Chapter-01: Page - 1

Introduction
CHAPTER- 01
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1. Introduction
1.1 Background of the Study
In the south Asian region, a newly emerging economy is Bangladesh. With the rapid
development of trade and commerce Bangladesh has remarkable GDP growth and per capita
income. Industrialization and foreign trade increases in a significant magnitude. Income growth
of the country people and increased literacy rate make the people more about the savings habit.
Insurance is considered as one of the major tools of savings and financial security in unwanted
contingencies. As Bangladesh is a country with majority of Muslim people, Takaful business
model of insurance is prevailing like other Muslim countries in the world. There are very few
Islamic life insurance company compared to the conventional insurance companies in
Bangladesh. As post graduate students of insurance discipline we have to learn the business
operation of Takaful insurance companies of Bangladesh. We need to match the theoretical
knowledge with the practical application of general insurance. Being assigned by our honorable
course teacher, Mr. Md. Muzahidul Islam, Professor, Department of Banking and Insurance
under the course Takaful &Islamic Insurance, we studied on the life insurance companies of
Bangladesh which have been operating their business following the Islamic Shariah and Takaful
model.
1.2 Objective of the Report
Takaful Islamic insurance is not same as the conventional insurance. In conventional insurance
there are many element of Gharar or uncertainty regarding the investment, claim settlement and
premium payment. In conventional insurance there is no consideration of the prohibition of
interest (Riba). Basically conventional insurance is based of risk taking not risk management like
Takaful insurance.
Broad Objective:
To get the details knowledge of Takaful Islamic insurance and its operation in Bangladesh
is the major objective of this report.
To get the relation between theoretical knowledge to practical experience in general
insurance sector.
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Secondary Objective:
Besides the broad objective some other secondary objective of this report are given below:
To get the overview of the type of policies offered by the Islamic insurance
companies of Bangladesh.
The financial performance analysis of the companies.
The comparable position of those companies
The positions of the companies in the context of premium collection, life fund and
asset
Details features and benefits of the companies.
1.3 Rationale of the Report
Insurance makes a significant contribution to economic growth by promoting itself as the risk
management instrument for the people. It is also an efficient risk management tools for the
individuals who want to secure himself and his family belongings from unwanted contingencies.
As there are some problems with the conventional insurance business from the context of Islamic
Shariah compliance. So many people of Bangladesh are reluctant to take insurance. Lack of
knowledge regarding the availability of Islamic insurance products is another reason behind this.
This study will help those to get the overview of Takaful Islamic insurance products offered by
Bangladeshi Islamic insurance companies and its facilities. And as post graduate of insurance
disciple we can also enrich our theoretical knowledge with practical experience. In-depth
knowledge of the different insurance policies, its financial performance and other operational
activities will enrich the knowledge of Takaful & Islamic insurance.
1.4 Methodology of the Report:
Islamic life insurance companies operating in Bangladesh are the subject of the study. The
products, financial performance and a comparative assessment among the companies are shown
in the study.
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1.4 .1 Company selection

Although at present there are seven Islamic insurance companies in Bangladesh but only three
are in operation. The companies are Fareast Islami Life Insurance Company Limited, Padma
Islami Life Insurance Company Limited and Prime Islami Life Insurance Company Limited. The
other four new companies are Zenith Islami Life Insurance Limited, Alpha Islami Life Insurance
Limited, Mercantile Islami Life Insurance Limited and Protective Islami Life Insurance
Company Limited.
1.4.2 Data collection
Both primary and secondary sources are selected for the study.
Primary source
Companies were visited to collect necessary information. Dhaka Stock Exchange was visited to
collect the financial information of the respective companies from 2008 to 2012.
Secondary Source
Text books on life insurance and Islamic life insurance
Reference books on life insurance and Islamic life insurance
Annual report of three companies
Web sites of respective companies
Brochures provided by the companies
Web site of Insurance Development and Regulatory Authority (IDRA)
1.4.3 Data analysis
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Data are analyzed from two perspectives. One is individual company financial data analysis and
comparative financial data analysis. Business performance analysis, growth analysis and ratio
analysis are conducted for each company and a comparison is made among the companies.
1.4.3.1 Business performance analysis
For business performance analysis, gross premium, claim, investment income, net premium,
asset are selected.
1.4.3.2 Ratio Analysis
Five ratios are selected for the financial performance analysis. These ratios are very much
relevant in evaluating financial performance of insurance companies.
Return on Asset
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
how efficient management is at using its assets to generate earnings. Calculated by dividing a
company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this
is referred to as "return on investment".
The formula for return on assets is:
Return on Asset = Net Income/Total asset
Return on Equity
The amount of net income returned as a percentage of shareholders equity. Return on equity
measures a corporation's profitability by revealing how much profit a company generates with
the money shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder's Equity
Net Investment Income Ratio
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A metric used in financial reporting that expresses the comparison between the income earned
from investments and earned premiums. NII is a measurement of investment strength.
NII is expressed as a percentage and calculated as:
Net Investment Income Ratio= Investment Income/Premiums earned
Loss Ratio
The loss ratio shows what percentage of payouts are being settled with recipients. The lower the
loss ratio the better. Higher loss ratios may indicate that an insurance company may need better
risk management policies to guard against future possible insurance payouts.
Loss ratio is expressed as a percentage and calculated as:
Loss Ratio = Claim payment/Premiums Earned
Expense Ratio
The percentage of premium used to pay all the costs of acquiring, writing, and servicing
insurance and reinsurance. The lower the ratio the better.
Expense ratio is expressed as a percentage and calculated as:
Expense Ratio= Management Expenses/Premiums earned
1.4.3.3 Growth analysis
Asset, life fund and premium are selected for trend analysis of individual company. Life fund,
asset, premium and ratios are selected for comparative growth assessment among the companies.
1.5 Limitations:
This report if not out of limitation. Those limitations make my report more concise. The most
common problems that I have faced during conducting the study are given below:
The most common problem was the unavailability of suitable time of the personnels
during the busy office hours.
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The website of some company was not rich with information. One of the company
website and product details was in Bengali language.
The presentation of financial statement was not standard.
Because of non-discloser of underwriting expense, number of lapsed policy we could
not calculated some important ratio
No soft copy of financial statements of the companies.
Lack of information of newly registered Islamic insurance company because of nonoperation.
Despite those limitations we have tried hard to have a complete overview of business
operation by the Islamic insurance companies of Bangladesh.
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Literature Review
CHAPTER- 02
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Meaning of Takaful
Takaful is a form of mutual assistance (Ta'awun) strengthened by aiding the ones who are in
problems and deserve to be helped (Asyraf et al., 2009). According to him, Islamic Scholars have
begun to accept and conclude to the viewpoint that Takaful is according to Shariah principles.
Numerous Islamic conferences are being held and Shariah Councils are emphasizing by creating
awareness amongst the Muslims that Takaful operations are free from non Islamic elements thus
the development of Takaful in the market is to cater to the needs of Muslim by providing them
products and services in accordance to Islam.
Overtime, greater understanding on the concept of Islamic Insurance has emerged as the concept
of Takaful, based on the contract of Tabarru (donation) and Mudarabah profit sharing. Takaful is
an alternative form of Conventional Insurance based on the concept of trusteeship and
cooperation inspired by the beliefs of the followers of Islamic teachings (Bakar, 2000). It can be
concluded that Takaful is an Islamic way of dealing with uncertainties via mutual assistance and
it is social scheme developed on the principals of brotherhood, solidarity and mutual assistance.
Takaful is rooted from an Arabic word Kafal, which means that ones needs should be taken care
of. According to this, scheme participants jointly agree to bind themselves against damages
caused by hazards. Takaful is a legally binding agreement between all the participants of the
scheme to pay any of the members who suffers a loss as specified in the Takaful certificate
(Browne et al., 1993).
Muhaimin Iqbal et al. (2005) explained Takaful as a scheme that is derived from the concept of
Ta'awun and the concept of Takaful is similar to Conventional mutual risk sharing. Takaful has a
fixed maturity period and is considered long term saving tool. Apart from giving benefits of
return, it also provides a mutual financial assistance among participants. Bank Negara Malaysia
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explained it as a program that pools efforts to help the needy in times of need due to immediate
deaths or mishaps resulting in personal injury or disablement.
Scholars like Dr.Yusof Qaradawi (July 2007) stated Our observation that the modern current
practices are objectable Islamic ally does not mean that Islam is against Insurance: it only
opposes the means and methods. According to the author, the Islamic insurance companies will
use the contract of donations and provide compensation and the operation of the company shall
not get engaged in any non Islamic elements.
Historical perspective
Muslims were involved in Marine activities in the Mediterranean and Indian Ocean from the
seventh century on (Chaim-Vardit,2009). The rough model of Takaful was practiced by Arabian
tribes, holding to the principal of pooled resources to help the needy on the voluntary basis
(Masum Billah, 2001). Tamim become the first insurance term in Arabic only in 20th century and
it is believed that Ibn Abidin, a Hanafite Jurist who died in 1836,is the first muslim to coin name
Insurance Sukara (security) influenced by Italian term Siguare and Turkish Sigorta (Redzuan et
al., 2009).
Merchants of Mecca used to form a group of Mutual funds with a purpose to help the victims or
survivors of natural hazards during their commercial ventures into Syria, Iraq and other
countries. Such a practice was supported and even contributions were made by Prophet
Muhammad (P.B.U.H) while trading with the capital of Hazrat Khadija (Aziz-Abdul, 2005).
Holy Prophet (P.B.U.H) emphasised that a Muslim should protect itself from hazards and risks
via transfering the risk through Takaful Model. The life of a Muslim is Controlled and destined
by Allah (S.A.T) but it does not mean that a Muslim cannot protect itself but indeed a Muslim in
Islam should gurad itself from misfortunes, hazards, risks and uncertainties (Billah, 2001).
Types of Takaful Structures
There is no single best model that exists for Takaful. Shariah scholars worldwide concur on
fundamental components that characterize a Takaful scheme, yet in their judicial opinions
(fatwas), operational differences are tolerated as long as they do not contradict essential religious
tenets (Sherif, 2010).
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There has been a tremendous research done on the Takaful models which includes work of
prominent authors like Maysami (1999), Hassan, Rahim and Wahab (2007).
According to Hassan, Rahim and Wahab (2007) for the Mudarabah contract to be allowed and
carried in Islam requires a number of elements to be present:
The capital provider (participant);

