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Letter of Transmittal
August 03, 2009

Zinnatun Nesa
Lecturer
Department of Business Administration
Faculty of Business and Economics
Daffodil International University
Subject: Submission of Term Paper on Product and Performance Evaluation of Far East Life Insurance
Dear Madam,
Here I am submitting my Term Paper on Product and Performance Evaluation of Far East Life Insurance
prescribed by you in your course Principles of Insurance . For this purpose, I have gone through
Internet, different books, articles, journals, interviews of executives and employees of the respective
organization and class lecture sheets for collecting necessary information of the assigned topic.
Please accept my Term Paper and call me for any further information at your convenient time and place.
Yours truly,
Sheikh Asimuzzaman
ID: 081-11-078
Batch: 19th
Section: A
Daffodil International University

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Letter of Authorization
August 03, 2009

Zinnatun Nesa
Lecturer
Department of Business Administration
Faculty of Business and Economics
Daffodil International University
Subject: Declaration regarding the validity of the Term Paper.
Dear Madam,
This is my truthful declaration that the Term Paper I have prepared is not a copy of any Term Paper
previously made by any other student.
I also express my honest confirmation in support of the fact that the said Term Paper has neither been
used to fulfill any other course related purpose nor it will be submitted to any other person or authority in
future.

Yours truly,
Sheikh Asimuzzaman
ID: 081-11-078
Batch: 19th
Section: A
Daffodil International University

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ACKNOWLEDGEMENT
I express my sincere gratitude and thanks to my course instructor Zinnatun Nesa for giving me an
wonderful chance for making the term paper. I also like to thanks her for great kindness and showing
proper guidelines which helped us a lot to complete our assignments.

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Contents

Chapter Title
No
1.
Executive Summary
2.
Introduction:

Page No

3.

Report
Stakeholders Information
Number of the Products/Services
Business Performance
Graphical Representation

7-11

4.

Data Sources
Primary Sources
Secondary Sources

12

5.
6.

Conclusions
Appendices

12
13

5
6-7

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Executive Summary:
Our life is uncertain. We dont know what will happen after now. For this reason
we feel little bit insecure. But we can reduce this risk by making the decision to purchase life
insurance.
We are often in the process of experiencing a major life-altering event such as
getting married, starting a family, or purchasing a home. So we need a way to
secure all these things. We realize that owning life insurance is very important to
ensure our sense of security. With its own various policies any financial sound
person can receive the services.
Prime Islami Life Insurance Company has been providing us Life Insurance service through Islamic
Shariah since they established their company. This company always try to serve the participants of atmost
care and provide the best solutions for their needs. Beside that its also contributing in social welfare.
Non life insurance is much important like life insurance. Because we buy lot of valuable things to run our
daily activities. It can be a camera or a car. So we need to secure this things.
Because it can be lost or theft.
For reducing these kind of risks Pragati Insurance Company is continuing their business purposes and
also performing social activities day by day.

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Introduction:
Fareast Islami Life Insurance Co. Ltd. is first and only the full-fledged Shariah based Islamic
Life Insurance Company in Bangladesh. It was established on 29th May, 2000 with a view to
create awareness about Islami Life Insurance to the common people of the country.
eliminate concept of interest and introduce profit & loss sharing in life Insurance business.
treat policy holder as participant.
provide financial security to our participants with life tactful policies that are most suitable to their
needs.
serve our participants with divine ecology.
collect small saving and provide financial support for the economic development of the country.
It has passed only 7 (seven) years of its operation. During this period, among the third generation
companies, at first it went into public share in the middle of 2005 with tremendous public support having
20 times higher subscription. Not only that the price of share of 100/= (one hundred) taka went to 800/=
(eight hundred) taka in the first day trading of the share in the Share Market. The total premium earning in
the year ended 2006 was Tk. 172.89 cores showing an increase of 55.42% over the earning of proceeding
year and life fund of the Company raised to Tk. 237.47 core in 2006 from Tk. 144.58 core over the
preceding year. The paid-up capital was raised to 9 crore from 7.50 crore by issuing 20% Bonus Shares.
In the last AGM a total dividend of 40% of which 30% in cash and 10% is bonus shares has been declared
for the year 2006.
Success is not solely depending on strong financial result, it is also defined by strength of business
position & market network, the soundness of Organizational structure, skilled & professional manpower
and friendly relationship with participants (policy holders) the Government & well-wishers.
To Preserve Islamic Values, the Company has been performing its social responsibilities by helping the
victims in natural calamities. This year, i.e., 2007 the Company distributed relief materials to the tune of
Tk. 39, 50, 000. lac to the flood affected people.

Vision:

To be the premier Islami Life Insurance Company of Bangladesh.

To serve the participants of utmost care and provide the best solutions for
their needs.

To be a Company with due solemnity and corporate social

responsibilities to the society upheld by taking financial risks.

To provide dynamic and prompt services for the participants to make

them loyal to the company.

To impart Islamic Sharia to Islamizing the life insurance industry

playing vital role in the economy of the country.

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Mission:

To provide financial securities to the participants with Life Takaful

policies that are most benefitting to their needs.
To make life a forced and easy saving instruments and a profitable one
with attractive bonus.

Collect small savings from the people and invest the accumulated funds
for economic stabilization of the country.

Islamization of the economic activities in the country for the solidarity

of the Muslim Ummah.

Strategic Activities:

To serve the participants with divide ideology.

To maintain stakeholders interests with fair and transparent operations.

To create awareness about Islamic Life Insurance.

Core Values-Islam:

Integrity
Solidarity

Lawful

Adle & Ahsan

Mutual Benefits

Stakeholders Information:
Numbers of Directors

: 22
(Taka in Crore)

Authorized Capital
Paid-up-Capital

: 25,00,000 Ordinary Shares of Tk. 100 each

: 9,90,000 ordinary Shares of Tk. 100 each

25.00
9.90

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Dividend-2007
Life Fund at the end
of the year 2007

: 40% stock i.e. 2(Two) bonus shares against every 5(Five) shares.
:

Number of the Products/Services:

Ordinary Life (Ekok Bima)

Endowment Assurance Plan- with profits.

Assurance-Cum-Pension Plan-without profits
Islamic Endowment Plan (Hajj Bima)- with profits
Four Payment Endowment Assurance Plan-with profits
Islamic Endowment Plan (Denmohor Bima)- with profits
Islamic Three Payment Assurance Plan- with profits
Single Premium Endowment Assurance Plan-without profits
Child Protection Plan-with profits
Fareast Deposit Pension Scheme (FDPS)-with profits
Group Assurance Plan

Micro Insurance (Shorbojonin Bima)

Monthly Saving Plan-with profits

Single Premium Plan-without profits
Fareast Deposit Pension Scheme (FDPS)-with profits

Business Performance:
Class Wise Business Analysis
Ordinary Life (Ekok Bima)
New Business
Year

No. of Business

2007
2006

93,889
85,321

(Taka in Lac)
First Year
Premium
8,182
6,701

Micro Insurance (Sharbojonin Bima)

(Taka in Lac)

Business in Force
Business in Force
2,23,936
1,68,142

3.96
397.48

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Year

No. of Policies

First Year Premium

No. of Policies

2007
2006

87,795
78,203

1,334
1,179

1,76,397
1,31,780

Graphical Representation
Premium and Life Fund (Taka in Crore)

Premium and Claims (Taka in Crore)

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Value Addition and Distribution (in%)

Assets (Taka in Crore)

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Dividend

Balance Sheet-07 and other financial statements are attached in appendices.

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Data Sources:
Source of data of this report has been divided into two categories:
Primary Sources:
Conversation with officers, employees and other staffs.
Sharing some practical knowledge.
Secondary Sources:
Relevant books, Journals, Newspapers, Brochures.
Website.

Conclusion:
Fareast Islami Life Insurance Company is one of the leading insurance companies in
Bangladesh. Through this company life insurance service has been able to move one step ahead to secure
our lives and contribute social welfare activities.

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Appendices: