Activities of Delta Life Insurance Company Limited

Internship ReportOn

“Overall Activities of Delta life Insurance Company Limited”

Submitted by

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The internship program is an integral part of the BBA program that all the students

have to undergo of Northern University, Bangladesh. The students are sent to various

organizations where they are assigned to one or more projects. At the end of the

program, the internships are required to place the accomplishments and findings of

the project through the writing of the internship report covering the relevant topics.

During this program, Supervisor guides each student – One from the university and

the other from the organization.

This report is the result of a 3 months (March 8-2009 to June 8- 2009) internship

program in Delta life Insurance limited, this report contains introduction about the

report in chapter one to chapter seven. The topic of the report has been consulted and

directed by the internship supervisor from Northern University, Bangladesh.

1.1 Objectives of the Report:The main objectives of this report are:

To know the activities of ordinary life Insurance.

To know the activities of Gono-Grameen Bima

To know the activities of Grop &Health insurance.

To know the product offer by Delta life insurance company.

To learn the various types of Accounts of Delta life insurance company.

To learn the customer’s perception about insurance.

1.2 Methodology:The report is prepared on the based of secondary data thought I also collect some

primary data from primary sources. Following ways I collect my data:

1) Secondary source and

2) Primary source


Secondary sourcesDifferent manuals regarding policy issues published by Delta life.

Annual report of Delta life.

Files and Folders.

Memos and circulars.

Website.

Primary sourcesPractical desk work

Face to face conversation with the officer.

Direct observations.

Face to face conversation with the client.

1.3 Scope of the study:

To fulfill the objectives of my study, the employees of Delta life Insurance Company

Ltd helped me a lot. People of each department have assisted me a lot by devoting

their time and showing their general and even confidential documents. Their

incredible support creates a great scope for me to prepare this report. This report will

provide at least a minimum understanding about the insurance business in

Bangladesh.

1.4 Rationale of the study:

We know that banks play an important role not only countries economy but also

contribute its overall economical development such as capital formation, investment,

industrialization, growth of trade and commerce. That’s why I have chosen the topic

which is “overall Insurance activities of Delta “which describes how Delta performs


to satisfy their customer. I think the topic help me to understand the how take risk

Insurance.

1.5 Limitations:Insurance sector is very sensitive and competitive by its nature. So data of this report

is not available and the interviews might not disclose accurate facts and figures

about Accounts and other activities. However I faced the following problems during

the study.

1 Insufficiency of valuable data and information.

2 Lack of proper books, journals etc.

3 Lack of experience.

4 Lack of time and resource.

5 Lack of perfect co-operation of some employees.

Chapter – Two


Organizational Profile

Background of Delta life insurance:Delta Life Insurance Co. Ltd. established mainly through the initiative of a group of

Bangladeshi professionals then working abroad along with a few enthusiastic local

entrepreneurs, started its operation in December, 1986 after the Government of


Bangladesh allowed the private sector to operate in the insurance sector in 1984 to

carry on the business of insurance in the Private Sector.

A brief explanation as to the growth of life insurance business in Bangladesh is in

order here. Bangladesh declared independence from the Pakistani rules on March 26,

1971 following which she had to witness a bloody liberation struggle with the

occupation forces lasting for 9 months before they were defeated. Insurance business

which was exclusively carried on in private sector before independence was

nationalized after liberation in 1972 primarily to address the emerging situation of

eroding public confidence in the industry that was left staggeringly short of resources

in the face of huge losses caused by the war of liberation. After a series of

experimentation, a state-owned body, namely Jiban Bima Corporation (JBC),

established in May, 1973 for transacting the life insurance business, took over the

assets and liabilities under life portfolios of all erstwhile private insurance companies

and started business in its own name.

However, things did not improve; rather, in many respects became more exacerbating

and the Government then thought it better to allow private sector participation in

insurance business. Since inception, Delta Life set before itself a high standard of all

round performance coextensive with professional soundness and proficiency. It soon

made a mark in the life insurance arena by not only being the leader among the

private sector indigenous companies, but by undertaking and successfully

implementing innovative and welfare oriented life insurance schemes. It introduced

an array of conventional life and group insurance products - many of which were the

first in Bangladesh.

