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Date of Submission: 14th
June, 2011.
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Submitted To:
Nafisa RounokLecturer
Department of Finance Jagannath University, Dhaka.
Submitted By:
Md. Mazharul Islam.
Group Representative of Finance Interface B.B.A, 3rd Batch (2 nd Year, 2 nd Semester) Session: 2008-2009 Department of Finance Jagannath University, Dhaka.
Date of Submission: 14th June, 2011.
An Assignment of Risk Management & Insurance
Course Code: FIN -2207
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1
Group Members of Finance Interface
Sl. No. Name Roll No. Marks
01. Md. Mazharul Islam. (Group Representative) 091541
02. Khadizatuz Zohara. 091526
03. Md. Mukhlesur Rahman. 091587
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance i | P a g e
Acknowledgement
First of all we would like to thank the almighty for giving us the strength and the
aptitude to complete this report within due time. We are deeply indebted to our
course teacher Nafisa Rounok for assigning us such an interesting topic named
“General Insurance Business in Bangladesh”. I also express the depth of my
appreciation to my honorable course teacher for his suggestions and guidelines,
which helped me in completing this report. We are also grateful to Mahmud Hossain,
DGM, (MD.S Secretariat, PRD, Estt. & Motor Pool Dept.); Mr. Sudhangshu Kumar
Ghosh, AGM, (Accounts & Investment); Md. Shahinuzzaman, Manager,
(Underwriting Department); Md. Amir Hossain Mia, Deputy Manager,
(Underwriting Department) of Sadharan Bima Corporation.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance ii | P a g e
Executive Summary
Peoples life, livelihood and properties are always risky because any kind of uncertain
event can happen anytime which can cause unexpected losses. The process of
insurance has been evolved to safeguard the interest of people from uncertainty by
providing certainty payment at a given contingency. It provides indemnification
against losses arising from the happening of some uncertain events.
Insurance plays an important role in modern business and commerce. It stimulates
expansion of trade operation to a very great extent for some consideration named
premium and provides opportunity to businessmen to develop sense of independence
and security from anxiety.
The insurance market in Bangladesh now consists of two state owned corporations:
Sadharan Bima Corporation and Jibon Bima Corporation, Forty-three non-life private
insurance companies, sixteen private life insurance companies and one foreign life
insurance company; a total of 62 insurance companies.
Thus the insurance sector in Bangladesh has grown substantially and depended
remarkable with number of companies in both life and non-life segments with the
expansion of size of the insurance market, the value of assets of the industry has also
been increased substantially.
The general insurance includes property insurance, liability insurance and other
forms of insurance. Sadharan Bima Corporation stands as insurer of public sector
assets on its own behalf and also on behalf of private sector general insurance
companies and also playing a role of national reinsurance to the reinsurance industry.
It also contributes to the GDP of our country but it is still in a primary stage. Though
limited but contributes of insurance business in the economic development of the
country are very important. The premiums collected by SBC play a major role in
building up national capital. This sort of capital can increase overall production by
investing in different sectors. Compare to other countries in the subcontinent the
progress of general insurance business is very slow. Various problems, obstacles and
people’s lack of knowledge and concepts regarding insurance are making the
progress of this business slow. Though having many problems on behalf of general
insurance business in Bangladesh, Sadharan Bima Corporation has continued and
also is continuing its business with increasing growth rate which helps the
development of national economy.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance
Letter of Transmittal
10th
May, 2011
Nafisa Rounak
Lecturer
Department of Finance
Jagannath University, Dhaka.
Subject: To submit a report on “General Insurance - SBC”
Dear Sir
This is informing you that we have completed our report on “General Insurance
Business - SBC”. Here we tried our best to give an overview of general
insurance business in Bangladesh, specially Sadharan Bima Corporation and its
income, expenditure, profit, total assets, liabilities, number of policy holders,
management system, human resource management and finally some findings
and suggestions.
In preparing this report we have followed the instruction of yours, we will be
glad to clarify any discrepancy that may arise.
Thank you for your cooperation.
Sincerely,
Md. Mazharul Islam.
