An Internship Report

On
General Operations of Global Insurance Ltd.

Symbol of Security & Peace

 An Internship Report
On
General Operations of Global Insurance Ltd.

Submitted to:
Mr. Badruzzaman
Controller of Examinations
Nation University
Gazipur – 1704

Supervised by:
Mohammad Mosharraf Hossain
Assistant Professor
Department of Business Administration
Dhaka City College

Submitted by:
Md. Abdul Muhaimin
BBA (Marketing)
Roll no : 106XXXX
Registration no : 106XXXX
Session : 2009-10
Department of Business Administration
Dhaka City College

Submission date:
March 02, 2015
 Letter of Transmittal

March 02, 2015

Mr. Badruzzaman
Controller of Examinations
National University
Gazipur - 1704

Subject: Submission of Internship Report.

Sir,

This is great pleasure for me to submit the internship report on “General operations
of Global Insurance Limited.” which is partial requirement of my BBA program.
While preparing this report, I tried my best to follow the instruction that my
supervisor have given me.

The entire report is on my practical experience in the insurance company. I have

furnished all the things what I have learnt during the internship program at the head
office of Global Insurance Limited.

I would like to thank you from the bottom of my heart for assigning me this report,
which has helped me in so many ways to learn so many things about working. I shall
be highly encouraged if you are kind enough to receive this report.

Yours sincerely,

Md. Abdul Muhaimin

BBA (Marketing)
National University roll no : 106XXXX
National University registration no : 106XXXX
Department of Business Administration
Dhaka City College
 Acknowledgement

At first I would like to express my deepest gratitude to almighty Allah for giving me
the strength composure to finish the task within the schedule time. Then I am very
grateful to the Global Insurance Limited for providing me the opportunity to
complete my internship that helps to fulfill the BBA program.

I specially thank Mr. S M Jasim Uddin Ahammed, Company Secretary & Senior
Executive Vice President (Administration) of Global Insurance Limited, head
office. I am very much glad for the friendly cooperation from managers, executives,
officers and staffs of Global Insurance Limited. They gave me long patient learning
ad sitting, practical orientation and answering my numerous queries nicely. They
shared most valuable working experience and supplied information for deserves
appreciation.

In making this report I have been greatly benefitted by my supervisor Mohammad

Mosharraf Hossain, Assistant Professor, Deparment of Business Administration,
Dhaka City College who have provided me with support, encouragement and
constructive cricisms.
 Certificate of Supervisor

This is to certify that Md. Abdul Muhaimin student of BBA bearing roll number :
106XXXX, registration number : 106XXXX, academic session : 2009-2010, major
in marketing, is a regular student of 8th semester (final semester) on BBA program
department of business administration, Dhaka City College, under the National
University of Bangladesh. He has completed a three months internship program on
„General Operations of Global Insurance Limited‟ at Global Insurance‟s head
office under my supervision which is fulfillment of particular requirement of
obtaining BBA degree.

I wish his every success in his future endeavor.

__________________________

Mohammad Mosharraf Hossain

Assistant Professor
Department of Business Administration
Dhaka City College
 Executive Summary

The report focuses all relevant information that has been collected from Global
Insurance Limited head office. This report will give clear idea about activities of GIL.
At the beginning of the report the scope, origin, objectives, limitations, methodology
are discussed. Especially this report focuses on “General operations of Global
Insurance Limited”. GIL is one of the 3rd generation private general insurance
companies, was established in 2000 and stepped into the 15th year of its successful
operation. The company has been awarded A (Single A) by National Credit Rating
Ltd. (NCR).

The major objective is to present an overview of GIL and to discuss the general
activities of GIL. The report is highlighting the area of HR, Admin, Underwriting,
Reinsurance, Claim, Accounts, Internal Audit and IT departments‟ operations. All the
information incorporated in this report has been collected both from the primary
source and as well as from secondary source. But large scale research was not
possible due to constrains and restrictions posed by the insurance company.

Human Resources department is responsible for all human resource activities for the
Global Insurance. This includes employment-related activities such as – recruiting,
hiring, training, compensation, job classification and assignment. Admin department
of Global Insurance Ltd has three sub departments. They are - Establishment
department, Share department and Front desk & dispatch. This department is
responsible for providing administrative aid in various areas of the company and
keeping all departments within a business operating at maximum capacity. Each
insurance company has its own set of underwriting guidelines to help the underwriter
determine whether or not the company should accept the risk. Global Insurance Ltd.
also has some guidelines. GIL mainly underwrites five kinds of insurances like fire
insurances, marine insurance schemes, automobile insurance schemes, engineering
insurances and miscellaneous insurance schemes. Global Insurance Ltd. has obtained
adequate re-insurance cover from state-owned SBC through a surplus treaty
agreement. The objectives of claims department of Global Insurance Ltd are -
verification of a covered loss, fair and prompt payment of claims and personal
assistance to the insured. Company‟s net claim settled decrease from BDT Tk. 26.51
million in 2013 to BDT Tk. 24.55 million at 20121. Accounts department of Global
Insurance Ltd. oversees the preparation of internal and external operating and
financial reports for other departments, rating bureaus, and company management.
Internal audits of Global Insurance provide a number of important services to
company management. These include – detecting and preventing fraud, testing
internal control and monitoring compliance with company policy and government
regulation. The IT department of Global Insurance Limited is now working with web
based full automation system by which it becomes easier to communicate and sharing
data with their branches. The website of the company is full of relevant information of
the company.

At the ending part the findings, recommendations and conclusions are discussed. In
findings it is noticed that government gives some restrictions on premium setting for
insurance company. It can be recommended that government must minimize the
restriction on premium so that insurance companies can fix their premium according
to their demand. Also promotion activities should be introduced and the claims &
accounts officers should be trained well. These recommendations will reduce the
problems of Global Insurance Ltd.

1
Annual Report 2013 (Page – 29)
 Acronyms

AGM : Annual General Meeting

BO Account : Beneficiary Owner Account

CDBL : Central Depository Bangladesh Limited

CPA : Certified Public Account

CSE : Chittagong Stock Exchange

DP: Depository Person

DSE : Dhaka Stock Exchange

EC : Executive Committee

FDR : Fixed Deposit Receipt

FIR : Facultative Inward Reinsurance

GD : General Diary

GDP : Gross Domestic Product

GIL : Global Insurance Limited

ICB : Investment Corporation of Bangladesh

IDRA : Insurance Development & Regulatory Authority

IT : Information Technology

JBC : Jibon Bima Corporation

MD : Managing Director

NCR : National Credit Rating

NRB : National Revenue Board

RJSE : Revenue Joint Stock Exchange

SBC : Sadharan Bima Corporation

 Table of Contents

Page
Chapter Topic
No.

