Background of Purabi General Insurance Company Limited

Purabi General Insurance Company Limited (referred to as "PGICL" or "the Company") was
officially incorporated as a public limited company on June 29, 1998, in strict accordance with
the regulatory framework established by the Companies Act, 1994. The Company obtained the
Certificate of Commencement of Business on June 29, 1998. The Company was registered with
the Department of Insurance (Now Insurance Development & Regulatory Authority) on
December 29, 1999 under the Insurance Act, 1938 and then under the Insurance Act, 2010.
The company got its IPO permission from BSEC July 06, 2009 and was enlisted with both DSE
& CSE on October 26, 2009. The registered office of IIBL is located at DR Tower (11th Floor),
65/2/2 Purana Paltan (Box Culvert Road), Dhaka, Bangladesh and as at 31 December, 2022,
total branches of the company is 45 with total number of employees of 1468.

Background of the assignment

The Insurance Development & Regulatory Authority (IDRA) was established by the Government
of the People’s Republic of Bangladesh under Section 05 of the Insurance Development &
Regulatory Authority Act 2010. IDRA is the regulatory authority of insurance companies, both
life, and non-life, and their business in Bangladesh, as formed under the Insurance
Development and Regulatory Authority Act, 2010 by the Government of the Peoples’ Republic
of Bangladesh with the lawful power of authority to supervise, regulate and control insurance
business to protect the interest of beneficiaries i.e. Policyholders & Shareholders.
Given the regulatory framework, IDRA has undertaken an audit to assess the compliance of
Islami Insurance Bangladesh Limited with the provisions of The Insurance Act, 2010, relevant
rules and regulations, and the circulars/directives issued by IDRA. Pursuant to our appointment
letter Reference: 53.03.0000.056.01.001.2024.55 dated February 14, 2024, we have conducted
the audit in accordance with the specified scope outlined in the appointment letter.
As part of our audit, we conducted on-site visits to six Branches of the company, selected on a
sample basis corresponding to the highest premium collections. This allowed us to verify the
financial and operational activities of Islami Insurance Bangladesh Limited. Throughout the audit
process, we maintained open communication with relevant officials of the company, ensuring a
comprehensive understanding of its affairs.
Our audit findings, as detailed in the subsequent report, provide insights into the company's
compliance with regulatory requirements and operational efficacy. We are at your disposal for
any further clarification or additional information required.
Scope of the Audit:

The scope of the audit has been determined by IDRA in the appointment letter Reference:
53.03.0000.056.01.001.2024.55 dated February 14, 2024 as follows:
1. Verification of Real Existence of Agents and Development Officers, Appointment Letter,
Personal File, Ghost Employee & Dummy Agent.
2. Verify whether salary, commission, other benefits, promotions, increments paid to
agents and development officers are paid in accordance with Insurance Act Rules,
Authority Instructions/Circulars and Prudent Principal.
3. Verification of Timely Premium Deposit and Proper Process of Premium Return.
4. Claim Settlement Process and Accuracy Verification.
5. Reconciliation of Bank Account with Revenue Recognition.
6. Assessment of Proper Process of Re-Insurance and Comment on Refund Process.
7. Evaluation of Tariffs rate.
8. Evaluation of Cash Flow Statement/Reconciliation.
9. Review and Verification of All Movable and Immovable Assets of The Company.
10. Verification of All the Policies Accounted For (Especially Marine Cargo).

We have completed our audit as per the TOR.

Limitations of audit:

In performing our audit, we encountered the following limitations on the scope of our work:

 The time determined for the audit was 2 months whereas, such extensive audit requires
more time.
Audit Approach

Our audit methodology focuses on the requirements of the TOR & developing an audit program
for the completion of these requirements. The audit was conducted by understanding their
process, assessing control and risk, field visit and regular supervisory review of the audit
process.
Process Understanding:
We communicated with IIBL management and obtained their policy documents, and interviewed
& discussed with management to understand the process of operations and how that translates
to the financial record keeping of IIBL, focusing and gathering information on TOR areas.
Risk Assessment Method
After obtaining an understanding of the company policies and practices and coordination with
IIBL, we identified risk areas for our audit process and to fulfill the unique requirements of the
TOR provided by IDRA and the regulations of the insurance industry.
Control Assessment
We assessed the internal controls and determined how effective they are in managing the risks
identified and identified areas where substantive procedures will be implemented and the
sampling method to be used to satisfied with the authenticity of the information provided as per
the requirements of TOR.
Field Visit
We conducted field visit as an alternative process for validating affairs of the company. There
are 06 services centers that we have visited including Cumilla, Muradnagar, Chandpur, Feni,
Laksam & Chittagong.
Review Method:
After the works are completed, we produced a draft report which is then reviewed by our
assigned partner as well as the Team Leader for discussion and possible weaknesses on our
part in case further works need to be performed to fulfil TOR and audit program requirements
and to maintain the high standards of professionalism of our firm.

Summary of Findings:
Disclaimer

Our review report has been prepared with due care and diligence. The observation in our report
are given based on the documents and evidence so far produced to us & information and
clarifications made available to us by the company on reasonable grounds, that such
statements and conclusions are not misleading. The purpose of this review as indicated in the
preceding paragraph was to investigate and assess the affairs of the company and the extent of
compliance done by the company of the Insurance Act, 2010 (corresponding Insurance Act,
1938), Insurance Rules, 1958 and other relevant laws and regulations. This report of special
audit in line with the Terms of Reference (TOR) may be relied upon by the Board of Directors.
We do not assume any responsibilities if the user differs with the conclusions arrived at this
report for any purpose other than those mentioned in this report. Furthermore, reproduction of
any portion of this report is strictly prohibited without prior approval.