Limited risk of Catastrophically Large Losses

The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsures can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

Calculable Loss

The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim

Affordable Premium

If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance

Accidental Loss

The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable

Definite Loss

The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements

A large number of homogeneous exposure units

The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable

Principles of Insurance

1. A large number of homogeneous exposure units
2. Definite Loss
3. Accidental Loss
4. Large Loss
5. Affordable Premium
6. Calculable Loss
7. Limited risk of catastrophically large losses

Insurance

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Standard Insurance Ltd. (SIL)

Standard Insurance Ltd. (SIL) is one of the leading General Insurance Company in Bangladesh. The Company was incorporated in November 03, 1999 as public limited company under the Companies Act 1994 and licensed under Insurance Act, 1938 in order to run all types of General Insurance business other than life Insurance business. It obtained certificate of commencement of business on November 03,1999 with an authorized and paid up capital of Tk. 300 million and Tk. 60 million respectively. Standard Insurance Ltd has got consent from the Department of Insurance on December 23, 1999.

Pioneer Insurance Company Limited

We like to take the privilege to introduce our Company , Pioneer Insurance Company Limited , sponsored & founded in 1996 by a group of entrepreneurs of Bangladesh who had earlier established themselves as leading industrialists and business magnates of the country. Pioneer Insurance Company Limited is a publicly traded company by shares and enlisted with Dhaka Stock Exchange and Chittagong Stock Exchange. The Company is financially sound and has been declaring dividend since inception. The Company has been assigned “AA3” rated General Insurance Company . “AA3” rating stands for high claim paying ability, good protection factors and an exception of variability in risk over time due to economic and/or underwriting conditions

Current Chairman Syed Manzur Elahi , Chairman of Apex Group & former Adviser of the Care Taker Government of People's Republic of Bangladesh, Ex-Chairman Mr.A.K.M. Rahmatullah, Ex-Member of the Parliament & Managing Director of Apex Tannery Ltd., Ex-Chairman Mr.Anis Ud Dowla Chairman, ACI Ltd., Ex-Chairman Mr.Tapan Chowdhury, Managing Director, Square Group & former Adviser of the Care Taker Government of People's Republic of Bangladesh, are the most successful business entrepreneurs of the country.

The company has a good number of dedicated and highly professional employees supported by qualified, experienced & technically sound executives. The Managing Director of the company, Mr.Q.A.F.M. Serajul Islam who is a holder of Diploma in General Insurance from Bangladesh Insurance Academy, has long experience in Insurance and Reinsurance. Prior to his joining the company he was Deputy Managing Director of Pragati Insurance Ltd. and Deputy General Manager of Sadharan Bima Corporation. Deputy Managing Director Mr. Al-Moeiz Laiwala MBA (IBA-DU), Deputy Managing Director Mr.Mizanur Rahman and Executive Director Mr.A.K.M.Jashimuddin Ahmed ABIA have also long experience in Insurance and Reinsurance.

The company has been honored to provide insurance protection for the most reputed business houses of its Sponsor Directors.
± Apex Tannery Group of Industries. ± Advanced Chemical Industries Ltd. ± Abeeco Industries Ltd. ± Bashundhara Group of Industries. ± Square group of Industries. ± Palmal Group of Industries. ± Brustoff Group of Industries. ± Shamsul Alamin Group of Industries. ± Rumki Industries Ltd.

Apart from sponsors, we have been enlisted with all the major Local and Foreign Banks Operating in Bangladesh to Underwrite their clients' Insurance business as under:

FOREIGN

LOCAL
Commercial Bank of Ceylone
All Nationalised Banks, such as
Citibank N.A.
Sonali Bank, Janata Bank, Agrani Bank, Rupali
Hong Kong & Shanghai Banking
Bank, Shilpa Bank, Bangladesh Krishi Bank &
Corporation Ltd.
Bangladesh Shilpa Rin Sangstha.
Standard Chartered Bank

Hanil Bank
Private Banks, such as
Habib Bank Ltd.
South East Bank Ltd.,
ALArafa Islami Bank, Bangladesh Ltd.
Prime Bank Ltd., Uttara Bank Ltd.,
National Bank of Pakistan
Dhaka Bank Ltd., Eastern Bank Ltd.,
State Bank of India
I.F.I.C. Bank Ltd., Islami

Bank Bangladesh Ltd.,

Arab Bangladesh Bank Ltd.,

Al-Arafah Islami Bank Bangladesh Ltd.,

BASIC Bank Ltd.,

Dutch Bangla Bank Ltd.,

Pubali Bank Ltd.

Mutual Trust Bank Ltd.,

Social Investment Bank Ltd.,

One Bank Ltd., Bank Asia Ltd.,

Oriental Bank Ltd.,

Bangladesh Commerce Bank Ltd.,

The City Bank Ltd., National Bank Ltd.
One Bank Ltd.
Our Authorized Capital is Tk.200 Million , out of which Tk.150 Million ( Sponsor- 60 Million & Public 90 Million) is Issued , Subscribed & Paid up Capital. Our company has a total investment of Tk.471.05 million consisting of National Investment Bond , Fixed Deposit with Banks and Shares as shown below :-
Taka in million
1. National Investment Bond 9.00
2. Fixed Deposit with Banks 278.02
3. Shares 179.27
Total 466.29
We are expanding our investment program with great care. Pioneer now hold 13,64,281 ordinary shares of Mutual Trust Bank Ltd of Tk.100 each including the approved bonus share for the year 2008. Accordingly the investment in the MTBL stood at Tk.170.75 million including premium of Tk.10.00 million paid at pre-IPO placement. The shares are currently quoted at about Tk.324 per share showing about 159% capital gains. Pioneer also hold 1 (one) share at Tk.1.00 million of Central Depository Bangladesh Ltd which has been formed under the Central Depository Act,1999. Since inception of our company in 1996, we have progressed tremendously in the field of Insurance business. This is evident from the fact that we have earned for ourselves a premium to the tune of as follows which would give you an idea of the steady progress that has been made by the Company.
Year
Figures in Million (BDT) 1996 23.14
1997 -85.47 ,1998 105.33 ,1999 131.99 ,2000 141.48 ,2001 144.58 ,2002 136.27
2003 147.09 ,2004 178.34 ,2005 245.41 ,2006 301.16 ,2007 385.20 ,2008 665.50