Letter of transmittal
Acknowledgement
Certificate of Supervisor
Executive summary
Acronyms

Chapter
Introduction
01

Origin of the report

Objectives of the report
Methodology
Scope of the report
Limitations

Chapter
Organizational Overview
02

Origin of insurance industry in Bangladesh

Company Profile
Corporate information
Board of Director
Management Team
Vision
Mission
 Product and Services
Branches

Chapter General Operations of

03 Global Insurance Ltd

Human Resource department operations

Administrative operations
Underwriting department operations
Reinsurance department operations
Claim department operations
Accounts department operations
Internal Audit department operations
Information Technology department operations

Chapter Findings, Recommendations

04 and Conclusion

Findings
Recommendations
Conclusion
Bibliography
Chapter
01
Introduction

Origin of the report

Objectives of the report
Methodology
Scope of the report
Limitations of the report
 INTRODUCTION

Origin of The Report

This report has been prepared as the course requirement of the BBA program of
Dhaka City College under the National University. My internship course is
supervised by Mohammad Mosharraf Hossain, Assistant Professor. This report
was based upon the overall operations of the head office of Global Insurance
Limited (GIL).

Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment. It is a form of risk management primarily used to hedge
against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a
company selling the insurance; the insured, or policyholder, is the person or entity
buying the insurance policy. The amount of money to be charged for a certain amount
of insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's promise
to compensate (indemnify) the insured in the case of a financial (personal) loss. The
insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insured will be financially compensated.

Global Insurance Ltd. - is one of the names which incorporated earlier, because
meowed quickly with its higher performance in the industry. But its journey to the
growth and prosperity has been no bed of roses. From the incorporation in 2000, it has
today burgeoned into one of the top line conglomerates in Bangladesh. Global
Insurance ltd is one of the strongest companies in insurance industry.

GIL believes in quick and quality service to their valued customer which is the focal
point of their operation. Through quality and need based services as well as superior
performance, they have the ability to run their business as per their customers‟
expectations. As they form bondage with their valued clients, so they try to nourish
and develop it into a sustainable relationship.

With the words they are presenting Global Insurance Limited- “Symbol of Security
and Peace”.

Objectives of The Report

The main objectives are to know the overall operations of Global Insurance Ltd.
There are some additional objectives of this report are given below:

 To get overall idea about the Global Insurance Ltd.

 To know an overall idea about insurance industry in Bangladesh.

 To get proper information about the organization.

Methodology of The Report

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

The details of the work plan are furnished below:

Data collection method: 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.

a) The primary sources are as follows:

 Face-to-face conversation with the respective officer and stuffs of the head
office.

 Face-to-face conversation with clients who visited the head office.

 Practical work experience in the different desk of the department of the head
office covered.

 Relevant field study as provided by the officer concern.

b) The secondary sources are as follows:

 Annual Report 2013 of Global Insurance Company.

 Website of the company.

 Different manual published by the GIL.

 Different circular sent by head office.

Scope of The Report

This report has been prepared through extensive discussion with insurance employees
and with the clients. While preparing this report, I had a great opportunity to have an
in-depth knowledge of all the insurance activities of a leading private insurance in
Bangladesh.

Limitations of The Report

In case of collecting the data, I 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 revealed to others.

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

Despite these limitations, I have tried my best to prepare the report. If you find
any mistakes please consider it cordially.
 Chapter
02
Organizational Overview

Origin of insurance industry in Bangladesh

Company Profile
Corporate information
Board of Director
Management Team
Vision and Mission
Product and Services
Branches
 Organizational Overview

Origin of Insurance Industry in Bangladesh

Insurance sector is extenders its hand in different areas from time to time. At the same
time the insurance process is becoming faster ,easier and the insurance arena
becoming wider .As the demand for better service increases day by day, they are
coming with different innovative ideas and products. In order to survive in the
competitive field of the insurance sector, all insurance organization are looking for
better service opportunities to provide their fellow clients. As a result, it has become
essential for every person to have some idea on the insurance.

Insurance is a co-operative device the loss caused by a particular risk over a number
of persons, who are exposed to it and who agree to insure themselves against the risk.
Insurance is not a new idea or proposition to the people of Bangladesh. About half a
century back, during the British regime in the then India, some insurance companies
started insurance business, particularly life, in this part of the world. Since 1947 until
1971 insurance business gained momentum in this part of what was then known as
East Pakistan. There were about 49 companies transacting both life and general
insurance business. These companies were operating under a free competitive
economy.

After the emergence of the People‟s Republic of Bangladesh in 1971, the government,
in order to make available the fruit of liberation to the general mass, nationalized the
insurance industry along with the banks in 1972 by Presidential Order No. 95. At the
same time, five insurance corporations were initially established by the Government,
viz, Jatiya Bima Corporation (National Insurance Corporation), Teesta Bima
Corporation (Teesta Insurance Corporation), Karnaphuli Bima Corporation
(Karnaphuli Insurance Corporation), Rupsa Jiban Bima Corporation (Rupsa Life
Insurance Corporation), Surma Jiban Bima Corporation (Surma Life Insurance
Corporation). On 14th May, 1973 the Insurance Corporation Act VI, 1973 was
enacted under which the previous five corporations were abolished and the following
two corporations emerged (1) Sadharan Bima Corporation for General Insurance and
(2) Jiban Bima Corporation for Life Insurance in Bangladesh.

Company Profile
Global Insurance Limited (GIL) is one of the leading private non- life insurance
companies in Bangladesh. GIL was incorporated on April 23, 2000 as a public
limited company under the Companies‟ Act, 1913, with a paid up capital of BDT
60.00 million only. The shares of the company are listed on the Dhaka Stock
Exchange as a publicly traded company in 2005. At present, the company has been
operating its business through 20 branches located at different strategically important
areas of Bangladesh. Stepping on its 14th birthday, Global Insurance Limited has now
become a big family of 20 respected board members, 10 dedicated senior
management members, 450+ committed staffs, numerous valued clients and
thousands of esteemed shareholders with a paid up capital of BDT 191.65 million.

With the slogan, “Symbol of Security and Peace” during the last 14 years, GIL has
been helping people at the time of need; taking all the steps when needed and has
been proud to be a partner in progress. As an experienced insurer, GIL has been
operating as a financially strong and stable general insurance company. The company
has sound reinsurance arrangements, and leverages its local and international
reinsurance programs to underwrite all types of general insurances, at all levels – from
small business to very big business. Hence GIL has achieved an excellent market
reputation with the leading position in the non- life insurance business industry of the
country. Global Insurance has a combination of both local and foreign shareholders.

Sound risk management has always been at the heart of management. This discipline
aided the management in managing various risks incorporated with insurance business
efficiently since the year of its inception. Whether it is financial risk arising from the
change in the value of company‟s investments and insurance liability, or credit risk
from our investment in bonds and other security, management is capable of
monitoring and managing those risks efficiently.
Global Insurance Limited has been awarded A (Single A) by National Credit Rating
Ltd. (NCR). The rating reflects GIL‟s established track record, improved
underwriting performance, GPW and net income. The rating also draws strength from
the improved risk absorption capacity with improved equity base, financial base and
premium solvency ratio. To coup with the challenge of 21st century GIL has taken
initiative to fully computerize its operation by the end of 2011. It will enhance its
servicing capacity up to international level.

As a corporate citizen, GIL has strong commitment towards the society. Management
believes that some philanthropic activities for the society will uphold the image of
GIL. Besides capital market development, the company concentrates on poverty
alleviation, education, health care, cultural activities, sports and game, technological
advancement etc. GIL achieved remarkable improvement in all these areas.

