Report on

Sadharan Bima Corporation

Galaxy Group-2
Serial no: 05
Section: B
BBA 8th batch
Session: 2012-13

Department of Management Studies

Faculty of Business Studies
Jagannath University

May,2014
Report on

Sadharan Bima Corporation

Group Name: Galaxy-2

Batch:8th Session:2012-2013

Name Roll Remarks

SINTHIA ISLAM SUMI B120202123

SHAMIMA NASRIN B120202162
SHUBH CHANDRA GHOSH B110202145
MD. NOOR-E-ALAM B110202190
MD. NURUL ISLAM B110202206
SADIA HOQUE B110202219

Supervisor
Ms. Anannya Chakma
Lecturer
Department of Management Studies

Department of Management Studies

Faculty of Business Studies
Jagannath University

May,2014
 Supervisor Forwarding

Ms. Anannya Chakma
Lecturer
Department of Management Studies
Faculty of Business Studies
Jagannath University
 Declaration

We do hereby solemnly declare that the work presented in this Report has been carried out by
us and has not been previously submitted to any other University/College/Organization for an
academic qualification/certificate/diploma or degree.
The work we have presented do not breach any existing copyright and no portion of this
report is copied from any work done earlier for a degree or otherwise.
We further undertake to indemnify the Department against any loss or damage arising from
breach of the foregoing obligations.

..
Md. Noor-E-Alam
Sec: B
ID No: B110202190

Date
 Acknowledgement
Our endeavor will come true if the actual purpose of this report becomes fulfilled. At the very
first we would like to express our cordial and deep respect to Ms. Anannya Chakma, Lecturer
of Management Studies, Department of Jagannath University for her proper guidance,
valuable advice, instructions which helped us a lot to complete this report.
We would also like to express our heartiest gratitude to Mr. A.K. Khan, Agency Manager of
Sadharan Bima Corporation in Bangladesh, for giving us his valuable time and information
what we badly needed. It was impossible to make this report without his help and co-
operation. This report gave us practical knowledge about the insurance policy activities.
Just reading book cant give a student proper knowledge. Practical knowledge is needed. And
this report give us that chance. We saw the insurance activity so closely that we came to know
many things that we couldnt learn from our book.
In spite of sincere and denoted efforts, there might be some mistakes in the study report. I
take the entire responsibility for such unintended errors and omissions.

..
Md. Noor-E-Alam
Sec: B
ID No: B110202190

Date
 Executive Summery

The report on Sadharan Bima Corporation has been prepared required for acquiring
knowledge about insurance company. In a developing country like Bangladesh, different
insurance companies are playing a very crucial role in the economic growth. Though
insurance industry has significant prospects in the economy but for some reasons it has failed
to achieve its goal to some extent. There are 62 insurance companies in Bangladesh. Through
the enactment of Insurance Corporation Act VI, 1973 which led to creation of two
corporations namely Sadharan Bima Corporation for general insurance and, Jiban Bima
Corporation for life insurance in Bangladesh. In other words Sadharan Bima
Corporation(SBC) emerged on 14th May, 1973 under the Insurance Corporation Act (Act No.
VI) of 1973 as the only state owned organization to deal with all classes of general insurance
& re-insurance business emanating in Bangladesh
 Table of Contents

SL No Contents Page No
01 Insurance background of Bangladesh

02 Current insurance market environment in

Bangladesh
03 Profile of Sadharan bima corporation
04 Vision & mission
05 Service standards
06 Products and services
07 Services provided
08 Findings of SBC
09 Recommendations
10 Conclusion
 .

INSURANCE BACKGROUND OF BANGLADESH

Insurance is not a new idea or proposition to the people of Bangladesh. About half a century
back, during the British regime in the then India, some insurance companies started insurance
business, particularly life, in this part of the world. Since 1947 until 1971 insurance business
gained momentum in this part of what was then known as East Pakistan. There were about 49
companies transacting both life and general insurance business. These companies were
operating under a free competitive economy.