On the behalf of the groupFinance Interface
ID No.091541
Department of Finance,
Jagannath University, Dhaka.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 1 | P a g e
Table of Contents
Name Page No.Acknowledgement i
Executive Summary ii
Part - I
1.1 Introduction 21.2 Rationale of the study 21.3 Objective of the report 2-31.4 Scope of the study 31.5 Methodology of the study 3-41.6 Limitation of the study 4
Part - II
2.1 Insurance Background of Bangladesh 52.2 Profile of Sadharan Bima Corporation 6-72.3 Vision, Mission, Goal and Objectives 8
2.4 Branch Network 92.5 Organization Structure of SBC 9-102.6 Product and services 112.7 Services Provided by SBC 12-13
2.7.1 Reinsurance Service 122.7.2 Risk Improvement Services 12
2.8 Revenue 132.9 Relationship between Revenue, Expense and Claims 15
Part -III
3.1 Findings and Conclusion 18-19
3.1.1 Impact on our economy 183.1.2 Suggestions 19
Bibliography 20
Graph andTable
Table
T.1 Investment Revenue 13T.2 Revenue, Expense and Claims 15
Graph
G.1 Branch Network 9G.2 Organizational Structure of SBC 10G.3 Insurance Revenue 14G.4 Total Revenue 14G.5 Relationship between Revenue and Expense 16G.6 Net Claim 16G.7 Profit 17G.8 Investment Income 17
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 3 | P a g e
To earn practical knowledge about when the risk management and distribution
system.
To know the conditions under when claims are considered and the process of
meeting claim.
To know about their revenue, expenditure, profit, business policy, social work
etc.
To observe their development year by year.
To earn knowledge about reinsurance business.
To know how they respond to different parties.
To know the importance and necessity of insurance in different sector.
1.4 Scope
There were huge scopes to work in the arena of the report. Considering the deadline,
the exposure and scope of the paper has been wide-ranging. The study, “General
Insurance in Bangladesh” has covered overall insurance business and conditions of
Bangladesh and its impact on our economy has been showed in this report. By preparing this report, it becomes more understandable about the real condition of
insurance business and the importance of general insurance for minimizing different
risk involved in business.
1.5 Methodology
We have prepared this report by analyzing the information which we have attainedfrom several visits to Sadharan Bima Corporation (SBC). We have taken interview of
almost 10 high officials of SBC. We have also read the annual report of SBC of last 5
years. By combining the knowledge of our textbook and knowledge from our visits,
we have prepared our report. We have tried to present our gathered knowledge in this
report systemically. Here we show Statistical Presentation of Income and
Expenditure of Sadharan Bima Corporation and Analysis of Income and Expenditure
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 4 | P a g e
Sources of data:
Here primary and secondary both types of information were used. The primaryinformation we collected from different officers of SBC. The secondary sources are,
Last 5 years annual report of SBC. Website.
Interview of high officials of SBC.
Text Books.
1.6 Limitations
While conducting the report on “General Insurance Business in Bangladesh”, some
limitations were yet present there:
Because of time shortage many related area cannot be focused in depth.
Recent data and information on different activities was unavailable.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 5 | P a g e
Part - II
Sadharan Bima Corporation
2.1 Insurance Background of Bangladesh
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. By virtue of this order, save and accept postal life insurance and
foreign life insurance companies (other than the Pakistani companies), all companies
and organization transacting all types of insurance business in Bangladesh came
under this nationalization order. 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.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 6 | P a g e
2.2 Profile of Sadharan Bima Corporation
Sadharan Bima Corporation is only state-owned General Insurance Corporation
operating under the direct control and supervision of the Ministry of Finance,
Government of the People‟s Republic of Bangladesh. It emerged on 14th May, 1973
under the Insurance Corporation Act (Act No. VI) of 1973 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. In the
year 1984 Bangladesh Government allowed insurance Companies in the private
sector and to that effect promulgated the insurance Corporations (Amendment)
Ordinance 1984.
