Jiban Bima Corporation

Report on
JIBAN BIMA
CORPORATION
Page 1 of 88
JIBAN BIMA CORPRATION
Course –-
FIN # 125
Principle of Insurance
Prepared for –-
Chowdhury Shariar Khan

Lecturer, BBA Department,
Stamford University, Bangladesh
Prepared by –-
Name ID No.
1. Abu Nawsher MD. Fahad 02909064
2. S. M. Rasel 02909077
3. Md. Nayeemul Islam (Leader)
02909078
4. Mousumy Akter 02909079
5. Rubaiyat Ahmed 02909125
6. Manzoor Ahmed Jamil 02909167
7. Md. Khairul Islam Shajib
02909171
Stamford University, Siddeswari Campus,

Bangladesh
Page 2 of 88
Letter of Transmission
Date : 11 November 2007
Chowdhury Shriar Khan

Course # FIN 125
Batch – 29th F
BBA Department
Stamford University, Bangladesh.
Subject: Submitting the report on Jiban Bima

Corporation.
Dear Sir,
We are glad to submit our report on the specific as you have
assigned us to prepare a report as a partial requirement of the
course. Now we are looking forward to your kind appraisal regarding
this report.
The report reviews on the Jiban Bima Corporation.
We were pleased to prepare this report and we expect that it provides
you overall concept on the Jiban Bima Corporation.
It would be appreciated, if you please evaluate our report. We would
like to thank you for your support and feedback.
Thanking you,
Sincerely yours
1. Abu Nawsher MD. Fahad ID # 02909064

2. S. M. Rasel ID # 02909077
3. Md. Nayeemul Islam (Leader) ID # 02909078
4. Mousumy Akter ID # 02909079
Page 3 of 88
5. Rubaiyat Ahmed ID # 02909125
6. Manzoor Ahmed Jami ID # 02909167
7. Md. Khairul Islam Shajib ID # 02909171
Acknowledgements
There are few people who deserve to be thanked for making this
report a success.
First of all we would like to show our gratitude to our course instructor
Chodhury Shriar Khan for helping us out through the whole course
and for guiding us in our work. This really helped and motivated us to
do the report successfully.
Special thanks go to those people who had provided information

needed to prepare this report for giving their valuable time.
Special thanks go to all our team members for being cooperative,

responsive and hard working. We have given our best efforts to make
this paper a successful one.
During this project we faced some sorts of problems. The main

problem was the transportation system of our country. Due to the bad
situation of the traffic jam, we had problem to take interviews of the
employees and to get the time of the senior level employees. We also
had problems to communicate with the group members to discuss
about the problem.
Page 4 of 88
Table of Contents
No. Title Page

01 History of insurance in Bangladesh 06
02 Introduction 06
03 Mission Statement 07
04 Vision 07
05 Company Overview 08
06 SWOT Analysis 74
07 Strategic Analysis 76
08 Conclusion 81
09 Bibliography 83
Page 5 of 88
1. HISTORY OF INSURANCE IN BANGLADESH : -
After British period 49 companies were operating in East Pakistan
from 1947 to 1971. The companies were from various origins; like
British, Australian, Indian, and Pakistani. After liberation war 5
insurance companies were formed in Bangladesh in 1972. Those are-
Jatiya Bima Corporation – Corporate Head Office,
Teesta Bima Corporation – General Insurance,
Karnaphuli Bima Corporation – General Insurance,
Rupsa Jiban Bima Cotpotation – Life Insurance,
Surma Jibon Bima Corpotation – Life Insurance.
In 1973 the general insurance companies had merged as Sadharan

Bima Corporation and the life insurance companies merged as Jibon
Bima Corporation. All the exiting 49 companies started their operation
under these two corporations. ‘The Insurance Ordinance Act 1984’
was passed in Bangladesh parliament in 1984. After that all the
companies started their operation individually in Bangladesh.
2. INTRODUCTION : -
The Jiban Bima Corporation (JBC) is the lone state-owned life

Insurance company in Bangladesh, which started its maiden journey
on May 14,1973 with assets and liabilities worth TK. 15.70 crore (157
million) of defunct 37 life Insurance companies. Since its inception,
JBC is working among the people of Bangladesh with two basic
objectives: firstly, to cover the risks and raise savings habits among
Page 6 of 88
the people and secondly, create funds for the country’s economic
development through innovative life insurance schemes.
Meanwhile, the life fund of Jiban Bima Corporation has shot up to TK.
577.3 crore (5773 million), the highest in industry, which was only TK.
21.83 crore (218.3 million) in 1973. JBC has paid TK. 755.4 crore
(7554 million) against various claims, the highest such payments in
the country’s life Insurance business. The JBC’s investment has
reached TK. 578.25 crore (5.78 billion) from only TK. 19.7 crore (197
million) in 1973.
The JBC has the largest network all over the country with 6 regional,
10 zonal, 61 sales and 365 branch offices.
3. MISSION STATEMENT : -
To help people improve their standard of livings with a saving content
and create funds for nation’s economic development.
4. VISION : -
A business organization that covers risks and offers profits to make
life a matter.
Page 7 of 88
5. COMPANY OVERVIEW : -
5.1. Board of Directors : -
Mr. Rafiqul Islam Chairman

1
Former ERD Secretary and Director
Mr. Sirajul uslam

2 Director
President Secretary
Sayed Ataur Rahman

3 Director
Fishery & Life Stock Sectretary
Mr. Nurunnabi Talukder

4
Joint Secretary, Ministry of Commerce
Mahbub Alam
5 Director
Additional Secretary, Ministry of Finance
Dr. Md. Shohrab Uddin

6 Director
Former Deputy Governor, Bangladesh Bank
Page 8 of 88
Md. Hanif
7 Director
Managing Director, Jiban Bima Corporation
5.2. Objectives : -
Objectives are specific short term target. To accomplish the mission

Jiban Bima Corporation has a wide range of objectives. Although
these objectives are not in formal written format but they strictly
struggle to accomplish these objectives. In other word these
objectives are the pillar for the ultimate mission. Some of these
significant objectives are given below –
Provide life insurance benefit to the people at a

competitive cost.
Mobilize savings through various schemes and create

funds for economic development of the country.
Offer products for maximum returns at minimum cost.

Create awareness among the people to develop savings
habits.
Develop suitable schemes to meet the need of all classes

of people.
5.3. Organizational Chart : -
Page 9 of 88
Page 10 of 88
M.D.
Assistant Manager
G.M.
D.G.M. Junior Officer
A.G.M. Senior Assistant
Manager Junior Assistant
Deputy Manager 4th Class Peon
5.4. Operation : -
Page 11 of 88
Head Office and its Concerned Divisions
The Head Office of Jiban Bima Corporation (JBC) is located at 24,

Motijheel, Commercial Area, Dhaka, Bangladesh with twelve storied
own premise. The activities of regional, zonal. sales and branch
offices of JBC is conducted through eight divisions. The following
table shows the concerned divisions of Head Office.
Serial
Name of the Division
No
1 Administration Division
2 Development Division
3 Computer Division
Accounts and Finance

4
Division
Group Insurance
5
Division
6 Technical Affairs Division
Assets and Engineering

7
Division
Internal Audit and
8
Inspection Division
5.5. Human Resources : -
There are three categories of Employees in Jiban Bima Corporation.
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(a) Administrative Officers and Employees:
i. Total approved manpower is 2073 as per TOE of 1984.
(b) Development Managers (DM) and Development Officers (DO):
i. Existing number of Development Managers and Development

Officers are 10675 as on 30.06.2003.
(c) Life Insurance Agents:
Total number of Agents are 45,000 as on 30.06.2003.
Main Features of Service Regulations of Development

Manager (DM) & Development Officer (DO):
► Performance Standard for a Development Manager:
The performance standard for a Development Manager (DM) of any

category for the year 2003, 2004 and 2005 and onward shall be the
first year premium income quota to be procured through Development
Officer directly working under him as per the following table:
Annual First Year Premium Income

Category of Development Quota.
Manager 2005 &
2003 2004
onward
Development Manager-I TK.6,35,000 TK.7,25,000 TK.8,10,000
Development Manager-II TK.4,75,000 TK.5,50,000 TK. 6,30,000
Development Manager-III TK.3,50.000 TK.4,00,000 TK.4,50,000
► Performance Standard for a Development Officer:
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The performance standard for a Development Officer of any category
for the year 2003, 2004 and 2005 and onward shall be the first year
premium income quota to be procured through insurance agents
directly working under him as per the following table
Annual First Year Premium Income

Category ofQuota.
Development
Officer 2005 &
2003 2004
onward
Development
TK.1,10,000 TK.1,20,000 TK.1,30,000
Officer-I
Development
TK.90,000 TK.I,00,000 TK.1,10,000
Officer-II
Development
TK. 75,000 TK. 85,000 TK. 90,000
Officer-III
► Limitation of Number of Development Officers:
The number of Development Officers directly working under any

category of Development Managers shall be limited as under:
Limitation of
Category of
Manpower
Development
Manager Minimum Maximum
Development
9 20
Manager-I
Development
7 16
Manager-II
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Development
5 12
Manager-III
► Production Bonus of DM & DO:
The production bonus shall be payable after confirmation of 65%

achievement of 2nd year renewal premium income of performance
standard.
5.6. Information Technology : -

Jiban Bima Corporation is committed and dedicated to provide the
best and prompt services to its clients. JBC is one of the pioneer
organizations of Bangladesh that introduced the Information
Technology in serving their business. To speed up its services, the
Corporation uses latest Information Technology. About 400 (four
hundred) thousands policy information are stored in computers of
JBC.
To modernize the computer system, JBC is now in the process of

implementing the modern Client Server Architecture including Local
Area Network (LAN) & Wide Area Network (WAN) Open System for
Head Office and Six Regional Offices.
5.7. Policy Statistics : -
Page 15 of 88
Policy Statistics
Insurance
Serial
Policy In force Amount
No.
(TK. in Million)
1 Individual Insurance 30,985.20
i. No. of Policies:-
3,95,947
2 Group Insurance 17,572.00
i. No. of Institutions:-
231
ii. No. of Members:-
1,72,110
5.8. Fixed Assets of Jiban Bima Corporation : -
Fixed Assets of the Corporation
Insurance
Serial Premises on
Fixed Assets Amount (TK. Number
No. Rent
in Million)
1 Commercial Dhaka 7 3,63,517 Sq.
Bhaban Feet
2 Commercial Naryangonj 2 37,589 Sq.
Bhaban Feet
3 Commercial Chittagong 5 1,51,571 Sq.
Bhaban Feet
4 Commercial Khulna 1 28,568 Sq.
Bhaban Feet
Page 16 of 88
5 Commercial Rajshahi 1 8,008 Sq. Feet
Bhaban
6 Commercial Rangpur 1 6,820 Sq. Feet
Bhaban
Total 17 5,96,153 Sq.
Feet
5.9. Re-Insurance : -
Jiban Bima Corporation’s Re-Insurance
Jiban Bima Corporation (JBC) reinsures the surplus of the retention

limit of Insurance amount. The recent retention limit is TK. 1.5 million.
To cover the access insurance risk the Corporation has alliance with
the following two foreign reinsurance companies:-
1. Swiss Re-Insurance
Company, Switzerland
2. Munich Re-Insurance
Company, Germany
Jiban Bima Corporation is also the re-insurer of the private Life

Insurance companies of Bangladesh. The Companies are:-
1. Sandhani Life Insurance Co. Ltd.

2. Homeland Life Insurance Co. Ltd.
3. Padma Life Insurance Co. Ltd.
4. Rupali Life Insurance Co. Ltd.
Page 17 of 88
5. Sunflower Life Insurance Co. Ltd.
6. Fareast Life Insurance Co. Ltd.
7. Baira Life Insurance Co. Ltd.
8. Prime Life Insurance Co. Ltd.
9. Popular Life Insurance Co. Ltd.
10. Progressive Life Insurance Co. Ltd.
5.10. Financial Information : -

5.10.1. Business Performance (1998-2002)
Income (Taka in Million)
Serial Year
Sectors
No. 1998 1999 2000 2001 2002
First year
1 401.2 494.6 567.5 641.0 582.6
Premium
Renewal
2 913.0 1058.7 1178.0 1228.6 1124.5
Premium
Group
3 Insurance 88.6 89.1 96.8 90.9 91.0
Premium
Income
from
4 Investment 242.8 356.0 359.7 411.6 442.6
and other
sources
Total Income 1645.6 1998.4 2202.0 2372.1 2240.7
Page 18 of 88
Page 19 of 88
5.10.2. Claim Settlement Performance
Claim Payment Statement Performance (Since 1973-2002)
CLAIM
(Taka in Milion)
Year
DEATH MATURITY TOTAL
CLAIM CLAIM CLAIM
1973 13.4 11.1 24.5
1974 9.6 11.4 21.0
1975 10.3 15.2 25.5
1976 11.7 17.7 29.4
1977 12.1 18.8 30.9
1978 11.3 22.2 33.5
1979 14.4 24.9 39.3
1980 15.1 29.7 44.8
1981 17.8 35.5 53.3
1982 21.9 43.9 65.8
1983 20.4 51.3 71.7
1984 29.1 59.1 88.2
1985 30.5 72.7 103.2
1986 43.7 88.9 132.6
1987 44.4 94.8 139.2
1988 57.9 121.6 179.5
Page 20 of 88
1989 54.3 146.0 200.3
1990 55.2 162.5 217.7
1991 47.3 170.6 217.9
1992 66.6 209.6 276.2
1993 75.4 224.9 300.3
1994 73.5 228.8 302.3
1995 85.9 252.3 338.2
1996 93.3 276.0 369.3
1997 105.5 301.6 407.1
1998 132.1 361.9 494.0
1999 110.0 451.2 561.2
2000 128.3 522.1 650.4
2001 126.7 573.1 699.8
2002 124.4 685.5 809.9
2003 39.0 588.0 627.0
Total 1681.1 5872.9 7554.0
5.10.3. JBC’S Investments (1998-2002)
Investments of Jiban Bima Corporation
(Taka in
Million)
Serial Year
Sector of Investment
No. 1998 1999 2000 2001 2002
Page 21 of 88
1 Govt. Security & Bond 1078.9 1225.2 1325.3 1450.1 1538.7
2 I.C.B. Unit etc. 11.1 11.1 11.1 11.1 11.1
3 Mortgage Loan 64.8 69.6 67.9 68.8 70.5
4 Companies’ Share 30.4 40.4 40.4 45.4 47.0
Debenture & Bridge
5 10.9 9.8 9.1 9.0 8.8
Finance
6 Bank Deposit 1319.2 1472.2 1620.5 2013.9 2281.0
7 Real State Investment 604.8 608.3 608.3 608.3 608.3
8 Policyholder’s Loan 208.5 261.3 310.8 370.2 447.7
Total Investment 3328.6 3697.9 3993.4 4574.5 5013.1
Page 22 of 88
5.10.4. JBC’S Incomes (1998-2002)
Incomes of Jiban Bima Corporation
(Taka in
Million)
Serial Year
Sector of Income
No. 1998 1999 2000 2001 2002
1 Interest on Deposit 124.5 234.7 224.8 242.8 278.2
Interest on Policy
2 31.6 35.2 45.0 43.1 68.6
Loan
3 Dividends 8.9 1.5 3.6 3.4 5.4
4 Rents 72.4 75.2 76.1 77.8 79.4
Page 23 of 88
Total Income 237.4 346.6 349.5 367.1 431.6
5.10.5. JBC’s Life Fund (1998-2002)
(Taka in
Million)
Year 1998 1999 2000 2001 2002
Life
3568.00 4166.00 4741.40 5359.90 5773.54
Fund
Page 24 of 88
5.11. Existing Schemes : -
Serial
Schemes
No
Anticipated Endowment Insurance
1
With Profit Plan-05
Anticipated Endowment Insurance
2
Without Profit Plan-25
Child Endowment Insurance Without
3
Profit Plan-47
Child Protection Policy With Profits
4
Plan-09
Double Protection Insurance With
5
Profit Plan-10
Page 25 of 88
Endowment Assurance With Profit
6
Plan-03
Endowment Assurance Without Profit
7
Plan-23
Grameen Jiban Bima With Profit
8
Plan-91
Granted Bonus Endowment
9
Insurance Plan-48
10 Group Endowment Assurance
11 Group Term Insurance
Joint Life Endowment Insurance With
12
Profit Plan-08
13 Marriage Endowment Policy Plan-07
Money Back Term Insurance Policy
14
Plan-50 (Without Profit)
Multiple Payment Policy With Profit
15
Plan-06
16 Pension Policy Plan-12
Progressive Premium Policy With
17
ProfitPlan-04
18 Single Premium with Profit Plan-17
Swanirber Bima (Single Premium
19
Policy) Plan-52
Term Insurance Without Profit Plan-
20
51
Whole Life Assurance With Profits
21
Plan-01
22 Whole Life Assurance Without Profits
Page 26 of 88
Plan-21
Anticipated Endowment Insurance With Profit Plan-05
Features:
Under this plan policies are generally referred as Anticipated

Endowment Assurance or three Payment Plans. Policies under this
plan are issued for 12, 15, 18, 21, 24 and 30 years term.
If the policy is proposed under with profit table-05 it continues to

participate in the bonuses of the corporation even after the assured
has received the first and second instalments. Policy is also issued
under without profit plan-25.
Policy under this plan acquires paid-up value, loan and surrender
value after premium has been paid for two/three consecutive years.
Paid-up and surrender Value:
Paid-up and surrender value are also available under this plan.
Benefits:
Survival Benefits:
i. 25% of sum assured (without bonuses) is available at the end

of period equal to one third of the policy term.
ii. 25% of sum assured (without bonuses) is available of the end of

a period equal to two-third of the policy term and
iii. Final payment of 50% of the sum assured (with full bonuses in
case of with profit) at the end of the term.
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Death Benefits:
Full sum Assured +Acquired Bonuses (In case of with profit policies).
PlanParameters:
* Minimum Maximum
Entry Age (Year) 20 50
Sum Assured (Taka) 1000 No limit
Term (Year) 12 30
Maximum Policy loan

Mode of Payment
Maturity Age available
Monthly, Quarterly, Half-
70 Yes
Yearly, Yearly
Anticipated Endowment Insurance Without Profit Plan-25
Features:
Under this plan policies are generally referred as Anticipated

Endowment Assurance or three Payment Plans. Policies under this
plan are issued for 12, 15, 18, 21, 24 and 30 years term.
If the policy is proposed under with profit table-05 it continues to

participate in the bonuses of the corporation even after the assured
Page 28 of 88
has received the first and second instalments. Policy is also issued
under without profit plan-25.
Paid-up and surrender Value:
Paid-up and surrender value are also available under this plan.
Benefits:
Survival Benefits:
i. 25% of sum assured (without bonuses) is available at the end of

period equal to one third of the policy term.
ii. 25% of sum assured (without bonuses) is available of the end of

a period equal to two-third of the policy term and
iii. Final payment of 50% of the sum assured (with full bonuses in
case of with profit) at the end of the term.
Death Benefits:
Full sum Assured +Acquired Bonuses (In case of with profit policies).
PlanParameters:
* Minimum Maximum
Entry Age
20 50
(Year)
Sum 1000 No limit
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Assured
(Taka)
Term
12 30
(Year)
Maximum MaturityPolicy loan

Mode of Payment
Age available
Monthly, Quarterly, Half-
70 Yes
Yearly, Yearly
Child Endowment Insurance Without Profit Plan-47
Features:
Under this plan the sum assured is payable on maturity of the policy
provided the child is then alive. On death of the child before maturity
total premium paid (excluding first year’s premium) is refunded to the
assured with 2% simple interest provided the Policy is not required to
be continued for the benefit of another child. The premium is payable
until maturity or death of the policyholder which one is earlier. No
surrender value and policy loan are available under this plan.
Benefits:
Survival Benefits: -
The Sum Assured is payable on maturity.
Death benefits:
Page 30 of 88
On the death of child before maturity total premium paid (except the
first year premium) are refunded with 2% per annum simple interest.
In the case of death of the policyholder premium ceases and the full
sum assured is paid at the expiry of the selected term to the child
nominated in the policy.
Plan Parameters:
* Minimum Maximum
Entry Age 25 50
(years)
Sum Assured 1000 No limit
(Taka)
Term (Year) 10 21
Mode of Payment Maximum Policy loan

Maturity and
Age surrender
value
Yearly, Half-Yearly, Quarterly, 60 Years Not available
Monthly
Child Protection Policy With Profits Plan-09
Features:
Polices under this plan are issued jointly on the life of a child and the
Page 31 of 88
payer. The corporation entertains the life of a father only as a payer. If
the father is not alive or his life is not insurable mother may be
considered as a payer.
Policies under this plan mature at the age 18 to 25 of the child while
the minimum age at entry of the child is six months with maximum of
17 years. Maximum maturity age of child is 25 years minimum 18
years. Medical examination is required for the Payer and the child.
This is a with profit policy. Surrender value is also given under this
plan.
Benefits:
The sum assured with bonuses is payable on survival of the policy

holder (Payer) and the child.
Death benefits:
If the payer dies before the maturity of the policy, the premium ceases
and the child is paid as under.
i. An income of TK. 100 per thousand sum assured per annum till the
expiry of the policy term.
ii. Full face value of the policy after the expiry of the policy term
inclusive of the accrued bonuses
(In case of the death of the child)

Age of the child at death 1 year 10% of the sum
assured with bonus.
assured with bonuses.
Page 32 of 88
Age of the child at death 10 year or more full sum
Plan Parameters:
* Minimum Maximum
Entry Age for Payor 20 50
(years) 6 Months
Entry Age for child
(years)
Sum Assured (Taka) 6000 No limit
Maturity Age of the 18 25
child

Maturity available
Age
Page 33 of 88
Yearly, Half-Yearly, Quarterly and65 for payer No
Monthly
Double Protection Insurance With Profit Plan-10
Features:
Policy under this plan is most suited for people desirous of making
provision for their own future. In the event of a policy holder's death
during the selected term of the policy (before maturity) double the
basic sum assured becomes payable .The survival benefits, on the
other hand, is the basic sum assured plus the accrued bonuses.
Benefits:
Sum Assured + Acquired Bonuses
Death benefits:
Double the sum Assured + Acquired Bonuses
Plan Parameters:
* Minimum Maximum
Entry Age 20 55 for standard life
(years) 40 for sub standard
life
(Taka)
Term (Year) 10 25
Page 34 of 88
Mode of Payment Maximum Policy loan and
Maturity surrender value
Age available
Yearly, Half-Yearly, Quarterly and 65 Years Yes
Monthly
Endowment Assurance With Profit Plan-03
Features:
• Moderate Premiums
• High Liquidity
• Savings Oriented
Endowment assurance is the surest and the safest method of

guaranteed cash provision either at a specified time or at death. It
serves the requirements of the family in various shapes by way of
income at retirement, education of children, or clean capital for
business. Endowment assurance policies are available both on with
profit (Table-03) and without profit (Table-23) either for a specified
number of years or for a specified age of the assured.
Page 35 of 88
Benefits:
Survival benefits:
Full sum assured + acquired bonuses (in case of with profit).
Death benefits:
Plan Parameters:
* Minimum Maximum
Entry 50 for male
20
Age(Years) 40 for female
Sum Assured
1000 No limit
(Tk.)
Term (Years) 10 50
Max Policy loan and

Mode of Payment Maturity surrender value
Age available
Monthly, Quarterly, Half
70 years Yes
Yearly, Yearly
Endowment Assurance Without Profit Plan-23
Features:
• Moderate Premiums
• High Liquidity
Page 36 of 88
• Savings Oriented
Endowment assurance is the surest and the safest method of

guaranteed cash provision either at a specified time or at death. It
serves the requirements of the family in various shapes by way of
income at retirement, education of children, or clean capital for
business. Endowment assurance policies are available both on with
profit (Table-03) and without profit (Table-23) either for a specified
number of years or for a specified age of the assured.
Benefits:
Survival benefits:
Death benefits:
Plan Parameters:
* Minimum Maximum
Entry 50 for male
20
Age(Years) 40 for female
Sum Assured
1000 No limit
(Tk.)
Term (Years) 10 50
Policy loan and

Max Maturity
Mode of Payment surrender value
Age
available
Page 37 of 88
Monthly, Quarterly, Half
70 years Yes
Yearly, Yearly
Grameen Jiban Bima With Profit Plan-91
Features:
This is an endowment assurance (with profits) type policy. This plan

Ideal for farmers, workers. Since the farmers have to depend on the
vagaries of the climate while workers, labours are subject to changes
in trade cycles depressions, strikes labour disputes etc. It provides
full life insurance cover for three years when the premium are not
paid (this benefit is available after at least two years premium are
paid). Sum assured is payable on maturity or at earlier death with
acquired bonuses.
Policy under this plan acquires paid-up loan and surrender values
after premium has been paid for two/three consecutive years.
Benefits:
Maturity Benefits: -
Sum Assured + Acquired bonuses.
Death benefits:
Sum Assured + Acquired bonuses.
Plan Parameters:
* Minimum Maximum
Entry Age 20 40
Page 38 of 88
(years)
Sum Assured 1000 20000
(Taka)
Term (Year) 10 25
Mode of Payment Maximum Policy Loan