For the first time, health insurance products were also introduced by Delta Life. But

more importantly, in fulfillment of the avowed commitment towards social

development, Delta Life for the first time not only in Bangladesh but probably in the

World, devised and introduced micro-life insurance-cum-savings products specially

suited to the needs and pockets of poor people of the country who constitute more


than 80% of the people of Bangladesh.

Two projects of the company namely Grameen Bima for the rural people and Gono

Bima for the poor and marginal savers of the urban areas were initiated to devote

themselves exclusively to marketing and management of these innovative products.

We are happy to report that we have achieved a good measure of success although

there is a long way to go. These schemes that we have introduced have created great

stir and enthusiasm among the general mass who, before these projects started

functioning, could not even dream of owning a policy that provides the much needed

life insurance coverage along with facility of regular savings on a long-term basis. At

a later stage i.e. in the year 2002, the projects were merged into a division of Delta

Life, namely, Gono-Grameen Bima Division. The GNGRB Division has been

growing at a first rate of more than 25% p.a. for the last couple of the years and is

poised to maintain this growth rate at least in the next five years or so.

Delta Life can take pride in moulding the saving habits of the lower and middle class

people and transforming them into prospective policyholders. The potential is now so

strongly perceived that all life insurance companies - old and new alike - operating in

the country have started own micro insurance products.

Background of the Delta Life Insurance Company Limited

At a glance

Facts and figures about Delta Life Insurance Company Ltd.Year of establishment of the company : 1986 Founder Chairman and Managing Director : Late Shafat Ahmed Chowdhury Present Chairman : Mr. Syed Moazzem Hussain


Present Managing Director : Mr. Das Deba Prashad Present Deputy Managing Director : Mr. A B M Saiful Haque First Policy Issued : December 17, 1986 Introduction of Grameen Bima : December 1988 Introduction of Gono Bima : October 08, 1993 Delta BRAC Housing : September 08, 1996 Delta Care Hospitalization Plan (Group) : October 19, 1996 Introduction of Health Insurance : December 04, 1999 Merging of Gono and Grameen Bima : January 04, 2003 Establishment of Delta Insurance Institute : March 07, 2006

Delta Life’s Present Workforce*:Head office and ordinary life = 1200 Gono-Grameen Bima = 2121 Development = 21679 Total = 25000

Division of Delta Life Insurance Co. Ltd.


Division

Ordinary Life Insurance: Delta Life offers a wide variety of ordinary life

product/plans ranging from the most common endowment type to more modern and

sophisticated plans like endowment with open term, pension plan with built in

provision for increasing pension, increasing protection with provision for premium

refund etc. The plans have been designed keeping in view the diverse and

multifaceted needs of the insuring public belonging to different strata of the society.

Some of the popular plans are briefly described below.

Gono-Grameen Bima:Delta Life first launched Micro-insurance product in 1988 through its Grameen Bima

Project (GRB) to cater to the necessity of economic protection against premature

death and of disability as well as providing a way for regular savings for the poor and

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Gono- Grameen

Group & Health Insurance

9

Ordinary Life Insurance

low income group of people living in villages. Later it started another project in 1994,

namely, Gono Bima (GNB) for the urban poor and the low income class. These

projects are now merged under the name of Gono-Grameen Bima Project (GN-GRB).

Group Life 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

Health Insurance

Health Insurance is now considered indispensable in developed countries. In the

present finance 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.

As pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers

several Health Insurance schemes, which are as follows:

Goal of Delta Life Insurance Company Ltd:

o Provide financial security to our customers with insurance policies that are most suitable for them.

o Make life insurance an easy saving instrument &A profitable one with attractive bonus& improved customer service.


o Collects small saving from the people of our country &invest the accumulated saving in profitable nation building enterprises.

Vision of SIBL:o We will be the premier life insurance company in Bangladesh.o We will serve our customers with respect will provide the best solution for

their needs.o We will be a company with qualified professionals who work together as a

team& serve with dignity &the highest level of integrity. We believe in excellence &will continuously improve our customer service & will obtain the loyalty customers with service beyond their expectation.

o Adding value will be the operative words of our organization.