The entrepreneur (Takaful operator);
Capital an appropriate activity;
Profit and loss sharing and offer and acceptance.
In the mudaraba contract, the two parties know as provider (rab ul maal) and the entrepreneur or
Takaful operator (mudarib) operates on a joint venture basis.
The other Takaful model is known as agency or wakala model. On the basis of this principal, a
person delegates his right or business to the other people/person to act as his agent or wakil. The
agent is responsible to contribute his knowledge, skills, and abilities in performing the tasks
assigned to him in the best manner. Rashid et al (2006) stated that under a typical wakala model,
the Tabarru (donation) remains the property of the participants unless consumed, as they have the
right to receive the surplus back and therefore it becomes a conditional gift.
Waqf model-this model operates on non-profit basis that collects donation from individuals or
firms who willingly want to contribute something positive to the society. Social organizations
and enterprise are engaged in such type of activity (Outreville, 1996).
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Theoretical Framework
CHAPTER- 03
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3.1 Concept of Takaful and Its Evolvement

Takaful originates from the Arabic word Kafalah, which means "guaranteeing each other" or
"joint guarantee". The concept is in line with the principles of compensation and shared
responsibilities among the community.
In modern-day conventional insurance, the insurance vendor (the insurance company) sells
policies and invests the proceeds for the profit of its shareholders, who are not necessarily
policyholders. There is therefore a clear disjunction between policyholders and shareholders.
Payouts to policyholders may vary depending on financial performance, but a minimum positive
return is always contractually guaranteed.
Takaful is commonly referred to as Islamic insurance; this is due to the apparent similarity
between the contract of kafalah (guarantee) and that of insurance.
However, Takaful is founded on the cooperative principle and on the principle of separation
between the funds and operations of shareholders, thus passing the ownership of the Takaful
(Insurance) fund and operations to the policyholders. Muslim jurists conclude that insurance in
Islam should be based on principles of mutuality and co-operation, encompassing the elements of
shared responsibility, joint indemnity, common interest and solidarity.
In Takaful, the policyholders are joint investors with the insurance vendor (the Takaful operator),
who acts as a mudarib a manager or an entrepreneurial agent for the policyholders. The
policyholders share in the investment pool's profits as well as its losses. A positive return on
policies is not legally guaranteed, as any fixed profit guarantee would be akin to receiving
interest and offend the prohibition against riba.
For some time conventional insurance was considered to be incompatible with the Shariah that
prohibit excessive uncertainty in dealings and investment in interest-bearing assets; both are
inherent factors in conventional insurance business.
However, Takaful complies with the Shariah (which outlines the principles of compensation and
shared responsibilities among the community) and has been approved by Muslim scholars. There
is now general, health and family (life) Takaful plans available for the Muslim communities.
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3.2 Prohibitions of Gharar, Maysir and Riba

Gharar: An insurance contract contains gharar because, when a claim is not made, one party
(insurance company) may acquire all the profits (premium) gained whereas the other party
(participant) may not obtain any profit whatsoever. Ibn Taimiyah, a leading Muslim scholar,
further reasoned "Gharar found in the contract exists because one party acquired profit while the
other party did not". The prohibition on gharar would require all investment gains and losses to
eventually be apportioned in order to avoid excessive uncertainty with respect to a return on the
policyholder's investment.
Maysir: Islamic scholars have stated that maysir (gambling) and gharar are inter-related. Where
there are elements of gharar, elements of maysir is usually present. Maysir exists in an insurance
contract when; the policy holder contributes a small amount of premium in the hope to gain a
larger sum; the policy holder loses the money paid for the premium when the event that has been
insured for does not occur; the company will be in deficit if the claims are higher that the amount
contributed by the policy holders.
Riba: Conventional endowment insurance policies promising a contractually-guaranteed
payment, hence offends the riba prohibition. The element of riba also exists in the profit of
investments used for the payment of policyholders claims by the conventional insurance
companies. This is because most of the insurance funds are invested by them in financial
instruments such as bonds and stacks which may contain elements of Riba.
3.3 Principles of Takaful
Islamic insurance requires each participant to contribute into a fund that is used to support one
another with each participant contributing sufficient amounts to cover expected claims.
The underlying principles of Takaful may be summarized as follows:
Policyholders co-operate among themselves for their common good.

Every policyholder pays a part of the contribution as a donation to help those that need
assistance.
Losses are divided and liabilities spread according to the community pooling system.
Uncertainty is eliminated in respect of subscription and compensation.
It does not seek to derive advantage at the cost of others.
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It must operate according to Islamic co-operative principles.
Reinsurance commission may be paid to, or received from, only Islamic insurance and
reinsurance companies.
The insurance company must maintain two funds: a participants/policyholders' fund and a
shareholders' fund.
Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain

sum of money to a common pool. The purpose of this system is not profits but to uphold the
principle of "bear ye one another's burden."
3.4 Operation of Takaful
All participants (policyholders) agree to guarantee each other and, instead of paying premiums,
they make contributions to a mutual fund, or pool. The pool of collected contributions creates the
Takaful fund.
The amount of contribution that each participant makes is based on the type of cover they
require, and on their personal circumstances. As in conventional insurance, the policy (Takaful
Contract) specifies the nature of the risk and period of cover.
The Takaful fund is managed and administered on behalf of the participants by a Takaful
Operator who charges an agreed fee to cover costs. These costs include the costs of sales and
marketing, underwriting, and claims management.
Any claims made by participants are paid out of the Takaful fund and any remaining surpluses,
after making provisions for likely cost of future claims and other reserves, belong to the
participants in the fund, and not the Takaful Operator, and may be distributed to the participants
in the form of cash dividends or distributions, alternatively in reduction in future contributions.
3.5 Creation of Funds
The Policyholders' Fund
a) The assets of the policyholders' fund consist of:

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Insurance premiums received

Claims received from re-insurers
Such proportion of the investment profits attributable to policyholders as may be
allocated to them by the Board of Directors.

Salvages and recoveries
Consultancy and other receipts.
b)
All the claims payable to the policyholders, reinsurance costs, technical reserves,
administrative expenses, etc., excluding the expenses of the investment department, shall be met
out of the policyholders' fund.
c) The balance standing to the credit of the policyholders' fund at the end of the year represents
their surplus. The General Assembly may allocate the whole or part of the surplus to the
policyholders' special reserves. If a part, the balance will be distributed among the policyholders.
d)When the policyholders' funds are insufficient to meet their expenses, the deficit is funded
from the shareholders' fund.
e)The shareholders undertake to discharge all the contractual liabilities of the policyholders'
fund, but this liability does not exceed their equity in the company.
The Shareholders' Fund
a) The assets of the shareholders' fund consist of:
Paid-up capital and reserves attributable to shareholders

Profit on the investment of capital and shareholders' reserves
Such proportion of the investment profit generated by the investment of the
policyholders' fund and technical and other reserves as is attributable to them

Miscellaneous receipts
b) All the administrative expenses of the investment department are deducted from the
Shareholders' Fund.
c) The balance of the shareholders' surplus, if any, is distributed among them.
Investment of Funds
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The company may invest its funds only on a profit-and-loss-sharing basis, as approved by the
Shari'ah.
3.6 Models of Takaful
There are various models of Takaful according to the nature of the relationship between the
company and the participants. There are Wakalah (agency), Mudarabah and a combination of the
two. In the Sudanese Takaful model, every policyholder is a shareholder in it. An Operator runs
the business on behalf of the participants and no separate entity manages the business. Shari'ah
experts consider this preferable. In other Islamic countries, the legal framework does not allow
this arrangement and Takaful companies work as separate entities on the basis of Mudarabah (in
Malaysia) and Wakalah (in the Middle East).
Mudarabah model
In the Mudarabah model practised mainly in the Asia Pacific region, the policyholders receive
any available profit on their part of the funds only. The Shari'ah committee of a Takaful company
approves the sharing ratio for each year in advance, most of the expenses being charged to the
shareholders.
Wakalah model
In the Wakalah model, the surplus of policyholders' investments net of the management fee or
expenses - goes to the policyholders. The shareholders charge the Wakalah fee from
contributions and this covers most of the expenses of the business. The fee is fixed annually in
advance in consultation with the company's Shari'ah Supervisory Board. The management fee is
related to performance.
Waqf model
The term Waqf referred for this model explains the contract of Takaful that underlines the
agreement or consent of the participant that the Takaful contribution paid in return for
participating in the Takaful product to be credited by the operator into the Takaful fund in
accordance with the principle of Waqf or endowment. To begin with, a Waqf account has to be
established by the operator within the Takaful fund. To this effect the operator is required to
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relinquish some kind of seed money as Waqf to generate the said Waqf account. This Waqf
account of the Takaful fund will be invested similar to the three business models hereinbefore.
The Waqf fund shall work to achieve the following objectives:
All the expenses related to the underwriting and operational cost of Takaful shall be charged to
the Waqf fund. As manager, the Takaful operator will perform all functions necessary for the
operations of the Waqf against a Wakala fee to be deducted from the contribution paid by the
participants. As Mudarib, the operator will manage the investment of the Takaful fund including
its Waqf account in Shariah-compliant investment avenues and will share its returns on the
investment at an agreed ratio similar to the profit sharing structure under the Mudarabah
contract.
Mudarabah Model
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Wakalah Model
Waqf Model
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Organizational Overview
CHAPTER- 04
4.1 Fareast Islami Life Insurance Company Limited

