Escolar Documentos
Profissional Documentos
Cultura Documentos
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
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
384
383
05 Md.Al-Mamun
361
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
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.
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:
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.
This study is based on previous five years performance of the company & scenario of Bangladesh
from 2007 to 2011. It covers-
Most of the part of the report is prepared based on the qualitative data & the performance analysis
is based on quantitative data.
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.
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.
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.
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.
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.
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
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:
Always alive to the needs of the customer & to fulfill their needs with satisfaction.
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
Executives
Name
Designation
Division
Managing Director
DMD Secretariat
Sales Promotion
Sales Promotion
Sales Promotion
SeniorVice President
Commission
SeniorVice President
Finace& Accounts
Establishment
Engineering
Company Secretary
Sales Promotion
NPDI
Noakhali
Patiya
Chittagong
Vice President
Sales Promotion
Vice President
Vice President
Policy Service
Vice President
Kandirpar
Vice President(Dev.)
Newmarket
Vice President(Dev.)
Bogra
Mr. Shahabuddin
Vice President(Dev.)
Kandirpar
Vice President(Dev.)
Dhaka
Vice President(Dev.)
B-Baria
Vice President(Dev.)
Area-03
Policy Service
Mr. S. l. M. Shahabuddin
Training
Group
Policy Service
I.T.
Underwriting
Policy Service
CDA
Group
Actuarial Officer
Actuarial
Dhaka Zone-01
Tongi
Commision
Commision
Law
Policy Service
Establishment
Transport
Agency
Mr. A. K. M. Miraj
A. M. M. Moiz Uddin
I.T.
Policy Service
Islami Takaful
Engineering
CTG.
Md. Seraj-Ud-Daullah
Khulna
Hathazari
Aminul Islam
Dinajpur
Barisal
Mizanur Rahman
Bogra
Zindabazar
Rauzan M.A
Zinnatun Nahar
Jessore.
Munshigong
Abdul Mannan
Gouripur
Nirmalandu Barai.
GoalaBazar
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
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
Life fund
24186.87
20687.22
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
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.
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.
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.
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.
Policyholders Directors: Subject to the Insurance Act, 1938 and the Rules made there
under a policyholder may seek election as a Policyholders Director.
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
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:
Age
nearest
place.nationality
Birthday.years..birth
Name of the Person giving Premium (other than holder than insurable interest description
must be given)
Educational Level
Surrender Value
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.
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.
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.
Super-standard risk: The super-standard risk is present where there is lower risk
than the standard risk.
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.
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
Checklist method
Financial method
Flowchart method
On-site inspections
Contract analysis
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
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.
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:
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.
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.
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:
This company has skilled & long term experienced management system.
This company maintains well organized data based system for future.
Weakness:
At this stage this company has no major weakness. Sometimes it face temporary
problem.
Opportunity
Threats:
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.
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.
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.
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: