Date: 21st August 2017

MD.Nazrul Islam
Lecturer of SBS
Southeast University
Subject: Submission of term paper on Product and Services of Reliance Insurance Limited
Dear Sir,
We have prepared our final term paper of BUS-1133 course on Product and Services of Reliance
Insurance Limited. Which we are submitting along with this letter. It was an energizing
experience working on this activity. I am confident that, this term paper will help you to
understand what product and services provide by Reliance insurance Limited. I tried my best to
follow your guidelines in preparing this paper. Ihave presented what Ido believe to be most
important information to make this term paper as specific & coherent as possible. I expect that
this report will fulfill your requirements. Thank you for your kind consideration and guidance. I
hope my effort would satisfy you.

Sincerely Yours
MD.Raihan Ahsan Rabby

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 ACKNOWLEDGEMENT

Special thanks to MD.NAZRUL ISLAM who provided unreserved comments and guidance for the
completion of this assignment paper. Not forgetting the time that you always foregone, this work would not
have been finished. Indeed I am who I am because of you .I also grant special acknowledgement to all
the respondents in Reliance Insurance Company Limited that I appreciate for all your support in the
process and provision of information for my study. I wish to express my gratitude to my parents, brothers and
sisters. I appreciate for your readiness to facilitate me in what so ever incidence that challenged me. I would
like to heartily thank all those who have collectively helped to make this study a success my Lecturers and
all other colleagues in the School of School Of Business Administration Southeast University for
their guidance and support during the course of my study.

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 Table of Content

Serial Headline Page Number

Number

1. Chapter: 01 06-09
Introduction Part

Executive Summary 06

Introduction 07

Objective 08

Methodology 08

Limitation 09

2. Chapter: 02 10-11
Company Overview

Background Of RIL 10

Objectives of RIL 11

Mission and Vision 11

3. Chapter:03 12-16

Product & Services 12-16

Chapter: 04 17-19
4.

Conclusion 17

Recommendation 18

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 Reference 19

Chapter-01(Introduction Part)

Executive summary

Peoples life, livelihood and properties are always risky because any kind of uncertain event can
happen anytime which can cause unexpected losses. The process of insurance has been evolved
to safeguard the interest of people from uncertainty by providing certainty payment at a given
contingency. It provides indemnification against losses arising from the happening of some
uncertain events. Insurance plays an important role in modern business and commerce. It
stimulates expansion of trade operation to a very great extent for some consideration
named premium and provides opportunity to businessmen to develop sense of independence
and security from anxiety. The insurance market in Bangladesh now consists of two state
owned corporations: Sadharan Bima Corporation and Jibon Bima Corporation, Forty-three non-
life private insurance companies, sixteen private life insurance companies and one foreign life
insurance company; a total of 62 insurance companies. Thus the insurance sector in Bangladesh
has grown substantially and depended remarkable with number of companies in both life and
non-life segments with the expansion of size of the insurance market, the value of assets of the
industry has also been increased substantially. The general insurance includes property
insurance, liability insurance and other forms of insurance. Reliance Insurance Company stands
as insurer of public sector assets on its own behalf and also on behalf of private sector general
insurance companies and also playing a role of national reinsurance to the reinsurance industry.
It also contributes to the GDP of our country but it is still in a primary stage. Though limited but
contributes of insurance business in the economic development of the country are very
important. The premiums collected by RIL play a major role in building up national capital. This
sort of capital can increase overall production by investing in different sectors. Compare to
other countries in the subcontinent the progress of general insurance business is very slow.
Various problems, obstacles and peoples lack of knowledge and concepts regarding insurance

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are making the progress of this business slow. Though having many problems on behalf of
general insurance business in Bangladesh, GDIC has continued and also is continuing its
business with increasing growth rate which helps the development of national economy.

Introduction
Insurance is not a new business in Bangladesh. Almost a century back, during British
rule in India, some insurance companies started transacting business, both life and general, in
Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49
insurance companies transacted both life and general insurance schemes.

The government of Bangladesh nationalized insurance industry in 1972 by the

Bangladesh Insurance (Nationalization) Order 1972. Through an ordinance passed in 1984
amending the Insurance Act 1938 and the rules under the Insurance Corporations Act 1973, the
initial entrants into the market, including Reliance Insurance Limited (RIL), by the way of their
professional approach were instrumental in bringing a change and gave the insurance sector a
decent shape and structure. However when subsequent insurance companies entered into the
market, the insurance sector found itself saturated which caused unethical practices and
relentless competition.

Reliance, as being the first generation insurance company in Bangladesh, realized the
problems within the industry at the very outset and were able to commission a very structured
and pragmatic base for managing the affairs of the company.

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 Objectives:

To gather comprehensive knowledge about insurance Company

Indentify the Product and services of Reliance Insurance Company limited
To make some recommendation regarding the problems of Reliance Insurance Company
Limited.

Methodology:

This report has been prepared on the basis of experience gathered during the period of
internship. For preparing this report, I have also got information from annual report and
website of the RILs. I have presented my experience and findings by using different chart and
tables, which are presented in the analysis part. The details of the work plan are furnished
below:
Data collection method: Relevant data for this report has been collected primarily by
direct investigation of different records, papers, documents, and operational process
and different. The interviews were administered by formal and informal discussion. No
structured questionnaire has been used. Information regarding office activities of the
insurance has been collected through consulting records and discussion.
Data Sources:
The information and data for this report have been collected secondary sources.
We collect Information from RIL website; Annual report and different manual
publish report.

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 Limitation of the study

To prepare this report, I have faced some limitations, which are mentioned in the fallows :

Time Limitation
The main and the first constraints is time that hinder to cover all aspect of the study. In three
months it is not possible to cover learning about any bank properly and also going to write a
report on this.

Lack of data:
If anyone can wise than he can gather primary date to the banks employees. But this data is
not proper for writing a report. Secondary data is also very rears. It is just only the annual
report and the website.

Limitation of scope:
While collecting data, We are not able to contact with any employee of Uttara Bank Limited.

Personal Limitation:
Bank policy was not disclosing some data and information, for obvious reasons.

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 Chapter :02 (Company Overview)

Background of RIL

Reliance Insurance Limited was established in 20th March 1988.Reliance Insurance Limited being
incorporated on the 20th of March 1988, starts operation by virtue of the Certificate of
Commencement of Business issued by Registrar of Joint Stock Companies on the 22nd of March
1988. It obtains Certificate of Registration from Controller of Insurance on the 7th of April 1988.
Currently the company is regulated by Insurance Development and Regulatory Authority (IDRA).

Pioneering the industry Reliance Insurance Limited proudly celebrated its Silver Jubilee in 2013.
The mission of Reliance is to be one of the outstanding amongst insurers in Asia by putting the
customer at the heart of everything they do

Equipped with a team of experienced personnel, the company is ever-ready to cater to all the
insurance needs required by people of Bangladesh thus providing protection to personal
properties and cover unfortunate casualties. Almost all the Multi-nationals working in
Bangladesh are in Reliance Insurance Companys port-folio and they provide them with
international standard service.

The Company looks forward to reaching people through their personalized services as well as
through various media communications. They are ensuring quality services at a competitive
price and promises to be beside anyone as soon as they need.

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 Objectives Of RIL

To gather comprehensive knowledge on insurance activities.

To identify the product & Services of RIL.

Service excellence is one of the objectives of RIL.

RIL objective is the complete automation and computerization of all of its insurance
activities.

Mission and vision

Vision:
Our vision is to:

Become the premier insurance organization

Become first choice in Bangladesh
Maintain good reputation for dependability
Professionalism
Provide the highest standard of customer services.

Mission:

Our Mission is to:

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 Grow significantly and achieve significant non-life insurance market share.
continue delivering attractive returns to our shareholders.
become a caring organization and employer of choice.
invest in top quality human resources and develop full potentials of employees by
providing continued training and insurance education.
bring innovation in insurance products and selling techniques.
Chapter: 03

Products & Services

Reliance Insurance Limited provides a wide array of general insurance services such as the
followings:

1. Fire Insurance
Provides insurance against to fire to all type of properties having intrinsic value like
furniture, building, fixtures, fittings, goods, plant and machinery and merchandise
Fire & Allied Perils Insurance

2. Property Damage All Risk Insurance

Property insurance is a policy that provides financial reimbursement to the owner or renter of a
structure and its contents, in the event of damage or theft.Property insurance can
include homeowners insurance, renters insurance, flood insurance and earthquake insurance.
Fire
Lightning
Riot & Strike
Explosion
Malicious Damage
Earthquake
Flood
Cyclone & Electrical Short Circuit (Electrical Clause B) and Burglary.

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 3. Industrial All Risk Insurance

This insurance provide covers of all risks of loss or damaged to the Insured propertyother than
by an excluded causes. Provided that the liability of the Insurer in respect of any one loss or in
the aggregate in any one period of insurance shall in no case exceed.

Material damage
All risks/perils other than a few perils excluded specifically in the policy wording.
Business Interruption for a certain period of time (Optional).