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Fareast Islami Life Insurance Co. Ltd. emerged as the 1st full-fledged Islami Life Insurance
Company in the country in 2000 and have, by the grace of Almighty Allah, been able to bring
confidence among the common people of the country. The company believes in uncompromising
commitment to fulfill its clients needs and satisfaction to become their first choice in Islami Life
Insurance. As a leading Life Insurance Company it is committed to provide the all out
cooperation and services to its stakeholders. Since inception of the company, it has set a number
of long term strategic goals. It has broadened its range of services over the years with a view to
reaching out for more clients and to meet their precise needs and wants. Last year it had taken a
holistic approach in doing business with focus on quality customer service and business growth
with decentralization of operational activities. With this, it has been pursuing this strategy
consistently, reinforcing the approach with emphasis on growth within a frame work of trust,
integrity, good governance and compliance with the legal and regulatory frame work of the
country. Credit Rating Information and Services Ltd. (CRISL) Bangladesh has rated Fareast
Islami Life Insurance Company Ltd., as A+ in the year 2011.
Its Vision is to have a poverty free, reflecting the national dream and to build a society where
human dignity and rights get the highest compensation along with removing of poverty. To
become the premier Islami Life Insurance Company in Bangladesh, its motto is to touch upon
every single family in the country with a sound reputation for dependability, professionalism and
the highest standard of clients services.
Its mission is to build Fareast Islami Life Insurance Company Ltd. into an efficient, market
driven, client focused organization with good corporate governance structure. It also focuses on
bringing continuous improvement of its business policies, procedures and efficiency through
integration, equitable development through diversified investment and innovation of technology
at all levels. It emphasizes on envisaging the socio economic development through savings and
becoming a caring organization and employer of choice.
4.1.1 Capital
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Authorized Capital
10,00,00,000 Ordinary Shares of Taka 10 each
Paid-up Capital
4,92,37,650 Ordinary Shares of Taka 10 each
4.1.2 Investment Portfolio

Investment portfolio of the Fareast Islami insurance company of the year 2012 is given. Islami
Insurance company need ti invest only in the Shariah complaint investment sources. Because riba
or
Sources
Shares & Bonds
Amount
1,437,830,346 /-
Equity Shares in CDBL
2,569,450 /-
Islami
Investment
Bond
with 60,000,000/-
Bangladesh Bank
Membership
of
Stock
Exchange 325,000,000/-
(DSE)
interest is restricted in islam.
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4.1.3 Branches
Offices
Divisional offices
Service centre
Zonal office
1012
10
38
112
Head Office
T. K. Bhaban (13th Floor),

13, Karwan Bazar, Dhaka.
Zonal Office
Dhaka
Kawran
Bazar,
Mirpur,
Mohammadpur,
Savar
Uttara
Cantonment
Savar Bus Stand, Ashulia, Savar Cantonment
Uttora Model Town, Dakkhin Khan Bazar,
Manikgonj
Khilkhet
Bus
Gazipur
Stand,Dhamrai,Nayarhat,Sharifbag,Singair
Chandana Chowrasta,, Mirzapur, Kaliakayar
Sreepur
Tongi
Sadar, Konabari
Kapasia Bazar, Rajabari, Bormi
Tongi Bazar, Kaliganj, Awrakhali Bazar,
Mymensingh
Gazipura Sataish, Tongi Powrasava

Jubli Road, Gofargaon, Haluaghat, Fulbaria,
Trishal
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Netrokona
Muktagachha, Bhaluka
Satpai,
Dhobaura,
Gouripur,
Kalmakanda,Iswarganj
Kishorganj
Jamalpur
Nandail
Hossainpur, Karimganj, Bazitpur
Station Road, Sherpur, Bakshiganj, Tarakandi,
Hajipur, Sanondabari,
Tangail
Madarganj
Upazila
Town, Sorishabari
Ghatail, Madhupur, Bhuiyapur, Gopalpur,
Dhanbari, Kalihati, Kalihati
4.1.4 Organogram of board and its committee
4.1.5 Employees and Agents

Number of employees as on 2004 was 727. At present 4,543 persons are working in this
company.
4.2 Padma Islami Insurance ltd.
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With the vision to become the best private life Insurance company in Bangladesh and South-East
Asia through maintaining high degree of integrity, responsibility and transparency Padma Islami
Life Insurance was established in the year 2000. Padma Islami Life Insurance Ltd. emerged as
the 1st full-fledged Islami Life Insurance Company in the country and has, by the grace of
almighty Allah, been able to earn confidence of the common people of the country.
Mission:
Abide by Shahriah Principles in day to day life Insurance business affair
build a dynamic, sound and professional management team
Conduct business in a responsible manner
Develop innovative products
Enhance good governance
Faster Quality Management System
Goal:
To Serve humanity for its well being in the present and the world hereafter by providing financial
and moral gains through utmost good faith, good conduct, mutual trust, sincerity, integrity and
personalized service
4.2.1 Capital:
Name of the Company
Authorized Capital
Paid Up Capital
Prime Islami Life Insurance Ltd.

Taka 1,000 miliion
Taka 18 million
Date of Incorporation
Year 2000
4.2.2 Investment Portfolio
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The investment portfolio of Padma Islami Life Insurance Company is not stated in their financial
statement. Only the total invest is given. The amount is shown below:
Sources
Amount
Investment
707,810,l50/-
4.2.3 Branches
Padma Islami Insurance ltd has 19 zonal and head office throughout the country.
Head Office
Padma Life Tower, 115 kazi Nazrul Islam

Avenue.Bangla Motor, Dhaka-1001.
Zonal Offices
Dhaka
Noor Jahan Sharif Plaza(6th Floor), 34 Purana
Barisal
Paltan, Ps : Paltan. Dhaka-1000

Zyfia plaza(1st Floor), House No : 60/61,
Bogra
Nobogram Road, Bottola. Barisal

Kafil Uddin Plaza,Holding no 173, Shahid
Abdul jabbar Sarak. Village : Joleshori Tola,
Chandpur
District : Bogra
Municipality New Market(2nd Floor), Comilla
Road, Kalibarir Moor, Po : Chandpur, Ps :
Chittagong
Chandpur Sadar. District : Chandpur.

House No : 49(2nd Floor) Cheragi Hill,
Momin Road, Jamal Khan. Ps : Kotwali.
Comilla
District Chittagong
406/362 Sattar Khan Complex(6th Floor),
Coxs Bazar
Monoharpur, PS : Kotwali. Comilla.

Alinur Plaza(4th Floor).Main Road. Cox's
Dhaka Mahanagar
Bazar.
Noor Jahan Sharif Plaza(6th Floor), 34 Purana
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Paltan, Ps : Paltan. Dhaka-1000

Nilltoly(Datta Bhavan), House no : 49(3rd
Faridpur
Floor), Nilltuly Muzib Sarak, Po : Faridpur,

Ps : Kotwali. District : Faridpur.
Chandana Plaza(2nd Floor),
Gazipur
Chandana
Chowrasta, Po : Joydebpur, Ps : Sadar.

Jessore
District : Gazipur
Rashid Center(3rd Floor),7/A R.N Road,
Khulna
Sadar. Jessore.
Arang Bilding (3rd floor), A-43/44, Majid
Mymensingh
Sarani, Shib Bari Moor, Khulna.

Holding No:6/1 (1st Floor) Natok Ghar Lane,
Noakhali
Po & Ps : Sadar. District : Mymensingh.

Jannat
Plaza(1st
Floor),Main
Patuakhali
Road(Kadamtoly),Maizdi Court.Noakhali.
Saudia Mansion(2nd floor), House No : 17,
Rangpur
Sadar Road,District : Patuakhali.

Amena Bhaban(1st Floor), House No : 16/1 ,
P.B
Road
Road
No-2,
Village:
Chotomonthona, Po : Rangpur-5400.Ps :
Kotwali, District : Rangpur.
Rahim Tower (4th Floor) Subhani Ghat,
Sylhet
Sylhet.
4.2.4 Organogram of Company:

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Page | 27
4.3 Prime Islami Life Insurance

Mr. M. A. Khaleque, one of the noble entrepreneurs and Organizer of Bank, Insurance Company
and Financial Institutions of the Country, initiated and in association with some prominent
sponsors, bankers, retired Government Secretary founded Prime Islami Life Insurance Limited.
Prime Islami Life Insurance Ltd. was initially incorporated in the name of Prime Life Insurance
Company Ltd. in July-2000 which was converted into an Islamic Company in the name of Prime
Islami Life Insurance Ltd. in April-2002. In a relatively short span of time, Prime Islami Life
Insurance Ltd. (PILIL) has achieved a commendable progress in business, product developments
and quality management.
4.3.1 Capital
Name of the Company
Authorized Capital
Paid Up Capital
Date of Incorporation
Prime Islami Life Insurance Ltd.

