Introduction:

In law and economics, insurance is a form of risk management primarily used to hedge
against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer
of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a
company selling the insurance; an insured or policyholder is the person or entity buying
the insurance policy. 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.

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

History of insurance refers to the development of a modern laws and market in

insurance against risks. In some sense we can say that insurance appears simultaneously
with the appearance of human society. We know of two types of economies in human
societies: money economies (with markets, money, financial instruments and so on) and
non-money or natural economies (without money, markets, financial instruments and so
on). The second type is a more ancient form than the first. In such an economy and
community, we can see insurance in the form of people helping each other. For example, if
a house burns down, the members of the community help build a new one. Should the same
thing happen to one's neighbour, the other neighbors must help Otherwise; neighbours will
not receive help in the future.

Toward the end of the seventeenth century, London's growing importance as a centre
for trade increased demand for marine insurance. In the late 1680s, Mr. Edward Lloyd
opened a coffee house that became a popular haunt of ship owners, merchants, and ships
captains, and thereby a reliable source of the latest shipping news. It became the meeting
place for parties wishing to insure cargoes and ships, and those willing to underwrite such
ventures. Today, Lloyd's of London remains the leading market (note that it is not an
insurance company) for marine and other specialist types of insurance, but it works rather
differently than the more familiar kinds of insurance.

Insurance as we know it today can be traced to the Great Fire of London, which in
1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an
office to insure buildings. In 1680, he established England's first fire insurance company,
"The Fire Office," to insure brick and frame homes.
 Insurance in Bangladesh:

Insurance is not a new business in Bangladesh. Almost a century back, during British rule
in India, some insurance companies started transacting business, both life and general, in
Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49
insurance companies transacted both life and general insurance schemes. These companies
were of various origins British, Australian, Indian, West Pakistani and local. Ten insurance
companies had their head offices in East Pakistan, 27 in West Pakistan, and the rest
elsewhere in the world. These were mostly limited liability companies.

The government of Bangladesh nationalized insurance industry in 1972 by the

Bangladesh Insurance (Nationalization) Order 1972. By virtue of this order, save and except
postal life insurance and foreign life insurance companies, all 49 insurance companies and
organizations transacting insurance business in the country were placed in the public sector
under five corporations. These corporations were: the Jatiya Bima Corporation, Tista Bima
Corporation, Karnafuli Bima Corporation, Rupsa Jiban Bima Corporation, and Surma Jiban
Bima Corporation. The Jatiya Bima Corporation was an apex corporation only to supervise
and control the activities of the other insurance corporations, which were responsible for
underwriting. Tista and Karnafuli Bima Corporations were for general insurance and Rupsa
and Surma for life insurance. The specialist life companies or the life portion of a composite
company joined the Rupsa and Surma corporations while specialist general insurance
companies or the general portion of a composite company joined the Tista and Karnafuli
corporations.

After independence of Bangladesh, insurance industry was nationalized. Subsequently

through the enactment of Insurance Corporation Act VI, 1973, two corporations namely
Sadharan Bima Corporation (SBC) for general insurance and, Jiban Bima Corporation for
life insurance were established in Bangladesh. SBC was acting as the sole insurer of general
insurance till 1984. Between 1985 to 1988 first generation of private general insurance
companies were emerged as Bangladesh Government allowed the private sector to conduct
business in all areas of insurance for the first time in 1984. A total of 16 private general
insurance companies were registered in that phase. In 1996 another 8 private general
insurance companies were registered. The third generation of private general insurance
companies, which included 18 companies, came into operation between 1999 and 2001. The
general insurance market in Bangladesh now consists of 43 private sector insurance
companies and 1 state owned insurance company. Insurance Corporation (amendment) Act
1990 provides that 50% 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 50% 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.
 Insurance Companies in Bangladesh

Insurance Acts in Bangladesh

The Insurance Act 1938
The Insurance Rules 1958
The Insurance (Amendment) Ordinance 1984
Insurance Regulations 1990
Insurance Ordinance 2008
Insurance Act 2010
Insurance Development and Regulatory Authority Act 2010
Asian Reinsurance Corporation Act 2013

