Prepare 

CHOWDLectureDepartm Prepare 

SHAFAAID : 030 

S.M. ZAID : 030 

RADWAID : 030 

MD. JAHID : 030 

SUNNY ID : 030 

RAJESHID : 025 

FARZANID : 023 Batch/SProgram Last DatMarch 3 

STA

  Assign 

ASSAMCO

ed For 

DHURY SHAHr ment of Busin

ed By 

AT KHAN 010123 

AKARIA 010149 

ANUL ISLAM 010102 

HIRUL ISLAM010138 

BISWAS 010421 

 ROY 506507 

NA HOSSAIN 305752 

Sec : 30(V) m : BBA 

te of Submiss30, 2008 

AMFO

ment for P

SIGNMERICMPA

HRIAR KHAN 

ness Administ

M 

sion 

ORD U

Principles of

MENCAN LANY (A

tration 

UNIVE

f Insurance

NT ONLIFE IALICO

ERSIT

e

N  NSURO) 

TY BA

RANC

ANGLA

CE 

ADESSH 

TABLE OF CONTENTS 

1. Background................................................................................…………………………………….01

2. Methodology..............................................................……………………………………………...02

3. Mission..............................……………………………………………………………………....03

4. Vision....................................................…..……………………………………………………….04

5. Policies....................................................................................……………………………………….05

6. A.I. Benefits……………………………………................................................................................06

7. Value of Capital..........................................................................................................................................09

8. Investment...................................................................................................................................................10

9. Assets...........................................................................................................................................................11

10. Reserves.......................................................................................................................................................12

11. Profit and Achievements...........................................................................................................................13

12. Information and Software System...........................................................................................................14

13. Brief and Analysis.......................................................................................................................................15

14. Recommendation.......................................................................................................................................16

15. Short Brief of Company............................................................................................................................17

16. Contact.........................................................................................................................................................18

 

EXHIBITS 

1. Exhibit – 1 : Comparing Work Groups and Work Teams……………………………………..01

2. Exhibit – 2 : Four Types of Teams……………………………………………………………03

3. Exhibit – 3 : A Team-Effectiveness Model……………………………………………………07

 

 

 

 

  

1

American Life Insurance Company (ALICO), incorporated in Delaware U.S.A. in 1921, is one of the largest international life insurance companies in the world, with more than US$ 294 billion of life insurance in force as of December 31, 2006. ALICO’s branches and subsidiaries market a wide range of life and health insurance products. These products include traditional life insurance, variable universal life insurance, credit life insurance, supplemental medical and personal accident products, health and hospitalization insurance, group life, pensions and annuities, through a network of some 35,000 agents. ALICO conducts business globally in Japan, Europe, the Middle East, South Asia, Latin America, and the Caribbean in more than 55 countries. ALICO Bangladesh is the oldest operation in the company’s Middle East, Africa and South Asia (MEASA) division tracing its origin back to 1952 when it entered Pakistan with business activities also extending to erstwhile East Pakistan. The company started full service branch operation in Bangladesh in 1974 and has since been marketing individual and group life insurance products with remarkable success. ALICO plays an important role in economy of Bangladesh. Its assets in Bangladesh currently exceed Tk. 2100 Crore with more than 476,500 life insurance policies in force. Besides with more than 6,500 career agents and more than 231 dedicated employees, ALICO is a major employer in the country.

BACKGROUND 

2

The method of this life insurance company is to distribute the burden of loss on number of persons

within the group framed for this particular purpose. The concept of grouping together or risk

sharing was in existence in very ancient times but gradually developed in its present state through a

process of evolution to meet the growing needs of the people in the field of general business and

industries.

METHODOLOGY 

3

Job satisfaction to the employees

Importance of Professional Management and development of corporate culture

Specialized, Personalized & Relentless services to the clients with excellent team work spirit.

Development of human resources for meeting the challenge of the day

Serving the nation through active participant in the development of economy.

Ensure steady growth of the company and maximum return to the share holders

MISSION 

4

The main vision of American Life Insurance Company (ALICO) is, they are ahead to meet the

challenge of national advancement in the years to come.

They want to introduce themselves as one of the leading Insurance Company of the Country in

private sector.