Taka 500 Million
Taka 158 million
24th July, 2000
Date of Commencement of Business
June, 2001
4.3.2 Investment Portfolio:

Prime Islami Life insurance has invested in diversifies sources. The investment portfoilio of the
company is given below:
Sources
Amount
Statutory Deposit with Bangladesh Bank

Bangladesh Bank Islami Investment Bond
Membership with stock exchange
Investment in share
Bond: FSIBL Mudaraba Subordinate Bond
Central depository Bangladesh Ltd.
40,00,000/720,000,000/510,000,000/112,48,42,566/5,00,00,000/15,69,450/-
Page | 28
4.3.3 Branches
The company has six divisional offices along with the head office in Dhaka. The address of those
branch offices are given below:
Head Office
Dhaka
Chittagong
Raj Bhaban(6th Floor)

29,Dilkusha C/A, Dhaka 1000
Divisional Office
Yousuf Chamber (4th Floor)
20, Dilkusha C/A Dhaka - 1000.
Azmol Arcade (2nd floor)
1806, Sheikh Mujib Road
Rajshahi
Chowmohony, Pathantoly, Chittagong.

Haji Gofur Market(3rd Floor)
Khulna
Rangpur Road, Barogola, Bogra.

43, M.K Road
Barisal
Chowrasta, Jessore.
Arju Laxmi Bhaban(3rd Floor)
Sylhet
99, Sadar Road, Barisal.

Ekanta Niketon Kadamtoli, Sylhet.
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Page | 29
Policies Offered
CHAPTER- 05
Page | 30
The business model of Islamic life insurance is different from that of conventional life insurance
companies. The product or life policies offered by the companies are different in name and its
features. As gharar is prohibited in Islam, so some types of life insurance policies are not
common in Islamic insurance companies like whole life insurance, term insurance etc. The
Islamic insurance companies have designed polices based on the endowment policies. Policies
offered by three family Takaful insurance companies in Bangladesh are given below:
5.1 Fareast Islami Insurance:
Fareast islami life insurance company is the company which offers largest array of islami Takaful
product in Bangladesh. The company offers its product in three segments:
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5.1.1 Ordinary Life
Page | 31
Under ordinary life segment, Fareast Islami insurance offers different types of policy for
individual. As we know in Takaful islami insurance only endowment policy is permitted. Fareast
islami insurance offers different types of endowment policies in this segment.
1. Endowment Assurance Plan with profits
1
Amount payable on normal Death
Basic sum assured
.
2
Accidental Death Benefit
Double of sum assured
.
3
Age of the assured at commencement Minimum - 18 years and Maximum - 70 years
.
4
of policy
Minimum sum assured
Taka 30000/-
.
5
Maximum age at expiry
Maximum 55 years.
Additional benefits
Premium Payment
DIAB/ PDAB benefit with additional premium.

Premiums are payable Annually / Half-Yearly
/Quarterly throughout the term. In premium

payment additional 2% premium will be payable in
yearly payment.
2. Assurance-Cum-Pension Plan-without profits:
This plan is designed to provide the financial solvency in retired age. The benefits of this plan
are given below:
The policyholder will get pension benefit from his retire life. It must be from 50 years to
60 years.
After maturity the policyholder may take 50% as cash benefit
The remaining 50% can be received as pension throughout 10 years or till the death
If the policy holder dies within 10 years then the beneficiaries will get the benefits
Premium can be payable at yearly, half yearly and quarterly basis.
No PDAB/DIAB benefits are payable.
3. Islamic Endowment Plan (Hajj Bima)- with profits
Page | 32
Full amount of premium payment with adjusted loss
and profit.
Age of the assured at commencement Minimum 30 years.
of policy
Minimum sum assured
Term of policy
Additional benefits
Premium Payment
Taka 1,00,000/10, 15 ,20 years.

DIAB/ PDAB benefit with additional premium.
Premiums are payable Annually / Half-Yearly
/Quarterly throughout the term. In premium
payment additional 2% premium will be payable.
4. Four Payment Endowment Assurance Plan with profits

Amount payable on death before Full amount with adjusted loss or profit
maturity
Payment of benefit
In four installment
Term
12,16,20,14,18
of policy
Minimum sum assured
Taka 30,000/-
5. Islamic Endowment Plan (Denmohar Bima)-with profits:

maturity
Payment on maturity
Full sum assured with profit to policyholders wife.
Term
10,15, 20
Age of the assured at commencement Minimum - 18 years
of policy
Minimum sum assured
Taka 30,000/-
6. Islamic Three payment Assurance Plan-with profits :

maturity
Payment of benefit
In three installment
25% payment after 1/3 maturity term, another 25%
after 2/3 maturity term and 50% at maturity with
Page | 33
adjusted loss and profit.

Term
12,15,18 ,21,24
of policy
Minimum sum assured
Other benefit
Taka 30,000/DIAB/PDAB benefit with additional premium
7. Single Premium Endowment Assurance Plan-without profits

Almost Double amount with adjusted loss and
Payment at maturity
profit.
Almost double payment with adjusted loss and
profit.
of policy
Minimum sum assured
Term of policy
Premium Payment
Taka 30000/6,10,15 years.

Single premium payment
8. Fareast Deposit Pension Scheme (FDPS)-with profits:

This policy is designed to provide Islamic insurance service to the people from all income
categories of society people. The policy is taken in unit basis. One person can take minimum 2
units. The features are given below:
of policy
Minimum sum assured
Term of policy
Premium Payment
Minimum 2 units can be taken. Per unit 12,000/12 years

Usually monthly installment. But year, half year and
semiannual payment possible upon payment of 12

Payment at maturity
Pension benefits
months installment in advance.

Full sum assured with adjusted loss and profit.
25% after 6 years and rest 75% at the maturity
Policyholder can take pension for 10 years.
9. Islamic Money Back Plan:
Page | 34
Age of the assured at commencement Minimum 18 to maximum 50 years

of policy
Policy amount
Term of policy
Premium Payment
Payment at maturity
Pension benefits
Minimum 1,00,000 and maximum 5,00,000

10 years
Premium will be paid with 5 years. Yearly payment.
10. Child Education & Marriage Insurance with profit

Age of the policyholder at Minimum 20 to maximum 50 years
commencement of policy
Entry age of child
Policy amount
Term of policy
Premium Payment
Minimum 3 months to 18 years

Minimum 1,00,000 and maximum 5,00,000
10 to 20 years
Yearly payment.
Child will get monthly education benefit as rate of
Death of child
contract
Premium need not to be paid any more.
The policy can be transferred to other child or can be in
Payment at maturity
the name of main policyholder.

Full amount with adjusted profit will be paid to child.
5.1.2 Group Endowment Insurance:

Under group insurance Fareast Islami Insurance offers different group insurance. Mainly group
health insurance is offered to different corporate body.
1. Permanent disability and accident benefit:
Particulars
A. Accidental Death Benefit
B. Permanent Total Disability benefit
C. Permanent partial Disability
1.Both Hands or Feet or
Percentage of Benefit
100% of FA
100% of FA
100% of FA
Sights of eyes
Page | 35
2.One Hand and One Foot

100% of FA
3.Either Hand / Foot and 100% of FA
Sight of One Eye
4.Hearing of Both Ears
5.Speech
6.Either Hand or Foot
7.Sight of one Eye
8.Thumb and Index fingers
D. Medical expenses reimbursement
100% of FA
100% of FA
50% of FA
50% of FA
25% of FA
Max of : 15% of FA
5.1.3 Micro Insurance ( Sharbojonin Bima):

This insurance segment is open to give the service of insurance to the people with lower income.
The polices offered under ordinary insurance are redesigned with lower premium and lower sum
assured.
1. Monthly Savings Plan with profits

Age of the assured at commencement Minimum 18years to 45 years
of policy
Minimum sum assured
Term of policy
Premium Payment
Minimum 6000/- to 100000/10 years


Payment at maturity

Full amount with adjusted loss and profit.
2. Single Premium Plan-without profits

Age of the assured at commencement Minimum 18years to 49 years
of policy
Page | 36
Minimum sum assured

Term of policy
Premium Payment
Minimum 1000/- to 100000/6,10,15 years

Single payment
Almost double amount with adjusted loss and profit
Payment at maturity
to beneficiaries.
Almost double amount with adjusted loss and profit.
3. Fareast Deposit Pension Scheme (FDPS) with profits

of policy
Minimum sum assured
Minimum 1 unit and maximum 8 units can be taken.
Term of policy
Premium Payment
Per unit 12,000/12 years

Premium amount
Payment at maturity
Pension benefits

Monthly 100/Full sum assured with adjusted loss and profit.
4. Islami endowment Insurance (FDPS)

of policy
Minimum sum assured
Minimum 1 unit and maximum 8 units can be taken.
Term of policy
Premium Payment
Per unit 12,100/10 to 20 years


Payment at maturity
Pension benefits

Policyholder can take full cash benefits.
Page | 37
5.2 Padma Islami Life Insurance

