Education Policy In Bangladesh

Introduction

“Insurance is a way of protecting against these financial losses”.

“General insurance or non-life insurance policies, including automobile and homeowners Policies provide payments depending on the loss from a particular financial event”.

Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft And so on. Each one of us can insure our and our dependents’ health and well being through hospitalization and personal accident policies.

In this report we tried to show that how general insurance business operates in Bangladesh & how important it is for economy & what types of problem it faces in our country.

Objective of the Study

Primary objective

The main objective of the study is to know how the insurance business works in our country.

Secondary objective:

The case study has the following objectives:

To know about the insurance company (Based on three insurance companies.)

To know about general insurance & its classification.

Company Overview

Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance companies in Bangladesh.

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GDIC was incorporated in December 14, 1985 as a public limited company, under the Companies Act 1913. Actual operations started on 1st January 1986, with a paid up capital of BDT 30.00 million. Now, Green Delta Insurance Company Ltd. is amassed about BDT 637.875 million with a credit rating of AA1 and ST1. GDIC holds the proud distinction of being the first ever company to raise its paid up capital to such a level. This is also the 1st Insurance Company in Bangladesh to have equity partnership with IFC.

With a presence in the strategically important parts of the country, which includes 38 branches, Green Delta Insurance Company Ltd. has established its prominent presence with equity participation in Delta Brace Housing Ltd., Progressive Life Insurance Co Ltd, United Hospital Ltd. Fin Excel Ltd. and BD Venture Ltd. Green Delta Capital Ltd. and Green Delta Securities Ltd. are two of the direct subsidiaries. GDIC provides stock brokerage services through Green Delta Securities Ltd. (GDSL) and investment supports through Green Delta Capital Ltd. (GDCL). As a part of the recognition for the contribution in the development of the insurance industry and for maintaining the standard of service, the company has been considered as one of the top 500 companies according to the renowned Rating Agency, Dun Bradstreet Rate Agency of Bangladesh. The company has also been awarded with many national and international awards like –‘’ICAB National Awards’’ for Best Published Accounts, ICMAB Best Corporate Award in Insurance category, ‘‘Certificate of Merit’’ for the Best Presented Accounts Award in the category ‘Insurance Sector’ by the South Asian Federation of Accounts (SAFA), ‘‘International Quality Crown Award’’ by BID International in London, The BIZZ Award by World Business confederation of Business, USA for leadership, Excellence in a management, Quality and Marketing, ‘‘The Diamond Eye Award For Quality & Excellence’’ by BID OTHERWAYS, The Platinum Technology Award for Quality & Best trade name by Association Other Ways in Berlin, International Star Award for Leadership in quality in the Gold, Platinum and Diamond categories and many more. With the slogan “Marches with time” - during the last 28 years - GDIC has been helping people in their time of need; pulling out all the steps when needed, and has been proud to be a partner in progress.

Our Vision

Our vision is to mature into a sustainable, coherent organization, raise competitiveness to the highest level in the insurance industry, maintain high profitability & balanced quantitative growth and exceed customer’s expectations by offering legendary services, embrace a new corporate identity and creative corporate culture.

Our Mission

Our mission is to create shareholders value through customer’s satisfaction and employee’s commitment to excellence.

Our Strength
Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh for over two decades.

Our Belief
We believe that client must stand at the center of our all activities. We have the ability to optimally fulfill the client’s needs based on risk management with minimum cost and personalized services

Finding:

Products & Services
Corporate
Risk Management
Industrial All Risk Insurance including Machinery Insurance and Business Interruption Property All Risk Insurance including Business Interruption
Electronic Equipments and Computer Insurance
Professional Indemnity Insurance
Comprehensive Machinery Insurance
Comprehensive General Liability (CGL)
Product & Public Liability Insurance
Directors and Officers Liability (D&O)
Fire and Allied Perils Insurance
Marine Cargo and Hull Insurance
Financial
Cash-in-safe, Cash-in-transit & Cash-on-counter Insurance
Portfolio Cover
Credit Card Indemnity Insurance
Bankers Blanket Insurance
Bank Lockers Insurance
A.T.M. Booth Insurance
Banc assurance
Retail & SME
Fire and Allied Peril Insurance
Marine Cargo and Hull Insurance
Personal Accident
Health Insurance
Overseas Mediclaim Insurance
Micro Insurance
Micro Health Insurance
Nibedita-Comprehensive Insurance Policy for Women
Household Insurance
Motor Insurance
Peoples Personal Accident Policy
Comprehensive Travel Insurance
Conventional
Aviation Insurance
Automobile Insurance
Workmen Compensation Insurance
Miscellaneous Insurance
Engineering Insurance (Erection all Risk, Contractors all
Risk, Deterioration of Stock & Boiler & Pressure Vessel
Insurance, business intemiption
Crop Insurance
Nlbedlta-Comprehensive Insurance Policy for Women
Weather Index Based Insurance
Investment & Portfolio Management
Underwriting
Pre-IPO placement Syndication
Trusteeship
Green Delta Insurance is known for its innovation and services. Today´s competitive insurance market is driving the market to think and Winovate now products and services and GDIC have been doing with its authentic. Beside the Traditional insurance portfolio GDIC introduced following personal line of products in last year and some them are in pipeline:

Health Insurance

Household Insurance
Nibedita-Comprehensive Insurance Policy for Women
Cellular Phone Contingency Insurance
Weather Index Based Insurance
Personal Accident Insurance Policy for Migrant workers
It is matter of great pride that GDIC has introduced an insurance product first time ever in Bangladesh which is designed only for the females named as Nibedita-Comprehensive Insurance Policy for Women. GDIC has also designed first ever Weather Index Based Insurance for the farmers of Bangladesh which will be launched shortly.

In Briefly

Fire Insurance
Basic cover:
Fire
Lightning
Explosion(domestic)
Damage during or immediately following
Fire caused by – smoke, scorching,
Falling walls, water used for extinguishing
Fire, blowing up building for preventing
Spread of fire.
This coverage can be extended to include other perils by the additional premium; Riot, Strike
Terrorism
Storm, Flood
Subsidence
Landslide
Aircraft damage
Bursting or overflowing of tanks.

Health Insurance

The health policy provides for reimbursement of hospitalization/domiciliary hospitalization expenses for illness/disease suffered or accidental injury
sustained during the policy period. Under this scheme the expenses for treatment in a hospital for an illness or injury are insured. It does not cover for any expenses in respect of domiciliary or outdoor treatment.

Covers:

Hospitalization due to accident or illness.
Ancillary services like ICU/CCU room, post-operative room, blood transfusion, special investigations, etc. Labor room services.
Intensive care facility.
Oxygen therapy.
Skilled nursing services.
Blood transfusions.
Ambulance services.
Dressing while in confinement and test other than the routine investigations.

Marine Insurance
The oldest branch of insurance.
Comprises:
a. Cargo Insurance.
b. Hull Insurance.
Lloyd´s is the famous world´s Marine insurance market.
Marine Insurance Act 1906.
HULL INSURANCE
Concerns the insurance of ships.
Hull, machinery etc.
CARGO INSURANCE
Plays an important role in domestic trade as well as international trade. Provides insurance cover in respect of loss of or damage to goods during transit by –rail, -road -sea -air

Burglary Insurance
Scope of Cover
Lost by burglary
Housebreaking following upon an actual forcible and violent entry into or exit from the premises by the person or persons. Then the company will pay
to the extent of such loss to the extent of the intrinsic value of the descriptive value of the insured.