After the emergence of the Peoples Republic of Bangladesh in 1971, the government, in
order to make available the fruit of liberation to the general mass, nationalized the insurance
industry along with the banks in 1972 by Presidential Order No. 95. By virtue of this order,
save and accept postal life insurance and foreign life insurance companies (other than the
Pakistani companies), all companies and organization transacting all types of insurance
business in Bangladesh came under this nationalization order. At the same time, five
insurance corporations were initially established by the Government, viz, Jatiya Bima
Corporation (National Insurance Corporation), Teesta Bima Corporation (Teesta Insurance
Corporation), Karnaphuli Bima Corporation (Karnaphuli Insurance Corporation), Rupsa
Jiban Bima Corporation (Rupsa Life Insurance Corporation), Surma Jiban Bima Corporation
(Surma Life Insurance Corporation).

On 14th May, 1973 the Insurance Corporation Act VI, 1973 was enacted under which the
previous five corporations were abolished and the following two corporations emerged:
1) Sadharan Bima Corporation for General Insurance and,
2) Jiban Bima Corporation for Life Insurance in Bangladesh.

CURRENT INSURANCE MARKET ENVIRONMENT IN BANGLADESH

After the emergence of the Peoples Republic of Bangladesh in 1971, the government
nationalized the insurance industry along with the banks in 1972 by Presidential Order No.
95. By virtue of this order, all companies and organization transacting all types of insurance
business in Bangladesh came under this nationalization order. This was followed by creation
of five insurance companies in the life and non-life sector. Further changes were brought on
14th May, 1973. Through the enactment of Insurance Corporation Act VI, 1973 which led to
creation of two corporations namely Sadharan Bima Corporation for general insurance and,
Jiban Bima Corporation for life insurance in Bangladesh. In other words Sadharan Bima
Corporation(SBC) emerged on 14th May, 1973 under the Insurance Corporation Act (Act No.
VI) of 1973 as the only state owned organization to deal with all classes of general insurance
& re-insurance business emanating in Bangladesh.

Thereafter SBC was acting as the sole insurer of general Insurance till 1984. Bangladesh
Government allowed the private sector to conduct business in all areas of insurance for the
first time in 1984. The private sector availed the opportunity promptly and came forward to
establish private insurance companies through promulgation of the Insurance Corporations
(Amendment) Ordinance (LI of 1984) 1984.

The Insurance Market in Bangladesh now consists of two state-owned corporations, forty
three and seventeen private sector general & life insurance companies respectively, a total of
62 insurance companies. Thus the insurance sector in Bangladesh has grown up substantially
and deepened remarkably with number of companies in both life and general segments. With
the expansion of size of the insurance market, the volume of assets of the industry has also
increased substantially.

SBC is entitled to 50% of public sector business. Insurance Corporation (Amendment) Act
1990 provides that fifty percent of all insurance business relating to any public property or to
any risk or liability appertaining to any public property shall be placed with the SBC and the
remaining fifty percent of such business may be placed with this corporation or with any
other insurers in Bangladesh. But for practical reason and in agreement with the Insurance
Association of Bangladesh SBC underwrites all the public sector business and 50% of that
business is distributed among the existing 43 private general insurance companies equally
under National Co-insurance Scheme.

In respect of reinsurance, the same act provides that fifty percent of a companys reinsurance
business must be placed with the Sadharan Bima Corporation and remaining fifty percent
may be reinsured either with this Corporation or with any insurer in Bangladesh or abroad. At
present, nearly all the companies place 100% of their reinsurance business with the SBC.

PROFILE OF SADHARAN BIMA CORPORATION

Sadharan Bima Corporation is only state-owned General Insurance Corporation operating

under the direct control and supervision of the Ministry of Finance, Government of the
Peoples Republic of Bangladesh. It emerged on 14th May, 1973 under the Insurance
Corporation Act (Act No. VI) of 1973 to deal with all classes of general insurance & re-
insurance business emanating in Bangladesh.

