Internship Report On Peoples Insurance Company Limited 1g83i

Stamford University Bangladesh Assignment On Overall Activities of Peoples Insurance Company Limited

Submitted To: Tazrina Floora Lecturer Stamford University Bangladesh.

Submitted By: Name: Md. Rafiuddin Biplab ID No. BBA 042 13331

Date of Submission: 02/08/2011

LETTER OF TRANSMITTAL

01st August, 2011 Tazrina Floora Senior Lecturer Department of Business istration Stamford University Bangladesh Dhanmondi, Dhaka Subject: Submission of Assignment Report. Dear Madam, It gives us immense pleasure in presenting here with the assignment on “Peoples Insurance Company Limited”, which was assigned to us as partial fulfillment of the ‘Principle of Insurance’ course requirement. The Assignment gave the opportunity to have an insight on the insurance practice and its performance all over the organ-ization of Popular Insurance Company limited in Bangladesh. We have been tried to provide a brief discussion on overall performance of the company. We have tried heart and soul to make the report attractive, effective and useful. The Assignment was very much valuable to us as it helped us to gain experience from the practical field. We are grateful to you for providing us this opportunity of gaining such practical experiences and to know how theoretical knowledge is applied in the real world.

With best regards,

Sincerely

Md. Rafiuddin Biplab ID No: BBA 042 13331

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ACKNOWLEDGEMENT For the successful accomplishment of this report, first we would like to thank the almighty. Next, with warm gratitude from the deepest of our heart we would like to all of them who have helped us from every side in accomplishing this report. We feel very much lucky that we got a fabulous opportunity to carry on our Assignment on such a notable Peoples Insurance Company Limited. This has been working as the overall insurance business in Bangladesh since 1985. We would like to thanks to Peoples Insurance Company Limited for providing the opportunities for obtained the information of overall business of Insurance. Besides these helps us for different assistance like library facilities, answering the questionnaires, annual report and others. We would like to it our cordial gratitude to our honorable Teacher Tazrina Floora, the senior lecturer of BBA, Stamford University Bangladesh for guiding us from start to end in preparing this report. The final accomplishment of this work would not have been possible without her immense assistance and care. Last of all we would like to acknowledge the Department of Business istration, Stamford University for providing different facilities like Library and others. Stamford University helps for acquiring the practical knowledge in the field which we have study theoriticals in course. In essence, we would like to say that project and thesis program on overall insurance practice of Peoples Insurance Company Limited helped us largely in acquiring useful insights about highly utilizing our academic knowledge in of practical orientation. Moreover, as our project was of very much practical and early effectual in nature, the assistance from all our guides made us able to apply easily the concepts and tools into practical field. Our efforts as well as those of our supervisors will be fruitful if this work is brought into effect.

Acronyms i) ii)

PICL = Peoples Insurance Company Limited BIA = Bangladesh Insurance Academy

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Executive Summary

Peoples Insurance Company Limited is one of the leading insurance organizations of Bangladesh. It is a General Insurance company. Insurance is a form of contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good a loss, damage or injury to something of value in which the insured has a pecuniary( it means economic) interest as a result of some uncertain event. It is a device by which loss is likely to be caused by an uncertain event is spread over a number of persons who are exposed to it and who propose to insure themselves against such an event. That’s why there is very demand of the insurance all over the world. There are many social and economic values of insurance, but perhaps the greatest value lies in the many benefits flowing from the risk in Society. Peoples Insurance Company Limited (PICL) is a first private insurance company in Bangladesh. PICL was established in 1985. Date of Incorporation and Obtained Certificate for Commen- cement of Business is 31 March 1985. PICL is a reliable insurance company in the insurance landscape in Bangladesh. There are different insurance policies of PICL and those are Fire Insurance, Industrial "All Risks" Insurance, Marine Cargo Insurance, Marine Hull Insurance, Motor Insurance, Contractor's "All Risks" Insurance, Erection"All Risks" Insurance, Machinery Breakdown Insurance, Deterioration of Stock Insurance, Boiler & Pressure Vessel Insurance, Burglary & Housebreaking Insurance, Cashin-transit Insurance, Cash-in-safe Insurance, Cash-on-counter Insurance, Public Liability Insurance, Personal Accident Insurance, Peoples's Personal Accident Insurance, Workmen's Compensation Insurance, Goods-in-transit Insurance, Comprehensive Travel Insurance, Overseas Medi-claim Insurance, "All Risks" Insurance, Fidelity Guarantee Insurance, Bank Lockers Insurance. Those Policies are available in Peoples insurance company Limited. Besides different new policies will be launch soon. Insurance company is providing economic security to the clients as well as creating long term capital in the market.This is a very important factor for the socio economic development of Bangladesh. Peoples Insurance Company was established with a vision that is to reach at zenith point of providing quality service and hence achieving highest corporate goal and customer satisfaction. Our slogan is “manush manusher Janna”.