Values-Truest

o Team work

o Respect for all People

o Unquestionable integrity

o Excellence in every thing we do

o Speed in servicing

o Truthful

Structure and Function of the Organization

Management Hierarchy Sponsors and Director


Management Hierarchy:

Board of Directors: Chairman Managing Director

Mr.Monzurur Rahman Mr. Das Deba Prashad


Managing Director (M.D)

Additional Managing Director (A.M.D)

Executive Vice president (E.V.P)

Vice president (V.P)

Senior Vice president (S.V.P)

Senior Assistant Vice president (S.A.V.P)

Assistant Vice president (A.V.P)

Senior executive Officer

Executive Officer (E.O)

Directors

Dr. Syed Mukarram AliDr.Muhammad Raushan AliMr.Mohd. Syedul IslamMr. Nurul HudaMrs. Fahmi R NaserMrs. Farida R. AhmedMrs. Farida MostafaDr. Nasiruddgn AhmedDr. Sadiqur Rahman MalikMr. Mahmud HasanMr. Habibur Rahman KhanMr. Borhanuddin AhmedMr. Arif AhmedMr. Md. Nurul IslamMr. Kazi Fazlur RahmanMr. Golam SarwarMs.Adeeba RahmanMrs. Syeda Soyeli AhmedMr. Syed Moazzem HussainMs. Anika RahmanMs. Saika RahmanMr. Aziz AhmedMr. Abdul WahabDr. Kazi Aynul HoqueMr. Zeyad RahmanMr. Kazi Imran F. RahmanMr. Kazi Taufick F. RahmanMr. Md. WahiduddinMr. S. M. Kamrul HaqueMr. Abdul Quayum KhanMr. Syed Abu Saleh Md. FaisalMr. Kiron Moy DattaMr. M. Jashimuddin ChowdhuryMr. Anwar QuayyaimMr. Md. Joynal Abedin


Chapter – Three

C

Internship Duties & Responsibilities


Internship Duties and Responsibilities:I have tried my level best to utilize the time. The time, which I spent to make the

report, are given below.

Head office and ordinary life Accounts

Gono-Grameen Bima Accounts

Internship Position and Duties:I have joined in Delta life Insurance company Limited as an internee on 8 th March

2009. My internship period was three months (From8th March to 8th june) and these

three months I worked in the corporate head office of the company which is located at

the motijheel.

In my internship period I tried to learn several functions from different departments

of the company. But as my major subject is finance so I gave much emphasizes on

learning Finance & Accounting related tasks. The Finance & Accounts department of

Delta life insurance company Limited is a wide area & the rage of the tasks is also

large .So it was not possible for me to practically learn all the tasks within the limited

internship program duration (Three months). However, below I mentioned my work

experiences.

I have stated my duty from Head office Accounts under Mr. Mustafa Jamal Hossain

ACA which is mainly the accounting section.


The functions I performed here ware-

Checking the cheque payment Vouchers. Then, writing those records

in a large cheque book and the deposited money in bank .After the end

of every month, I calculated the total cheque expenditures.

Preparing a summary sheet taking all the major categories of cheque

expenses.

Recording those cheque expenses data in computer using the

company’s specific accounting software.

Preparing Bank Reconciliation Statement.

Checking the cash payment Vouchers.

Gradually I worked with the other personnel of Finance & Accounts department, and

underwriting personnel. Though I gave more concentration on finance & Accounting

related tasks but I had also great interest on the marketing department of the

company. The main reason behind this was, thought this report I tried my level best to

identify the satisfaction of the customers’ about the company’s service. So I needed to

learn marketing strategies followed by the company, advertising procedures,

maintaining relation with clients etc. The other reason was I have found that the

marketing policy of an insurance company is totally different from the marketing

policy of other companies. And most of the customers do not know what types of

financial coverage they are taking. So, I felt very interest that how the company

handles these customers. All the marketing employees stay outside to meet with their

clients as well as to capture clients and it was not possible for me to do such types of

marketing task. However, I tried to know their marketing strategies from oral

discussion and meet with clients during personal interview.


Chapter 04

Overall Activities of Delta Life Insurance Company Ltd


We Know that Delta Life Insurance Company has three division. Now, we discus

Product of every division.

