1.1 Background of the Study
This report has been prepared as a requirement of the Financial Institution and Markets course. The report was based upon the insurance business of “Jiban Bima Corporation” in Bangladesh. We were duly approved by our Course Teacher Sheikh Tanzila Deepty. This report will help us know about the 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 premium, 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.
1.2 Objectives of the study
The research objectives regarding our term paper are –
▪ To fulfil the requirement of the course curriculum.
▪ To know about insurance business in Bangladesh.
▪ To identify the major prospective area of insurance in Bangladesh as follows o Social
▪ To identify what are the sources of fund.
▪ To know investment and income from investment.
▪ To find out utilizes of fund.
1.3 Rationale of the study
▪ The preparation of the report will enable to gather concept of the insurance business. ▪ We have learned what the products of insurance company are. ▪ To suggest necessary steps to develop this business in a developing country like Bangladesh.
The term paper will enhance our overall knowledge about insurance and help us further to prepare any documents regarding insurance. We think this term paper will also be beneficial for those people who need information about insurance especially for “Jiban Bima Corporation”.
1.4 Sources of data
Information collected to furnish this report is only from secondary in nature. The secondary information was collected from the different publication, and books. For collecting books and periodicals I have used the following links: AIUB Library,
Other Relevant Documents
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 JBC.
• Internet Books.
Preparing the term paper we have faced some obstructions which are: ▪ 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.
2. Profile of Institution
2.1 When Established
The Jiban Bima Corporation (JBC) is the lone state-owned life Insurance company in Bangladesh, which started its maiden journey on May 14,1973 with assets and liabilities worth TK. 15.70 crore (157 million) of defunct 37 life Insurance companies. Meanwhile, the life fund of Jiban Bima Corporation has shot up to TK. 577.3 crore (5773 million), the highest in industry, which was only TK. 21.83 crore (218.3 million) in 1973. JBC has paid TK. 755.4 crore (7554 million) against various claims, the highest such payments in the country’s life Insurance business. The JBC’s investment has reached TK. 578.25 crore (5.78 billion) from only TK. 19.7 crore...