Two and a half crore working people of the country are at risk of falling below the poverty line due to various reasons including diseases, accidents, job dismissals. Social insurance can play a special role in the financial security of this population. However, to popularize such initiatives, the crisis of confidence in the insurance sector needs to be overcome.
All such information came out at a discussion meeting organized by the Center for Policy Dialogue (CPD) at a hotel in the capital on Thursday.
Insurance is a popular means of financial protection against any crisis like illness, accident, loss of performance. But there is distrust in the insurance system in the country due to various reasons including non-fulfillment of customer claims on time, fraud. The number of insurers is only 4 per thousand.
In this situation, the government plans to implement the social insurance program under the national social security strategy as a developing country in 2026. India-China, Thailand, Canada, Italy and other countries of the world such schemes are in operation. A pilot project of safety measures for garment industry workers is underway in the country.
Project manager of GIZ in Bangladesh at the meeting. Sylvie Popp said, ‘In the case of accidents and dismissals in the garment sector, the insurance pilot project is going on. But such initiatives taken in Bangladesh are only for a particular group or people of the area. On the other hand, social insurance will be a protection scheme for all.
Meanwhile, the government is working to ensure social security in the 141 program through various ministries. The allocation in the budget is more than 100 million rupees. There are no less allegations of waste and corruption.
Research Director Dr. Khandkar Golam Moazzem said that the number of working people engaged in various sectors in the country is more than 3 crore. However, two-thirds of these people have no one to protect them in case of an accident in their working life.
However, negotiators feel that it is difficult to introduce social insurance without a strong role of the government and voluntary participation of employers due to the lack of people’s confidence in insurance.
In the discussion meeting, Bangladesh Bank official said that although there are many questions about the conventional insurance, 91 percent of the total deposit account in the bank is protected through the deposit protection fund.
Social insurance is funded by the employer, the worker and the government. CPD and the German organization GIZ will build a platform with the participation of civil society, government and private representatives to highlight the necessary recommendations for the implementation of the insurance program.