Chapter : 1

Over View of Rupali Insurance Company Limited

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Rupali Life Insurance Company Limited (RLIC) is one of the leading Life Insurance
Companies in Bangladesh for last years. We have a very dignified management with
magnificent professional Identity, illustrious educational background and honesty. The
Company transact a wide range of Life Insurance business in Bangladesh and has gradually
developed goodwill and expertise in the field with sound and stable financial position. Rupali
Life Insurance Company`s primary method of distribution around the country is the agency
network. RLIC's agency offices, servicing centers and affiliates market with a broad range of
life insurance product through a network of some agents & development officers
countrywide. We emphasize professional skill development through continuous education
and field training. We are proud of our transparent and accountable services being rendered
to our valued customers at their utmost satisfaction. Our quality products have already drew
the attraction of general mass. We are relentlessly working towards our desired goal.

WHO WE ARE

Sponsored by a group of visionary entrepreneurs, known for its superior service quality,
Brand Image, Strong Corporate Governance & Corporate Culture committed for excellence,
Rupali Insurance Company Limited as a Public Limited Company under the Companies Act,
1913 and a first generation 8. top-tier Non-life Insurance Company in Bangladesh came into
existence in May, 1988 and started it’s Commercial operations on 25 June, 1988.

CREDIT RATING

For over two and half decades. Rupoli Insurance Company Limited has been holding the
strong position in terms of premium collection. CRISL, the Credit Rating Agency in
Bangladesh reaffirmed the claim paying ability (CPA) rating of Rupoli Insurance Company
Limited on September 30, 2015 as ‘AA’ based on its premium collection, core services,
financial ability 8- expeditious settlement of claims.
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CAPITAL

Rupali Insurance Company Limited has a strong capital base 8. capital adequacy maintaining
well position in the market. It started its business with a paid up capital of Th. 30 million
against an authorized capital ol Tk. 200 million being sponsored by a group of renowned
business personalities & reputed industrialist of the country having involvement in diversified
business. The Company went into initial public offering in 1995.

The paid up capital of the company has been raised to 11:. 602 million as on December 31,
2015 after issuance of Rights shares in the year 2012 and adiustment of stock dividends
Including @ 5% declared in the year 2014. RICL shares are being traded as ‘A” category
issue at both the bourses of the country.

NETWORK

Rupali Insurance Company Limited with a network of 48 branches covering strategic

financial centers of Dhaka, Chittagong 8. some important district town has been providing
whole hearted services to the doorsteps of the clients. it has active presence in capital market.
The company is always eagerly ready to fulfill the needs of all its clients with high
profitability & balanced growth. Rupali Insurance Company Limited has earned excellent
market reputation and absolute confidence of its valued clients.

BOARD OF DIRECTORS

The Board of Rupali Insurance Company Limited has been constituted with 20 Directors as
per section 76 (l) of Insurance Act 2010 and notification of Bangladesh Securities and
Exchange Commission. The Board of RICL is as follows:
11 Sponsor Directors,
05 Public Share Holder Directors and
04 Independent Directors.

The Board is chaired by Mr. Mostafa Golam Quddus, an eminent business person & well
reputed industrialist & Ex-President of Bangladesh Garments Manufactures and Exporters
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Association (BGMEA) having diversified business exposures.

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BUSINESS STRATEGY

The company is focused on few strategic issues encompassing change management in the
short to long period through the implementation of various policies. processes and activities
to ensure continuous. sustainable and qualitative growth, with the sole objectives of
Institution Building. An effective cluster management program has been implemented.
Branch management is now being continually exposed to mature thoughts and ideas through
mentors resulting in qualitative improvement of their business and operational activities.

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 Chapter: 2

Description of Policy

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 1. PROPERTY INSURANCES
 Fire Insurance ( Including Allied Perils)
 Property Damage All Risks
 Industrial All Risks (IAR) including Business Interruption.
 Comprehensive Machinery Insurance.

