- Bangladesh has granted permission to the Life Insurance Corporation of India (LIC) to run its business, making it the second foreign insurance company to operate in the country.
- Bangladesh has given LIC a letter of consent upon certain conditions. They will be able to start operations once they are fulfilled.
- LIC will hold half of the amount while the rest would be owed by its Bangladeshi partners raising the amount from the capital market and local entrepreneurs.
- The Indian state-owned insurance giant was allowed to start operations as a joint venture entity to be called LIC Bangladesh Ltd with a paid up capital of Taka 1 billion (USD 1=Tk 80)
- LIC has been in the insurance business for six decades and is worth over 15,000 billion Indian rupees.
- LIC became the second foreign insurance agency after the US-based MetLife-ALICO, which too operate in Bangladesh as a branch office instead of being a joint venture registered company.
- Beyond India, the LIC currently operates in Nepal, Sri Lanka and Singapore.
- IDRA plans to handover its consent letter to LIC Chairman SK Roy during Indian Prime Minister Narendra Modi’s visit to Dhaka on June 6 and 7.