Exclusions:

Theft by persons lawfully on the premises.
Any legal liability,
Loss or damage during the progress of or following upon fire or explosion. Earthquake, war, Riot, Civil war, Invasion etc.
Uncover able property:
Deeds, bonds, stamp collections, bank or currency.
Theft by persons lawfully on the premises.
Any legal liability,
Loss or damage during the progress of or following upon fire or explosion. Earthquake, war, Riot, Civil war, Invasion etc

Company overview

Delta Life Insurance Co. Ltd. established mainly through the initiative of a group of Bangladeshi professionals then working abroad along with a few enthusiastic local entrepreneurs, started its operation in December, 1986 after the Government of Bangladesh allowed the private sector to operate in the insurance sector in 1984 to carry on the business of insurance in the Private Sector. A brief explanation as to the growth of life insurance business in Bangladesh is in order here. Bangladesh declared independence from the Pakistani rules on March 26, 1971 following which she had to witness a bloody liberation struggle with the occupation forces lasting for 9 months before they were defeated. Insurance business which was exclusively carried on in private sector before independence was nationalized after liberation in 1972 primarily to address the emerging situation of eroding public confidence in the industry that was left staggeringly short of resources in the face of huge losses caused by the war of liberation. After a series of experimentation, a state-owned body, namely Jiban Bima Corporation (JBC), established in May, 1973 for transacting the life insurance business, took over the assets and liabilities under life portfolios of all erstwhile private insurance companies and started business in its own name. Since inception, Delta Life set before itself a high standard of all round performance coextensive with professional soundness and proficiency. It soon made a mark in the life insurance arena by not only being the leader among the private sector indigenous companies, but by undertaking and successfully implementing innovative and welfare oriented life insurance schemes.

It introduced an array of conventional life and group insurance products - many of which were the first in Bangladesh. For the first time, health insurance products were also introduced by Delta Life. But more importantly, in fulfillment of the avowed commitment towards social development, Delta Life for the first time not only in Bangladesh but probably in the World, devised and introduced micro-life insurance-cum-savings products specially suited to the needs and pockets of poor people of the country who constitute more than 80% of the people of Bangladesh. Two projects of the company namely Grameen Bima for the rural people and Gono Bima for the poor and marginal savers of the urban areas were initiated to devote them slave exclusively to marketing and management of these innovative products. We are happy to report that we have achieved a good measure of success although there is a long way to go. These schemes that we have introduced have created great stir and enthusiasm among the general mass who, before these projects started functioning, could not even dream of owning a policy that provides the much needed life insurance coverage along with facility of regular savings on a long-term basis. At a later stage i.e. in the year 2002, the projects were merged into a division of Delta Life, namely, Gono Grameen Bima Division. The GNGRB Division has been growing at a first rate of more than 25% p.a. for the last couple of the years and is poised to maintain this growth rate at least in the next five years or so. Delta Life can take pride in moulding the saving habits of the lower and middle class people and transforming them into prospective policyholders. The potential is now so strongly perceived that all life insurance companies - old and new alike - operating in the country have started their own micro insurance products.

Finding

Ordinary Life Insurance
Delta Life offers a wide variety of ordinary life product/plans ranging from the most common endowment type to more modern and sophisticated plans like endowment with open term, pension plan with built in provision for increasing pension, increasing protection with provision for premium refund etc. The plans have been designed keeping in view the diverse and multifaceted needs of the insuring public belonging to different strata of the society. Some of the popular plans are briefly described below.

Group Life Insurance

Group Insurance is an instrument for providing life insurance coverage (protection) to a number of individuals under a single contract (policy) who are associated together for a common interest other than insurance. It is the most cost effective means to provide immediate financial support to an insured member and/or his family in case of devastating events like-death, disability, disease as well as retirement. Group Insurance has already established its importance as a component of "Employee Benefit Package" in Bangladesh. Exclusive features of Group Insurance are: Insurance coverage to a number of individuals under a single contract.