4. Marine Cargo Insurance

Provides insurance for risk in transportation of goods through river, sea, air, railway, truck

Marine Cargo Insurance transit by Steamer or Powered Vessel

Marine Cargo Insurance transit by Rail/Lorry/Truck
Marine Cargo Insurance transit by Inland Rail or Road
Marine Cargo Insurance transit by Inland Cargoes (water borne)
Marine Cargo Insurance transit by Air Cargo

5. Marine Hull Insurance

Provides insurance for risk of vessel / ship going in sea or river

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 Total Loss Only (TLO)
Inland Time Clauses Hull (ITC)

6. Health Insurance

The Health Insurance covers expenses of medical treatment while hospitalized due to illness or
injury. Each confinement in broad terms includes:

Hospital Accommodation
Consultation with Physician or Surgeon
Medical Investigations
Surgical Operation (major and intermediate)
Use of Operation Theatre facilities, anesthesia, and other services.
Medicines
Ancillary services like labour room services, ICU/CCU room, post-operative room, blood
transfusion, ambulance service etc.

7. Engineering Insurance
Provides Insurance for Machinery Breakdown, Deterioration of stock. It also provides
insurance for all kind of erection risk and contractors risk
Machinery Insurance (Machinery Breakdown)
Deterioration of Stock (DOS)
Boiler and Pressure Vessel (BPV)
Electronic Equipment Insurance (EEI)
Erection All Risks (EAR)
Contractors All Risks (CAR)
Work Plant (WP)
Oil & Gas Well Drilling Equipment Package (OGD)
Contractors Plan & Machinery (CPM)
Hotel Owners All Risks (HOAR)

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 8. Overseas Travel Insurance

Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost
luggage, flight accident and other losses incurred while traveling, either internationally or
domestically.

Overseas Travel Insurance protects

Accidental injury
Sudden sickness while traveling overseas for Business
Holidays
Studies and Employment.

9. Miscellaneous Insurance
Provides Insurance for all kind of business accidents and interruptions, personal accidents
including workmens compensation
Agent Banking Insurance
Bankers Blanket Bond
Burglary
Cash in Safe
Cash in Transit
Cash on Counter
Cash in Premises
Commercial General Liability (CGL)
Clinical Trail Insurances
Employers Liability
Fidelity Guarantee
Hole in One Insurance/Event Cover
Marine Terminal Operators Liability (MTOL)
Personal Accident
Product Liability (PRL)

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 Public Liability (PL)
Professional Indemnity
Workmens Compensation

10.Motor Insurance

Provides all kind of insurances for various types of automobiles

This policy provides protection in respect of:

Own damages or loss of the Motor Vehicle and/or its accessories whilst thereon,
by fire explosion, self ignition or lighting
by burglary housebreaking or theft
by Riot and Strike including malicious activities
by Earthquake (Fire & Shock damage)
by Flood, Typhoon, Hurricane, Storm, tempest, inundation, cyclone, hailstorm, frost.
by accidental external means

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 Chapter: 04

Conclusion

Reliance Insurance Limited is one of the largest insurance companies in Bangladesh. In present
insurance is too much important to the business and individual sector. Most of the companies
provide more or less same services. For this reason the competition is increasing day by day
between the insurance companies. On the other hand some new insurance companies are going
to start businesses in the competent market. RIL need to develop their some productive esectors.
In present, a company cannot establish properly without developing information technology.
People search their desires requirement through Internet so, insurance companies need to
develop Web address to increase both foreign and local investors. The progress of insurance
business depends on the progress of economic condition .Insurance business also faces many
problem. So if we develop economic condition as well as overcome the problems, it will help a
lot to flourish this business in our country. Like most of the organizations, RIL wants its
employees to be energetic, visionary, and talented. Minimum qualification for entry level is an
undergraduate degree in the related field. Job experience is preferable. After selection, the
selected candidates have to go through relevant information about the organizational activities
which are shared with them as much as possible. Plus, RIL puts high emphasis on working in a

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team oriented environment. So entry level employees get a sense of belonging in the
organization also making them enthusiastic with their career with RIL.

For the middle level jobs, a minimum of postgraduate degree in related field is required.
Experience plays a primary role for middle and supervisory jobs. So either employees within the
organization are promoted or, if a new individual is given the job, his/her prior job experience is
taken into consideration In the middle level, recognition for job performance serves as a
motivating factor. RILs target market is relatively broad since they cover a large portion of the
insurance services. Their services are acquired by various large organizations ranging from
multinational companies, manufacturing industries, aviation companies who needs the services
of fire insurance, marine cargo insurance, general aviation industries, etc and many others while
they also provide smaller services to the general public like motor insurance.

Recommendation
RIL will have to figure out how to survive in current competitive market. If all problems can be
solved it will result in reduced cost, improve the quality, and increase efficiency delivery. Some
recommendations are given below:
1. First of all top management need to get an educated person who can speak in English and he
can communicate with other easily. He must also be able to communicate effectively in his own
language i.e. Bengali.
2. The company should produce high quality product keep close contact with customer.
3. The company should open Islamic Branches.
4. Product price should be reduced for customer satisfaction.

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