Bangladesh National Insurance Company Limited incorporated as a public limited company under the companies act 1994 on 18 June 1996 to carry out all types of general insurance businesses under the Insurance Act 1938 and Insurance Rules 1958 as well as other applicable laws of the land. The company commenced business on the same day. It was established with an authorised capital of Tk 200 million divided into 2 million ordinary shares of Tk 100 each. Its paid up capital is Tk 60 million.

The company underwrites risks involved in trade and properties and thus provides them security through insurance and reinsurance services. Major areas of business of the company include fire, marine cargo and hull, motor and miscellaneous insurance. As per the Re-Insurance Treaty, it has re-insured risks undertaken with the sadharan bima corporation.

In 1999, the net premium income of the company was Tk 37.26 million, while the net claims paid by it amounted to Tk 1.03 million. Estimated liabilities in respect of outstanding claims either due or intimated amounted to Tk 6.77 million. On 31 December 1999, the company had a premium deposit liability of Tk 39.03 million, representing premiums received against cover notes for which no policy has been issued. The reserves for exceptional losses maintained by the company were Tk 10.16 million in 1999. In addition to premium income, the company earned a total of Tk 7.70 million in 1999 from its investments in National Investment Bond with the bangladesh bank and FDR and STD accounts with commercial banks, which contributed significantly to its profitability. Gross profit earned by the company in 1999 was Tk 4.42 million. After making all statutory provisions, including tax, the net profit for the year stood at Tk 2.34 million. On 31 December 1999, the assets of the company were valued at Tk 148.81 million. [S M Mahfuzur Rahman]