1.         This act is enacted in 1938 and is in force the whole of Bangladesh. This act provides that every insurer shall be the subject to the Act and a public company, a society registered under any law of Bangladesh relating to co-operative societies, a body incorporate under the law of any country outside Bangladesh can start any insurance business in Bangladesh. In carrying out the insurance business in Bangladesh a certificate of registration to be obtained from the controller of insurance. The application of registration shall accompany the following-

a.            A certified copy of the memorandum and articles of associations, or a certified deed of constitution of the company.

b.            The name, address and occupation of the directors.

c.            A statement of the class or classes of insurance business to be done and a statement of the amount to be required to be deposited.

d.            A certified copy of the published prospectus.

2.         An insurer who has been granted a certificate of registration shall renew it annually.

3.         Duties of insurers:

a.            Every insurer shall declare to the controller of insurance the total amount of premium including agents balances in respect of fire, marine and miscellaneous insurance business.

b.            No insurer shall write off any premium in respect of general insurance business without the prior approval of the controller of Insurance.

c.            No insurer shall assume any risk in respect of general insurance business unless and until the premium he has received payable of such part.

d.            An insurer shall not be registered by name identical with that which an insurer in existence is already registered, or so nearly resembling that name as to be calculated to deceive.

e.            Where an insurer has ceased to carry on in any class of insurance business in respect of which a deposit has been made, his liabilities in respect of business of that class have been satisfied, the court may on the application of the insurer, order the return to the insurer to deposit.

f.            Every insurer shall furnish to the controller of insurance a certified copy of every report on the affairs of the concerned members.

3.            Winding Up:

a.                  The Court may order the winding up in accordance with the Companies Act.

b.                  An insurance company shall not be wound up voluntarily except for the purpose of effecting an amalgamation or a re-construction of the company.