Ordinary Life Insurance: : Delta Life offers a wide variety of ordinary life

product/plans ranging from the most common endowment type to more modern and

sophisticated plans like endowment with open term, pension plan with built in

provision for increasing pension, increasing protection with provision for premium

refund etc. The plans have been designed keeping in view the diverse and

multifaceted needs of the insuring public belonging to different strata of the society.

Some of the popular plans are briefly described below.

I. Endowment plan with and without profits (Tables-01 & 41*) the most common and widely popular, this plan provides for a fixed sum at end of a particular term or at earlier death of the assured. The plan is available under both options i.e. with profit (Table-01) and without profit (Table-41). This is a straightforward coverage allowing a person to plan his future needs for security and projected savings through means of insurance eds. for security and projected savings through means of insurance. II. One-two-three endowment plan with profits (Table-02) provides for high

security at earlier death of the assured before expiry of term (10 & 20 years) or the

sum assured at expiry of the term. The plan provides for double the sum assured at

premature death due to illness or treble the sum assured if death occurs directly as the

result of an accident along with accrued bonuses till death or maturity as the case may

be.

III. Installment payment plans with or without profit:

a) Three payments plan (Tables-03, 43*) Given for terms like 12, 15, 18, 21 years

with or without profits this plan provides for one fourth of the sum assured upon

expiry of each one third of the term and on death at anytime within the term the full

sum assured - payment of one or all the installments notwithstanding. In case of


survival to the end of the term remaining portion of the sum assured along with

profits is paid after deducting the installments already paid.

b) Bi-annual payment plan (Tables-04 & 44*) - is given for 10, 15 & 20 years' term

and provides for payment of a portion of sum assured bi-annually after expiry of the

4th year of the policy, if the policyholder is then living.

IV. Premium back term Insurance plan without profits (Plan Nos: Tables - 57A, 59A & 65A): These are comparatively low cost plans. These plans provide for payment of sum assured in case of premature death within the term or refund of all premiums paid at end of term (Table-57A). Under Table-59(A), sum assured keeps on increasing at 8% p.a. on each successive policy anniversary and such increased sum is paid at death during the term. On survival up to the end of term, all premium paid during the term is paid.

Under Table-65(A) a guaranteed profit equal to 10% of sum assured is paid

along with full premium at end of term as survival benefit. On death before

maturity, the sum assured is payable.

V. Pension Plan (Table-72A, 72D) without profits. Under plan (Table-72A) pensions

are provided at quarterly intervals from an age designated by the policyholder for life,

guaranteed for a minimum period of 10 years i.e. if the pensioner dies anytime within

10 years his designated nominee will get pension for remaining term of 10 years.

Before pension starts, if the assured policyholder dies, 10 times the annual pension is

paid as a lump-sum to his nominee and the policy is terminated upon such payment.

There is another plan (Table-72D) that while providing for full protection against

premature death as described above, provides for pension from a designated age as

elected by the policyholder at an increasing rate i.e. pension will increase @10% at

intervals of two years. Payment of pension is guaranteed for at least ten years and

thereafter as long as the pensioner lives.

Both these pension plans provide for waiver of premium in case of permanent and

total disability due to accident before commencement of pension.

VI. Child Educational Protection Plan (Table No. 06, 11, 75A) with profits:

Multiple benefits in the form of scholarship, monthly annuity etc. in addition to sum


assured is available under these plans. Under one plan (Table-11) sum assured or a

part thereof is also payable to the policyholder in case the child dies prematurely.

VII. Tri-dimensional Policy (Table No. 07): Built-in benefits for payment of 50%

sum assured immediately if critical illness is diagnosed. Premium and the sum

assured will thereafter be halved and the policy continues. Under this plan, a spouse

may also be covered for major disease benefits.

VIII. Moving Term Plan (Table No. 67): Policies under the plan are initially issued

and is to be taken for a minimum term (6 to 10 years) as elected by policy holder.

Any time within this minimum term if death occurs, full sum assured is payable. At

the expiry of the minimum term, the policy may be surrendered for full refund of

premiums paid. However, the policyholder need not terminate his policy at end of the

minimum specified period. The policy will automatically continue till age 65 years of

the policyholder unless he terminates it earlier. The survival benefit comprises of

refund of all premiums paid along with bonuses. In case of premature death the

nominee(s) is paid the sum assured plus all premiums paid till death, or all premiums

paid with profit accrued till death whichever is greater.

IX. Single Premium Multiple Security Plan (Table No. 14): It is a single Premium Policy offering multiple security for five years term. It covers natural death, permanent and partial/total disability and seven major diseases. Premiums are based on the age of the proposer. This plan perfectly suits the needs of the executive class.Policy Conditions Surrender Value:After payment of two full years' premium, the policy acquires cash surrender value which is quoted on request unless stated in the policy itself.Loan:At anytime after a cash surrender value is available under the policy and while the policy is in force, the policyholder may obtain, subject to the company's existing rules, a loan on the policy up to


90% of the cash surrender value.

Age Proof:Age of life assured as declared while applying for the policy has to be authenticated with an age proof document acceptable to the company. The company reserves the right to require proof of age of the life assured before paying any claim under the policy if not admitted earlier.Settlement Option:Payee may elect to receive the proceeds of the policy in installments instead of in a single sum, in such a manner as may be agreed upon with the company.

Suicide:Should the life assured commit suicide, whether the assured be then sane or insane, within two years from the commencement date or from reinstatement of the policy, then the liability of the company shall be limited to the refund of all premiums paid under the policy less indebtedness, if any, at the time of such death. Bonus: DLIC pays attractive bonuses to its with-profit policies. The present rate of

policy bonuses are as following:

a) A compound reversionary bonus @ 5% of paid up sum assured. This bonus is not

paid on the installments withdrawn (under Table-03, 04) from the date of such

withdrawal.

b) A simple reversionary bonus ranging from Tk. 10 to Tk. 15 per thousand sum

assured per year depending on term.

c) A terminal bonus equal to 10% to 12% of sum assured at maturity of policy

depending on terms if the policy would have been in force for at least 2/3rd of its

term.

Average Rate of Bonus


On the basis of the three types of bonuses the Company now pays to its with profit

policies, the average bonus earned by a Tk. 1,00,000 sum assured endowment policy

(except Table No. 03, 04) per thousand sum assured per year shall be as following:

Term of Policy

Total bonus at maturity

Average rate per thousand per S.A. year

10 years Tk. 52,000 Tk. 52

15 years Tk. 81,000 Tk. 54

20 years Tk. 1,15,000 Tk. 58

A MOVEMENT FOR SOCIO-ECONOMIC SECURITY GONO-GRAMEEN

BIMA A NON-PROFIT INITIATIVE OF DELTA LIFE INSURANCE CO.

LTD.

Delta Life first launched Micro-insurance product in 1988 through its Grameen Bima

Project (GRB) to cater to the necessity of economic protection against premature

death and of disability as well as providing a way for regular savings for the poor and

low income group of people living in villages. Later it started another project in 1994,

namely, Gono Bima (GNB) for the urban poor and the low income class. These

projects are now merged under the name of Gono-Grameen Bima Project (GN-GRB).

The initial problems apart, the project started to yield impressive results right from

the beginning by creating great interest among the target population who could not

even perceive an institutional arrangement through which the ever present problems

of insecurity of life could be addressed. To suit the needs and pockets of the target

people, and for efficient management of these portfolios, some of the age-old

traditional concepts of carrying on life insurance business had to be diluted and in

some cases replaced by simple and straightforward practices. Yet, the results are so


encouraging that Delta Life is now regarded far and wide as the undisputed leader

espousing the cause of welfare of teeming millions and its experiences are now used

to advantage not only by indigenous companies but also other micro-savings

organizations abroad.

Target group and the product

In GNB/GRB the formalities are minimum. Insurance cover is given under Group

Insurance concept. A person interested in a policy submits a simple two- page

proposal form; it is signed or thumb-imprinted by him/her. There is no need for

medical check-up. The person needs to be between 18 and 45 years of age, have a

monthly income of Taka 5,000/=(US $ 100.00) or less, be of good health and supply

a Declaration of Good Health (DGH) at the time of submitting the Proposal form.

