Internship Report on Chartered Life

Internship Report on Chartered Life Insurance Company Ltd. A comparative analysis on Human Resource Management practices between Chartered Life and Metlife Alico.

Prepared For

Mohammad Sajjad Hossain

Senior Lecturer

Department of Business Administration

Prepared By

Sabila Muntaha

ID: 2010-1-10-245

Department of Business Administration

East West University

Date of Submission: April 17, 2014

Contents Page

CHAPTER ONE

1.1 Background of the study 1

1.2 Origin of the report 1

1.3 Objective of the Study 2

1.4 Scope of the report 2

1.5 Methodology 2

1.6 Limitation 3

CHAPTER TWO

2.1 Introduction 4

2.2 History & Development of Insurance 4

2.3 Needs of insurance in Life 5-6

2.4 Development of insurance in Bangladesh 6-8

2.5 Implication of Five forces Model (By Michael E. Porter) in insurance industry of Bangladesh

9-10

2.6 Background of the Company 11-12

2.6.1 Vision 13

2.6.2 Mission 13

2.6.3 Objectives 13

2.6.4 Goal 13

2.6.5 Strategy House of the Company 14

2.6.6 Our Services and Network 15

2.6.7 Our Believe and Messages 15

2.6.8 Strengths of the Company 15

2.7 Types of Insurance 16-18

2.8 Types of Policies Chartered Life 18

2.8.1 Three Payment Plan 18-21

2.8.2 Five Payment Plan: 22-24

2.8.3 Child Education Protection Plan (CEPP) Plus 22-24

2.8.4 Pension Plan 24-26

2.8.5 Monthly Saving Plan 28-29

2.8.6 Endowment Insurance 29-31

2.8.7 Single premium life insurance 31

CHAPTER THREE

3.1 Company Organogram 32

3.2. Marketing & Agency Department 32-34

3.3. Underwriting Department: 34-35

3.4 Actuary Department 35-36

3.5 Customer Service 36

3.6 Human Resource Management Department 36-37

3.7 Information and communication Technology Department

38

3.8 My Job Responsibilities 39

3.8.1 Responsibilities in Marketing & Agency Department

39

3.8.2 Responsibilities of Human Resource Department

39

3.8.3 Responsibilities of Admin & General Service Department

40

CHAPTER FOUR

4.1 Introduction 40

4.2 Theoretical Background 40-42

4.3 Human Resource Management Key Responsibilities

42 -45

4.4 Comparison In terms of Human Resource Planning

45 -49

4.5 Comparison In terms of Recruitment Process 50-54

4.6 Comparison In terms of Recruitment Method 55- 57

4.7 Comparison In terms of Selection Process 57 -61

4.8 Comparison In terms of Training and Development Program

61-64

4.9 Comparison In terms of Performance Appraisal Systems

64-66

4.10 Comparison In terms of Recognition and Rewards

66-68

4.11 Linking Performance to Promotions 68-69

4.12 HRIS Practiced by Metlife Alico and Chartered Life

69

Conclusion 70

Bibliography 71

LETTER OF TRANSMITTAL April 17, 2010 Mohammad Sajjad Hossain Senior Lecturer Department of Business Administration East West University.

Subject: Submission of internship report

Dear Sir,

I would like to take this opportunity to thank you for the guidance and support you have

provided me during the course of this report. Without your help, this report would have been

impossible to complete. With deep gratitude, I also acknowledge the help provided by Mr.

Md. Mohiuddin, Incharge of Human Resource Department and Mr. Shahadat Hossain

Bhuiyan, Officer of Agency Service Department for providing me utmost supervision during

my internship in the organization.

To prepare the report I collected what I believe to be most relevant information to make my

report as reliable as possible. I have concentrated my best effort to achieve the objectives of

the report and hope that my endeavor will serve the purpose. The practical knowledge and

experience gathered during report preparation will immeasurably help in my future

professional life. I request you to excuse me for any mistake that may occur in the report

despite of my best effort.

