Bangladesh Co-operative Insurance Limited incorporated on 10 December 1984 as a co-operative society with the Registrar of Co-operative Societies under The Bengal Co-operative Societies Act 1940 (Co-operative Societies Ordinance 1984) to carry out general insurance business under the Insurance Act 1938 and Rules 1958. The company started business as a private sector general insurer on 24 November 1985. It was established with an authorised capital of Tk 50 million and a paid up capital of Tk 10 million divided into 10,000 ordinary shares of Tk 1,000 each. On 30 June 2000, the issued and subscribed capital of the company stood at Tk 6 million paid by 803 co-operative societies. It is the only co-operative institution in the field of insurance business in Bangladesh, established as the successor of the East Pakistan Co-operative Insurance Society Limited, which had been merged with sadharan bima corporation after the liberation of the country.

Bangladesh Co-operative Insurance Limited is governed simultaneously by the Registrar of Co-operative Societies and the Controller of Insurance of the government of Bangladesh. Accordingly, the company prepares two annual accounts every business year. Its position of being accountable to two different institutions creates some administrative problems and increases its operational expenses.

In line with its objective of carrying out general insurance business, the company is engaged in underwriting risks involved in trade and properties and thus provides their security through insurance and re-insurance services. During the 12 years up to December 1999, the insurance business of the company covered fire insurance, marine cargo and hull insurance, motor insurance and miscellaneous insurance, including personal accidents, aviation, risks involved in contracts and machinery breakdowns.

The total premium received by the company during 1999-2000 from various types of businesses amounted to Tk 56.19 million and the net premium income of the company amounted to Tk 36.71 million. In 1999-2000, the company earned an income of Tk 46.59 million consisting of premium, returns on investment, and other incomes. Net claims settled by the company during the year was Tk 5.31 million, and the commission paid totaled Tk 1.43 million. After payment of insurance claims, commissions, VAT, taxes and other management expenses, its net profit in the year stood at Tk 0.46 million.

Total assets of the company were valued at Tk 145.11 million in 1999. It had a total investment of Tk 1.51 million in 1999 in Pratirakkha Sanchaya Patra (Tk 1.50 million) and share with Bangladesh Samabaya Bank (Tk 0.01 million). Every year the company transfers 10% of its net premium income to reserves for exceptional losses. The amount of such reserve fund at the end of financial year 1999 stood at Tk 32.11 million.

A 10-member board of directors governs the overall business and administrative affairs of the company. As executive head of the company, the managing director is accountable to the board. The company has 20 branches throughout the country and its head office is located at Dhaka. [S M Mahfuzur Rahman]