VISION 

5

The policies of American Life Insurance Company (ALICO) can be classified into various parts. Those are following: Life Insurance

People Personal Accident Hospital Care Good Health Special Education Protection Plus Air Travel Insurance Policy

General Insurance

Burglary Deterioration of Stock Insurance Machinery Break Down Insurance Contractor All Risk Insurance Aviation Insurance Electronic Equipment Insurance Policy Industrial All Risk Insurance Poultry Insurance Policy Motor Insurance

Different types of motor insurance policies may be issued for different categories of motor vehicles. Motor vehicles are usually are usually classified in the following manners: Private Cars, Commercial Vehicles, Agriculture Vehicles, Motor Traders’ Vehicles

Fire Insurance

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

POLICIES 

6

A.I. SUPPLEMENTARY CONTRACT Schedule of Indemnity If ‘such injury’ alone shall, within 90 days from the date of accident, cause:

Loss of life ………………………………………………………………….. The Principle Sum Loss of two or more limbs by amputation at

or above Wrists or Ankles …………....................................................................... The Principle Sum Total and irrecoverable loss of all sight in both eyes ……………………..…. The Principle Sum Total and irrecoverable loss of all sight in one Eye

and loss of one limb by amputation at or above Wrist or Ankle ………………………………………………………. The Principle Sum

Loss of one limb by amputation at or above Wrist or Ankle…... One-Half of The Principle Sum Total and irrecoverable loss of all sight in one Eye …………... One-Third of The Principle Sum Loss of Thumb and Index Finger of either Hand

by amputation at or above the Metacarpo-Phalangeal Joints………………………………………………………... One-Fourth of The Principle Sum

Or if ‘such injury’ alone shall not result in any of the losses mentioned above in Item 1 to 7 inclusive but alone shall cause:

A.I. BENEFITS 

Temporary, total and continuous disability and prevent the Insured from date of accident from performing any and every duty pertaining to his occupation during such disability.

Partial disability and prevent the Insured from date of accident or immediately following total disability under Item 8 above from performing one or more duties pertaining to his occupation, during such disability..............provided that the total of the period for which weekly indemnities may be paid under Item 8 and/or Item 9 of this Schedule shall not exceed fifty-two weeks in respect of any one accident calculated from date thereof; and further provided that disability of less than one week duration shall not be Indemnifible.

Weekly Indemnity

One-Fourth of the Weekly Indemnity

7

The Company will pay an indemnity as provided in items 1 to 10 inclusive, to the extent provided in this Supplementary Contract for loss specified herein which directly and independently of all other causes shall result within ninety days from the ate of accident from injuries sustained while the insured is a passenger in an aircraft operated by a commercial passenger airline on a scheduled air service over an established passenger route. The amounts payable in above Items 1 to 10 inclusive shall be double if ‘such injury’ is sustained:

(a) While the Insured is riding as a passenger within any mechanically propelled Non-aerial Public Conveyance which a Common Carrier then operates and regularly dispatches for hire over an established land transportation route in a regular passenger service or

(b) While riding as a Passenger in a regular Passenger Elevator Car (elevators in mines excluded) or

(c) In consequence of the burning of any Theatre, Hotel or other Public Building in which the Insured shall be at the commencement of the fire.

Should the Insured become entitled to indemnity under Item 2, 3, 4 or 10 of the above Schedule of Indemnities the Company will waive all premiums on the Policy aforesaid which fall due after such Indemnity has been awarded.

Permanent, total and continuous disability and prevent the Insured from engaging in any occupation or employment for wage or profit or from giving attention to any business whatsoever and provided that indemnity has been paid under Item 8 and/or 9 for fifty-two weeks the Company shall then pay, in equal monthly installments which shall be payable at the end of each month, during such permanent, total and continuous disability but for a period not to exceed ten years…………………..

The Annuity of Ten Percentum of the Principle Sum

PASSENGER AVIATION INDEMNITY

DOUBLE INDEMNITY

WAIVER OF PREMIUM

8

In case as Total and Permanent Disability Supplementary Contract is also attached to and in force with said Policy, then the Waiver of Premium benefits, specified in aforesaid Supplementary Contract in respect of total and permanent disability resulting from bodily injury, instead of the Waiver of Premium Clause specified in this Supplementary Contract shall apply. If the Insured, as a direct and exclusive result of Quarantine Regulations, be detained and prevented from following his usual occupation and business or giving any attention thereto whatsoever, and provided the Insured is not suffering from the disease which has necessitated the Quarantine, the Company will pay him a sum equal to the amount of the Weekly Indemnity above specified for the period of such detention, but not to exceed a period of four consecutive weeks for any one such detention.

QUARANTINE INDEMNITY

9

The Company started its functioning in Bangladesh with Paid up Capital of Tk.35.00 million and it has gone into public subscription in 1995 for share of Tk.35.00 million at 50% premium. The paid-up capital of the company is now 110.00 million. Tabulation of capital structures of our Company is shown as under:-

Taka in millionAuthorized Capital 275.00 Paid-up Capital Public Subscription 43.68 Paid-up Capital 112.38

VALUE OF CAPITAL 

VALUE OF CAPITAL

The totalGovernmFixed De

INVEST

l investment ment securitieeposits with C

TMENT 

of the Comes and Tk. 2Commercial B

2

mpany in 20023.8 million Banks stood

Tak

002 2003

INV

6 stood at Tin Banglade at Tk.265 m

ka in Million

2004 2

VESTMENT

Tk. 64 millionesh Commermillion.

n

2005 2006

T

n of which Tce Bank Lim

6

Tk.17.5 millimited. In add

10

ion in dition

The totalThis inclumarket valeased ou

0

100

200

300

400

500

600

700

ASSETS

l assets of Audes the booalue of whic

ut to Corpora

2006

S 

LICO stoodok value of thh is much hi

ate Branch of

2005

d at Tk. 678 he 4 storied bigher. One ff Standard Ch

Tak

5 200

A

million in 20building of thfloor measurihartered Ban

ka in Million

04 20

ASSETS

006 comparehe Companying 20,250 S

nk Limited.

n

003 2

ed to Tk. 534y at Tk. 79 mFT of the bu

2002

4 million in million, the pr

uilding have

Total 

Fixed 

11

2006. resent been

Assets

 Assets

The Reseat Tk. 15for Unexthan the amended premium that year,(ALICO)income oyear to m

0

20

40

60

80

100

120

140

160

RESERV

erve for Exce8 million inc

xpired Risks paid-up-Capin 1995 the income of t

, whichever i is 168 milli

of the year 20meet the excep

2006

R

VES 

eptional Loscluding Tk. 1stood at Tk

pital of Tk. 9company is

that year or ais the higherion as on D006, the comptional losse

2005

Reserve for U

ses of Ameri10 million raik. 90 million.98 million. Aallowed to kaverage premr. The net pr

December 31mpany keeps s of the com

Tak

5 2

Unexpired Ris

RE

ican Life Insised during th It may be m

As per fourthkeep Tax freemium incomeremium incom, 2005 whichreserve und

mpany.

ka in Million

2004

sk Reser

ESERVES

surance Comhe year out omentioned hh schedule oe Reserve fore of the threeme of Amerh is almost

der this head

n

2003

rve for Except

mpany (ALICof net profit.here that the of income taxr Exceptionale years immerican Life Insat par with for Tk. 10 m

2002

tional Losses

CO) in 2006 s. Besides, Rereserve is h

x ordinance l Losses up tediately precsurance Comthe net prem

million durin

12

stood eserve higher

1984 to the eding

mpany mium ng the

The profiincome o

0

20

40

60

80

PROFIT

fit and achievof the compan

2006

T & ACHIEV

vement of Amny is shown

2005

VEMENTS 

merican Life below:

Tak

2004

P

Insurance C

ka in Million

2003

PROFIT

ompany (AL

n

2002

LICO) of yea

Under

Net Pr

ar wise premi

writing Profit

rofit Before T

13

ium

t

ax

14

American Life Insurance Company (ALICO) uses following Software:

Accounting Software (TALLY)

Accounts System

Provident fund (PF)

Fixed Assent (FA)

FDR Maintenance System (FMS)

Personal Management Software System (PMSS)

Share Management System (Share)

INFORMATION AND SOFTWARE SYSTEM

15

Here are the brief and short analysis of American Life Insurance Company (ALICO). The analysis is based on four basic points. They are breafly discused. Strength

Highly skilled staffs & carrier agent. Strong headquarter to agency and agency to agency communication.. This company is holding a higher profitability sufficient. They have a large market share coverage. Having a strong resources of business.

Weakness

Their insurance process is so lengthy. Some problems in Human Resource Dept. local people have little a doubt about the company. They are unable to make the people understood about their policy. The strategy they follow, is not much upgreaded ot compete with others.

Oprtunities

Their economic condition is stable. Market growing. Doing well in share market.

Threat

Present global economic fluctuation. Natural disasters. Competitors are dramatically increasing.

BRIEF OF SWOT ANALYSIS 

16

Studying about this company, we have come to know about some strength, weakness, opportunities, threat etc of this company. So there are some recommendations for the company. Those are given below:

They should reach to the remote corner of the country.

They need to take more active stuffs or train their stuffs much carefully.

Their HRM dept is needed to improve.

They should try to make their strategy easier, so that the people could understand it.

They should not make their policy lenthy.

The compuetr system they use, is needed to improve.

To compite with the others they need to improve their strategy.

They should create more promotional activities.

RECOMMENDATION 

17

Short brief of American Life Insurance Company (ALICO) is given below: Commencement of Business in South Asia : 1952 (In Former East Pakistan)

Started Full Service Operation in Bangladesh : 1974

Number of Agencies in Bangladesh : 68

Employees : 231

Career / Field Agents : 6,500

Enlisted in Dhaka Stock Exchange : June 12, 1995

Enlisted in Chittagong Stock Exchange : December 5, 1995

SHORT BRIEF OF COMPANY 

18

ALICO Building

18-20, Motijheel C/A

Dhaka – 1000, Bangladesh

Phone : (880)-02-956-1791, (880)-02716-0025

Fax : (880)-02-955-8682

american.life@alicobd.com

CONTACT 

AMERICAN LIFE INSURANCE COMPANY