A Report

On
National Life Insurance Company Limited.

Submitted To:-
Md. Anisuzzaman
Assistant Professor & Director of CCD,
Department of business administration,
Uttara University

Submitted By:-
Name ID Batch
MOHAMMAD ABDULLAH M21421111051 34th(B)
MD. SHADAT ISLAM SHAGAR M21421111096 34th(B)
MD. NAHID IMRAN M21421113004 34th(B)

Date of submit:- 03 April 2017

03rd April 2017
To
Md. Anisuzzaman
Assistant professor
Department of Business Administration
Uttara University

Subject: Letter of Transmittal

Dear Sir,

We hope you will be pleased to know that we have completed our report on a
renowned insurance company of Bangladesh. We hereby submit our report on
“National Life Insurance Company Limited.” At every segment of making
this report, we tried to enhance our knowledge about this Insurance Company.
This report will try to give the picture of our efforts and ability.

We hope that this report meets your expectation. We will be glad to answer any
queries regarding the study and report.

Sincerely yours
Mohammad Abdullah
Md. Shadat Islam Shagar
Md. Nahid Imran
 Acknowledgement
At fast we would like to thank almighty Allah for giving us to opportunity to
complete our term paper. We also would like to thank all the people who have
given their support and assistance and extremely grateful to all of them for the
completion of the report successfully.

We would like to thank Mr. /Mrs.___________, for their support in preparing

the report & providing relevant data.

We would also like to thank our honorable teacher Mr. Md. Anisuzzaman, for
his kind concern, advice and constant guideline in preparing the report.

We would like to express our foremost gratitude to other officials of National

Life Insurance Company Limited who helped and gave their valuable time,
providing with the most relevant information on the basis of which we have
prepared this report.
 Introduction
The insurance sector in Bangladesh is still in its adolescence. While less than
one per cent of the country's population is insured, the sector's contribution to
the economy is still below 1.0 per cent. However, an increase in awareness
about the necessity of insurance and a rise in the number of middle class and
higher middle class people indicate that the industry has the potential to grow.
Given that more than 99 per cent Bangladeshis are yet to be insured, the
possibilities of the sector's growth are seemingly endless. The growth of the
insurance sector in Bangladesh should be good news for the country's economy
on multiple levels. Early in Bangladesh, Jiban Bima Corporation (JBC) is the
state-run insurance provider in Bangladesh under the provisions of the
Insurance Act 1938, Insurance Rules 1958, and related other laws enforceable in
Bangladesh in Bangladesh Corporation Act 1973. The JBC started its maiden
journey on 14 May 1973 with assets and liabilities worth TK. 157 million of
defunct 37 life Insurance companies. Sadharan Bima Corporation (popularly
known as SBC) is the one and only state-owned non-life insurer and reinsurer in
Bangladesh under the Ministry of Finance, Government of the People's
Republic of Bangladesh. These were also created under the Insurance
Corporation Act (Act No. VI) Of 1973 of Bangladesh.

Currently, have 2 public sector insurance companies in Bangladesh. In addition,

have 45 non-life and 31 life insurance companies in the private sector. As the
industry grows, the demand for skilled professionals will rise. Young students
and professionals are often oblivious of the vast opportunity that awaits them in
the insurance industry.
Company Profile
The era of privatized insurers started in Bangladesh with the establishment of
National Life Insurance Company, the first ever private life insurance
company introduced in the People’s Republic of Bangladesh. It started
functioning on 23rd April, 1985 as a result of sheer perseverance, endeavor and
supervision of the founder chairman Mr. Alhaj M. Haider Chowdhury. The
company having 703 cores Premium income in the year 2012 with a hefty Life
fund of 2419 core happens to be a dominant insurer and is moving fast on a
new growth trajectory surpassing its previous records. The motto of the
company is to ensure a guarantee for a planned future. Three visions of the
company are- To encourage & induce saving of the high/mid income
population and especially of the low income & marginal group. To create &
provide employment opportunity for the illiterate, half literate and the literate
youth people of the country. Capital formation at national level for investment
to develop dynamism at macro-economy.

This company began operation with 11 staffs with a head office covering few
hundred sq. ft. of area at Segunbagicha, Dhaka; but today manpower enrollment
has reached more than 100,000 staffs and field forces covering about 1200
zonal, regional, branch and block offices all over the country. The head office of
the company is at the 'NLI Tower'- own high rise building at Kawranbazar, at a
significant artery point of Dhaka metropolitan. The company has also purchased
plots & lands at different Divisional & District head quarters. NLI set as the
sponsor director of Venture Investment Partners Bangladesh Ltd., National
Housing and Investment Ltd. and Industrial and Infrastructure
Development Finance Co. Ltd. Moreover, an NLI security Ltd. is a
subsidiary of NLI.
Companies Product
There have several insurance policies, which are shown in this diagram.