1. Convertible Endowment Assurance (With Profits)
On death of the full Sum Assured with Accrued bonuses are payable.
Available at the end of 5 year of the original policy into an Endowment Assurance Plan
with a selected policy term.
Premiums are payable Annually, Half-Yearly & Quarterly throughout the term or until
death if earlier.
At the end of the term full Sum Assured with bonuses are payable.
2. Endowment Assurance Plan (With Profits)
At the end of the term full Sum Assured with bonuses are payable
On death of the full Sum Assured with Accrued bonuses are payable.
Premiums are payable Annually / Half-Yearly /Quarterly throughout the term or until
death if earlier.
3. Anticipated Endowment Assurance Plan-3 stage (With Profits)
At end of 1/3rd of the term 25% of Sum Assured.
At end of 2/3rd of the term 25% of Sum Assured.
At end of the term 50% of Sum Assured with bonuses
At death of the life Assured with in the term but before the date of Maturity full Sum
Assured with Accrued Bonuses.
Premiums are payable Annually / Half-Yearly / Quarterly throughout the term or until
death if earlier.
Page | 38
4. Convertible Endowment Assurance (With Profits)
At end of 1/4th of the term 25% of Sum Assured.
At end of the term 25% at Sum Assured with bonuses.
Premiums are payable Annually, Half-Yearly & Quarterly throughout the term or until
death if earlier
5. Child Protection Assurance (With Profits)
On survival of the beneficiary child at the end of the term full Sum Assured with bonuses
are payable.
death of the payor or the beneficiary child if earlier.
6. Pension Assurance (With Profits)
The Assured pensioner or his/her assign(s). At death of the Assured pensioner before the
date of commencement of pension amount due per special provision appearing
hereinafter or within 10 (ten) years from the said date yearly pension for the remainder at
the period of 10 (ten) years from the date of such death to nominee(s).
On death of the Assured pensioner before the date of commencement of pension this
policy shall be determined and an amount equal to ten times the yearly pension shall be
payable.
Page | 39
Annual premiums are payable in advance up to the end of the term or until death of the
Assured whichever is earlier.
7. Single Premium Endowment Assurance (With Profits)
On survival of the Assured at the end of the term double the Sum Assured will be
payable.
On death of the Assured during the term double the Sum Assured will be paid.
Only one premium at the beginning of the term is payable.
8. Hajj/Omrah Assurance- Takaful (With Profits)
On maturity if the policyholder survives full sum assured with accrued bonuses with be
paid.
Premiums deposited will be refunded with profits if any plus premiums payable up to
maturity date from the date of death will also be refunded
9. Marriage/Moharana Assurance- Takaful (With Profits)
maturity date from the date of death will also be refunded.
On maturity if the policyholder survives full sum assured with accrued bonuses with be
paid.
10. Biennial Assurance- Takaful (With Profits)
maturity date from the date of death will also be refunded.
If the policy holder survives and the policy continues following benefits will be payable.
Page | 40
For 10 years term 10% of sum assured will be paid after 4th, 6th and 8th years
respectively and balance of the 40% sum assured with accrued bonuses will be paid on
maturity.
For 10 years term 10% of sum assured will be paid after 4th, 6th, 8th , 10th and 12th
years respectively and balance of the 25% sum assured with accrued bonuses will be paid
on maturity.
For 10 years term 10% of sum assured will be paid after 4th, 6th, 8th , 10th, 12th , 14th ,
16th, and 18th years respectively and balance at the 10% sum assured with accrued
bonuses will be paid on maturity.
death if earlier.
11. Anticipated Endowment Assurance-5 Stage (With Profits)
At end of 1/5th of the term- 10% of Sum Assured.
At end of 2/5th of the term- 10% of Sum Assured.
At end of 3/5th of the term- 10% of Sum Assured
At end of 4/5th of the term- 25% of Sum Assured
At end of the term- 30% of Sum Assured with accrued bonuses
Page | 41
12. Deposit Pension Scheme (With Profits)
For a Tk. 100 per month premium payable throughout the term of the policy or earlier
death of assured following benefits are payable.
Survival Benefit: On survival to maturity date (and of the term).
Bonuses if any would be added to the above guaranteed sum assured.
On death during the term of the policy Sum Assured with accrued bonuses are payable.
Whole or part of the Sum Assured may be used to secure monthly.
13. Premium Refund Term Assurance (With Profits)
On survival all deposited premiums will be refunded
On death of the Assured during the term Sum Assured will be paid.
Premiums are payable in advance up to the end of the term or until death of the Assured if
earlier.

Prime Islami Insurance Company Ltd. is committed to their customers to provide with ethical
and highest standard services that uphold the values of Islam. The company continue Our
business growth in all respects within The framework of Shariah Principles and ISO 9001 : 2008
Quality Management System.
5.3.1 Endowment Assurance Plan
The products offered by Prime Islmai life insurance offers its policies based on endowment
polices. The policies in this category are given below:
1. Islamic Endowment Assurance Plan (Hajj Bima) with profit
Page | 42
Features of the plan

It is an endowment plan
1 Type of Plan
2 Term of policy
10,15 & 20 years
3 Age of the assured at commencement of Minimum - 18 years and Maximum - 50

policy
4 Maximum age at maturity
years
60 Years
5 Mode of payment
Quarterly, half yearly and yearly
Benefit of Plan
1 At maturity
The assured will get deposited Sum Assured

along with accrued profit (if any)
2 In case of assureds death during policy Sum assured with profit (if any)
term
2. Prime Islami deposit Pension Scheme

3 Type of Plan
It is an endowment plan with alternative

option of annuity (Pension)
4 Term of the plan
10 - 15 years
5 Age of the assured at commencement of Minimum - 18 years and Maximum - 50

policy
years
6 Maximum age at maturity
60 Years
7 Mode of payment
Monthly, Quarterly, half yearly and yearly
8 Minimum monthly installment
Taka 200/-
9 Maximum monthly installment
Taka 1000/Page | 43
Benefit of Plan
1 At maturity
The assured will get his money deposited in

Mudaraba fund along with profit (If any).
2 Death Benefit
If the assured dies at any time during policy

term, the nominee(s) shall get money
deposited in Mudaraba fund along with profit
3 Accidental Death Benefit
(If any).
The nominee will get Double of Sum assured
at assureds accidental death during policy
period.
Annuity Plan
This segment provides policies like annuity which is basically for those people who wants to
secure the future retired life with definite income flow.
1. Assurance Cum pension and Medical Benefit-Without profit
1 Type of Plan
It is a deferred annuity plan.
2 Term of policy
Assureds age at commencement of pension
3 Age of the assured at commencement of Minimum - 18 years and Maximum -48 years
policy
4 Commencement of pension
At any age between 50 & 60 years of assured.
5 Mode of payment
Quarterly, half yearly, and yearly
6 Premium shall be charged for Tk. 1000 yearly pension plus Taka 100 Medical allowance
i.e. total taka 1100.
Benefit of Plan
Page | 44
1 Death of Assured during policy period (before commencement of pension) 10(ten) times
of yearly pension.
2 Minimum
10
ten
years
guaranteed
pension.
After commencement of pension, the assured or his/her nominee shall get minimum
10(ten) years guaranteed pension i.e. if the assured dies at any time after commencement
of pension during the guaranteed 10 years time, his/her nominee will get pension for the
rest period of guaranteed 10 (ten) years.
3 The assured shall get yearly pension as longs as he lives. It will be immediately stopped
after his death.
4 The assured can surrender maximum 50% of his pension. In exchange of lump sum at
any time within one year of commencement of pension.
5.3.2 Term Assurance Plan

Prime Islamic insurance company offers term assurance policy though it is prohibited in islami
Takaful business model.
1. Premium back term assurance plan
1
Type of Plan
It is an endowment plan with additional benefit
of annuity in case of policyholders death
Term of the plan
during policy term.

Minimum 10 years
.
3
.
4
of policy
Assureds age at maturity
60 Years
.
5
Mode of payment
Quarterly/ half-yearly/yearly
.
Benefit of Plan
1 At maturity
The assured will get the entire premium

Page | 45
deposited at maturity (deducting extra premium,

2 At Death during policy period
if any).
The nominee(s) shall get full sum assured at
death of assured in any time during policy
period.
5.3.3 Group Assurance Plan

Prime Islami insurance company offers group term assurance. Basically it is designed to serve
the employers who want to take group insurance for their employees.
1. Group Term Assurance plan
1
Type of Plan
It is a group term Insurance
.
2
Minimum Number of group
15 (fifteen) persons
.
3
.
4
of policy
Maximum age at maturity
65 (sixty five) years
.
5
Mode of payment
Quarterly, half yearly and yearly
.
6
Period of contract
1 3 years. Renewable at the completion of
Minimum Sum Assured
initial contract
50,000/-
.
7
.
Benefit of Plan
1
At death during contract period of group insurance, the nominee of the member will get
.
2
full sum assured of his individual limit fixed in group contract.

Nothing is paid at maturity.
.
Page | 46
2. Karmajibi Kalyan Bima (Group term Insurance)

Basic sum assured
Double of sum assured
of policy
Minimum sum assured
Maximum age at expiry
No of members of group
Taka 50,000/Maximum 60 years.

Minimum 50
Benefit of Plan
1
Basic sum assured.
.
2
Double of sum assured.
.
3
Basic sum assured payable on total and permanent disablement defined as permanent loss of
eye sight of both eyes/loss of both hands / loss of feet /loss of one foot and one eye/loss of
one foot and one hand /loss of one hand and one eye.
50% of basic sum assured payable as partial disablement benefit payable on permanent loss
of either one foot or one hand/ total and permanent loss of hearing in both ears/total and
permanent loss of eyesight of either eye/total and permanent loss of thumbs or index fingers.
20% of basic sum assured payable for repatriation of dead body of the deceased assured /
.
6
funeral cost of the deceased assured.

Stipend payable to the nominee on normal death of the life assured = 5% of basic sum
assured to be divided equally and payable monthly for 12 months.

