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Life Insurance
After the independence of Bangladesh, the Life Insurance industry of Bangladesh was brought under nationalization by the President’s Order No. Act No. 95 of 1972 to bring the benefits of life insurance in Bangladesh to the common people of the country.
After the nationalization of the insurance industry, the assets and liabilities of 37 companies engaged in the life insurance business were first merged into two corporations named Surma and Rupsha and later into two corporations named Act No. 6 in 1973 by the Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
Since its establishment, the Life Insurance Corporation has been playing a commendable role in raising internal capital through its business activities and increasing interest and awareness among the public about life insurance. The corporation started its activities with a deficit of 15.70 crore taka, a life fund of 21.83 crore taka and a premium of 6.45 crore taka and currently has 10 inherited buildings out of 17 commercial buildings.
2.0 Assets
The revalued value of the Corporation’s movable and immovable assets as on 2016 is Tk 627.58 crore.
3.0 Details of immovable assets
Row: No. |
Property type |
Quantity |
Location |
Number |
| 1। | Commercial building |
340730 sq ft |
Dhaka |
07 |
| 2। | Commercial building |
36374 sq ft |
Narayanganj |
02 |
| 3। | Commercial building |
156859 sq ft |
Chittagong |
05 |
| 4। | Commercial building |
29512 sq ft |
Khulna |
01 |
| 5। | Commercial building |
9572 sq ft |
Rajshahi |
01 |
| 6। | Commercial building |
6820 sq ft |
Rangpur |
01 |
| 7। | Empty space |
0.33 acres |
Mouchak, Dhaka |
01 |
| 8। | Empty space |
1.53 acres |
Chakda, Narayanganj |
02 |
4.0 Liabilities to the Government:
The Life Insurance Corporation is a self-financing commercial organization. The corporation does not require any subsidy from the government. Therefore, it has no debt to the government or banks.
5.0 Policy Statistics:
As of 2016, the number of individual insurance policies of the Life Insurance Corporation is 3,68,977 (including paid-up). In addition, about 1,00,489 people are covered by group insurance in 165 government and private institutions.
6.0 Life Fund:
As per the provisional accounts till 2016, the amount of the life fund of the corporation is 1782.72 crore taka.
7.0 Investment:
As per the provisional accounts of 2016, the total investment amount is 1671.54 crore taka. This huge amount of investment is a great strength of the corporation.
8.0 Insurance Schemes:
Business activities are being conducted with 31 insurance schemes.
9.0 Claims Payment:
One of the features of the Life Insurance Corporation is its claims payment capacity. In 2016 alone, the Life Insurance Corporation has paid claims worth Tk 277.11 crore (as per provisional accounts). The claim payment figures for the last 5 (five) years are as follows:
Year |
Crores of rupees |
| 2012 | 250.01 |
| 2013 | 251.66 |
| 2014 | 280.13 |
| 2015 | 283.16 |
| 2016 | 277.11 |
Analyzing the claims data of the Corporation for the last 5 years, it is seen that every year the Corporation pays an average of 61.38% of the total premium income, which is superior to the claims paid by the national insurance companies of not only Bangladesh but also India and Pakistan, life insurance company MetLife and other private insurance companies. Therefore, the claim payment capacity is one of the strengths of the Life Insurance Corporation. Through this claim payment, the Corporation has been providing the most important service to the insurance customers.
10.0 Valuation:
According to the bi-annual valuation report of 2013 and 2014, it has been recommended to pay bonuses to the policyholders at the following rates.
Why is life insurance important in each of our lives?
Life-insurance is very important in each of our lives because it ensures the financial security of us and our families. Below are some of the main reasons why you should take out life-insurance:
1. Family financial protection:
If your family’s income stops after your death, life-insurance helps to cover the financial loss. It helps to maintain the lifestyle of your spouse, children, or parents.
2. Loan repayment assistance:
If you have a home loan, education loan, or personal loan, that debt cannot fall on your family after your death—it can be paid off with life insurance money.
3. Ensuring children’s education:
Life-insurance money can be used to ensure that your children’s future education is not interrupted even if you are not there.
4. Assistance in unexpected situations:
Life is uncertain—illness, accidents, or sudden death can happen at any time. Insurance provides financial support at such times of disaster.
5. Creates a habit of saving:
Many types of life-insurance policies offer the opportunity to save, where you get a certain amount of money back at a certain time or a certain amount accumulates.
6. Tax benefits:
In many countries, investing in life-insurance is tax-deductible, which is financially beneficial.
If you are thinking responsibly about your family and future, then life-insurance is an important step.
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