CLAIMS PAYMENT Clients service and prompt settlement of claims are the key to the success and growth of the company. Claims are settled immediately on completion of the required formalities by the insured and the surveyors.
Claim Statement From 2004 to 2008.
Marine Cargo
Square Pharmeceuticals Ltd. 99,63,650 9
Marine Cargo
Shahjalal Newsprint Ltd. 79,70,196
10. Marine Hull Kazi Brothers 71,15,000

RE- INSURANCE ARRANGEMENTS :
For handling insurance of technological and multi-dimensional projects, and for Reinsurance placement in the world market a direct insurer needs support of multinational insurance Brokers. We have good working relation with TYSERS, London , Re-insurance broker of the SBC, the state owned corporation on insurance & re-insurance. Besides , we have good relationship with the following world renowned R/I brokers : -
a) J.B. Bhoda & Co Ltd. Mumbai.
b) M.B Bhoda & Co Ltd., Mumbai
c) AL Wasl , Dubai
d) Heritage, Kolkatta
e) J.B. Bhoda & Co. Ltd., Hongkong.
f) J.B. Bhoda & Co. Ltd., Malaysian.
g) Tysers, London
50% of our Treaty reinsurance is placed with Sadharan Bima Corporation as per Law of Land and balance 50% with GIC of India having ‘A' ( Excellent ) security rating.
We have also direct reinsurance placement with BESTRE, Malaysian & ASIAN RE, Bangkok.
We have now confidence in our technical and financial ability to underwrite big industrial or infrastructure projects.
Powered By: IT Dept. Head Office, Dhaka.

CURRENT INSURANCE MARKET ENVIRONMENT IN BANGLADESH

After the emergence of the People’s Republic of Bangladesh in 1971, the government nationalized the insurance industry along with the banks in 1972 by Presidential Order No. 95. By virtue of this order, all companies and organization transacting all types of insurance business in Bangladesh came under this nationalization order. This was followed by creation of five insurance companies in the life and non-life sector. Further changes were brought on 14th May, 1973. Through the enactment of Insurance Corporation Act VI, 1973 which led to creation of two corporations namely Sadharan Bima Corporation for general insurance and, Jiban Bima Corporation for life insurance in Bangladesh. In other words Sadharan Bima Corporation(SBC) emerged on 14th May, 1973 under the Insurance Corporation Act (Act No. VI) of 1973 as the only state owned organization to deal with all classes of general insurance & re-insurance business emanating in Bangladesh.
Thereafter SBC was acting as the sole insurer of general Insurance till 1984. Bangladesh Government allowed the private sector to conduct business in all areas of insurance for the first time in 1984. The private sector availed the opportunity promptly and came forward to establish private insurance companies through promulgation of the Insurance Corporations (Amendment) Ordinance (LI of 1984) 1984.
The Insurance Market in Bangladesh now consists of two state-owned corporations, forty three and seventeen private sector general & life insurance companies respectively, a total of 62 insurance companies. Thus the insurance sector in Bangladesh has grown up substantially and deepened remarkably with number of companies in both life and general segments. With the expansion of size of the insurance market, the volume of assets of the industry has also increased substantially.
SBC is entitled to 50% of public sector business. Insurance Corporation (Amendment) Act 1990 provides that fifty percent of all insurance business relating to any public property or to any risk or liability appertaining to any public property shall be placed with the SBC and the remaining fifty percent of such business may be placed with this corporation or with any other insurers in Bangladesh. But for practical reason and in agreement with the Insurance Association of Bangladesh SBC underwrites all the public sector business and 50% of that business is distributed among the existing 43 private general insurance companies equally under National Co-insurance Scheme.
In respect of reinsurance, the same act provides that fifty percent of a company’s reinsurance business must be placed with the Sadharan Bima Corporation and remaining fifty percent may be reinsured either with this Corporation or with any insurer in Bangladesh or abroad. At present, nearly all the companies place 100% of their reinsurance business with the SBC.

Life insurance

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.

The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
To be a life policy the insured event must be based upon the lives of the people named in the policy.

Insured events that may be covered include:

Serious illness Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.

Contents

1 Overview
1.1 Parties to contract
1.2 Contract terms
1.3 Costs, insurability, and underwriting
1.4 Death proceeds
1.5 Insurance vs Assurance
2 Types of life insurance
2.1 Temporary Term Insurance
2.2 Permanent Life Insurance
2.2.1 Whole life coverage
2.2.2 Universal life coverage
2.2.3 Limited-pay
2.2.4 Endowments
2.2.5 Accidental Death
3 Related Life Insurance Products
4 Investment policies
5 Annuities
6 Tax and life insurance
6.1 Taxation of life insurance in the United States
6.2 Taxation of life assurance in the United Kingdom
6.2.1 Pension Term Assurance
7 History
7.1 Market trends
8 Stranger Originated Life Insurance
9 Criticism
10 See also
11 References
11.1 Specific references
12 External links
//

Overview

Parties to contract
There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party to it.

The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing.

In cases where the policy owner is not the insured (also referred to as the celui qui vit or CQV), insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest. The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be great. In at least one case, an insurance company which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds), was found liable in court for contributing to the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.171 (1957)).

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most US states specify that the contestability period cannot be longer than two years; only if the insured dies within this period will the insurer have a legal right to contest the claim on the basis of misrepresentation and request additional information before deciding to pay or deny the claim.
The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age (such as 100 years old).

Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to fund claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries. Actuaries are professionals who employ actuarial science, which is based in mathematics (primarily probability and statistics). Mortality tables are statistically-based tables showing expected annual mortality rates. It is possible to derive life expectancy estimates from these mortality assumptions. Such estimates can be important in taxation regulation.