Page | 47
Stipend payable to the life assured on accidental death or on total and permanent disability =
.
8
5% basic sum assured to be divided equally and payable monthly for 24 months.
No maturity benefit is paid at the completion of policy/group contract.
Growth Analysis
CHAPTER- 06
Page | 48
Growth rate is the amount of increase that a specific variable has gained within a specific period
and context. For investors, this typically represents the compounded annualized rate of growth of
a company's revenues, earnings, dividends and even macro concepts - such as the economy as a
whole.
In our report we have conducted growth analysis for the three companies. For analysis of growth
we have used three variables those are:
Asset
Life Fund
Premium
Asset
Total asset assize of the company in the consecutive last five years. The asset is combination of
current asset and fixed asset.
Life Fund
A pool of money and assets such as property or shares held by a fund into which all life
assurance policyholders' premiums are paid and from which claims are made. It is an important
indicator of growth for insurance company. Because life fund indicates the size of business
throughout the years.
Premium
Premium is the price for insurance policy. The amount the policyholder needs to pay to the
insurer for managing the risk. Insurance business is dependent on the collection of premium.
Form the pooling of premium the claims of the policyholder during unwanted contingencies are
paid out.
Page | 49
The growth analysis was conducted on the data of five years (2008-2012). The overview of the
analysis is given below:
6.1 Fareast Islami Life Insurance:

Fareast Islmai Life Insuarnce is largest among the Islamic life insurance companies in the
context of asset, product offered and other particulars.
Growth Rate
Particular
2012
2011
2010
2009
2008
Assets
28.73
50.04
44.44
57
49
Life Fund
Premium
26.19
2.40
21.86
6.07
45.76
3.20
57
97
48
34
120
100
80
Assets (%)
Life Fund (%)
Premium (%)
60
40
20
0
2012
2011
2010
2009
2008
Interpretation:
Page | 50
In spite of the Country's adverse situation and political unrest the company attained a gross
premium income of taka 707.46 crore, the highest among Bangladeshi Life Insurance Companies
in the year 201 2.The life fund increased to taka 2,080.42 crore from taka 1,648.65 crore. The
growth of life fund in the year of 2012 is 26.19% which is satisfactory and the financial position
of the company is very sound since the assets increased to taka 629.85 crore.

Padma Islami Life Insurance Company started its business in the year 2000. For growth analysis
we have used the same indicators for this company also.
Growth Rate
2012
2011
2010
2009
2008
Assets
19.21
44.72
89.73
56.99
30.06
Life Fund
Premium
7.86
37.87
41.82
10.78
93.21
36.16
73.39
76.95
24.05
21.10
120
100
80
60
40
Assets (%)
20
Premium (%)
0
2012
-20
Life Fund (%)
2011
2010
2009
2008
-40
-60
Interpretation:
Page | 51
From the table of growth rate and from the graph it is seen that the rate of growth for three
indicators have fall after the year 2010. The company has higher growth in the year 2010. After
the enforcement of regulation of insurance development and regulatory authority there was a fall
in the asset valuation of the life insurance industry. Padma Islami Life insurance also faces this
same problem. In case of premium growth the company has experienced better situation than the
previous year 2011.
6.3 Prime Islami Life Insuarnce

Prime islami life insurance is also one of the pioneer islami life insurance company. This
accompany offer a great range of product in three categories to the people. The growth rate in
three selected indicators is given below:
Growth Rate
Premium (in %)
Assets (in %)
Life Fund (in %)
2012
2.56
22.20
20.81
2011
17.53
32.78
31.00
2010
23.25
49.33
49.62
2009
40.28
59.66
62.68
2008
23.87
60.73
63.68
Page | 52
70
60
50
40
Premium (in %)
Assets (in %)
30
Life Fund (in %)
20
10
0
2012
2011
2010
2009
2008
Interpretation:
Like the whole life insurance industry this company also experience higher growth rate in the
year 2010. After the enforcement of regulation by IDRA there is fall in all the three indicators.
The company experienced drastic fall in the premium growth rate. There is a little bit falls in life
fund and asset growth rate.
Page | 53
Business Performance Analysis
CHAPTER- 07
Each and every company has its own goal. The operation of company is headed by this goal. The
insurance company is not different from it. The business performance of any company is
compared to the goal stated by the company in the beginning of the company. The business
performance is measured based on some indicators. The indicators used here are:
Premium
Investment income
Amount of claims settlement
Management expense
Total asset size
Life fund etc.
7.1 Fareast Islami Insurance

The business performance of Fareast Islami life Insurance Company is in lac taka is given below:
Particulars
2012
2011
2010
2009
2008
Page | 54
First Year Premium
1,57,63.57
2,37,91.92
2,77,18.70
3,40,97.03
1,20,99.22
Renewal Premium
5,49,70.02
,52,82.53
3,74,10.83
2,90,14.22
1,98,76.35
Group Insurance Premium
12.18
13.17
6.03
2.71
2.83
Gross Premium
7,07,45.77
6,90,87.62
6,51,35.56
6,31,13.96
3,19,78.40
Investment Income
1,72,20.25
80,97.22
1,13,13.33
66,16.37
43,04.43
Claims
1,73,22.96
1,39,78.15
66,22.68
64,91.49
42,52.22
a) Commission
1,16,11.93
1,76,07.45
1,72,22.30
2,21,37.06
82,73.01
b) Admin. Expenses
1,06,24.29
84,90.43
80,43.63
55,91.35
35,53.21
28,22,22.3
21,92,37.7
14,61,17.9
10,11,60.02 6,45,13.23
20,80,42.2
16,48,65.0
13,52,95.0
12.50%
25%
2012
First Year Premium
Management Expenses
Assets
Life Fund
9,28,21.62
5,58,93.16
40%
45%
5%
40%
2011
2010
2009
2008
2106.24
6,572.47
5620.63
6078.94
4331.36
Renewal Premium
9023.04
11325.59
10553.66
5799.72
2581.78
Group Insurance Premium
3.29
13.28
.20
Gross Premium
11132.57
17918.34
16174.49
11878.66
6713.14
Dividend of face value of

share
a) Cash
20%
b) Stock
15%
Page | 55
Investment Income
955.98
671.03
452.67
358.98
409.25
Claims
3228.70
2434.12
1269.34
676.31
473.52
a) Commission
3257.46
6539.71
5384.53
5558.39
3633.41
b) Admin. Expenses
3667.65
3561.56
2845.68
2672.90
2092.03
Assets
28415.38
23836.27
16470.86
361.39
5529.99
Life Fund
21935.11
20370.82
14363.79
7434.39
4287.71
18%
15%
Management Expenses
Dividend of face value of

share
a) Cash
b) Stock
The business performance of Padma Islami life insurance of five years in lac taka is given below:
7.3 Prime Islami Life Insurance:

Particulars
2012
2011
2010
2009
2008
Gross Premium
210.78
205.51
174.86
141.87
101.13
a) First year Premium
61.23
68.86
69.99
53.61
40.32
b) Renewal Premium
148.30
136.03
104.50
88.08
60.62
c) Group Premium
1.25
0.62
0.37
0.18
0.19
Assets
606.24
496.51
373.94
250.40
156.83
Life Fund
534.78
442.65
337.89
225.82
138.82
Investment
453.44
34.64
285.28
160.04
114.97
Page | 56
Investment Income
38.28
29.72
35.33
25.04
16.09
Claims(Including
50.53
31.88
17.21
13.02
10.99
Survival)
Management Exp.
84.13
78.42
69.84
59.10
46.81
40.50
41.54
40.20
35.07
29.26
a) Commission
7
Page | 57
Ratio Analysis
CHAPTER- 08
8.1 Fareast Islami Insurance Company Ltd

Return on Asset
2012
2011
2010
2009
2008
0.19
0.13
0.29
0.34
0.23
Interpretation: Return on Asset of Fareast lslami Insurance Company was higher in the year
2009. After that is has experience decreasing trend. In the year 2012 it is 0.19.
Return on Equity
Page | 58
2012
2011
2010
2009
2008
0.23
0.24
3.13
0.36
0.25
Interpretation: Return on equity was higher in the year 2010. It was 3.13% in that year, In the
year 2012 return on equity is .23% , in the previous year it was .24%.
Net Investment Income ratio
2012
2011
2010
2009
2008
0.24
0.12
2.02
0.11
0.13
Interpretation: Net investment income ratio was higher in the year 2010. It was 2.02% and in
the year 2011it was .12%. it has increased in the year 2012 into .24%
Claims to Premium
2012
2011
2010
2009
2008
0.2449
0.2023
0.1017
0.1029
0.133
Interpretation: Claim to premium ratio is higher than the previous year in 2012. The company
payout higher claims in that year. Claims to premium rate are 24.49%. It is seen that the rate is in
increasing trend than the previous years.
Expense Ratio
Page | 59
2012
2011
2010
2009
2008
0.3143
0.3743
0.3778
0.4393
0.3698
Interpretation: Expense ratio was higher in the year 2009 to 2011. But is has lessen in the year
2012. The expense ratio 31.43%.
8.2 Padma Islami Life Insurance:

Return on Asset
2012
0.05
2011
0.25
2010
0.42
2009
0.36
2008
0.15
Interpretation: Return on Asset of Padma Islami Life Insurance is in decreasing trend. The rate
is only 0.5% in the year 2012 which was in better situation in the year 2010.
Return on Equity
2012
2011
2010
2009
2008
0.06
0.29
0.46
0.41
0.18
Interpretation: Almost same trend like Return on Asset is also in return on equity of Padma
Life Insurance Company Ltd. Return on equity is only 0.06% which were better in the year 2009
and 2010.
Page | 60
2012
2011
2010
2009
2008
0.08
0.04
0.03
0.30
0.06
Interpretation: Net investment income ratio is also lower. The rate is only 0.08%. But the rate is
in increasing trend than the previous years. Net investment income ratio was higher in the year
2009. The rate was .30% which is higher among the five years.
Claims to Premium
2012
2011
2010
2009
2008
0.29
0.14
0.08
0.06
0.07
Interpretation: Claim to premium ratio is higher in the year 2012. It is 29%. The company has
payout highest claims in the year 2012 than the previous years. In the year 2008 the rate was
only 8%.
Expense Ratio
2012
2011
2010
2009
2008
.3991
.386
.3994
.4166
.4629
Interpretation: The expense ratio is almost same in the five years. The rate was high only in the
year 2008. From the year 2009 to 2012 the rate is near 40%.
Return on Asset
Page | 61
2012
2011
2010
2009
2008
1.15
1.17
1.22
1.29
1.37
Interpretation: The table shows that Prime Islami Life Insurance has the best ROA among the
companies. All the ratios are above 1.
Return on Equity
2012
2011
2010
2009
2008
1.03
0.95
0.86
0.89
0.90
Interpretation: The company had strong ROE from the year 2008 to 2012. Almost in all the
years the ROE is near to 1.
2012
2011
2010
2009
2008
0.18
0.14
0.20
0.17
0.16
Interpretation: The higher the net investment income ratio, the better. In all the years from 2008
to 2012, the company had poor net investment income ratio.
Claims to Premium
2012
2011
2010
2009
2008
0.2397
0.1551
0.0984
0.0917
0.1087
Interpretation: In all the years from 2008 to 2012, the company earned higher premium than the
amount of claim paid.
Expense Ratio
Page | 62
2012
2011
2010
2009
2008
0.2397
0.3991
0.3816
0.4166
0.4629
Interpretation: The lower the expense ratio, the better. In all the years, the company incurred
expense of 30% to 40% of premium earned.
Page | 63
Comparative Analysis
CHAPTER- 09
9.1 Business Performance Analysis

