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A Report

On
National Life Insurance Company

Submitted To:
Fatema-Tuz-Zohora
Department of Marketing
University of Barisal

Submitted By:
Group: Flora
4th Semester
Department of Marketing
University of Barisal

Date of Submission: September 19, 2013.

UNIVERSITY OF BARISAL
Department of Marketing
Group Name: Flora
4th Semester
Session: 2011-2012

Group Members
SL.

Name

Id No.

01 Amina (c)

392

02 Afroza Khanam

386

03 Nishat Zahan Nowshin

384

04 Nishat Binta Kader

383

05 Md.Al-Mamun

361

06 Rubayat Hossain Sujon

339

Letter of transmittal
19th September, 2013
Fatema-Tuz-Zohora
Lecturer,
Department of Marketing,
University of Barisal
Subject: Submission of report on National Life Insurance Company.
Dear Madam,
With great pleasure, we, the members of Flora Group would like to submit our project report on
National Life Insurance Company ltd. We are grateful to you for giving us the opportunity to
work on an Insurance company. We gave our level best to make the report with information and
facts. Despite of some setbacks, with our dedication, we were able to finish the report on time
with quality.
We tried our best to make the report possible, and we sincerely hope that, our report and
presentation on National Life Insurance Company ltd will be satisfactory to you.
Sincerely Yours,
On behalf of the group members of

Flora Group

Acknowledgement
At first, we are thankful to Almighty Allah for His endless blessing, without it we wont be
able to deliver the report.
We tried our best to make the report. All the group members have worked heart and soul in
making of the report. We are grateful to the Almighty that we were able to finish the report on
time. We like to acknowledge the people who gave us all the help that we need to do this report.
Our utmost thanks to the course instructor Fatema-Tuz-Zohora for her support and motivation,
we are able to finish the report. She helped us to understand the topic and she helped us to
overcome all the obstacles for finishing the report. Our also want to thank the honorable teachers
of the Department of Marketing for their continuous support and for giving us the opportunity to
learn about the life insurance and the companies procedure. With due respect, we like to thank
the Vice Chancellor. We used many facilities to complete the report and we want give our
regards to the whole University of Barisal. We tried our level best. But there could be some
mistake and we are apologized for any unwanted mistake.
Our efforts were great and we follow the instructions to finish the report. We appreciate all the
help that we get, without them this report will not be possible.

Executive Summery
National Life Insurance Limited, a general insurance company started its operation
in 12th February, 1985. From the establishment the company is being operated
successfully. This report consists an elaborated discussion about the insurance
industry background of Bangladesh, present situation of the insurance industry, the
analysis of premium of United Insurance Limited, risk determining factors and also
the customer analysis about the policies and financial performance analysis. After
preparing this report we have suggested the company where they can make good
and what they can do. The financial performance analysis shows the companies
efficiency year to year.

Table of contents
Chapter

Particulars

Chapter-1

Title fly
Title Page
Letter of Transmittal
Acknowledgement
Executive Summary
Introduction

1.1
1.2
1.3
1.4
Chapter-2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
Chapter-3

Introduction
Objectives of the study
Methodology of the study
Limitations of the study
Company overview
Company introduction
Historical Background (In regard of Bangladesh)
Companys Vision, mission, goal & objectives
Management team
Organization Structure
Branches & offices
Companys performance & growth
Capital & expenditure
Challenges
Future plans
Insurance policies & conditions

3.1
3.2
3.3
3.4

Insurance policies
Policy conditions
Contents of agreement
Elements of insurance contract

Chapter-4
4.1
4.2
4.3
4.4
Chapter-5
5.1
5.2
5.3
5.4
5.5
5.6
Chapter-6
6.1

Chapter -7
7.1
7.2

Introduction

Risk issues of NLI company


Definition of risk
Types of risk
Risk measurement tools
Risk management process
Insurance pricing, claim settlement, Insurance marketing &
reinsurance
Pricing tools
Pricing process
Pricing elements
Claim settlement procedure
Insurance marketing techniques
Reinsurance management
Company Analysis
SWOT Analysis
Strength
Weakness
Opportunities
Threats of the company

Situational analysis
Finding , Recommendation & Conclusion
Findings from Performance Analysis
Concluding Remarks
Bibliography
References

Insurance is essentially a collective endeavor under which a large number of individuals agree to
share the loss which a few of them would incur in future. This means insurance protects those
unfortunates who suffer heavy financial impact of anticipated misfortunes by distributing the loss
among many who are exposed to the risk of similar misfortunes.
This report has been prepared as requirement of the insurance and risk management course.We
tried our level best to undertake the field study very consciously and definitely enjoyed our work.
It has helped us to understand the theoretical part more easily and in our future career. We
believe, this field study will contribute a lot.

Objectives of the study


The objectives can be described in two ways:

Broad objectives:
In this study our fundamental motive is to find out how the life insurance helps to protect
losses though life insurance is not contract of indemnity. We can also know howthe elements
of life insurance policies vary from each other.

Specific objectives:

The main objective is to know the overall process of an insurance Company.

To fulfill academic requirement & apply theoretical knowledge in practical field.

To add value to life.

To gather the practical experience about the activities of an insurance Company.

To find out the life insurance risk factors & premiums.

To find the policies those are used by the National Life Insurance Company.

To know the revenue growth, earnings &cash generation of the insurance Company.

To find out available services of the company.

Scope of the study:

This study is based on previous five years performance of the company & scenario of Bangladesh
from 2007 to 2011. It covers-

The overall company profiles.

Life insurance policy in Bangladesh

Risk factors & premiums.

Merits & problems in insurance policy.

Most of the part of the report is prepared based on the qualitative data & the performance analysis
is based on quantitative data.

Methodology of the study


This report has been prepared on the basis of experience gathered during the period of
semester. For preparing this report, we have also got information from annual report and
website of the National Life Insurance Company. We have presented my experience and
findings by using different chart and tables, which are presented in the analysis part.

Relevant data for this report has been collected primarily by direct investigation of different
records, papers, documents, and operational process and different. The interviews were
administered by formal and informal discussion. No structured questionnaire has been used.
Information regarding office activities of the insurance has been collected through
consulting records and discussion.
Data Sources:
The information and data for this report have been collected from both the primary and
secondary sources.

The primary sources are as follows:

Face-to-face conversation with the respective officer and stuffs of the branch and
head office.
Face-to-face conversation with clients who visited the branch.
Practical work experience in the different desk of the department of the branch
covered.

Relevant field study as provided by the officer concern.

The secondary sources are as follows:


Annual Report of National Life Insurance Company.
Website of the NLIC.
Different manual published by NLIC.
Different circular sent by head office.

Limitations of the study

In case of collecting the data, we faced a lot of problems. The limitations of the study that
we faced in case of preparing the report are as follows.

Difficult to collect the information

Shortage of time-collected information was complex and unsorted.

Up to date information were not available.

Every organization has their own secrecy that is not rivaled to others.

Finally first experience may also act constants in the way of meticulous exploration
on the report.

Despite these limitations, we have tried our best to prepare the report. If you find any
mistakes please consider it cordially.

