Pragati launches new Insurance Product "Index-based flood Insurance Product"
Pragati launches new Insurance Product in the name and style of
"Index-based flood Insurance Product"
Piloting in Sirajgonj District, first ever in Bangladesh in non-life Insurance Company.
Pragati Insurance Limited has issued an insurance policy in the name and style "Contingent Loss of Earning Insurance" due to flood for poor families in selected village in Sirajgonj District under the umbrella of "Index-based flood insurance" recently. This kind of insurance is first-ever in Bangladesh on pilot basis.
Oxfam GB, has initiated the pilot project to design a commercially pragmatic catastrophic flood insurance scheme for the poor and vulnerable, targeted to sensitize meso-level investors who are working in flood-prone areas. Poor and vulnerable people in the river basis areas of Sirajgonj District come under an index-based flood insurance scheme to enhance the disaster risk reduction programmes in the flood prone regions.
With a feature of fast payout to the flood-hit people, the index based insurance product will cover 1,661 poor families of 14 villages located in Sirajgonj Sadar and Chowhali Upazilas of the district on a pilot basis. The scheme aims to provide cash upto Tk.8,000.00 per household in the event of catastrophic flood.
A collaborative design and research study has been embarked by Oxfam GB and the Indian based Centre for Insurance and Risk Management (CIRM) along with Pragati Insurance Limited for developing a meso-level catastrophic flood insurance scheme in Bangladesh. The Institute of Water Modeling (IWM) of Bangladesh has built a flood hazard model used to generate flood data. The Swiss Development Corporation (SDC) is the main financer of this project.
This project was formally launched on 20th August,2013 in BRAC Inn where Hon'ble State Minister for Disaster Management and Relief was present as Chief Guest. He expressed his great appreciation to the management of Pragati Insurance Limited for underwriting such kind of insurance in Bangladesh. He also requested to the Donors to coup more areas in future. Donors assured to explore their project to other areas like Gaibndha and Kurigram districts. The following executives from Pragati Insurance were present in the launching ceremony:Mr. Md. Manirul Islam, Managing Director
- Mr. Md. Manirul Islam, Managing Director
- Mr. Kh. Zafor Sadeque, Deputy Managing Director (Dev)
- Mr. Kabir Ahmed, Sr. Executive Vice President (R/I)
- Mr. Mamunul Hassan, Vice President
Pragati Insurance has received an amount of Tk.13,68,644.00 as premium . Pragati has retained 20% of this risk and ceded rest of the risk i.e. 80% to our re-insurer named Swiss Re who determined all terms and conditions including premium rate earlier. The Policy period is 15-08-2013 to 30-09-2013.
By underwriting this kind of risk, Pragati's name and fame has spread over 72 countries of the world where Oxfam GB's operation exists. Pragati is planning to introduce more new products in Micro Insurance Sector like as index-based flood insurance in future.