Maturity Age Available
Yearly, Half-Yearly, Quarterly, 70 Years yes
Monthly
Guaranteed Bonus Endowment Insurance Plan-48
Features:
Under this plan, polices are issued with a guaranteed bonus of Tk. 20
per thousand sum assured. The distribution of profits under with profit
plan depends upon the result of valuation, which may or may not be
declare any divisible surplus. Under this plan the distribution of profits
does not depend upon actuarial valuation but are paid independently
of it. The guaranteed is incorporated in the body of the policy bond
and forms its integral part whatever may be the results of the
valuation life assured under this table is bound to receive the
guaranteed bonus at the rate of Tk. 20 per thousand per annum on
survival and in case of his earlier death.
Page 39 of 88
Suitable For:
Polices under this plan are generally proposed by the person who
after having adequate provision for their dependents through different
types of life insurance desire to have a guaranteed security also for
their peaceful retired life.
Benefits:
Sum Assured + Bonuses @ 20 Tk. per thousand per annum on the

expiry of selected term.
Death Benefits: -
Sum Assured + Bonuses @ 20 Tk. per thousand per annum on the

expiry of the earlier death.
Plan Parameters:
* Minimum Maximum
55 for standard
Entry Age life
20
years 50 for sub
standard life
Sum
1000 No Limit
Assured
Term 15 30
Page 40 of 88
Policy Loan &
Mode of Maximum
surrender value
PaymentBlank Maturity Age
available
Yearly, Half-Yearly,
70 years Yes
Quarterly, Monthly
Individual Pension Policy Plan-12
Features:
People engaged in different occupations desire to have peaceful, un-

agitated and comfortable life at retirement. Pension scheme has been
designed to keep the financial certainty in retired life. Pension
insurance scheme provides life insurance protection to self employed
people, people engaged in state controlled Corporations and private
sectors who desire to have peaceful financial certainty in retired life.
Benefits:
Survival Benefits:
Monthly pension is payable for a guaranteed period of 10 years and

for life thereafter. At the time of retirement if Policyholder desires 50%
of monthly pension may be commuted for an immediate cash
payment.
Death benefits:
If death occurs before retirement/maturity 15 times of one annual

premium or all premiums paid except 1st year premium are
refundable with 7% simple interest per annum which ever is greater.
Plan Parameters:
* Minimum Maximum
Page 41 of 88
Entry Age(Years) 20 50
Monthly Pension 1000 30000 for
(Taka) professional person
50000 for business
man
Term (Years) 10 40
Mode of Maximum Policy loan

Payment Maturity Age available
Yearly, Half Yearly 60 years Yes
Joint Life Endowment Insurance With Profit Plan-08
Features:
Under this plan polices are issued on lives of two persons and
simultaneously cover the risk on the lives of both the persons for the
same sum assured. This plan is most suited to partner in business or
persons have a joint enterprise with mutual interest each other.
Husband and wife can also propose jointly under this table provided
both have independent source of income. The sum assured under
this plan becomes payable either at expiry of specified term or at
earlier death either of the insured persons.
Two separate proposal forms are required to be filled in by each of

the two persons applying for assurance under the joint life scheme.
Both the person shall have to under go the required medical
examination separately.
Paid up and Surrender Value:
Paid up and surrender value are available under this plan.
Page 42 of 88
Benefits:
Sum assured + Accrued Bonuses.
Death benefits:
Sum assured + Accrued Bonuses.
Plan Parameters:
* Minimum Maximum
Entry Age 20 50 for male
(years) 40 for female
(Taka)
Term (Year) 10 35
Mode of Payment Maximum Policy Loan

Maturity Age Available
Yearly, Half-Yearly, Quarterly, 70 Years Yes
Monthly
Marriage Endowment Policy Plan-07
Page 43 of 88
Features:
Polices under this plan meets the requirement of the children at a

particular age of the child. Provision under this scheme either for the
marriage or educational expense in particular or any other
requirement of the policyholder's children. Premium under this plan is
considerable low in view of the objects it serves. Under this plan the
policy matured only at the end of the selected term. Claim under this
scheme becomes payable only to the child nominated to policies at
the event of expiry of the term. In case the policyholder unfortunately
dies earlier future premium ceases. In the event death of the child all
premium can be refunded to the assured less first year’s premium or
policies can be continued for the benefit of the another child.
Benefits:
Maturity Benefits:
Basic Sum assured along with acquired bonuses would be payable to

the selected children surviving till the end of the term.
Death benefits:
If the life assured dies before selected term full sum assured +
bonuses is payable at the end of the selected term of the policy to the
selected child.
Plan Parameters:
* Minimum Maximum
Entry 20 50
Age(Years)
Page 44 of 88
Sum No limit No limit
Assured
(Taka)
Term 5 20
(Years)
Mode of Payment Maximum Maturity Policy loan

Age available
Yearly, Half Yearly, 65 years Yes
Quarterly, Monthly scheme
Money Back Term Insurance Policy Plan-50 (Without Profit)
Features:
This is a comprehensive term insurance plan providing for death

cover during a specified term with a provision for refunding the
premium paid in case of survival at the end of the term. The policy will
not acquire a paid-up value. Surrender value is also available after
payment of 6 years premium.
Benefits:
Refund of the total premium paid (excluding extra premium if any) on

survival at the end of the term.
Death benefits:
Sum assured
Page 45 of 88
Plan Parameters:
* Minimum Maximum
Entry Age (years) 20 45
Sum Assured (Taka) 50000 500000
Term (Year) 10 20
Mode of Payment Maximum Maturity Policy Loan

Age Available
Yearly 60 Years No
Multiple Payment Policy With Profit Plan-06
Features:
Policies under this plan are generally referred as Multiple Payment

Policy. This is also called bi-annual payment policy. Policy under this
plan acquires paid-up value, loan and surrender value after premium
has been paid for two/three consecutive years.
Benefits:
i. 10 years term: - 20% of sum assured on expiry of 4th policy year

and there after bi-annual and at the end of the term 40% of sum
assured along with acquired bonuses.
ii. 15 years term: - 15% of sum assured on expiry of 4th policy year
Page 46 of 88
iii. 20 years term: - 10% of sum assured on expiry of 4th policy year
Death benefits:
In the event of the death of the assured any time before the expiry of
the term full Sum assured+ acquired bonuses.
Plan Parameters:
* Minimum Maximum
Entry 18 50
Age(Years)
Sum 60000 No limit
Assured
(Taka)
Term 10 20
(Years)

Yearly & Half 70 years Yes
Yearly
Progressive Premium Policy With Profit Plan-04
Features:
Same as whole life insurance policies except that an option is

available at the end of 5 years to convert the policy into an
endowment policy where revised premium rate is calculated. No with
profit policy is available. Polices under this table are liked by young
person at the outset of their career. Policies under this table generally
Page 47 of 88
matured at the specified age of assured. If necessary, rates can also
be quoted for a specified number of years on request. But the date of
maturity will in no case exceed 70 years.
Benefits:
Maturity benefits:
Sum assured + Acquired Bonuses.
Death benefits:
Sum assured + Acquired Bonuses.
Plan Parameters:
* Minimum Maximum
Entry
20 50
Age(Years)
Sum Assured
10000 No limit
(Taka)
Term (Years) 15 50
Max Maturity Policy loan and surrender

Mode of Payment
Age value available
Yearly, Half Yearly,
70 years Yes
Quarterly, Monthly.
Page 48 of 88
Single Premium With Profits Plan-17
Features:
Under this plan a single premium is paid against each Tk.1000.00

Sum Assured for the desired term of the policy ranging from 5 years
to 40 years term. The policy matures either at the end of the selected
term or at death if it occurs earlier.
Under this plan there is no doubt that one has to pay much more than
usual Endowment plan, but the advantage is that the very first
payment of premium guarantees the desired security.
Surrender value under this plan can be quoted on request.
Benefits:
Maturity Benefits: -
Death benefits:
Plan Parameters:
* Minimum Maximum
Entry Age 20 50
(years)
(Taka)
Term (Year) 5 40
Page 49 of 88
Mode of Maximum Loan Value
Payment Maturity Age Available
Single Premium 65 Years Yes
Swanirvar Bima (Single Premium Policy) Plan-52
Features:
Under this plan a single premium is paid against each TK. 1000 Sum
Assured for the ten years term. Premium payable once at a time.
Term of the policy is 10 years. The policy matured at the end of the
term or at death if it occurs earlier. In case of death double of the sum
assured is payable. Under this plan no medical examination is
required. Only a prescribe form is to be filled in. Surrender value is
available after three years.
Benefits:
Maturity Benefits:
Sum Assured
Death benefits:
Double Sum Assured
Page 50 of 88
Plan Parameters:
* Minimum Maximum
Entry 20 50
Age(Years)
Sum Assured 1000 300000
(Taka)
Term (Years) 10 (Fixed) 10 (Fixed)

