GIC cel­e­brated its first an­niver­sary

Bhutan Times - - Home - Sonam Pen­jor

For the suc­cess­ful com­ple­tion of its first year of op­er­a­tions, Gen­eral In­surance Cor­po­ra­tion (GIC) Bhutan Re Ltd, the first rein­sur­ance company of the coun­try, the Joint Ven­ture (JV) Rein­sur­ance Company part­ner­ing with Gen­eral In­surance Cor­po­ra­tion of In­dia (wholly owned by the Gov­ern­ment of In­dia) cel­e­brated its first an­niver­sary last Fri­day.

The Chief Guest at the cer­e­mony the Min­is­ter of Home and Cul­tural Af­fairs , Ly­onpo Dam­cho Dorji said, even from its first year of its business, the company is do­ing very well and the fu­ture prospects of the company looks very promis­ing

Ly­onpo fur­ther said, our gov­ern­ment is in its sec­ond year of gov­er­nance and I am con­fi­dent that many would be aware of the many re­lated schemes ini­ti­ated by the Gov­ern- ment to de­velop the econ­omy and en­cour­age all to en­gage in pro­duc­tive ven­tures. We are also aware of the im­por­tance of the ben­e­fits of in­surance and look­ing at all pos­si­bil­i­ties of mak­ing in­surance a pri­or­ity.

Ly­onpo said, the re­cent decision to in­crease the Group In­surance cum Sav­ing Scheme pre­mium and like­wise the in­surance cov­er­age is a step to­wards it. The un­for­tu­nate fire in­ci­dent of one of our sa­cred her­itage (Wang­duephor­dang Dzong) has taught us a hard les­son and re­al­is­ing that Bhutan lies in high seis­mic prone zone gives us all the more rea­son.

Rein­sur­ance Com­pa­nies, as the rein­surer of in­surance com­pa­nies, play a vi­tal role in en­sur­ing that the in­surance com­pa­nies are ad­e­quately pro­tected so that they can in turn pro­vide ad­e­quate risk cover for all types of risk to the gen­eral pub­lic. In­surance com­pa­nies will take risk only when they have so­lace in the fact that they are pro­tected in case of un­for­tu­nate and un­fore­seen calami­ties. Tak­ing pru­dent and cal­cu­lated risk is nec­es­sary for any business to grow, he added.

The pro­moter, Dasho San­gay Wangchuk said, the con­cept of in­surance and the need for it in the coun­try was en­vi­sioned by our beloved King, The fourth Druk Gyalpo, His Majesty Jigme Singye Wangchuck and His Majesty com­manded the es­tab­lish­ment of the Royal In­surance Cor­po­ra­tion of Bhutan un­der the Royal Char­ter on 7th Jan­uary 1975 to cater to the in­surance needs of the peo­ple.

De­spite the limited un­der­stand­ing of in­surance, in­surance mar­ket has grown in the coun­try and hence it was in 2009 that another in­surance company (Bhutan In­surance Limited) was ap­proved to be opened to of­fer com­pet­i­tive prod­ucts and ser­vices. The two in­surance com­pa­nies now write sub­stan­tial business to­talling gross pre­mium of around Nu. 100 cores, said the pro­moter.

To in­crease risk ap­petite and en­hance ca­pac­ity within the coun­try, the need for the es­tab­lish­ment of Rein­sur­ance Company was thought off and hence the un­der­signed with the part­ners started ex­plor­ing op­tions and av­enues for a part­ner­ship to start a Joint Ven­ture Rein­sur­ance Company, he added.

He fur­ther said that they had started to get into ne­go­ti­a­tion with Gen­eral In­surance Cor­po­ra­tion of In­dia there­after and their Joint Ven­ture agree­ment fi­nally ma­te­ri­al­ized on 5th July 2012. This company was of­fi­cially in­cor­po­rated un­der the Com­pa­nies Act of the King­dom of Bhutan 2000 on 16th May 2013. Pur­suant to Chap­ter 3 of the Fi­nan­cial Ser­vices Act of Bhutan 2011, GIC- Bhutan Re was li­censed by the Royal Mon­e­tary Au­thor­ity of Bhutan, as a Gen­eral Rein­sur­ance Company to en­gage in gen­eral rein­sur­ance business on 13th Au­gust 2013.

The In­dian Prime Min­is­ter, Shri Naren­dra Modi chose Bhutan as his first port of call soon after tak­ing over as Prime Min­is­ter of In­dia. In his state­ment at re­cent state to Bhutan, em­pha­sized the im­por­tance of fur­ther de­vel­op­ing and strength­en­ing bi­lat­eral re­la­tions be­tween In­dia and its neigh­bors.

In this di­rec­tion, the depart­ment of fi­nan­cial ser­vices has al­ready taken two ma­jor steps in the form of Druk PNB JV and GIC bhutan Re, the two joint ven­tures that are al­ready up and run­ning.

Mr. An­shok Kumar Roy, Chair man cum Man­ag­ing Di­rec­tor of GIC Re stated that GIC Re is one of the ma­jor rein­surer on the global hori­zon with stan­dard and poor‘s rank­ing of 15th.. It op­er­ates through its JV in Bhutan, a fully owned sub­sidiary in South Africa, branch of­fice s in London, Dubai, Kuala Lumpur and rep­re­sen­ta­tive of­fice in Moscow.

The Rein­sur­ance JV is a sym­bol of our com­mit­ment to­wards de­vel­op­ing the fi­nan­cial and eco­nomic re­la­tion­ship amongst the neigh­bor­ing coun­tries. More in­vest­ment by In­dia would en­hance its risk ap­petite to re­tain larger risks within the coun­try thereby con­serv­ing valu­able for­eign ex­change.

Mean­while, the Rein­sur­ance has from the very be­gin­ning been in­stru­men­tal in pro­mot­ing re­gional support and co­op­er­a­tion in the in­surance sec­tor.

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