………………… 6

1.6.2 Secondary Source………………………………………………………………………….. 6

1.7 Methodology……………………………………………………………………………………….. 7

1.8 Chapter Outline ………………………………………………………………………………….. 7

Chapter 2: Insurance Laws in Bangladesh………………………………….. 8-15

2.1 Insurance…………………………………………………………………………………………….. 8

2.2 Nature of the Contract of Insurance……………………………………………………….. 8

2.3 Re insurance and Double insurance……………………………………………………….. 9

2.4 Insurance Laws in Bangladesh…………………………………………………………….. 10

2.4.1 The Insurance Act, 1938………………………………………………………………… 10

2.4.2 The Bangladesh Insurance (Nationalization) Order, 1972……………………… 10

2.4.3 The Bangladesh Insurance Corporation (Dissolution) order,1972……………. 11

2.4.4 Bangladesh Insurance Corporation Act, 1973……………………………………… 11

2.4.5 Some Past Laws…………………………………………………………………………… 11

2.4.6. The Insurance Act, 2010……………………………………………………………….. 11

2.4.7 The Insurance Development and Regulatory Act, 2010…………………………. 12

2.4.8. Other Related Laws……………………………………………………………………… 12

2.5 Types of Insurance ……………………………………………………………………………. 12

2.5.1. Life Insurance……………………………………………………………………………. 12

2.5.2. Non Life Insurance……………………………………………………………………… 13

2.5.2.1 Marine Insurance………………………………………………………………………………………. 13

2.5.2.1 Fire Insurance …………………………………………………………………………………………… 13

2.6 Islamic Insurance ………………………………………………………………………………. 14

2.7 Mobile Insurance in Bangladesh …………………………………………………………. 14

2.8 Insurance Regulatory Authority…………………………………………………………… 14

2.9 Bangladesh Insurance Association ………………………………………………………. 15

2.10 Conclusion………………………………………………………………………………………. 15

Chapter 3: Features of Insurance Act, 2010…………………………….. 16-22

3.1 Overview of the New Insurance Act 2010…………………………………………….. 16

3.2 Important Features …………………………………………………………………………….. 16

3.3. New accompaniments in the Act, 2010 ………………………………………………. 18

3.3.1. Creation of New Regulatory Authority ………………………………………….. 19

3.3.2 Legal Framework for Islamic Insurance ………………………………………….. 20

3.3.3 Micro Insurance Business ……………………………………………………………. 20

3.4. Changes Brought by the New Act ……………………………………………………… 21

3.4.1 Capital Requirements…………………………………………………………………… 21

3.4.2 Spread of Business in Rural Areas………………………………………………….. 21

3.4.3 Reinsurance Abroad…………………………………………………………………….. 22

3.4.4 Penalty Under the new Insurance Law……………………………………………… 22

3.4.5 Provision for Foreign Investment……………………………………………………. 22

3.5 Conclusion………………………………………………………………………………………… 22

Chapter 4: Comparison between the Insurance Act 1938 and the Insurance Act 2010………………………………………………………………………………. 23-27

4.1. Introduction……………………………………………………………………………………… 23

4.2. Major Differences……………………………………………………………………………… 23

4.2.1 Setting up of a Policyholders’ Protection Fund …………………………………. 23

4.2.2 Adding of Broker House……………………………………………………………….. 23

4.2.3 Division of General and Islamic Insurance………………………………………… 24

4.2.4 Life and Non-Life Insurance………………………………………………………….. 24

4.2.5 Foreign Investment in Insurance…………………………………………………….. 24

4.3. Minor Differences…………………………………………………………………………….. 24

4.4 Conclusion………………………………………………………………………………………… 27

Chapter 5: Findings, Suggestions & Conclusion……………………… 28-29

5.1 Introduction………………………………………………………………………………………. 28

5.2 Findings……………………………………………………………………………………………. 28

5.3 Suggestions ………………………………………………………………………………………. 29

5.3 Conclusion………………………………………………………………………………………… 29

Bibliography…………………………………………………………………………………….. 30-31

 

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