Thereafter, SBC was acting as the sole insurer of general Insurance till 1984. In the year 1984
Bangladesh Government allowed insurance Companies in the private sector and to that effect
promulgated the insurance Corporations (Amendment) Ordinance 1984.

Sadharan Bima Corporation has a very strong financial base. It has a market share of over 20
% of the total premium income of the insurance market of Bangladesh. SBC, the largest
insurance enterprise in the country, has a net worth of Tk.605 crore an authorized capital of
Tk.20 crore, paid up capital of Tk. 10 crore and the anticipated revenue during the current
financial year is approximately Tk. 417 crore.
Following characteristics of SBC proves its financial soundness :- Government owned
enterprise - Financial Soundness due to huge assets owned by SBC - Only re-insurer in
Bangladesh - Wide net-work of offices - Public trust - Huge trained & skilled manpower -
Large investable fund - Huge Real Estate Assets in Dhaka, Chittagong, Khulna, Rajshahi,
Bogra & Sylhet. SBC TOWER the only multistoried car parking building in the heart of the
capital city of Bangladesh

SBC is the sponsor shareholder of Investment Corporation of Bangladesh, Industrial

Development and Leasing Company, National Tea Company Limited, National Housing
Finance and Investment Ltd, Aramit Ltd, Central Depository BD Ltd.etc.

SBC has met all prudential norms in further its financial strength. Not only that, Sadharan
Bima Corporation has emerged as one of the countrys few largest taxpayers in the corporate
sector.

SBC is entitled to 50% of public sector business in Bangladesh. Insurance Corporation

(Amendment) Act 1990 provides that fifty percent of all insurance business relating to any
public property or to any risk or liability appertaining to any public property shall be placed
with the SBC and the remaining fifty percent of such business may be placed with this
Corporation or with any other insurers in Bangladesh. But for practical reason and in
agreement with the Insurance Association of Bangladesh SBC underwrites all the public
sector business and 50% of that business is distributed among the existing 43 private general
insurance companies equally under National Co-insurance Scheme.

In respect of reinsurance, the same act provides that fifty percent of a companys reinsurance
business must be placed with the SBC and remaining fifty percent may be reinsured either
with this Corporation or with any insurer in Bangladesh or abroad.

The main pillar of the SBC is insurance as well as reinsurance business. SBC is the largest
non-life insurance underwriter in Bangladesh in terms of gross premium, network of offices
& trained manpower. On the other hand, SBC reinsures the risks of private insurance
companies operating in Bangladesh.

VISION
To be a world-class insurance & reinsurance organization in Bangladesh.

MISSION

1. To become the premier organization in Bangladesh for all insurance and reinsurance needs
and to provide quality services at affordable cost.
2. To be the Insurer of the first choice in Bangladesh by offering top class security,
comprehensive, efficient services and professional conduct of business.
 SERVICE STANDARDS

1 Issuance of Insurance Within 24 hours from the receipt of Premium.

Policy (Tariff -Business):

2 Issuance of Insurance Within 24 hours after getting proper documents &

Policy/Cover premium from the insured.
-Note/Certificate (Non-
tariff Business):

3 Specialized Underwriting: Executed yearly according to the demand of the insurer.

4 Renewal of Reinsurance Executed on yearly basis as per requirements of the

Treaties with- the Private Private Insurance Companies.
Companies:

5 Overseas Reinsurance: Executed on yearly basis as per SBCs reinsurance

requirements.

6 Underwriting of Large Immediately on getting the proposal from the insured.

(Specialized) -risks (Non-
Tariff items):

7 Settlement of Claims: Within 90 days after receiving all relevant documents

from the insured/claimant, if no complexities arises.

8 Renewal of Surveyors Within 48 hours after receiving the registration

License: certificate from the office of the Chief Controller of
Insurance.

9 Car Parking Facilities: (a) Daily Facilities: On the spot/within 2 minutes (From
8.00 AM to 10.00 PM except holidays).

(b) Monthly Facilities: Monthly arrangements of car-

parking could be provided within 24 hours on subject to
availability of space.