I would really appreciate it you enlighten me with your thoughts and views regarding the

report. Also, if you wish to enquire about an aspect of my report, I would gladly answer your

queries.

Thank you again for your support and patience.

Yours Sincerely, Sabila Muntaha ID- 2010-1-10-245

Department of Business Administration East West University

ACKNOWLEDGEMENT Prosperous conclusion of any course requires support from various personnel and I was

fortunate to have that support, direction, and supervision in every aspect from my teacher,

Chartered Life officials and friends.

First of all I would like to thank beyond measure grace and deep kindness of the Almighty

Allah.

I like to express my deep sense of thankfulness to my supervisor of Internship Program Mr.

Mohammad Sajjad Hossain, Senior lecturer, East West University for his frank

encouragement as well as guidance in preparing this report. I acknowledge my gratitude to

Mr. Mohammad Mohiuddin, Senior Officer of HR Department for his help and valuable

suggestion from time to time and for being my supervisor in the host organization in

achievement of my internship program as well as preparing the report. And I would also like

to thank to Mr. Shahadat Hossain Bhuiyan, Officer of Agency Service Department, for their

kind cooperation.

I also show my utmost gratitude to all the officials of Chartered Life Insurance Company

Ltd.. The speed and helpfulness of the officers really helped me in obtaining the necessary

information in time.

I would also like to thank Mr. Abu Musa Siddiqui, Managing Director and CEO of the

company as well as Mr.Rezaul Hossain Khan the Honorable Advisor of Chartered Life

Insurance Company Ltd. who made the door of Unilever wide open for me.

EXECUTIVE SUMMARY Chartered Life Insurance Company Ltd is one of the newest life insurance companies of

Bangladesh. Officially it has started its journey from January 1, 2014. As the company is an

honest life insurance company and they are committed to doing what is right the company

believe very soon they will become the most admired life insurance company by securing the

financial future of the customers.

This report is designed in four major chapters. Initially the opening words about the report

were described in the first segment titled Introduction. The next segment Overview of

Insurance Industry and Chartered Life contains the history of insurance industry and the

present condition of insurance industry in Bangladesh as well as here we discuss the total

background of Chartered Life Insurance Company Ltd, and its Organizational structure.

Next two chapters are on my intern experience and the project part. In chapter three I have

briefly describe all the departments of the company and my key responsibilities and

involvements as an intern of Chartered Life. And in project part I have done a comparative

analysis on human resource management practices between a local and foreign life insurance

of Bangladesh. As a local company I have chosen Chartered Life and as a foreign company I

have chosen the very famous and well established Metlife Alico.

- 1 -

1.1 BACKGROUND OF THE STUDY

Insurance industry is one of the growing sectors in Bangladesh Insurance sector is

extenders its hand in different areas from time to time. At the same time the insurance

process is becoming faster ,easier and the insurance arena becoming wider .As the

demand for better service increases day by day, they are coming with different

innovative ideas and products. In order to survive in the competitive field of the

insurance sector, all insurance organization are looking for better service opportunities

to provide their fellow clients. As a result, it has become essential for every person to

have some idea on the insurance. The trade atmosphere today is changing more

rapidly than ever before. It is characterized by increasing competition from both

domestic and foreign companies, a brandish of mergers and acquisitions, and more

sophisticated and demanding customers who have great expectations related to their

consumption experiences. Since services are intangible, heterogeneous, and

inseparable, it is difficult to measure service quality objectively. So the companies have

focus to so many different aspects in order to make sure their sales. This report deals

with how a new private Life insurance company can compete with the existing

insurance companies. And thus in this report we discuss the present scenario and as

well the future strategies of the company. Finally this report has analyzed and

compared the human resource management practice in insurance industry of

Bangladesh and has considered a local and a foreign insurance in this regard. As a

sample it has taken the Chartered Life which is a new local insurance and Metlife Alico

a foreign life insurance of Bangladesh.

1.2ORIGIN OF THE REPORT

This report is a requirement of the internship program for my BBA program. My supervisor Mr.

