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Report on

Sadharan Bima Corporation

Optimist-2

Section: B

BBA 8th batch

Session: 2012-13

Department of Management Studies

Faculty of Business Studies

Jagannath University

Jun,2014
Report on

Sadharan Bima Corporation

Group Name: Optimist-2

Batch:8th Session:2012-2013

Name Roll No Remarks

Moniruzzaman B120202122

Mahmud Hasan B120202175

Den Islam B120202176

Afsana Afroze B120202177

Tareq Aziz B120202184


Supervisor

Ms. Anannya Chakma

Lecturer

Department of Management Studies

Department of Management Studies

Faculty of Business Studies

Jagannath University

May,2014
Supervisor Forwarding


Ms. Anannya Chakma

Lecturer

Department of Management Studies

Faculty of Business Studies

Jagannath University

Declaration
We do hereby solemnly declare that the work presented in this Report has been
carried out by us and has not been previously submitted to any other
University/College/Organization for an academic qualification/certificate/diploma or
degree.

The work we have presented do not breach any existing copyright and no portion of
this report is copied from any work done earlier for a degree or otherwise.

We further undertake to indemnify the Department against any loss or damage


arising from breach of the foregoing obligations.

..

Md. Noor-E-Alam
Sec: B
ID No: B110202190

Date
Acknowledgement

Our endeavor will come true if the actual purpose of this report becomes fulfilled. At
the very first we would like to express our cordial and deep respect to Ms. Anannya
Chakma, Lecturer of Management Studies, Department of Jagannath University for
her proper guidance, valuable advice, instructions which helped us a lot to complete
this report.

We would also like to express our heartiest gratitude to Mr. A.K. Khan, Agency
Manager of Sadharan Bima Corporation in Bangladesh, for giving us his valuable
time and information what we badly needed. It was impossible to make this report
without his help and co-operation. This report gave us practical knowledge about the
insurance policy activities.

Just reading book cant give a student proper knowledge. Practical knowledge is
needed. And this report give us that chance. We saw the insurance activity so
closely that we came to know many things that we couldnt learn from our book.

In spite of sincere and denoted efforts, there might be some mistakes in the study
report. I take the entire responsibility for such unintended errors and omissions.

..

Md. Noor-E-Alam
Sec: B
ID No: B110202190

Date
Executive Summery

The report on Sadharan Bima Corporation has been prepared required for acquiring
knowledge about insurance company. In a developing country like Bangladesh,
different insurance companies are playing a very crucial role in the economic growth.
Though insurance industry has significant prospects in the economy but for some
reasons it has failed to achieve its goal to some extent. There are 62 insurance
companies in Bangladesh. 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
Table of Contents

SL No Contents Page No

Insurance background of Bangladesh


01

Current insurance market environment in


02
Bangladesh
Profile of Sadharan bima corporation
03

Vision & mission


04

05 Service standards

Products and services


06

Services provided
07

Findings of SBC
08

Recommendations
09

Conclusion
10
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 Peoples 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.

CURRENT INSURANCE MARKET ENVIRONMENT IN BANGLADESH

After the emergence of the Peoples 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 companys
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.

Welcome to Sadharan Bima Corporation

Sadharan Bima Corporation emerged on 14 th May, 1973 under the Insurance


Corporation Act. (Act. No.VI) of 1973 as the single state owned organization to deal
with all classes of General Insurance & Re-insurance business emanating in
Bangladesh. In the pre-liberation days there were as many as 49 privately owned
insurance companies underwriting general insurance business along with one
central Govt. run-organization, namely, Pakistan insurance Corporation. After
liberation the insurance industry was nationalized vide P.O.No. 95 of 1972. By virtue
of nationalization order, 5 Corporations were set up to manage the insurance
industry of which four were subsidiary corporation two each for life and General and
an apex body ,viz., Jatiya Bima corporation as a controlling corporation . This
organizational set up continued till 14 th May, 1973 when the insurance Act. VI. of
1973 was enacted establishing Sadharan Bima Corporation (SBC) to take over the
assets and liabilities of the two subsidiary Corporation, viz, Karnafuly and Teesta
Bima corporation was also dissolved . Thereafter Sadharan Bima corporation was
acting as the sole insurer of general insurance till permission has given to the private
company to operate in the field of insurance

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 Peoples 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 countrys 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%
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 companys
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.

