Overall Activities of Delta Life Insurance Company

Main objective of this report is to analysis Accounts Departments and Overall Activities of Delta Life Insurance Company Limited. Also discuss about their services and rates which is different in different situation. Other objectives are find out their services and find out the different products. Here also find out the different types rates and find out the different types condition related on Accounts Department.

Introduction

The development of a country depends up on the consolidate development of all infrastructures like-agricultural sector, industrial sector, financial sector, technological sector etc. But developing all these structures is not easy. A lot of troubles and threats always hinder and make difficulties to success. The most difficult problem is financial risk. So if it is feasible to provide financial protection then most of the structural development will be achievable with minimal efforts. And the most well known practical method for handling financial risk is insurance.

Delta Life Insurance Company Limited was incorporated in November 10, 1986 and is mainly engaged in Ordinary Life (OL), Group Insurance (GI), Health Insurance (HI) business and non-traditional micro insurance business under the name of Gono-Grameen Bima (GN-GRB). The Company is a publicly traded Company and its shares are listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.

However, I have prepared this report on Delta Life Insurance Co. Ltd, which is one of the growing and prospective insurance companies in the insurance industry. The company is providing protection and financial security to the nation, whilst adding shareholders value thought customer service excellence. By the way of examining and evaluation the functions and performance of Delta Life Insurance Co. Ltd, I tried to illustrate a true scenario of insurance industry of Bangladesh.

The most important part of this report is the findings and analysis that means what I have found out throughout my study. My report topic is “Overall Activities Delta Life Insurance Co. Lid”. So, to get an accurate realization about Delta Life Insurance Co. Ltd. I also made an effort to present some Suggestions for the better interest of the company.

Basically, the major problems and facilities are similar for all insurance company as they are dealing with services. The difference can be made in one way, which is how well they are maintained their Accounts and dealing with their customer and most probably how efficiently and effectively they are operating their business.

Delta Life Insurance Company business started with the creation of product or service and ended with the attempt to sell it. Delta Life should start with the knowledge of the market. So, it is necessary to find out what is needed, what will be sold, only then should return the operation to create the product or service.

Purpose:

The purpose of this report is the writing purpose as well as to know about the activities of the companies, their activities, rates, performances.

Objectives:

  • Broad Objectives:

A broad objective is to find out the overall activities of Delta Life Insurance Company ltd. Also about their services and rates which is different in different situation.

  • Specific Objectives:
  1. To find out the general activities of Delta Life Insurance Company
  2. To find out their services.
  3. To find out the different products.
  4. To find out the different types rates.
  5. To find out the different types condition

 

Company overview & its Activities: Delta Life Insurance Company Limited was incorporated in November 10, 1986 and is mainly engaged in Ordinary Life (OL), Group Insurance (GI), Health Insurance (HI) business and non-traditional micro insurance business under the name of Gono-Grameen Bima (GN-GRB). The Company is a publicly traded Company and its shares are listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.

Delta Life’s Present Workforce*:

Head office and ordinary life         =   1200

Gono-Grameen Bima                      =   2121

Development                                     = 21679

Total                                                    = 25000

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.

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.

Industry overview: 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.

Vision:

  • We will be the premier life Insurance Company in Bangladesh
  • “Adding value” will be the operative words of organization
  • We will serve our customers with respects and will provide the best solution of their needs
  • We will be a Company with qualified professional who will work together as a team and serve with dignity and the highest level of integrity. We believe an excellence and customers with service beyond their expectations

Goal:

  • Provide financial security to our customers with insurance policies that are most suitable for them
  • Make life insurance an easy saving instrument and a profitable one with attractive bonus and improved customer service
  • Collect small savings from the people of our country and invest the accumulated savings in profitable nation building enterprises.

 

Delta Life’s Financial Position during last five years (figures in crore Taka):

YearPremium IncomeIncome from InvestmentClaim PaymentLife fund
2003159.5740.2432.97541.22
2004210.2556.4237.81680.83
2005257.5161.8452.65848.94
2006303.62105.8185.381059.97
2007338.06111.90170.741206.33*

Delta Life’s Present Workforce*:

Head office and ordinary life             =   1200

Gono-Grameen Bima                          =   2121

Development                                       = 21679

Total                                                    = 25000

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

Bankers:

  • Bangladesh Krishi Bank
  • Pubali Bank Ltd.
  • Uttara Bank Ltd.
  • Rajshahi Krishi Unnayan Bank
  • Standard Chartered Bank
  • Citi Bank N.A
  • National Bank Ltd.
  • Dutch Bangla Bank Ltd.
  • The HongKong & Shanghai Banking Corp.Ltd (HSBC)

 

The product of Delta Life Insurance Co. Ltd.