Sadharan Bima Corporation has a very strong financial base. It has a market share of
over 20 % of the total premium income of the insurance market of Bangladesh. SBC,
the largest insurance enterprise in the country, has a net worth of Tk.605 crore an
authorized capital of Tk.20 crore, paid up capital of Tk. 10 crore and the anticipated
revenue during the current financial year is approximately Tk. 417 crore.
Following characteristics of SBC proves its financial soundness :- Government
owned enterprise - Financial Soundness due to huge assets owned by SBC - Only re-
insurer in Bangladesh - Wide net-work of offices - Public trust - Huge trained &
skilled manpower - Large investable fund - Huge Real Estate Assets in Dhaka,
Chittagong, Khulna, Rajshahi, Bogra & Sylhet. SBC TOWER – the only multistoried
car parking building in the heart of the capital city of Bangladesh
SBC is the sponsor shareholder of Investment Corporation of Bangladesh, Industrial
Development and Leasing Company, National Tea Company Limited, National
Housing Finance and Investment Ltd, Aramit Ltd, Central Depository BD Ltd.etc.
SBC has met all prudential norms in further its financial strength. Not only that,
Sadharan Bima Corporation has emerged as one of the country‟s few largest
taxpayers in the corporate sector.
SBC is entitled to 50% of public sector business in Bangladesh. 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%
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 7 | P a g e
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 SBC and remaining fifty percent may
be reinsured either with this Corporation or with any insurer in Bangladesh or
abroad.
The main pillar of the SBC is insurance as well as reinsurance business. SBC is the
largest non-life insurance underwriter in Bangladesh in terms of gross premium,
network of offices & trained manpower. On the other hand, SBC reinsures the risks
of private insurance companies operating in Bangladesh.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 8 | P a g e
2.3 Vision, Missions, Goals and Objectives
Vision
To be world class insurance & reinsurance organization.
Missions
To be the premier organization in Bangladesh for all insurance and reinsurance
business and to provide quality service at affordable cost.
To be the Insurer of the first choice in Bangladesh by offering top class
security, comprehensive, efficient services and professional conduct of
business.
Maintain SBC‟s leading position in the insurance market of Bangladesh.
To become an insurance organization/Company of international standard by
attaining the highest confidence and trust of all concerned from home &
abroad through improved services, dedication, customer care and efficiency.
To place innovation, technology and knowledge at the heart of the
organization‟s growth.
Goals
Venture into other areas Bangladesh and abroad on the strength of SBC‟s crore
competency.
Enter into and expand new insurance product and services to meet the
changing needs of the clients.
Fulfillment of SBC‟s social commitments towards the public as a state owned
enterprise.
Objectives
To achieve business targets.
To increase share of private sector business through marketing efforts.
To build, maintain and improve the commercial image of the organization and
gain recognition as a competent and professional insurer as well as re-insurer.
To overhaul and simplify administration system & procedure.
To attain full computerization and to utilize IT to its full potential.
To enhance the skills and flexibility of the employees through continuous
training. To ensure better return from SBC‟s investment.
To improve maintenance of existing real estate and expansion of it.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 9 | P a g e
Sadharan BimaCorporation
Zonal Offices
Dhaka
Chittagong
Rajshahi
Khulna
Narayangonj
Comilla
Regional Offices
Sylhet
Mymenshingh
2.4 Branch Network
In order to give efficient service to the insuring community, the management setup 6
Zonal offices at Dhaka, Chittagong, Rajshahi, Khulna, Narayangonj, and Comilla,
and 2 Regional offices at Sylhet and Mymensingh. Corporation also set-up offices in
various places, especially in the Muffassol Area. Sadharan Bima Corporation has
now 110 offices throughout the country. These offices are smoothly running with
near about 1500 Officers and Employees.