Fire Insurance

All policies issued under the heading of Fire Insurance primarily aim at providing protection
against financial losses arising out of the operation of fire or certain other specified perils.
The subject matters of insurance are usually:

 Building, Furniture,
 Fixture and Fittings,
 Plant and Machinery,
 Goods and Merchandise,
 Stocks of all kinds.

The policies provide cover in respect of material loss or damage. However, policies are
issued in the fire department in respect of consequential losses or loss of profits arising out of
material loss. These policies are known as consequential loss insurance or loss of profit
insurance. Thus the scope of fire insurance may be considered under two broad headings viz.

i) Material loss insurance and

ii) Consequential loss insurance.

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 2. MARINE INSURANCES
 Marine Cargo,
 Marine Hull and
 Builders Risks Insurances.

Classification of Insurance business done by the Rupali Insurance Company Limited can be
made into two parts viz. Marine

Marine Insurance

The policies primarily aim at providing protection in respect of loss, damage or destruction to
the subject matter of insurance i.e. Hull, Cargo and freight caused by perils of the seas or
maritime perils like fire, theft, jettison, collision, contact, heavy weather, stranding/
foundering sinking, war perils and other perils.

I. Hull

This refers to the ship, that is to say, hull and machinery of the vessel. The ship is always
at the risk of the perils of the seas and, therefore, the ship owner can insure it against
probable loss as such.

II. Cargo

This refers to goods or merchandise that are being carried from one place to another or are
being imported or exported. Such goods or merchandise may be lost, damaged or destroyed
by perils of the seas whilst in course of transit and therefore, the owner of goods can always
insure against the probable losses.

III. Freight

This is the consideration payable to the ship owner in respect of carriage of goods by owner’s
ship. Some times the freight is prepaid when it is at the risk of the cargo owner and
sometimes the freight is after-paid when it is at the risk of ship owner. Therefore, depending
on circumstances either the cargo owner or the ship owner will stand to lose the freight if the
goods can not reach destination safe and sound because of the operation of maritime perils.
Insurance can be taken by party having insurable interest i.e. by the party at whose risk it
would be at the material time.
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 3. MOTOR INSURANCES

 Motor Insurances for Commercial use.

 Motor Insurances for Private use

Motor Insurance:

Different types or policies may be issued for different types of motor vehicles. Motor
vehicles are usually classified in the following manner:

Private Cars, Commercial Vehicles, Agricultural Vehicles, Motor traders’ vehicles

Policies issued are usually of the following types irrespective of the class of vehicle:

Comprehensive with Act Liabilities Policy:

This policy provides protection in respect of

I. Own damage or loss of the Vehicle.

II. Liability of the insured in respect of death or bodily injury to the third party and
damage caused to the property of third party arising out of the use of motor vehicle on
the road.
III. Act liability only policy legal liability of the insured in respect of death and bodily
injury to third party arising out of the motor vehicles use on a public road.
IV. Third party only policy

This policy provides cover only in respect of the legal liability of the insured arising out of
the death and bodily injury to third party and damage to the property of third party in
connection with the use of motor vehicle.

V. Act Liability only Policy

This policy provides cover only in respect of the legal liability of the insured arising out of
the death and bodily injury to third party in connection with the use of the motor vehicle.
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 4. ENGINEERING INSURANCES

 Machinery Insurance ( Machinery Breakdown)

 Deterioration of Stocks (DOS)
 Boiler and Pressure Vessel (BPV)
 Electronic Equipment Insurance (EEI)
 Erection All Risks (EAR)
 Contractor’s All Risk (CAR)
 Work Plant (WP)
 Oil & Gas Well Drilling Equipment Package (OGD)
 Contractors Plant & Machinery (CPM)

Rupali Insurance have not started Engineering Insurance Policy yet. But the company will
start the activities of such kind of policies

5. MISCELLANEOUS INSURANCES

It may be pointed out that any policy that does not appropriately come under marine, Fire,
and Motor shall come under this head. Therefore, the scope of this branch is indeed very wide
and numbers of various types of policies are issued in this head. However, only those policies
which fall within the scope of property insurance will be discussed here.