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.

SomePopularPlans

I. Endowment plan with and without profits 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 and without profit. 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 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 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 – 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.

The amount of installment and when payable is shown in the table below

TermAmount of installmentWhen payableAmount of Sum Assured payable on maturity
10 Yrs.20%Upon expiry of 4th, 6th, 8th yrs.40%
15 Yrs.15%Upon expiry of 4th, 6th, 8th, 10th 12th yrs.25%
20 Yrs.10%Upon expiry of 4th, 6th, 8th, 10th, 12th, 14th, 16th & 18th yrs.20%

IV. Premium back term Insurance plan without profits 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, 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. 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 without profits. Under plan 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 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 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 sum assured or a part thereof is also payable to the policyholder in case the child dies prematurely.

VII. Tri-dimensional Policy: 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: 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: 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 proposed. 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 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 per thousand sum assured per year shall be as following:

Term of PolicyTotal bonus at maturityAverage rate per thousand per S.A. year
10 yearsTk. 52,000Tk. 52
15 yearsTk. 81,000Tk. 54
20 yearsTk. 1,15,000Tk. 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.

Policy Documents and Micro Investment (Loan)

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 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. Exclusive features of Group Insurance are:
Insurance coverage to a number of individuals under a single contract

  • Simple insurable conditions
  • Easy administrative procedure
  • Prompt claim settlement
  • Affordable premium
  • Tax exemption on premium

Delta Life offers a host of Group-Life Insurance schemes from which an organization/ employer may choose for benefits of its members/employees, as may best serve their interest according to organizational setup.
To be treated as a group, the following criteria need to be fulfilled.

  • A “Group” Should comprise of at least 15 members
  • It should be a legitimately organized body

Group clients of Delta Life Insurance Company Limited include:

  • Semi-Government organization, autonomous bodies
  • Private, Non-Government Organizations (NGO’s)
  • Educational & Financial Institutions
  • Public Limited Companies
  • Associations, Business organizations etc

Group Life Insurance Schemes offered by Delta Life are of two types:

  • Traditional Schemes: for insurance coverage of members/employees of a group
  • Exclusive Schemes: for insurance coverage of clients of financial institutions

Traditional Scheme:
These are the commonly offered “Group-Life Insurance” schemes and are also known as Basic Schemes: These are:

  • Group Term Life Insurance Scheme (GT): ————————–} Short Term Contract
  • Group Term Life with Premium Refund Scheme (GTR)—— }
  • Group Endowment Life Insurance Scheme (GEN)————- } Long Term Contract
  • Group Pension Scheme (GP)———————————–}

    There are several variants of Basic Schemes. Examples of two variants of GTR are
    GTR-100/10: Group Term Life with 100% Premium Refund after 10 years
    GTR-50/10 : Group Term Life with 50% Premium Refund after 10 years

Salient features of the Basic Schemes:

Group Term Life (GT)
  • Insurance coverage worldwide round the clock.
  • Contract, Initially for three years and is Renewable.
  • Simple Claim procedure
  • Prompt claim settlement upon death of an insured.
  • Option to alter sum assured at any time.
  • Exclusion & Inclusion of members under coverage at any time.
  • Premium Rate– comparatively lowest among the basic schemes.
  • Option for supplementary covers to enhance benefit.
  • Profit Sharing options for large groups.

 

Group Term Life Insurance with Premium Refund (GTR)
  • Insurance coverage worldwide round the clock.
  • Contract, initially for ten/fifteen years.
  • Simple Claim procedure
  • Prompt claim settlement upon death of an insured.
  • Exclusion & Inclusion of members under coverage at any time.
  • Reasonable Premium Rate, but higher than GT Scheme.
  • Refund of basic premium (full/partial) on completion of term or retirement.
  • Payment of Surrender Value in case of Policy discontinuation & exclusion
  • Conversion Privilege to take Individual Life Insurance Policy in lieu.
  • Option for supplementary covers to enhance benefit.