Individual (Akok bima) Life insurance that promises to pay a stated

amount to a designated beneficiary if the insured dies within a stipulated time or

to the insured himself if he survives refers to endowment insurance. Endowment
insurance is the most popular plan. It provides family protection as well as old
age provision at an affordable premium. This policy is suitable for all categories
of people. Individual Life Insurance offers the stable protection that you and
your family—and even your business—need in a constantly changing world. An
insurance policy's death benefit can be the difference between staying in the
family home, providing for higher education, keeping a treasured family
business or not. If you have someone or something that you want to protect,
Individual life insurance can help you accomplish that goal, regardless of your
current stage in life.
Our Individual Life Insurance policies are a powerful and flexible tool for
protecting you and those you love. It offers a number of options and features
that expand the ways you can be used, making you a more flexible and more
powerful financial resource.

Different Policies:

Some policies can help pay for you or your survivors' long-term care
1.
expenses.
Some policies provide features that help prevent the policy from ending
2.
prematurely if you become unemployed.
Some policies that build “cash value” over time can allow you to take
3. supplemental income from that value. That income can be used for
unexpected expenses or other needs.
Some policies allow you to cover additional people, such as your spouse or
4.
children, all in one policy.
We have different types of Individual Life Insurance ranging from simple and
basic to having more features to address different needs. Find the right types
and amount of coverage that would work for your situation.

Group Insurance: Group Insurance is an instrument for providing life

insurance coverage (protection) to a number of individuals under a single

contract (policy) who are associated together for a common interest other than
insurance. It is the most cost effective means to provide immediate financial
support to an insured member and/or his family in case of devastating events
like-death, disability, disease as well as retirement. Group Insurance has already
established its importance as a component of “Employee Benefit Package” in
Bangladesh.

Exclusive features of Group Insurance are:

1. Insurance coverage to a number of individuals under a single contract
2. Simple insurable conditions.
3. Easy administrative procedure
4. Prompt claim settlement
5. Affordable premium
6. Tax exemption on premium

Supplementary Covers:
To provide insurance protection against few devastating conditions other than
death, and to enhance insurance benefit in case of sudden accidental death,
several Supplementary Covers are offered along with basic schemes.
Supplementary covers includes:
Accidental Death Benefit (ADB): Provides for double sum assured in case of
accidental death.
Permanent and Total Disability Benefit (PTD): Provides for full sum assured
on happening of defined risks.
Permanent & Partial Disability Benefit (PPD): Provides for certain
percentage of the sum assured as per schedule on happening of the defined
risks.
Dismemberment Benefit (DB): Provides for a certain percentage of Sum
Assured as per schedule on happening of the defined risks. It is only offered
with ADB.
Major Disease Benefit (MDB): Provides for 20%, 25% or 50% of S.A. upon
diagnosis of a few specific life threatening diseases

Group Hospitalization Plan:

Health Insurance is now considered indispensable in developed countries. In the
present financial-social perspective of Bangladesh as well, Health Insurance has
now become an essential, dependable, acceptable and the most cost effective
means to make the modern treatment facilities affordable to all socio-economic
classes of people, especially the fixed income group.
National Life Insurance Company offers Health Insurance schemes, which are
as follows:
Hospitalization (In-patient) treatment coverage plans
Hospitalization Insurance Plan (Group)- offered to Members of a group and
their dependants (if desired)
Expenses Covered under Hospitalization Insurance Plans:
* Hospital Accommodation
* Consultation Fee
* Medicine & Accessories
* Medical Investigations
* Surgical Operation and
* Ancillary Services like Blood Transfusion, Ambulance Service, Dressing etc.

Islamic Takaful: Islam is the complete way of life and there is always

an Islamic solution for any course of dispute. For those who don’t want to take
up an insurance policy having a dilemma in their mind, National Life Insurance
offers them a variety of Islamic insurance products under the banner of
NATIONAL LIFE ISLAMI TAKAFUL. The calculation of premium and funds
of ISLAMI TAKAFUL are done separately from the basic account of the
company. AL-MUDARABA or PA (participant’s accounts vis-a-vis Amanat
fund) is invested in shariah permitted sectors. Just after receiving premium it is
divided into two parts naming- PA (Amanat fund) and PSA (Tabaru fund). On
death within policy term the nominee of the policy holder gets the amount from
PA (Amanat fund) with selected profit according to the profit and loss system.
Under this have several policy, like are DENMOHOR BIMA, HAJJ BIMA,
one/ two or four payment ENDOWMENT.