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TABLE OF CONTENT Chapter # 01 1.1 Introduction 1.2 Background of the Study 1.3 Objective of the study 1.4 Scope of the study 1.5 Methodology 1.6 Limitation of the Assignment

Chapter # 02 2.1 Industry Overview 2.2 Our Organization 2.3 Organizational History 2.4 Background, Vision and Mission

Chapter # 03 3.1 All Product Details

Chapter # 04 4.1 Performance Analysis 4.1.1 Balance Sheet 4.1.2 Five years Line Chart 4.2 SWOT Analysis

Chapter # 05 5.1 Recommendation 5.2 Conclusion 5.3 Bibliography

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Chapter # 1 1.1 Introduction Insurance is a system of spreading the risk of one to the shoulders of many and which is a legal contract whereby the insurers, on receipt of a consideration known as , agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. Insurance is a written contract, taken with the insuring company that transfers the risk of loss to the insurer according to the of the contract. However, not all risks are insurable. If an insurance company would have difficulty calculating the likelihood that a loss would occur because of some risk, it is reluctant to insure against that risk. Risks of this type are generally called uninsurable risks. TYPES OF INSURANCE • Home insurance • Health • Disability • Casualty • Life • Property • Liability • Credit • Insurance financing vehicles Marine is the oldest form of insurance, which was introduced in Northern Italy sometime between the 12th and 13th century. But the insurance business got an institutional shape in the United Kingdom after establishment of Lloyds Insurance Company in late 17th century. The coffee houses of London played a vital role in developing trade and commerce in the UK. The merchants and traders used to gather in these coffee houses for their business transactions. Edward Lloyd opened one such coffee house in 1680. In late 17th century this coffee house virtually turned into the most famous Lloyds Insurance Company of the UK. During the British rule, some insurance companies started functioning in India. These companies were of various origins including British, Australian and also Indian. After independence, Bangladesh government nationalized the insurance industry in 1972 by the Presidential Order No 95, known as the Bangladesh Insurance (Nationalization) Order 1972. A total of 60 insurance companies are operating in Bangladesh till date. Of these companies, 57 are private, two state-owned and one is foreign.

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Insurance Directorate, under the Ministry of Commerce, is the regulatory-body of the country's insurance sector.

1.2 Background of the Report This report has been prepared as a requirement of the Principal of Insurance course. The report was based upon the overall insurance activities in Bangladesh, I was duly approved by our Course Teacher Tazrina Floora. This report will help us know about the overall insurance business in Bangladesh. Insurance is a system of spreading the risk of one to the shoulders of many. It can be defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. It is a contract whereby the insurers, on receipt of a consideration known as , agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. It can play an important role in a country’s economy. It is an old form of financial practice of sharing risk, which was introduced in this area in mid-18th century.

1.3 OBJECTIVES OF THE STUDY The objective of the report is to make us known the practical situation of Peoples Insurance Company overall activities and prepare us to face the complex situation of insurance industry in this country and international. The objectives also represents here chronologically: 1. To know about insurance business. 2.

Generating an overview of the current insurance scnario in Bangladesh

3. To know the financial and money market business like insurance. 4. How it maintain the insurance all over Bangladesh. 5. To know about the money and credit policies in Bangladesh. 6. To know the strategy of making relationship with internal and external customer. 7. To develop our skill about insurance policy. 8. To survive with the current market situation. 9. To observe the practice of modern technology in business organization. 10. Practical knowledge about transaction. 11. To know about the inflow.

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1.4 SCOPE OF THE STUDY

Since Peoples Insurance Company Limited perform various tasks in the insurance business. The survey of the study has been conducted on overall insurance activities. Most of the information is collected from direct questionnaires and other techniques. The analyzing and interpretations of the report have been done with the help of academic teacher in the University Campus.

The scope of the project report is given below: •

The back ground of the organization (Peoples Insurance Company Limited)

•

The different insurance activities and other efforts.

•

The organization structure and organizing process for effectiveness.

•

And the other areas of operation in organization.