Death through pregnancy complications within the first year of the policy and death

through suicide in the first year of the policy are not covered under an "exclusion

clause". Simple endowment with profit policies are offered for 10 and 15 years term

both with premium payment mode being weekly or monthly. Premium rate is the

same irrespective of age at entry. Besides this plan new plans like three-payment plan

with 12 and 15 years term and double protection endowment plan have recently been

introduced.

Upon acceptance of the proposal, a pass book is issued to the policyholder detailing

all terms and conditions of the policy. The pass book serves as the purpose of

recording of all payments made by him towards the policy. There is one group policy

document for the policyholders of each Thana or Block. For individual policyholders

the passbook serves as policy document.

Micro Investment (Loan) GN-GRB gives small project loans to its policyholders on

a group liability basis. No collateral is required. There is 20% service charge on the

loans, which is calculated at a flat rate and added to the principal amount. The loan,

together with the service charge, is repayable in 12 equal monthly installments. The

repayments are collected from door to door by the organizers. Recently a decision has

been taken to establish small collection booths in the villages. A person must be a

policyholder and pay premiums for at least one year before being eligible for a loan.

The maximum loan given is Taka 5,000/=(US$ 100.00) per policyholder. The loans


are for income generating activities (IGA) only. Policyholders form a committee of 5

to 7 members. 3 policyholders selected by the committee are given the first loan.

After recovery of 3 installments from each of the first three borrowers, the next 3 are

given their loans and so on. As a general rule, 60% of the premium income of an area

and 40% of the repaid loan of an area are available for loan in that area. Also 100% of

premium collection of a committee is available for loan to that committee.

Group Life InsuranceGroup 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

Health Insurance

Health Insurance is now considered indispensable in developed countries. In the

present financio-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

As pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers

several Health Insurance schemes, which are as follows:

Hospitalization (In-patient) treatment coverage plans

o Hospitalization Insurance Plan (Group)- offered to Members of a group and their

dependants (if desired)

o Hospitalization Insurance Plan (Individual) – offered to an Individual and/ or

his/her dependant family members also known as “Delta Care Hospitalization

Plan”.


Clams Operation

Collections

Zone operation

Establishment

Subdivision of every Division Delta Life Company Limited Division


Development and servicing

Loan

HRD Accounts

Control &Compliance

Operation of Zone Centre:


Underwriting

Collections

Establishment

Accounts,BankReconciliation&Dataprocessing

Underwriting

Zone operation Centre

Zone operation center are three divided there activities

1. Operation Department

2. Development Department

3. Control & Compliance.

Now we discuss about operation department:

Operation Department are divided in six part,

1. Collection Section.

2. Accounts Section.

3. Underwriting Section.

4. Establishment Section.

5. I.T Section

6. Servicing.

** Collection Section: At first in this section collect weekly closing & Bank

statement, Loan receipt from zoc & manual checking entry into premium register

book than send to I.T.

Second function of the collection section they collect proposal form from zoc

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Operation Department

Accounts Section

Underwriting Section

Establishment Section

IT Section

29

Development Department

Control & Compliance

Collection Section

Servicing

& send to the U/W section. They also monitoring perceive & distribution & receiving

muribooks & provide report to head office.

** Accounts Section: Zone operation center’s accounts section are provide

field staff & Zoc field staff & Zoc staff salary& pay all units & Zoc office expenses.

They also send fund requisition to center Accounts the maintenance of petty cash

book & all books Accounts. They pay all types of claims &preserving record in

computer & Maturity & Provide report to the Head office.

**I.T. Section: Main function of I.T Section is entry of PR, M.R & PIS.

They prepare monthly salary sheet& hand over to Zoc accounts. They also check all

sorts of claims before printing by servicing. They can easily transfer to central server.

I.T. Section provides report to the Head office.

**Underwriting Section: It is the most Importance section of insurance

policy. In this section receive proposal from the collection section& they issue policy

number& stamp denomination. They are also entry policy summery. They are

handover P F to servicing for long time preservation. They are maintaining policy

register. They also handover pass book to unit office& provide report to the head

office.

**Establishment Section: In this section maintain all type fixed assets

such as chare, table computer etc. they also maintain office rent register. In this

section preserve contract deed ensure office &office security system for Zoc. They

prepare office rent bill check & sent to Zoc. In this section share all types of

information among units Zoc & Head office.