Products and services

SBC has provided various policies. Some of them are following:
Fire insurance policy
Marine hull insurance policy
 Marine cargo insurance policy
Motor insurance policy
House holders comprehensive insurance policy
Product liability insurance policy
Burglary insurance policy
Contractors all risk policy
Engineering insurance policy
Public liability insurance policy
Aviation insurance policy
Workmens compensation policy
Cash in safe insurance policy
Cash in transit insurance policy
Cash on counter insurance policy
Personal accident insurance policy
Peoples personal accident insurance policy
Dread disease insurance policy
Overseas medi-claim (employment & study) insurance
Export credit guarantee insurance
Livestock insurance policy
All risks insurance policy
Fidelity guarantee policy

STANDARD FIRE INSURANCE POLICY

Fire Insurance: All policies issued under the heading of Fire Insurance. It primarily aims at
providing protection against financial losses arising out of the operation of fire or certain
other specified perils. The subject matter of insurance is usually:
Building

Plant & Machinery

furniture, Fixture and fittings

Goods and Merchandise.

Stocks of all kinds

Direct risks covered under standard fire insurance policy: Accidental fire, lightning &
Explosion (Boilers or gas used for domestic purposes only). The perils covered by the policy
in its normal terms are:-
a) Fire: Whether resulting from explosion or otherwise.
b) Lightning: Whether fire results or not.
c) Explosion: Boiler used or gas used for domestic purpose only.
In addition to the above, this Policy also generally covers the following forms of damage:-
1. Damage during or immediately following a fire caused by-
a) Smoke
b) Scorching
c) Falling walls and the like-
2. Damage caused by a fire brigade or other competent authority in is charge of their duty
including:-
a) Damage caused by water or other extinguishing agents employed.
b) Damage caused by the blowing up of buildings to prevent the spread of a
configuration.
3. Damage to property while being removed from a building or immediately after its removal
from burning building caused by exposure to weather, provided the removal was justified.
Additional risks covered on payment of additional premium:
a) Riot and strike damage (RSD)
b) Explosion damage (including commercial purpose)
c) Malicious damage.
d) Earthquake
e) Spontaneous combustion.
f) Cyclone
g) Flood.
h) Busting or overflowing of tanks, pipes etc.
i) Subsidence
j) Land slide,
k) Articles dropping from aircraft
l) Subterranean fire
m) Sprinkler leakage
Consequential loss also an additional risk which is covered by paying additional premium.
Remarks: The policy does not cover: - War, Undergoing any process or heating, spontaneous
fermentation, Sentiment Value, Radio Active Contamination or Ionizing radiation.

MARINE INSURANCE POLICY

Marine Hull Insurance: Hull means the insurance of ship. The ship is always at the risk of the
perils of the seas and therefore, the ship owner can insure it against probable losses as such.
The subject matter of hull insurance is usually:-
a. Hull
b. Plant & Machinery
c. Refrigeration Machinery etc.
d. Freight (if the freight is after paid when at the risk of the ship owner)
Direct risk covered under Marine Hull Insurance: Fire, theft, jettison, collision, contact,
heavy weather, Stranding/ foundering, sinking, General average, Sue & labor charges. The
Marine Hull policy may include liability hazards such as collision or running down.
Additional Risk Covered on payment of additional premium War Strike Riot Civil
Commotion (SRCC)
Remarks: Premium being determined on a rating subject to age and class of construction of
Hull.
Risks covered under following categories :-
a) ITC (All risk Policy)
b) TLO (Total Loss only)
According to the law the insured is required to pay the Stamp duty of this policy.

