In a developing country like Bangladesh, different insurance companies are playing a very crucial role in the economic growth. Though insurance industry has significant prospects in the economy but for some reasons it has failed to achieve its goal to some extent. There are 62 insurance companies in Bangladesh. As the need of time, the parliament of Bangladesh passed a new Insurance Act 2010 in March, 2010 in order to reform & modernize the insurance sector in Bangladesh. Since just after passing a new act to replace the old one, the previous Insurance Act 1938 became inactive due to pass of Insurance Act 2010. The insurance industry faced a shock suddenly. In this research, the Insurance Act 2010 has been summarized focusing on the additions and changes brought by the new act which are different from the former Insurance Act 1938.