Corporate Information
Global Insurance Limited, one of the 3rd generation private insurance companies, was
established in 2000 and stepped into the 15th year of its successful operation. By this
time 24 Branches have been opened in all the renowned business areas in Dhaka city
and other important business centers of Bangladesh. They have planned to open a few
more branches in different business centre in response to the demands of our valued
clients. They have accordingly established a network of branches and are in a position
to cater to the needs of their valued clients throughout the country. Their strategic
objective is to be one of the top institutions in terms of product and service, cost
efficiency, market share, corporate governance and so on. They try to maximize
insurance coverage at a minimum cost and provide our clients with professional and
expert services. It is a matter of great satisfaction for them to note that the Company
has established them self as a risk carrier of repute and introduced innovative
insurance products in the market to meet the changing requirements of the clients.
While Global Insurance is committed to bring about operational excellence in all tiers
of the organization, it emphasizes the need for further developing core business,
improving underwriting skills and claim processing.
At a glance of Global Insurance‟s corporate information:

a) Date of Incorporation of the Company -------------------------------------- 23rd April, 2000

b) Certificate for Commencement of Business -------------------------------------- 23rd April, 2000

c) Registration with the Department of Insurance ----------------------------- 27th April, 2000

d) Authorized Capital-------------------------------------------------------------------- Tk. 100.00 Crore

e) Paid up Capital-------------------------------------------------------------------------- Tk. 24.59 Crore

f ) Out of which Subscribed by the sponsors‟------------------------------------- Tk. 8.41 Crore

(Source: Annual Report 2013, Page no – 7)

Board of Directors

Position Name

Chairman Ar. Mubasshar Hussain

Vice Chairman Monoj Kumar Roy

Directors Mahabub Morshed Talukder

S. M. Sarowar Alam

Shadman Sakib Apurba

Ishrat Jahan

Arefeen Ahmed

Sajjad Arefin Alam

Syed Badrul Alam

Hasina Begum

Tahsin Aman
 Md. Abdul Khaleque

Md. Quamruzzaman

Md. Abdul Muqtadir

Md. Nasiruddin Choudhury

Independent Director Zobeda Begum

Md. Aftab Uddin Shah

R. A. Howlader

Md. Sayedul Islam

Managing Director (C.C.)

Md. Mosharrof Hossain

Company Secretary

S. M. Jashim Uddin Ahammed

Auditors Ahsan Kamal Sadeq and Co. Chartered Accountants

Management Team

Position Name

Chairman Ar. Mubasshar Hussain

Vice Chairman Monoj Kumar Roy

Managing Director
Md. Mosharrof Hossain
(C.C.)

Company Secretary
S M Jashim Uddin Ahammed
Sr. Executive Vice President
 Sr. Executive Vice President
Md. Shamsul Huda
(Underwriting and Re-Insurance)

Chief Financial Officer Md. Yasin Miah

(Finance and Accounts)

Executive Vice President S.M Sazzad Hossain

(Internal Audit)

Sr. Vice President Md. Anisul Islam Khan

(Finance and Accounts)

Sr. Assistant Vice President Md. Omar Faruk

(Administration and HRM)

Sr. Assistant Vice President

Mohd. Azad Hossain
(Claim Department)

Sr. Assistant Vice President Md. Shafiqul Islam Khan

(Underwriting and Re-Insurance)

Sr. Assistant Vice President

Syed Mahmudul Haque
(Underwriting and Re-Insurance)

Assistant Vice President Khandakar Ashiqur Rahaman

(Information Technology)

Assistant Vice President

Mrs. Dil Afroze
(Administration and HRM)

Vision of The Company

Global Insurance Ltd. has a dream to become a trendsetter as leading insurance
organization and the insurer of first choice in Bangladesh. They believe that
satisfaction of their valued customer lies at the heart of their every operation and they
make their life and property secure and safe as embodied their slogan “Symbol of
Security and Peace”.

Mission of The Company

 Be an accountable and reliable service oriented organization.

 Be the most caring insurance service provider company - shouldering risk and
providing safety and security.

 Be innovative in insurance products and selling techniques.

 Maintain high level of transparency and ethical standard in all corporate

dealings.

 Be contemporary with new ways and means to render top class customer
services in accordance with changing business environment and emerging
challenges.

 Continue delivering attractive returns to shareholders'.

 Be responsive to the Corporate Social Responsibility.

 To become a leading service oriented organization that will provide the

customers with a feeling of blanket of risk protection so that the client can run
his business/vocation in a seamless manner.

Product and Services

i. Standard Fire Policy

Fire Insurance ii. Special Perils Insurance Policy

iii. Industrial All Risk Policy

 iv. Household policy

v. Consequential Loss Policy

vi. Declaration Policy

i. Marine Cargo Policy

Marine Insurance
ii. Marine Hull Policy
Schemes
iii. Marine Freight Policy

i. Private Vehicle Policy

Automobile Insurance
ii. Commercial Vehicle Policy
Schemes
iii. Motor Cycle Policy

i. Erection All Risks Policy

ii. Contractors‟ All Risk Policy

Engineering Insurance iii. Machinery Breakdown Policy

iv. Deterioration of Stock Policy

v. Boiler and Pressure Vessel Insurance Policy

i. Burglary and House Breaking Policy

ii. Personal Accident Policy

iii. Group personal Accident Policy

Miscellaneous Insurance
iv. Employer‟s Liability Policy
Schemes
v. Fidelity Guarantee Policy

vi. Cash-in-Transit Policy

vii. Cash-on-Counter Policy

 viii. Cash-in-safe Policy

ix. Overseas Mediclaim Insurance Policy

x. Product Liability Insurance Policy

xi. Workmen‟s Compensation Policy

xii. Third-party Liability or Public Liability Policy

xiii. Bank Lockers Insurance Policy

Branches of The Company

Local Office
Al-Razi Complex (12th floor), Dilkusha Branch
166-167, Shaheed Syed Nazrul Islam Rahaman Chamber (2nd floor)
Sarani, Purana Paltan, 12-13, Motijheel C/A, Dhaka-1000
Dhaka-1000
Babu Bazar Branch
Motijheel Branch
Aman Court (2nd floor), 15, Armenian
12/1, Purana Paltan (3rd floor), Paltan,
Street, Armanitola, Babu Bazar,
Dhaka-1000
Dhaka-1100
Mirpur Branch
Bangabandhu Avenue Branch
Central Plaza (4th floor)
13, Bangabandhu Avenue (3rd floor)
231, Begum Rokeya Sarani
Dhaka-1000
Senpara, Parbata, Mirpur-10, Dhaka
VIP Road Branch
Agrabad Branch
Oriental Trade Centre (5th floor)
Hasna Tower (3rd floor)
69/1, Purana Paltan Lane , VIP Road,
1110/B, Agrabad C/A, Chittagong
Dhaka-1000
Banani Branch Hatkhola Branch
Sayed Bhaban (3rd floor) S. V. P & Branch In-charge
54, Kamal Ataturk Avenue, Banani, 2/2, R K Mission Road (2nd floor),
 Dhaka-1213 Dhaka

Toyenbee Branch Paltan Branch

62/1, Purana Paltan (2nd floor), 1/B, DIT Avenue (4th floor),
Dhaka-1000 Dhaka-1000
Tongi Branch Nawabpur Branch
Haji Jamiruddin Market (2nd floor) Barek Plaza (3rd floor)
Dhaka Road, Chowrasta, 63, Nawabpur,
Joydebpur, Gazipur Dhaka-1100
Malibagh Branch
Mouchak Tower (9th floor) Gulshan Branch
Room # 1001, 83/B, Siddheswari Circular House # 39 (3rd floor), Road # 126,
Road , Malibagh More, South Avenue, Gulshan-1, Dhaka-1212
Dhaka-1217
Eskaton Branch
Narayangonj Branch
Al-Haj Shamsuddin Mansion (8th Floor)
52/2, Abul Hasnat Tower (2nd Floor)
17, New Eskaton Road , Ramna, Dhaka-
S.M Maleh Road, Tanbazar, Narayangonj
1000
Pabna Branch Naogaon Branch
S. M. Super Market (1st floor) J.R. Super Market , 338,
Haji Mohd. Mohsin Road ( Pabna ) Chakdev,Naogan
Khatungonj Branch Feni Branch
M. Rahman Chamber (2nd Floor) Kazi Plaza: 107, S.S.K Road
277, Khatungon, Chittagong Feni Sadar, Feni
Bijoy Nagar Branch
New Market Branch Al-Razi Complex (12th floor)
28, Mirpur Road, Golden Gate Shopping 166-167, Shaheed Syed Nazrul Islam
Center, Dhanmondi, Dhaka Sarani
Purana Paltan, Dhaka-1000
 Chapter
03
General Operations of
Global Insurance Limited

Human Resource department operations

Administrative operations
Underwriting department operations
Reinsurance department operations
Claim department operations
Accounts department operations
Internal Audit department operations
Information Technology department operations
 General Operations of
Global Insurance Ltd

Global Insurance Ltd (GIL) mainly operates their insurance business and other 23
branches office from the Bijoynagar head office. The head office consist of eight
various departments. These are given below -

a) Human Resource department operations

b) Administrative operations

c) Underwriting department operations

d) Reinsurance department operations

e) Claim department operations

f) Accounts department operations

g) Internal Audit department operations

h) Information Technology department operations

Now general operations of every departments of Global Insurance head office are
discussed in below.
Human Resource Department Operations
Human Resources department is responsible for all human resource activities for the
Global Insurance. This includes employment-related activities such as –

 Recruiting

 Hiring

 Training

 Compensation

 Job classification and assignment

 Promotion

 Transfers

 And employee relations.

During the year 2013 the Company recruited 55 employees2. They arrange training
courses for their desk and development official offered by various training institutions
like Bangladesh Insurance Association, Bangladesh Insurance Academy etc. The
company award promotion, incentives and prizes for the outstanding performances of
the employee.

Human Resources Policy of the Company has been made prioritizing the employee‟s
welfare. The Company ensures good Social security measures by way of attractive
remuneration package, festival and incentive bonuses, increment, gratuity scheme,
contributory provident fund, group Insurance, Hospitalization scheme and other
benefits. They strongly believe that, they have reached this level of success through
their competent, efficient and expert manpower.

The main operations of Human Recourse Department of Global Insurance Ltd are
given below:

2
Annual Report 2013 (Page – 31)
 i. HR Strategy, Policy and Planning:

– Contribute to corporate HR strategy and planning processes to meet our

Corporate Plan.

– Develop 'best-fit' policies and procedures; implement, monitor and review

at least triennially

ii. Recruitment and Selection:

– Provide a comprehensive advice and administration service, from

advertising to appointment, for all full-time and fractional appointments
across the organization.

– Make appointment offers and complete employment documentation.

iii. Employment Contract Administration:

– Administer probationary procedures.

– Monitor temporary contracts and initiate and action review procedures.

– Implement changes to current contracts, and process leavers.

iv. Pay and Benefits:

– Manage pay and grading structures.

– Initiate and update payroll transactions.

– Administer occupational pension schemes and other employee benefits.

v. Training and Development:

– Identify training and development needs and source provision.

– Provide corporate induction programs.

– Administer corporate training provision..

vi. HR Information and Records:

– Determine and maintain HR records.

 – Provide ad hoc information internally.

– Complete information and statistical returns for external agencies.

vii. Employee Relations:

– Contribute to individual and collective consultations and negotiations.

– Apply collective agreements.

– Advise managers and staff on employment matters.

– Participate in disciplinary, grievance and disputes procedures.

viii. Employee Communications:

– Plan, develop and advise on employee communications.

– Annually review and update Staff Handbooks, etc.

ix. Health and Welfare:

– Liaise with managers, staff and specialists on occupational health matters.

– Provide employee support and access to Employee Assistance Program.

x. Special Projects:

– Undertake specific, time limited projects in support of organizational

development and change.

xi. Professional Advice:

– Help managers with people management.

– Work with others to effect change.

xii. Management:

– Manage and develop HR staff.

– Manage and administer HR budget.

– Plan and evaluate HR activities.

Administrative Operations
There are following departments under Admin Department are working:

1. Establishment department

2. Share department

3. Front desk and dispatch

 Establishment department operations:

i. Collecting quotation for all type of purchase, processing and

completion of purchase.

ii. Purchasing and maintenance of all kinds of office equipments for head
office and branches.

iii. Maintain personal files and other official file of admin department.

iv. Correspondence with banks and other financial institute for

enlishment.

v. Maintenance of trade license of different branches of the company.

vi. Purchase and supply of stationeries. Collecting quotation and process

note for approval;

vii. Co-ordination with all department, head and branches in charges as

and when required.

viii. Printing and distribution of annual report and dividend warrant to the
share holder with courier service etc.

ix. Assist half yearly conference, annual conference, AGM, branch review
meeting conference etc.

x. Assist to arrange board meeting, EC meeting, claim and audit meeting,

director remuneration, snacks, prepare and send memo books, notice.
 xi. Directors share transfer, sponsors shares related works.

xii. Branch proposal / permission opening related works.

 Share department operations:

i. Correspondence with SEC, DSE and RJSC.

ii. Share re-materialization and dematerialization.

iii. Duplicate refund warrant, dividend warrant, allotment letter etc.

iv. Shareholding report.

v. Maintain list of shareholders.

vi. Complain of shareholder NRB and RB.

vii. Correspondence of various DP house.

viii. Suspense A/C share transfer to the shareholder. Both R/B and NRB
account.

ix. Reconciliation of bank statement.

x. Upgrade data collection from CDBL.

xi. Assist half yearly conference, annual conference, AGM etc.

xii. Prepare various types of invitation card, greetings card and incentive &
training certificates.

xiii. Change of BO number and address.

xiv. All types of share related works.

xv. Keeping files for DSE, SEC, RJSC and company rules and regulations
  Front Desk operations:

i. Receiving guest and client of the head office.

ii. Receiving phone calls from outside the office distribute them
according to their demands.

iii. In absence of office executive, collect message and informed them

accordingly.

iv. Receive incoming dak for all departments. And posting them into
outgoing registers and dispatches them.

v. Collect data and information from various branches for head office.