Mohammad Sajjad Hossain assigned me the topic. I have tried my level best to make it as an

excellent one. I used all the latest data and information. I have been serving this company as an

intern for three months so I got privilege to put latest data .

- 2 -

1.3 OBJECTIVE OF THE STUDY

The main objective of this report is to have an assessment about overall activities of

Chartered Life Insurance Company Ltd. How they manage all the departments, what services

it is providing to the Clients and how Clients are getting benefit from it and what is the future

strategy of Chartered Life, in short how it is meeting up the requirements and competes with

the existing insurance companies. Finally This paper has analyzed and compared the human

resource management practice of chartered life with the existing strong foreign insurance

company Metlife Alico.

1.4 SCOPE OF THE REPORT

This report gives an overview about the company like about the mission and goals of the

company, the functional departments, the strategies, etc.

This report has been prepared through extensive discussion with the top level and mid level

management. While preparing this report, I had a great opportunity to have an in depth

knowledge of sales activities of the agency service department gives an overview of human

resource department. It also helped me to acquire a first-hand perception of a very new Life

Insurance Company of Bangladesh.

1.5 METHODOLOGY

To make the report more meaningful and presentable, two sources of data and information

were used widely. Both primary and secondary data sources were used to prepare this report.

There are some records collected from various resources of the company. Most of them can

be treated as the secondary date. Furthermore, I also attend some general meeting of the

companies. That have been used as a medium of collecting data for preparing this report.

Primary data that are mainly used are from different persons directly related to different

department of chartered life. The secondary data are mainly collected through different

journals, yearbooks, brand book, presentations slides, websites and etc. specially the

information and data about Metlife Alico are the secondary data we used in this report.

3

1.6 LIMITATION

The preparation of this report was not an easy task. As chartered life is a new company and

they do not have any previous record of business I had to face some problems & limitations

during the preparation of this report despite the fact that I have tried my best to prepare this

project successfully. The limitations were:

The Chartered Life is a totally new company so yet they do not prepared any furnished

format of their activities so collecting information from different sector was difficult and time

consuming.

Confidential information that no organizations inclined to share due to their business interest

was the major limitation I face while collecting information from Metlife Alico

Data from different sources were quite inconsistent which created some problems in making

the report & compelled me to verify the data diligently.

4

2.1. Introduction

Insurance is a system of spreading the risk of one onto the shoulders of many. Whilst it

becomes somewhat impossible for a man to bear of himself 100% loss to his own property or

interest arising out of an unforeseen contingency, insurance is a method or process which

distributes the burden of the loss on a number of persons within the group formed for this

particular purpose.

2.2 History & Development of Insurance The origin of insurance is lost in antiquity. However, there is no evidence that insurance in its

present form was practiced prior to the twelfth century. A brief chronological historical

development of the various branches of insurance is given below:

Marine Insurance: Marine is the oldest form of insurance and came first in the list. This type of insurance

probably began in northern Italy sometime during the 12th

& 13th

century and gradually the

concept was rather transferred to or taken over by the United Kingdom. During the 13th

/ 14th

century the Italian merchants went to UK and along with the merchandise carried with them

the trading customs including the concept of marine insurance. Marine insurance as such was

not being practiced as a separate specialized entity during that time since it were the

merchants who used to transact marine insurance business side by side with their general

trading activities.

Fire Insurance: After marine insurance fire insurance developed in present form. It had been observed in

Anglo -section Guild form for the first time where the victims of the fire hazards were given

personal assistance by providing necessaries of life.

It had been originated in Germany in the beginning of sixteenth century. The fire insurance

got momentum in England after the great fire in 1666 when the fire losses were tremendous.

Life Insurance

The third in the list of development is the life insurance business. The earliest policy of which

there is a record dates back to 1583. During this period only short term polices were used be

issued meaning that only at the death of the life assured during the term period the money

was to be paid. On survival nothing was payable.

5

In 1693 Halley introduced the mortality table giving a definite value to risk of death. In

1974, the life Assurance Act was passed in the British parliament requiring the presence of

insurable interest before one could affect a life policy on the life of another. All these

gradually gave life assurance a sound, systematic and scientific basis as we see in the present

day.

