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. Since the emergence of Bangladesh as an independent nation, insurance industry was nationalized along with banking and other major industrial sector. At the initial stage of nationalization of insurance industry, five government owned insurance corporations including one controlling corporations were steps. Sadharan Bima Corporation was established as the sole insurer for the general insurance Business in Bangladesh. Under the challenging world economic condition during many times SBC remains in a strong financial position. Despite the world economic recession the SBC continued progress in different areas of the business.
1.1 Objective of the report
The main purpose of this report is to have a clear idea about the growth of general insurance company – a case of Sadharan Bima Corporation.
1.2 Methodology and Data Collection
Of the two ways of data sources (primary and secondary) we have used only secondary sources as follows:
• Text books,
• Investigation report,
• Previous researches related to the topic,
• Journals, newspaper, indices data and
• Electronic sources (Internet)
1.3 Scope of the report
The reader of the report will discover the following area after reading this report:
➢ Proper and right knowledge about the insurance business in Bangladesh. ➢ Practical knowledge about when the risk management and distribution system. ➢ The conditions under when claims are considered and the process of meeting claim. ➢ Their revenue, expenditure, profit, business policy, social work etc. ➢ Their development year by year.
➢ Knowledge about reinsurance business.
➢ Their respond to different parties.
➢ Importance and necessity of insurance in different sector.
1.4 Limitations of the report
Giving description on the growth of general insurance company – a case of Sadharan Bima Corporation needs vast research and wide range of information due to the complexity of the financial sectors. The time provided to complete the report is very short. We did not get enough time to prepare this report properly. Although we, all the group members gave utmost effort to complete this report within reasonable time. Because of time limitation there may exists some errors. We had to face a lot of difficulties to collect required data and information. Information is not sufficient for us in the related website. Moreover, due to our limitation of intellect we may not have discussed some aspects properly. Yet, we hope we have rendered as much information in the report as required.
2.0 History of Insurance Company of Bangladesh.
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 organizations 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 Jiban Bima Corporation, and Surma Jiban Bima Corporation.. 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. After 1973, general insurance business became the sole responsibility of the Sadharan Bima Corporation. Life insurance...