Single Premium Only 60 years No
Term Insurance Without Profit Plan-51
Features:
This is one year term Insurance policy where Sum Assured is payable
on death within the year. No refund of premium is made if the assured
survives the term. The rate of premium under this plan is extremely
low.
If the polices under this plan are required for a longer term they can
be renewed each year 15 days before the date of expiry on the
production of a Declaration of Good Health and on payment of the
required premium .If the Polices desires to be renewed later a full
medical report at proponent’s cost along with the premium will be
required.
Page 51 of 88
Benefits:
No Survival Benefits is payable.
Death benefits:
Full Sum Assured.
Plan Parameters:
* Minimum Maximum
Entry Age 20 50
(years)
(Taka)
Term (Year) 1 Not applicable

Single Premium 50 Not available
Whole Life Assurance With Profits Plan-01
Features:
A whole life policy being economical in rate of premium, provide an

opportunity even to a person of an average means to have a
substantial coverage of life insurance. Policies under this plan are
available on with profit (plan-01) as well as without profit (plan-21)
basis.
Page 52 of 88
Premium under this policy are payable up to the age of 80 or earlier
death. The sum assured (with or without bonuses) is payable on
attaining age 85 or on death if earlier. Polices under this plan acquire
paid-up value after premiums have been paid for 3 consecutive
years. Surrender value and policy loan are available.
Benefits:
On attaining of age 85 payment of full Sum Assured + Acquired

Bonuses (In case of with profit).
Death benefits:
Sum Assured + Acquired Bonuses (In case of with profit).
Plan Parameters:
* Minimum Maximum
50 for male
Entry Age(Years) 20
40 for female
Sum Assured
5000 No limit
(Taka)
Up to age
Term (Years) Up to age 80
80
Mode of Payment Maturity Age Policy loan

available
Yearly and half yearly 85 years Yes
Page 53 of 88
Whole Life Assurance Without Profits Plan-21
Features:
A whole life policy being economical in rate of premium, provide an

opportunity even to a person of an average means to have a
substantial coverage of life insurance. Policies under this plan are
available on with profit (plan-01) as well as without profit (plan-21)
basis.
Premium under this policy are payable up to the age of 80 or earlier

death. The sum assured (with or without bonuses) is payable on
attaining age 85 or on death if earlier. Polices under this plan acquire
paid-up value after premiums have been paid for 3 consecutive
years. Surrender value and policy loan are available.
Benefits:
On attaining of age 85 payment of full Sum Assured + Acquired

Bonuses (In case of with profit).
Death benefits:
Sum Assured + Acquired Bonuses (In case of with profit).
Page 54 of 88
Plan Parameters:
* Minimum Maximum
50 for male
Entry Age(Years) 20
40 for female
Sum Assured
5000 No limit
(Taka)
Up to age
Term (Years) Up to age 80
80
Mode of Payment Maturity Age Policy loan

available
Yearly and half yearly 85 years
Group Insurance
Features:
Group assurance offers the same kind of benefit as individual

assurance. Basically there is a contract, plan or scheme which covers
a group of individuals who are associated together through some
common features such as the employees of a company, a group of
professional people etc.
Two types of group insurance are available.
i. Group Term Insurance

ii. Group Endowment Assurance
Group Term Insurance:-
Page 55 of 88
Group Term Insurance provides for payment of assured money in
case of death of any employee during the term of the policy. There is
no maturity benefit.
Benefits:
Survival Benefits:
No survival benefit is available.
Death benefits:
Sum Assured
Plan Parameters:
* Minimum Maximum
Entry 20 60
Age(Years)
Group (Number) 50 No limit
Sum Assured 10 times of basic 50 times of basic
(Taka) salary salary
Term (Years) 1 5

Yearly 60 years No
Group Endowment Assurance:
Group Endowment Assurance provides for payment of insured money

at the expiry of the policy term or at earlier death.
Three types of Group Endowment Assurance: -
Page 56 of 88
a. Group Endowment Assurance-with profit and also without
profit.
b. Group Variable Endowment Assurance:
i. 25% Survival Benefit and 100% Death Benefit

ii. 50% Survival Benefit and 100% Death Benefit.
c. Group Endowment Assurance with refund of premium:
i. 50% refund of premium
ii. 75% refund of premium
iii. 100% refund of premium.
Benefits:
a. Group Endowment: - Sum Assured +Bonuses (in case of with

profit policy)
b. Group Variable Endowment: -
i. 25% of Sum Assured +Bonuses (in case of with profit

policy)
ii. 50% of Sum Assured +Bonuses (in case of with profit
policy)
c. Group Endowment Assurance with refund of premium
i. 50% refund of premium
ii. 75% refund of premium
iii. 100% refund of premium paid
Page 57 of 88
Death benefits:
Sum assured + Bonuses (in case of with profit policy) for all type of
Policies.
Plan Parameters:
* Minimum Maximum
Entry Age 20 58
(years)
Group (Number) 10 No limit
Sum Assured 10 times of basic 50 times of basic
(Taka) salary salary
Term (Year) 2 40
Mode of Maximum Policy Loan

Payment Maturity Age Available
Yearly 60 Years Yes
5.12. Services : -
5.12.1. Bonus Information
Bonuses per TK. 1000 sum assured
*Year Term Whole Anticipated Endowment Group

life
Page 58 of 88
1993- Whole life & 40.00
1994 Whole life 12.00 14.00 16.00
Limited Pay 20.00 22.00 22.00
Policies 25.00 30.00 25.00
Term up to 15
years
Term over 15
years and up to
20 years
Term over 20
years
1995- Whole life & 45.00
1996 Whole life 12.00 15.00 15.00
Limited Pay 20.00 25.00 25.00
Policies 25.00 35.00 35.00
Term up to 15
years
Term over 15
years and up to
20 years
Term over 20
years
1997- Whole life & 50.00
1998 Whole life 12.00 17.00 17.00
Limited Pay 24.00 30.00 30.00
Policies 30.00 40.00 40.00
Term up to 15
years
Term over 15
years and up to
20 years
Term over 20
years
1999- At Final stage
2000
Page 59 of 88
2001- Under process
2002
5.12.2. Tax Benefits/Rebate
Rate of Income Tax:
The ceiling of minimum tax has been kept TK.1200 and exempted
ceiling of income is TK. 90,000. Five tier tax rates have been kept.
Restructuring of income slabs are mentioned bellow:-
*Income Rates
i. On the first of TK. 90,000 of the total Nil
income
ii. On the next of TK. 1,50,000 of the 10%
total income
iii. On the next of TK. 1,50,000 of the 15%
total income
iv. On the next of TK. 2,50,000 of the 20%
total income
v. On the balance of the total income 25%
Life Insurance premium paid by an individual investment eligible

for tax rebate by the following way:-
Page 60 of 88
Life Insurance premium on assesses’ life or on that of life or husband
or minor child of the assesses’ subject to the conditions that premium
must not exceed 10% of the capital Sum Assured excepting bonuses
or other benefits and that both premium and proceeds of the life
insurance policy or the contract for deferred annuity as the case may
be payable in Bangladesh.
Income Tax rebate for Life Insurance policy of Jiban Bima

Corporation:
1st Example:- In the assessment year 2003-2004 the income of Mr.

“X “ is TK. 2,50,000. He has to pay the income tax as given bellow:-
*Total TK.
Income 2,50,000.00
(-) ExemptedTK. 90,000.00
ceiling
Taxable TK.
Income 1,60,000.00
Tax Calculation:
For 1st TK. 1,50,000.00 incomeTK. 15,000.00

tax is 10%
(+) For next TK. 10,000.00 income TK. 1,500.00
tax is 15%
Net Income tax payable TK. 16,500.00
Page 61 of 88
For TK. 2, 50,000.00 total income he can invest TK. 50,000.00 for life
insurance policy. If he paid TK. 50,000.00 for a life insurance policy of
Sum Assured TK. 10, 00,000.00. Then he has to pay the income tax
as given bellow:-
Total Income TK.

2,50,000.00
(-) ExemptedTK. 90,000.00
ceiling
Taxable TK.
Income 1,60,000.00
For taxable income of TK. 1,60,000.00 Income TK.16,500.00

Tax is
(-) For Life Insurance Premium of TK. 50,000.00 TK. 7,500.00
gets a rebate 15% of total Investment Tax rebate
is
Net payable Income Tax TK. 9,000.00
For investment in Jiban Bima Corporation Life Insurance policy Mr.