Underwriting Department Operations

A financial professional that evaluates the risks of insuring a particular person or asset
and uses that information to set premium pricing for insurance policies. Underwriters
use computer programs and actuarial data to determine the likelihood and magnitude
of a payout over the life of the policy. Higher-risk individuals and assets will have to
pay more in premiums to receive the same level of protection as a (perceived) lower-
risk of the asset. Global Insurance always follow IDRA tariff book to set premium
pricing for various insurance policies.

The main operations of Underwriting Department of Global Insurance Ltd.:

i. Studying insurance proposals.

ii. Gathering and assessing background information in order to effectively

assess the risk involved;

iii. Calculating possible risk and deciding how much individuals or

organizations should pay for insurance (the premium);

iv. Deciding whether the risk should be shared with a reinsurer;

 v. Computing results for appropriate premiums using actuarial information,
other statistics and own judgment;

vi. Liaising with specialists, such as surveyors or doctors, for risk assessment;

vii. Negotiating terms with policyholders or their brokers;

viii. Ensuring that premiums are competitive;

ix. Specifying conditions to be imposed on different types of policies, for

example, asking that a property owner install a security alarm;

x. Keeping detailed and accurate records of policies underwritten and

decisions made.

xi. Maintain the Risk Acceptance Guide.

xii. Monitor underwriting profitability of all classes of insurance.

xiii. Prepare statistical analysis reports for all classes of insurance.

xiv. Review and update/amend policy wording, product summary, brochures,

proposal forms and any other forms.

xv. Review work procedure to contribute to the efficient running of the

department.

xvi. Train, guide and mentor staff.

xvii. Perform inspections and provide evaluations of prospective or existing

insurance risks.

xviii. Provide advice to clients and prospective clients on property risk

management, and recommend best practices for their business operations.

xix. Contribute to the development of underwriting information in the area of

risk exposures.

xx. Undertake investigative surveys and provide loss recommendations for

Claims department.
Several insurance policies of Global Insurance can be underwritten by
following common steps:

 Underwriting refers to the process of selecting, classifying, and pricing

applicants for insurance.

 A statement of underwriting policy establishes policies that are consistent

with the company‟s objectives, such as

– Acceptable classes of business.

– Amounts of insurance that can be written.

 There are three important principles of underwriting:

– The underwriter must select prospective insureds according to the

company‟s underwriting standards

– Underwriting should achieve a proper balance within each rate

classification.

 In class underwriting, exposure units with similar loss-producing

characteristics are grouped together and charged the same rate

– Underwriting should maintain equity among the policyholders.

 Underwriting starts with the agent in the field

 Information for underwriting comes from:

– The application

– The agent‟s report

– An inspection report

– Physical inspection

 After reviewing the information, the underwriter can:

– Accept the application

– Accept the application subject to restrictions or modifications

 – Reject the application

Now details of insurance policies & conditions, contents of agreement,

elements of insurance contract and insurance pricing system in
Underwriting Department of Global Insurance Ltd are described in below:

A. Insurance Policies & Conditions in Underwriting of GIL:

 Insurance Policies

There are different kinds of insurance policies that are maintained in Global
Insurance Company covering different perils. They are stated below:

i. Fire Insurance: Standard Fire Policy, Special Perils Insurance Policy,

Industrial All Risk Policy, Household policy, Consequential Loss
Policy, Declaration Policy

ii. Marine Insurance Schemes: Marine Cargo Policy, Marine Hull Policy,
Marine Freight Policy.

iii. Automobile Insurance Schemes: Private Vehicle Policy, Commercial

Vehicle Policy, Motor cycle policy.

iv. Engineering Insurance: Erection all risks policy, Contractors‟ all

policy, Machinery breakdown policy, Deterioration of stock policy,
Boiler and pressure vessel insurance policy.

v. Miscellaneous Insurance Schemes: Burglary and House Breaking

Policy, Personal Accident Policy, Group personal Accident Policy,
Employer‟s Liability Policy, Fidelity Guarantee Policy, Cash-in-
Transit Policy, Cash-on-Counter Policy, Cash-in-safe Policy, Overseas
Mediclaim Insurance Policy, Product Liability Insurance Policy,
Workmen‟s Compensation Policy, Third-party Liability or Public
Liability Policy, Bank location Policy.
So, these are above type‟s insurance policies available for the insured in the
company which ensures better safety & certainty.

 Policy conditions

The Global Insurance Company agrees subject to the terms & conditions
contained herein or endorsed hereon that if after payment of the premium the
property insured or any part of such property insured be destroyed or damaged
by different perils.

They are described below:

a) Fire Policy:

i. If there be any material misdescription of any property insured for

estimating the risk or any omission to state such fact, the company
shall not be liable upon this policy.

ii. No payment in respect of any premium shall be deemed to be

payment to the company unless a printed form for the same signed
by an official agent of the company shall have been given to the
insured.

iii. The insured shall give a notice to the company of any insurance
already affected & the particulars of such insurance are stated in or
endorsed or on behalf of the company before the occurrence of any
loss all benefits shall be forfeited.

iv. If the property insured be collectively or greater value than the sum
insured the insured shall be considered as being his own insurer for
the difference & will bear a ratable proportion of the loss
accordingly.
b) Marine Cargo Policy:

i. Loss damage or expense attributable to willful misconduct of the

assured.

ii. Ordinary leakages, Ordinary loss in weight or volume or Ordinary

wears & tear of the subject-matter insured.

iii. Loss damage or expense caused by inherent vice or nature of the

subject-matter insured.

iv. Loss damage or expense caused by delay, delay caused by risk

insured against.

v. Loss damage or expense arising from insolvency or financial

default of the owner‟s manager‟s charterers pr operators of the
vessel.

vi. Loss damage or expense caused by insufficiency or unsuitability of

packaging or preparation of the subject-matter insured.

c) Marine Hull Policy:

Marine hull insurance covers loss of or damage to the subject-matter

insured caused by:

i. Perils of the inland rivers lakes or other navigable water.

ii. Fire, explosion.

iii. Violent theft by persons from outside the vessel.

iv. Jettison.

v. Piracy.

vi. Breakdown of accident to nuclear installations or reactors.

vii. Accident in loading discharging or shifting cargo or fuel.

d) Motor Insurance Policy:

i. Notice shall be given to the insurer immediately upon the

occurrence of any accident or loss or damage & in the event of any
claim & thereafter the insured shall give such information as the
insurer shall require.

ii. If at the time any claim arises under this policy there is other
existing insurance covering the same loss the insurer shall not be
liable to pay more than its ratable proportion of the loss.

iii. The insurer shall take all reasonable steps to safeguard the motor
vehicle from loss or damage & he shall have all time & full access
to examine the motor vehicle, any part, and driver of the insured.

iv. No admission after promise or payment shall be made by the

insured without the written consent of the insurer.

v. The insurer may cancel the policy by sending Sven days notice by
registered letter to the insured at his last & in such event will return
the premium less the pro rata portion.

e) Flood Clause:

i. The overflowing or deviation.

ii. Any flow or accumulation of water on the ground.

iii. Loss or damage by flooding caused Earthquake.

f) Riot & Strike Endorsement:

i. Loss or damage by delay, loss of market.

ii. Loss or damage by total or partial cessation of work.

 iii. Loss or damage occasioned by permanent or temporary
dispossession.

iv. Goods held in trust or commission.

v. Any curiosity or work of art for an amount exceeding taka 250/-.

vi. Securities, obligations or documents, stamp, coins or paper money

cheque, books of account or other business books.