**Servicing: Servicing section is the most importance section of insurance.

They present Maturity; Death & Surrender claim to head office. They also approve

survival benefit &prepare executive receipt. Servicing section does all servicing

related works & preserves the records. It is also store house. They also prepare report


to the head office.

Analysis of delta life Insurance Company Limited


Financial Performance on division wise:

Ordinary Life:

year Premium

2004 125.45

2003 110

Valued policies numbered 2,57,625. 14.05% increase in gross premium to TK.125.45

core in 2004 from TK.110 core in 2003.

Gono-Grameen Bima:

year premium

2004 76.26

2003 61.55

Valued policies numbered 8,71,685. 23.90% increase in gross premium to TK. 76.26

core in 2004 from TK.61.55corein 2003.

Health Insurance:Total lives insured 20,663. 17.68% increase in gross premium

to TK.2.33 core in 2004 from TK.1. 98 core in 2003.year premium

2004 2.33

2003 1.98

Group Insurance:

year premium

2004 6.21


2003 6.04

Total lives insured 93,453. 2.81% increase in gross premium to TK.6.21 core in 2004

from TK. 6.04 core in 2003.

Business growth of Delta life insurance company:

2004 2003 2002 2001 2000

Premium (in%) 17.09 19.04 13.25 10.77 7.39

Assets (in%) 23.11 23.85 23.83 25.12 24.13

Life Fund (in%) 25.80 24.60 26.73 28.36 29.45

Business Growth

17.09 19.04

13.2510.77

7.39

23.11 23.85 23.83 25.12 24.1325.8 24.626.73 28.36 29.45

0

5

10

15

20

25

30

35

2004 2003 2002 2001 2000

Premium (in%) Assets (in%) Life Fund (in%)

Interpretation:

From the above chart we can easily observe that Premium increase 7.39 % to 17.09 from year 2000 to 2004. it growth is 131% compare to its starting year or year 2000.


This chart also shows that premium was also low in year 2004 than year 2003 by around 2.07%.this chart show that premium was incerase5.79% compare to 2002 to 2003 & this also show that premium was in increase 2.48% again we seen that premium increase3.38%

Above this information we can say that, Gross insurance premium earned was TK.

210.25 crore an increase of 17.09%over insurance premium earned in 2003.The Life

Fund increased to TK.680.83 crore in 2004 from TK.541.22 crore in 2003, an

insurance of 25.80%. Growth of business is satisfactory and the financial health of the

Company is very sound.

Chapter-05


Premium & Life Fund

0

200

400

600

800

1000

Premium Life Fund

Life Fund 120.25 133.2 150.85 179.57 210.25

Premium 267.03 342.75 434.38 541.22 680.83

2000 2001 2002 2003 2004

Learning Points& findings of the study

I have designed this chapter with two parts. In the first part, I have mentioned


what I have learned from different departments of the organization. And in the

second part, I Attempt to demonstrate whatever, I have found out thought my

study.

Internship Learning PointsDuring my training period in Delta Life Insurance Company Ltd, I tried my

level best to enrich my knowledge by gathering as much as information and

practically doing the office works of different departments. Among four

departments of the organization, I gave more emphasize on the activities of

finance & Accounts departments are given in the following sections:

Learning from the Finance &Accounts DepartmentMy major leanings come from this department. The work range of this

department is very wide. So it was not possible for me to practically learn all the

functions. However, my main learning functions are:

How to check the cash &cheque vouchers.

How to record the voucher.

How to prepare a summary sheet of expenditures.

How to prepare a bank reconciliation statement.

Learning from Underwriting departmentMy learning period from this department was not long but in the mean time I

learned the most important matter of this department like the procedure to

calculate the insurance premium. From my understanding I am trying to give

here an example:

To calculate the amount of premium, the process and methods are

predetermined by the government. For giving coverage of each type of insurance


scheme certain amount of money is encoded. For example, in case of fire policy

1855 is given by the clients to the insurance company. Then the charge is

calculated on the insured amount for each type of risk @2.8%. Finally insurance

stamp and vat in added to determine the total amount of premium. Suppose the

sum insured amount is19000. So the amount of premium will be:

Amount of Premium=1855+(19000*2.8%)+vat+stamp.