“X” has to pay tax TK.9000.00 only instead of TK. 16,500.00
5.13. Future Business Plan : -
5.13.1. Business Target

Business Target (2006-2010)
Page 62 of 88
During the last five years JBC’s growth rate fell down substantially. An
aggressive plan is urgent to keep the organization in profitable track.
To achieve the above objective, JBC has planned to make extensive
future business plan in the following areas stipulating new business
target and increasing number of clients at the proposed growth rate
of11% annually.
First Year Premium Income:
From 1973 to 2002, the First Year Premium growth rate was 12.6%.
JBC plans to increase such premium income from TK. 582.6 million
to TK. 1342.6 million by the year 2010. In 2002, JBC’s First Year
Premium Income was TK. 582.6 million.
Renewal Premium Income:
From 1973 to 2002, the Renewal Premium growth rate was 12.7%.
JBC plans to increase such income from TK. 1124.5 million to TK.
2591.4 million by the year 2010. In 2002, JBC’s Renewal Premium
Income was TK. 1124.5 million.
Group Premium Income:
From 1973 to 2002, the Group Premium growth rate was 12.7%. JBC
plans to increase such income from TK. 91.0 million to TK. 209.71
million by the year 2010. In 2002, JBC’s Group Premium Income was
TK. 91.0 Million.
Life Fund:
From 1973 to 2002, the Life Fund growth rate was 12%. JBC plans to
increase this fund from TK. 5773.5 million to TK. 13245.3 million by
the year 2010. In 2002, JBC’s Life Fund was TK. 5773.5 million.
(Tk.In Million)
Page 63 of 88
Serial Year
Categories
No. 2002 2003 2004 2005 2006 2007 2008 2009 2010
1stYear
1 582.6 646.6 717.8 796.7 884.4 981.7 1089.7 1209.5 1342.6
Premium
Renewal
2 1124.5 1248.2 1385.5 1537.9 1707.1 1894.8 2103.3 2334.6 2591.4
Premium
Group
3 91.0 101.01 112.12 124.45 138.14 153.34 170.21 188.93 209.71
Premium
Total
4 1798.1 1995.8 2215.4 2459.1 2729.6 3029.9 3363.2 3733.1 4143.7
Premium
Investment
5 385.1 427.4 474.5 526.6 584.6 648.9 720.3 799.5 887.5
Income
6 Life fund 5773.5 6379.7 7048.5 7860.4 8725.1 9684.8 10750 11932.7 13245.3
5.13.2. New Schemes

JBC has made an extensive study and reviewed the existing 22
schemes for the greater interest of its policyholders. With the
changing circumstances of global economy, existing schemes need
adjustment, modification, up-gradation to make our schemes
compatible in the market it observed. JBC, therefore, plans to
introduce 8 new schemes by the year 2010, which in addition of
accelerating our business would greatly help poverty reduction and
support economic development of the country.
Year Opening New Schemes

2006- Five schemes are now under Market
2010 Survey
6.13.3. New Investments.
Page 64 of 88
6.13.3.1. Jiban Bima Bank Limited:
JBC has reviewed its existing investment policy following the

changing situation in banking and investment arena. The Insurance
Act of 1938, which binds us to invest 30% of investable fund in
government security, and the rest 70% in approved investment
portfolios like fixed deposits, ICB unit certificate, real estates, shares
and loans to policyholder etc. Recently, the Ministry of Finance and
Bangladesh Bank have issued instructions to the commercial banks
and financial institutions to lower their interest rate in line with
regional and global situation. In view of this, nationalized banks have
already cut their interest rate on deposits, which is now 6.25% and
the private banks also lowered the rates from double digit to a single
digit. Since JBC has no other alternative for investment right now, it
has become absolutely impossible to sustain its management &
administrative cost and ensure interests of policyholders with such a
lower returns.
We, therefore, thought it is better to diversify our investment portfolios

with a view to make the JBC profitable and viable organization. At
present, a total of TK. 2599.5 million has been invested in different
banks and the amount of life fund is TK. 5773.5 million in year 2002.
Since we have well established infrastructural facilities, all over the
country, we have planned to establish a bank named as “ Jiban Bima
Bank Limited” on basis of Public-Private Participation and Foreign
Direct Investment (FDI)-35% shares with JBC & Government, 10%
Sadaran Bima Corporation (SBC), 25% FDI and 30% Private-Shares.
But the proposed Bank be allowed to operate Export Credit
Guarantee Scheme presently operated by the SBC. If SBC is not
willing to participate, JBC shall subscribe 10% shares earmarked for
SBC. The authorized capital of the proposed bank would be TK. 1000
million and paid-up capital would be TK. 200 million.
In addition to performing all commercial business, the proposed bank

will ensure collection of premium from the policyholders, bring
Page 65 of 88
financial discipline inside the organization, secure higher returns of
our investment, create employment opportunity and help revamp
economic development of the country. The proposal of Jiban Bima
Bank Limited has been submitted to the government for
consideration and approval.
5.13.3.2. Jiban Bima Housing Finance & Investment Limited
The state-owned JBC has also planned to establish a subsidiary

company named as Jiban Bima Housing Finance & Investment
Limited, which will also be in joint collaboration with Public-Private-
Foreign Participation-JBC 45%, FDI 25% and Public Shares 30%.
Emerging demands in the real-estate, housing & construction and
land development financing will be the top agenda of our
development. A project proposal has been submitted to the
Government for its consideration & approval. It may be mentioned
here that Insurance Corporation Act 1973, section-17 allowed us to
invest our funds in any business like it as per the board’s decision.
The proposed JBHFL will help JBC to obtain higher returns from its
investments, we believe.
5.13.3.3. JBC Overseas Business
A large number of Bangladeshis (6.5 million) are presently working

abroad particularly in the countries of South East Asia, Middle East,
Europe and the USA. These Bangladeshi are deprived of getting
JBC’s services that covers the risk of their lives and their family
members living in Bangladesh. Such a large number of expatriate
Bangladeshis remained out of service of the Jiban Bima Corporation.
We have, therefore, targeted these potential people and planned to
provide insurance facilities at least 200 thousand people by the year
2010, Some special schemes for such people would be launched that
will not only increase the number of clients, but also will help JBC to
earn valuable foreign exchange every year in the form of premium.
The premium of the policies would be collected in foreign currency
and payment would be settled in local currency in Bangladesh, with
the option of settlement of claims abroad in foreign currency.
Page 66 of 88
We have, therefore, planned to allow overseas agencies in i)
London, ii) New York, iii) Los Angeles iv) Saudi Arabia v) UAE, vi)
Malaysia, vii) South Korea and viii) Italy to provide business during
the period 2004-2010. The overseas agents will be appointed on
commission basis. No establishment cost from JBC will be required.
5.13.3.4. Jiban Bima Foundation:
JBC has planned to setup a welfare foundation to ensure welfare of

its 20,000 members of staff and their dependents and ensure their
participation in different development programs of the government.
Initial fund of the proposed Jiban Bima Foundation will be TK. 10

million.
5.13.3.5. Vision 2020
Having the largest network all over the country, and having a high
operational cost, the JBC is facing a stiff competition in the insurance
market from the private sector companies. Options for fresh
investment in the money and capital market is facing a set back
mainly due to interest rate cut in recent days. Many private sector
insurance companies are also offering newer and competitive
products in the market. To face this competition, the JBC has drawn a
six-year business plan (from 2004 to 2010) with a view to completely
revamping the business strategy of the corporation as well as to
expand the corporation's clientele base in both the domestic and
overseas market. In line with this business plan, the JBC would soon
launch Jiban Bima Bank Ltd., Jiban Bima Housing Finance and
Investment Limited as well as Jiban Bima Foundation with equity
share from the public, private sector participation and Foreign Direct
Investment (FDI). The corporation will also explore newer avenues for
investment in the insurance products of JBC by the approximately 6.5
million Bangladeshis living abroad. To this end, the Corporation is
going to offer a number of newer products and services that will be
more attractive to this potential clientele group.
Page 67 of 88
5.14. Controlling Process : -
They follow a chart for controlling their agents. As agents play a vital
role for JBC’s income. The Chart is as follows –-
Development
Manager
Development
Officer
Agent
Besides, all types of servicing jobs are dealt by the regional offices.
Technical, underwriting, and claim jobs are dealt by the Technical
division. Business or premium procurements jobs are dealt by the
development division.
5.15. Employee Motivation : -
Page 68 of 88
Jiban Bima Corporation motivates its employees in various ways.
Some of those are given below –-
5.15.1. Promotion : -
JBC gives promotion to the qualified and well-performed employees.
5.15.2. Incentives : -
Employees are provided incentives with basic salary depending on