The three main variables in a mortality table have been age, gender, and use of tobacco. More recently in the US, preferred class specific tables were introduced. The mortality tables provide a baseline for the cost of insurance. In practice, these mortality tables are used in conjunction with the health and family history of the individual applying for a policy in order to determine premiums and insurability. Mortality tables currently in use by life insurance companies in the United States are individually modified by each company using pooled industry experience studies as a starting point. In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables were the typical reference points, while the 2001 VBT and 2001 CSO tables were published more recently. The newer tables include separate mortality tables for smokers and non-smokers and the CSO tables include separate tables for preferred classes.
Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males aged 25 will die during the first year of coverage after underwriting. Mortality approximately doubles for every extra ten years of age so that the mortality rate in the first year for underwritten non-smoking men is about 2.5 in 1,000 people at age 65.Compare this with the US population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to health or smoking status).
The mortality of underwritten persons rises much more quickly than the general population. At the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year. Consequently, in a group of one thousand 25 year old males with a $100,000 policy, all of average health, a life insurance company would have to collect approximately $50 a year from each of a large group to cover the relatively few expected claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35 per policy). Administrative and sales commissions need to be accounted for in order for this to make business sense. A 10 year policy for a 25 year old non-smoking male person with preferred medical history may get offers as low as $90 per year for a $100,000 policy in the competitive US life insurance market.

The insurance company receives the premiums from the policy owner and invests them to create a pool of money from which it can pay claims and finance the insurance company's operations. Contrary to popular belief, the majority of the money that insurance companies make comes directly from premiums paid, as money gained through investment of premiums can never, in even the most ideal market conditions, vest enough money per year to pay out claims.[citation needed] Rates charged for life insurance increase with the insurer's age because, statistically, people are more likely to die as they get older.
Given that adverse selection can have a negative impact on the insurer's financial situation, the insurer investigates each proposed insured individual unless the policy is below a company-established minimum amount, beginning with the application process. Group Insurance policies are an exception.

This investigation and resulting evaluation of the risk is termed underwriting. Health and lifestyle questions are asked. Certain responses or information received may merit further investigation. Life insurance companies in the United States support the Medical Information Bureau (MIB) , which is a clearinghouse of information on persons who have applied for life insurance with participating companies in the last seven years. As part of the application, the insurer receives permission to obtain information from the proposed insured's physicians.

Underwriters will determine the purpose of insurance. The most common is to protect the owner's family or financial interests in the event of the insurer's demise. Other purposes include estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank loans or buy-sell provisions of business agreements are another acceptable purpose.

Life insurance companies are never required by law to underwrite or to provide coverage to anyone, with the exception of Civil Rights Act compliance requirements. Insurance companies alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable. The policy can be declined (turned down) or rated.[citation needed] Rating increases the premiums to provide for additional risks relative to the particular insured.[citation needed]

Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco.[citation needed] Preferred Best is reserved only for the healthiest individuals in the general population. This means, for instance, that the proposed insured has no adverse medical history, is not under medication for any condition, and his family (immediate and extended) have no history of early cancer, diabetes, or other conditions. Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses.[citation needed] Most people are in the Standard category.[citation needed] Profession, travel, and lifestyle factor into whether the proposed insured will be granted a policy, and which category the insured falls. For example, a person who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country.[citation needed] Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances.

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim. The normal minimum proof required is a death certificate and the insurer's claim form completed, signed (and typically notarized).[citation needed] If the insured's death is suspicious and the policy amount is large, the insurer may investigate the circumstances surrounding the death before deciding whether it has an obligation to pay the claim.
Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over time in regular recurring payments for either a specified period or for a beneficiary's lifetime.[citation needed]

Insurance vs Assurance
The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to happen. "Insurance" is the generally accepted term, however, people using this description are liable to be corrected. In the United States both forms of coverage are called "insurance", principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one.

Types of life insurance
Life insurance may be divided into two basic classes – temporary and permanent or following subclasses - term, universal, whole life and endowment life insuraTemporary Term Insurance
Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.
The three key factors to be considered in term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).
Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies.
A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
The four basic types of permanent insurance are whole life, universal life, limited pay and endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy.
Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. There are several types of universal life insurance policies which include "interest sensitive" (also known as "traditional fixed universal life insurance"), variable universal life insurance, and equity indexed universal life insurance.
A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.
With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy.
Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures.
Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B.
Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity.
Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older).

Limited-pay
Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

Endowments

Main article: Endowment policy
Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier.
In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do.
Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65).

Accidental Death
Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances.
It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc.
Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured who puts themselves at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering.
Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as a double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover.

Related Life Insurance Products
Riders are modifications to the insurance policy added at the same time the policy is issued. These riders change the basic policy to provide some feature desired by the policy owner. A common rider is accidental death, which used to be commonly referred to as "double indemnity", which pays twice the amount of the policy face value if death results from accidental causes, as if both a full coverage policy and an accidental death policy were in effect on the insured. Another common rider is premium waiver, which waives future premiums if the insured becomes disabled.
Joint life: insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first death or second death.
Survivorship life: is a whole life policy insuring two lives with the proceeds payable on the second (later) death.
Single premium whole life: is a policy with only one premium which is payable at the time the policy is issued.
Modified whole life: is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy.
Group life insurance: is term insurance covering a group of people, usually employees of a company or members of a union or association. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size and turnover of the group, and the financial strength of the group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage.
Senior and preneed productS: Insurance companies have in recent years developed products to offer to niche markets, most notably targeting the senior market to address needs of an aging population. Many companies offer policies tailored to the needs of senior applicants. These are often low to moderate face value whole life insurance policies, to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. This may also be marketed as final expense insurance, and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses.
Preneed (or prepaid) insurance policies: are whole life policies that, although available at any age, are usually offered to older applicants as well. This type of insurance is designed specifically to cover funeral expenses when the insured person dies. In many cases, the applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for. The death proceeds are then guaranteed to be directed first to the funeral services provider for payment of services rendered. Most contracts dictate that any excess proceeds will go either to the insured's estate or a designated beneficiary.

Investment policies
With-profits policies:
Main article: With-profits policy
Some policies allow the policyholder to participate in the profits of the insurance company these are with-profits policies. Other policies have no rights to participate in the profits of the company, these are non-profit policies.
With-profits policies are used as a form of collective investment to achieve capital growth. Other policies offer a guaranteed return not dependent on the company's underlying investment performance; these are often referred to as without-profit policies which may be construed as a misnomer.
Investment Bonds
Main article: Insurance bond
Pensions: Pensions are a form of life assurance. However, whilst basic life assurance, permanent health insurance and non-pensions annuity business includes an amount of mortality or morbidity risk for the insurer, for pensions there is a longevity risk.
A pension fund will be built up throughout a person's working life. When the person retires, the pension will become in payment, and at some stage the pensioner will buy an annuity contract, which will guarantee a certain pay-out each month until death.

