Mohammad Towhidul Islam |
Published: 12:00 AM, August 30, 2021
DIE Deposit Protection is a unique opportunity for small savers to receive a small amount of capital in the future. Many adults in the city or the surrounding area open such programs on their own behalf or on behalf of their children and others for different periods of time. Usually banks have been offering the service for a long time. Recently, some non-bank financial institutions started offering such services. Although some of them are not allowed by Bangladesh Bank to provide banking services, they continue to provide such services and there have been incidents of various kinds of customer harassment as reported by the media.
Some insurance companies have also recently introduced the deposit insurance service and it expanded to include insurance services. Some banks have also expanded their customer service by adding insurance services to their traditional deposit insurance services. Insurance Development and Regulatory Authority approves insurance services and Bangladesh Bank regulates banking services. It can therefore be assumed that while banks and non-bank financial institutions were adding insurance services to deposit-taking pension schemes, they may have received approval from two regulators – the Bangladesh Bank and the Insurance Development and Regulatory Authority.
Indeed, the Bangladesh Bank has given banks the freedom to innovate and implement deposit insurance services, and banks accordingly encourage their clients to save money by developing various policies over a five or ten year period. Both the bank and the customer benefit from this – the bank’s deposits increase and the customer saves money for the future. Some banks also grant loans against these savings. In addition, the customers who are taxpayers can also claim a tax reduction on deposit pension schemes.
However, for this savings account, the banks charge service fees, income tax, customs fees each year according to their regulations and various guidelines of the Bangladesh Bank and the government. and excise duties, sales tax and other charges from the customer. If the customer wishes to close the account before the specified deadline due to financial burdens or other urgent needs, the customer will be given this option by deducting some fees. At this point, the customer receives both the original and the agreed profit saved up to the day the account was closed.
On the other hand, insurance companies are also given freedom from the insurance development and regulatory authority to innovate and introduce insurance services. You can reach customers with different types of insurance with different equipment. Most insurance agents explain in detail to the customer the benefits of different insurance policies in order to win the customer over to one policy. If the customers are able or have no financial burden, they will receive a certain amount of money at the end of the term if they pay all the installments for a certain period of time. According to the insurance contract, the insurance can also be claimed in the event of an accident or death. As a taxpayer, the insured also benefits from the tax refund. Nowadays, insurance companies also offer loans against insurance policies. However, if the insured person wishes to terminate the insurance prematurely due to excessive financial demands or other urgent necessities, he will receive neither the paid-in funds nor the benefits in the first year and will receive some paid-in money in small amounts from the second year.
Upon request from the Insurance companies or the insurance development and regulatory authority it turns out that companies have stated that they have to spend a lot of money to open a policy for the customer and because of this, the policy prematurely from the customer, he can not pay the insured in the first year Pay out cash or no insurance benefits and can pay a small amount of deposited money from the second year onwards. However, this condition of the insurance contract is not known to most of the customers as it is not clearly stated in the insurance contract.
In such a situation, some insurance companies have started to offer the most popular deposit insurance services of the banks. By adding insurance benefits with this service, they have brought innovation in this area. It has all the benefits of insurance. However, it is not certain whether this deposit insurance benefit comes from the insurance company’s own offers and requires the approval of the central bank. In addition, there is another additional benefit: If the customer does not pay the rate for disability due to accident or death, for example, the insurance company retains the insurance premium and pays the entire insurance benefit in the contract to the nominee or the heirs at the end of the term.
However, if insured persons cancel the deposit pension due to excessive financial demands or other urgent necessity before the deadline has expired, the insured person receives neither the paid-in money nor any profit in the first year and can receive a small part of the paid-in money in the second year. As a result, despite an innovation in the classic deposit protection, the customer will not get the originally paid-in money back if he terminates the deposit protection before the specified period has expired. This in fact calls into question the universality of the conventional deposit insurance services offered by the bank. In addition, most deposit protection customers are not aware of this condition of the insurance contract when they open their pension account, as it is not mentioned in the insurance contract.
In this case, the Bangladesh Bank can protect the universality of the deposit protection service with a circular in which the Insurance company is asked to get their approval for deposit insurance service and to pay customers for all services like banks. Alternatively, the insurance development and regulatory authority can issue a guideline that obliges insurance companies to give the owners of the pension fund a clear idea of the consequences of early repayment of the deposit pension and to order the repayment of the originally deposited funds in order to guarantee at least a decent performance to the financially troubled system owner. Such circulars and instructions can provide relief for the customers affected, especially for those who got into financial hardship during the Covid outbreak and who do not continue the deposit pension with the contribution payment.
Editor: Nurul Kabir, Edited by the Chairman, Editorial Board ASM Shahidullah Khan
on behalf of Media New Age Ltd. Hamid Plaza (4th floor), 300/5 / A / 1, Bir Uttam CR Datta Road, Hatirpool, Dhaka-1205. PBX: 8802-9632245-48. Fax: 8802-9632250, email: [email protected]
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