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1.5 Methodology The project report has been written on the basis of information collected from primary as well as secondary sources. The primary information has been collected from the personnel, in this case WE have used physical attendance to get positive, negative both sides of the project. Then WE got the relevant data for the required project. To carry out the proposed study, data have been collected from two sources: Primary and secondary sources. Primary data: Primary data for this study have been collected through a well-prepared questionnaire, which contains both open and close-ended questions. Several ways of collecting data have been used like, face-to-face interviews with the respondents, questionnaire surveyed. Secondary data: Secondary data again are of two kinds, internal and external. Internal secondary data has been collected from the organization Peoples Insurance Company Limited (PICL) and from its brochures and annual reports of different years. External secondary data gathered from various outlets, research reports, and literature’s /magazines, and the internet and internship reports of other organizations. Secondary sources of data will be used for data requirements of the report. Secondary sources of data: Use Internet and different articles published in the journals & magazines have been used. Secondary Sources are: • Textbooks on insurance • Insurance Journals. • Reference books on insurance. • Annual Reports of BGIC. • Internet Books. • Annual report of insurance companies

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1.6 Limitations of the Report (Assignment)

Every Assignment (Project and Thesis) has some limitation. In these thesis paper there are lot of limitation are discuss below: •

Due to time and cost restriction, the study in concentrated in selected areas.

•

Difficulty in collecting information

•

Lack of experience of the researcher and luck of cooperation from the respondents.

•

This project paper is submitted on theoretical prospective.

•

The study completely depends on official records, question answer, observation, face to face viva and annual reports.

•

Peoples Insurance Company Limited, they are busy and they could not give us enough time for discussion about various topes.

•

Lack of proper information in the websites of the insurance company.

•

Lack of necessary information in the journals and official publications of insurance companies.

•

Inexperience and time constraint is the limitation restricting this report from being more detailed.

•

Secondary data has been collected from the hand books, magazines, which may biased to the insurance business.

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Chapter # 02 Insurance Industry Overview 2.Background of insurance business in Bangladesh 2.1 Origin of insurance in Bangladesh Resistance against colonial or autocratic regimes in the third world has often been led by educated intelligentsia inspired by western ideas of nationalism and democracy has played a dominant role. Most victorious nationalist movements have been in later years reneged from their earlier commitments and few developing countries to day are nationalist, socialist or democratic. But that is a different story. When the Awami League cane to power in Bangladesh and the peoples party in Pakistan in 1972.It was inevitable that nationalization a wide scale would take place, for both parties had flaunted socialism as part of their political rhetoric. In Pakistan the istrative mechanism for nationalization of banking, insurance and some industries was carefully worked out by the bureaucracy under political leadership, and the takeover in a feel swoop ed of smoothly. Heads of insurance companies, for instance, where invited to tea at a Karachi Hotel. Where they told that while they were having teas the head offices of their companies were being sealed and Government appointed s were being put in charge. This was done to ensure that the assets of the companies remained intact and no tempering with s, records and documents was possible. In Bangladesh an effective government machinery did no exist in the chaotic conditions obtaining an independence following a bitter and brutal war industries was taken over without any inventory, and erstwhile owners ,who were being dispossessed, were allowed to ister their mills and factories till statutory corporations were established.

3.2 Historical Background of insurance Industry in Bangladesh Insurance is not new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bangal.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 like British, Australian, Indian, West Pakistan and local. Ten insurance companies had their head offices in East Pakistan, 27 in West Pakistan, and rest elsewhere in the world. These were mostly limited liability companies. Some of these companies were specialized on 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, saves and except postal life insurance and foreign life insurance companies, all 49insurance companies and organizations transacting insurance business in the country were placed in the sector under fie operations.

