Case Study of Insurance in Bangladesh

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Executive Summary
Insurance is used in almost every facet of life, ranging from vehicle insurance, life insurance, medical insurance, marine insurance, fire insurance, dental insurance to even boat or ATV insurance. When you with to obtain insurance for a certain item, you must agree upon a premium that you must pay each month. In Bangladeshi perspective, Insurance is not new here. Some insurance company formed up here during the British rule in India. At that time, 49 insurance business companies started their insurance policies in this region. The Government of Bangladesh (BD) nationalized the insurance industry in 1972 by the Bangladesh Insurance (Nationalization) Order 1972. From then many different insurance companies are providing acceptable policies to the insurance holders. Prime Islami Life Insurance Limited is one of the pioneers in this business. It formed in 24th July,2000. Till then the company is rendering service to its customers. Currently the company is providing 4 different types of insurance policies which are widely accepted by the people. The company is working hard to attract mass people to make insurances so that they can minimize the risks as much as possible.

Table of Contents
Content| Page|
InsuranceHistory of Insurance in BangladeshAdvantages of InsuranceDisadvantages of InsurancePrime Islami Life Insurance LimitedCompany ProfileInsurance Policies * Ordinary Life Insurance * Islamic Endowment Assurance Plan (Hajj Bima) * Assurance Cum Pension and Medical Benefit Plan * Child Protection Assurance Plan –with profitReference| 0304-0506-07070809-1011-1416-171818-1919|

Insurance
Insurance is one of the most important and one of the most complex financial aspects that is still used in almost every facet of life in almost all countries. Insurance is simply having something insured if something were to go wrong – you can insure a variety of things, ranging from your vehicles to even your own life. There are a variety of reasons why you would want to insure something – maybe you value it and want to keep it safe, or you want a monetary reward if it gets damaged.

Insurance is a form of risk management that is used to protect against the risk of monetary loss or damage. The textbook definition is “the equitable transfer of the risk of loss, from one entity to another, in exchange for payment.” To put it in simpler terms, you make monthly payments on your insurance policy, and if something happens to go wrong you will not be liable for the loss. There is a cost benefit analysis that must be performed to see if something is worth insuring in the first place or if it is better to leave it up for chance.

Insurance is used in almost every facet of life, ranging from vehicle insurance, life insurance, medical insurance, dental insurance to even boat or ATV insurance. When you with to obtain insurance for a certain item, you must agree upon a premium that you must pay each month. Your premium is determined by a variety of factors, but namely the cost of the item you want to insure and how prone it is to damage or loss. You essentially form a contract which is known as the insurance policy – if you item is damaged or lost, you will be compensated for the amount as outlined in your insurance policy.

History of Insurance in Bangladesh
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 premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. Insurance is not a new business in the Bangladesh it almost a century back, during British rule in India, some insurance companies started transacting business operation , both life and general, in Bengal. Insurance business enlarged momentum in East Pakistan during 1947-1971, when there are 49 insurance companies transacted their business...
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