CITIZEN'S CHARTER

VISION

To be a world-class insurance & reinsurance organization in Bangladesh.

MISSION

1. To become the premier organization in Bangladesh for all insurance and


reinsurance needs and to provide quality services at affordable cost.
2. To be the Insurer of the first choice in Bangladesh by offering top class security,
comprehensive, efficient services and professional conduct of business.

Products and services


SBC has provided various policies. Some of them are following:

Fire insurance policy


Marine hull insurance policy
Marine cargo insurance policy
Motor insurance policy
House holders comprehensive insurance policy
Product liability insurance policy
Burglary insurance policy
Contractors all risk policy
Engineering insurance policy
Public liability insurance policy
Aviation insurance policy
Workmens compensation policy
Cash in safe insurance policy
Cash in transit insurance policy
Cash on counter insurance policy
Personal accident insurance policy
Peoples personal accident insurance policy
Dread disease insurance policy
Overseas medi-claim (employment & study) insurance
Export credit guarantee insurance
Livestock insurance policy
All risks insurance policy
Fidelity guarantee policy

STANDARD FIRE INSURANCE POLICY

Fire Insurance: All policies issued under the heading of Fire Insurance. It primarily
aims at providing protection against financial losses arising out of the operation of
fire or certain other specified perils. The subject matter of insurance is usually:

Building
Plant & Machinery
furniture, Fixture and fittings
Goods and Merchandise.
Stocks of all kinds
Direct risks covered under standard fire insurance policy: Accidental fire, lightning &
Explosion (Boilers or gas used for domestic purposes only). The perils covered by
the policy in its normal terms are:-

a) Fire: Whether resulting from explosion or otherwise.

b) Lightning: Whether fire results or not.

c) Explosion: Boiler used or gas used for domestic purpose only.

In addition to the above, this Policy also generally covers the following forms of
damage:-

1. Damage during or immediately following a fire caused by-

a) Smoke

b) Scorching

c) Falling walls and the like-

2. Damage caused by a fire brigade or other competent authority in is charge of their


duty including:-

a) Damage caused by water or other extinguishing agents employed.

b) Damage caused by the blowing up of buildings to prevent the spread of a


configuration.

3. Damage to property while being removed from a building or immediately after its
removal from burning building caused by exposure to weather, provided the removal
was justified.

Additional risks covered on payment of additional premium:

a) Riot and strike damage (RSD)

b) Explosion damage (including commercial purpose)

c) Malicious damage.

d) Earthquake

e) Spontaneous combustion.

f) Cyclone

g) Flood.

h) Busting or overflowing of tanks, pipes etc.


i) Subsidence

j) Land slide,

k) Articles dropping from aircraft

l) Subterranean fire

m) Sprinkler leakage

Consequential loss also an additional risk which is covered by paying additional


premium.

Remarks: The policy does not cover: - War, Undergoing any process or heating,
spontaneous fermentation, Sentiment Value, Radio Active Contamination or Ionizing
radiation.

MARINE INSURANCE POLICY

Marine Hull Insurance: Hull means the insurance of ship. The ship is always at the
risk of the perils of the seas and therefore, the ship owner can insure it against
probable losses as such. The subject matter of hull insurance is usually:-

a. Hull

b. Plant & Machinery

c. Refrigeration Machinery etc.

d. Freight (if the freight is after paid when at the risk of the ship owner)

Direct risk covered under Marine Hull Insurance: Fire, theft, jettison, collision,
contact, heavy weather, Stranding/ foundering, sinking, General average, Sue &
labor charges. The Marine Hull policy may include liability hazards such as collision
or running down.

Additional Risk Covered on payment of additional premium War Strike Riot Civil
Commotion (SRCC)

Remarks: Premium being determined on a rating subject to age and class of


construction of Hull.

Risks covered under following categories :-

a) ITC (All risk Policy)

b) TLO (Total Loss only)

According to the law the insured is required to pay the Stamp duty of this policy.
Marine Cargo Insurance: Cargo meaning the insurance or goods being conveyed.
This refers to goods or merchandise that one being carried from one place to
another or ore being imported or exported. Such goods or merchandise may be lost
damaged or destroyed by perils of the seas whilst in course of transit and therefore,
the owner of such goods can always insure against the possible losses. For the
purpose of Marine Insurance goods/cargo carried by the following three ways:

(a) By ship or steamer or powered vessel

(b) By land conveyance (Truck/ Lorry / Rail)

(c) By Air.

GOODS CARRIED BY SHIP ONLY

Risk covered by ship or steamer or powered vessel against following three


categories :-

Institute Cargo Clause A ( ICC A)

The insurance covered all risks of loss of on damaged to the subject matter insured
except as willful misconduct, ordinary leakage, ordinary loss in weight wear and tear,
loss or damage caused by unsuitability of packing, inherent vice, delay, arising from
insolvency or financial default of the owners of the vessel.

Institute Cargo Clause B ( ICC B)

This insurance covered loss or damage caused by fire or explosion, stranded,


grounded, sunk or capsized, overturning or derailment of land conveyance, collision
or contact of vessel craft, discharge of cargo at a post of distress, earthquake,
volcanic iruption of lightning. This policy also covered general average sacrifice,
jettison or washing overbroad, entry of sealake or river water, total loss of any
package lost overbroad or dropped whilst loading on to or unloading from vessel.
This policy does not cover willful misconduct ordinary leakage ordinary loss is weight
wears and tear loss damage or expense caused arising from insolvency of the owner
of the vessel or unsuitability of packing, inherent vice, delay, un seaworthiness and
un fitness. Additional risks covered on payment of

additional premium TP, ND, Hooks, Holing, bursting, Tearing, leakage loss, RFWD,
Extraneous, Substance, Heating, Breakage and Scratching, Splitting.

Institute Cargo Clause C( ICC C)

This insurance covered loss or damage caused by fire or explosion, stranded,


grounded, sunk or capsized, overturning or derailment of land conveyance, collision
or contact or vessel craft, discharge of cargo at a post of distress, earthquake,
volcanic irruption on lighting. This policy also covered general average sacrifice,
jettison. This policy does not cover willful misconduct ordinary leakage ordinary loss
is weight wears and tear loss damage or expense caused by in sufficiency or
unsuitability of packing, inherent vice, delay, arising from insolvency or financial
default or the owners of the vessel. Additional risks covered on payment of additional
premium: Theft and Pilferage (TP) Non-Delivery (ND).

GOODS CARRIED BY RAIL/LORRY/TRUCK

Goods or cargo covered by above transports may be covered as under

1. By Rail/Lorry/Truck Risk only

2. By Rail/Lorry/Truck All Risks.

GOODS CARRIED BY AIR

Goods or cargoes conveyed by above transport may be covered as under :

1. Air Risk Only

2. Air All Risks

MOTOR INSURANCE POLICY

Motor Insurance: Different types or policies may be issued for different types of
motor vehicles, Motor vehicles are usually classified in the following manner:- Private
Cars, Commercial vehicles, Motor Cycles, Agricultural vehicles, Motor Trade
vehicles. Motor policies issued are usually of the following types irrespective of the
class of vehicles:

a) Comprehensive policy

b) Act liability only policy.

Definition of private vehicle : The Vehicles under private registration & used for
private purposes only. Direct risks covered under private motor comprehensive
insurance policy Fire, explosion, burglary and theft, riot & civil commotion,
earthquake, flood & cyclone, storm, any type of accidental loss and Act liability (Life
& property) Extra benefits which may be included on payment of additional premium

1. Loss of Rugs, Coats and Luggage against fire and theft within a limit of Tk.
1,500 for any one loss

2. Accident to insured and any named passenger between 16-65 years of age
(other than the insured and the paid driver)
3. Accident to unnamed passenger between 16-65 years of age (other than the
insured and the paid driver)

4. Accident to insured and his/her/wife/husband

5. Legal liability under workmens compensation Act. 1923, Fatal Accident Act.
1855 and at common law to persons employed in connection with the operation
or maintenance of the vehicle

6. Legal liability of passengers for act of negligence

7. Electrical or electronic fitting fitted to the vehicle

Definition of commercial vehicle: The vehicle used for hire or reward and which are
not provided for under the scope of private vehicle or motor cycle and registered as
commercial vehicle. Direct risks covered under commercial motor comprehensive
insurance policy Fire, explosion, burglary and theft, riot & civil commotion,
earthquake, flood & cyclone,

storm, any type of accidental loss and Act liability (Life & property) Extra benefits
which may be included on payment of additional premium

1. Electrical & Electronics appliances.

2. Approved Tachometer

3. Legal liability to non-fare paying passengers who are employees of the


insured but not workman as per workmens compensation Act.

4. Legal liability to non-fare paying passenger who are not employees of the
insured.

5. Legal liability to person employed in connection with the operation and


maintenance and/or for loading and unloading of the goods carrying vehicle
excluding drivers.

6. Legal liability to paid driver and /or conductor in connection with the operation
of Buses only.

7. Legal liability under workmens compensation Act. in respect of carrying of


more then 7 (Seven) persons of such employees including driver in a goods
carrying vehicle.

8. Indemnity to Hirers.

In addition in respect of a commercial vehicle which is used for carriage of


passenger for hire or reward and in respect of which legal liability to passenger is
required to be covered in terms of the motor vehicles Act 1991 is subject to
additional premium (Passenger risk coverage is compulsory) of liability to passenger
in accordance with the premium of

the motor tariff.

HOUSE HOLDERS COMPREHENSIVE INSURANCE POLICY

This policy covered the following Risks. The Corporation will indemnify the insured in
respect of loss of or damage to the contents/building whilst contained in the insured
premises by:

a) Fire, Lighting, Explosion of gas in domestic appliance

b) Bursting and overflowing of water tanks, apparatus or pipes.

c) Aircraft or articles dropped therefore.

d) Riot, Strike or Malicious Act.

e) Earthquake Fire and/or Shock, Subsidence and Landslide (including


Rockslide) damage.

f) Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tornado or Cyclone.

g) Impact damage.

This Policy shall not cover: The Corporation shall not be liable in respect of:

a) loss of or damage to articles of consumable nature.

b) loss of or damage to money, securities, stamps, stamp collection, bullion,


livestock, motor vehicles and pedal cycles.

c) loss of or damage to deeds, bonds, bills of exchange, promissory notes, shares


and stock certificates, business books, manuscripts, documents of any kind, unset
precious stones and jewelers and valuables unless specifically declared. No one
article other furniture is deemed to be more than 5% of the sum insured under this
section unless separately specified and value stated.

PRODUCT LIABILITY INSURANCE POLICY

Product liability means liability arising out of the handling or use of the existence of
any condition in or warranty of goods or products manufactured, sold, handled or
distributed by the named insured, other than equipment, rented to or located for use
of others but not sold after the insured has relinquished possession thereof to others
and away from

premises owned, rented or controlled by the insured

Liability arising from operations, if the occurrence occurs after such operations have
been completed or abandoned at the place of occurrence thereof and away from
premises owned, rented or controlled by the Insured, except (a) pick-up and delivery,
(b) the existence of tools: uninstalled equipment and abandoned or unused
materials; performed or because further operations may be required pursuant to a
service or maintenance agreement. Direct risk covered under product liability
Insurance. These types of policies provide cover in respect of the legal liabilities of
the manufacturers, suppliers etc. And losses arising out of any defect in the product,
manufactured, sold or supplied.

Remarks. For details, please contact any of our nearest branch office

ORGANISATION STRUCTURE OF SADHARAN BIMA CORPORATION

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 the
Managing 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 sound
commercial principles and business practices. The present organization structure of
Sadharan Bima Corporation is given below:

1. Managing Director - Chief Executive

2. General Manger

3. Deputy General Manager

4. Asstt. General Manager

5. Manager

6. Deputy Manager

7. Asstt. Manager

8. Junior Officer

9. Office Staff

10. Total strength


SERVICES PROVIDED
Reinsurance service

Sadharan Bima Corporation 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
private insurance companies. SBC also accepts reinsurance business from overseas
market through its intermediaries and as well as directly.

Industrial development through equity participation

SBC plays a vital role in the industrial development 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 huge amount of fixed deposit reserve with various commercial banks in
Bangladesh.

RISK IMPROVEMENT SERVICES

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.

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.

Human resources development for insurance industry

To develop the human resource for the insurance industry in Bangladesh. SBC has
arranged professional training for its officers & staffs both within the country and
abroad. SBC also arranged professional training for the officers of the private
insurance companies operating in Bangladesh.
CORPORATE SOCIAL RESPONSIBILITY
SBC is committed to conduct all its operations in a manner that is protective of the
environment, health and safety of employees, customers and the community. In
fulfillment of this commitment, SBC maintains a continuing effort to adhere to the
following principles:

Develop its employees by encouraging empowerment and rewarding innovation.


Promote an environment for learning and personal growth of its employees by
providing training within the country & abroad. Endeavour to attain a position of
leadership in each category of its business. SBC is committed to insuring its
business to conduct in accordance with high ethical, professional, legal standards
and good corporate governance practices. Aim to achieve business excellence by
understanding, accepting, meeting and exceeding valued clients expectations. SBC
will determine its clients needs and have a commitment to provide high quality
services to meet them.

Endeavour to attain a position of leadership in each category of its business.


SBC is committed to insuring its business to conduct in accordance with high ethical,
professional, legal standards and good corporate governance practices.

Aim to achieve business excellence by understanding, accepting, meeting and


exceeding valued clients expectations. SBC will determine its clients needs and have
a commitment to provide high quality services to meet them.

Findings of SBC
Strong regulatory system
Introduction of Agency System
Percentage of Agency Commission Expenses Decreased.
Lack of guidelines & difference in legal opinion due to time gap
Some notable Restrictions
Delayed Circulars
Lack of some necessary changes
Provision for Re-Insurance
Inefficient Management
Backward Mentality
Slow Industrialization
Political Influence

Recommendations
Recommendations to the Regulatory Authority

The Finance Ministry should focus on the problems regarding it and should
take pragmatic steps to solve those problems as soon as possible.
The total power that has been given to the regulatory authority to deal with the
different opinions over insurance claims should be reconsidered
All the insurance companies in the insurance industry need to be responsive
equally and very actively.
Reduce the percentage of management expenses .
Transparency and accountability should be ensured in each and every step to
ensure the full implementation of the new Insurance Act 2010 in the insurance
sector in Bangladesh.
To establish the act reliable to the stakeholders and to make its
implementation process .
Creating public sense and Development of education system

Recommendations to Sadharan Bima Corporation

Sadharan Bima Corporation should provide extensive training to its


employees especially to the development business & marketing .
The Corporation should raise awareness among all the employees and staffs
about the implementation of the new law to make the implementation process
much smoother.
As one of the most important tasks, client awareness needs to be increased
in the insurance sector in Bangladesh.
The company should consider the rules and regulations for the non-life
insurance companies in Bangladesh under the Insurance Act 2010.
Transparency and accountability should be ensured in each and every step in
the implementation of the new Insurance Act 2010 in the entire departments
of SBC.

CONCLUSION

SBC has met all prudential norms in further its financial strength. Not only that,
Sadharan Bima Corporation has emerged as one of the countrys few largest
taxpayers in the corporate sector. As SBC provides reinsurance business, the
reinsurance act of Bangladesh provides that fifty percent of a companys 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.