So, these are the conditions that are given as important clauses in various
policies.

B. Contents of Agreement

In Global 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. Fire: Agreement of fire insurance include detail about the insured such as-

– name

– address

– trade of profession

– amount to be insured

– detail about the asset insured (such as situation construction,

occupation, lighting, heating, power & storage)

– amount of premium & other general information

– signature of the proposer & date

ii. Marine Cargo: The contents of the marine cargo are-

– name & address of the assured

 – detail about the vessel

– sailing date

– bill of lading

– voyage or period of insurance

– subject matter insured

– amount of premium

– agreed value (if any) amount insured hereunder

– clauses

– endorsements

– special conditions

– warranties & important notice

– signature of the proposer & date

iii. Marine Hull: The contents of the marine hull are-

– owners name & address

– name & registered no of the vessel

– general description of the vessel (construction, length, depth, draft

etc)

– carrying capacity

– gross tonnage

– net tonnage

– present general condition of the vessel

– details of machinery (Horse power, age of engine, speed)

 – purpose of vessel to be used

– time of vessel surveyed

– period of survey certificate

– total premium & claim paid for all vessel‟s

– value to be insured

– period of voyage

– name &experience of the captain

– signature of the proposer & date

iv. Motor insurance: The contents of the motor insurance are

– name

– address

– business of the proposer

– particulars of the vehicle such as registration number, power

capacity, year of manufacture, license, about previous insurance

– detail about full insured value

– total premium etc

So these are the essential contents that are necessary to form a contract between the
insurer & insured.

C. Elements of insurance contract

The elements of insurance contract include both the elements of general & special
contract. They are described below:
  Elements of general contract

It includes all the elements that are required to form the entire contract which make
the contract enforceable by a court of law. They are:

i. Two or more parties: To form a contract there must be the presence of two
or more parties. A contract can‟t be formed by single parties.

ii. Offer & acceptance: There must be a lawful offer by insured & a lawful
acceptance of the offer by the insurer.

iii. Lawful consideration: The promise to pay a fixed sum at given

contingency is the insurer who must have some return for his promise. It
may be sums, right, interest, profit etc.

iv. Competent to make contract: The parties to the contract must be competent
to make a contract it cannot be enforced by a court of law.

v. Free consent: In order to be enforceable a contract must be based on the

free consent of all the parties otherwise it will be a void contract if it is
given by coercion, undue influence, mistake, fraud, misrepresentation.

vi. Legal object: The object for which the contract has been entered must be
legal otherwise it will be illegal immoral or opposed to public policy.

 Elements of special contract

It includes all the elements that are required to form an insurance contract specially.
They are described below:

i. Insurable interest: The insurer should have a pecuniary or financial or

monetary interest in the subject matter to be insured. For example importer
has insurable interest on the goods imported.

ii. Utmost good faith: According to this element both the parties to the
insurance contract must disclose all the material fact to the risk voluntarily
to each other. Any breach of this duty shall render the contract voidable.
 iii. Indemnity: Indemnity implies that the insurer undert6akes to put the
insured in the same financial position as he occupied before incurring the
loss.

iv. Subrogation: Subrogation refers to the right of the insurer to stand in the
place of the insured after the settlement of claim, so far as the insured‟s
right of recovery from alternative source is involved.

v. Warranties: Warranty is very important condition in the insurance contract

which is to be fulfilled by the insured. If warranties are not followed the
contract is cancelled by the other party whether risk has occurred or not.

vi. Proximate cause: Proximate cause means the active, efficient cause that
sets in motion a train of events which bring about a result, without the
intervention of any force started & working actively from a new &
independent source.

vii. Assignment & nomination: Marine & life policies can be freely assigned
but assignment fire & accident policies are not valid without the prior
consent of the insurer-except changes of interest by will or operation of
law.

viii. Return of premium: Ordinarily the premium once paid cannot be refunded.
However, the refund is allowed.

a) Non attachment of risk.

b) Undeclared balance of an open policy.

c) Payment of premium is apportioned etc.

So an insurance contract must have the above elements in order to make it lawful
otherwise it may be regarded as a voidable contract at the opinion of the aggrieved
party.

D. Pricing system of several insurances of GIL:

Pricing system of various insurance policies of Global Insurance Ltd. is described in

below:
  Pricing Tools:

Global Insurance Ltd. uses the following pricing tools

i. Law of large number of insurance

ii. Price elasticity of demand

iii. Break even analysis and target profit pricing

iv. Value based pricing for property and asset

v. Cost based pricing for property and asset

 Pricing Process:

Global Insurance Ltd. measures how much risk is involved with the insurable item. If
it bears high risk then they take high premium as well as it bears low risk, then they
charge low premium. Thereafter, they also made pricing on excepted loss. They also
analyze the price demand relationship.

When determining pricing, they also calculated:

A. Single Premium plan

B. Level premium plan

 Pricing Elements:

At time of pricing elements are needed –

i. Percentage of expected loss

ii. Number of person insured.

iii. Claims to be settled.

iv. Present value of net claim.

v. Net single premium.

 vi. Net Annual premium

The significant result of the business of the company in 2013 is mentioned

below:

Global Insurance made some excellent result in business in the year of 2013
(Source: Annual Report 2013, page – 28). These are –

 Fire Insurance: The Company earned Fire Insurance Premium of Tk.

88.77 million in 2013 as against Tk. 67.72 million in 2012, registering a
growth of 31.08%.

 Marine Insurance: The Company earned Marine Insurance premium of

Tk. 127.85 million in 2013 as against Tk. 104.47 million in 2012,
registering a growth of 22.38%.

 Motor Insurance: The company earned Motor Insurance premium of Tk.

22.71 million 2013 as against Tk. 28.67 million 2012.

 Miscellaneous Insurance: The Company earned Miscellaneous Insurance

premium of Tk. 13.49 million in 2013, as against Tk. 29.43 million in
2012.

Reinsurance Department Operations

Reinsurance occurs when multiple insurance companies share risk by purchasing
insurance policies from other insurers to limit the total loss the original insurer would
experience in case of disaster. By spreading risk, an individual insurance company
can take on clients whose coverage would be too great of a burden for the single
insurance company to handle alone. When reinsurance occurs, the premium paid by
the insured is typically shared by all of the insurance companies involved.

Global Insurance Ltd. has obtained adequate re-insurance cover from state-owned
Sadharan Bima Corporation through a surplus treaty agreement. Besides, they are in
close liaison with foreign insurance mainly JB Boda technical experts and can obtain
any expert opinion within a very short period of time. They are in a position to
underwrite any amount of risk in view of the above arrangement.