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These operations were :the Jatiya Bima Corporation,Tista Bima Corporation,Karnafuli Bima Corporation,Rupsa Jibon Bima Corporation and Surma Jibon Bima Corpporation.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 Corporation were for general insurance and Rupsa and Surma for life insuance.The specialist life insurance companies or for a life portion of a composite company ed the Rupsa and Surma corporations while specialist general insurance companies or the general portion of a composite company ed The Tista and Karnafuli corporations. The basic idea behind the formation of four underwriting corporations, two in each main branch of life and general, was to encourage competition even under a nationalized system. But the burden of istrative expenses incurred in maintaining two corporations in each front of life and general and an apex institution at the top outweighed the advantages of limited competition. consequently, on 14 May 1973,a restructuring was made under the Insurance Corporations Act 1973. Following the Act, in place of five corporations the government formed two: the SADHARAN BIMA CORPORATION for general business, and JIBAN BIMA CORPORATION for life business. The postal life insurance business and the life insurance business by foreign companies were still allowed to continue as before .In reality, however, only the AMERICAN LIFE INSURANCE COMPANY continued to operate in the life sector for both new business and servicing, while three other foreign life insurance continued to operate only for servicing their old policies issued during Pakistan days. Postal life maintained its business as before. After1973, general insurance business became the sole responsibility of the Sadharan Bima Corporation. Life insurance business was carried out by the Jibon Bima Corporation, the American Life insurance Company, and the Postal Life Insurance Department until 1994, when a change was made in the structure arrangement to keep place with the new economic trend of liberalization. The insurance corporations Act1973 were amended in 1984 to allow insurance companies in the private sector to operate side by with Sadharan Bima Corporation and Jiban Bima Corporation. The Insurance Corporations Amendment Act 1984 allowed floating of insurance companies, both life and general, in the private sector subject to certain restrictions regarding business operations and reinsurance. Under the new act, all general insurance business emanating from the public sector were reserved for the state owned Sadharan Bima Corporation, which could also underwrite insurance business emanating from the private sector. The Act of 1984 made it a requirement for the private sector insurance companies o obtain 100% reinsurance protection from the Sadharan Bima Corporation.This virtually turned Sadharan Bima Corporation into a reinsurance organization, in addition to its usual activities as direct insurer.Sadharan Bima Corporation itself had the right to reinsure its surplus elsewhere outside the country out after exhausting the retention capacity of the domestic market. Such restrictions aimed at preventing outflow of foreign exchange in the shape of reinsurance and developing are insurance market within Bangladesh. The restriction regarding business placement affected the interests of the private insurance companies in many ways. The restrictions were considered not congenial to the development of private sector business in insurance. Two strong arguments were put forward to articulate feelings: Since the public sector ed for about 80% of the total volume of the country, there was little left for the insurance companies in the private sector to

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survive. In this context, Sadharan Bima Corporation should not have been allowed to compute with the private sector insurance companies for the meager (20%) emanating from the private sector; Being a competitor in the insurance market, Sadharan Bima Corporation was hardly acceptable as an agency to protect the interest of the private sector insurance companies and should not have retained the exclusive right to reinsure policies of these companies. The arrangement was in fact, against the principle of laissez faire. Private sector insurance companies demanded withdrawal of the above restrictions so that they could: Underwrite both public and private sector insurance business in competition with the Sadharan Bima Corporation, and The government modified the system through promulgation of the Insurance Corporation (Amendment) Act1990.The changes allowed private sector insurance companies to underwrite 50% of the insurance business emanating from the public sector and to place up to 50% of their reinsurance with any reinsure of their choice, at home or aboard, keeping the remaining for placement with the Sadharan Bima corporation.

4. Present position of insurance business in Bangladesh In Bangladesh, the Insurance business, after and early stage of dislocation, adventure and experimentation through half a century has now being established as a nascent industry distributed between the public and private sectors. Insurance business evolved in the Indian subcontinent late in nineteenth century when several business companies started their business and a few Christian missionaries began to operate mutual funds to serve their own community . From Bangladesh perspective insurance business was not a promising sector in its early age but it is getting it’s pace day by day with the growth of overall economic condition of the country. The privatization policy adopted in the 1980s paved the way for a number of insurers to emerge in the private sector. This resulted in a substantial growth of incomes, competition, improvement in services, and introduction of newer types of business in wider fields hitherto untapped. Up to 2000, the government has given permission to 19 general insurance companies and 10 life insurance companies in the private sector. Insurers of the country now conduct almost all types of general and life insurance, except crop insurance and export credit guarantee insurance, which are available only with the Shadharan Bima Corporation. Numerous institutions, associations and professional groups work to promote the development of insurance business in Bangladesh. Prominent among them is the Bangladesh Insurance Association (formed on 25 May 1988) having 30 . It aims at promoting, ing and protecting the interests and welfare of the member companies. Another example is Bangladesh insurance academy. Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. The system of professional brokers has not yet developed in Bangladesh. A total of 60 insurance companies are operating in Bangladesh till date. Of these companies, 57 are private, two state-owned and one is foreign. Insurance Directorate, under the Ministry of Commerce, is the regulatory-body of the country's insurance sector. At present there are 44 general insurance companies running in Bangladesh. Many other private companies are about to commence business.