2.1 COMPANY INRODUCTION


National Life Insurance Company Limited the first private sector life insurance company in
Bangladesh. It came into existence as the first private sector indigenous life insurer after a
lengthy complicated process of preparatory work under the guidance & leadership of Alhaj M.
Haider Chowdhury, the founder Chairman of the company. He was floated the company with
three distinct & definite philosophies. In brief, the first one is to encourage & induce saving of
the high/mid income population and especially of the low income & marginal group. The low
income people usually face economic hardship for household food security & health problems at
certain period of their life. Saving through insurance might provide them relief at odds &
calamities. The second one is to create & provide employment opportunity for the illiterate/half
literate/literate youth of the country. The third one is capital formation at national level for
investment to develop dynamism at macro-economy.
The members of the Board of Directors imbued with the spirit of social service, which the
company stands for, are leaders in other professions & business, such as finance, marketing and
private enterprise. They are equipped with their specialized knowledge to run the company
skillfully & maintain an unparalleled position in the insurance arena.
As a service industry, the company is committed to personalized service to its valued customers
and will justify their confidence by prudent and viable economic management and offering
absolute security and favorable returns.
The company has grown & developed massively & substantially over a period of about 20 years.
It has earned name & fame along with premium for the services it provides to the policy holders.
Since inception, it has focused on policy holders' satisfaction for the type, quality & timeliness of
the services. The company has diversified its products to match customers' needs & preferences.
Currently it provides multifarious life assurance products to cater the aspirations & needs as well
as religious beliefs of the clients.

2.2 HISTORICAL BACKGROUND


National Life Insurance Company Limited the first private sector life insurance company in
Bangladesh, incorporated on 12 February 1985 as a public limited company under the
Companies Act 1913 to engage in life insurance business according to the provisions of the
Insurance Act 1938 and Rules 1958 and other applicable laws and rules. National Life Insurance
Co Ltd. formally started functioning on 23 April 1985 following formal approval of the Govt
with an authorized capital of Taka 200 million divided into 2 million ordinary shares of Taka 100
each. The company is listed with Dhaka Stock Exchange & Chittagong Stock Exchange Ltd.
This company began operation with 11 staff with a head office covering few hundred sq. ft. of
area at Segunbagicha, Dhaka; but today manpower enrollment has reached more than 100,000
staff with head offices at different locations of Motijheel Commercial Area of Dhaka covering
several thousand sq., feet of floor area with several hundred branch & zonal offices all over the

country. In a couple of years, hopefully & definitely, head office of the company, will shift to
'NLI Tower' -own high rise building at Kawranbazar, at a significant artery point of Dhaka
metropolis. The company has also purchased plots & lands at different Divisional & District
headquarters. In course of time, it will shift to own premises from the rented space gradually &
make commercial utilization of the plots & lands.

2.3 VISION, MISSION, GOAL & OBJECTIVES

VISION & Mission:


National Life Insurance Company doesnt have their mission & vision individually. They set
their mission & vision united. These are

In our country the middle class & lower class people cant enter into
saving procedure. So in case of death of earning hand of their family or his
inability of income make them helpless & bring to the street. For this
reason the life insurance companies come forward for them to increase
their saving habit. So this was our main &1st mission to
increase
the saving.

In

our country an uncountable amount of educated, half-educated young generation is


unemployed. So our mission is to make them self-employed by what they want to do willingly.
To meet the unemployed people with the employment in cities or villages was our 2ndmission as
well as vision because we hope in near future it will give us free of unemployment country.

To create the saving & increment of national fund is an important subject. Saving helps a lot in
the canvas of national economy. So this is our mission to accumulate the fund for national
economy to increase our national income. This was our 3rd mission.

To become most caring insurance company with dedication, dynamic, innovation & clients
need based on comprehensive service.

The objectives of the National Life Insurance Company Ltd. are given below:

To render best customer service.

To earn premium achieved by making customer satisfaction.

To play a major role for the development of insurance industry.

To make the payment of claim quickly.

To expand companys branch.

To increase volume & companys share.

Always alive to the needs of the customer & to fulfill their needs with satisfaction.

2.4 Management team

CHAIRMAN
Mr. Mahmudul Huq Taher
DIRECTORS
Mr. Abdul Monem
Mr. Tofazzal Hossain
Mr. Nader Khan
Mr. Morshed Alam
Mr. Mostafizur Rahman
Mr. K.M. Habib Zaman
Mrs. Farzana Rahman
Mrs. Latifa A. Rana
Mrs. S. F. Rowshan Akhter
Mr. Mehdadur Rahman Durand

VICE CHAIRMAN
Mr. Md. Imrul Alam
DIRECTORS

Mr. MatiurRahman
Mr. Mujibur Rahman
Mr. K I Hossain
Mr. S. M. Shamsul Arefin
Mr. Eng. Ali Ahmed
Mr. Mohammad Haroon Patwary

Public Share Holders Group


INDEPENDENT DIRECTORS
Mr. M. Haider Chowdhury
Mr. Alamgir Kabir, FCA
MANAGING DIRECTOR
Mr. Jamal Mohammed Abu Naser (c.c.)
COMPANY SECRETARY
Mr. Md. Abdul WahabMian

Executives
Name

Designation

Division

Jamal Mohammed Abu Naser

Managing Director & CEO

Managing Director

Dipen Kumar Saha Roy, FCA

Deputy Managing Director and CFO

DMD Secretariat

Mr. Sunil Kanti Barua

Senior Executive Vice President

Sales Promotion

Mr. Khasru Chowdhury

Senior Executive Vice President

Sales Promotion

Mr. Kazim Uddin

Senior Executive Vice President

Sales Promotion

Mr. Anwar Hossain

SeniorVice President

Commission

Md. Nomanul Mehadi Khan

SeniorVice President

Finace& Accounts

Md. Enamul Haque

Senior Vice President

Establishment

Engr. Md. AbulKashem

Senior Vice President

Engineering

Mohammad Abdul WahabMian

Company Secretary

Board & Share

Mr. Abul Kashem

Senior Vice President(Dev.)

Sales Promotion

Mr. Khorshed Alam Patwary

Senior Vice President(Dev.)

NPDI

Mr. Morshedul Alam Chowdhury

Senior Vice President(Dev.)

Noakhali

Mr. Osman Gani Chowdhury

Senior Vice President(Dev.)

Patiya

Mr. Sayed Md. Yusuf

Senior Vice President(Dev.)

Chittagong

Mr. Sadeq Hossain

Vice President

Sales Promotion

Mr. Fazle Elahy Chowdhury

Vice President

Audit & Inspection

Mr. Salah Uddin Md. BakiBillah

Vice President

Policy Service

Mr. Ahmed Hossain Chowdhury

Vice President

Kandirpar

Mr. Baharuddin Majumder

Vice President(Dev.)

Newmarket

Mr. Matiar Rahman

Vice President(Dev.)

Bogra

Mr. Shahabuddin

Vice President(Dev.)

Kandirpar

Mr. Abul Mansur Ahmed

Vice President(Dev.)

Dhaka

Mr. Shakhawat Hossain

Vice President(Dev.)

B-Baria

Kazi Abdul Motin

Vice President(Dev.)

Area-03

Mr. Borhan Uddin Ahmeed

Deputy Vice President

Policy Service

Mr. Azizul Hoq Bhuiyan

Deputy Vice President

Finance & Accounts

Mr. S. l. M. Shahabuddin

Deputy Vice President

Training

Mr. Kazi Mohammed Mohsin

Deputy Vice President

Group

Mr. Bani Amin

Deputy Vice President

Policy Service

Mr. Ashraf Uddin Ahmed Mazumder

Deputy Vice President

I.T.