 

Group Endowment Life Insurance: (GEN)
  • Insurance coverage worldwide round the clock
  • Continuous Contract, unless terminated by either party
  • Simple Claim procedure
  • Prompt claim settlement upon death of an insured.
  • Exclusion & Inclusion of members under coverage at any time.
  • Premium rate- age dependant and variable
  • Payment of sum assured as per contract on retirement.
  • Payment of Surrender Value in case of discontinuation.
  • Conversion Privilege to take Individual Life Insurance Policy in lieu.
  • Option for supplementary covers to enhance benefit

 

Group Pension Scheme
  • Provides for quarterly/ yearly pension based on last salary
  • Continuous Contract, unless terminated by either party
  • Scope for taking “Death in Service” benefit.
  • Scope of taking “Joint life last survivor pension” benefit.
  • Scope for life pension with/without guaranteed payment period.
  • Exclusion & Inclusion of members under coverage at any time
  • Premium rate– age dependant and variable
  • Payment of Surrender Value in case of discontinuation
  • Option for supplementary covers to enhance benefit

 

Features & BenefitsBasic Schemes
Group Term Life (GT)Group Term Life with Premium Refund (GTR)Group Endowment Scheme (GEN)
Age Limit for Insurance Coverage18 years to 60 Years18 years to 60 Years18 yrs. to the age of retirement (max. 60 yrs)
Duration of Contract3 years in each spell10 years or 15 years in each spellContinuous Contract, if not terminated
Scope for Inclusion & ExclusionYesYesYes
Scope for Alteration of Sum AssuredYesYesYes
Premium RateSingle & Fixed (irrespective of age), LowSingle & Fixed (irrespective of age)Variable; age dependant premium rate
Benefits:
Death (payment of Insured amount on death)YesYesYes
Maturity BenefitNoneNonePayment of Sum Assured as per contract
during retirement
Premium RefundNoneRefund of Premium as per contract on retirement or completion of term. Payment of surrender value in case of non
completion of term
None
Profit ShareProvided to large groups onlyNoneNone
Supplementary Covers e Basic SchemeOptionalOptionalOptional
(On payment of additional premium)
i) Accidental Death Benefit (ADB)
ii) Permanent Total Disability (PTD)
iii) Permanent Partial Disability (PPT)
iv) Dismemberment Benefit (DB)
v) Major Disease Benefit (MDB)
All or any one of those may be taken
except DB which is offered only with ADB
All or any one of those may be taken except DB which is offered only with ADBAll or any one of those may be taken except DB which is offered only with ADB

 

Supplementary Covers:

To provide insurance protection against few devastating conditions other than death, and to enhance insurance benefit in case of sudden accidental death, several Supplementary Covers are offered along with basic schemes. Supplementary covers include:

  • Accidental Death Benefit (ADB): Provides for double sum assured in case of accidental death.
  • Permanent and Total Disability Benefit (PTD): Provides for full sum assured on happening of defined risks.
  • Permanent & Partial Disability Benefit (PPD): Provides for certain percentage of the sum assured as per schedule on happening of the defined risks.
  • Dismemberment Benefit (DB): Provides for a certain percentage of Sum Assured as per schedule on happening of the defined risks. It is only offered with ADB.
  • Major Disease Benefit (MDB): Provides for 25% or 50% of S.A. upon diagnosis of a few specific life threatening diseases

Exclusive Schemes:
These are schemes, especially designed for financial institutions, in order to secure their investment and adorn the product to make it attractive to customers as well as to protect interest of the client. Few examples are:

Home Loan Insurance: e.g; Scheme for “Home Loan Borrowers” of Delta Brac Housing
Depositor’s Insurance: e.g; Scheme for “Smart Plant” Depositors of Dhaka Bank Ltd

Premium:
For traditional schemes: Premiums are usually payable annually in advance before commencement of insurance.
For exclusive schemes: A single premium is payable for the whole period of coverage before commencement of insurance.

**Details about the schemes are provided with “Insurance Proposal” **

How to get a Group Life Insurance Proposal?

For Proposal: fill in the Proposal Request Form and send it to us at our contract address

For Quotation: fill in the “Proposal Request Form” and send it to us at our contract address accompanied by the list of members to be insured with following details.

Sl. No.NameDesignationDate of Birth*Sum Assured
     

 

Health Insurance

Health Insurance is now considered indispensable in developed countries. In the present financial-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:


Hospitalization (In-patient) treatment coverage plans

  • Hospitalization Insurance Plan (Group)– offered to Members of a group and their dependants (if desired)
  • Hospitalization Insurance Plan (Individual) – offered to an Individual and/ or his/her dependant family members also known as “Delta Care Hospitalization Plan”.