JBC’s business profit.
5.15.3. Training : -
Employees get training when the authority feel that training is

needed.
5.15.4. Working Environment : -
JBC’s working environment is very much positive and friendly.
5.15.5. Performance Reward : -
Employees are rewarded for their extra-ordinary performance.
5.17. Some Rules and Regulation of JBC : -
Contract of Insurance:
An essential feature of an insurance contract is the principle of utmost

good faith. Utmost good faith refers to the duty resting upon the
Page 69 of 88
insured, the duty to disclose all material facts. In all the contracts of
insurance the proposer is bound to make disclosure of all material
facts and not merely those, which he thinks material.
Misrepresentation, non-discloser or fraud in any document leading to

the acceptance of the risk automatically discharges the Corporation
from all liability under the contract. It is therefore in the interest of
would be policyholder to disclose all material facts to the Corporation
to avoid any complication when the claim arises.
Age of Policyholder:
Age is the main factor for premium calculation of a scheme/policy of

Life Insurance. The following documents are accepted for proving the
age of a Policyholder:-
i. Birth Certificate from Union Council/ City Corporation or Local

Government Body.
ii. S.S.C/ Equivalent Examination Certificate.
iii. Certified Service Register in case of Government Employees.
iv. Voter List duly attested by Election Officer.
v. Passport issued by the Passport Authority of Bangladesh.
vi. Age Declaration /Affidavit Certificate.
Mode of Payment:
• Mode of payment of Premiums can be in Yearly/Half-

yearly/Quarterly and Monthly instalments.
• In any of the Regional/ Zonal/ Sales Office of JBC and some
selected Banks where the Policyholders can pay his premium.
Grace Period:
Page 70 of 88
• Due Date of the premium has been fixed at the time of opening a
policy. Total 30 days for yearly/half-yearly/quarterly installment and 15
days for monthly installment will be allowed as a grace period from
the Due Date.
• If the grace period expires on a Friday or on a public holiday, the

premium may be paid on the following working day to keep
the policy in force.
Revival of Policies:
A lapse or paid up policy may be revived-
i. Within six months by paying the arrear premiums with such rate
of interest as may be determined by the Corporation together
with a satisfactory evidence of good health.
ii. Within five years by paying the arrear premiums with such rate of
interest as may be determined by the Corporation together with
prescribed satisfactory evidence of assurability free of cost to the
Corporation.
iii. Special revival scheme: - If a policy is discontinued before
acquiring the surrender value and the policyholder is unable to pay
the arrear of premiums together with interest, subject to satisfactory
evidence of assurability being furnished to the Corporation at the
policyholder’s cost, the policy may be revived by advancing the
commencement/maturity dates of the policy and by charging required
special revival fee and premium for enhanced age of the assured.
This benefit is available only once during the whole policy term.
Change of address of policy:
• For better service and settlement of claims the correct address

is essential for a Policy. The policyholder at any time can change his/
Page 71 of 88
her address with a writing application through the respective Regional
Office.
Transfer of Policy Records:
• Policyholder can also transfer his/her Policy records from one

Regional Office to another for servicing by submitting a writing
application to the Concerned Regional Office.
Loss of Policy Document:
• The Policy document will be required by the Corporation before

making any payment. If the Policy document is lost or destroyed
intimation should be sent to the concerned Regional Office of the
Corporation. A duplicate Policy document for record purposes will be
supplied on payment of prescribed fees. A duly stamped new policy
document will be issued at policyholder's cost after observing
Corporation' prescribed rules and legal formalities.
Loans:
• A loan up to 90% of the surrender value may be taken by the

policyholder as such terms and rate of interest as the Corporation
may from time to time. The rate of interest charged at present is
11.5% per annum.
Nomination:
• Nomination should be made at the time of taking Insurance

Policy for easy settlements of claim by the death of policyholder. A
nomination may be changed or cancelled by the life policyholder
whenever he likes without the consent of the Nominee.
Page 72 of 88
Assignment:
• Assignment means transfer of rights and interest of the policy

and that can be either conditionalor absolute. When a Policyholder
assigns the policy, nomination automatically stands cancelled. Hence,
when such a policy is reassigned, the policyholder will have to make
a fresh nomination to avoid delay in settlement of claim.
Survival Benefit/Maturity Claims:
JBC settles survival benefit/maturity claims on or before the due date.
Death Claims:
If the Assured dies during the term of the policy, death claim arises.
For settlement of death claim the death news of the policyholder
should be informed in writing to the regional Office with the following
particulars:
i. The Number/s of the policy/ies
ii. The name of the policyholder
iii. Death Certificate issued by Doctor
iv. The date of death.
v. The cause of death and
vi. Claimant’s relationship with the Policyholder
On receipt of death news of the Policyholder the Regional Office will

send the necessary claim forms along with instructions to be followed
by the claimant.
Page 73 of 88
If death claim arisen within two years from the date of
commencement of the policy proper investigation is made before
settlement.
5.17. Contact Information : -
5.17.1. Office Address
Head Office
JIBAN BIMA CORPORATION

Head Office
24, Motijheel,Commercial Area
Dhaka, Bangladesh
Phone:-(88)-(02)-9551414,
9559041-2
Regional Office
Serial Office Address

No.
Page 74 of 88
1. JIBAN BIMA CORPORATION
Dhaka Regional office
7, Bangabandhu Avenue
Dhaka, Bangladesh
Phone:-(88)-(02)-9564458,
9555735
Chittagong Regional office
1053, Sheik Mujib Road
Agrabad, Chittagong
Bangladesh
Phone:-(88)-(031)-721095
Khulna Regional office
KDA Avenue
Shib Bari Moar, Khulna
Bangladesh
Phone:-(88)-(041)-722957
Rajshahi Regional office
Kazi Hata, Rajshahi
Bangladesh
Phone:-(88)-(0721)-772244
Barisal Regional office
122-123 Sajarini Super Market
East Bogra Road, Barishal
Bangladesh
Phone:-(88)-(0431)-52621
Sylhet Regional office
Airport Road, Amberkhana, Sylhet
Bangladesh
Phone:-(88)-(0821)-716545
Page 75 of 88
5.17.2. E-mail Address
E-mail Address of Head Office
Serial Name of the E-mail Address

No. Dividions
Managing Director’s
1. mds@jbcbd.com
Secretariat
2. Administration Division adm@jbcbd.com
Establishment
3. est@jbcbd.com
Department
Public Relation &
4. prd@jbcbd.com
Protocol Department
5. Development Division dev@jbcbd.com
6. Computer Division com@jbcbd.com
Accounts and Finance
7. afd@jbcbd.com
Division
Group Insurance
8. gid@jbcbd.com
Division
Technical Affairs
9. tad@jbcbd.com
Division
Engineering & Estate
10. eed@jbcbd.com
Division
Internal Audit and
11. aid@jbcbd.com
Inspection Division
12. Law Department law@jbcbd.com
E-mail Address of Regional Offices:
Page 76 of 88
Regional Office E-mail Address
Dhaka Regional Office dro@jbcbd.com
Rajshahi Regional Office rro@jbcbd.com
Khulna Regional Office kro@jbcbd.com
Barisal Regional Office bro@jbcbd.com
Chittagong Regional Office cro@jbcbd.com
Sylhet Regional Office sro@jbcbd.com
6. SWOT ANALYSIS : -
SWOT analysis is a careful evaluation of an organization’s internal
strengths and weaknesses; as well as its environmental opportunities
and threats. It is a great tool for analyzing the macro and micro
perspective for any company. It helps a company to understand itself,
which later breed it to take effective decision. A possible SWOT
analysis for the Jiban Bima Corporation is as follows –-
6.1. Strengths :-
The possible strengths of JBC are given below –-
6.1.1. Government Organization : -
The Jiban Bima Corporation is only one government organization for

life insurance. For they can enjoy more facilities.
6.1.2. Popular : -
Page 77 of 88
Jiban Bima Corporation is one of the most popular life insurance
company on Bangladesh.
6.1.3. Faith : -
It is the only one government company and most popular; as a result

people have more faith and trust for the Jiban Bima Corporation.
6.1.4. Enough Field Worker : -
The JBC has enough field worker. There are 30,000 employees for
field worker among them 22,000 are agents and 8,000 are
development officer and development manager.
6.2. Weaknesses : -
6.2.1. Lack of Training : -
The filed workers of the JBC are not properly trained up.
6.2.2. Less Income :-
Their income is less than their target for improper management and
unskilled employees.
6.2.3. Vacant Post : -
There are 2074 posts in office administration but 1600 posts are
active. So 474 posts are yet vacant.
6.3. Opportunities : -
6.3.1. Business Expansion : -
Page 78 of 88
If they can give training their employees then they can expand there
business more easily and quickly than any other insurance company.
6.3.2. Online Premium Payment System : -
The JBC is updating their websites. So the insured can enjoy online
premium payment system.
6.3.2. Online Policy Status System : -
The JBC is updating their websites. So the insured can observe their
policy status by browsing the website of JBC.
6.4. Threats : -
6.4.1. Huge Competition : -
There is huge competition among the life insurance companies.