Mr. Md. Belal Hossain

Deputy Vice President

Underwriting

Md. Harunur Rashid Mozumder

Deputy Vice President

Policy Service

Mr. Iftekharul Alam

Deputy Vice President

CDA

Mr. Rohan Ahmed

Deputy Vice President

Group

Mohammed Ziaur Rahman

Actuarial Officer

Actuarial

Mr. Monir Ahmed

Deputy Vice President(Dev.)

Dhaka Zone-01

Md. Dabir Uddin

Deputy Vice President(Dev.)

Tongi

Mr. Sawrupkumar Shyam

Asstt. Vice President

Commision

Mr. Mesbah Uddin

Asstt. Vice President

Commision

Mr. Aminul Islam

Asstt. Vice President

Law

Mr. Mohd. Mohiuddin

Asstt. Vice President

Policy Service

Mr. Maksudul Hoque

Asstt. Vice President

Establishment

Mr. Abdur Rahim

Asstt. Vice President

Transport

Mr. Md. Nazrul Islam

Asstt. Vice President

Agency

Mr. A. K. M. Miraj

Asstt. Vice President

Finance & Accounts

A. M. M. Moiz Uddin

Asstt. Vice President

I.T.

Mr. Md. Daud Meah

Asstt. Vice President

Finance & Accounts

Mr. Abul Kalam Bhuiyan

Asstt. Vice President

Policy Service

Mr. MohdJasim Uddin

Asstt. Vice President

Islami Takaful

Mr. Mohd Mobinur Rahman

Asstt. Vice President

Finance & Accounts

Emran Hossain Bhuiyan

Asstt. Vice President

Finance & Accounts

Md. Abdul Kader

Asstt. Vice President

Finance & Accounts

Md. Bakhtiar Uddin

Asstt. Vice President

Engineering

Mr. Morshed Ali

Asstt. Vice President(Dev.)

CTG.

Md. Seraj-Ud-Daullah

Asstt. Vice President(Dev.)

Khulna

Mr. Azmal Hoque

Asstt. Vice President(Dev.)

Hathazari

Aminul Islam

Asstt. Vice President(Dev.)

Dinajpur

Md. Tazul Islam

Asstt. Vice President(Dev.)

Barisal

Mizanur Rahman

Asstt. Vice President(Dev.)

Bogra

Md. Zafar Ahmed

Asstt. Vice President(Dev.)

Zindabazar

Salim Samjed Ashrafi

Asstt. Vice President(Dev)

Rauzan M.A

Zinnatun Nahar

Asstt. Vice President(Dev.)

Jessore.

Md. Khorshed Alam

Asstt. Vice President(Dev.)

Munshigong

Abdul Mannan

Asstt. Vice President(Dev.)

Gouripur

Nirmalandu Barai.

Asstt. Vice President(Dev.)

GoalaBazar

2.5 Organizational Structure:

2.6 Branches & offices

Branches
Registered office:
NLI Tower,54, KaziNazrul Islam Avenue
Karwan Bazar, Dhaka-1215

Branches
Rajbari Zone
Hazi Super Market (3rd floor) Thana
Road, Pangsha

Motijheel Zone:
Bogra Zone
79Motijheel C/A, Dhaka-1000
Mastar Para (Thana Bhaban) Kahalu
st
G.P.Kh (1 floor) 49/1.
Upazilla Road, Sonatala
PragotiSharaniRoad. Shajadpur, Gulshan
Dhaka- 1212
Farmgate Zone:
56 KaziNajrul Islam Avenue (3rd floor)
Karwan bazar, Dhaka-1205
Road No. - 2, Plot No.-1. Mirpur-10,
Dhaka-1216

Rajshahi Zone:
Molla Plaza (4th floor) shaheb Bazar
GolamMostofaBhaban

Banlamotor Zone:
Badsha Plaza,20 Link Road ,
Banglamotor, Dhaka
336 D.I.T Road, Rampura, Dhaka-1219

Rangpur Zone:
Thana Road. Kounia
Station Road, Badargonj

Narayangonj Zone:
Mid Tower City Complex (3rd floor) 54
B.B Road, Narayangonj
Chowdhury Bari, Bandar, Narayangonj.

Khulna Zone:
Pather Bazar, School Road, Dighalia
Jahid Plaza (1st floor) Paikgacha

Munshigonj Zone:
Sharif Plaza (3rd floor)
MathparaMunshigonj
Sreenagar, Munshigonj

Jessore Zone:
Bandar Complex (2nd floor) Benapol
Bazar, Sharsha
Nowapara, Avoynagar.

Gazipur Zone:
Kapasia, Gazipur

Barishal Zone:
Akan Vila, Sadar Road, Banaripara
TalukderMahal, Chargadatali,
Gournadi

Manikgonj Zone:
Haji Sabed Supper Market (2nd floor)
Jhitka Bazar, Harirampur

Bhola Zone:
Zia Super Market (2nd floor)Sadar
Road.

Kishorgonj zone:
College Road, Bhairab

Borguna Zone:
Patharghata office

2.7 Performance & Growth of the Company:

Taka in Million
Particulars

2012

2011

2010

2009

2008

Total premium

7028.62

6321.84

6070.34

4718.36

4069.20

Investment income

2463.09

1712.66

1741.88

1311.13

1060.11

Claims

3294.39

2558.65

1947.97

1634.28

1385.45

Management expenses

2100.97

2000.91

1982.61

1534.58

1309.03

Assets

27919.98

23824.75

20422.49 16285.95 13140.97

Life fund

24186.87

20687.22

17630.52 14039.24 11404.49

Dividend (cash + stock) (%)

30+30

50+10

60

55

50

Premium (%)

11.18

4.14

28.65

15.95

15.02

Claims (%)

28.76

31.35

19.19

17.96

2.25

Assets (%)

17.19

16.66

25.40

23.93

22.10

Life fund (%)

16.92

17.34

25.58

23.10

25.57

Challenges::

Factors in the economy, risk management, keeping costs low and retaining business in
a competitive market are issues insurance companies face on a regular basis.

Uncertainty regarding the economy along with changes in how people do business
keep this industry on its toes as it strives to meet the demands of consumers and ensure
long-term success.

Challenging in insurance claim may be necessary to cover damages to peoples health


or property. Insurance companies are in business to take in more money in premiums
than they pay out in claims.

In general, a company won't be shy to fight back against peoples appeals to get a
higher claim settlement. If you'd like to try to get more money out of your insurance
company, be prepared for a battle that could take months or years to resolve.

Future plans:
In every kind of business or organization or companies have their own future plan to develop his
or her business. The future plans of the National Life Insurance Company Ltd. are given below

To capture the customer united insurance company will add more policy to give
more facilities as well as service.

To give claim settlement when the claim occurs as quicker than other insurance
company.

By opening new policy and branches UICL need manpower that mean
unemployment problem will reduce.

To provide the policies to the mass people of the country.

To exceed present target for better future profit.

To become one of the market leader.