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.

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 upto 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.

Premium (For each insured per year) in Taka

Age Attained (in Years)
Benefit GradesMastercareSupercareDeluxecareExclusivecareRoyalcare
18 to 35 Yrs
Employee6001,0801,5351,9203,360
Spouse5109201,3101,6302,855
35+ to 45 Yrs
Employee7501,3501,7952,1603,780
Spouse6351,1451,5201,8353,210
45+ to 50 Yrs
Employee1,0501,8902,3002,6404,620
Spouse8951,6051,9552,2453,930
50+ to 55 Yrs
Employee1,5002,7003,0603,3605,880
Spouse1,2752,2952,6052,8554,995
55+ to 60 Yrs
Employee2,1003,7804,0754,3207,560
Spouse1,7853,2153,4203,6706,425
60+ to 65 Yrs
Employee3,1505,6706,1136,48011,340
Spouse2,6784,8235,1305,5059,638
Each Child (Below 25 yrs.)5109201,3101,6302,855

Maternity Benefit (Maximum in Tk. as per benefit Schedule above)

 MastercareSupercareDeluxecareExclusivecareRoyalcare
Normal Delivery5,0007,50010,00012,50015,000
Caesarian Delivery10,00015,00020,00025,00030,000

For Maternity Benefit, an Extra Premium @40% shall be charged on the Basic

Premium of the beneficiary group.

Group Discount Schedule No Claim Discount Schedule
Size of the GroupPercentage of Discount (%)No Claim Year(s)Discount on
Renewal Premium
Up to 100
101 – 500
501 – 1000
1001 – 2000
2001 & Above
Nil
5%
7.5%
10%
12.5%
One Year
Two Consecutive years
Three Consecutive years
10%
20%
30%

VAT if imposed by government, shall have to be paid by the organization concerned.

N.B: For large groups a “fixed premium rate” irrespective of the age is offered on receipt of the list of members to be insured.

Customized Plan:-
Benefit Schedule & Premium Rate

  • Benefits desired has to be provided by the client
  • A “fixed premium rate” irrespective of age is offered on receipt of the list of members to be insured.

How to get a Group Hospitalization Insurance Proposal?

For Proposal: fill in the Proposal Request Form and send it to us at our contract address
For Quotation: fill in the “Proposal Request Form” and send it to us at our contract address accompanied by the list of members to be insured with following details.

Sl. No.NameDate of Birth*StatusBenefit Grade
.    

Status means rank of an employee or his relationship with dependant (spouse/children).

Individual Hospitalization Insurance Plan

Bengali Leaflet

Proposal Form

Overseas Mediclaim Policy
This is a distinctive Health Insurance Policy issued to travelers only. It is also a pre-requisite for Visa application of developed countries. The Policy is issued to Bangladeshi Nationals and Foreigners resident in Bangladesh

OMP issued by Delta Life is universally accepted by all foreign Embassies in Bangladesh.

Types of Policy
Plan –A : for visiting any Country of the World (except USA & Canada)
Plan –B : for visiting all Countries of the World
Coverage under both Plan –A & Plan –B exceeds EURO 30,000
Key Features of the Policy

Age Limit: Policy issued to Individuals from the age of 6 months to 65 years.
Nationality: Policy issued to Bangladeshi and Foreigner Resident in Bangladesh.
Covered Expenses: Treatment expenses incurred for sudden and unexpected illness or accident while on tour abroad.
Maximum Benefit:
Plan-A US$ 50,000
Plan-B US$ 1,00,000

How to take out an “Overseas Mediclaim Policy”

Fill in a “Proposal Form”
Attach Photocopy of the first five pages of the passport
Enclose requisite premium (Cash) as per “Rate Chart”
Send those these to Health Insurance Department at the Head office of Delta Life

  • Physical presence or Photograph of proposer is not required.
  • Only about 30 minutes time is needed to issue a Policy
  • “Proposal Form” is also available at Head Office and Agency Offices of Delta Life “Premium Rate Chart”

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 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 PolicyTotal bonus at maturityAverage rate per thousand per S.A. year
10 yearsTk. 52,000Tk. 52
15 yearsTk. 81,000Tk. 54
20 yearsTk. 1,15,000Tk. 58

 