Marine Cargo Insurance: Cargo meaning the insurance or goods being conveyed. This refers
to goods or merchandise that one being carried from one place to another or ore being
imported or exported. Such goods or merchandise may be lost damaged or destroyed by
perils of the seas whilst in course of transit and therefore, the owner of such goods can always
insure against the possible losses. For the purpose of Marine Insurance goods/cargo carried
by the following three ways:
(a) By ship or steamer or powered vessel
(b) By land conveyance (Truck/ Lorry / Rail)
(c) By Air.
GOODS CARRIED BY SHIP ONLY
Risk covered by ship or steamer or powered vessel against following three categories :-
Institute Cargo Clause A ( ICC A)
The insurance covered all risks of loss of on damaged to the subject matter insured except as
willful misconduct, ordinary leakage, ordinary loss in weight wear and tear, loss or damage
caused by unsuitability of packing, inherent vice, delay, arising from insolvency or financial
default of the owners of the vessel.
Institute Cargo Clause B ( ICC B)
This insurance covered loss or damage caused by fire or explosion, stranded, grounded, sunk
or capsized, overturning or derailment of land conveyance, collision or contact of vessel craft,
discharge of cargo at a post of distress, earthquake, volcanic iruption of lightning. This policy
also covered general average sacrifice, jettison or washing overbroad, entry of sealake or
river water, total loss of any package lost overbroad or dropped whilst loading on to or
unloading from vessel. This policy does not cover willful misconduct ordinary leakage
ordinary loss is weight wears and tear loss damage or expense caused arising from insolvency
of the owner of the vessel or unsuitability of packing, inherent vice, delay, un seaworthiness
and un fitness. Additional risks covered on payment of
additional premium TP, ND, Hooks, Holing, bursting, Tearing, leakage loss, RFWD,
Extraneous, Substance, Heating, Breakage and Scratching, Splitting.
Institute Cargo Clause C( ICC C)
This insurance covered loss or damage caused by fire or explosion, stranded, grounded, sunk
or capsized, overturning or derailment of land conveyance, collision or contact or vessel craft,
discharge of cargo at a post of distress, earthquake, volcanic irruption on lighting. This policy
also covered general average sacrifice, jettison. This policy does not cover willful misconduct
ordinary leakage ordinary loss is weight wears and tear loss damage or expense caused by in
sufficiency or unsuitability of packing, inherent vice, delay, arising from insolvency or
financial default or the owners of the vessel. Additional risks covered on payment of
additional premium: Theft and Pilferage (TP) Non-Delivery (ND).
GOODS CARRIED BY RAIL/LORRY/TRUCK
Goods or cargo covered by above transports may be covered as under
1. By Rail/Lorry/Truck Risk only
2. By Rail/Lorry/Truck All Risks.
GOODS CARRIED BY AIR
Goods or cargoes conveyed by above transport may be covered as under :
1. Air Risk Only
2. Air All Risks

MOTOR INSURANCE POLICY

Motor Insurance: Different types or policies may be issued for different types of motor
vehicles, Motor vehicles are usually classified in the following manner:- Private Cars,
Commercial vehicles, Motor Cycles, Agricultural vehicles, Motor Trade vehicles. Motor
policies issued are usually of the following types irrespective of the class of vehicles:
a) Comprehensive policy
b) Act liability only policy.
Definition of private vehicle : The Vehicles under private registration & used for private
purposes only. Direct risks covered under private motor comprehensive insurance policy Fire,
explosion, burglary and theft, riot & civil commotion, earthquake, flood & cyclone, storm,
any type of accidental loss and Act liability (Life & property) Extra benefits which may be
included on payment of additional premium
1. Loss of Rugs, Coats and Luggage against fire and theft within a limit of Tk. 1,500 for
any one loss
2. Accident to insured and any named passenger between 16-65 years of age (other than
the insured and the paid driver)
3. Accident to unnamed passenger between 16-65 years of age (other than the insured
and the paid driver)
4. Accident to insured and his/her/wife/husband
5. Legal liability under workmens compensation Act. 1923, Fatal Accident Act. 1855
and at common law to persons employed in connection with the operation or
maintenance of the vehicle
6. Legal liability of passengers for act of negligence
7. Electrical or electronic fitting fitted to the vehicle
Definition of commercial vehicle: The vehicle used for hire or reward and which are not
provided for under the scope of private vehicle or motor cycle and registered as commercial
vehicle. Direct risks covered under commercial motor comprehensive insurance policy Fire,
explosion, burglary and theft, riot & civil commotion, earthquake, flood & cyclone,
storm, any type of accidental loss and Act liability (Life & property) Extra benefits which
may be included on payment of additional premium
1. Electrical & Electronics appliances.
2. Approved Tachometer
3. Legal liability to non-fare paying passengers who are employees of the insured but not
workman as per workmens compensation Act.
4. Legal liability to non-fare paying passenger who are not employees of the insured.
 5. Legal liability to person employed in connection with the operation and maintenance
and/or for loading and unloading of the goods carrying vehicle excluding drivers.
6. Legal liability to paid driver and /or conductor in connection with the operation of
Buses only.
7. Legal liability under workmens compensation Act. in respect of carrying of more then
7 (Seven) persons of such employees including driver in a goods carrying vehicle.
8. Indemnity to Hirers.
In addition in respect of a commercial vehicle which is used for carriage of passenger for hire
or reward and in respect of which legal liability to passenger is required to be covered in
terms of the motor vehicles Act 1991 is subject to additional premium (Passenger risk
coverage is compulsory) of liability to passenger in accordance with the premium of
the motor tariff.