Annuities
Main article: annuity
An annuity is a contract with an insurance company whereby the purchaser pays an initial premium or premiums into a tax-deferred account, which pays out a sum at pre-determined intervals. There are two periods: the accumulation (when payments are paid into the account) and the annuitization (when the insurance company pays out).

Tax and life insurance

Taxation of life insurance in the United States
Premiums paid by the policy owner are normally not deductible for federal and state income tax purposes.
Proceeds paid by the insurer upon death of the insured are not included in gross income for federal and state income tax purposes;[6] however, if the proceeds are included in the "estate" of the deceased, it is likely they will be subject to federal and state estate and inheritance tax.

Cash value increases within the policy are not subject to income taxes unless certain events occur. For this reason, insurance policies can be a legal and legitimate tax shelter wherein savings can increase without taxation until the owner withdraws the money from the policy. On flexible-premium policies, large deposits of premium could cause the contract to be considered a "Modified Endowment Contract" by the Internal Revenue Service (IRS), which negates many of the tax advantages associated with life insurance. The insurance company, in most cases, will inform the policy owner of this danger before applying their premium.
Tax deferred benefit from a life insurance policy may be offset by its low return in some cases. This depends upon the insuring company, type of policy and other variables (mortality, market return, etc.). Also, other income tax saving vehicles (i.e. Individual Retirement Account (IRA), 401K or Roth IRA) may be better alternatives for value accumulation. This will depend on the individual and their specific circumstances.
The tax ramifications of life insurance are complex. The policy owner would be well advised to carefully consider them. As always, the United States Congress or the state legislatures can change the tax laws at any time.

Taxation of life assurance in the United Kingdom
Premiums are not usually allowable against income tax or corporation tax, however qualifying policies issued prior to 14 March 1984 do still attract LAPR (Life Assurance Premium Relief) at 15% (with the net premium being collected from the policyholder).
Non-investment life policies do not normally attract either income tax or capital gains tax on claim. If the policy has as investment element such as an endowment policy, whole of life policy or an investment bond then the tax treatment is determined by the qualifying status of the policy.
Qualifying status is determined at the outset of the policy if the contract meets certain criteria. Essentially, long term contracts (10 years plus) tend to be qualifying policies and the proceeds are free from income tax and capital gains tax. Single premium contracts and those run for a short term are subject to income tax depending upon your marginal rate in the year you make a gain. All (UK) insurers pay a special rate of corporation tax on the profits from their life book; this is deemed as meeting the lower rate (20% in 2005-06) liability for policyholders. Therefore a policyholder who is a higher rate taxpayer (40% in 2005-06), or becomes one through the transaction, must pay tax on the gain at the difference between the higher and the lower rate. This gain is reduced by applying a calculation called top-slicing based on the number of years the policy has been held. Although this is complicated, the taxation of life assurance based investment contracts may be beneficial compared to alternative equity-based collective investment schemes (unit trusts, investment trusts and OEICs). One feature which especially favors investment bonds is the '5% cumulative allowance' – the ability to draw 5% of the original investment amount each policy year without being subject to any taxation on the amount withdrawn. If not used in one year, the 5% allowance can roll over into future years, subject to a maximum tax deferred withdrawal of 100% of the premiums payable. The withdrawal is deemed by the HMRC (Her Majesty's Revenue and Customs) to be a payment of capital and therefore the tax liability is deferred until maturity or surrender of the policy. This is an especially useful tax planning tool for higher rate taxpayers who expect to become basic rate taxpayers at some predictable point in the future (e.g. retirement), as at this point the deferred tax liability will not result in tax being due.
The proceeds of a life policy will be included in the estate for death duty (in the UK, inheritance tax (IHT)) purposes, except that policies written in trust may fall outside the estate. Trust law and taxation of trusts can be complicated, so any individual intending to use trusts for tax planning would usually seek professional advice from an Independent Financial Adviser (IFA) and/or a solicitor.

Pension Term Assurance
Although available before April 2006, from this date pension term assurance became widely available in the UK. Most UK product providers adopted the name "life insurance with tax relief" for the product. Pension term assurance is effectively normal term life assurance with tax relief on the premiums. All premiums are paid net of basic rate tax at 22%, and higher rate tax payers can gain an extra 18% tax relief via their tax return. Although not suitable for all, PTA briefly became one of the most common forms of life assurance sold in the UK until the Chancellor, Gordon Brown, announced the withdrawal of the scheme in his pre-budget announcement on 6 December 2006. The tax relief ceased to be available to new policies transacted after 6 December 2006, however, existing policies have been allowed to enjoy tax relief so far.
History
Main article: History of insurance
Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century England, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous Lloyd's of London.
The first insurance company in the United States was formed in Charleston, South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United States insured the lives of slaves for their owners. In response to bills passed in California in 2001 and in Illinois in 2003, the companies have been required to search their records for such policies. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation.

Market trends

Life insurance premiums written in 2005
According to a study by Swiss Re, the EU was the largest market for life insurance premiums written in 2005 followed by the USA and Japan.

Stranger Originated Life Insurance
Stranger Originated Live Insurance or STOLI is a life insurance policy that is held or financed by a person who has no relationship to the insured person. Generally, the purpose of life insurance is to provide peace of mind by assuring that financial loss or hardship will be lessened or eliminated in the event of the insured person's death. STOLI has often been used as an investment technique whereby investors will encourage someone (usually an elderly person) to purchase life insurance and name the investors as the beneficiary of the policy. This undermines the primary purpose of life insurance as the investors have no financial loss that would occur if the insured person were to die. In some jurisdictions, there are laws to discourage or prevent STOLI.