Simple insurable conditions

Easy administrative procedure
Prompt claim settlement
Affordable premium
Tax exemption on premium
Delta Life offers a host of Group-Life Insurance schemes from which an organization/ employer may choose for benefits of its members/employees, as may best serve their interest according to organizational setup. To be treated as a group, the following criteria need to be fulfilled. A "Group" Should comprise of at least 15 members

It should be a legitimately organized body
Group clients of Delta Life Insurance Company Limited include: Semi-Government organization, autonomous bodies
Private, Non-Government Organizations (NGO's)
Educational & Financial Institutions
Public Limited Companies
Associations, Business organizations etc.
Group Life Insurance Schemes offered by Delta Life are of two types: Traditional Schemes: For insurance coverage of members/employees of a Group
Exclusive Schemes: For insurance coverage of clients of Financial Institutions Traditional Scheme:

These are the commonly offered "Group-Life Insurance" schemes and are also known as Basic Schemes:

These are:

Short Term Contract
Group Term Life Insurance Scheme (GT)
Group Term Life with Premium Refund Scheme (GTR)
Long Term Contract
Group Endowment Life Insurance Scheme (GEN)
Group Pension Scheme (GP)
There are several variants of Basic Schemes. Examples of two variants of GTR are GTR-100/10: Group Term Life with 100% Premium Refund after 10 years GTR-50/10 : Group Term Life with 50% Premium Refund after 10 year

Health Insurance

Health Insurance is now considered indispensable in developed countries. In the present financial-social perspective of Bangladesh as well, Health Insurance has now become an essential, dependable, acceptable and the most cost effective means to make the modern treatment facilities affordable to all socio-economic classes of people, especially the fixed income group. As a pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers several Health Insurance Schemes, which are as follows:

Hospitalization (In-patient) treatment coverage plans

Hospitalization Insurance Plan (Group)- offered to Members of a group and their dependants (if desired) Hospitalization Insurance Plan (Individual) – offered to an Individual as well as his or her dependant family members also known as "Delta Care Hospitalization Plan". Out-patient treatment coverage plans

Out-patient Insurance Plan - Offered as an adjunct to Group Hospitalization Out-patient Management Plan - Offered as an adjunct to Group Hospitalization Overseas treatment coverage plan for travelers

Overseas Medicliam Policy (OMP) – A pre-requisite for visa application
offered only to Individuals traveling abroad. Hospitalization Insurance Plans
Covers in-patient (Hospitalization) treatment expenses of an insured member Expenses Covered under Hospitalization Insurance Plans
Hospital Accommodation
Consultation Fee
Medicine & Accessories
Medical Investigations
Surgical Operation
Ancillary Services like Blood Transfusion, Ambulance Service, Dressing etc. General Features of the Scheme
No need for preliminary Medical Examination during enrolment. Treatment coverage round the clock inclusive of Accidents and Emergencies. Coverage offered to Bangladeshi National as well as resident foreigner. Treatment at any renowned hospital or clinic by consultant of own choice.

Preferential service at Designated Hospital.

Direct payment of treatment expenses by the company at Designated Hospital. Reimbursement of expenses for treatment at non-designated hospital. Membership ID card for each insured to facilitate preferential services. Option for Maternity Benefit and Overseas Treatment coverage. Provision for inclusion of Spouse & Children under the plan. Provision for inclusion of new member under the plan.

Coverage up to 65 years under Group HI & 60 years under Individual HI plan. Two types of plans with several benefit grades to choose from. Option to choose more than one grade according to status of the members of a group. Option to alter benefit grade during renewal.

Gono Grameen Bima

Delta Life first launched Micro-insurance product in 1988 through its Grameen Bima Project (GRB) to cater to the necessity of economic protection against premature death and of disability as well as providing a way for regular savings for the poor and low income group of people living in villages. Later it started another project in 1994, namely, Gono Bima (GNB) for the urban poor and the low income class. These projects are now merged under the name of Gono-Grameen Bima Project (GN-GRB). The initial problems apart, the project started to yield impressive results right from the beginning by creating great interest among the target population who could not even perceive an institutional arrangement through which the ever present problems of insecurity of life could be addressed. To suit the needs and pockets of the target people, and for efficient management of these portfolios, some of the age-old traditional concepts of carrying on life insurance business had to be diluted and in some cases replaced by simple and straightforward practices. Yet, the results are so encouraging that Delta Life is now regarded far and wide as the undisputed leader espousing the cause of welfare of teeming millions and its experiences are now used to advantage not only by indigenous companies but also other micro-savings organizations abroad.

Target Group and the Product

In GN-GRB the formalities are minimum. Insurance Cover is given under Group Insurance concept. A person interested in a policy submits a simple two-page proposal form; it is signed or thumb imprinted by him or her. There is no need for medical check-up. The person needs to be between 18 and 45 years of age, have a monthly income of Tk. 5,000.00 (US $100.00) or less, be of good health and supply a Declaration of Good Health (DGH) at the time of submitting the Proposal form. Death through pregnancy complications within the first year of the policy and death through suicide in the first year of the policy are not covered under an "exclusion clause". Simple endowment with profit policies are offered for 10 and 15 years term both with premium payment mode being weekly or monthly. Premium rate is the same irrespective of age at entry. Besides this plan, new plans like three-payment plan with 12 and 15 years term and double protection endowment plan have recently been introduced.

Policy Documents

Upon acceptance of the proposal, a pass book is issued to the policyholder detailing all terms and conditions of the policy. The pass book serves as the purpose of recording of all payments made by him towards the policy. There is one group policy document for the policyholders of each Thana or Block. For individual policyholders the passbook serves as policy document.

Micro Investment (Loan)

GN-GRB gives small project loans to its policyholders on a group liability basis. No collateral is required. There is 20% service charge on the loans, which is calculated at a flat rate and added to the principal amount. The loan, together with the service charge, is repayable in 12 equal monthly installments. The repayments are collected from door to door by the organizers. Recently a decision has been taken to establish small collection booths in the villages. A person must be a policyholder and pay premiums for at least one year before being eligible for a loan. The maximum loan given is Tk. 5,000.00 (US $100.00) per policyholder. The loans are for income generating activities (IGA) only. Policyholders form a committee of 5 to 7 members. 3 policyholders selected by the committee are given the first loan. After recovery of 3 installments from each of the first three borrowers, the next 3 are given their loans and so on. As a general rule, 60% of the premium income of an area and 40% of the repaid loan of an area are available for loan in that area. Also 100% of premium collection of a committee is available for loan to that committee.

Company overview

Crystal Insurance Company Limited is one of the leading general insurance (Non Life) company in private sector in Bangladesh. The company transacts a wide range of General Insurance business in Bangladesh and expertise in the field with sound and stable financial position.

Our Mission

To provide prompt, efficient and professionalized services for maximum risk coverage of the insured. To provide insurance coverage at the most competitive premium rate ensuring maximum security. To promote Human Resource development and professionalism in insurance business. To settle insurance claim promptly. CICL believes in the quality of the deals struck rather than the quantity of it. With our knowledge and expertise it is our commitment to the insuring community to deliver them the highest standard of security and professionalism.

Finding
Fire Insurance
Fire Insurance Policy (including R & SD, Flood, Cyclone & Earthquake coverage) Industrial All Risks (IAR)

Engineering Insurance
Machinery Insurance {Machinery Breakdown Policy (MBD)}
Deterioration of Stock (DOS)
Boiler and Pressure Vessel (BPV)
Electronic Equipment Insurance (EEI)
Erection All Risk Policy (EAR)
Contractor’s All Risk Policy (CAR)

Motor Insurance
Motor Insurance for Commercial Vehicle
Motor Insurance for Private Vehicle
Motor Insurance for Motor Cycle/Scooter

Marine Cargo Insurance
Marine Cargo Insurance transit by Steamer or Power Vessel
Marine Cargo Insurance transit by Rail/Lorry/Truck
Marine Cargo Insurance transit by Inland Rail or Road Conveyance Marine Cargo Insurance transit by Inland Cargoes (water borne) Marine Cargo Insurance transit by Air Cargo
Miscellaneous
Burglary & House Breaking Insurance
Cash-in-Safe
Cash-in-Transit
Cash-in-Premises
Cash-in-counter
People personal Accident
Workmen’s Compensation Policy
Business Interruption
Overseas Med claim and Holiday Insurance
Public Liability Policy
Product Liability Policy
Consequential Loss
Householders Comprehensive Policy