Page 1 of 12

AN ASSIGNMENT
ON
Writing a Report on Meghna Life Insurance Company Limited
Course Code: FCC-305
Course Title: Risk Management and Insurance

Submitted To:
Kazi Sirajum Munira
Lecturer
Department of Management
University of Chittagong

Submitted By:
Group Name: The Enthusiasts
Group Member Id No.
Nurer Nobi 18302008
Faysal Mohammad Tanvir 18302014
Avishek Chowdhury 18302135
Shown Shaik 18302117
Robin 18302076
Md. Asifujjaman Joy 18302047

Session: 2017-2018 (5th Semester)

Department of Management
University of Chittagong
 Page 2 of 12

Date of Submission: 20/06/2020

Table of Contents

Particulars Page Number

Chapter-1: Introduction 3

Chapter-2: Company Profile 5

Brief discussion about the company’s origin 6

Vision and Mission 8

Product, Policy and Benefits 9

Chapter-3: Conclusion 12
 Page 3 of 12

Chapter: 01

Introduction

 Purpose: The purpose of this report is to provide a brief picture of by Meghna Life Insurance
Company Limited. One can learn about the history of origin, present status, product, policy and
services etc. of this insurance company from this report.

 Background: Insurance is a form of risk management used to hedge against the risk of a
contingent loss. It involves the transfer of the risk of potential loss from one entity to another, in
exchange for a risk premium. Given this role the insurance sector fosters financial stability by
enabling economic agents to undertake various transactions with the facility of transfer and
dispersion of risks. As a crucial component of the financial system, life insurance plans are an
important source of savings and long-term institutional investments.

Insurance sector in Bangladesh emerged after independence with 2 nationalized insurance

companies- 1 Life and 1 General; and 1 foreign insurance company. In mid 80s, private sector
insurance companies started to enter in the industry and it got expanded. Now days, 62 companies
are operating under Insurance Act 2010. Out of them 18 are Life Insurance Companies including
1 foreign company and 1 is state-owned company. Other 44 are general insurance companies
including 1 state-owned company.

Currently, overall insurance penetration in the country is approximately 0.57 % which is not
sufficient. In 2018, Bangladesh’s insurance premium earnings rose by 11.06 % to Tk. 124.165
billion, according to data available with the Insurance Development and Regulatory Authority
(IDRA). The gross premium from life insurances stood at Tk. 90.20 billion in the year, up by
10.10 % while premium of non-life insurance steed at Tk. 33.97 billion showing 13.92 % rise.
 Page 4 of 12

Life insurers disbursed a total claim payment of Tk. 65.71 billion with the claim settlement ratio
of 88.51 %.

Meghna Life Insurance Company Limited is one of the top private life insurance companies
operating in this ever-growing market. The company is doing business for about 20 years since its
establishment. In this report we will try to depict a brief picture of this life insurance company’s
features and functions.
 Method of Investigation: We have collected information from several websites such as
www.meghnalife.com, www.bb.org.bd, www.thefinancialexpress.com.bd, www.researchgate.net,
www.wikipedia.org etc. to furnish this report. In this report we have tried to focus on the key
points i.e. key features, functions and informative sides of Meghna Life Insurance Company
Limited.

 Scope: From this report we can learn about the history of origin, company profile, products,
policy and services offered by Meghna Life Insurance Company Limited. It can help the reader to
gain a clear knowledge about the company and take decision about whether to buy insurance
form this company or not.
 Page 5 of 12