Criticism
Although some aspects of the application process (such as underwriting and insurable interest provisions) make it difficult, life insurance policies have been used in cases of exploitation and fraud. In the case of life insurance, there is a motivation to purchase a life insurance policy, particularly if the face value is substantial, and then kill the insured. Usually, the larger the claim, and/or the more serious the incident, the larger and more intense will be the number of investigative layers, consisting in police and insurer investigation, eventually also loss adjusters hired by the insurers to work independently.[7]
The television series Forensic Files has included episodes that feature this scenario. There was also a documented case in 2006, where two elderly women are accused of taking in homeless men and assisting them. As part of their assistance, they took out life insurance on the men. After the contestability period ended on the policies (most life contracts have a standard contestability period of two years), the women are alleged to have had the men killed via hit-and-run car crashes
Recently, viatical settlements have thrown the life insurance industry into turmoil. A viatical settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy holder. The policy holder sells the policy (including the right to name the beneficiary) to a purchaser for a price discounted from the policy value. The seller has cash in hand, and the purchaser will realize a profit when the seller dies and the proceeds are delivered to the purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their rates with the assumption that a certain portion of policy holders will seek to redeem the cash value of their insurance policies before death. They also expect that a certain portion will stop paying premiums and forfeit their policies. However, viatical settlements ensure that such policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of the potentially large profits, have even actively sought to collude with uninsured elderly and terminally ill patients, and created policies that would have not otherwise been purchased. Likewise, these policies are guaranteed losses from the insurers' perspective.
The criticism goes also in the direction of pointing out much lower payouts for life insurance than for health or disability insurance in some countries (for example, UK)

Meghna Life Insurance Co. Ltd.

We are proud of our transparent and accountable services being rendered to our valued customers at their utmost satisfaction. Our quality products have already drew the attraction of general mass. We are relentlessly working towards our desired goal.


Meghna Life Insurance Co. Ltd. is one of the leading Life Insurance Companies in Bangladesh. It has a very dignified management having magnificent professional Identity, illustrious educational background and honesty. It comprises with a 18 members Board of Directors headed by the Hon’ble Chairman Mr. Nizam Uddin Ahmed. [MORE]


Meghna Life has ceaselessly been working to render better services to its policyholders. Its prompt service, instant action relating to any servicing for the valued clients has led it towards the pinnacle of success and prosperity. [MORE]



Meghna Life has earned name and fame for communicating prompt and effective information to its valued clients as well as its officials regarding policy matters and other development activities. [MORE]



Meghna Life has a very prudent and efficient management who have got sound technical knowledge and professional skill on Insurance. The underwriters do their jobs perfectly, the claims which are raised by the Insured are accurately and transparently settled by our professionally qualified skilled officials. [MORE]

Meghna Life Insurance Co. Ltd.
Biman Bhaban (2nd floor)100,
Motijheel C/A., Dhaka-1000.
Phone : 880-2-9558297, 9558993,
9556204Fax No. : 880-2-7171942
e-mail : mlicoltd@citechco.n

This Act is repealed by Insurance Ordinance, 2008 (Ordinance No.47 of 2008)[ বীমা অধ্যাদেশ, ২০০৮ (২০০৮ সনের ৪৭ নং অধ্যাদেশ)]
An Act to consolidate and amend the law relating to the business of insurance. 1 2

WHEREAS it is expedient to consolidate and amend the law relating to the business of insurance; It is hereby enacted as follows:-

CONTENTS

SECTIONS

PART IPRELIMINARY

1. Short title, extent and commencement
2. Definitions

PART IIPROVISIONS APPLICABLE TO INSURERS

2A. Insurers to be subject to this Act while liabilities remain unsatisfied
2B. This Act not to apply to certain insurers ceasing to enter into new contracts before commencement of Act
2C. Prohibition of transaction of insurance business by certain persons
3. Registration
3A. Renewal of Registration
3AA. Insurers not to transact both life and general insurance business
3B. Rates, terms and conditions of operation of an insurer
3BB. Basis for determination of premium rates
3BBB. Determination of premium rates for general insurance business
3C. Provisions relating to collection of premiums
3D. Provisions relating to reinsurances and insurances abroad
3E. Licensing of branch offices of insurers
3F. Restriction on issue of certain policies at new rates, etc.
4. [Omitted.]
5. Restriction on name of insurer
6. Requirements as to capital and share-holdings
7. Deposits
8. Reservation of deposits
9. Refund of deposits
10. Separation of accounts and funds
11. Accounts and balance-sheet
12. Audit
12A. Special audit
13. Actuarial report and abstract
14. Register of policies and register of claims
15. Submission of returns
16.[Omitted.]
17. Exemption from certain provisions of the Companies Act, 1913
17A. [Omitted.]
18. Furnishing reports
19. Abstract of proceedings of general meetings
20. Custody and inspection of documents and supply of copies
21. Powers of Chief Controller of Insurance regarding returns
22. Power of Chief Controller of Insurance to order revaluation 23. Evidence of documents
23. Evidence of documents
24. [Omitted.]
25. Returns to be published in statutory forms
26. Alterations in the particulars furnished with application for registration to be reported

INVESTMENT, LOANS AND MANAGEMENT

27. Investment of assets
27A. Insurers of general insurance business to have assets invested in Bangladesh
27B. Restriction on certain investments, etc.
28. Statement of investments of assets
29. Prohibition of loans
30. Liability of directors, etc., for loss due to contraventions of sections 27 and 29
31. Assets of insurer how to be kept
32. Appointment of managing agent prohibited
32A. Power to restrict payment of excessive remuneration
32B. Provisions relating to managers, etc.

INVESTIGATION

33. Power of Chief Controller of Insurance to order investigation
34. Powers of investigator
34A. Power to give directions to the insurer
34B. Power to require calling of meeting of directors, etc.
34C. Power to remove Chairman, Director, etc., of the insurer

AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

35. Amalgamation and transfer of Insurance business
36.Sanction of amalgamation and transfer by Court
37. Statements required after amalgamation and transfer
ASSIGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS
38.Assignment and transfer of insurance policies
39.Nomination by policy-holder

COMMISSION AND REBATES AND LICENSING OF AGENTS

40. Prohibition of payment by way of commission or otherwise for procuring business
40A. Limitation of expenditure on commission
40B. Limitation of expenses of management in life insurance business
40C. Limitation of expenses of management in general insurance business
40D. Remuneration
41. Prohibition of rebates
42. Licensing of insurance agents
42A. Certificates to employers of agents
42B. Powers to ensure compliance with certain provisions
43. Register of insurance agents
43A. Provisions of contracts with agents
44. Prohibition of cessation of payment of commission
44A. Insurance surveyors to hold certificates
44B. Second survey