There are a lot of private, foreign, and multinational life insurance
companies in Bangladesh. The overall system of JBC is still
backdated than those companies.
6.4.2. Limitation as a Government Organization :-
The JBC has to face some barriers and limitations as it is a

government organization.
6.4.3. Rules and Regulation : -
There is no strict rules and regulation for the claim. For this people
has less trust for life insurance than the banks.
7. STRATEGIC ANALYSIS : -
Page 79 of 88
7.1. Current Position in Market :-
Every years JBC makes a ranking depending on the premium

income. The ranking of 2006 is given in following –-
ALICO
National Life Insurance
Delta Life Insurance
Jiban Bima Corporation
Page 80 of 88
7.2. Position in BCG Matrix :-
Growth-share matrix is a portfolio-planning method that evaluates a

company’s in terms of their market rate and relative market share.
Using the Boston Consulting Group (BCG) approach, a company
classifies all its SBUs according to the growth-share matrix shown in
the following figure. On the vertical axis, market growth rate provides
a measure of market attractiveness. On the horizontal axis, relative
market share serves as a measure of company strength in the
market.
Relative Market Share

High Low
?
High
Question Marks
Star  High growth, low share
 Build into Stars or phase
 High growth & Share
out
Market Growth Rate
 Profit potential
 Require cash to hold
 May need heavy
market share.
investment to grow.
Page 81 of 88
Low
Cash Cows
Dogs
 Low growth, high share
 Low growth & share
 Established, successful
 Low profit potential.
SBU’S
 Produce cash.
By observing the company and taking interview of the employees we

can say that the Jiban Bima Corporation is the ‘Cash Cow’ type of
organization as its relative market share is high but the growth rate of
market share is low.
7.3. Position in Product Life Cycle (PLC) :-
Products, like people, pass through several stages between birth and
death. These are called collectively the product life cycle (PLC), the
succession of phases including the introduction, growth, maturity, and
decline. The characteristics of these stages are given below –-
Introduction : -
 Firm attempt to build demand for its new offering.

 Promotional campaigns concentrate on features, uses, and
benefits.
 Financial losses are common due to low initial sales and
heavy promotional costs.
 Little competition.
 Frequent product modification.
Page 82 of 88
 Heavy promotion.
 High production and marketing costs.
 Low sales volume.
 Small or negative profits.
 Attempt to gain first-mover advantage.
 Looks to gain industry leadership.
Growth :-
 Sales climb quickly.

 Firm usually begins to realize profits due to higher sales
volume.
 Marketing efforts continue to focus on establishing the product
in the market and building brand awareness.
 Later in the growth stage, the strategy shifts to building loyalty.
 Additional spending on product adaptation, promotion and
distribution, along with lower price may be necessary.
 Many competitors enter market.
 Large companies may acquire pioneer firms.
 Promotion emphasizes aggressive brand ads and the
differences among brands.
 Adequate distribution is a major key to success.
 Processes normally fall at the end of growth phase.
 Priority is increasing / retaining market share and enhancing
profits.
Maturity : -
 Industry sales continue to grow, but eventually reach a

plateau.
 Companies emphasizes market segmentation –- often
resulting in an oversupply of the product.
 Competition intensifies, and profits begin to decline.
 Some firms reduce prices and / or spend heavily on
promotion.
Page 83 of 88
 Saturated markets.
 Product lone extension through product variation.
 Global introduction of production.
 Brand loyalty key to survival.
 Battles for market share.
 Weaker rivals drop out.
 Low cost critical as new competitors appear
 Promotion focuses on reminder.
 Profits begin to decline.
Decline : -
 Innovations or shifts in consumer preferences cause an

absolute decline in industry sales.
 Industry as a whole does not generate profits, though some
firms can prosper.
 Prices tend to hold steady if a loyal market segment continues
to buy the product.
 If the firm in selling to customer who are loyal, they can skip
most of the usual advertising.
 Trade allowance eliminated.
 Most advertising and sales promotions eliminated.
 Substitute products accelerate decline.
 Fierce price competition.
 Product design is standardized.
 Little promotional activity.
 Replacement parts may generate profits.
Evaluating all of the above characteristics and observing the

company we cab say that the company is in the ‘Maturity’ stage.
7.4. Profit (2005) and Life Fund : -
Income Taka (Lakh) Taka (Lakh)
Page 84 of 88
Premium income 61.89
Renewal income 128.44
Group income 13.32
Investment Income 62.25
Total Income -------------------- 265.90
Expenses
Claim 110.37
Management expenses 100.42
Total Expenses -------------------- (210.79)
Surplus -------------------- 55.11
Life fund of the JBC is Tk. 756.37 lakh.
8. CONCLUSION : -
After observing the insurance company we see that the company is
only one government insurance company in Bangladesh, but there
are some lacking, there are some vacant post and their employees
are not enough trained and they are not yet coping up with modern
technology. As they are the only one government insurance company
in Bangladesh, so the people trust the company most. Now they have
a plan to start online premium collection system and online policy
status viewing system. They are trying to increase their market share.
This company invests in various sectors in our country and creates
great positive impacts on our economy.
Page 85 of 88
Page 86 of 88
9. BIBLIOGRAPHY : -
9.1. www.jbc.gov.bd
9.2. Interview of Mr. Md. Aftab Uddin Chowdhury, Manager, Jiban
Bima Comporation.
9.3. Elements of Insurance, 2001-02 edition, CII Tuition Sevvice.
9.4 Insurance – Principles & Insurance, 9th Edition, M.N. Mishra.
9.5 Elements of Insurance, Bangladesh Insurance Academy, Azizul
Huq Chaudhuri.
Page 87 of 88
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Report on

Chowdhury Shariar Khan

Stamford University, Siddeswari Campus,

Chowdhury Shriar Khan

Subject: Submitting the report on Jiban Bima

1. Abu Nawsher MD. Fahad ID # 02909064

Special thanks go to those people who had provided information

Special thanks go to all our team members for being cooperative,

During this project we faced some sorts of problems. The main

No. Title Page

Jatiya Bima Corporation – Corporate Head Office,

Teesta Bima Corporation – General Insurance,

Karnaphuli Bima Corporation – General Insurance,

Rupsa Jiban Bima Cotpotation – Life Insurance,

Surma Jibon Bima Corpotation – Life Insurance.

In 1973 the general insurance companies had merged as Sadharan

The Jiban Bima Corporation (JBC) is the lone state-owned life

Mr. Rafiqul Islam Chairman

Mr. Sirajul uslam

Sayed Ataur Rahman

Mr. Nurunnabi Talukder

Dr. Md. Shohrab Uddin

Objectives are specific short term target. To accomplish the mission

Provide life insurance benefit to the people at a

Mobilize savings through various schemes and create

Offer products for maximum returns at minimum cost.

Develop suitable schemes to meet the need of all classes

5.3. Organizational Chart : -

D.G.M. Junior Officer

A.G.M. Senior Assistant

Manager Junior Assistant

Deputy Manager 4th Class Peon

The Head Office of Jiban Bima Corporation (JBC) is located at 24,

Accounts and Finance

6 Technical Affairs Division

Assets and Engineering

5.5. Human Resources : -

There are three categories of Employees in Jiban Bima Corporation.

i. Total approved manpower is 2073 as per TOE of 1984.

(b) Development Managers (DM) and Development Officers (DO):

i. Existing number of Development Managers and Development

(c) Life Insurance Agents:

Total number of Agents are 45,000 as on 30.06.2003.

Main Features of Service Regulations of Development

► Performance Standard for a Development Manager:

The performance standard for a Development Manager (DM) of any

Annual First Year Premium Income

Development Manager-I TK.6,35,000 TK.7,25,000 TK.8,10,000

Development Manager-II TK.4,75,000 TK.5,50,000 TK. 6,30,000

Development Manager-III TK.3,50.000 TK.4,00,000 TK.4,50,000

► Performance Standard for a Development Officer:

Annual First Year Premium Income

► Limitation of Number of Development Officers:

The number of Development Officers directly working under any

► Production Bonus of DM & DO:

The production bonus shall be payable after confirmation of 65%

5.6. Information Technology : -