Chapter: 02

Company Profile

Meghna Life Insurance Company Limited was emerged in 1996. It was ceaseless efforts and courageous
initiative of the chairman and some other entrepreneurs. The main objective of Meghna Life was to
provide maximum financial security to a person and families by giving modern insurance facilities. The
company had incorporation and commencement their business in 5 th May 1996. The authorized capital of
the company is Tk.60 crore and paid up capital at present stands at Tk.25, 33,780,040.In 1996, premium
income, life fund and investment was Tk.3.30 crore, Tk.0.04 crore and Tk.2.59 crore respectively and in
2014 such premium income, life fund and investment increased to Tk.443.15 crore, Tk.1340.67 crore and
Tk.803.06 crore taka as death claim survival benefit, maturity claim and bonus to the policy holders. This
success has been possible due to constant guidance supervision and ceaseless efforts of the Honorable
Chairman and Directors and the present competent management. Meghna Life Insurance Limited also
focuses on policyholder’s satisfaction. They committed to deliver best financial services to policyholders
and also catering high degree of professionalism by use of latest digital technology. Presently a huge
number of marketing personnel’s and 1385 officials in Administration are engaged in Meghna Life
Insurance Company Limited to serve a huge number of honorable policyholders. Total asset of the
company stands at Tk. 1,828.55 crore. About Tk. 1,381.87 crore have been invested in Government
Securities and other approved Agencies/Sectors. If this trend of the premium income is continued, Life
Fund by end of 2019 may stand at Tk. 1,800 crore (hypothetically).
 Page 6 of 12

A Brief Discussion about the Company’s Origin

Every day the employees of Meghna Life Insurance Company wake up to the fact that more than 25
million lives are part of this family called MEGHNA LIFE. They are humbled by the magnitude of the
responsibility they carry and realize the lives that are associated with them are very valuable
indeed. Though this journey started over two decades ago, they are still conscious of the fact that, while
insurance may be a business for them, being part of millions of lives every day for the past 20 years has
been a process called TRUST. Because "Trust is our Motto" is the slogan of the company.

In the year 1996 some enthusiastic Bangladeshi professionals along with some others of similar state of
mind dreamed of establishing a Life Insurance Company in order to participate in the financial activities
of the country such as reduction of unemployment, alleviation of poverty and to contribute to the nation
for the upliftment of the lot of common people. Eventually due to ceaseless efforts and courageous
initiative of the Chairman and some other entrepreneurs, Meghna Life Insurance Co. Ltd. was emerged in
1996. The main object of Meghna Life was to provide maximum financial security to a person and
families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable savings
institution through payment of bonus at an attractive rate and enriched servicing and invest the
accumulated small savings in the nation building various welfare and profitable projects.

The authorized capital of the company is Tk. 60 crore and paid up capital at present stands at Tk.
25,33,78,040/-. In 1996 Premium income, Life Fund & Investment was Tk. 3.30 crore, Tk. 0.04 crore&
Tk. 2.59 crore respectively and in 2014 such Premium income, Life Fund & Investment increased to Tk.
443.15 crore, Tk. 1340.67 crore& Tk. 803.06 crore respectively. From 1996 to 2015 Meghna Life paid
1145 crore taka as death claim, survival benefit, maturity claims and bonus to the policy holders. This
 Page 7 of 12

success has been possible due to constant guidance supervision and ceaseless efforts of the Honorable
Chairman and Directors and the present competent management.

Meghna Life Insurance Company Limited successfully made its mark in the Life Insurance arena by not
only being the top listed among the Private sector indigenous companies, but by undertaking and
successfully implementing innovative and welfare oriented Life Insurance schemes. It introduced an array
of conventional Life and other Insurance products of EkokBima, LokoBima and IslamiBima (Takaful)
many of which were the first in Bangladesh. For the first time Hospitalization benefit Insurance product
was also introduced by Meghna Life.

Meghna Life has earned reputation in every corner of the insurance Industry. It can take pride of its
prestigious achievements which are molded with transparency, accountability, impeccable working
capacity, sincerity, honesty and sagacity. The company has diversified its products to match customer’s
needs and satisfaction. Currently it provides multifarious Life Insurance products to cater to the
aspirations & needs as well as religious beliefs to the clients. There is no iota of doubt that Meghna life
will go forward with its new missions and visions in the days to come.
 Page 8 of 12

Vision
The vision of Meghna Life Insurance Company Limited is to lead the insurance sector by delivering
excellent services to all categories of policyholders through their trained folk of Insurance activists and
use of smart latest digital technology to be delivered at the door steps of common people.

Mission

 Speedy quality services to policyholders.