Gross Premium
FILI
PRILI
PILI
2012
70745.77
2011
69087.
2010
65135.
2009
63114
2008
31978.
21078
11132.57
6
20551
17918.
6
17486
16174.
14187
11878.
4
10113
6713.1
Page | 64
80000
70000
60000
50000
FILI
PRILI
PILI
40000
30000
20000
10000
0
2012
2011
2010
2009
2008
Interpretation: Among the insurance companies, Fareast Islami Life Insurance Company has
the highest gross premium in all the years. All the companies had a rising trend from 2008 to
2012 except that of Padma Islami Life Insurance. It had a decline in 2012.
Asset
FILI
PILI
PRILI
2012
282222.35
2011
219237.
2010
146118
28415.38
8
23836.2
16470.8
60624
7
49651
6
37394
2009
101160
2008
64513.
361.39
2
5529.9
25040
9
15683
Page | 65
300000
250000
200000
FILI
PILI
PRILI
150000
100000
50000
0
2012
2011
2010
2009
2008
Interpretation: Among the insurance companies, Fareast Islami Life Insurance has the highest
asset. Padma Islami Life Insurance had a decline in 2009. All the companies had a rising trend
from 2008 to 2009. Fareast Islami Life Insurance had the highest trend.
Life fund
FILI
PILI
PRILI
2012
208042.24
2011
164865.
2010
135295.
2009
92821.6
2008
55893.
21935.11
1
20370.8
1
14363.7
2
7434.39
2
4287.7
53478
2
44265
9
33789
22582
1
13882
250000
200000
150000
FILI
PILI
PRILI
100000
50000
0
2012
2011
2010
2009
2008
Page | 66
Interpretation: The trend of life fund is ever increasing. Fareast Islami Life Insurance had the
highest trend from 2008 to 2012. The amount of life fund is highest in this company compared to
others.
9.2 Growth Rate Analysis
Asset
FILI
PILI
PRILI
2012
28.73
19.21
22.2
2011
50.04
44.72
32.78
2010
44.44
89.73
49.33
2009
57
56.99
59.66
2008
49
30.06
60.73
100
80
60
FILI
PILI
PRILI
40
20
0
2012
2011
2010
2009
2008
Interpretation: All the companies had a declining rate of growth from 2012 to 2008. The rate is
quite fluctuating in case of Fareast Islami Life Insurance. Though Padma Islami Life Insurance
had a rising trend till 2010 but it faced a sharp decline after that year.
Life fund
FILI
PILI
PRILI
2012
26.19
7.86
20.81
2011
21.86
41.82
31
2010
45.76
93.21
49.62
2009
57
73.39
62.68
2008
48
24.05
63.68
Page | 67
100
90
80
70
60
50
40
30
20
10
0
2012
FILI
PILI
PRILI
2011
2010
2009
2008
Interpretation: The growth rate of life fund of all the companies faced a decline. Prime Islami
Life Insurance had a consistently declining rate in growth rate of life fund from 2008 to 2012.
The growth rate of Fareast Islami Life Insurance is quite fluctuating. Though the rate of Padma
Islami Life Insurance followed a rising trend till 2010, after that it had a sharp decline.
Premium
FILI
PILI
PRILI
2012
2.4
-37.87
2.56
2011
6.07
10.78
17.53
2010
3.2
36.16
23.25
2009
97
76.95
40.28
2008
34
-21.1
23.87
120
100
80
60
FILI
PILI
PRILI
40
20
0
-202012
2011
2010
2009
2008
-40
-60
Page | 68
Interpretation: The trend in the growth rate of premium earned is not satisfactory for all the
companies. Padma Islami Life Insurance faced a negative premium growth rate in 2012. The
other two companies had a declining rate of growth of premium from 2009.
9.3 Ratio Analysis
Return on Asset
FILI
PILI
PRILI
2012
0.19
0.05
0.95
2011
0.13
0.25
0.88
2010
0.29
0.42
0.82
2009
0.34
0.36
0.81
2008
0.23
0.15
0.85
Interpretation: The higher the ROA, the better. Prime Islami Life Insurance had the highest
ROA from 2008 to 2012 compared to other companies.
Return on Equity
FILI
PILI
PRILI
2012
0.23
0.06
1.03
2011
0.24
0.29
0.95
2010
3.13
0.46
0.86
2009
0.36
0.41
0.89
2008
0.25
0.18
0.9
Interpretation: The higher the ROE, the better. Prime Islami Life Insurance had the highest
ROE compared to other companies throughout the year from 2008 to 2012.
Net investment income ratio
FILI
PILI
PRILI
2012
0.24
0.08
0.18
2011
0.12
0.04
0.14
2010
.17
0.03
0.2
2009
0.11
0.3
0.17
2008
0.13
0.06
0.16
Interpretation: The higher the net investment income ratio, the better. All the companies had a
fluctuating net investment income ratio throughout the year from 2008 to 2012.
Page | 69
9.4 Claim to premium ratio
FILI
PILI
PRILI
2012
0.2449
0.29
0.2397
2011
0.2023
0.14
0.1551
2010
0.1017
0.08
0.0984
2009
0.1029
0.06
0.0917
2008
0.133
0.07
0.1087
Interpretation: The lower the ratio, the better performance. Padma Islami Life Insurance had
lower claim to premium ratio compared to other insurance companies from 2008 to 2011.
However, in 2012 it had a higher ratio compared to other companies.
Expense ratio
FILI
PILI
PRILI
2012
0.3143
0.40
0.2397
2011
0.3743
0.39
0.3991
2010
0.3778
0.40
0.3816
2009
0.4393
0.42
0.4166
2008
0.3698
0.46
0.4629
Interpretation: The lower the ratio, the better the performance. From the table, we see that
Padma Islami Life Insurance had the higher ratio compared to other companies which proved
higher proportion of premium is used to pay claim settlement and other ex
Page | 70
Problems and prospect of Takaful

Business in Bangladesh
CHAPTER- 10
Bangladesh is a Muslim country and the country people has strong religious belief. The
insurance market in Bangladesh is also emerging with the increase of literacy rate and expansion
of business. Many people of our country who have strong religious belief are reluctant to take
conventional insurance due to presence of interest (riba) , uncertainty( gharar) and gambling
(maisir) . It is good opportunity for the Takaful business operator to cover the people who want
to have Takaful insurance for security. Like conventional insurance operation Takaful business
operation also have some problems. The problems and prospects of Takaful business operation in
Bangladesh are given below:
Page | 71
10.1 Challenges for Takaful Operators

The potential of Takaful is beyond question. But there are many hurdles to overcome if this
market is to realize its potential.
Human resource
Human resources pose a major obstacle to growth, as the market is facing a severe shortage of
qualified staff who understand both technical insurance principles and have an adequate
awareness of Shariah finance.
Customer awareness
One of the biggest challenges is creating customer awareness. Many Muslims live under the
misconception that insurance is contrary to the principles of Islam, particularly with regard to life
insurance. People have to be made aware that Takaful provides an acceptable religiously
validated solution. Similarly, non-Muslims need to be made aware of why Takaful is ethical.
Lack of unified rules
In Bangladesh Takaful business operation is almost new. It has stated in the year 2000. So it is
need to set out clear principles on how Takaful business should be taxed, and to create a
regulatory regime that does not treat Takaful less favorably than conventional insurance.
Financial instrument
The limited availability of short-term non-equity financial instruments such as sukuk and
Shariah-compliant money market instruments equivalent to treasury bills represent a further
challenge for Takaful companies, making managing their investment portfolio more challenging
than for conventional insurers who can simply invest in bonds and cash assets.
Lack of Islamic Law
Takaful business operation is different from the conventional insurance companies. But all the
Islamic insurance company need to follow the insurance act for conventional insurance. At least
government can take the steps to amend the insurance act 1938 for Islamic insurance operation.
Product innovation and after sale service
Page | 72
Along with these challenges, Takaful providers must enhance their product innovation and
continue to offer a high level of customer service. They must be able to understand evolving
customer and market-specific needs and be willing to renew or re-engineer product design and
consumer benefit packages, as well as expand customer reach across various distribution
channels.
Lack of commitment by the company
The members of the Islamic life insurance business do not follow Islamic rules and Shariah in
each operational activity strictly. This discourages the customers to take Islamic insurance in
some cases.
Lack of professionalism
There is lack of professionalism in Takaful insurance operation. There are a few numbers of
insurance professional and actuary in our country. The market research and other financial
research for Takaful business is also in insignificant magnitude. Because of all those problems
there is no dynamic change in the Takaful business operation in Bangladesh.
10.2 Prospects for Takaful Operators
Takaful insurance has bright prospect in Bangladesh. Besides the conventional insurance Islamic
insurance can flourish in our country. The prospect of Takaful business in Bangladesh In given
below:
Religious sentiment
The people of Bangladesh have strong religious belief. As Takaful insurance is based on Islamic
Shariah, it can take the place of conventional life insurance more easily.
Literacy rate
The literacy rate of country is in increasing trend. People understand the need of insurance for
savings and to protect family and him from unwanted contingencies. Takaful business can take
Page | 73
this opportunity by following the Islamic Shariah and by offering diversified products, services
to the people.
Business development
The prosperity of business and per capita income of the country people is the another opportunity
for Takaful business.
Group Insurance
Takaful life insurance companies in Bangladesh have introduced group insurance policies for the
business and other institution. It will cover a lot of people in a single policy. And most of the
Islamic financial institutions are now taking Islamic insurance from the Takaful life insurance.
Micro Insurance
The Takaful life insurance companies are now offering micro insurance. It enables the poor
people to take insurance for future savings and for unwanted contingencies. And it increases the
efficiency of economy.
Hajj bima
Takaful business offer hajj bima. It is an important policy for the Muslim people. If the insurance
company make this product more attractive by providing additional services it will attract more
people.
Lower rate of premium