3.1 Insurance policies


There are different kinds of insurance policies that are maintained in Federal Insurance Company
covering different perils. They are stated below:
Endowment Insurance
Its a safest and surest method of guaranteed cash provision either at a specified time or at death
(Allah forbid). Under these policies, the sum insured plus bonuses are payable at the end of the
specified number of years or at death of the life insured if earlier. Premiums are payable for the
specified number of years or till death, if earlier. Age of the policy holder on maturity should not
be more than Age 70 years. The benefits under the plan can be further increased by attaching
supplementary covers. This policy can be taken for 10, 15, 20, 25, 30 0r 35 years.
Anticipated Endowment Insurance
This is a modified form of endowment assurance and is also called Three Payment Plan.
Besides fulfilling the long-term financial needs, it also helps in meeting the short-term financial
exigencies. As the name suggests, the plan offers three payments throughout term of the policy.
The plan offers survival benefits equal to 25% of sum insured on completion of 1/3rd and 2/3rd
term of the policy. If the policyholder does not withdraw the survival benefits, a very attractive
special reversionary bonus is available. On completion of term of the policy, the remaining 50%
sum insured plus accrued bonuses shall be payable.

Child Protection Insurance

This is a joint life assurance and covers the lives of child and either of the parents. If the
policyholder and the child both survive full term of the policy, sum insured and accrued bonuses
become payable. If the policyholder dies (Allah Forbid) before completion of term of the policy
the payment of premiums ceases and the child is paid an income of Taka 100/- per thousand
sums insured per annum till the completion of the policy term. On completion of policy term,
sum insured inclusive of bonuses accrued till the death of the policyholder is paid to the child.
If the child dies (Allah Forbid) before maturity of the policy or during lifetime of the
policyholder, the death claim is payable to the policyholder depends on the age of death of the
child.
Five Payment Endowment Insurance (With Profits)
is given for 10, 15, 20, 25 & 30 years term (with profit). This plan provides 10% sum assured
upon expiry of one fifth of the term, 15% sum assured upon expiry of two fifth of the term, 20%
sum assured upon expiry of three fifth of the term, 25% sum assured upon expiry of four fifth of
the term, and the remaining 30% of the sum assured along with accrued interest is paid at
maturity.
Whole Life Insurance (With Profits)
This plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically
provides for payment of sum assured plus bonuses on the death of the policyholder. However, considering
the increased longevity of the Bangladesh population, the Corporation has amended the above provision,
thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion
of age 85 years or on expiry of term.

Double Endowment policy


Under this policy, if the life assured dies (Allah Forbid) during the endowment period, the basic
sum assured is payable and if he survives to the end of the term, double of the sum assured is
paid. The premium, are generally quoted according to the endowment period, irrespective of the
age at entry subject to provision that maturity age is not beyond 65 years.
Double Security Insurance (With Profits)
Under this policy premium is payable until policy holder dies (Allah Forbid) or on expiry of the
term. On expiry of term principle amount with bonus is given. If policy holders dies (Allah
Forbid) before the expiry of term then for every tk 1000 double will be given. But bonus will be
counted on principal amount tk 1000. This policy range is 12, 15, 20 or 25 years.
Children Education Security Plan
This is a joint life assurance and covers the lives of child and either of the parents. If the
policyholder and the child both survive full term of the policy, sum insured and accrued bonuses
become payable. If the policyholder dies (Allah Forbid) before completion of term of the policy
the payment of premiums ceases and the child is paid an income of Tk 10/- per thousand sums
insured per annum till the completion of the policy term. On completion of policy term, sum
insured inclusive of bonuses accrued till the death of the policyholder is paid to the child. This
policy can be taken for 10, 15 or 20 years.

Pension Plan (Without Profit)


Pensions are provided at quarterly intervals from an age designated by the policyholder for life,
guaranteed for a minimum period of 10 years i.e. if the pensioner dies (Allah Forbid) anytime
within 10 years his designated nominee will get pension for remaining term of 10 years. Before
pension starts, if the policyholder dies (Allah Forbid), 10 times the annual pension is paid as a
lump-sum to his nominee and the policy is terminated upon such payment.
Family Income Rider-FIR
This policy can be taken only under endowment policy. Under this policy if policy holder dies
(Allah Forbid) then on principle amount 25% bonus, 10% half yearly installment until expiry of
term and 75% will be given on the expiry of term. This policy is available in 10, 15, 20 and 25
years.
BAHUMUKHI BIMA (With Profits)
Under this policy holder of the policy can get assurance for old age, his family member, his
childs education and for marriage. If policy holders dies (Allah Forbid) before term then family
member will get monthly income of 1% of sum assured, will be given 10% of the sum assured
once and 90% will be given after expiry of term. If policy holder survives till expiry of death
than he will be given sum assured with bonus.
BONDHOKI BIMA (without profits)
Mortgage Life Insurance is a form of insurance specifically designed to protect a repayment
mortgage. If the policyholder were to die (Allah Forbid) while the mortgage life insurance was in
force, the policy would pay out a capital sum that will be just sufficient to repay the outstanding
mortgage.
Mortgage life insurance is supposed to protect the borrower's ability to repay the mortgage for
the lifetime of the mortgage. This is in contrast to Private mortgage insurance, which is meant to
protect the lender against the risk of default on the part of the borrower.
Group Insurance
National 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: i) A Group Should
comprise of at least 15 members ii) It should be a legitimately organized body iii) Group clients
of National Life Insurance Company Limited include iv) Semi-Government organization,
autonomous bodies v) Private, Non-Government Organizations (NGO's) vi) Educational &
Financial Institutions vii) Public Limited Companies viii) Associations, Business organizations
etc.
Monthly Deposit Scheme Insurance
This policy can be taken by age of 18 to 45 years and policy amount can be of tk 6000 to tk
50000. Term of the policy is 10 years and maximum age on maturity should not be more than 70
years. Actuary decides the amount of bonus should be given. If for any reason premium is not
payable before 1 year than policy amount will not be paid.

Double Installment Jono Insurance (with profit)


In this policy after a fixed period of time in two installment sum assured with interest is given
which helps economically small income people. To enter into this contract age of the policy
holder should be 20 to 45 years. Maximum age of the policy holder on expiry should not be more
than 57 years. Minimum premium should be tk 104.40 to maximum tk 2610. Minimum policy
amount should be 12000 to maximum tk 300,000. Term of the policy is 12 years.
Denmohor Insurance
Premiums deposited will be refunded with profits if any plus premiums payable up to maturity
date from the date of death will also be refunded. On maturity if the policyholder survives full
sum assured with accrued bonuses with be paid. For 10, 15 0r 20 years this policy can be taken.
This sum assured will be given to wife of policy holder. Age of the policy holder on maturity
should not be more than Age 70 years.
Hajj Insurance
On maturity if the policyholder survives full sum assured with accrued bonuses with be paid.
Premiums deposited will be refunded with profits if any plus premiums payable up to maturity
date from the date of death will also be refunded. This policy term can be 10, 15 or 20 years. Age
of the policy holder on maturity should not be more than Age 70 years. In case of half annually
premium then 2% more premium will be taken and it will be tax free. Takaful contract amount
will not be less than tk 100,000.
Three Payment Insurance (Takaful)
Under these policies, the sum insured plus profit are payable at the end of the specified number of
years or at death of the life insured if earlier. Premiums are payable for the specified number of
years or till death, if earlier. This plan provides 25% sum assured upon expiry of one fourth of
the term, 25% sum assured upon expiry of two fourth of the term, and the remaining 50% of the
sum assured along with accrued profits is paid at maturity. This policy term can be for 12, 15, 18,
21 or 24 years. In this policy annual premium is at least tk 2000.
Four Payment Insurance (Takaful)
Under these policies, the sum insured plus profit are payable at the end of the specified number
of years or at death of the life insured if earlier. Premiums are payable for the specified number
of years or till death, if earlier. This plan provides 15% of sum assured upon expiry of one fourth
of the term, 20% of sum assured upon expiry of two fourth of the term, 25% of sum assured
upon expiry of third fourth of the term and the remaining 40% of the sum assured along with
accrued profits is paid at maturity. Available term for this policy is 12, 16, 20, 24 and 28 years. In
this policy annual premium is at least tk 2000.

3.2 POLICY CONDITION

Incontestability: The policy will become incontestable after expiry of two years from the
date of commencement of risk or from the date of revival of the lapsed policy unless for
nondisclosure of material facts or fraud committed by the Proposer/insured.

Travel, Residence and Occupation: The Policy is free from all restrictions as to travel,
residence and occupation.
Commencement of Policy: The Policy shall not be enforcing until the company has
received the first Premium. This payment is due and payable as on the date of
commencement of risk whether it is a single premium or the first of a series of periodical
premiums.
Days of Grace: For payment of renewal premium thirty days of grace are allowed if
death occurs within the days of grace and before payment of premium the policy will be
treated as valid and effectual subject to deduction of the unpaid premiums.
Payment of Premiums: All premiums are payable in advance to the Company in full the
insured bearing remittance charges, if any The actual date of receipt of the premium by
the Company will be treated as the date of payment.

Revival of Lapsed Policies: When a policy which has not acquired a surrender value
lapses through nonpayment of premium within the days of grace the same can be revived
within five years on payment of all arrears of premium together with interest at a rate not
exceeding the prevailing Bank Rate on proof being given at the cost of the insured to the
satisfaction of the Company of the good health and continued eligibility of the life for
insurance.
Special Revival Scheme: If a policy is discontinued before acquiring the Surrender
Value and the Policyholder is unable to Pay the arrear of premiums together with interest
subject to satisfactory evidence of insurability being furnished to the Company at the
Policyholders cost the Policy may be revived by advancing the
Commencement/Maturity date of the policy and by charging the required special revival
fee and premiums for enhanced age of the insured. This benefit is available only once
during the whole policy term.
Receipts for Premiums: No receipt shall be valid unless it is on an official printed form
bearing the signature of an Authorized Officer of the Company.
Non-forfeiture of Policies: After the payment of two consecutive years full premium the
Policy shall not lapse or become void for omission to pay any premium and the Company
offers anyone of the following Options as has been indicated by the Policyholder in
writing before the cessation of premium if no Option is exercised by the Policyholder,
then Option A stated below will operate.
Option A: Make the Policy Paid-up for a reduced Sum Insured after advancing one
years premium, subject to the availability of the Surrender Value without the obligation
to pay future premiums and if the policy is and-profit one without the right to participate
in future Bonus.
Option B: keep the Policy in full force by advancing the premium at such rate of
interest as the Company from time to time determine until the Surrender Value is
exhausted.
Proof of Age: Must be the proved to the satisfactory of the Company before any benefit
is paid under the within mentioned policy. In the event of discrepancy or inaccuracy in

age, adjustment will be made in premium provided the age is within the insurable age
limit of the Company and provided the statement thereof was not fraudulent made and
provide the proposer/life insured did not suppress facts which it was material to disclose,
otherwise the policy will be null and void and the premiums paid will stand fortified.

Surrender Value and Loan: A policy of life insurance, if enforce, shall acquire after all
premiums have been paid for at least two consecutive years a Cash surrender Value which
will be quoted on application, and this Value may be taken by Policyholder at such rate of
interest as the Company may from time to time determine.

Payment of Claims: Claims are paid at the Principal Places of Business or the Head
Office of the Company promptly on proof of age, death and title.

Suicide: Death by suicide does not vitiate the policies of the Company unless such death
occurs within one year from the date of issue of the policy or Revival and even in such
event the bonafide interests acquired by assignment shall not be effected provided notice
in writing of the assignment or change shall have been received by the Company at least
three calendar months prior to the death.

Notice of Assignment and Nomination: All notices of Assignment or Nomination or


Cancellation or Changes of Nomination must state the date and purport thereof be sent to
the Head Office of the Company at Dhaka. The Company on receipt of the usual fee will
acknowledge such Notices which should be lodged in duplicate. Every Nomination shall
be deemed to have been made pursuant to Section 39 of the Insurance Act 1938. In
recording an Assignment the Company does not accept any responsibly or express any
opinion as to the validity or legal effect of the Assignment.

Policyholders Directors: Subject to the Insurance Act, 1938 and the Rules made there
under a policyholder may seek election as a Policyholders Director.

Lien Clause: Notwithstanding anything herein contained to the country, it is hereby


agreed & declared that in the event of the life insured happening during currency of the
policy at any time within the first years, the amount payable will be less by of the sum
insured & bonuses

Pregnancy Clause: In the event of death of the insured lady taking place within the
policy term from the date of commencement of risk due to any cause directly or
indirectly attributed to the first pregnancy, the companys liability shall be limited only to
refund of the premiums received without interest exclusive of first year premium or extra

3.3 Contents of agreement

In National Life Insurance Company there are a lot of things that are included in an agreement of
insurer & insured which are known as contents of agreement. It includes detail information of the
insurance contract. They are described below:

I) Name of the proposer in Bengali and English (In block letters)


II) Fathers / Husbands Name
III) Mothers Name
IV) Occupation
V) If service holder name of the post or employer

I) Residential Address (Also in English block letters)


II) Permanent Address

Age
nearest
place.nationality

Birthday.years..birth

Along with any certificate that helps to prove age.

I) Sum to be Assured Tk.


II) Table No. & Term
III) Installment System: Annually..Half Annually
IV) Detail of Deposition of Money

For Extra benefit mark right

Accidental Death Insurance

Accidental Death and Disability insurance

Family Security Insurance

Name of the Person giving Premium (other than holder than insurable interest description
must be given)

Educational Level

Surrender Value

Description of other life insurance of proposer if any

I) Nominees Name and Signature


II) Guardians Name and Signature if minor

I) Description of any other pending proposal in this or other insurance company


II) Description of denial or stopped or extra condition or extra premium of other
insurance

I) Description of any dangerous occupation o any possibility of joining


II) Description of any threat on life

Some question be to answered before medical report is given

At last a declaration is given that the proposer is giving all the information truthfully and
he understands all the condition and he is agreed to it. Signature of the proposer is given
below.

Elements of insurance contract

The elements of insurance contract include both the elements of general & special contract. They
are described below:
Offer and Acceptance
There must be a lawful offer by one party and a lawful acceptance of the offer by the other party
or parties. The adjective lawful implies that the offer and acceptance must conform to the rules
laid down in the Bangladesh Contract Act regarding offer and acceptance.
Intention to create Legal Relationship
There must be an intention (among the parties) that the agreement shall result in or create legal
relations. An agreement to dine at a friends house is not an agreement intended to create legal
relations and is not a contract.
Lawful Consideration
Subject to certain exceptions, an agreement is legally enforceable only when each of the parties
to it gives something and gets something. An agreement to do something for nothing is usually
not enforceable by law. The something given or obtained is called consideration.
Capacity of parties
The parties to an agreement must be legally capable of entering into an agreement; otherwise it
cannot be enforced by a court of law. If any of the parties to the agreement suffers from any such
disability, the agreement is not enforceable by law.
Free Consent
In order to be enforceable, an agreement must be based on the free consent of all the parties. A
person guilty of coercion, undue influence etc. cannot enforce the agreement. The other party
(aggrieved party) can enforce it.
Legality of the Object
The object for which the agreement has been entered into must not be illegal, or immoral or
opposed to public policy.
Certainty
The agreement must not be vague. It must be possible to ascertain the meaning of the agreement,
for otherwise it cannot be enforced.
Void Agreements
An agreement so made must not have been expressly declared to be void. Under Bangladesh
Contract Act there are five categories of agreement which are expressly declared to be void.
Writing, Registration and Legal Formalities
The contract need to be in written, registered and maintain legal formalities to be enforceable by
law.