The main operations in Reinsurance Department of Global Insurance Ltd.:

i. Attend to risks requiring reinsurance in accordance with guidelines

ii. Maximize retention of risks through sound assessment of risks and

underwriting information

iii. Compile reinsurance statistical data, treaty renewal information as required

iv. Ensure maximum efficiency and effectiveness in work processes

v. Ensure documentation is handled properly

vi. Processing of Facultative Inward Reinsurance (FIR) including checking

and signing off policies in accordance with IDRA and Sadharan Bima
Corporation.

Reinsurance can help a company by providing:

 Risk Transfer - Companies can share or transfer of specific risks with other
companies

 Arbitrage - Additional profits can be garnered by purchasing insurance

elsewhere for less than the premium the company collects from policyholders.

 Capital Management - Companies can avoid having to absorb large losses by

passing risk; this frees up additional capital.

 Solvency Margins - The purchase of surplus relief insurance allows companies

to accept new clients and avoid the need to raise additional capital.

 Expertise - The expertise of another insurer can help a company obtain a

proper rating and premium.
Claim Department Operations
Global Insurance Company‟s net claim settled decrease from BDT Tk. 26.51 million
in 2013 to BDT Tk. 24.55 million at 2012 (Source: Annual Report 2013, page – 29).

The main operations under Claim Departments of Global Insurance Ltd:

A. Legal council:

i. Negotiate and settle all classes of claims.

ii. Provide legal advice on all aspects of law and claims including regulatory
provisions.

iii. Advise on adequacy of loss reserves.

iv. Pursue subrogated actions against third parties.

v. Assist in drafting or reviewing policy wordings and other contracts.

vi. Assist with training staff on legal matters and drafting of instruction
manuals relating to insurance law.

B. House survey:

i. Conduct surveys and assess damages to motor vehicles.

ii. Verify and compare the actual damage to vehicles with estimates.

iii. Adjust the cost of repairs and finalize estimates.

iv. Put up survey reports.

v. Check accident vehicles after repair.

vi. Assist in recovery actions.

C. Motor insurance:

i. Investigate/negotiate/handle claims within personal handling limit and in

accordance with Company policies and standards.

ii. Respond to allocated mail, and participate in the provision of a prompt and
efficient service to clients.

iii. Assist in recovery action.

iv. Assist in the preparation of claims statistical data.

v. Internal Audit department operations.

D. Property and Causality:

i. Handle enquiries and correspondence of Property & Casualty claims.

ii. Investigate and negotiate Property & Casualty claims.

iii. Decide and instruct on use appointment of service providers and reserve
provision.

iv. Pursue recoveries.

v. Review claim files including setting of reserves and monitoring of

recoveries.

vi. Check and authorize payments.

E. Fraud Detection Support:

Fraud detection is an important part of an insurance company‟s activity. One way

to detect suspicious claims is by analyzing claims activity and highlighting
exceptions. The system contains built-in tools and measurements to facilitate
fraud detection.
Claim settlement of several insurance policies can be performing by
following common steps:

a. Evidence: Before admitting claim relevant evidence in connection with the

policy is required. Party provides information through phone or writing.

b. Notice of Claim: A prompt notice of claim is required. The receipt of notice or

approval of the course of action taken by the insured does not mean that the
liability of any loss in acknowledged.

c. Document required for claim: These are required at the time of claim –

a. Certificate of insurance

b. Bill of lading

c. Copy of protest

d. Certificate of survey

e. Account sales

f. Letter of subrogation

g. Police GD copy

d. The insured cannot recover from the company a loss of the extent of the
insurable, if it was an unvalued policy. In case of a valued policy the assured
can recover the loss to the full extent of the valued fixed by the policy subject
to the average clauses where there are two or more underwrite, they shall bear
the loss in the proportion of their subscription. It includes –

 Successive losses

 Other charges

e. Inquiry: If the inquiry results are positive and proper submission of all the
necessary documents is done than the Global Insurance Ltd. settles the claims
on the basis of total loss and partial loss.
 f. Claim settlement: claim department settle the claim after getting the report of
surveyor. The MD (managing director) can issue claims amounting up to two
lacks of the claim more than five lacks and approval of executive board
meeting is needed.

Accounts Department Operations

Accounts department of Global Insurance Ltd. oversees the preparation of internal
and external operating and financial reports for other departments, rating bureaus, and
company management.

The main operations of this department are:

i. Coordinate the CPA (Certified Public Account) and state financial report
and audits.

ii. Managing bank reconcilements, payroll, budgets, the expense allocation

system, and accounts payable.

iii. Printing all checks; make arrangements for deposits, and handle all state
payroll taxes.

iv. File state premium tax returns. In addition, they oversee annual budgeting
of expenses and handle premium and loss accounting with reinsurance
companies.

v. Provide support to operating/supporting units in relation to financial

matters

vi. Assist in overseeing the operations of the payment and receipting sections
operations

vii. Ensure that payments of commission, return premiums, reinsurance,

expenses are duly approved and processed in a timely and accurate
manner.
 viii. Assist in monitoring and report on outstanding debtors‟ position and
overdue balances.

ix. Assist in the computation of profit commission in accordance to

agreements signed.

x. Assist in the implementation and monitoring of financial and internal

controls.

xi. Assist in Head Office and management reporting.

xii. Issue official receipts for all incoming payments and analyze payments
received against the outstanding balances including processing of credit
card charges.

xiii. Generate daily cheque listings for banking.

xiv. Maintain the daily bank balance records.

xv. Handle the petty cash.

xvi. Attend to enquiries from clients and intermediaries.

xvii. Assist to follow up on outstanding payment matters.

xviii. Provide on-the-job training and guidance to new staff on cashier‟s duties.

xix. Perform sorting, filing and dispatch duties.

Internal Audit Department Operations

Internal audits of Global Insurance provide a number of important services to
company management. These include –

 Detecting and preventing fraud.

 Testing internal control.

 Monitoring compliance with company policy and government regulation.

The other main operations of the Internal Audit Department are:

i. Develop an annual Audit Plan using appropriate risk-based methodology,

including risks or control concerns identified by management and the
Audit Committee, and submit that plan to the Audit Committee for review
and approval.

ii. Implement the annual Audit Plan, as approved, including, and as

appropriate, any special mandates or project s requested by management
and the Audit Committee.

iii. Maintain a professional audit staff with sufficient knowledge, skills,

experience and professional certification to meet the requirement of this
Charter.

iv. Issue an audit report to management and any other relevant parties at the
conclusion of each audit in order to communicate the audit findings,
recommendations and management action plans.

v. Follow up on outstanding management action plans to ensure significant

risks and major deficiencies identified are effectively addressed and
remediated by management within the mutually agreed timeframe.

vi. Prepare and present quarterly reports to the Audit Committee summarizing
the status and the results of audit activities.

vii. Identify key processes supporting financial reporting, assist business

process owners to identify and document effective internal controls, and
test key financial reporting controls in identified financial systems.

viii. Assess the effectiveness of the disclosure controls and procedures on a

quarterly basis.

ix. Review the Company's Antifraud program and practices with management
and the Audit Committee.

x. Investigate on suspected fraudulent activities within the organization and

notify management and the Audit Committee of the results.
 xi. Serve as a resource to the Company in identifying the need for and
characteristics of adequate systems of control.

xii. Keep the Audit Committee informed of emerging trends and successful
practices in internal auditing.

xiii. Assist the Audit Committee in any other way in connection with the
discharge of its duties and responsibilities.

