Transactions involving the 'Bangabandhu Education Insurance' can be made through school banking accounts from now on, Bangladesh Bank (BB) said in a circular on Sunday.
The insurance regulator -- Insurance Development and Regulatory Authority (IDRA) -- has recently launched the 'Bangabandhu Shikkha Bima' or Bangabandhu Education Insurance to mark the birth centenary of Father of the Nation Sheikh Mujibur Rahman.
Presently, the state-owned life insurer Jiban Bima Corporation is piloting the insurance product under the supervision of IDRA. After the completion of the pilot scheme, all insurance companies might launch the product.
The one-time premium for the insurance is Tk 85 and the students covered under it will get Tk 500 every month until they turn 17 if their guardians die.
The central bank circular, issued by its Financial Inclusion Department and signed by General Manager Md. Ruhul Amin, said payment of premium and compensation may be made through school banking accounts of the students concerned.
The banks, however, cannot charge any fees for the service, according to the circular.
The circular also said students should be encouraged to open school banking accounts.
As of December last year, students deposited Tk 19.50 billion in their accounts, up 20 per cent from a year earlier. The number of accounts under school banking rose by 10 per cent to 2.69 million in 2020.
The central bank introduced school banking in 2010 as a part of its efforts to widen financial inclusion through encouraging students' on the savings.
So far, 55 banks have rolled out school banking operations, allowing students aged 11 years to 17 years to open accounts.