G.1: Branch Network
2.5 Organization Structure of SBC
Under the statute, Sadharan Bima Corporation is run by a Board of Directors
consisting of 7 members. The chairman and the directors of the Board including theManaging Directors are appointed by the Government. The Managing Director,
being the chief executive, conducts and manages the affairs and business of the
corporation in accordance with the provisions of the Act, regulations, Government
instructions and the resolutions of the Board. He is also guided by the soundcommercial principles and business practices.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 10 | P a g e
The present organization structure of Sadharan Bima Corporation is given below:
G.2: Organizational Structure of SBC
Major Structure of SBC is given below-
1. Managing Director - Chief Executive
2. General Manger
3. Deputy General Manager
4. Assistant General Manager
5. Manager
6. Deputy Manager
7. Assistant. Manager
8. Junior Officer
9. Office Staff
10. Total strength
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 11 | P a g e
2.6 Product and Services:
SBC accepts different policies that are noted below-
1. Fire Insurance Policy.
2. Marine Hull Insurance Policy.
3. Marine Cargo Insurance Policy.
4. Motor Insurance Policy.
5. House Holder‟s Comprehensive Insurance Policy.
6. Product Liability Insurance Policy.
7. Burglary insurance Policy.
8. Contractors All Risk Policy.
9. Engineering Insurance Policy.
10. Public Liability Insurance Policy.
11. Aviation Insurance Policy.
12. Workmen‟s Compensation Policy.
13. Cash In Safe Insurance Policy.
14. Cash In Transit Insurance Policy.
15. Cash In Counter Insurance Policy.
16. Personal accident Insurance policy.
17. Peoples Personal Insurance Policy.
18. Dread Disease Insurance Policy.
19. Overseas Medi-Clam (Business and Holiday).
20. Overseas Medi-Clam (Employment and Student).
21. Export Credit Guarantee Insurance.
22. Livestock Insurance Policy.
23. All Risk Insurance Policies.
24. Fidelity Guarantee Policy.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 12 | P a g e
2.7 Services Provided by Sadharan Bima Corporation
2.7.1 Reinsurance Service
After establishment of private Insurance Companies in the year 1985 in Bangladesh,
Government authorized SBC to accept 100% reinsurance of private insurancecompanies. SBC in its role as a re-insurer has lent support to the private insurance
companies in Bangladesh in a big way. In view of the huge net-worth and retention
capacity, SBC has accepted both treaty and facultative businesses from the privateinsurance companies.
In respect of reinsurance, the Insurance Corporation (Amendment) Act 1990 provides
that fifty percent of a company‟s reinsurance business must be placed with the SBC
and remaining fifty percent may be reinsured either with SBC or with any other
insurer in Bangladesh or abroad. SBC is doing direct insurance as well as privateinsurance company‟s reinsurance.
SBC is the largest General Insurance Corporation in Bangladesh doing direct
Business to the tune of BDT 886 million in the year 2005. During the same period itsreinsurance premium income was BDT 2627 million.
SBC is a shareholder of Asian Reinsurance Corporation. SBC‟s major portfoliocomprises of fire, marine cargo, aviation and engineering business.
SBC also accepts reinsurance business from overseas market through itsintermediaries and as well as directly.
The sound financial backing and rich experience earned over the years in the field of
insurance, reinsurance and financial services (which includes investment, risk
improvement services etc), brings SBC in an ideal position of a professionalreinsurer in Bangladesh.
At the present growing economy in Bangladesh the premium income of SBC is also
increasing day by day.
2.7.2 Risk Improvement Services
As the only state owned General insurance and re-insurance enterprise in Bangladesh
Sadharan Bima Corporation has extended its support to the insurance market in
Bangladesh in a extended way. Sadharan Bima Corporation would always endeavor
to deliver the best customer services for the fulfillment of insurance, reinsurance and
risk management needs and problems to the insurance market in Bangladesh.
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 13 | P a g e
On the order hand, Sadharan Bima Corporation provides risk improvement services
to its valued clients through:
a) Pre-underwriting inspection services.
b) SBC has the opportunity to take the necessary help and advice from the foreign
reinsurer regarding risk improvement techniques.
c) SBC regularly enlists professional and expert surveyors to asses risk and loss
before and after loss. It may be mentioned that license for the survey firms are issued
by the office of the Chief Controller of Insurance, Government of the Peoples‟
Republic of Bangladesh.