In abroad people who want to take policy need to pay a handsome amount as installment. But the
Takaful insurance has offer product like Islamic DPS and other micro insurance policy in which
the policyholder need to pay only a minimum amount. So more people can buy policy if the
insurance company can successfully aware the people regarding policy.
Page | 74
Page | 75
Findings and Recommendation
CHAPTER- 11
11.1 Findings
The report was on the business operation of Islamic life insurance or family Takaful operation in
Bangladesh. There are three companies in Bangladesh which are offering Takaful product. After
completing the report there are some findings of the study are given below:
Product related:
The family Takaful companies offer different types of endowment products. All the three
companies have good varieties of polices.
Page | 76
Prime Islami life insurance offers Term Policies under group insurance which is
prohibited in Islamic Takaful because it is not a policy of cooperation. The policyholder
doesnt get anything on the event of his survival after the term of policy.
Prime Islamic Life Insurance also offer premium back lime insurance policy.
In Padma Islami Life insurance there is premium refunded term assurance policy which
refunds the premium on the survival of the policyholders.
Fareast Islami Life insurance offers largest numbers of policies. In three segment offer its
policies. It has group health insurance policies for the corporate entity.
All the companies offer micro insurance for the people with lower income. Padma Islami
life insurance offer a policy Deposit Pension Scheme with profit for which the
policyholders need to pay taka 100/- per month.
In Fareast Islami Life Insurance a policy is offered under micro insurance named Islamic
endowment assurance in which the minimum sum assured is 12100/- and a policy holder
can take maximum 8 units.
All the companies offers child protection, hajj bima and marriage insurance (Moharana
Bima) with attractive features and benefits.
Financial Statement related:
Padma Islami life Insurance have not disclosed the sources of investment in their
financial statement. So there is question about the compliance of Shariah permitted
investment.
There is no discloser of underwriting expense, lapsed polices that the make it
difficult to measure the financial performance in international insurance.
Performance Related
Although every year the amount of life fund, premium and asset of the companies
was increasing from 2008 to 2012, their growth rate followed a decreasing trend.
The financial performance and growth rate of Islamic insurance companies were
quite volatile from year to year.
However, Fareast Islamic Life Insurance has highest business performance in terms
of life fund, asset and premium, but their growth rate was quite volatile.
Among the companies, Prime Islamic Life Insurance had better financial strength
that is reflected by their ratios.
Page | 77
In the year 2012, insurance companies in Bangladesh were in hurdle race. Before
2012, the activities of the insurance companies were uncontrolled. Insurance
Development and Regulatory Authority (IDRA) issued some rules and regulations to
control the activities. Such initiative resulted in reduction of commission, direct
payment to the account of agent, overnight implementation etc. The employees of the
company faced difficulties in adopting the new rules and regulations. They felt
frustrated that had impact on the profit of the company. For this reason, amount of
premium, life fund, claim and investment income in 2012 are comparatively lower
than those in other years.
Others:
Website of any company is a matter of great important today. Because todays
customers are smart enough and the investors consider website of the company as
an important representation of company. All the three company has website but it
is not good enough.
Although the people of Bangladesh prefer Takaful life insurance than
conventional one, the acceptance rate of Takaful is still lower. It is worth
mentioning that the Islamic life insurance companies are less developed than
other financial companies. The scenario reflects in inefficient web site design, less
information provision, wrong marketing procedure, fraudulent activities and lack
of strict regulation.
Recommendation
After studying the three companies we have remarked some weak points of those companies. In
those segments the companies can enrich themselves. The recommendations for the three
companies are given below:
Website of any company is a matter of great important today. Because todays customers
are smart enough and the investors consider website of the company as an important
representation of company. All the three company has website but it is not good enough.
Fareast islami life insurance can design its website both in Bangla and English. As well
Page | 78
as Padma islami Life insurance also need to enrich its website. The presentation of annual
report of this company is not in smart manner.
Prime Islamic life offer term insurance policy under group insurance. As term insurance
policy is not permitted in Islamic insurance. The company can stop offering this product
for Shariah compliance.
Padma Islamic insurance should disclose the sources of investment in their financial
statement. Otherwise there should be question regarding the good governance.
The company can also disclose underwriting expenses.
Islamic life insurance companies must focus on product differentiation and diversification
that will increase their value and acceptance among customers as almost all these
companies offer products with more or less same features.
Government must focus on making the existing life insurance companies more efficient
rather than increasing them in number. Considering the preference toward Islamic life
insurance, government can convert the existing conventional life insurance companies
into Takaful one rather than making the market overcrowded.
People of Bangladesh are still ignorant about the mechanism of Islamic life insurance.
They must be properly educated about how the mechanism can work in the line of
Islamic Shariah. It requires different training program regarding marketing Islamic life
insurance products and provision of strict regulations to the agents and staffs.
Insurance Development and Regulatory Authority must make certain proper Shariah
compliance through ensuring presence of efficient Shariah scholars in the Shariah council
of Takaful life insurance companies.
Page | 79
Conclusion
CHAPTER- 12
Insurance, especially life insurance is an essential part of the social protection needed for any
society. It has its rightful place in Islam but years of misunderstanding and misconception have
created mental blocks against insurance in the Muslim culture. I believe Takaful or Co-operative
Insurance is the right way forward towards the breakdown and removal of such mental blocks.
This type of insurance has great deal to offer in Muslim countries where the spread of insurance
per person and per cent of GDP can increase manifold if the system of Takaful is projected
correctly and understood properly. It can genuinely enlarge the insurance market in areas where
traditional insurance has not been able to grow, as it should have done. This is true of personal
lines, especially of life insurance or family Takaful. In order to create the essential trust and
confidence, which is needed to remove the mental blocks just mentioned, the efforts to develop
and manage Takaful business must be genuine. Investors, entrepreneurs and insurers have good
opportunity to take up the challenge of developing insurance business on Islamic principles.
After all Takaful is intrinsically in accordance with the indigenous consumer needs.
Page | 80
Page | 81
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Introduction

1.4 .1 Company selection

Text books on life insurance and Islamic life insurance

Reference books on life insurance and Islamic life insurance

Annual report of three companies

Web sites of respective companies

Brochures provided by the companies

Web site of Insurance Development and Regulatory Authority (IDRA)

1.4.3 Data analysis

The capital provider (participant);

3.1 Concept of Takaful and Its Evolvement

3.2 Prohibitions of Gharar, Maysir and Riba

Policyholders co-operate among themselves for their common good.

It must operate according to Islamic co-operative principles.

Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain

The Policyholders' Fund

a) The assets of the policyholders' fund consist of:

Insurance premiums received

allocated to them by the Board of Directors.

The Shareholders' Fund

a) The assets of the shareholders' fund consist of:

Paid-up capital and reserves attributable to shareholders

policyholders' fund and technical and other reserves as is attributable to them

4.1 Fareast Islami Life Insurance Company Limited

10,00,00,000 Ordinary Shares of Taka 10 each

4,92,37,650 Ordinary Shares of Taka 10 each

4.1.2 Investment Portfolio

Equity Shares in CDBL

T. K. Bhaban (13th Floor),

Gazipura Sataish, Tongi Powrasava

4.1.4 Organogram of board and its committee

4.1.5 Employees and Agents

Prime Islami Life Insurance Ltd.

4.2.2 Investment Portfolio

Padma Life Tower, 115 kazi Nazrul Islam

Noor Jahan Sharif Plaza(6th Floor), 34 Purana

Paltan, Ps : Paltan. Dhaka-1000

Nobogram Road, Bottola. Barisal

Chandpur Sadar. District : Chandpur.

Monoharpur, PS : Kotwali. Comilla.

Paltan, Ps : Paltan. Dhaka-1000

Floor), Nilltuly Muzib Sarak, Po : Faridpur,

Chowrasta, Po : Joydebpur, Ps : Sadar.

Sarani, Shib Bari Moor, Khulna.

Po & Ps : Sadar. District : Mymensingh.

Sadar Road,District : Patuakhali.

4.2.4 Organogram of Company:

4.3 Prime Islami Life Insurance

Prime Islami Life Insurance Ltd.

Date of Commencement of Business

4.3.2 Investment Portfolio:

Statutory Deposit with Bangladesh Bank

Raj Bhaban(6th Floor)

Chowmohony, Pathantoly, Chittagong.

Rangpur Road, Barogola, Bogra.

99, Sadar Road, Barisal.

5.1.1 Ordinary Life

Amount payable on normal Death

Basic sum assured

Accidental Death Benefit

Double of sum assured

Age of the assured at commencement Minimum - 18 years and Maximum - 70 years