1 Introduction to Insurance: We read our daily newspapers stories about people being involved in road accidents, of aero planes crashing, buildings burning down, theft of goods, peoples being injured at work and many other mishaps. Behind each story lies a measure of Personal tragedy and anxiety for those closely involved. Yet behind each one is also the vast, sophisticated mechanism of Insurance. From an individual point of view, insurance is an economic device whereby the individual substitutes a small certain cost (the premium) for a large uncertain financial loss (the risk insured against) which would exist if it were not for the insurance Contract. The primary function of insurance is the creation of the counterpart of risk. Which is security? Insurance does not take away the risk. The insurer does not guarantee that the event insured against will not happen. Whatever good the management and staff, losses do occur. The “Titanic” was unsinkable and yet was lost in the very first voyage. Plants can be operatedfor many years without accident and then be totally destroyed by Fire. The house may still burn down, the car may still beinvolved in an accident but at least a large element of the cost involved will be met by the insurer. History to Establish in Insurance Company: General Insurance in Bangladesh: Before the independence 49 insurance companies were functioning most of those were owned by either Pakistanis or by other foreign nationals. After the independence of Bangladesh Government nationalized all the insurance business which were operating in Bangladesh, mostly owned by West Pakistanis and formed the subsidiary corporation‟s one for General Insurance and other for Life insurance business under the controlling corporation the Bangladesh JatiyaBima Corporation. Later in 1973, SadharanBima Corporation was formed for transacting all General Insurance business and JibanBima Corporation for Life Insurance business. To bring efficiency into the sector and to provide quick services with better customer care, Government passed a law in1984 allowing the formation of Private General Insurance Companies. SadharanBima Corporation was given the monopoly to underwrite the business of public and private sector both. MoreoverRe-insurance of Private sector companies was made mandatory with SadharanBima Corporation. The Premium rates in Bangladesh are not yet opened up and are based on Tariffs prepared by the Central RatingCommittee headed by the controller of insurance, Government of People‟s Republic Bangladesh. All are bound to follow the Tariffs.
16
Embed
Marine Insurance of Pioneer insurance company ltd.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Introduction to Insurance:
We read our daily newspapers stories about people being involved in road accidents, of aero
planes crashing, buildings burning down, theft of goods, peoples being injured at work and many
other mishaps. Behind each story lies a measure of Personal tragedy and anxiety for those closely
involved. Yet behind each one is also the vast, sophisticated mechanism of Insurance.
From an individual point of view, insurance is an economic device whereby the individual
substitutes a small certain cost (the premium) for a large uncertain financial loss (the risk insured
against) which would exist if it were not for the insurance Contract.
The primary function of insurance is the creation of the counterpart of risk. Which is security?
Insurance does not take away the risk. The insurer does not guarantee that the event insured
against will not happen. Whatever good the management and staff, losses do occur. The
“Titanic” was unsinkable and yet was lost in the very first voyage. Plants can be operatedfor
many years without accident and then be totally destroyed by Fire. The house may still burn
down, the car may still beinvolved in an accident but at least a large element of the cost involved
will be met by the insurer.
History to Establish in Insurance Company:
General Insurance in Bangladesh: Before the independence 49 insurance companies were functioning most of those were owned by
either Pakistanis or by other foreign nationals. After the independence of Bangladesh
Government nationalized all the insurance business which were operating in Bangladesh, mostly
owned by West Pakistanis and formed the subsidiary corporation‟s one for General Insurance
and other for Life insurance business under the controlling corporation the Bangladesh
JatiyaBima Corporation.
Later in 1973, SadharanBima Corporation was formed for transacting all General Insurance
business and JibanBima Corporation for Life Insurance business.
To bring efficiency into the sector and to provide quick services with better customer
care, Government passed a law in1984 allowing the formation of Private General
Insurance Companies.
SadharanBima Corporation was given the monopoly to underwrite the business of public
and private sector both. MoreoverRe-insurance of Private sector companies was made
mandatory with SadharanBima Corporation.
The Premium rates in Bangladesh are not yet opened up and are based on Tariffs
prepared by the Central RatingCommittee headed by the controller of insurance,
Government of People‟s Republic Bangladesh. All are bound to follow the Tariffs.
2
Effective Insurance Legislation in Bangladesh:
2 THE INSURANCE (AMENDMENT) ORDINANCE, 1984 (Ordinance No. L of 1984)
The Government of the People‟s Republic of Bangladesh allowed Private Insurance
Companies to operate on 11August, 1984.
THE INSURANCE CORPORATIONS (AMENDMENT) Act, 1990
50% Public Sector Business was allowed and distributed to Private Insurance
Companies by SBC with effectfrom 13 February, 1990.
Private Companies were allowed to do 50% reinsurance with SBC and 50%
outside SBC with effect from 13th
February, 1990.
Payment of Commission to the Agents prohibited from 13 February 1990.
THE INSURANCE (AMENDMENT) Act, 1993
Payment of Commission to the Agents as per Insurance Act, 1938 reintroduced from 14
March 1993.
Pioneer Insurance Company profile:
Pioneer Insurance Company Limited, sponsored & founded in 1996, is a publicly traded
company by shares having authorized capital of Tk. 1 (One) Billion & paid up capital of Tk.
353.44 million. The Company is enlisted with Dhaka Stock Exchange and Chittagong Stock
Exchange and has been declaring dividend every year since inception. The Company has been
assigned “AA” by Credit Rating Information and Services Limited of Bangladesh. AA rating
stands for “very high claims paying ability. Protection factors are strong. Risk is modest, but may
vary slightly over time due to underwriting and/or economic conditions.
Current Chairman Mr. TapanChowdhury, Managing Director, Square Group & Ex-Adviser of
the Care Taker Government of People‟s Republic of Bangladesh, former Chairman Mr. M
AnisUdDowla, Chairman, ACI Limited, former Chairman Mr. Syed ManzurElahi, Chairman
Apex Group & Ex-Adviser of two Care Taker Governments of People‟s Republic of Bangladesh,
former Chairman Mr. A.K.M. Rahmatullah, Member of the Parliament & Managing Director of
Apex Tannery Ltd. are the most successful business entrepreneurs of the country.
The company has a good number of dedicated and highly professional employees supported by
qualified, experienced & technically sound executives. The Managing Director of the company,
Mr. Q.A.F.M. Serajul Islam who is a holder of Diploma in General Insurance from Bangladesh
Insurance Academy, has long experience in Insurance and Reinsurance. Prior to joining the
Company he was Deputy Managing Director of Pragati Insurance Ltd. and Deputy General
Manager of SadharanBima Corporation.
3
COMPANY AT A GLANCE:
Established 1996
Registered Head Office Symphony(5th
Floor),
Plot # SE(F), 9 Road # 142, South Avenue, Gulshan-1,