2.3 Needs of Insurance in life

The need for life insurance is simple; you should consider life insurance if anyone depends

on your income. Essentially, you transfer the risk (loss of your income) to the insurer by

paying a fee, or premium, to the insurer. The insurer, with a large capital base and expertise

in risk selection and management, is better able to accept this risk than any single individual

would be.

This risk transfer may be helpful in both personal and business situations.

Personal needs:

Dependent's Support: The major reason people buy life insurance is to replace income that

would be lost because of the death of an income earner. If you support or help support a

family, the loss of income that would result from your death could mean that your surviving

dependents may face financial difficulties. Household expenses continue, utility bills and

school fees must be paid, and food and clothing must be purchased. Life insurance provides

you with a sense of security in the knowledge that the life insurance money will be available

to help support family members in case of your death.

Education Costs: One of your primary objectives may be to send your children to a university

or college. Due to an untimely death, the tuition may become beyond your family's reach.

Life insurance may be used to provide for the tuition expense.

Burial expenses and estate planning: Life insurance may be used to pay funeral or burial

expenses. In addition, it may be used to pay inheritance taxes.

6

Investment Income: Life insurance policies that accumulate savings can also be used as

vehicles for personal savings and investment. Over a period of time, the accumulated savings

in a permanent life insurance policy can grow to a substantial sum and, while growing, will

still provide the insured with life insurance coverage.

Business needs:

A business continuation insurance plan: When the owner or a key person (any person whose

death would cause the business a significant financial loss) dies, a business continuation life

insurance plan may be used to provide the necessary fund for the business' continued

operation.

Buy-Sell Agreement: If your business partner dies and you don't have enough money to buy

your partner's financial interest in the company, life insurance may be arranged to cover this

cost.

Life insurance as Employee Benefits: Businesses often use life insurance to provide benefits

for their employees. Employers pay for all or part of these employee benefits as part of the

total package under which they compensate their employees.

2.4 Development of Insurance in Bangladesh

Insurance is not a new idea or proposition to the people of Bangladesh. About half a century

back, during the British rule in the then India, some insurance companies started transacting

insurance business, particularly life in this part of the world. Since 1947 until 1971 insurance

business gained momentum in this part of what was then known as East Pakistan. There were

about 49 companies transacting both life and general insurance business. These companies

were of various origins, Viz, British, Australian, Indian, West Pakistani and East Pakistani.

Except a few companies these were mostly limited liability companies acting under a free

competitive economy.

With the emergence of the Peoples Republic of Bangladesh, the government in order to

7

make available the fruit of liberation to the general mass, nationalized the insurance industry

in 1972 by presidential order no 95 more specially known as the Bangladesh insurance

(Nationalization) order 1972.

By virtue of the order, save and except postal life insurance and foreign life insurance

companies (other than the Pakistani companies), all companies and organizations transacting

all types of insurance business in this country came under this nationalization. Five insurance

corporations were basically established, Viz.

i) Jatiya Bima Corporation ii) Teesta Bima Corporation iii) Karnaphuli Bima Corporation iv) Rupsa Jibon Bima Corporation v) Surma Jiban Bima Corporation

The Jatiya Bima Corporation was not an underwriting corporation, actually, it was a central

corporation to supervise and control the activities of the remaining four subsidiary

corporations. As per this order Teesta and Karnaphuli were made responsible for general

insurance business and Rupsa and Surma were made responsible for life insurance business.

All the existing 49 companies were merged with this 4 corporation whilst life companies or

the life portion of a composite company joined the Rupsa and Surma, the general companies

or the general portion of a composite company joined the Teesta and Karnaphuli.

Formation of two corporations

Although the basic idea behind creating 2 corporations in each main branch was to encourage

competition even under a nationalized system, it was observed soon that the unnecessary

administration expenses for maintaining these two corporations in each front

and arr apex institution.

Therefore, on 14th

May, 1973 the structural arrangement under nationalization was changed

vide act VI 1973.