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Insurance Companies in Bangladesh Government S/L 1 Non Government S/L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Client's Name Jibon Bima Corporation Client's Name National Life Insurance Company Ltd Bangladesh Gen. Ins. Co. Ltd Peoples Insurance Co. Ltd. United Insurance Co. Ltd. Green Delta Ins. Co. Ltd. Progati Insurance Limited Eastern Insurance Co. Ltd. Eastland Insurance Co. Ltd. Karnaphuli Insurance Co. Ltd. Delta Life Insurance Co. Ltd. Janata Insurance Co. Ltd Phoenix Insurance Co. Ltd American Life Insurance Co. Federal Insurance Co. Ltd Reliance Insurance Ltd. Rupali Insurance Co. Ltd. Purabi Gen. Insurance Co. Ltd. Sandhani Life Ins. Co. Ltd. Bangladesh Co-operative Ins. Ltd. City Gen. Insurance Co. Ltd. Provati Insurance Co. Ltd Prime Insurance Co. Ltd Meghna Insurance Co. Ltd. Meghna Life Insurance Co. Ltd Pioneer Insurance Co. Ltd Mercantile Insurance Co. Ltd Bangladesh National Ins. Co. Ltd. Northern Gen. Ins. Co. Ltd. Homeland Life Ins. Co. Ltd. Golden Life Insurance Ltd. Nitol Insurance Co. Ltd 14

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

Standard Insurance Ltd. South Asia Ins. Co. Ltd. Paramount Insurance Co. Ltd Cotinental Insurance Limited Agrani Insurance Co. Ltd Islami Insurance Bangladesh Ltd Islami Commercial Ins. Co. Ltd. Global Insurance Ltd. Sonar Bangla Insurance Ltd Express Insurance Limited Asia Insurance Ltd. Republic Insurance Company Ltd. Crystal Insurance Company Ltd. The Loyeds Insurance Co. Ltd Sunflower Insurance Co. Ltd. Union Insurance Co. Ltd. Asia Pacific Gen. Ins. Co. Ltd. Progressive Life Ins. Co. Ltd. Desh Gen. Ins. Co. Ltd. Takaful Islami Insurance Ltd. Fareast Islami Life Ins. Co. Ltd Prime Islami life Insurance Co. Ltd Popular Life Insurance Co. Ltd. Pa Islami Life Insurance Ltd. Pragati Life Insurance Ltd. Rupali Life Insurance Co. Ltd. Sun Life Insurance Co. Ltd. Baira Life Insurance Co. Ltd.

Bangladesh Insurance Association Bangladesh Insurance Association was formed on 25 May 1988 under the Companies Act 1913. It is ed with the Registrar of t Stock Companies and has 30 . It aims at promoting, ing and protecting the interests and welfare of the member companies. Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. The surveyors are mainly responsible for surveying and assessing general insurance 15

losses and occasionally, for valuation of insurance properties, while the agents work to procure both life and general insurance business against commission. The system of professional brokers has not yet developed in Bangladesh. However, it is a common practice of the insurers to engage salaried development officers for promotion of their insurance business.

Bangladesh Insurance Academy Bangladesh Insurance Academy (BIA) established in 1973 in Dhaka by the government of Bangladesh to impart training to insurance professionals and others taking up insurance as a career. It is an autonomous body attached to the ministry of commerce. The management of the academy is vested in a board of governors formed by the government. The academy conducts various training programmes for personnel in the insurance industry, arranges seminars, symposiums and conferences on issues relating to the insurance business. The academy started functioning in early 1974 with 12 employees.

TOP INSURANCE COMPANIES IN BANGLADESH Sadharan Bima Corporation Sadharan Bima Corporation emerged on 14th 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.

Jiban Bima Corporation (JBC) Jiban Bima Corporation established on 14 May 1973 under the Insurance Corporation Act 1973 with an authorized capital of Tk 200 million divided into 2 million ordinary shares of Tk 100 each. The paid up capital of the corporation is Tk 50 million fully subscribed by the government. The corporation is engaged in life insurance business under the provisions of the Insurance Act 1938, Insurance Rules 1958, Insurance Corporation's Rules 1977, and related other laws enforceable in Bangladesh. JBC is working among the people of Bangladesh with two basic objectives: firstly, to cover the risks and raise savings habits among the people and secondly, create funds for the country’s economic development through innovative life insurance schemes.