Learning from claim and Reinsurance DepartmentThough I gave very few times in this department but with the help of this

department’s personnel I learned two important issues:

Calculating the proportion of reinsurance

Calculating the amount of actual claim

From my understanding I am trying to give here two examples of those:

Calculation of ReinsuranceFor example, a company sells an insurance policy in exchange for a premium of

TK.10000. Now the company has to reinsurance it to Sadhran Bima

Corporation. The company is able to bear loss up to TK4000. Sothe remaining

6000 is reinsured to Sadharan Bima Corporaton. In this regard now the

company is the client and Sadharan Bima Corporation is the insurance

company. So the company has to pay premium to sadhran Bima Corporation

based on the following ratio:

4000/10000=40%

6000/10000=60%

When any claim will be occurred, the company will bear loss up to 40% and the

remaining 60%will be given by the sadharan Bima Corporation.

2. Calculation of Claim

for Example, a cargo consisting of 10000 bags is insured for TK. 200000(20per


Bag). But 4000 bags were damaged and would realize TK.4per bag. The market

value of per bag is TK 18 in undamaged condition. So the amount of actual

claim will be:

Insured value of 10000 bags @ TK. 20 2,00,000

Insured value of 4000 bags @ TK. 20 80,000

Market value of 4000 bags in undamaged condition @

TK. 18 72,000

Sales value of 4,000 bags in damaged condition @ TK

4 16,000

The amount of Loss 56,000

Value of damaged goods = 56,000/72,000*80,000 62,222

Add:

Commission

Survey Fee

Others

Actual amount of insurance Claim 62,222

Although as a finance major student I started my internship duties from


Finance & Accounts Department and tried to move to the other departments but

to fulfill the purpose of my internship report I had to gave emphasize on the

Marketing Department also as my report’s finding is covering the general

Insurance and Customers’ Perception – A Study on Delta Life Insurance

Company Ltd.’’ So I have conduct a survey with the help of marketing

department in order to find out the customers view on the company and in the

following part I tried to demonstrate whatever I have found out.

Findings of the study


Chapter – Six

Conclusion & Recommendation


Conclusion:

After an extensive observation of all the information, I have arrived in

conclusion, it can be said that in modern Insurance business “Delta life

insurance Company Limited” is a well-known name.

Delta life insurance Company Limited is a new generation Insurance. It is committed

to provide high quality financial services/products to contribute to the growth of GDP

of the country through stimulating trade and commerce, creating employment

opportunity for the educated youth, poverty alleviation, raising standard of living of

limited income group and overall sustainable socio-economic development of the

country.

Through it is a first Insurance, Delta makes a strong position through it’s varies

activities. Its number of clients, investment money increases day by day. This

Insurance already has shown impressive performance in investment.

Consumer are more or less satisfied with the present services of the Insurance now

should think to start new services and take different types of marketing strategy to get

more customers in this competition market of Insurance.

During three months internship period I have tried to enrich my knowledge as much

as possible which would necessarily beneficial to develop my career positively.

At last it can be said that, Delta life Insurance is growing fast and its contribution in


our economy is also considerable. I hope that Delta will wide its services by

expanding its branch allover the country.

Recommendation:

As per earnest observation some recommendation for the improvement of the

overall situation of Delta Life Insurance are given below:

1. Delta life should introduced more innovative and modern customer service.

2. Advertising and promotional activity should increased.

3. The Insurance should consider the system of introducer and other lengthy

procedure of opening and maintaining accounts.

4. Delta life should increased computer at every table.

5. Delta life should hired adequate employees so that they can easily perform

office works.

6. Delta life should employee movement from one department to another

department for their increase of skill.

7. Delta life should increased branch at various suitable places and every district

level.

8. The Insurance should ensure fare and quality recruitment process as well as

proper training facilities for its recruited and existing employees; this will

work in multiple ways to promote the overall performance of the Insurance.

9. As the way of promotion the Insurance Company may carryout various social

welfare activities through Delta life foundation.

10. Long-term or yearly training very much required for the employees.


Activities of Delta Life Insurance Company Limited

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