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Sadharan Bima Corporation has deposited Tk 5.0 billion to the government exchequer as the lone state-owned non-life insurer was asked to park its surplus for the 2022 financial year, according to sources.
The amount was provided from Sadharan Bima's fixed deposits with different scheduled banks, according to documents signed by the corporation's Managing Director Sayed Bealal Hossain.
According to the Insurance Corporation Act-2019, after making provisions for bad and doubtful debts, depreciation of assets and any other matters as may be determined by the corporation board, the Sadharan Bima may establish a reserve fund out of its net annual profit and any surplus remaining after that shall be paid to the government.
After the finance ministry asked the state-owned insurer to deposit its surplus, the corporation at a recent meeting finalised the matter. A top Bima official told the FE that the corporation paid the government the surplus amount after maintaining the company reserve.
Formed in 1973, the Sadharan Bima Corporation was formed under the Insurance Corporation Act to manage general insurance and re-insurances.