Life fund: Beginning year life fund+ Current year life fund = Bigger amount

Income – Expense = Life fund

There are different types of account code maintain by the Delta life Insurance Company Limited. Because of some benefit this are:

  • Maintain the fund easily
  • Easy to find out
  • Keeping section wise
  • Break up lengthy process
  • Easy to entry

There is a chart of a account code system to maintain the procedures used by the Delta

Life Insurance company Limited are given bellow:

                    Head of AccountsCurrent code
                    Agency

Commission

. 1st year4-10-001-010-001-010
I.C bal2-30-001-010-010-010
Renewal4-10-001-010-020-001
                        U.C

Commission

1st year4-10-001-010-001-020
I.C bal.2-30-001-101-010-020
                       A.M

Commission

1st year4-10-001-010-001-030
I.C bal.2-30-001-010-010-030
               A.C & Above

Commission

1st year4-10-001-010-001-040
I.C bal.2-30-001-010-010-040

Accounts Control: There are two types of account control systems for maintaining the accounts of Delta life Insurance Company limited.

Accounts Control———————1) Cash system

2) Crual system

Cash system: Cash system is a system which is used by Delta life Insurance Company limited to maintain the cash received and payment only based on daily basis. Use some documents and bank memorandum or vouchers. Without cash basis others accounts are not included here.

Crual system: Here only those payments are included which are payable in future or could be earn in future. No cash payments are included here. This is used for future transaction.

 

Account circle: There is a account circle maintain by the Delta Life insurance Company Limited. This is given below:

The main service of Delta Life insurance company limited is Ordinary Life insurance. This Ordinary Life insurance uses three types of documents for its procedures. These are

  • R (present receipt)
  • Daily receiving statement
  • Check credit advise

These three types of documents used by the company to make easier transaction and early settlement. In present receipt used for collecting present documents. In daily receiving statement it has Date, Amount, branch name, bima number in the chart. Check credit service is used specially for early settlement.

In Ordinary life insurance there are some expenses for the company. These are

  • Agency commission
  • C commission
  • C commission

All these have three types of payments. These are:

  • 1st year commission
  • C commission
  • Renewal commission

 

Accounts book & register: There are different types of accounts book and register maintained by Delta Life Insurance Company limited these are:

  • Cash book
  • Cheque issue register
  • Cheque receive register
  • Agent office petty expense register
  • Claim payment register (Head wise)
  • Premium payment register
  • B M collection register
  • B M summery register
  • Fund receive register
  • Fund transfer register
  • PM stock register
  • BM stock register
  • Motor cycle loan recovery register
  • Office rent and advance rent register
  • Furniture stock register
  • Stationary stock register
  • Key stock register
  • Bank account register
  • Car maintenance register (Folio wise)
  • Petrol register (Company’s vehicles)
  • Telephone register (office & resident)
  • Revenue stamp purchase register
  • Furniture purchase register
  • Ta/Da payment register
  • Stationary purchase register
  • Office maintenance register
  • Legal expense register
  • Postage expense register

Audit: There are two types of audit maintain by every company .Delta life insurance company limited also use two types of auditing system.

1) Internal audit

  • Pre audit
  • Post audit
  • Inspection audit

2) External audit

  • Commercial audit: appointed by the share holders]
  • Government audit: appointed by the controller of insurance
  • Special audit: Particulars
  • Special audit: Control by director

Queries: There are different types of queries made by Delta life insurance Company limited for better performance these are:

  • Verification
    • Cash
    • Stamp
    • Stock
  • Premium collection & banking
  • Late deposit
  • Mis-Serial of Present receipt
  • Bank recondition
  • Cheque honour
  • Cheque dishonour
  • Advice
  • Cash book balance
  • Payment
  • Voucher
  • Purchase
  • Proper head of accounts code
  • Commission related payment
  • License
  • Approval
  • Signature verification
  • Double payment
  • Stamp act

Related sector with service centre:

There is some related centre with the service centre. This helps to complete the activities of service centre. These are:

  • Accounts Section
    • General accounts
    • Receipt and payments
    • Commission
  • Service section
  • General
  • Renewal premium adjustment
  • Alteration
  • Docket
  • Photocopy
  • Underwriting section
  • Underwriting
  • New business
  • Policy issue

 Last 5 years performance:

A) Life Fund :

  (Tk. In Crore)Remarks
 20032004200520062007
Life Fund      541.21      680.83      849.40    1,042.11   1,206.36 