 Burglary
 Cash in Safe, Cash in Transit, Cash on Counter.
 Cash in Premises.
 Fidelity Guarantee.
 All Risks
 Product Liability
 Public Liability
 Workmen’s Compensation.
 Employer’s Liability
 Marine Terminal Operators Liability (MTOL)
 Comprehensive General Liability
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 Hole in One (Golf) Insurance I Event Cover

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  Hotel Owner’s All Risks (HOAR)
 Personal Accident
 Personal Accident (Air Travel)
 Health Insurance
 Overseas Mediclaim
 Business and Holiday (B&H)
 Corporate Frequent Travels (CFT)
 Employment and Study (E&S)

Thus we may say that the field of the Miscellaneous Insurance is being expanded and number
of types is being increased day by day comprehensively. The reasons behind this are the
extension of the field of insurance business in modern age and the increasing demand for it.
Therefore, the speed and the nature of insurance business are being multiplied rapidly every
day.

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 Chapter : 03
Theoretical Aspects

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  How to sell policies

PRODUCTS OFFERED BY RUPALI LIFE INSURANCE COMPANY

Auto Insurance products Coverage

Cover ages are simply the kinds of auto insurance coverage that you have on your vehicle.
Each type of auto insurance coverage will protect you in the case of a certain type of claim
against you.

– Auto Insurance Products

1. Auto Insurance – Bodily Injury Liability

This auto insurance coverage protects you in case of an accident involving injuries to others.
The auto insurance coverage will extend to you or family members named on the policy. This
auto insurance coverage will also cover those same people when driving someone else’s car
(as long as it is with permission).

You’ve had an accident, it’s your fault and someone got hurt.

State required minimum levels of auto insurance products usually focus exclusively on bodily
injury liability coverage. This is because they want to ensure that an innocent bystander who
is hurt by you while driving will receive compensation. With this in mind, you’ll generally
want more than the required minimum auto insurance coverage – particularly if you have
personal assets you want to protect.

In most cases (unless you are very wealthy) you shouldn’t expect a claim or lawsuit against
you for more than your auto insurance coverage unless the injuries sustained were very
severe. But you have to be aware that it could happen and juries are quick to apply punitive
settlements where injuries are severe. Therefore, buy a reasonable amount of auto liability
insurance; keeping in mind your own circumstances as well as reasonable medical costs for
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an injury so that you are appropriately insured.

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 – Property Damage Liability

This auto insurance products property liability coverage is for damage to other people’s
property caused by you (or your vehicle when someone else is driving with your permission).

In the vast majority of cases this damage will be to another car. However, this auto insurance
property liability coverage will also pay for damage to public property (lamp posts, telephone
poles) or other personal property like fences, buildings or other structures.

Keep a reasonable amount of auto insurance property liability coverage without over-doing it.
You can make some calculations to determine what auto insurance you are comfortable
carrying. What is the cost of a current ‘high-end’ car? You might consider enough auto
coverage to be able to pay for repairs to an SUV, for instance. But also consider your own
driving record. If you’ve been driving for 25 years and you’ve never had an accident you
might be comfortable with a lower amount of auto insurance property liability coverage.

And keep in mind the cost. You are always balancing what you have to pay now in
consideration of what you have in damages and/or claims if you have an accident. Remember
that the auto insurance company is also playing those odds. They operate so that they end up
with a profit regardless of the number of claims.

• Business Insurance

If you have your own business, you should be thinking about business insurance. It’s not just
for a big business – it can be for your home business.

With business insurance, your concerns are really three-fold:

• Protect your business assets against damage or theft.

• Protect yourself against liability claims from your clientele.

• Protect yourself from employees (if you have any) who may have a legitimate claim for at
work injury against you.

Let’s start first with the home business scenario. With a home business, one of the biggest
issues is to protect your home business equipment. Often, this will mean insurance on your
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technology (computers or other equipment) and business assets (like your fax machine). If
you run your business from home, you may think these items are covered. However, a
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standard home insurance policy will not always give you enough protection for expensive
assets like computer equipment or specialized machinery.