4.1 Definition of Risk:


Risk is a concept which relate to human expectation. It denotes to a potential negative impact to
an asset or some characteristics of value that may arise from some present process or from future
event.
People express risk in different ways. To some, it is chance or probability of loss, to others; it
may be uncertain situation or deviations or what statisticians call dispersions from the
expectation. In most of the terminology the term risk include exposure to adverse situation.
Risk is therefore incidental to life. Some people live dangerously. While others exercise is
extreme caution. Nevertheless, the happing of fortuitous events or element cannot be avoided,
although its effect may be either good or bad.

Types of risk:
There are mainly two types of risks

Uninsurable risk :
If the insurance can be purchased at higher premium, there should not be any
uninsurable risk. After investing all the factors affecting the risk, the life insurance
company should be able to give each due consideration and determine the premium
charge for the insurance.

Insurable risk:
The insurable risk are those which after the selection process can be carried out but any
insurer although there can be different terms and conditions for different policy holders.
There are further three types of insurable risk. They are

Standard risk: The standard risk related to the normal life where there is no
much or no less risk.

Sub-standard risk: Sub-standard risk is that risk which is higher though


insurable than the standard risk.

Super-standard risk: The super-standard risk is present where there is lower risk
than the standard risk.

Risk management tools:


The following tools are used in National Life insurance Company to manage risks-

Age: the age of the life to be assured is the most important factor to affect mortality. The
premium is determined at every year of the completion of age.

Build: build refers to physique of the proposed life & includes height, weight & the
distribution of weight & chest expansion.

Physical condition: the physical condition of the age life proposed has a direct bearing
on the mortality of the life. The conditions are sight, hearing, heart, lungs, tonsils, teeth,
kidneys etc.

Personal history: the personal history of the life proposed would reveal the possibility
of death to him. The history must be connected with the health record, past habit,
insurance history etc.

Family history: family history also requires information of habit, health, occupation &
insurance of other family members. It may be good or poor.

Occupation: if the occupation is hazardous because he may suffer at any time while at
work.

Residence: the residence also affects the risk. The risk will be lesser in a good climate
area & more in a bad climate although the difference is narrowed down.

Present habits: the present habits of the prosper affects the risk. Drunkards & nontemperate persons cause increase in mortality.

Morals: it has been observed that the departure from the commonly accepted standards
of ethical & moral conduct involve extra mortality.

Economic status: it is essential to examine that the family & business circumstances of
the proponents are such as to justify the amount of insurance applied for.

Risk Management Process

1. Establish the context:


Establish the context include planning and remainder of the process and mapping out the scope
of exercise the identity and objectives of stakeholders, the basis upon which risk will be
evaluated and defining a framework for the process, and agenda for identification and analysis.
2. Identification:

After establishing the context, the next step in the process of mapping risk is to identify potential
risks. Risks are about events that, when triggered, will cause problems. Hence, risk identification
can start with source of problems or with the problems itself.

Source analysis

Problem analysis

Event

The several of risk identification are:

Checklist method

Financial method

Flowchart method

On-site inspections

Interaction with others

Contract analysis

Statistical record of losses

3. Assessment:
Once risk has been identified they must then be assessed as to their potential severity of loss and
to the probability of occurrence. These quantities can be either simple to measure, in case of the
value of a lost building, or impossible to know for sure in the case of the probability of an
unlikely event occurring. The fundamental difficulty in risk assessment is determining the rate of
occurrence since statistical information is not available on all kinds of past incidents. Numerous
different formulas exist, but perhaps the most widely accepted formula for risk qualification is
Rate of occurrence.
4. Potential risk treatment:
Once the risk have been identified and assessed, all techniques to manage the risk fall into one or
more of these four major categories:

Risk transfer

Risk avoidance

Risk retention

Risk control

A. Risk transfer:
Risk transfer means that the expected party transfers whole or part of losses consequential risk
exposure to another party for a cost. Apart from insurance device there are some other techniques
by which the risk may be transferred.
B. Risk avoidance:

Avoid the risk or circumstances which may lead to losses in another way, includes not
performing an activity that could carry risk.
C. Risk retention:
Risk retention implies that the losses arising due to a risk exposure shall be retained or assumed
by the party or the organization. There may have two types of risk retention

Self-insurance

Captive insurance

D. Risk control:
Risk can be control either by avoidance or by controlling. However as a concept these can be
segregated into two

Before occurrence of losses

After occurrence of losses

5. Create the plan:


Decide the combination and method to be used for each risk. Each risk management decision
should be recorded and approved by the appropriate level of management. A good management
plan should contain a schedule for control and implementation and responsible persons for those
actions.
6. Implementation:
Follow all the planned method for mitigating the effect of the risk. Purchase insurance policy for
the risk that have been decided to transfer to an insurer, avoid all the risk that can be avoided
without sacrificing the entitys goal, reduce others and retain the rest.
7. Review and evaluation of the plan:
Initial risk management will never be perfect. Practice experience and actual loss result, will
necessitate changes in the plan and contribute information to allow possible different decision to
be made in dealing with the risk being faced.

5.1: Pricing Tools:


Pricing tools mean techniques or methods of calculating price or premium. There are mainly two
types of pricing tools to calculate premium. These two techniques are Net Single Premium and
Gross Premium. National Life Insurance Company uses both of the tools to calculate their price
or premium.
For Net Single Premium National Life Insurance Company uses Mortality Table of Different age,
amount of claim per death. Then they use to convert it into present value using present value
factor. They calculate both Net Single Premium for Term Policy and different Endowment
Policies as well as Deferred Annuities.

Gross Premium is that premium which is charged by the insured to meet the amount of claims
and expenses. The Gross Premium includes the Net Premium and loading expenses. Loading is
the process of adding the Net expense with Net Premium.

5.2: Pricing Process:


Process means the method of calculating premium. In case of calculating premium different
insurance companies follow different methods. National Life Insurance Company also use a
procedure to calculate their premium. They follow some specific chart which are structured for
one thousand taka insurance policy in case of different insurance policies. And all the charts
differ from one policy to another policy. In the chart the premium rate depends on the age of the
insurer and on the maturity period. National Life Insurance Company takes a rate from their
chart depending on the age and the maturity period, then they multiply it with the policy value
and divided by one thousand.
Emphasizing on three chart procedures are mentioned below under three different policies with
examples-

Chart: Endowment Insurance (with Profits)

Yearly Premium Rate for Every Thousand Taka


Age at the
nearby
birthday
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.

Maturity Period of Insurance


10 years
15 years
20 years

25 years

30 years

35 years

107.11
107.12
107.13
107.14
107.16
107.18
107.21
107.25
107.30
107.37
107.44
107.54
107.66

39.42
39.48
39.56
39.65
39.76
39.89
40.04
40.22
40.42
40.65
40.91
41.21
41.52

31.91
32.02
32.14
32.28
32.44
32.63
32.84
33.08
33.35
33.66
34.00
34.39
34.83

26.90
27.06
27.23
27.43
27.66
27.92
28.20
28.53
28.89
29.29
29.74

69.70
69.72
69.74
69.77
69.81
69.85
69.91
69.98
70.07
70.18
70.30
70.46
70.63

51.13
51.16
51.21
51.26
51.33
51.42
51.52
51.64
51.78
51.94
52.14
52.36
52.62

38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.

107.80
107.97
108.16
108.39
108.65
108.96
109.29
109.67
110.09
110.56
111.08
111.65
112.28
112.96
113.72
114.55
115.46
116.46

70.84
71.09
71.76
71.68
72.04
72.44
72.89
73.39
73.94
74.55
75.23
75.97
76.78
77.68
78.67
79.76
80.95
82.28

52.91
53.24
53.62
54.04
53.52
55.04
55.63
56.28
57.00
57.79
58.66
59.63
60.69

41.54
42.35
42.83
43.36
43.95
44.61
45.33
46.14

35.32
35.86
36.46

Lets assume Mr. X wants to have an endowment policy for 35 years. In the near birthday he will
be 25 years old. He wants to take the policy for 30000 taka. So his premium per year will beAs his age is 25 years old and maturity period of policy is 35 years. Then we get a rate for one
thousand taka which is worth 26.90 taka per year.
So for 1000 taka policy holder will have to pay 26.90 taka per year.
For 30000 taka policy holder will have to pay {30000*(26.90/1000)}= 807 taka per year.
Chart: Double security Insurance:

Yearly Premium Rate for Every Thousand Taka


Age at the
nearby birthday
20.
21.
22.
23.
24.
25.
26.
27.

Maturity Period of Insurance


12 years
15 years
110.54
73.18
110.54
73.20
110.55
73.23
110.56
73.26
110.58
73.30
110.60
73.36
110.65
73.45
110.69
73.57

20 years
54.73
54.78
54.84
54.92
55.02
55.14
55.33
55.55

25 years
43.28
43.38
43.52
43.67
43.85
44.07
44.37
44.73

28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.

110.75
110.84
110.94
111.08
111.26
111.36
111.77
112.09
112.50
112.99
113.55
114.22
114.97
115.84
116.82
117.94
119.17
120.52
122.02
123.70
125.53
127.52
129.70
132.09
134.72
137.70
140.71
144.14

73.71
73.90
74.10
74.37
74.69
75.08
75.54
76.08
76.70
77.40
78.22
79.15
80.19
81.37
82.67
84.12
85.72
87.47
89.42
91.54
93.88
96.42
99.20
102.25
105.59
109.24
113.21
117.57

55.81
56.13
56.50
56.95
57.45
58.03
58.69
59.47
60.32
61.31
62.40
63.62
64.98
66.49
68.17
70.00
72.04
74.27
76.70
79.37
82.27
85.46
88.93

45.15
46.64
46.79
46.82
47.53
48.33
49.24
50.24
51.39
52.63
54.03
55.58
57.31
59.18
61.25
63.52
65.99
68.70

Lets assume Mr. X wants to have a Double security Insurance policy for 20 years. In the near
birthday he will be 25 years old. He wants to take the policy for 30000 taka. So his premium per
year will beAs his age is 20 years old and maturity period of policy is 25 years. Then we get a rate for one
thousand taka which is worth 54.73 taka per year.
So for 1000 taka policy holder will have to pay 54.73 taka per year.
For 30000 taka policy holder will have to pay {30000*(54.73/1000)}= 1641.90 taka per year.
Note: If any policy holder wants to take any extra clause with the principal policy then they
will have to give extra amount of money with the principal premium.

5.3: Pricing Elements:


Pricing elements includes all those ingredients or components which are used to calculate
premium. National Life Insurance uses mainly three things as their pricing elements. They are
mortality table, outcome and all expenses. Premium is influenced by this major three things.
While calculating premium these are the vital things to review or consider.
Mortality table is the table where the survey report of death is available. In this table there are
also age, survival rate, and total insured person. Age includes in which age how many people
died. Survival rate means the rate of living people among all insured.
Outcome means profit of the organization. National Life Insurance Company use to maximize
their profit by calculating price more than the claims and all charges. Thats why the exceeding
part of the price becomes profit of National Life Insurance.
Expenses mean all the cost which will have to bear by the insurance company until the maturity
of the policy. There may have different types of expenses- initial expenses, recurring expenses,
final expenses, general expenses etc. these types of costs are also included while calculating
price.

5.4: Claim settlement procedure:


In case of life insurance claim is ask for money which was insured by the insurer after the death
or the maturity of the policy. National Life Insurance Company uses some specific procedure to
make payment of the claims raised by the policy holder or nominee. To make sure that they are
not facing cheat they justify the whole events using the procedure. Their procedures are
described below using their given information and their official forms.
Claim settlement if policy holder dies: If the policy holder dies before maturity then selected
nominees will claim for the insured amount. Its a complex process. The process is described
belowCollection and Submission of Claim Form: First of the all nominee selected by the policy
holder need to collect the claim settlement form from the National Life Insurance Company.
Then company fills a form with policy holders information and policy number. This form
contains date of applying for claim, policy no., and some required documents which are needed
to submit to the company. And the nominee has to collect all the required documents from
different person.
In case of National Life Insurance there have six forms to fill up by different person.

Form Filled up by Nominee: A form is to be filled up by nominee where


nominee has to input policy no., claim no., the easiest way to go to the policy
holders house ex; location, how to go, contact no etc. and also required the claim
holders mobile phone no. Filling up the form claim holder has to sign the form at
the right end.

Form filled up by the zonal office/ branch of national life: The form will be
filled up by the zonal/ branch manager of the National Life Insurance Company.
This form contains claim no, policy no, and all the information of policy holder
including his name, father/ husbands name, nominees name, relation with
nominee, age at the time of death, occupation, place of death, reason of the death,
and comment around death. The manager also has to attest the form including his
name, post, and contact no, and signs.
Form filled up by the Doctor: A form is also filled up by the doctor under whose
consultation the policy holder took treatment. If the doctor is enlisted with the
national life insurance then the doctor has only to mention his code no. If not then
he has to fill the form and also has to take witness by the sign of any elite person
of society. This form includes a lot of information about his physical condition
before and after death, disease of the policy holder, reason of death etc. and at last
he has to give some required information about himself and his signature.
Claim form filled up by nominee: This form will be filled up by nominee in
front of any identifier and must be signed by the identifier. The identifier will be
accepted by the National Life Insurance Company. If the identifier is an senior
officer of National Life Insurance, zonal in charge, any teacher of University,
Headmaster of high school, lawyer, chairman of municipality or any gadget
officer. The most important thing is that the form must be filled up in written
form. No symbol will be accepted in this form. Here the amount of claim is
mentioned by the nominee and he has to give all the information regarding the
policy holders death and relationship with the policy holder. Announcement: At
the last of the form the nominee will make an announcement that all the filled
information are fully true and he did not hide any information and gave those with
his full consent and sense. If there are more than one claim holder then they will
sign there. Justification: Identifier will check all the information and will
mention that all the things are filled up in front of him. Then he will sign with his
seal.
Justification: This justification will be made by that person who has no
relationship with the policy holder or the claim holder or with the claim amount.
And more two people with the same qualification will be the witness. In this form
the person will tell everything clearly and honestly what he knows about the
policy holder in the first portion. In the second portion he will tell some required
information about the claim holders. Justification Announcement: Here the
person will tell that he has filled up the form in front of two witnesses and all the
information given by him is true and right. He will also announce that the person
did not perform suicide. Below of this two witnesses will sign there with their
required information.
Description by Recruitment agency: The Company where the policy holder
made service, head of the company or organization will fill up the form with
required questions regarding his characteristics in office.
At the end he will make an announcement that all the things he described before
and information given are true and right in according to their staff record book.
Then he will give some of his personal information and sign there with a seal of
the office.

