insurance

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CourseTitle: Insuranceand Risk Management
CourseID: FIN440
Section: 01
Semester: Spring, 2022
Submitted to:
Mr. Md. Mehedi Hasan
Assistant Professor, School of Business and Entrepreneur
Independent University, Bangladesh
Submitted by:
Date of Submission: February22, 2022
Name ID
Abu Talha Md. Rishad 1710208
Arifin Islam Talukder 1710300
Afifa Sumiya Tonni 1930313

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CompanyOverview
Padma Islami Life Insurance Ltd is a dynamic, sound, and responsible Bangladeshi life insurance
company that follows Shariah principles in its daily operations. In Dhaka, Padma Islami Life
Insurance Limited Offers Islamic Shariah-compliant life insurance products and services. It was
established in the year 2000 and listed on the Dhaka Stock Exchange and Chittagong Stock
Exchange in 2012. Their goal is to serve humanity in the present and in the future by offering
financialand moral benefits through the highest levels of good faith, good behavior, mutual trust,
sincerity, integrity, and individualized service. About their products:
 Progressive Term Insurance (Profit-Loss Based):
This plan is popular since the premium rate at the start of the insured's career is low. The term
premium might be lowered after five years, in line with the insured's improved income. Sum
Assured Minimum TK. 30,000. Term of policy if term is not converted premium will be due up to
70 years or till death occurred before maturity; And If term is converted the term will be of 10,
15, 20, 25, 30 or 35 years. Age at commencement 50 years (maximum) and Age at maturity 70
years (maximum). Payment mode are Quarterly, Half-yearly, yearly.
Advantages of Maturity on the Insured's survival until the conclusion of the policy term, the
whole Sum Assured plus earned bonuses (profit) will be given to him or her. On the death of the
Insured before or after the policy's maturity, the full Sum Assured plus accrued bonuses (profit)
will be paid to the Nominee(s).
Because there are so many kinds of insurers and life situations, the risk of having many exposure
units isn't as high. Because death is unpredictable and accidental losses are unavoidable, as the
primary objective of this insurance is to cover losses incurred because of the insured's death. It
is possible to calculate these losses. The recipients' deaths can be determined, as well as the
amount of financial loss they suffered because of their deaths. It’s a personal risk.
 Expected Term Insurance - Charkisti (Profit-Loss Based):
The policyholder can fulfill financial needs for several times during the term of the policy. Sum
Assured Minimum TK. 30,000. Term of policy 12, 16, 20, 24, 28 years. Age at commencement 55
years (maximum) and Age at maturity 70 years (maximum). Mode of payment Quarterly, Half-
yearly, yearly. Advantages of Age On the insured's survival until the conclusion of the policy's
term, the remaining 40% of the Sum Assured, plus earned bonuses (profit), will be paid to him or
her. It’s personal risk.

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 Hajj / Umrah Insurance (Profit-Loss Based):
By providing financial competence, this approach ensures Hajj and Omrah are completed on
time. Sum Assured Minimum TK. 30,000. Term of policy 10,15,20 years. Age at commencement
50 years (maximum) and Ageat maturity 60 years (maximum). Mode of payment Quarterly, Half-
yearly, yearly. This insurance is Personal Risk and Diversifiable Risk.
 Marriage / Mohrana Insurance (Profit-Loss Based):
By endowing financial competence to the Insured, this plan offers security for wife or right of
Mohrana. Sum Assured Minimum TK. 30,000. Term of policy 10,15,20 years. Age at
commencement 50 years (maximum). Mode of Insured Married male and Nominee/Successor
Insured’s wife only. Mode of payment Quarterly, Half-yearly, yearly.
The loss is immeasurable because there is no way to estimate or forecast this person's death. As
a result, when he dies, his wife will receive the amount owing to them for them to be able to
afford this insurance plan if they're living, and it covers accidental and unintentional losses, as
death can happen anywhere, at any moment. His wife will receive the amount. This is also under
Personal Risk and Diversifiable Risk.
 Bi-Annual Installment Insurance (Profit-Loss Based):
The Insured is paid in various payments, which is a common and commonly used plaa. Sum
Assured Minimum TK. 30,000. Term of policy 10, 15, 20 years. Age at commencement 50 years
(maximum) & Age at maturity 60 years (maximum). Mode of payment Quarterly, Half-yearly,
yearly. Advantages of Aging on the Insured's survival until the conclusion of the policy term, the
whole Sum Assured plus earned bonuses (profit) will be given to him/her. Allowance for Death
On the death of the Insured within the policy's term, the Nominee(wife) will get all the deposited
premiums with accrued bonuses (profit), as well as all the premiums due.
 Single premium insurance (without bonus):
By paying a single premium, the Insured receives double the Sum Assured. Sum Assured TK.
25,000 (minimum) to Tk. 50,00,000 (maximum). Term of policy 3 to 15 years. Age at
commencement 18 to 60 years. Age at maturity 74 years (maximum) and Mode of payment One
time. The Advantages of Maturity On the basis of profitability, the Insured will be paid twice the
Sum Assured if he or she survives until the conclusion of the policy term. Benefits for Death On

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the death of the Insured atany time during the policy's term, the Nominee(s) willbe paid adouble
of the Sum Assured. Surrender/Encashment Value Policy Surrender/Encashment Value is
available when the policy has been in force for two years. It’s an Enterprise risk.
 Deposit Pension Scheme (DPS):
This scheme mitigates the personal risk. The aim of this scheme is to provide insurance and
pension benefits to the people of the country at the same time. Monthly Premium Tk.500.00
(minimum) and Sum Assured Tk.2,00,000.00 (maximum). Term of policy’s are 8, 10, 12, 15 years.
Age at commencement 45 years (maximum). Age at maturity 60 years (maximum). Mode of
payment is monthly.
 Suhrid Samahar Bima (without bonus):
In this plan the rate of premium is very low as savings is not the main purpose. To ensure financial
security to the family is the objective of this plan. Sum Assured & Premium Tk. 1,00,000/- to Tk.
5,00,000/. Term of policy’s are 10, 12,15 years. Payment method is yearly or half yearly.
 Promise a Carefree Safe Life:
A large amount of Sum at Risk can be taken out with premiums of very low rate. This eliminates
personal risk, diversifiable risk, and commercial risk. This plan is introduced with a view to ensure
financial security to the family of the Member of group as a supplementary power to the
owner/management of an organization. The employer or the staff of an industry/a business
organization can pay premiums of the policy. If an accidental death occurred to a member of
group, full Sum Assured along with a sum equivalent to the original Sum Assured will be paid to
the family/dependent(s).
 Padma Smart Life Policy:
This scheme is under pure risk and personal risk. Very attractive plan that provide great risk in
exchange of a comparatively small one time premium. One Time Premium Tk. 1,000/-. Term of
policy is 01 year. Insurable Age 18 to 65 years.

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 Term Insurance (Profit-Loss):
Popular and the most common scheme. These types of schemes mitigate personal risk. High Sum
Assured at Affordable Premium, Easy to Understand, Multiple Death Benefit Payout Options,
Additional Riders, Income Tax Benefits, Critical Illness Coverage, Accidental Death Benefit
Coverage, Return of Premium Option these kinds of benefits are under TermInsurance (Profit-Loss).
Sum Assured Minimum TK. 30,000. Term of policy 10,15,20,25,30,35 years. Age at
commencement 55 years (maximum). Age at maturity 70 years (maximum). Mode of payment
quarterly, half-yearly and yearly.
 Expected Term Insurance:
Five installments (profit-loss based): The policyholder can fulfill financial needs for several times
during the term of the policy. Sum Assured Minimum TK. 30,000. Term of policy 10, 15, 20, 25
years. Age at commencement 50 years (maximum). Age at maturity 60 years (maximum). Mode
of payment quarterly, half-yearly and yearly.
Operations
Business operations refers to activities that business engage to increase the value of the
enterprise and earn profit. Padma Islami life insurance optimized their activities to generate
sufficientrevenue to cover expenses and earn profit for the business.Their employees help them
to accomplish the business goal which is to serve humanity for its wellbeing in the present and
the world here after by providing financial and moral gains through utmost good fight, good
conduct, mutual trust, sincerity, integrity, and personalized service by performing certain
functions. Padma life insurance vision is to become the best private Life Insurance Company in
Bangladesh and south-east-Asia through maintaining high degree of integrity, responsibility, and
transparency. Padma life Insurance maintains these operations for their business.
 Rate Making: Which describes the pricing of insurance and the calculations of insurance
premiums. The structure of rates should allocate the burden of expenses and costs in a
way that reflects as accurately the burden of expenses and cost. The rate produce
premium to meet total losses whichwillnot generate unreasonably large profit. Insurance
rates are revised slowly and based on previous experience or data. In life insurance the
mortality tables used are changed only every several years and in automobile insurance
rates are revised annually or even more often.

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 Underwriting: Insurance underwriting is central to all form of insurance. Underwriting
indicates that the process of selecting classifying the applicants for insurance. Padma Life
Insurance maintain all the criteria to make a better decision for the business. They assess
the factors that determine a potential customer’s risk profile. So, this is a process insurers
use to assess the risk of insuring a small business.
Some of the most important factors:
 Type of business
 Age of business
 Financial characteristics: (company size, sales, Assets)
 Financial condition: (credit, bankruptcies)
 Safety
 Loss prevention practices
These factors help to determine whether the company has risk factors.
 Productions:This describes theterm sales andmarketing activities of insurers. company
agent who sells insurance are frequently referred to as producers. Agent can analyze
client’s current insurance policies and suggest additions or changes and customize
insurance programs to suit individual clients. They also help policy holders settle claims.
 Claims Settlements: So, an insurance claim is a formal request to an insurance
company asking for a payment based on the insurance policy. The insurance company
review the claim for its validity and then pays out to the insured. So, the process begins
with a notice of loss occurred. Then claim investigation begins after reported. Once the
investigation is complete adjuster will go through policy and will make decisions about
settlement of claim.
 Connect with company
 Investigation begins
 Policy reviewed
 Damage evaluation
 Payment
 Reinsurance: It is described as insurance for insurance company. It’s a way of
transferring (ceding) some financial risk insurance companies assume in insuring cars,
home, and businesses to another company. The party that diversifies its insurance
portfolio is known as the ceding party. The party that accepts a portion of the potential
obligation in exchange for a share of the insurance premium is known as the reinsurer.