The previous 5 corporation were abolished and instead 2 corporations were established, Viz.

i) Sadharan Bima Corporation

For transacting general insurance business only. The two general insurance

8

corporations were merged under it.

ii) Jibon Bima Corporation

For transacting life insurance business only. The two life insurance

corporations were merged under it. In the sector, postal life insurance business

and corporation of life business by foreign companies (other than Pakistan) are

still permitted as before.

This is the present structure under which the insurance business in transacted in this country.

Insurance is not altogether a new idea in this country, but somehow it could not flourish

much. Now however, there is enough provision for tapping the untapped resource and

potentialities. During the Pakistan or Pre-Pakistan period this market was basically a

production market dealing only in limited conventional types of insurance business both in

life and general. Consideration used to be missing as to what type of policy would suit best

the requirement of the people. Hence, even though there was tremendous growth prospect, it

never gained momentum in the past. Lake of proper technical know-how of the insurance

personnel and the general ignorance of the public as to the importance of insurance business

were also partly responsible for extremely slow growth of insurance activities in the past.

2.5 Implication of five forces model (By Michael E. porter) in insurance industry of Bangladesh.

9

Michael E. Porter of the Harvard School of Business Administration developed a five forces

model which helps the business managers analyze the forces of the environment within a

specific industry context. In this respect, I like to make discussion below in respect of

insurance industry its importance and implication in Bangladesh.

i) Risk of entry by potential competitors

The change of entry by potential competitors depends on the barriers to entry. The higher the

barriers are, the lower is the chance to entry by the potential competitors. In this respect,

Bangladesh government has not given permission to establish any insurance company except

ALICO. As such, the insurance companies of Bangladesh are enjoying better facilities and

benefits, but to allow the foreign insurance companies are dependable on the wishes of

Bangladesh government. So our own insurance companies are always remaining anxious if

Bangladesh government permits insurance companies of foreign countries, then they will be

in the face of hard competition.

ii) Rivalry among establish companies

The extent of rivalry depends on the function of three factors, such as, a) competitive

structure, b) Demand conditions and c) Exit barriers.

Competitive structure refers to the number and size of companies in an industry. Structures

vary from fragmented to consolidate. Growing demand is good for existing companies

because it gives opportunities to the existing companies to expand operation. Exit barriers

Riverly among

established Firm

Risk of entry by potential

competitor

Burgaining Power of

buyers

Threats of substitute

Product

Burgaining Power Of Supplier

10

could be economic, strategic and even emotional. In the light of above discussion the

insurance companies of Bangladesh are better in their competitive structure, demand

condition, but the spoken in the last exit least number of barrier.

iii) Bargaining power of Buyer

Buyers can be viewed as a competitive threat when they force down prices or demand higher

quality products and better services. Alternatively weak buyers give a company the

opportunity to raise prices and earn greater profits. The bargaining powers of the policy

holders of insurance companies of Bangladesh are mostly limited. As such they are enjoying

better facilities.

iv) Bargaining power of supplier Suppliers are most powerful in the following circumstances-

When the product that suppliers sell has few substitutes and is important to the

company.

When the companys industry is not an important customer to the suppliers.

Above stated factors are not a matter of thread for the insurance companies of

Bangladesh.

v) The threat of substitute products

When there are close substitutes, they pose strong competitive threat. It results in reduction in

price by limiting profitability. In this regard the insurance companies of Bangladesh are

mostly in safe condition, As insurance is the substitute of its own itself.

2.6 Background of the Company

Chartered Life Insurance Company Limited got its government license on 4th

July 2013

and incorporated as a public limited company on 29 July 2013 under the Companies Act1994

11

to conduct life insurance business the Insurance Act 2010. But yet the company is not a

member The authorized capital of the company is Tk. 250 Crore divided into 25 Crore

ordinary shares of Tk. 10 each. Its paid up capital shall be Tk. 30 Crore. The sponsor

shareholders subscribed 60% of its paid up capital and the remaining 40% was paid by the

public shareholders. The company officially started its journey from 1st January 2014. The

Head Office of the Company is located at Dhaka and at present company has 15 other branch

offices in 15 other area and they are located at

Chittagong, Sylhet,Rajshahi, Comilla, Feni, Noakhali, Rangpur, Mymensing, Barishal,

Khulna, Jhalakathi, Gazipur & Narshingdi.

12

The management of the company is vested in a 16-member board of directors with the

managing director and with an advisor as the chief executives. The List of Board of directors

and chief executives is given below

SL.

No

Name Position

1. Vice Principal Mr. Abdus Shahid Chairman

2. Mr. Shykh Seraj Vice Chairman

3. Mr. Mohammad Nazim Uddin Khan Founder Director

4. Mr. Rezaul Karim Director

5. Mr. Md. Kamrul Noor ( Unique Hotel & Resort

Ltd.)

Director

6. Mr. Ghulam Mustafa Director

7. Mr. Niaz Ahmed ( Golden Oil Mills Ltd.) Director

8. Mr. Shamshed Ali Director

9. Mr. Md. Jahangir Alam ( GPH Power Generation

Ltd.)

Director

10. Mr. Mohd. Imtiaz Ahmed Director

11. Mr. Durjoy Khan Majlish Director

12. Mr. Zillur Rahman Jillu Director

13. Mr. Munyam Khan Babul Director

14. Mr. Md. Rabiul Alam (Energypac Power

Generation Ltd.)

Director

15. Mr. Mohd Noor Ali Independent Director

16. Mr. Faridur Reza Sagar Independent Director

17. Mr. Abu Musa Siddiqui Managing Director

18. Mr. Rejaul Hossain Khan Advisor

13

2.6.1 Vision : To become the best private life Insurance Company of

Bangladesh and in South East Asia as a whole by

maintaining utmost integrity, responsibility and

transparency.

2.6.2 Mission :

Abide by Shahriah Principles in day to day business

affairs.

Build dynamic, sound and professional management team.

Conduct business in a responsible Manner.

Develop Innovative products.

Enhance Good Governance.

Faster Quality Management System.

2.6.3 Objective: To provide with ethical highest standard service that uphold the value of Islam.

2.6.4 Goal: To serve the humanity for its well being in the present and the world hereafter by providing financial and moral

gains through utmost good faith, good conduct, mutual

trust, sincerity, integrity and personalized service.