 Maintain sustainable growth.
 Follow strong/high ethics of morality in all sphere of business operation/activities.
 Provide profitable return on shareholder’s equity.
 Maintain corporate social responsibilities (CSR).
 Explore new areas/venues where Insurance awareness has not yet been developed.
 Protect policyholder’s interest.
 Develop honesty, sincerity, integrity among the service rendering employees.
 Page 9 of 12

Product and Service Offered

Meghna Life Insurance Company Ltd. has introduced innovative and attractive policies with a view to
attract different class of people of the country. At present Meghna Life Insurance Company is offering the
following policies in other 5 (five) different categories:

 Ordinary Life (EkokBima)

 Group Insurance
 LokoBima
 IslamiBima (Takaful)
 IslamiKhudraBima (Takaful)

Ordinary Life (EkokBima) :

Meghna Life offers a wide variety of ordinary life product/plans ranging from the most common
endowment type to more modern and sophisticated plans like endowment with open term, pension plan,
child protection plan, etc. and the aim of increasing pension, increasing protection with provision for
premium refund etc.

Group Insurance :

This scheme has been designed to make the officials and employees of Meghna Life Insurance Co. Ltd.
free from tension and financial hardship. With a very small premium, very large amount of Sum-assured
may be taken with regard to the risk of accident and premature death.

LokoBima :
 Page 10 of 12

LokoBima Project was emerged on 13th June 1998. The aim and object of LokoBima Project is to arouse
90%. People of the country towards savings and to make them conscious and self-reliant through
Insurance. This project plays a very important role in solving social problems of a large number of people
by reduction of unemployment, population control, development of cottage Industry, rural development
so to say social backwardness etc. The following are the plans of LokoBima-

IslamiBima (Takaful) :

The aim and object of IslamiBima (Takaful) is to provide more financial security of the mass people of
this country through this project. This project was introduced to turn Life Insurance into a profitable
savings arrangement through payment by instalments on the basis of IslamiShariah and transparent and
impeccable servicing.

IslamiKhudraBima (Takaful) :

The object of IslamiKhudraBima (Takaful) is to create habit of savings for the low income group of
people of Bangladesh, ensure profit and savings through modern Insurance facilities and to introduce
interest free IslamiBima. These are the following plans.

Supplementary Hospitalization Insurance Benefit

Those who are within the age of 18 to 55 years, they take this Insurance with the principal policy.

Benefits of insurance :

Advantages available in the Hospital-

 Staying in the Private room.

 Doctor’s Consultation Fees.
 Diagnosis expenses.
 Surgical Operation expenses.
 Medicine.
 Page 11 of 12

 Relevant Services Expenses.

Protection: 
Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of
demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable)
whereas in other savings schemes, only the amount saved (with interest) is payable.

ToThrift: 
Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly
because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is
monthly, quarterly, half yearly or yearly). 
For example: The Salary Saving Scheme popularly known as SSS provides a convenient method of
paying premium each month by deduction from one's salary. 
In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal
for any institution or establishment subject to specified terms and conditions.

Liquidity: 
In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired
loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial-
loan.

Tax-Relief: 
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for
amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also
avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for
insurance than otherwise.

Money When You Need It: 

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to
meet certain monetary needs that may arise from time-to-time. 
 Page 12 of 12

Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of
time can be less stressful with the help of these policies. 

Conclusion

Insurance is a way to manage risk of a contingent loss. From our study about the Meghna Life Insurance
Company Limited we observe that, although this company is emerged above 2 decades, then the company
achieve their goal and get success within that short time because of excellence of management and proper
guiding. Life insurance in one side assures protection against risk of death, besides it creates the desire of
savings. After this savings is invested to the economy. In 1996 Meghna Life Insurance Company’s
investment was Tk. 2.59 crore which increases to Tk. 803.06 crore in 2020 which is almost quadrupled.
As Bangladesh is a over populated country and most of the people are now concerning about the life
insurance. So, Meghna Life Insurance Company has a great aspect to collect premium across the country
and expand to their business.