The answer can be a homeowner’s endorsement for your equipment. This allows you to
simply add to your existing homeowner’s policy, rather than having to negotiate a completely
new policy specifically for your business. Be sure to check the details if you take this
approach. You’ll want to be sure that your business is covered properly, even if you are
taking advantage of your homeowner’s policy.

The biggest challenge is if you also require liability protection for your home business. Most
homeowner policy endorsements to cover your equipment will not give you liability
insurance protection. If you are providing a service to clients, liability insurance can be
essential. A client could sue you if a project goes wrong. If you are selling a product, a client
could sue for damage caused by the product. Liability insurance will protect your personal
assets in both these cases.

 How to Manage the Risk

Property and casualty insurers face many types of risks, known as exposures. Exposures exist
for all types of insurance that is provided by a specific type of insurance company. The most
common types of risks include paying claims for automobile accidents and storm damage to a
dwelling or property. Insurance companies can manage the risks that are insured by excluding
certain types of coverage from a policy.

Rupali Insurance Company manage their risk in given below:

 Claims

Insurance companies' primary objective is to pay claims and to earn a profit. This can be
accomplished by accepting only certain types of business that have a low-to-medium chance
of experiencing a loss that will result in a claim. The most common types of policies property
and casualty insurers issue are automobile and homeowners policies. Insurance companies
will pay for valid claims that have not been excluded on the policy.
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  Peril

Insurance companies that provide policy coverage for an individual's automobile, home, life
or health insure against losses that are known as perils. A peril is considered an event or
action that has the potential to cause loss. Perils exist for all types of policies. Perils for an
automobile policy include theft and vandalism. Homeowners policies provide insurance
against perils such as fire, wind or storms. Health insurance provides protection from health-
related perils such as a heart attack.

 Hazard

Insurance companies are also concerned with hazards that exist which can increase the
chance of a loss occurring or cause more damage than expected. Insurance companies take
hazards into consideration when determining cost and eligibility for a policy. Hazards can
include the type of wiring used in a house when determining risk of loss due to fire. Smoking
is also a hazard when determining losses for a health insurance or life insurance policy.

 Distribution of Loss

Insurance companies that calculate the amount and type of risk to insure must understand the
distribution of possible losses. The quantity of losses within a specific period is known as the
frequency of loss. In addition to loss frequency, insurance companies are also concerned with
the severity of losses. Loss severity is typically the amount that an insurer pays out for a
benefit or a claim.

 Exclusions

Insurance companies have various methods to balance or manage their amount of risk while
providing insurance coverage. The most common way insurance companies manage risk is to
exclude specific types of coverage from a policy. Exclusions are made for risks that an
insurance company does not want to cover. These can include heath conditions or actions of
an insured, such as negligence.
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 Chapter : 04

Performance Analysis

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4.1 Gross Premium

The gross profit of 5 years are given bellow:

1000

900

800

700

600

500
Million
400

300

200

100

0
2017 2016 2015 2014 2013

During the period under review the company procure premium amounting to Tk.862 million
against Tk.846 million in 2016. Out of this Tk. 813 million come from private sector against
Tk.804 million in 2016 and the balance of Tk. 49 million represents our shore of public
sector business received from Sodharan Biman Corporation. After ceding Tk. 348 million as
Re-Insurance premium .The Gross Premium Income of the Company has been increased by
Tk.16 million compared to the preceding year .

The profit Tk.822 million in 2015.Out of this Tk.804 million came from private sector
against Tk.784 million in 2015 and the balance of Tk.42 million represents our share of
public sector business received from Sadharan Bima Corporation. After ceding Tk. 347
million as Re-Insurance .he Gross premium income of the Company has been increased by
Tk.24 million compared to the preceding year .
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The profitTk.745 million in 2014. Out of this Tk.784 million come from private sector
against Tk.708 million in 2014 and the balance of Tk. 38 million received from Sadharan
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Bima Corporation. After ceding Tk.323 million as Re-Insurance premium the net premium
income for the year amounted to Tk.498 million against Tk.441 million in 2014, represents
insurance of Tk.57 million. The gross premium income of the company has been increased by
Tk.77 million compared to the preceding year .