2.8 Revenue
In according to the accounts record of Sadharan Bima Corporation (SBC), we have
learnt SBC earns revenue from three types of insurance – Fire Insurance, Marine
Insurance and Miscellaneous insurance. In each type of insurance revenue is earned
from Gross premium, Reinsurance premium and other income which is shown inabove chart and graph.
T.1 Investment Revenue
Types of Insurance2005
(in crore)2006
(in crore)2007
(in crore)2008
(in crore)2009
(in crore)
Fire Insurance
Gross Premium 12.33 14.54 17.72 14.98 22.16
Reinsurance Premium 151.13 157.97 181.37 192.30 212.44
Other Income 6.63 4.53 3.66 3.84 4.68
Marine Insurance
Gross Premium 34.42 36.02 40.99 54.47 66.08
Reinsurance Premium 58.87 64.95 67.43 78.61 79.10
Other Income 5.09 5.70 5.34 9.81 5.41
Miscellaneous Insurance
Gross Premium 41.86 53.89 67.87 72.45 73.11
Reinsurance Premium 57.66 68.48 80.36 88.53 87.73
Other Income 5.36 5.34 16.61 6.12 7.29
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 14 | P a g e
400.52441.14
519.47
582.37 602.33
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009
Total Revenue(in crore)
Total Revenue Linear (Total Revenue)
170.09 177.04202.75
211.12
239.28
98.38 106.67 113.76
142.89 150.59
104.88
127.71
164.84 167.1 168.13
0
50
100
150
200
250
300
2005 2006 2007 2008 2009
Insurance Revenue(in crore)
Fire Insurance Marine Insurance Miscellaneous Insurance
G.3 Insurance Revenue
From the records of SBC, In 2005, it earned revenue BDT 170.09 crore from Fire
insurance, BDT 98.38 crore from Marine insurance and BDT 104.88 crore from
Miscellaneous insurance. By increasing each year, in 2009 SBC has earned BDT
239.28 crore from Fire insurance, BDT 150.59 crore from Marine insurance and
BDT 168.13 crore from Miscellaneous insurance.
Total Revenue
G.4 Total Revenue
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General Insurance Business in Bangladesh - SBC
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From the graph of total revenue we can learn the total revenue of SBC in 2005 was
BDT400.52 crore. SBC earned BDT 441.14 crore in 2006, BDT 519.47 crore in
2007, BDT 582.37 crore in 2008. In 2009, by increasing the revenue became 602.33
crores. From the graph we can see a liner trend of incensement of total revenue. In
five years period revenue has increased about 50%. It reflects that SBC is running
well by contributing vastly in insurance market of Bangladesh.
2.9 Revenue, Expense and Claims
We can see an overall financial view of Sadharan Bima Corporation at a glance. By
the passing of years SBC‟s revenue has increased gradually and reached at BDT
602.33 crore. At the same time it‟s expense has also been increased. But the increasein profit figure (BDT 101.50 crore) is quite satisfactory. SBC is generating it‟s
investment income at a slow pace.
2004(in crore)
2005(in crore)
2006(in crore)
2007(in crore)
2008(in crore)
2009(in crore)
Total Revenue 400.52 441.14 519.47 582.37 602.33
Total Expense 364.14 399.1 458.86 484.21 500.83
Profit 36.38 42.04 60.61 77.37 101.50
Net claim 86.29 102.54 133.19 134.03 132.22
Investment Income 26.64 27.17 29.72 38.12 40.47 44.33T.2 Revenue, Expense and Claims
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 16 | P a g e
86.29
102.54
133.19 134.03 132.22
0
20
4060
80
100
120
140
160
2005 2006 2007 2008 2009
Net Claim(in crore)
Net Claim
364.14399.1
458.86
484.21 500.83400.52
441.14
519.47
582.37 602.33
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009
Relation Between Revenue and Expense
Total Expense Total Revenue
G.5 Relationship between Revenue and Expense
In 2005, the total expenditure of Sadharan Bima Corporation was TK364.14crore. In
2006, it was TK399.1 crore. It had been increased at TK34.96 crore. In 2007, the
total expenditure was TK458.86 crore and it had been increased at TK59.76 crore.
The total expenditure was high in 2007 than that of 2006. The total expenditure in
2008 was TK484.21 and in 2009 TK500.83 crore. The amount of increased in 2008
was TK25.35 crore and 2009 was TK16.62 crore. Though every year the total
expenditure has been increased, the total revenue has also been increased. So the
amount of profit has been increased.
G.6 Net Claim
From the graph we can see in 2005 net claim was 86.29 crore and it increased next
two years and reached in figure 133.19 crore in 2007. Graph line shows from 2007 to
2009 net claim rate was steady. At last 2009 figure was BDT 132.22 crore.
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36.3842.04
60.61
77.37
101.5
0
20
40
60
80
100
120
2005 2006 2007 2008 2009
Profit(in crore)
Profit
26.64 27.1729.72
38.1240.47
44.33
0
10
20
30
40
50
2004 2005 2006 2007 2008 2009
Investment Income (in crore)
Investment Income Linear (Investment Income)
Profit
G.7 Profit
From this graph we can see in 2005 the profit was BDT 36.38 crore and in 2009 that
was BDT 101.5 crore. The graph line shows us from 2006 to 2009 profit increased
very sharply which was quite satisfactory.
Investment Income
G.8 Investment Income
Above bar chart shows us a clear view of investment income of SBC. From 2004 to
2009 investment income of SBC has increased but in a moderate rate. In the year of
2007 and 2008 investment income increased at a good rate. SBC should take steps to
increase its investment income.
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Part-III
3.1 Findings and Conclusion
The intension of the study is to examine the role of Sadharan Bima Corporationgeneral insurance business in Bangladesh.
The major findings of the overall study are discussed below:
Sadharan Bima Corporation is controlled by the Ministry of Finance and it I is
a government institution.
Sadharan Bima Corporation collects premium from the people, in return, it
assures to minimize their risk involved in business. It collects premium from
people by maintaining the rules and principles. Sadharan Bima Corporation has 8 zones with 84 branches and the number of
employees is 959 for giving more services to the policy holders.
It has 110000 policy holders, certificate holders and endorsement holders. It
involves fire policy, marine policy motor car policy, vehicle policy etc.
From 2005 to 2009 its revenue and profit is increasing. Its net claim and
investment income is also rising.
Impact on our economy
Sadharan Bima Corporation contributes to develop economic condition of
Bangladesh. As a result,
Creating more savings
Makes capital formation,
Develops trade and commerce
Creates more employment
Social security
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General Insurance Business in Bangladesh - SBC
Jagannath University Department of Finance 19 | P a g e
Suggestions
Sadharan Bima Corporation can provide to policy holders developed services by the
following processes:
It can appoint more employees because the authorized number of employees
is 2623.
For modern services it should use computerized systems in every department.
This organization can create more policy holders by publicity and
advertisement.
It can make its laws and principles easier for the policy holders.
Finally we can say that, Sadharan Bima Corporation helps the insurances to
minimize their different business risk. After all, in modern insurance system,
Sadharan Bima Corporation, by increasing the number of policy holders, is not only
reducing financial risk of policy holders, but also by reducing their risk, it is earning
more profit. Insurance is a recent idea for Bangladesh and we have many problems
in our economy like lack of capital, unfavorable commercial position, lack of savings
etc. So Sadharan Bima Corporation should create more publicity among the
insurances, give training facilities to the employees, and more efficient managementsystem. If government also gives more attention to Sadharan Bima Corporation, then
it will contribute to our economy.
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General Insurance Business in Bangladesh - SBC
Bibliography:
Book and Notes:
‘ Insurance Hand note’ by Nafisa Rounok, Lecturer, Department of
Finance, Jagannath University, Dhaka. ‘ Elements of insurance’ by Azizul Huq Chaudhuri.
‘ Higher Banking & Insurance’ by Khalekuzzaman.
Website:
http://www.sbc.gov.bd
http://www.bankersbd.com/bangladesh-insurance-company.html
Other:
‘Annual Report’ (2004 to 2009), Sadharan Bima Corporation.