HOUSE HOLDERS COMPREHENSIVE INSURANCE POLICY

This policy covered the following Risks. The Corporation will indemnify the insured in
respect of loss of or damage to the contents/building whilst contained in the insured premises
by:
a) Fire, Lighting, Explosion of gas in domestic appliance
b) Bursting and overflowing of water tanks, apparatus or pipes.
c) Aircraft or articles dropped therefore.
d) Riot, Strike or Malicious Act.
e) Earthquake Fire and/or Shock, Subsidence and Landslide (including Rockslide)
damage.
f) Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tornado or Cyclone.
g) Impact damage.
This Policy shall not cover: The Corporation shall not be liable in respect of:
a) loss of or damage to articles of consumable nature.
b) loss of or damage to money, securities, stamps, stamp collection, bullion, livestock, motor
vehicles and pedal cycles.
c) loss of or damage to deeds, bonds, bills of exchange, promissory notes, shares and stock
certificates, business books, manuscripts, documents of any kind, unset precious stones and
jewelers and valuables unless specifically declared. No one article other furniture is deemed
to be more than 5% of the sum insured under this section unless separately specified and
value stated.

PRODUCT LIABILITY INSURANCE POLICY

Product liability means liability arising out of the handling or use of the existence of any
condition in or warranty of goods or products manufactured, sold, handled or distributed by
the named insured, other than equipment, rented to or located for use of others but not sold
after the insured has relinquished possession thereof to others and away from
premises owned, rented or controlled by the insured
Liability arising from operations, if the occurrence occurs after such operations have been
completed or abandoned at the place of occurrence thereof and away from premises owned,
rented or controlled by the Insured, except (a) pick-up and delivery, (b) the existence of tools:
uninstalled equipment and abandoned or unused materials; performed or because further
operations may be required pursuant to a service or maintenance agreement. Direct risk
covered under product liability Insurance. These types of policies provide cover in respect of
the legal liabilities of the manufacturers, suppliers etc. And losses arising out of any defect in
the product, manufactured, sold or supplied.
Remarks. For details, please contact any of our nearest branch office