Claim settlement after the maturity (if policy holder does not die): If policy holder does not
die in the maturity period then its not so complex to claim the money of sum insured by the
policy holder.
Here policy holder has to make a application from provided by the insurance company after the
maturity of the insurance policy. Then the policy holder has to fill the form with his policy no.,
and other required information. After that the policy holder will submit the form attaching the
slips of first and last premium paid by him.
The insurance company will justify all the documents and it will pay all the sum insured to the
policy holder.

5.5: Insurance Marketing policy:


Marketing is the heart of selling any product or service. It recognizes the product and service to
its customers or probable customers. Insurance companies also need to take steps for marketing
to introduce their services to the public. Marketing mainly emphasize on advertisement.
Generally medium of marketing can be classified into two categories. They are printed medium
and electronic medium.
National Life Insurance use both electronic and printed medium. In case of electronic medium
they use bill board, and internet. Their services are updated time to time. In case of printed
medium they use newspaper only.
The most common and important marketing technique they use is their field worker. Their field
workers go door to door and make their probable customers understand about their policies. Its
the most common and the important medium of marketing technique.
The field workers try to convince their customer to take a policy with providing facilities given
by the company.

5.6: Reinsurance management:


Reinsurance is the procedure of making insurance of insurance. In case of reinsurance the ceding
company takes all the liability from the primary insurer. Then he distributes risk among other
companies who are interested to take the liability to reduce his own risk.
National Life Company has a policy condition of taking insurance worth 5lacs. If any some
insured is more than the ceding company can make reinsurance for the exceeding amount of the
sum insured.
National Life Insurance use both facultative and treaty contract. In case of facultative contract
there have no limitation or reinsurance has no obligation that they might have ta accept the
reinsurance contract offered by the ceding company. Here have no obligation that a company
must have to take the reinsurance contract. Companies have full right to justify that they should
accept the contract or not.

In case of treaty contract treaty has obligation to take responsibility if the value of insurance is
more than 5lacs. The National Life Insurance has made treaty contract with only Munich
Insurance Company, Germany. When National Life Insurance Company takes any contract more
than 5lacs and if they want to make it reinsurance the Munich Insurance Company is obliged to
take the reinsurance contract for the exceeding amount. For 5lacs ceding company or primary
insurer, National Life Insurance Company is liable and for the exceeding amount reinsurance
Munich Insurance Company is liable.
For both facultative and treaty contract both National Life Company and Munich Insurance
Company calculate the actual loss and divide the loss among them in the ratio of liability for
claim settlement.
In reinsurance management there is no obligation for ceding company, National Life Insurance to
make the insurer known about the treaty company.

6.1SWOT Analysis:
National Life Insurance Company has comparatively more external and internal strength than its
weakness. Among the existing insurance company in the market it has more opportunities. It also
faces some threats from its competitors insurance company.

Strength:

It has numerous clients.

It is financially established company.

It has a good reputation in the market.

It has skilled manpower for performing its activity.

It has long and efficient management cycle.

This company has skilled & long term experienced management system.

Shareholders equity enhancing year by year.

This company maintains well organized data based system for future.

Its reserve increasing year by year.

Now its investment is high volume.

Weakness:
At this stage this company has no major weakness. Sometimes it face temporary
problem.

During new investment of the company sometimes occur conflict among


the shareholders and company authority.

Sometimes it fails to select right clients.

Opportunity

As it has huge capital it can easily invest for new sector.

It can take the advantage of competitors weakness.

Now a day peoples are interested about life insurance Company.

It can expand its operation from home to foreign country.

It can influence people to take its insurance policy.

Threats:

There is a huge prospect of the life insurance business in Bangladesh.

Day by day various insurance companies are established so competition is


tough.

The rules and regulation of insurance is complex in Bangladesh.

The strike of political parties in Bangladesh is a big threat.

Destroy of our national economy.

6.2 SITUATIONAL ANALYSIS:


Situational Analysis provides useful information about a companys stand-alone
risk. In Scenario Analysis we consider three alternative situations to evaluate the effects on the
profit of the organization-

Base Case: This is the normal situation of the economy under which company usually operates.
Premium income and expenses are set at there most likely values. In our analysis we have
considered year 2005 as the base year.

Best Case: This is the situation of the economy where all of the variables especially, premium
income and expenses are set at there best reasonably forecasted value, We have considered 25%
probability that the company will operate in best economic condition.

Worst Case: This is the situation of the economy where all of the variables especially, premium
income and expenses are set at there worst reasonably forecasted value. We have considered 25%
probability that the company will operate in worst economic condition.

Table for Scenario Analysis:

Particulars

Different Insurance
Revenue Accounts
Add: Interest Income
Other Income
Less: Expenses of
Management
Profit / Loss for the Year

Best Case
(20% increase in
premium income
& 20% decrease
in expenses)
21,938,988

Base Case
(actual premium
income)
18,282,490

Worst Case
(20% decrease in
premium income
& 20% increase
in expenses)
14,625,992

11,112,212
12,74,711
(9,854,884)

11,112,212
12,74,711
(12,318,605)

11,112,212
12,74,711
(14,782,326)

24,471,027

18,350,808

12,230,589

Interpretation:

From the comparison of above mentioned cases, we have found the company is successful to
maintain its profitability at different economic conditions.

7.1Finding from performance analysis


1.
2.

National Life Insurance Company Ltd Net premium income of 2012 is higher than
the previous years.
The turn over to working capital is lower than the previous year.

3.

The workforce is relatively lower than other insurance companies

Recommendation:
Studying about this company, we have come to know about some strength, weakness,
opportunities, threats to of this company. So there are some recommendations for the company.
Those are given below:

They should reach to the remote corner of the country.


They need to take more active stuffs or train their stuffs much carefully.
They should try to make their strategy easier, so that the people could understand it.
They should not make their policy lengthy.
The computer system they use is needed to improve.

7.2 Concluding Remarks


In our effort to prepare this report has not only been an amazing guideline for our future, but
also, it has taught us to deal with real life issues like never before. In this little but significant
journey of ours through this path, we have come across people who have immense contribution
in the reaching of our destination.
Finally our special indebtedness is to honorable course teacher Fatema-Tuz-Zohora for giving
us the opportunity to prepare a report. By doing such report we have gathered a lot of valuable
experiences that will help us in near future. Her advices, guidance, and support helped us
enormously to do this research properly.
Our last thanks goes to the employees of National Life Insurance Limited for endless help in
providing the information and sharing their thoughts.

References and Bibliography


1.
2.
3.
4.

Assistant General Manger of National Life Insurance Company LTD


Mishra, M N, Insurance principles and practices. Chand & company ltd, New Delhi,
13th Edition,
Annual reports of National life Insurance Company Ltd (2007-2012).
Websites
WWW.Nationallifeinsurace.com.BD
WWW.wikipedia.com
WWW.DSE.org
WWW.google.com

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