The profit Tk.745 million against Tk.683 million in 2013. Out of this Tk.708 million came
from Private Sector against Tk.641 million in 2013 and the balance of Tk.37 million
represents our share of public sector business received from Sadharan Bima Corporation.
After ceding Tk.304 million as Re-Insurance premium .The gross premium Income of the
company has been increased by Tk.62 million compared to the preceding year complying the
Rules and Regulations imposed by IDRA time to time. The net premium income after ceding
to Re-Insurer has also been increased.

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4.2 Number of Branches

We have a well organized network of 46 Branches covering all major areas of Bangladesh. All the
Branches are headed by well qualified officers with good academic background (CA/MBA/Masters)
who with their proven back ground, pleasant personality and persuasive manner, are able to meet the
insurance need of the clients from any part of the country. The Branches are shown as below:

Dhaka Division
1. Principal Branch, Dhaka
2. Dilkusha Branch, Dhaka
3. Motijheel Adamjee Court Branch, Dhaka
4. Motijheel C/A Branch, Dhaka
5. Moulvi Bazar Branch, Dhaka.
6. Kawran Bazar Branch, Dhaka
7. B. Avenue Branch, Dhaka.
8. Sonargaon Hotel Branch, Dhaka.
9. VIP Road Branch, Dhaka.
10. Badda Branch, Dhaka.
11. Narayanganj Branch, Narayangonj.
12. Jamalpur Branch, Jamalpur.
13. Kishoregonj Branch, Kishoregonj.
14. Netrakona Branch, Netrakona.
15. Tangail Branch, Tangail.
16. Bhairab Branch, Kishoregonj.
17. Faridpur Branch, Faridpur.
18. Mymensingh Branch, Mymensingh
19. Gulshan Branch, Dhaka
20. Uttara Branch, Dhaka
21. Malibagh Branch, Dhaka

Chittagong Division
1. Agrabad Branch, Chittagong.
2. Laldighi Branch, Chittagong
3. Kadamtali Branch, Chittagong.
4. Nasirabad Branch, Chittagong.
5. Cox’s Bazar Branch, Cox’s Bazar.
6. Comilla Branch, Comilla.
7. Chandpur Branch, Chandpur
8. Chaumuhani Branch, Noakhali.
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Khulna Division
1. Khulna Branch, Khulna.
2. Jessore Branch, Jessore.
3. Satkhira Branch, Satkhira.
4. Kushtia Branch, Kushtia.

Barisal Division
1. Barisal Branch, Barisal.

Sylhet Division
1. Sylhet Branch, Sylhet

Rajshahi Division
1. Rajshahi Branch, Rajshahi.
2. Natore Branch, Natore
3. Bogra Branch, Bogra.
4. Naogaon Branch, Naogaon.
5. Rangpur Branch, Rangpur
6. Thakurgaon Branch, Thakurgaon
7. Dinajpur Branch, Dinajpur.
8. Sirajgonj Branch, Sirajgonj

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4.3 Earning Per Share
Year EPS (in Million)

2017 2.01

2016 1.75

2015 1.92

2014 1.88

2013 1.80

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4.4 Balance of funds and accounts

I. 2017

4%

25%
41% Fire
Marine
Motor
MISC

30%

II. 2016

4%

29%
42% Fire
Marine
Motor
MISC

25%
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 Taka in Million

Year Fire Marine Motor MISC

2017 352.03 260 213.95 38.44

2016 353.67 207.63 248.85 36.20

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Appendix

1. http://rupaliinsurance.com/
2. https://www.google.com/search?q=rupali+insurance+co.+ltd+product+%26+services
&oq=rupali+&aqs=chrome.0.69i59j69i60l3j69i59j69i57.3823j0j7&sourceid=chrome
&ie=UTF-8
3. https://www.sonalilife.com/about.aspx

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