SERVICES PROVIDED
Reinsurance service
Sadharan Bima Corporation in its role as a re-insurer has lent support to the private insurance
companies in Bangladesh in a big way. In view of the huge net worth and retention capacity,
SBC has accepted both treaty and facultative businesses from the private insurance
companies. SBC also accepts reinsurance business from overseas market through its
intermediaries and as well as directly.
Industrial development through equity participation
SBC plays a vital role in the industrial development of Bangladesh. SBC is the sponsor
shareholder of Investment Corporation of Bangladesh, Industrial Development and Leasing
Company, National Tea Company Limited, National Housing Finance and Investment Ltd,
Aramit Ltd, Central Depository BD Ltd.etc. SBC has huge amount of fixed deposit reserve
with various commercial banks in Bangladesh.
RISK IMPROVEMENT SERVICES
Sadharan Bima Corporation would always endeavor to deliver the best customer services for
the fulfillment of insurance, reinsurance and risk management needs and problems to the
insurance market in Bangladesh.
On the order hand, Sadharan Bima Corporation provides risk improvement services to its
valued clients through :
a) Pre-underwriting inspection services.
b) SBC has the opportunity to take the necessary help and advice from the foreign
reinsurer regarding risk improvement techniques.
c) SBC regularly enlists professional and expert surveyors to asses risk and loss before
and after loss. It may be mentioned that license for the survey firms are issued by the
office of the Chief Controller of Insurance, Government of the Peoples Republic of
Bangladesh.

Human resources development for insurance industry

To develop the human resource for the insurance industry in Bangladesh. SBC has arranged
professional training for its officers & staffs both within the country and abroad. SBC also
arranged professional training for the officers of the private insurance companies operating in
Bangladesh.

CORPORATE SOCIAL RESPONSIBILITY

SBC is committed to conduct all its operations in a manner that is protective of the
environment, health and safety of employees, customers and the community. In fulfillment of
this commitment, SBC maintains a continuing effort to adhere to the following principles:

Develop its employees by encouraging empowerment and rewarding innovation.

Promote an environment for learning and personal growth of its employees by providing
training within the country & abroad.

Endeavour to attain a position of leadership in each category of its business. SBC is

committed to insuring its business to conduct in accordance with high ethical, professional,
legal standards and good corporate governance practices.

Aim to achieve business excellence by understanding, accepting, meeting and exceeding

valued clients expectations. SBC will determine its clients needs and have a commitment to
provide high quality services to meet them.

Findings of SBC
Strong regulatory system
Introduction of Agency System
Percentage of Agency Commission Expenses Decreased.
Lack of guidelines & difference in legal opinion due to time gap
Some notable Restrictions
Delayed Circulars
Lack of some necessary changes
Provision for Re-Insurance
Inefficient Management
Backward Mentality
Slow Industrialization
Political Influence

Recommendations
Recommendations to the Regulatory Authority
The Finance Ministry should focus on the problems regarding it and should take
pragmatic steps to solve those problems as soon as possible.
The total power that has been given to the regulatory authority to deal with the
different opinions over insurance claims should be reconsidered
All the insurance companies in the insurance industry need to be responsive equally
and very actively.
Reduce the percentage of management expenses .
Transparency and accountability should be ensured in each and every step to ensure
the full implementation of the new Insurance Act 2010 in the insurance sector in
Bangladesh.
To establish the act reliable to the stakeholders and to make its implementation
process .
 Creating public sense and Development of education system

Recommendations to Sadharan Bima Corporation

Sadharan Bima Corporation should provide extensive training to its employees
especially to the development business & marketing .
The Corporation should raise awareness among all the employees and staffs about the
implementation of the new law to make the implementation process much smoother.
As one of the most important tasks, client awareness needs to be increased in the
insurance sector in Bangladesh.
The company should consider the rules and regulations for the non-life insurance
companies in Bangladesh under the Insurance Act 2010.
Transparency and accountability should be ensured in each and every step in the
implementation of the new Insurance Act 2010 in the entire departments of SBC.
CONCLUSION
SBC has met all prudential norms in further its financial strength. Not only that, Sadharan
Bima Corporation has emerged as one of the countrys few largest taxpayers in the corporate
sector. As SBC provides reinsurance business, the reinsurance act of Bangladesh provides
that fifty percent of a companys reinsurance business must be placed with the Sadharan
Bima Corporation and remaining fifty percent may be reinsured either with this Corporation
or with any insurer in Bangladesh or abroad. At present, nearly all the companies place 100%
of their reinsurance business with the SBC.