Regulatory Control of Insurance in Bangladesh

Just after Liberation of Bangladesh in 1971, Sadharan Bima Corporation (SBC) and
Jiban Bima Corporation (JBC) have been established under the Insurance
Corporation Act 1973 as the state owned organizations to deal with non-life and life
Insurances respectively.
SBC and JBC are the state owned reinsurance service provider.
And thereafter the permission was given to Private Insurance Companies to operate
in accordance with the provisions of the Insurance (Amendment) Ordinance, 1984.
Additionally the supervision of the Insurance Sector has been shifted to the Ministry
of Finance from the Ministry of Commerce by an executive order of Bangladesh
Government.
 On March 03, 2010 the Parliament have passed two insurance laws in a bid to
further strengthen the regulatory framework for the insurance industry and make the
industry operationally vibrant.
The new laws, came into effect on 18 March 2010, are Insurance Act 2010 and
Insurance Development Regulatory Authority Act 2010.
So far 08 Regulations have been formed in support of Insurance Act 2010.
In 2013, the Asian Reinsurance Corporation Act has been implemented in
connection with Insurance Corporation Act 1973 in order to set up the state-owned
insurance institutions.
Labor Act 2006 and 2016 guides the workers compensation insurance in
Bangladesh.
 What is Insurance:
Insurance is a contract between two parties whereby one party agrees to undertake the risk
of another in exchange for consideration known as premium and promises to pay a fixed
sum of money to the other party on happening of an uncertain event (death) or after the
expiry of a certain period in case of life insurance or to indemnify the other party on
happening of an uncertain event in case of general insurance.
The party bearing the risk is known as the 'insurer' or 'assurer' and the party whose risk is
covered is known as the 'insured' or 'assured'..

Concept of Insurance / How Insurance Works

The concept behind insurance is that a group of people exposed to similar risk come
together and make contributions towards formation of a pool of funds. In case a person
actually suffers a loss on account of such risk, he is compensated out of the same pool of
funds. Contribution to the pool is made by a group of people sharing common risks and
collected by the insurance companies in the form of premiums.
About Guardian Life Insurance

Guardian Life
Insurance Limited
started its business
activities from 1st
January 2014 and has
already achieved
good reputation in the
Insurance Industry
and is looking to
grow further in the
coming years. The
paid up capital of the
company is 18.20
Crore and authorized capital is set at 200 Crore. Guardian Life Insurance Limited is striving
to ensure trust in the hearts of our stakeholders through good governance. Guardian Life
Insurance Limited has started its journey with the promise of helping build a better and
more secured future for our valuable customers by providing them with world class
insurance products and excellent customer service

Product:
Individual insurance
Group insurance

Address detail

Address Guardian Life Insurance Limited, Head Office: Siddique Tower (10th & 1
11th Floor), 49 Mohakhali C/A
Dhaka-1212, Bangladesh.

Telephone 88-02-9888422-4

Fax 88-02-9888399

Web www.guardianlife.com.bd

E-mail info@guardianlife.com.bd
 1. Individual insurance

Plan 1: Ordinary endowment insurance plan (with profit)

Features:

This is the most popular and most widely accepted plan. The policyholder will receive full
sum assured together with accrued bonuses on maturity or in case of death. The duration of
this plan tends to be 10, 15, 20, 25, 30, 35 years and the maximum age limit is 70 years.

Benefits:

The policyholder, receiving the full sum assured together with accrued bonuses on
maturity at the end of the term or in case of death,
The policyholder will attain Surrender Value if the policy is enforced for two years.
A policyholder can receive income tax rebate over the premium paid and the money
received from the claim of insurance is also income tax free.

Terms and conditions:

The term of the maturity has to be minimum 10 years.

The minimum age of a policyholder has to be 18/20 years and the maximum age is
55 years.
There are no premium rebates available for a large sum policy
Premiums are taken yearly, but premiums can also be given in a quarterly and half
yearly basis.

Plan 2: Ordinary Endowment Insurance Plan.

Features:

This sort of policy is effective to ensure economic freedom in retirement period and
to provide capital for business investment.
This plan is also applicable for those policyholders who aspire to save for a longer
period of time.
 The duration of the term is generally 10, 15, 20, 25, 30 and 35 years and maximum
age limit to receive endowment is 70 years.

Terms and conditions:

The minimum age of a policyholder has to be 18/20 years and the maximum age is
55 years.
There are no rebates available on the rates listed in this plan.
There are no premium rebates available for a large sum policy.