Janabima: The population in Bangladesh is predominantly rural, with

almost 80% of the population living in the rural areas. Almost one third of the
population lives below the poverty line and a significant proportion of them live
in extreme poverty. The poverty rate is highest in rural areas, at 36 per cent,
compared with 28 per cent in urban areas. Moreover, a large portion of the
population of Bangladesh, about more than 70%, is low income people.
In keeping with our vision of ‘to encourage & induce saving of the high/mid
income population and especially of the low income & marginal group’
National Life is committed to providing even the poorest members of society
the chance for a better tomorrow. For this reason, National Life introduce
micro-insurance project named Janabima. Products under Janabima, which
simplify the product offerings and provide financial security, are specially
designed to meet the needs of low income groups by offering benefits like low
premiums, simple policy terms and low sum assured etc. Janabima is important
because it is affordable to a person who cannot afford a normal insurance
policy.

NPDI: National pension deposit insurance, People with minimal income

can easily take up this policy. Pension is a form of financial independence at old
age. It is a great deal of help to the elderly people to remain self-sufficient.
Pension insurance mitigates the insecurity due to irregular income at old age as
well as ensures handsome amount as death benefit to the nominee.

Benefits:

On survival of the policy holder sum assured with accrued bonus is payable
or after maturity policy holder can decide to receive monthly pension from
1.
the date of maturity against the amount of sum assured payable. The
duration of pension is 5 or 10 years.
On death of the policy holder after paying the first premium and receiving
2.
the policy, the nominee is payable total sum assured with accrued bonus.
If a policy holder wants to surrender the policy after running the policy for
3. two years then he will get the money after deducting service charge from
the payable amount.
Companies Specialty:
National Life Insurance Company, the first ever private life insurance company
introduced in the People’s Republic of Bangladesh. It started functioning on
23rd April, 1985. As a service industry, the company is committed to
personalized service to its valued customers and will justify their confidence by
prudent and viable economic management and offering absolute security and
favorable returns.

NLI delivered the success in business achievements, competency in

management and befitting growth judged by any standard. The company has
grown & developed massively & substantially over a period of about 28 years.
It has earned name & fame along with premium for the services it provides to
the policy holders. Since beginning, it has focused on policy holders'
satisfaction for the type, quality & promptness of the services. The company has
diversified its products to match customers' needs & preferences.

Currently it provides multifarious life assurance products to cater the

aspirations & needs as well as religious beliefs of the clients.

Janabima is an exclusive product of National life insurance. A large portion of

the population of Bangladesh, about more than 70%, is low income people; it is
wide open for at least 70 percent of the low income people in Bangladesh who
involve themselves in this policy. National Life introduce micro-insurance
project named Janabima. Products under Janabima, which simplify the
product offerings and provide financial security, are specially designed to meet
the needs of low income groups by offering benefits like low premiums, simple
policy terms and low sum assured etc. Janabima is important because it is
affordable to a person who cannot afford a normal insurance policy.
Conclusion:
Early in past, condition of insurance sector is not so good. But day by day yet it
is still growing up or doing improves with the demand of our economic activity.
In past people are not aware about this matter and not to trust easily on an
insurance company, insurance companies had also failure to build-up trust
among the customers. But toadies scenario is changed, Insurance companies try
to build-up their trust level among the customer with provide quality service,
Among the countries people, Knowledge or awareness are also increased day by
day with educational level increases.

Bangladesh insurance market is still small with a combined life and non-life
insurance market premium of US $960 million. The industries ranked 76th in the
world with a paltry 0.02% share in the global insurance industry. Per capita
insurance spending is only US$ 2.6. Insurance penetration (premium as a % of
GDP) remains low at 0.9% (0.7% for life insurance and 0.2% for non-life). The
average growth of non-life insurance companies was 12%, and life sector grew
at an impressive rate of 26% over last few years.

While the global insurance market declined, Bangladesh has seen a visible
growth over last few years. Growth in the industrialized countries was 2.8% for
life and 0.6% for non-life insurance; however, emerging markets grew at a rate
of 4.2% for life and 2.9% for non-life insurance sector.

So it can say that scenario of Insurance sector in Bangladesh will definitely

improved in near future.