B) Investment :

  (Tk. In Crore)Remarks
 20032004200520062007
 370.36486.25605.30799.85996.11 

C) Premium Income :

   (Tk. In Crore)Remarks
DivisionType20032004200520062007
Ordinary Life 110.00 125.45 145.53 164.52 186.02  
Gono Grameen 61.56 76.26 103.17 127.94 141.27  
Group & Health Insurance8.01   8.54  8.81  10.98 13.89  
Gross Premium179.57 210.25 257.51 303.44 341.18  

D) Investment Income :

  (Tk. In Crore)Remarks
 20032004200520062007
Investment Income40.0456.2260.6789.58112.56 

E) Claims Payment :

  (Tk. In Crore)Remarks
 20032004200520062007
Claims32.9737.8152.6091.41177.18 

Business Growth:

 20042003200220012000
Premium (in%)17.0919.0413.2510.777.39
Assets (in%)23.1123.8523.8325.1224.13
Life fund(in%)25.8024.6026.7328.3629.45

 

Present Premium Collection through Banks as follows:

ORDINARY LIFE

Name of BanksNo. of BranchesAmount (Tk. In Crore)2007Amount (Tk. In Crore)2006
Pubali Bank Ltd.18017.9217.56
Bangladesh Krishi Bank30023.1722.70
Rajshahi Krishi Unnayan Bank1247.156.58
Agrani Bank Ltd.33.09.09

 

GONO-GRAMEEN BIMA DIVISION 
    
Name of bankNo. of branchCollected premium amount      (Tk. In Crore)
20072006
Pubali Bank Limited239            56.51            51.18
Bangladesh Krishi Bank327            50.85            46.06
Rajshahi Krishi Unnayan Bank142            25.32            22.59
Uttara Bank Limited10.32 0.45
Janata Bank Limited5              1.26              1.69
Agrani Bank Limited40.61                0.11
Sonali Bank Limited5              1.30              1.35
Rupali Bank Limited9              3.41              3.10
Islami Bank Bangladesh Limited1              1.54              1.41
Mercantile Bank Limited10.13 
Total734     141.27           127.94
    

 

Present Collection Procedure:

ORDINARY LIFE

We open an account with Bank and send a BM (Bank Memorandum) book to the respective Bank for premium collection from our policyholders with  the following standing instructions:

Standing Instructions:

  1. All day to day receipts through BM will be accepted in this “Current Account”
  1. Our BM will be issued by the bank only for collection of premium and other deposits in cash to the credit of our STD/Current-cum-BM Collection Account
  1. In case of Cheque deposit no BM will be issued before cheque encashment. BM will be issued only after encashment of the cheque against credited amount.
  1. Since the BM is treated as cash receipt of money, therefore, BM can only be issued by the authorized officer/staff of the bank and BM book not to be handled by anybody else other than authorized persons of bank. Once a BM is issued by the bank it will be treated as cash deposit to our account.
  1. Each bank Memorandum book contains 100 receipts in five copies and while issuing a receipt against a collection, the copies shall be distributed as under.

1st Copy:   To be delivered to the depositor.

2nd Copy:  To be sent to our central office at Uttara Bank Bhaban (11th floor) 90 Motijheel  C/A, Dhaka at the end of each week. (BM issued against NEW BUSINESS may be handed over to the depositor in a closed envelope on his/her request taking his/her signature, name and code number.

3rd Copy:   To be sent to our Central office at “Uttara Bank Bhaban (11th floor) 90 Motijheel C/A. Dhaka” with  your monthly bank statement including all debit and credit advice in original by the 1st week of the following month. Please note that BM number should be mentioned in the “particular” column of the bank  statement.

4th Copy:  To be attached with bank voucher by your branch.

5th Copy:  To be retained in the receipt book at your branch.

  1. Bank Memorandum (BM) should be issued serially according to book number (when more than one book will be supplied) and page number. No BM should be issued dating back. If any BM is canceled for any reason whatsoever, the first three copies of the canceled BM including the original one should be sent to the aforementioned address.
  1. Levy if any is to be deducted by the branch as per Govt. direction from the deposit of this account.
  1. The amount accumulated in this STD/Current account for a month be transferred automatically to the “Delta Life Insurance Company Limited Main STD Collection Account  positively by the 7th day of the following month under intimation to us.
  1. No prescribed form and other formalities will be necessary to open this account. Our application in company’s letterhead will serve the purpose.
  1. No Cheque book is required and generally no withdrawal should be entertained on this account except usual transfer as advised.
  1. Initially no cash deposit is required to open a Current-cum-BM Collection account. Our collection through BM will serve this purpose.
  2. In no case cash deposit be refused even if proposal/policy number is not    mentioned by the depositor. The name of the depositor will serve our purpose.


Challenge of the DLICL

Delta Life Insurance Company business started with the creation of product or service and ended with the attempt to sell it. Delta Life should start with the knowledge of the market. So, it is necessary to find out what is needed, what will be sold, only then should return the operation to create the product or service.

Today, Life Insurance Company is considered as a service organization. For the process of conducting its own activities to achieve its own goal i.e. making and assuring benefit, a fast growing leading insurance company considered services the following ways:

  • Solving all customer services and conservation related problems.
  • Ensure the policy should be under write.
  • Deposit the premiums.
  • Ensure all kinds of claim benefits.

The normal function of insurance company to selling their product as basis of their customer’s life risk. Here risk is defined as the opening the policy, company will give all the benefits including the risk coverage. Thus in the course of its activities, an Insurance company contract with different groups of people on the basis on some: and criteria they also called our respective client’s.

So, the better consideration of the successful in Insurance business to achieve the selling products, but it is too much important to ensure the customer service accordingly. It is observed that better performance of Insurance to conducting and performs better service for reputation of the clients.

It is possible to improve those factors or take remedial actions in relation to Insurance companies in order to make their company attractive.

 

SWOT ANALYSIS

Not surprisingly, in the competitive arena of marketing era SWOT analysis is a must based on product, price, place and promotion of a financial institute.. From the SWOT analysis we can figure out ongoing scenario of the bank. So to have a better view of the present

SWOT Analysis

  • Internal factor
    • Strength
    • Weakness
  • External factor
    • Opportunity
    • Threats

 SRTENGTH:

  • Quality of the Delta Life management
  • Location of the Delta Life sales & Agency Office
  • Good banker-customer relationship.
  • Financial condition of DLICL
  • Environmental constraints
  • Personal relationship with the DLICL employees

WEAKNESS:

  • Have not the same position in all the branches.
  • Sometimes it could not get its target in service center.

OPPORTUNITY

  • Huge business area.
  • Introducing on line system all over the country in insurance business.
  • Growth of sales volume.
  • Introducing more branches.
  • Develop relations and correspondence with foreign Insurance companies.
  • Could make contacts with more banks

THREATS:

  • Other Insurance Companies in Bangladesh.
  • Different classic service of other Insurance Companies.
  • Political unrest and Economic recession.
  •  Illegal business operation by the some clients.

 

Findings & Analysis:

The subject matter of this study includes the facto’s influencing the choice Delta Life, Thus the analysis of results and findings will be related with this topic.

Factors influence the choice of Delta Life

 Types of clients and factors influence the choice of Delta Life

Although respondents have been given 11 factors to rank in order of preference, it is observed that they ranked on the average only four to six factor’s, it is also found that:

  1. Quality of the Delta Life management.
  2. Location of the Delta Life sales & Agency Office.
  3. Reputation of Delta Life.
  4. Personal relationship with Delta Life s employees are normally considered by most of the respondents. So for the analysis of this study only these four factors have been taken into accounts.

Table Average ranks given by the clients of Delta Life.

 

Respondents
Quality of the Delta Life ManagementLocation of the Delta Life OfficeReputation of Delta LifePersonal relationship with the Delta Life employees
Client’s3142
No of Client’s response50664855

(Both arithmetic mean and mode showed the same result)

Table: showed that “location of the Delta Life office” has got the first rank in case of 66 respondents out of 79 respondents with the Delta Life. It is viewed that 55 respondents have opined this factors as second rank, 50 and 48 respondents chose “Quality of the Delta Life management” and reputation of Delta Life as the third and fourth rank respectfully.

 

Clients Ranking

Table:. Shows the average ranks given by Beneficiary

Types of beneficiaries and factors influence the choice of Delta Life

Respondents

Factors

Quality of the Delta Life ManagementLocation of the Delta Life OfficeReputation of Delta LifePersonal relationship with the Delta Life employees
Client’s1243
No of Client’s response16151412

(Both arithmetic mean and mode showed the same result)

 

Types of beneficiaries and factors influence the choice of Delta Life

Respondents

Factors

Quality of the Delta Life ManagementLocation of the Delta Life OfficeReputation of Delta LifePersonal relationship with the Delta Life employees
Executive perception about customers ranking4322
Client’s Ranking3232
Beneficiary Ranking2243

Table shows that depositor’s gave the first ranking to the Delta Life branch and second rank to personal relationship with the Delta Life employees” whereas borrowers selected “quality of the Delta Life management” as the firs factor and “location of the Delta Life branch” as the second factor.

Factors influencing the respondents at the time of choice of Delta Life Insurance Company: Customer (both clients and beneficiaries) ate the time of selecting Delta Life Insurance Company. Their ranking of factor’s in order of preference and executives perception about customer ranking are as follows:

FactorsClients RankingBeneficiaries RankingExecutives ranking (perception about customer )
Quality of Delta Management314
Location of the office122
Reputation of Delta441
Public relation with the delta Employee233

 

It viewed that:

  • The ranking of the above respondents are not same, clients’ emphasized location of Delta Life sales office and other’s agency office as their ranking whereas beneficiaries give important to quality of the Delta Life management as the first rank in choosing Delta Life. On the other hand, executive’s perceptions about customers ranking is totally different from the customer ranking. Executives think that customer’s choose Delta Life on the basis of good reputation of the insurance company.
  • The ranking of customer (both client’s and beneficiaries) of Delta Life is positively correlated. Both the groups are influenced by most of the same type of facto’s.
  • The ranking of clients and that of executives are negatively correlated. That the executives of Delta Life. Have little idea about the factors that influence by the clients of Delta Life Insurance Company Ltd.
  • The ranking of customer’s and that of executives are negatively correlated. So, it can be concluded that executives of Delta Life, have idea about the factor’s influence the customer choice.
  • Its one of the renowned company in to the country.
  • The performance of Delta Life Insurance Company is getting better day by day.
  • Financial growth of this company is very good
  • Having contractual agreement with some foreign banks
  • Huge capital
  • Better performance
  • Getting more from ordinary life insurance than others
  • Making movement in socioeconomic security
  • Good banker-customer relationship
  • Sometimes take longer to meet up claims
  • Have to give more and more importance on customers satisfaction & value


Recommendations:

It is an auspicious for Delta Life as a well reputed leading insurance company of Bangladesh. This has been able to attract customer. Delta Life facing extensive competition from the new entrants and the other insurance company. So, to increase market share and to retain customers it should take proper policy and strategies that can play vital role on the present competitive situation in the insurance sector. The following measures should be under taken to improve more the insurance business of Delta Life.

  • The findings of this study observed that the executives of DLICL, have little judgment (idea) about their customers. So in this case, training program should be under taken to develop the interpersonal dealings of the DLICL employees.
  • As both clients and beneficiaries are influenced by most of the same factors. So DLICL should give importance or priorities to allure customers by developing or formulating the same strategies or policies for clients and beneficiaries.
  • As the bank choice of customers (both clients and beneficiaries) are related with the customers’ satisfaction, so it should improved the performance of promises in time, personal attention to the clients, tangible Insurance facilities and courteous and knowledge of insurance employees.
  • “Quality of the DLICL management”, “Reputation of DLICL”; “personal relationship with the employees” and “Location of DLICL office” implies the implicit cause of insurance choice such as perceived risk by customer. So the management of DLICL should take the corrective measures to reduce the financial risk, performance risk, physical risk, social risk and psychological risk perceived by customers.
  • The choice factors of bank implicate the customers’ perceptions of value including two sides total customer value and total customer cost. So the management of DLICL should try to equalize the value between the two sides.

 

 

Conclusion:

Delta Life insurance Company is one of the leading insurance Company in Bangladesh. The performance of Delta life Insurance company is getting better day by day. Its premium, assets, claims meeting, utilization of income is getting better in last five years. The study is about the activities of delta Life Insurance Company limited, its cash payments, claims meeting, premium collection, service offered, products etc. The study also has showed that the factors are related with the customer perceived risk and customer’s value and cost furthermore, the study has identified that the DLICL’ customer (both Clients and beneficiaries) are influenced by most of the same factors.

Here Delta life insurance company limited could improve its marketing strategy for customer satisfaction. Overall we can see that Delta life insurance Company limited is one of the progressive Insurance Company in Bangladesh for its servicing and its better performance.