Contribution of Insurance Business in national

Development of Bangladesh
Necessity of Insurance
From this study we will learn that how important insurance for a business
is.Authority cannot overlook the entire factor individually. In our country
insurancebusiness faces great problem due to inefficiency of the authority,
lack of properpublicity/ trust, lack of appropriate industry as well. Insurance
institution like PhoenixInsurance Company Ltd has put a great significance in
the financial market as well ascapital market by issuing 1st.
mutual fund. Beside this it increases its investment year to year in financial
market which is a positive sign in the market. This companyprovides different
types of insurance policy from any farm to that industry which helps to
develop the industry, attracts foreign investment, contribute to GDP. It
doessome Corporate Social Responsibility (CSR) as well for the needy people
of thiscountry. It also helps to develop the standard of living. Like this many
otherorganizations fulfill their duties & put their contribution in national
income & thusmake the financial market healthy. Here we used Phoenix
Insurance Company Ltd asa sample of general insurance industry. Like this
company other companies of thisindustry operates their business in
Bangladesh & contribute to the overall business of the country along with
national income
Insurance is a way of protecting against these financial losses.General
insurance or non-life insurance policies, including automobile and
homeownerspolicies, provide payments depending on the loss from a
particular financial event.Anyone who owns an asset can buy insurance to
protect it against losses due to fire or theftand so on. Each one of us can
insure our and our dependents health and well being throughhospitalization
and personal accident policies.In this report we tried to show that how
general insurance business operates in Bangladesh &how important it is for
economy & what types of problem it faces in our country

Bima corporation in 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 businessgained momentum in
this part of what was then known as East Pakistan. There were about
49companies transacting both life and general insurance business. These
companies were operatingunder a free competitive economy.After the
emergence of the Peoples Republic of Bangladesh in 1971, the government,
in order tomake available the fruit of liberation to the general mass,
nationalized the insurance industryalong with the banks in 1972 by
Presidential Order No. 95. By virtue of this order, save andaccept postal life
insurance and foreign life insurance companies (other than the
Pakistanicompanies), all companies and organization transacting all types of
insurance business inBangladesh came under this nationalization order. At
the same time, five insurance corporationswere initially established by the
Government, viz1)Jatiya Bima Corporation (National Insurance Corporation),
2)Teesta Bima Corporation (Teesta Insurance Corporation),
3)Karnaphuli Bima Corporation (Karnaphuli Insurance Corporation),
4)Rupsa Jiban Bima Corporation (Rupsa Life Insurance Corporation),
5)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.
Sadharon Bima Corporation for general insurance deals with any kind of nonlife insurances.Such as: fire insurance, marine insurance, motor insurance,
cyclone insurance, floodinsurance, engineering insurance etc.
On the other hand, Jiban Bima Corporation deals with the insurance of
human life.

Jiban

Bima

Corporation

for

Life

Insurance

in

Bangladesh:
The number of insurance companies that had business in East Pakistan was
75, of which 10 were locally incorporated ones. Following the independence
of Bangladesh in 1971, both life and general insurance business in the
country was nationalised under the Bangladesh Insurance (Nationalisation)
Order 1972 except foreign insurance companies. Five corporations were
established to absorb, own and control the businesses of the 75 existing
insurance companies and these new corporations were Bangladesh Jatiya
Bima Corporation, Karnafuli Bima Corporation, Tista Bima Corporation, Surma
Jiban Bima Corporation and Rupsa Jiban Bima Corporation. These four
corporations were in business from 1 January 1973 to 14 May 1973

Background of jiban bima corporation

Jiban Bima Corporation (JBC) is the state-run life insurance provider in
Bangladesh under the provisions of the Insurance Act 1938, Insurance Rules
1958, and related other laws enforceable in Bangladesh in Bangladesh
Corporation Act 1973. The JBC started its maiden journey on 14 May 1973
with assets and liabilities worth TK. 157 million of defunct 37 life Insurance
companies. Since its inception, JBC is working among the people of
Bangladesh with two basic objectives: firstly, to cover the risks and raise
savings habits among the people and secondly, create funds for the
countrys economic development through innovative life insurance schemes
The Jiban Bima Corporation (JBC) is the lone state-owned life Insurance
company in Bangladesh, which started its maiden journey on May 14,1973
with assets and liabilities worth TK. 15.70 crore (157 million) of defunt 37 life
Insurance companies. Since its inception, JBC is working among the people of
Bangladesh with two basic objectives: firstly, to cover the risks and raise
savings habits among the people and secondly, create funds for the
countrys economic development through innovative life insurance schemes.
Meanwhile, the life fund of Jiban Bima Corporation has shot up to TK.
1498.83 crore (14.99 billion), up to the year 2013, which was only TK. 21.83
crore (218.3 million) in 1973. JBC has paid TK. 1580.9 crore (15.81 billion)
against various claims, the highest such payments in the countrys life
Insurance business. The JBCs investment has reached TK. 1411.28 crore
(14.11 billion) from only TK. 19.7 crore (197 million) in 1973. The JBC has the
largest network all over the country with 7 regional, 9 zonal, 68 sales and
354 branch offices.

Description of policies issued by this jiban bima

insurance Company:

Anticipated Endowment Insurance With Profit Plan

Anticipated Endowment Insurance Without Profit Plan

Child Endowment Insurance Without Profit Plan

Child Protection Policy With Profits Plan

Double Protection Insurance With Profit Plan

Endowment Assurance With Profit Plan

Endowment Assurance Without Profit Plan

Grameen Jiban Bima With Profit Plan

Granted Bonus Endowment Insurance Plan

Group Endowment Assurance

Group Term Insurance

Joint Life Endowment Insurance With Profit Plan

Marriage Endowment Policy Plan

Money Back Term Insurance Policy Plan (Without Profit)

Multiple Payment Policy With Profit Plan

Pension Policy Plan

Progressive Premium Policy With ProfitPlan

Single Premium with Profit Plan

Swanirber Bima (Single Premium Policy) Plan

Term Insurance Without Profit Plan

Whole Life Assurance With Profits Plan

Whole Life Assurance Without Profits Plan

Overseas Assurance Plan With Profit

Mortgrage Protection Policy Without Profit

Monthly Saving Scheme With Profit

Monthly Saving Scheme Without Profit

Triple Protection Policy

Financial contribution of jiban bima corporation in

Bangladesh:

social contribution of jiban bima insurance

company:
Contributions in 20102014

Table: Social insurance contributions, % of salary.