American Life Insurance Company 16

Alico Bangladesh started full service branch operations in Bangladesh on 15 January 1974 and has since then been marketing individual and group life insurance products under the Insurance Act 1938, Insurance Rules 1958, and other applicable laws. American Life Insurance Company Bangladesh runs its business through its agency offices scattered mostly in big cities such as Dhaka, Chittagong and Khulna. Over 2700 career agents are working for the company. The company has a trained and dedicated work force of 223 employees in Bangladesh.

Peoples Insurance Company Limited provides insurance solutions in Bangladesh. The company offers fire, industrial risk, marine cargo, marine hull, motor, contractor’s risk, erection risk, machinery breakdown, deterioration of stock, boiler and pressure vessel, and burglary and housebreaking insurance solutions. It also provides cash-in-transit, cash-in-safe, cash-oncounter, public liability, personal accident, workmen’s compensation, goods-in-transit, comprehensive travel, overseas medi-claim, fidelity guarantee, and bank lockers insurance solutions. The company was incorporated in 1985 and is based in Dhaka, Bangladesh. The Peoples Insurance Company Limited is very proud to stand beside its customer and general people of Bangladesh when they are in disaster. The company is always a friend of it’s valued customer through its business responsibilities and of general people of Bangladesh through its corporate social responsibilities. Our board of directors leading both types of responsibilities includes veteran insurance personalities, industrialists, doctors, chartered ant, and business professions. The human resource team is educated in developed countries like USA, UK, Australia, and . The board of directors is chaired by Mr. Abul Basher Mukul, who is always dedicated to the company. Our vision Our mission is to reach at zenith point of providing quality service and hence achieving highest corporate goal and customer satisfaction. Our slogan is “manush manusher Janna” Our mission Our assignment is to produce value for shareholders all the way through customer, employee and general people satisfaction • • • • •

First private insurance company in Bangladesh A reliable insurance company in the insurance landscape in Bangladesh. Customers’ satisfaction is our main concern. We value our customer, we protect our customer. We provide the protection you need. 17

• • • •

Care for you forever To get you set soon again. Marches with time Celebrating 30 years of time

Future Plans The Company has undertaken various realistic future plans which amongst others include the following:• To computerize the entire operation system within the shortest possible time • To impart extensive training for the employees at home and abroad. Field force (100%) has to be properly groomed up. • To expand Company's operations to all commercially important places of the country gradually. • To introduce new products depending on the demand of the market. • To observing March as the "Client Service Month" in every year. • To follow "Service First than Business "by expeditious and judicious settlement of claim.

Capital Structure

Date of Incorporation

31 March 1985

Obtained Certificate for Commencement of Business

31 March 1985

ed with the Department of Insurance

31 July 1985

Authorised Capital

Tk. 50.00 Crore

Issued, Subscribed and Paid up Capital

Tk.15.00 Crore

Listing in Dhaka Stock Exchange

29 July 1990

Listing in Chittagong Stock Exchange

10 October 1995

Prospectus Issued for Floatation of Public Shares

16 August 1990

Amount of Public Subscription

Tk. 3.00 Crore

Registration of Land at 36, Dilkusha C/A,Dhaka-1000.(Measuring 16.85 Katha)

05 March 1998

Inaguration of 22 storied Building Construction work at 36, Dilkusha C/A, Dhaka-1000

09 June 1999

Bonus Share Issued @ 25%

In 2004

Bonus Share Issued @ 100%

In 2005

Listed with CDBL

4th July 2005

Rated by CRISL

A-BBB

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Corporate Social Responsibility (CSR) Peoples Insurance Company Ltd has been participating in Corporate Social Responsibility (CSR) continuously since its inception in various ways. As for instance, the company has developed a unique culture to help distressed peoples, environment, heritage, sports, education, employment and much more. A few of the corporate social responsibilities are as follows: •

•

•

• • •

After the natural disasters, we participate in various types of the activities for the reconstruction of the damaged infra-structures. Moreover, when the calamity is over, we try to take care of those who have lost their lives and their valued properties. We are always in favor of protecting our tradition and heritage. For example, our company always sponsors not only the sports which are our own, for example, Kabadi, Bali Khela, Lathi Khela etc. but also our non-traditional sports like football and cricket. Our company created a significant number of employment opportunities for the unemployment human resources since its inception. The effort for job creation will continue in future too. The company has a plan to provide scholarships for the needy brilliant students who want to make a career in the fields of technology and digital sciences. We have a plan to help the sick-aged people so that they do not consider themselves as a burden of our society. Finally, the company focuses on the welfare of the employees so that they can have the necessary skills and opportunities to face the challenges.