SPECIAL PROVISIONS OF LAW

45. Policy not to be called in question on ground of mis-statement after two years
46. Application of Bangladesh law to policies issued in Bangladesh
47. Payment of money into Court
47A. Dispute over claims on life policies of small amount
47B. Interest on late settlement of claims
47C. Dispute over motor insurance claim
47D. Qualifications of Chairman, etc.
47E. Resignation and removal
47F. Benches of the Board
47G. Fees for application
47H. Procedure and Powers of the Board
47I. Appeal
47J. Recovery of the claim as decided
47K. Notice to and hearing of insurance companies
47L. Other Jurisdiction of Board
48. Directors of insurers being companies
48A. Restriction on the life insurance agents’ becoming directors of Life Insurance Companies
48B. Restriction on becoming directors of insurers
48BB. Directors of insurers being public subscribers
48BBB. Restriction on appointment of nominated director
48BBBB. Chairman and Vice-Chairman
48C. Appointment of Chief Executives of insurers
48CC.Advisers of insurers
49. Restriction on dividends and bonuses
49A. Distribution of profits on life insurance business among policy-holders
50. Notice of options available to the assured on the lapsing of a policy
50A. Special provision in respect of certain life insurance policies
51. Supply of copies of proposals and medical reports
52. Prohibition of business on dividing principle

MANAGEMENT BY ADMINISTRATOR

52A. When Administrator for management of insurance business may be appointed
52B. Powers and duties of the Administrator
52C. Powers of Administrator respecting property liable to attachment under section 106
52D. Cancellation of contracts and agreements
52E. Termination of appointment of Administrator
52F. Finality of decision of appointing Administrator
52G. Penalty for withholding document or property from Administrator
52H. Protection of action taken under sections 52A to 52D

WINDING UP

53. Winding up by the Court
53A. Unpaid-up share capital
54. Voluntary winding up
55. Valuation of liabilities
56. Application of surplus assets of life insurance fund in liquidation or insolvency
57. Winding up secondary companies
58. Schemes for partial winding up of insurance companies
59. Return of deposits
60. Notice of policy values
61. Power of Court to reduce contracts of insurance

SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

62. Power of Government to impose reciprocal disabilities on non-Bangladesh companies
63. Particulars to be filed by insurers established outside Bangladesh
64. Books to be kept by insurers established outside Bangladesh
PART IIIPROVIDENT SOCIETIES
65. Definition of “provident society”
66. Restrictions on provident societies
67. Name
68. Insurable interest
69. Dividing business
70. Registration
70A. Renewal of registration
70B. Supplementary information and reports of alterations in particulars furnished with application for registration
71. Certain provisions of Part II to apply to provident societies
72. Working capital
73. Deposits
73A. Restriction on name of provident society
74. Rules
75. Amendment of rules
76. Supply of copy of rules
77. Registered office
78. Publication of authorised capital to contain also subscribed and paid-up capital
79. Registers and books
80. Revenue account, balance-sheet and annual statements
81. Actuarial report and abstract
82. Submission of returns to Chief Controller of Insurance
83. Actuarial examination of schemes
84. Separation of accounts and funds
85. Investment of funds
86. Inspection of books
87.Inquiry by or on behalf of Chief Controller of Insurance
87A. Amalgamation and transfer of insurance business
88. Winding up by Court and voluntary winding up
89. Reduction of insurance contracts
90. Appointment of liquidator
90A. Application of Act to liquidators
91. Powers of liquidator
92. Procedure at liquidation
93. Dissolution of provident society
94. Nominations and assignments

PART IVMUTUAL INSURANCE COMPANIES AND CO-OPERATIVE INSURANCE SOCIETIES

95. Definitions
96. Application of Act to Mutual Insurance Companies and Co-operative [* * *]Life Insurance Societies
97. Working capital of Mutual Insurance Companies and Co-operative Insurance Societies
98. Deposits to be made by Mutual Insurance Companies and Co-operative Insurance Societies
98A. Prohibitions of loans
99. Transferees and assignees of policies not to become members
100.Publication of notices and documents of Mutual Insurance Companies and Co-operative [* * *] Insurance Societies
101. Supply of documents to members

PART VMISCELLANEOUS

102. Penalty for default in complying with, or act in contravention of this Act
103. Penalty for transacting insurance business in contravention of sections 3, 7 and 9
104. Penalty for false statement in document
105. Wrongfully obtaining or withholding property
106. Power of Court to order restoration of property of insurer or compensation in certain cases
106A. Notice to and hearing of Chief Controller of Insurance
107. Previous sanction of Attorney General for institution of proceedings
108. Power of Court to grant relief
109. Cognizance of offences
110. Appeals
110A. Delegation of powers and duties of Chief Controller of Insurance
110B. Signature of documents
110C. Powers to call for information
111. Service of notices
112. Declaration of interim bonuses
113. Acquisition of surrender values policy
114. Power of Government to make rules
114A. Power to amend Schedules
114B. Powers of the Chief Controller
115. Alteration of forms
116. [Omitted.]
116A. Summary returns to be published
117. Saving of provisions of Companies Act, 1913
118. Exemptions
119. Inspection and supply of copies of published prospectus, etc.
120. Determination of market value of securities deposited under this Act
120A. Advisory Board
120AA. Publicity Board
120B. [Omitted.]
121-123 [Omitted.]

Homeland Life Insurance Company Limited

Area Office: AddressAddress

Dhaka Area Head Office
Comilla Area Ellal Cember(2nd Floor)
Sylhet Area 11, Motijheel C/A, Dhaka-1000
Chittagong Area Phone: PABX-7168783
Feni Area Fax-880-02-9559223
Bogra Area E-mail: info@homelandlife.com
Barisal Area Website: www.homelandlife.com
Khulna Area

Policy

Homeland Life Insurance Company’s policy of developing local talent to resource its operations has greatly contributed to its success in understanding, meeting and responding quickly to changing customer needs and market conditions. We are primarily staffed with local personnel who are constantly studying the needs of individuals and developing innovative products to the specific requirements of each district of Bangladesh. This long-standing approach is the foundation of our leadership, because we understand local market needs and conditions. Local awareness typifies HOLICO’s previous history and continues to this day.

