Study on Framework for Introduction of National Social Insurance Scheme in Bangladesh (DRAFT)

The NSSS envisions the establishment of a National Social Insurance Scheme (NSIS) that will be regulated under the Insurance Act 2010 and governed by Insurance Development and Regulatory Authority of Bangladesh (IDRA) under the Bank and Financial Institutions Division of Ministry of Finance. The scheme aims at providing social security benefits to the working-class population and pension to the elderly. In addition, it will address other exigencies (such as workplace related accident, sickness, unemployment and maternity) for both the elderly as well as the working-class populations in Bangladesh.

Two key components of the NSSS are the focus areas of this engagement creating a framework for introduction of National Social Insurance Scheme (NSIS) and Private Voluntary Pensions (PvP) in Bangladesh. The scope of work of the engagement aims to explore options to develop NSIS and a PvP schemes through focusing on four areas such as (a) financing options; (b) implementation feasibility; (c) institutional structure of the proposed implementing and management authority; and (d) mode of operationalization. Within NSIS, the design of schemes across select verticals, such as workplace related unemployment, injury, sickness and maternity, have been taken into consideration. Similarly, a design framework for PvP has been considered.

The detailed scope of the engagement is as follows:

• Review and analyse NSSS provisions and its objectives related to social insurance schemes
• Conduct a comparative analysis to assess international good practices in terms of implementing national social insurance schemes that can be contextualized to Bangladesh
• Develop implementable scenarios (including indicative financial implications, and pros and cons) to implement NSIS and PvP
• Design a framework to implement NSIS and PvP