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Head Office Executives

S. N.

Name

Designation

1.

M. H. Khaled

Managing Director & CEO

2.

Nizam Mohammed Uddin

Additional Managing Director

3.

Mezbahul Karim

Deputy Managing Director

4.

Abdullah-Al-Mamoon

Deputy Managing Director

5.

M. Abu Bakar Siddique

Deputy Managing Director

6.

Sib Sankar Saha

Deputy Managing Director & CFO

7.

Md. Shamsul Haque Khan

General Manager-II

8.

Md. Abdul Wohab Khan

General Manager-II

9.

Md. Iqbal Hussain

General Manager-II

10.

Md. Shafrinoor Rahman

General Manager-II

11.

Md.Delower Hossain Chowdhury

Deputy General Manager

12.

Chowdhury Hamid Gaffar

Deputy General Manager

13.

S. M. Nasim

Deputy General Manager

14.

Md. Jahangir Alam

Deputy General Manager

15.

Md. Abdullah-Al-Mobin

Deputy General Manager

16.

Ashique-Ur-Rahim

Deputy General Manager

17.

Mir Zulfequr Rahman

Deputy General Manager

18.

Md. Sharifuddin

Deputy General Manager

19.

Asif Nur

Deputy General Manager

20.

Md. Azizul Haque Talukder

Asstt. General Manager

21.

Md. Kamaluddin Akunjee

Asstt. General Manager

22.

Anisul Mowla Ratan

Asstt. General Manager

23.

Md. Nurul Huda

Adviser(Marketing)

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Valued Customers LIST OF SOME OF OUR VALUED CLIENTS IN THE LAST 5 YEARS.

1.

The ACME Laboratories Limited

2.

Apex Foods Limited

3.

Apex Weaving & Finishing Limited

4.

Bashundhara Group

5.

BOC Bangladesh Limited

6.

Abul Khair Group

7.

DADA Corporation (Korean Enterprise)

8.

Echo Cotton Mills Limited

9.

Erba Group

10.

Fison's (Bangladesh) Limited

11.

Glaxo Smith Kline Bangladesh Limited

12.

Hotel Sarina, Banani, Dhaka

13.

Kader Synthetic Fibers Limited

14.

M.M. Ispahani Group

15.

MSA Spinning Limited

16.

Opex Group

17.

PHP Group

18.

Paxar Bangladesh Limited, EPZ, Savar, Dhaka

19.

Prime Group of Industries

20.

R.M. Group

21.

RAK Ceramic Industries Pvt. Limited

22.

Scholastica Group

23.

Sena Kalyan Sangstha

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24.

Shinepukur Holding Co. Limited

25.

Shanta Group, EPZ, Savar, Dhaka

26.

Siemens Bangladesh Limited

27.

Sinha Textile Group

28.

STS Holding (including Apollo Hospitals, Dhaka)

29.

Techno Textile Mills Limited

30.

Youngone Bangladesh Limited, EPZ, Savar, Dhaka & Patenga, Chittagong

31.

AA Synthetic Fibres Limited.

32.

Royal Thai Embassy

33.

Nandan Group

Snapshot of PEOPLES INSURANCE CO LTD (PEOPLE)

OPEN PREVIOUS CLOSE $56.00 $55.80 DAY HIGH DAY LOW $56.90 $54.70 52 WEEK HIGH 52 WEEK LOW 12/6/10 - $115.24 05/25/11 - $41.50 MARKET CAP AVERAGE VOLUME 10 D -516.4K EPS TTM SHARES OUTSTANDING -0.0 EX-DATE P/E TTM 04/12/11 -DIVIDEND DIVIDEND YIELD $0.48 0.86% K = Thousands M = Millions B = Billions

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Our Services Name of the Services 1.

Fire Insurance

2.

Industrial "All Risks" Insurance

3.

Marine Cargo Insurance

4.

Marine Hull Insurance

5.

Motor Insurance

6.

Contractor's "All Risks" Insurance

7.

Erection"All Risks" Insurance

8.

Machinery Breakdown Insurance

9.

Deterioration of Stock Insurance

10.

Boiler & Pressure Vessel Insurance

11.

Burglary & Housebreaking Insurance

12.

Cash-in-transit Insurance

13.

Cash-in-safe Insurance

14.

Cash-on-counter Insurance

15.

Public Liability Insurance

16.

Personal Accident Insurance

17.

Peoples's Personal Accident Insurance

18.

Workmen's Compensation Insurance

19.

Goods-in-transit Insurance

20.

Comprehensive Travel Insurance

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21.

Over-seas Medi-claim Insurance

22.

"All Risks" Insurance

23.

Fidelity Guarantee Insurance

24.

Bank Lockers Insurance

AchievementsBusiness & Statistical Information Since 2001 (Figures in Million Taka)

Particulars

2001

2002

2003

2004

2005

2006

2007

Financial Performance Gross

195.50 212.55 256.43

261.37

259.66

238.68

257.18

Net

135.81 139.60 150.61

145.93

111.62

137.62

163.30

Gross Claim

24.45

23.62

49.80

104.29

55.33

423.24

38.18

Net Claim

19.84

22.11

29.44

37.49

24.50

120.38

23.35

Underwriting Profit / (Loss)

24.46

32.95

33.07

31.88

31.22

(127.54) 0.32

Investment & Other Income

13.55

12.35

12.48

16.86

15.11

21.89

Net Profit /Loss) befor 36.50 Tax

43.92

44.20

47.05

3.27

(144.83) 193.00

Net profit / (Loss) after Tax

30.02

31.62

32.44

3.27

(141.49) 177.97

29.28

217.39

Share Capital & Reserve

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Paid up Capital

60.00

Shareholders Equity Reserve

60.00

60.00

60.00

75.00

150.00

150.00

185.01 198.76 213.82

228.42

204.56

279.58

295.91

124.80 138.76 153.82

168.42

129.56

129.58

145.91

Investment in Shares & Securities

17.41

17.83

25.73

25.25

27.62

Cash, FDR & Bank Balance

154.75 163.96 178.53

179.24

121.42

100.28

128.83

Land & Building

174.12 238.83 343.54

496.9

643.49

629.99

490.06

Other Assets

152.45

103.84

148.69

Total Assets

498.73 572.57 667.58

832.17

Dividend in Percentage

26%

27%

25%(stock) 100%(stock)

No 10% Dividend

Earning per share(EPS)

48.8

50.03

54.07

4.36

-96.55

118.64

800/673

673/270

548/180

Assets 17.41

18.1

152.40 127.41

138.20 94.72 885.36

859.36

795.20

Financial Analysis 25% 52.70

Highest/Lowest Market Price of Share

690/540 675/540 1850/800

Office and Location of Peoples Insurance Company Limited. Head Office Peoples Insurance Bhaban (15th Floor), 36, Dilkusha C/A Dhaka-1000, Bangladesh. Phone: 9564166, 7174203-4 Fax: 88-02-9564795 Email: [email protected]

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ELEPHANT ROAD BRANCH 91, New Elephant Road Dhaka Md. Alauddin Dulal General Manager -II KAWRAN BAZAR BRANCH 41/1, Kazi Nazrul Islam Avenue (Floor No. 3) Kawran Bazar, Dhaka-1215. Md. Shahnewaz Khan General Manager Recommendation:

Chapter # 05 5.1 Recommendation There must be scope for further developments: 1.

Introducing flexible working hours for the workers as that they can look after their personal problem during these flexible hours.

2.

Building a team of committed workers who strongly believe in the organizational goal.

3.

Deg insurance policies that include strict disciplinary action against all bad activities.

4.

Making the planning process more clear of the strategies, goals, action and operational plans in Peoples Insurance Company Limited.

5.

Scanning the national and international environmental for the competitive edge and technological advance in Peoples Insurance Company Limited.

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Conclusion

Peoples Insurance Company Limited is one of the leading insurance institutions in Bangladesh. Day by day Peoples Insurance Company is going upward. Peoples Insurance Company Limited is established in 1985. When we were doing this assignment, we got so much practical knowledge. This practical knowledge helps us lot to know about overall insurance company activities.

Bibliography

The information and data provided by the Peoples Insurance Company Limited is mainly used for this assignment. Basically Bibliography means to write down some book’s, web-sites & other name that help for doing this report but here we tried to write down our theoretical and practical knowledge along with the information of provided by Peoples Insurance Company Limited. The references which are used for prepare the report is given below: Books • M. N. Mishra (Insurance Principles and Practice) • Banglapedia • Peoples Insurance Company Limited Annual Report 2010 Internet Sources • www.Scribd.com • www.peoplesinsurancebd.com • www.investing.businessweek.com

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