Notre Dame University Bangladesh

Report On
‘Reliance Insurance Limited’

Submitted to:
Md. Omar Faruk Bhuiyan
Lecturer
Notre Dame University Bangladesh

Submitted by:
Name ID No.
Paul Mridul Gomes 171010011
Ayon Theotonius Gomes 171010015
Ronald Halder 171010021
Upal Frank Gomes 171010022
Sumic Maclean Gomes 171010030
 Table of content

Content Content Name

No.

1 Introduction

2 Insurance Industry In Bangladesh

3 Company Overview

4 Product & Services

5 Finding

6 Conclusion
Upal Frank Gomes

Introduction:
Insurance is a system of spreading the risk of one to the shoulders of many. It is a contract
whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the
insured against losses arising out of certain specified unforeseen contingencies or perils insured
against. The growth of insurance industry in Bangladesh has made an average progress in 2007.
Per capita spending on insurance is still a lot less than $3 while insurance penetration,
measured on premium as a percentage of GROSS DOMESTIC PRODUCT, also below 1%.

Ayon Theotonius Gomes

Insurance industry 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.10 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. Some of these companies were specialized in
dealing in a particular class of business, while others were composite companies that dealt in
more than one class of business.

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 originations
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 Jibon Bima Corporation, and Surma 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. 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. Rupsa and Surma for life
insurance and Tista and Karnafuli Bima Corporations were for general insurance.
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 (JBC) 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 were emerged as
Bangladesh Government allowed the private sector to conduct business in all areas if 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 19 companies, came into
operations now between 1999 to 2001 and recent 2013 in new 02 companies joined in
operation. The general insurance market in Bangladesh consists of 45 private sector insurance
companies and 1 state owned insurance company and of life insurance companies to 31
including Jiban Bima Corporation and one foreign company American life company (now
MetLife) which has been operating since 1972.

Paul Mridul Gomes

Company overview:
Reliance started as a First Generation Private Sector Non-Life Insurance Company in Bangladesh
in 1988 with a promise to be a flexible and responsible entity to serve clients, has now flourish
manifold to enter its 30th year of excellence. Reliance Insurance Limited is now one of the
nation’s major forces in insurance sector, that transacts all classes of non-life insurance
business in Bangladesh. With a diversified portfolio of products & services, esteemed group of
sponsors, optimum customer service & prudent management, Reliance Insurance Limited offers
pragmatic solution to all the insurance needs that makes positive contribution to the sustained
growth of the nation.

A leading first generation private sector Non-Life Insurance Company in Bangladesh, Reliance
Insurance Limited (RIL) was incorporated in 1988 as a Public Limited Company under the
Companies Act, 1913 (Present 1994) and subsequently was listed with Dhaka and Chittagong
Stock Exchanges in 1995. Reliance transacts all classes of non-life insurance business in
Bangladesh and its turnover was in excess of BDT 2,572.67 million, being total gross premium
underwritten in 2017. The Company carries its insurance activities through Head Office along
with 32 (thirty-two) branches spread across the whole country. RIL received “AAA (Triple A)”
Surveillance Rating (Stable outlook) from CRISL based on its sound financial performance and
claim paying ability
AWARDS AND ACCOLADES

 NATIONAL AWARDS FROM THE INSTITUTE OF CHARTERED ACCOUNTANTS OF

BANGLADESH (ICAB)
 NATIONAL AWARDS FROM THE INSTITUTE OF COST AND MANAGEMENT
ACCOUNTANTS OF BANGLADESH (ICMAB)
 NATIONAL AWARD FROM THE INSTITUTE OF CHARTERED SECRETARIES OF
BANGLADESH (ICSB)
 CERTIFICATE OF MERIT FROM SOUTH ASIAN FEDERATION OF ACCOUNTANTS (SAFA)

Sumic Maclean Gomes

Product & services:

PROPERTY INSURANCE:

 Fire Insurance (including Allied Perils)

 Property Damage All Risks
 Industrial All Risks (IAR) including Business Interruption
 Comprehensive Machinery Insurance

OVERSEAS MEDICLAIM:

 Business and Holiday (B&H)

 Corporate Frequent Travels (CFT)
 Employment and Study (E&S)

MISCELLANEOUS INSURANCE:

 Burglary
 Money Insurance (for Banks)
 Cash in Safe
 Cash in Transit
 Cash on Counter
 Cash in Premises
 Fidelity Guarantee
 All Risks Product Liability
 Public Liability
  Directors & Officers
 Liability Insurance
 Workmen’s Compensation
 Employer’s Liability
 Marine Terminal Operators Liability (MTOL)
 Comprehensive General Liability
 Bankers Blanket Bond
 Insurance Hotel Owner’s All Risks (HOAR)
 Personal Accident Insurance
 People’s Personal Accident
 Aviation Insurance-Aircraft Hull
 Liability and Related Risks
 Export Credit Insurance

ENGINEERING INSURANCE:

 Machinery Breakdown Insurance (MBD)

 Deterioration of Stocks (DOS)
 Boiler and Pressure Vessel (BPV)
 Electronic Equipment Insurance (EEI)
 Erection All Risks (EAR)
 Contractor’s All Risks (CAR)
 Work Plant (WP)
 Oil & Gas Well Drilling Equipment Package (OGD)
 Contractors Plant & Machinery (CPM)

MOTOR INSURANCE:

 Marine Cargo
 Marine Hull
 Builders Risks Insurance

MARINE INSURANCE:

 Marine Cargo
 Marine Hull Builders
 Risks Insurance
Ronald Halder

Finding:
The insurance industry of Bangladesh has witnessed a steady growth and attracted a lot of
interest in recent years. Even then, the industry is ripe with problems. This study is a reflection
of the severity and likelihood of the problems and prospects of the insurance industry from the
viewpoint of the insurance companies themselves. The study revealed that low qualification of
the agents to be the most pressing human resource management problem while the lack of
technical employees stood as the most important operational problem. Customers’ lack of
understanding of insurance terms and policies and unhealthy competition came out to be the
most severe marketing and ethical problems respectively. Only human resource management
problems were found to vary in their degree of severity among life and general insurance
companies; these problems proved to be more critical for the life insurance companies,
especially the state-owned ones. State-owned life insurance company is also the greatest
sufferer of marketing, operational and ethical problems among all categories of life insurance
companies. With economic expansion of the country the potential for this industry is quite high.
With higher income and literacy rate, people are expected to recognize the benefits of
insurance in life business and thus raising the demand of insurance services. Higher demand for
insurance, merger of the insurance companies and higher underwriting capacity of the
insurance companies were judged to be the most likely prospects. Furthermore, there is a high
likelihood in the growth of fire and marine insurance, and micro-insurance services. In order to
stimulate the demand, effective marketing initiatives with ethical competition needs to be
undertaken. In addition to that recruitment of more qualified employees at management level,
proper training and orientation of the agents/employees, development of information
technology, service diversification within the industry, fully functioning regulatory system, etc.,
are essential.

Conclusion:
The insurance companies of Bangladesh should practice marketing through the use of
promotional tools such as advertising, sales promotion, public relation and publicity, personal
selling and direct marketing. In order to create the growth of insurance business in our country,
insurance companies should expand their target market by providing responsive services and
establish efficient departments to perform such task. Government must minimize the
restrictions on premium so that insurance companies can fix their premium according to their
demand. This will increase the profitability of the insurance companies.