Opportunities for improving management control, profitability, and the Company's

image may be identified during audits. They will be communicated to the appropriate
level of management.

Information Technology Department Operations

The company is working to maintain the level of expertise with the pace of worldwide
development of Information Technology. They have some plans to provide up-to-date
and modern services to clients and development of internal control through their
Information Technology. The IT division of Global Insurance Limited is now working
with web based full automation system by which it becomes easier to communicate
and sharing data with their branches. The website of the company is full of relevant
information of the company.

Their main activities under IT department are given below:

i. Mange IT and Computer related jobs:

– Plan, organize, direct, control and evaluate the operations of

information systems.

– Develop and implement policies and procedures for automation and

computer systems operations and development.
 – Meet the managers to discuss systems personnel and contractors to
design, develop, implement, operate and administer computers and
networks and information systems.

– Control the computer systems budget and expenditures.

ii. Ensure technology is accessible and equipped with current hardware and
software:

– Troubleshoot hardware, software and network operating system.

– Provide orientation to new users of existing technology.

– Train staff about potential uses of existing and new technology.

– Provide recommendations about accessing information and support.

– Maintain current and accurate inventory of technology to ensure

maximum access.

iii. Monitor and maintain technology to ensure maximum access:

– Maintain log or list of required repairs and maintenance

– Make recommendations about purchases of technology resources.

iv. Software development and analysis:

– Define, develop, test, analyze and maintain new and current software
applications in support of the achievement of business requirements.

– Develop and maintains applications and database by evaluating

business needs, analyzing requirements, developing software systems.

– Conduct requirements gathering meetings and produce technical and

business documentation.

– Confirms program operation by conducting tests; modifying program

sequence or codes
 – Indentifies requirements by establishing personal report with potential
and actual clients and with other persons in a position to understand
service requirements.

– Protects operations by keeping information confidential.

v. Data base analysis:

– Responsible for defining and maintaining all data interface definitions

between various application platforms

– Conducts through problem analysis in regard to technical system and

application programs; documents findings and proposes problem
resolution alternatives.

– Database backup and restore.

vi. Entry the client information into the main database.

vii. Perform other related duties as required during working hours and after
working hours if needed.
 Chapter
04
Findings, Recommendations
and Conclusion

Findings
Recommendations
Conclusion
Bibliography
 Findings, Recommendations
and Conclusion

Findings
On the basis of previous analysis the following findings are observed during the
internship period:

The capability of liquidation of Global Insurance Ltd. (GIL) is very sound and
consistent.

Sensitivity analysis shows Global Insurance Ltd. won‟t have to face any loss
in case of individual increment or decrement of net premium, operating
expense and tax.

The best sides of GIL are underwriting and reinsurance department.

In order to create the growth, GIL expanding its target market by providing
respective services and establish efficient department to perform such task.

Lack of sufficient experienced executives especially in the claims and

accounts department.

Global Insurance Ltd. takes relatively more times in giving guarantee of claim
to different parties. It seriously discourages the process of company who are
inclined in contract in insurance policy. The total settlement process event
takes month after month to give the final decision.

GIL does not sanction loan to all sector as they require for better performance
in this competitive markets. It concentrates only on insurance policy.
Most of the customers of the insurance company ask for quality service.
Specially quick, accurate service and good behavior from insurer are expected
and a private insurance should provide such quality sufficiently.

Government must minimize the restriction on premium so that insurance

companies can fix their premium according to their demand.

The collected premium should be invested in large and beneficial sectors so

that GIL can return their clients expected in timely.
Recommendations
From the presiding discussion of the report, we can realize that the policy makers of
the insurance company should adopt effective measures in order to make good use of
the opportunities and to tackle the threats for ensuring a healthy development of the
insurance industry.

The following actions are suggested:

Global Insurance Ltd. (GIL) should practiced marketing through the use of
promotional tools such as advertising, sales promotion, public relation and
publicity, personal selling and direct marketing.

GIL should introduce more innovative and modern customer service.

Claim settlement should complete at quickest possible time.

Provide high quality value adding services to every customer consistently.

GIL should increase computer at every table.

GIL should hire adequate employees so that they can easily perform office

works.

GIL may increase branch at various suitable places and every district level.

The Insurance should ensure fare and quality recruitment process as well as
proper training facilities for its recruited and existing employees; this will
work in multiple ways to promote the overall performance of the Insurance.

Government must minimize the restriction on premium so that insurance

companies like Global Insurance Ltd can fix their premium according to their
demand.

Building a powerful management and marketing organization with strong

internal controls.
Conclusion

The insurance business has earned popularity in Bangladesh because of its

development where as people are becoming more aware of insurance policy.
Insurance policies give various types of protection in trade and commerce as well as
public property.

Global Insurance Limited is a new generation Insurance. It is committed to provide

high quality financial services/products to contribute to the growth of GDP of the
country through stimulating trade and commerce, creating employment opportunity
for the educated youth, poverty alleviation, raising standard of living of limited
income group and overall sustainable socio-economic development of the country.

Global Insurance Limited stands ninth position in the comparative list among 45
general insurance companies. GIL‟s overseas marine insurance policy became popular
for protecting accident in aboard. For the last couple of years the insurance company
has tried to improve their image in the mind of the people. In this case through the
competitive market GIL is doing well and holds the leadership. It‟s remarkable that if
Global Insurance Limited can hold their strong relationship with their clients, one day
this deep relationship will have good result for long term decision and policy.
Bibliography
Books & Articles:

Annual Report 2013 of Global Insurance Ltd (page no – 4, 7, 10, 11, 12, 16,
27, 28).

Azizul Haque Chowdhury; „Risk & Insurance‟ – Second Edition 2008,

Brothers Publications, (Page no: 47, 48, 49, 127).

Different brochure published by Global insurance.

Dr. A R Khan; „Insurance & Risk Management‟ – First edition 2013, BMF
Publications, (Page no: 79, 80, 81).

„Employee job responsibilities‟ documents of Admin, HR, Underwritings,

Reinsurance, Claim, Accounts and IT departments of the company.

Insurance Underwriting and Reinsurance manual published by Shadharan

Bima Corporation.

Insurance Underwriting and Claim Settlement manual published by Insurance

Development & Regulatory Authority Bangladesh (IDRA).

M N Mishra; „Insurance Principles & Practices‟ – Sixteenth edition 2009,

S.Chand Publications, (Page no: 130, 131, 290, 291)

Tariff book (insurance underwriting and claim settlement) of IDRA.

Web References:

– http://www.globalinsurancebd.com/

– http://www.idra.org.bd/idra-org/index.htm

– http://www.sbc.gov.bd/

– http://en.wikipedia.org/wiki/Insurance

– http://en.wikipedia.org/wiki/General_insurance

– http://www.investopedia.com/university/insurance/insurance8.asp