Insurance is nothing but the cooperative device that spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to unsure themselves against that risk.
Origin of insurance:
The origin of insurance are-
- Bottomry Bonds- loan taken against the pledge of vessel.
- Respondetia Bonds- loan taken against the pledge of cargo
- General Average- sharing the loss of one by all.
Functions of Insurance:
There are two types of functions of insurance. This are-
- Primary functions
- Secondary functions
Some primary functions are-
1. Provides certainty:
Provide certainty of payment at the uncertainty of loss.
2. Provide protection:
Provide protection against the probable chances of loss.
3. Risk sharing:
Loss is shared by all the persons who are exposed to the risk.
Some secondary functions are-
1. Prevention of loss:
Insurance companies are joining with such companies which engaged in preventing the losses of the society because the reduction in loss causes lesser payment to the assured and so more saving is possible which will assist in reducing the premium
2. Provides capital:
Insurance company provides capital to the society by investing the accumulated fund that they collect from people.
3. Improves efficiency:
Insurance companies improve the efficiency of insured person by eliminating worries and miseries of losses at death and destruction of property.
4. Helps for economic progress:
By protecting the society from huge losses of damage, destruction and death insurance companies help countries in economic progress.
No of insurance companies in Bangladesh:
There are 40 general insurance companies in Bangladesh. This are-
Sadharan bima. Agrani insurance. Asia pacific general insurance. Bangladesh co-operrative general insurance ltd. Bangladesh general insurance. Bangladesh national insurance, central insurance. City general insurance. Eastern insurance, federal insurance. Green delta insurance. Janata insurance. Karnafully insurance. Meghna insurance. Mercantile insurance. Nitol insurance. Northern general insurance. Paramount insurance. People’s insurance. Phoenix insurance. Pioneer insurance. Prime insurance. Progoti general insurance. Provati insurance. Purabi general insurance. Reliance insurance. Rupali insurance. United insurance.
Central insurance. Continental insurance. Dhaka insurance. Eastland insurance. Global insurance. Islami insurance. Takaful islami insurance. Standard insurance. Sonar bangle insurance. Republic insurance. Provati insurance. Pragati insurance.
Name of life insurance companies are-
Jiban bima corporation. National life insurance. Alico insurance. Delta life insurance. Express insurance. Prime islami life insurance. Shandhani life insurance. Rupali life insurance. Progressive life insurance. Pragati life insurance.
CHAPTER – 2
Background of company:
United Insurance Company Ltd. (UICL) is a leading insurance company (Non-Life) with a Credit Rating ‘A’ for its good corporate governance, sound management, prudent underwriting policy and its ability to settle claims properly.
Established in 1985 and enlisted with Dhaka Stock Exchange in 1990, it transacts a wide range of general business including health insurance.
An associate of Duncan Brothers (Bangladesh) Ltd., the largest British tea producers in Bangladesh, it is also a major shareholder of United Leasing Company, sponsored in 1989 by the Asian Development Bank, the Commonwealth Development Corporation and Lawrie Group PLC of UK.
Service of the company:
The service of the company are-
Marine insurance policy. Marine cargo, marine hull, fire insurance policy, public liability policy, product liability policy, machinery breakdown policy, boiler & pressure vessel policy, motor insurance policy, motor insurance policy, cash-in-safe, cash-in-transit, cash-on-premises, consequential loss, contractor’s all risk policy, health plan scheme, personal accident policy, erection all risk policy, industrial all risk policy, erection all risk policy, industrial all risk policy, fidelity guarantee policy etc.