Plan 3: Anticipated Endowment (3 stage payment) Insurance plan (with

profit)

The cost of living is increasing exponentially, and therefore, there is no alternative to

savings. In order to inculcate this habit of savings in the minds of people of every social
class, Guardian life Insurance Limited has launched the money builder plan/ the 3 stage
anticipated endowment plan.

The policyholder receives the full sum assured in three installments.

The installment sum within the duration of the term could be used for profitable
ventures as well as to implement plans for education, marriage and other necessities
of children of the policyholders
If a policyholder dies within the duration of the term after receiving one or two
installment claims, the full sum assured and accrued bonuses is provided to his/her
nominee(s). The terms of this plan are 12, 15, 18, 21 and 24 years and the maximum
age limit to receive claims is years.

Plan 4: Anticipated Endowment (4 stage Payment) Insurance Plan (with

Profit)

Features:
Meeting the needs of time and the assurance of the availability of the full sum assured in 4
installments within the duration of the term makes this plan very popular and marketable.
 The installment sum within the duration of the term could be used for profitable
ventures as well as to implement plans for education, marriage and other necessities
of children of the policyholder.
If a policyholder dies within the duration of the term after receiving several
installment claims, the full sum assured and accrued bonuses is provided to his/her
nominee(s). The terms of this plan are 12, 16, 20 and 24 years and the maximum age
limit to receive claims is 65 and 70 years

Terms and conditions:

The minimum age of a policyholder has to be 18/20 years and the maximum age is
53 years.
There are no rebates available on the rates listed in this plan.
There are no premium rebates available for a large sum policy.
Premiums are taken yearly, but premiums can also be given in a quarterly, half
yearly and monthly basis.

Plan 5: Money Back Term Insurance- with Guaranteed Bonus Policy

Features:

Considering the development of the insurance industry as well as the economic protection
of the policyholders families, Guardian Life Insurance Limited has introduced this new
plan, the main purpose of which is to take more risk at less premium rate.

The policyholder will receive return of all premiums during the term of the policy
and 25% of basic sum assured on maturity of the policy.
The policyholder will also receive full sum assured on death within the term of the
policy.
The terms of this plan are 10, 15 and 20 years and the maximum age limit to receive
claims is 60 years

Terms and Conditions:

The minimum age of a policyholder has to be 18/20 years and the maximum age is
50 years.
There are no rebates available on the rates listed in this plan.
There are no premium rebates available for a large sum policy
 Plan 6: Single Premium Insurance Plan

Features:

Guardian Life Insurance Limited is launching this insurance plan in order to ensure
economic freedom for the policyholders family and for a policyholder to receive double the
sum assured in the shortest time.

This plan is beneficial and dependable especially for the non residential people of
Bangladesh..
The policyholder can effectively plan for the amount needed for his/her childrens
education and marriage
The term of this insurance plan is 6, 7,8,9,10,11,12,13,14 and 15 years and the
maximum age limit to receive claims is 60 years
There are no rebates available on the rates listed in this plan.

Plan 7:Monthly Savings Plan -with profit. (MSP)

GUARDIAN MSP is a savings and protection plan that provides an attractive Maturity
Value with bonus

GUARDIAN MSP Gold

Features: Maturity Value + Life Coverage + Accidental Coverage

Maturity Value:

Attractive Maturity value is payable for expected bonus earn on Company life fund.

Life Coverage:

Life Insurance coverage is equivalent to policy Face Amount (Sum Assured) and is payable
in the event of death of the insured.

Accidental Coverage:

In the event of accidental death an additional benefit equal to the face amount of the policy
is payable to the nominee.
 Monthly Premium Rates:

Min: Tk 1,000 per month and its multiple amounts

Max: Any amount which does not result into Face Amount exceeding Tk 10,
00,000

Others Terms and Conditions:

Premium payment mode: Monthly but quarterly, half yearly or annually can be
deposited
The cash surrender value may be less than the premiums paid.
Policy will be allowed up to a maximum of 90% of the net cash surrender value.
The policy may lapse with no value if premium is not paid regularly as due.
Underwriting rules: Existing Company rules will be applicable.
 2.Group insurance

Guardian life offer group insurance schemes such as Employer-Employee, Professionals,

Co-operatives and NGOs etc. What makes these schemes attractive are low premium,
simple insurable conditions and easy administration in putting a single master policy
covering all the employees/members.