Homeland Life Insurance Co. Ltd

Homeland life insurance Company limited (HOLICO) was formed in 1996. Today Homeland Life, with its Head Office in Dhaka operates in whole over Bangladesh. Homeland Life Insurance Company Limited offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as insured person and HOLICO that is providing the insurance if you die while the contract is in force, the Homeland Life Insurance Company Limited pay a specified sum of money free of income tax “Cash benefits” to the person or persons you name as beneficiaries or nominees. Our Life Insurance Plans do more that just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death funeral expenses, taxes, probate costs, the need for housekeepers, child care, and so on. And those cash benefits should provide for your families future needs as well, including education for your children and part of all of your spouse’s retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction

Prime Islami Life Insurance Ltd.

Mission

• To abide by Shariah Principles in day-to-day business affairs
• To build dynamic, sound and professional management team.
• To develop innovative products, to add value to our customers.
• To ensure quality management system.
• To ensure best customer service
• To ensure good governance

Vision

1. To maintain utmost integrity responsibility and transparency.
2. To become the best private life insurance company in Bangladesh and in
   South-East Asia as whole.
3. To change beliefs, attitudes, values and practices in the Islamic life
   insurance indus

Prime Islami Life Insurance Ltd

Introduction
Mr. M. A. Khaleque, one of the noble entrepreneurs and Organizer of Bank, Insurance Company and Financial Institutions of the Country, initiated and in association with some prominent sponsors, bankers, retaired Government Secretary founded Prime Islami Life Insurance Limited. Prime Islami Life Insurance Ltd. was initially incorporated in the name of Prime Life Insurance Company Ltd. in July-2000 which was converted into an Islamic Company in the name of Prime Islami Lime Insurance Ltd. in April-2002. In a relatively short span of time, Prime Islami Life Insurance Ltd.(PILIL) has achieved a commendable progress in business, product developments and quality management

Company Profile


Name of The Company : Prime Islami Life Insurance Limited
Authorised Capital : Taka 250 Million
Paid Up Capital : Taka 90 million
Date of Incorporation : 24th July, 2000
Date of Commencement of Business : June, 2001
Date of Conversion into Islami Company : 22nd April, 2002
Credit Rating Grade : 'A'
Date of ISO Certification : 6th October, 2006
Date of Allotement of Public Share : 7th January, 2007
Face Value Per Share : TK. 100.00
Present Market Value Per Share : TK. 1900.00+

American Life Insurance Company

American Life Insurance Company (Alico Bangladesh) started full service branch operations in Bangladesh on 15 January 1974 and has since then been marketing individual and group life insurance products under the Insurance Act 1938, Insurance Rules 1958, and other applicable laws. Alico, incorporated in 1921 in Wilmington, Delaware, USA, is the largest international life insurance Company in the world. It is a member company of the American International Group (AIG) that operates life insurance businesses in more than 135 countries. American Life Insurance Company Bangladesh (referred to as the company hereafter) runs its business through its agency offices scattered mostly in big cities such as dhaka (43), chittagong (9) and khulna (3). Over 2700 career agents are working for the company. The company has a trained and dedicated work force of 223 employees in Bangladesh.

Net premium income received by the company from direct business in 1999 was Tk 1,896.75 million as against Tk 21.12 million in 1981. The figures include both new or first year premiums and renewal premiums derived from its various life insurance plans/schemes such as ordinary life policies, personal accident protection, group life, group medical, and ordinary term insurance. Re-insurance premium paid by the company to its re-insurer abroad was Tk 0.32 million in 1999, when it paid a net amount of commission of Tk 333.94 million. Net claims settled by the company during the year amounted to Tk 75.11 million.

Apart from net premium income derived from direct life insurance business, the company earned Tk 514.81 million in 1999 as interest, dividend, and rent income. Major investments of the company were in short term deposits with banks, national investment bonds, Pratirakkha Sanchaya Patra, shares of companies, ICB-mutual funds, policy loans to holders, fixed deposits and permanent investment in real estate. The assets of the company were valued at Tk 5,900.27 million and the revenue surplus stood at Tk 1,042.29 million in the reference year.
The regional office of the company at Sharjah, Dubai, oversees the administrative and business affairs of Alico Bangladesh. It invests its entire investable surplus locally, mostly in government securities/banks and shares/stocks of companies, thereby allowing usage of its progressively increasing fund in such public interests as infrastructure development, industrialisation and employment generation. [S M Mahfuzur Rahman]

United Insurance Company Limited

United Insurance Company Limited incorporated on 7 May 1985 as a public limited company under the companies act 1994 to carry out all kinds of general insurance business other than life under the Insurance Act 1938 and Rules 1958. The company obtained certificate of commencement of business on 12 October 1985 and was registered with the Department of Insurance on 15 October 1985. It commenced business on 19 October of the same year. The authorised capital of the company at the time of its establishment was Tk 100 million divided into 1 million ordinary shares of Tk 100 each. Its paid up capital is Tk 60 million. Institutional sponsors of the company are Duncan Brothers (Bangladesh) Limited, Octavious Steel and Co. of Bangladesh Ltd., Macalms Bangladesh Trust, Shaw Wallace Bangladesh Limited and National Brokers Limited. The company was enlisted with the Dhaka Stock Exchange Limited on 9 April 1990

The company underwrites risks involved in trade and properties and thus provides their security through insurance and re-insurance services. As per Re-Insurance Treaty, it re-insures risks undertaken with the sadharan bima corporation. Main areas of business of the company include fire insurance, marine cargo and hull insurance, motor insurance and miscellaneous insurance.

In 2000, the total premium incomes of the company amounted to Tk 131.21 million and net premium incomes were Tk 78.03 million. During the year, it paid a net re-insurance premium of Tk 53.18 million to Sadharan Bima Corporation. Net claims paid amounted to Tk 14.6 million. Underwriting profits were about Tk 15.6 million. In addition, the company earned investment and other incomes of Tk 14.81 million. Profit before tax of the company was Tk 26.52 million and the company paid a dividend of 23% to the shareholders in 2000. The company maintains a special reserve fund for exceptional losses and accretion has continuously been made, the cumulative amount of which was Tk 86.34 million in 2000. Investments of the company in government savings instruments, shares of companies, fixed deposits with banks and shares of its wholly owned subsidiary company, Surma Valley Tea Co. Ltd totaled Tk 141.66 million in 2000. That year the value of assets of the company was Tk 304.13 million.

In addition to the head office at Dhaka, the company has two zonal offices, one each at Dhaka and Chittagong, and a total of 13 branches at some selected divisional/district towns. As the company restructured its organisational pattern by closing up non-performing or losing branches, the number of branches of the company reduced from 23 in 1998 to 13 in 2000. The board of directors of the company has 12 members including the chairman. The managing director is the chief executive and he is assisted by a management team of 5 executive officers and some legal advisers and qualified auditors. [S M Mahfuzur Rahman]

Insurance Companies of Bangladesh

Last update : 25-May-2005

Life Insurance Company

: Public Foreign Private

General Insurance Company

: Public Private

Life Insurance Company (Public)
Jiban Bima CorporationJiban Bima Bhaban10, Dilkusha Commercial Area, Dhaka 1000Tel: 9552047-9
Life Insurance Company (Foreign)
American Life Insurance Co.Alico Building18-20, Motijheel C/A, DhakaTel: 9561757, 9561791Email: american.life@alicobd.comWeb site:
Life Insurance Company (Private)

Delta Life Insurance Co. Ltd.Uttara Bank Bhaban90-91 Motijheel C/A, Dhaka 1000Tel: 88-02-9565033-5Fax: 88-02-956-2219 Email: deltanet@citechco.netWeb:
Express Insurance Ltd.WASA Bhaban 78, Kazi Nazrul Islam AvenueKawran Bazar C/A Dhaka.Tel: Email:Web:

Homeland Life Insurance Co. LtdEallal Chamber11, Motijheel C/A, Dhaka 1000Tel: 9666647Email:Web site:
Meghna Life Insurance Co. LtdBiman Bhaban100 Motijheel C/A, Dhaka 1000Tel: 9558993E-mail:Web site:

National Life Insurance Co. Ltd79, Motijheel C/A (1st floor), Dhaka 1000Tel: 9550241E-mail:Web site:
Sandhani Life Insurance Co. LtdTaranga Complex (3dr floor)19, Rajuk Avenue, Motijheel, Dhaka 1000E-mail: Website:

General Insurance Company (Public)
Sadharan Bima CorporationSadharan Bima Sadan33, Dilkusha C/A, DhakaTel: 9566108-9, 9566105-6E-mail: Website:

General Insurance Company (Private)
Agrani Insurance Company Limited.Moon Mansion (6th Floor)12 Dilkusha C/A, Dhaka 1000Tel: E-mail: Website:

Bangladesh Co-operative General Insurance Ltd.Moon Mansion (5th Floor)12 Dilkusha C/A, Dhaka 1000Tel: 9555645E-mail: Website:

Bangladesh General Insurance Co. Ltd.42, Dilkusha C/A, Dhaka 1000Tel: 9555073-74, 9550379, 9563056-8Fax: 88-02-9564212 E-mail: Website:
Bangladesh National Insurance Co. Ltd.Raj Bhaban (8th floor)29, Dilkusha C/A, Dhaka 1000Tel: 9666361-8E-mail: Website:

Central Insurance Co. Ltd.Uttara Bank Bhaban (13th floor)90-91 Motijheel C/A, DhakaTel: 9560251-4E-mail: Website:

City General Insurance Co. LtdBaitul Hossain Building (3dr floor)27, Dilkusha C/A, Dhaka 1000Tel: 9557735E-mail: Website:

Eastern Insurance Co. Ltd44, Dilkusha C/A, Dhaka 1000Tel: 9563033-34E-mail: Website:
Eastland Insurance Co. Ltd13, Dilkusha C/A, Dhaka 1000Tel: 9564600E-mail: Website:
Federal Insurance Co. LtdChamber Building122-124 Motijheel C/A (2nd floor), DhakaTel: 9560003-4E-mail: Website:

Green Delta Insurance Co. LtdHadi Mansion (4th floor)2, Dilkusha C/A, Dhaka 1000Tel: 9560005-6E-mail: Website:

Janata Insurance Co. Ltd125 Motijheel C/A, Dhaka 1000Tel: 9563148-9E-mail: Website:
Karnafully Insurance Co. LtdBiman Bhaban (3rd floor)100 Motijheel C/A, Dhaka 1000Tel: 9564808-9E-mail: Website:

Meghna Insurance Co. LtdBangladsesh Shilpa Bhaban73, Motijheel C/A, Dhaka 1000Tel: 9551360E-mail: Website:

Mercantile Insurance Co. Ltd61, Motijheel C/A, Dhaka 1000Tel: 9557662-4E-mail: Website:
Northern General Insurance Co. LtdRaj Bhaban (7th floor)29, Dilkusha C/A, Dhaka 1000Tel: 9559077-9E-mail: Website:

People's Insurance Co. LtdSena Kalyan Bhaban (3rd floor)195 Motijheel C/A, DhakaTel: 9564166, 9564797-8E-mail: Website:

Phoenix Insurance Co. LtdPurbani Annex Building1A, Dilkusha C/A, Dhaka 1000Tel:9563609E-mail: Website:

Pioneer Insurance Co. LtdJiban Bima Bhaban (6th floor)10, Dilkusha C/A, Dhaka 1000Tel: 9557674-5E-mail: Website:

Prime Insurance Co. Ltd63, Dilkusha C/A, Dhaka 1000Tel: 9562512E-mail: Website:
Progoti General Insurance Co. LtdUttara Bank Bhaban90-91 Motijheel C/A, Dhaka 1000Tel: 9561062-64E-mail: Website:

Provati Insurance Co. LtdKhan Mansion (11th floor)107 Motijheel C/A, Dhaka 1000Tel: 9559561-3E-mail: Website:

Purabi General Insurance Co. Ltd23, Motijheel C/A, Dhaka 1000Tel: 9566006-7E-mail: Website:

Reliance Insurance Co. LtdBSB Building8 Rajuk Avenue, Dhaka 1000Tel:9560105, 9565625-6E-mail: Website:

Rupali Insurance Co. LtdRupali Bima Bhaban (1st floor)7, Rajuk Avenue, Dhaka 1000Tel: 9565625-6, 9567238E-mail: Website:

United Insurance Co. LtdCamellia House22 Kazi Nazrul Islam Avenue, Dhaka 1000Tel: 9661397-8E-mail: info@unitedinsurance.com.bdWebsite: www.unitedinsurance.com.bd