Life Insurance Sector in Bangladesh

Prepared For:
Muhammad Showkat Imran
Assistant Professor of Marketing
Department of Business Administration
International Islamic University Chittagong
Dhaka Campus

Prepared By:
Muhammad Ibrahim Faisal
ID: B-121536
Department of Business Administration
International Islamic University Chittagong
Dhaka Campus
February,2016

Life Insurance Sector in Bangladesh

Acknowledgement
The research paper on problems & prospect of Life insurance Industry in Bangladesh has
been prepared as per the requirement of MBA (Eve) program on State University of
Bangladesh and the paper is being submitted to the course teacher as part of MBA (Eve)
Program. I am very much grateful to my course teacher & coordinator Md. Akram
Hossain, Assistant Professor, School of Business and social studies, for giving me
valuable guideline and instructions. I would like to offer my sincere thanks to all of my
course teacher and program co-coordinator, State University of Bangladesh for kind cooperation. Special thanks to Noor Mohammad Bhuiyan, Managing Director, Rupali Life
Insurance Company Ltd. and Mr. Mossaraf Hossain, FCA, ABIA, ACI, MBA, Deputy
Managing Director, Farest Islami Life Insurance Company Ltd. and Md. Monzur Ahmed,
Senior Manager (Audit & Inspection Department), Rupali Life Insurance Company Ltd.
for kind sympathy & co-operation. My sincere thanks to Bangladesh Insurance
Association, Chief Controller of Insurance, Ministry of Commerce and Bangladesh
Insurance Academy, all my colleagues of Rupali Life Insurance Company for collecting
data, statistics and various types of information for the development my research paper.

Table of contents
Index

Page
Number

Chapter- 1
1.0 Introduction
1.1 Objective of the study
1.2 Methodology
1.3 Scope of the study
1.4 Scope and Limitation

1
1
2
2
3

Chapter 2
2.1 Objective of life Insurance Companies
2.2 What is Risk?
2.3 What is Life Insurance?
2.4 Types of Risk

4
4
4
5

Chapter 3
3.1 Historical Evolution of Life Insurance.
3.2 Islami Takaful Insurance (Shariah Based).
3.3 The important element of Insurance in human Life.
3.4 Why People buy Life Insurance?
3.5 Types of main life Insurance Policies Marketing in Bangladesh

7
10
12
14
19

Chapter 4
4.1 Working Chart of Life Insurance Companies or Hierarchy of a Life Insurance
Organization.
4.2 Organizational Structure of life insurance companies in Bangladesh
4.3 Modern Marketing strategy of Life Insurance Market.
4.4 Goals.
4.5 Strategies.
4.6 Goals of Marketing Function.

20
22
28
28
29
34

Chapter 5
5.1 Problems of Life Insurance operation in Bangladesh
5.2 How can overcome the life Insurance Problems.
5.3 Government Regulatory Control as per Insurance Act Rules.
5.4 Life Insurance Companies Achievement-2000-2004.
5.5 Life Insurance progress at a glance in Bangladesh.
5.6 Progress of five years ratio analysis of life insurance Business in Bangladesh from
2000-2004 (Based on the Year 2000 = 100).
Summary and Conclusion
Reference

35
36
39
41
46
48
49
50

Letter of Transmittal
February,2016
Muhammad Showkat Imran
Assistant Professor of Marketing
Internship Supervisor
Department of Business Administration
International Islamic University Chittagong
Dhaka Campus
Sub: Submission the Report of the Internship.
Dear Sir,
It gives me a massive glad in submitting to you the internship report on above topic which is
part of my BBA program. I was assigned to prepare an internship report under your direct
supervision on the topic Life Insurance Sector in Bangladesh.. This report was a
challenging experience for me and gave me a theoretical as well as practical knowledge. I
have enjoyed a lot during report making program through understanding details of the
particulars areas and also on writing this report.
I tried my best of compile the appropriate information as comprehensively as possible.I hope
that this report will meet the standards of your judgements.
Finally, I would like to assure that I remain Standby for any clarification, explanation as and
when required.

Thanking you
Sincerely yours

Muhammad Ibrahim Faisal

Id:B-121536
BBA (Major in Accounting)
Department of business Administration
International Islamic University Chittagong
Dhaka Campus

Executive Summary

Human life is surrounding a different types of risk namely financial and non financial risk,
pure and speculative risk, particular and fundamental risk, static and dynamic risk etc.
Some people does not earn nothing, they depends on earnable person. When earnable
person is died or victimized by other accident then life insurance covers their financial
risk that is dependable on earnable person (in absence of earnable person). There are 17
(seventeen) life insurance companies in Bangladesh, these have been conducted as per
insurance act 1938 and insurance rules 1958. A hand sum amount have been paid to the
Govt. every year as VAT and TAX at source beside paid a huge number of amount the
policy holders nominee as death claim for their economical development in spite of such
contribution Govt. has not yet been taken proper and practical effort to develop and
revolute the insurance industry. The Govt. has controlled the whole insurance industry
through the Directorate of insurance. The Directorate of insurance cannot be taken proper
initiative to control the insurance industry being necessary power of controller of
insurance is not sufficient as well as full power has not been applied honesty by
controlling the insurance industry. Whether to develop the insurance industry marketing
is the burning weapon for achievement of the marketing goals may be adapted. Business
growth, policies in force, Sums assured, growth of life fund, increase rate of total assets
and investment, portfolio is being increased and in coming years it will increase more in
respect of life insurance of Bangladesh.