Who can take the scheme

Any organization, institution, professionals or NGO having at least 10 employees/

members can take a group insurance schemes

Benefits to the employer:

Group life/hospitalization insurance comes in the service benefit package of the

employees.
It positively contributes to the morale and productivity of the employees and helps
to attract and retain employees over a longer time period
Employers can also obtain a tax shield for the cost of contributing to the plan.

Benefits to the employee:

Medical conditions and/or the high cost of individual coverage tend to prevent
employees from purchasing individual coverage packages.
Such plan allows virtually all members of a given group to be insured, regardless of
their prior health history.
This plan allows an employee to pay a lower rate per unit of benefits than is
available with individual coverage.
A non contributory plan is even better for the employees, where the employer pays
for the coverage that employees would otherwise have to pay for with personal
money.

Premium rate fixation:

Usually premium rates are fixed on the basis of age distribution, sum assured and profession
of the group clients. Sometimes, group insurance departments quote premium rates based on
business.
About City Insurance:

City General Insurance

Company Limited is a
second generation non-life
Insurance Company
incorporated as public
limited company on
March 18, 1996 under the
companies Act 1994. The
company obtained the
certificate of Registration
from the Chief Controller
of Insurance Govt. of The People's Republic of Bangladesh on March 31, 1996 for carrying
Insurance business such as Fire, Marine, Motor & Miscellaneous insurance. Later the
company has been listed with Dhaka and Chittagong Stock Exchanges in last of 2007. Mr.
Anwar Hossain is Chairman of the company. He is a renowned businessman and the Group
Chairman of Anwar Group of Industries. He is a former Member of Parliament.
Fire Insurance:

Traditional Fire Insurance Policy Covers the Fire and/or Lightning risks only.
The policy premium is charged in accordance with Tariff rate prescribed by Central
Rating Committee (CRC).
However; the Fire Policy can be extended to cover some allied perils such as Riot
and Strike Damage, Malicious Damage, Flood & Cyclone and Commercial
Explosion.

Motor Insurance:

Its includes Private Vehicles Commercial Vehicles

Private vehicle:

The vehicles which are under private Registration and used for private purposes and not
used for hire or reward, shall come under the scope of the Private Vehicles. The vehicles are
classed on the basis of the registration and the purposes of use but not on the basis of the
design or type.

Two types of policies are issued under the Commercial Vehicle

1. Comprehensive Policy:

by fire explosion, self ignition or lighting

by burglary housebreaking or theft
by Riot and Strike including malicious activities
by Earthquake (Fire & Shock damage)
by Flood, Typhoon, Hurricane, Storm, tempest, inundation, cyclone,
by accidental external mean

2. Act Liability Policy

Death of or bodily injury to any person except the person who is under employment
of the insured.
Damage to property other than property belonging to the insured or held in trust by
or in the custody or control of the insured.
Commercial Vehicles

All vehicles not provided for under the Private or Motor Cycle Tariff excluding vehicles
running on rails.

1. Comprehensive Policy:

by fire explosion, self ignition or lighting

by burglary housebreaking or theft
by Riot and Strike including malicious activities
by Earthquake (Fire & Shock damage)
by Flood, Typhoon, Hurricane, Storm, tempest, inundation, cyclone,
by accidental external mean

2. Act Liability Policy

Against any liability which may be incurred by him in respect of the death

Health Insurance
The Health Insurance covers expenses of medical treatment while hospitalized due to illness
or injury. Each confinement in broad terms includes:

Hospital Accommodation
Consultation with Physician or Surgeon
Medical Investigations
Surgical Operation (major and intermediate)
Use of Operation Theatre facilities, anesthesia, and other services.
Medicines
Ancillary services like labour room services, ICU/CCU room, post-operative room,
blood transfusion, ambulance service etc.

Marine Insurance:
Marine Cargo Insurance
Marine Hull Insurance
Goods in Transit Insuranc
Overseas travel insurance
Overseas Travel Insurance protects you against accidental injury or sudden sickness while
traveling overseas for Business, Holidays, Studies and Employment

Miscellaneous Types of Insurance

In addition to our traditional insurance policies, they offer the following miscellaneous
classes of insurance services to their valued clients:

Agent Banking Insurance

Bankers Blanket Bond
Cash in Safe
Cash in Transit
Cash on Counter
Cash in Premises
Commercial General Liability (CGL)
Clinical Trail Insurances
Employers Liability
Personal Accident
Product Liability (PRL)
Public Liability (PL)
Professional Indemnity
Workmens Compensation

Conclusion: