Dhaka, April 19 -- Premium default begets claim-settlement crisis in general insurance that prompts the state-owned Sadharan Bima Corporation (SBC) to reinvent legal instrument to realise reinsurance premiums from private insurance companies, officials said.

From the current treaty year (April-March) in the insurance business, the SBC wants to insert the provision of 'notice of cancellation' into the treaty documents applicable to premium defaulters in each quarter.

Recently, the state reinsurer got approval from the Ministry of Finance for getting armed with the notice-of-cancellation weapon.

Also, the ministry has advised the corporation to follow rules of the Insurance Act 2010, the Insurance Corporation Act 2019 and other existing ...