Progress limited in National Social Insurance Scheme implementation: CPD

The visible progress on the implementation of the National Social Insurance Scheme seems to be limited or not readily apparent while the target deadline is only two years away, said the Centre for Policy Dialogue (CPD) on Thursday.

The Scheme is one of the major components of the government's National Social Security Strategy Action Plan Phase II (2021-2026).

At an event "Inception of Social Insurance Forum in Bangladesh" at Brac Centre Inn auditorium in the capital, the think tank identified four types of gaps — conceptual, legal, institutional, and operational — behind the slow implementation of the Scheme, which will cover major areas such as sickness, maternity insurance, old age pensions, employment injury insurance, and unemployment insurance.

Established by the CPD, in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the Social Insurance Forum was formally launched to address the implementation challenges of the Scheme, aiming to provide insightful recommendations for overcoming these hurdles.

Stakeholders present at the event said despite the ministries consistently arranging regular meetings and workshops related to the National Social Security Strategy, there remains a conspicuous lack of broad discussions specifically dedicated to the Scheme.

Little progress has been made so far in terms of conceptualisation, identification, activities, and implementation modalities, they said, adding that a pension scheme has been introduced, but the level of participation is currently insignificant.

Presenting the keynote at the event, CPD's Research Director Dr Khondaker Golam Moazzem said, "As the country advances to the middle-income stage, the government must evolve beyond the current social infrastructures. Eight ministries are working in clusters to implement social insurance under the action plan."

"After December 2025, the government has a responsibility to make an act. The government will get two years to implement this which is not adequate. Government agencies are not adequately aware of the insurance scheme. So, there is a need for more collaboration and discussion to implement social insurance," he added.  

Regarding networking with stakeholders in the National Social Security Strategy implementation, Golam Moazzem suggested establishing effective communication channels and collaboration among key participants.

He said bridging the knowledge gap, defining organisational and operation workflow, facilitating the framework development, networking with the concerned stakeholders, and tracking the thematic area-wise progress required for this.

Muhammad Musharraf Hossain Bhuiyan, a former cabinet secretary and senior advisor of the BRAC Institute of Governance and Development, highlighted the importance of concerted efforts among government ministries and effective coordination with development partners.

Addressing the challenges in marketing insurance products, Shubasish Barua, head of Impact Business at Green Delta Insurance, said, "In Bangladesh, we face a range of religious and social taboos. As a characteristic feature of Bangladeshis, we demonstrate resilience and a relatively low level of interest in insurance products. It is imperative to dismantle these barriers, both on the supply and demand fronts, and cultivate a more inclusive appreciation of insurance."

"Distrust in the insurance industry has grown due to cases where individuals lost their money without any corresponding reimbursement," said ABM Sadiqur Rahman, deputy secretary of the Ministry of Social Welfare.

He said despite those accountable for the mismanagement being currently incarcerated, the affected individuals still confront the difficulty of not recovering their funds. This absence of restitution has greatly fueled the existing scepticism toward insurance services.

AKM Jashim Uddin, director of the Association of Development Agencies in Bangladesh, said general people want to know about the universal pension scheme.

"They have a lack of trust in the scheme because of how it will function.  They also suspect the return of their savings money. So, we need more campaigns about the universal pension scheme," he added.

"Several countries with lower GDP and per capita income than Bangladesh are successfully implementing social insurance despite constraints and are reaping its benefits. Bangladesh, however, lags in this dimension," said Syed Saad Hossain Gilani, chief technical advisor at the International Labour Organisation's Dhaka Office