Dhaka, Nov. 24 -- Stakeholders have strongly opposed a plea by Sena Kalyan Sangstha (SKS) to allow its concern, Sena Insurance, to underwrite insurance risks relating to defence purchases, terming the move a violation of the Insurance Corporation Act.

They said the Act entitles only the state-run Sadharan Bima Corporation (SBC) to underwrite risks of public assets. Sena Insurance, by contrast, is not a state-owned enterprise but a concern of SKS, a charitable trust run by the Bangladesh Armed Forces.

Since Sena Insurance is not a state-run insurer, they argued, allowing it to underwrite risks of public assets would clearly violate the Act and deprive other private-sector insurers.

Officials said the Financial Institutions Division unde...