14

Strategy House

VISSION

TARGET

PILLARS

METRICS

VALUE

ENEBLE

Core

Distribution

-Agency

manpower

to 15000 by 20

-Improve

agency

selection

model

-Fast track

promotions

-Geographical

expansion

-Training &

Development

- Job Fairs

New

Distribution: - Potentials of

new Act for -

Bancassurance

Sponsored

Marketing

-Enhance

Cross/Up sell

-E-commerce

- Maturity

Recapture

-Partnership

for Micro-

insurance

-Expatriate

worker

insurance

- Enhance

technical

resources

- Product

Development

for agency

- Develop

product suite

for

banacassurance

- Develop

product suite

for micro

Insurance

- Develop

Takaful product

- A full -

fledged

Marketing

Department

-Market

research

-Build

Awareness

About

insurance

-Enhance

brand

recognition

-Customer-

centric sales

aids

- Customer

touch points in

key locations

- Customer

Loyalty

-CRM

-Bilingual policy

Material

-Double- billing

and embedding

-Performance-

based Reward

-Customer

information

desk

-

Communicate

vision & values

-Talent

development

-career

progression

opportunities

-Cross-

functional

training

-Goal-setting

and scorecard

-Review

recruitment

process

-Compensation

survey

-Tier grouping

and salary

banding

- Improve TAT

-Automate

workflow

-Install

Dashboard

-Strengthen

premium

collection

facilities

-JET

underwriting

-Improve claim

Administration

-Automate call

distribution

-Web-based

solutions

-Enhance data

capture capacity

- Quick

complaint

resolution

Discipline

Innovation

Distinction

Customer Focus

People

Performance

To become the best private life Insurance Company of

Bangladesh and in South East Asia as a whole by maintaining

utmost integrity, responsibility and transparency

Meet the Break Even Point in 4 years

Distribution Product Marketing & Customer Centricity Employee of Operational

Communication & Conservation Choice Efficiency

VoNB By

Channel

New Product

VoNB ratio

Brand Survey/

VoNB

Customer Survey/

Net promoter score

OPEX

Ratio/TAT

Independent

Survey

WORLD CLASS TECHNOLOGY, HUMAN RESOUCE MANAGEMENT, FINANCE, OPERATIONS &

COMPLIANCE CAPABILITY

15

2.6.6 Our Services and Network

Our services are available from individual to massive concern from (life) all risk

analysis by appropriate insurance. At the other end of your telephone call or e-mail

and even of your doorstep.

2.6.7 Our Believe and Messages

We believe the client must stand of the center of all our activities. Our ability to

optimally fulfill the clients requirement is based on three strategic capabilities: best

risk management advice, maximum security with minimum cost and personalized

service.

2.6.8 Strengths of the Company

As the Insurance Company, initially I have the following strengths:

o Sufficient capital

o New technology

o Skilled agents

o Efficient administration

o Customer care

o Regularity in service

o Availability of financing & efficient financial

structure

o Located in a reputed area

o Marketing research facility

16

2.7 Types of insurance

Although you may hear about many names for different types of life insurance policies, the

majority of policies contain benefits derived from one or more of three basic types. These

types are briefly outlined in very general terms below.

Term Life Insurance: Term insurance is issued for a specific period, or term. This

term usually ranges from 1 to 30 years. You may choose the length of the term that best suits

you. Term insurance is considered an afforda

ble insurance choice. If you are young with a family and need a large amount of protection

without paying high premiums, this type of life insurance may be of interest to you.

Under a Term policy, in case of death during the term of the policy, your beneficiary receives

the cash payment equal to the insurance amount, or death benefit. The death benefit

amount is chosen when you buy the policy. Term insurance protection ends when the period

or term is over, and only pays out in case of death. For this reason this product type offers

higher protection at a lower cost. It is a pure risk transfer product.

Term insurance can be divided into three main types: level term, increasing term, and

decreasing term. Level term means that the death benefit remains the same throughout the

term of the policy. Increasing term means the death benefit gets larger throughout the term of

the policy. Decreasing term means the death benefit gets smaller.

Endowment Life Insurance: Endowment life insurance generally guarantees that a

sum of money will be available to you or your beneficiaries, whether you live until the policy

ends (or matures,) or in case of an untimely death. Endowment insurance usually provides

a guaranteed death benefit and has a savings component called the cash value.

Generally, if you buy an endowment policy and keep it until maturity, it will provide a lump-

sum cash payout equal to the insurance amount, or death benefit. In case of death before

maturity, the death benefit would be paid to your beneficiary.

17

Endowment insurance can be useful for people who know that they will have to incur a

specific expense in the future like a wedding or college tuition. They know that regardless

of what the future may hold, the expense will have to be paid. Endowment insurance allows

them to be certain that the money will be there.

Whole Life Insurance: Whole life insurance has many of the same features as

Endowment insurance, but it is designed to remain in force during the insured's entire

lifetime. Like Endowment insurance, it provides a guaranteed death benefit, and has a

savings component called the cash value. As you pay your premiums, a portion of each

payment is set aside to create the cash value. The insurance company typically invests the

cash value, which continues to grow as long as the policy is in force.

Some of the advantages of a policy's cash value are that:

- You can cancel or surrender the policy in total or in part and receive the cash value;

however, since this is a long-term policy, in the early years the cash value may be small or

even equal to zero.

- If you find that you need to skip a premium payment, you can use the cash value to

continue your current insurance protection for some time.

- In most cases, you may borrow from the insurance company, using the cash value in

your life insurance as collateral.

Other types of whole life insurance:

A number of supplementary benefits can also be added to the various forms of life insurance

policies. Adding riders to the life insurance policy usually provide these additional benefits.

The most common supplementary benefits include:

18

- Accidental Death Benefit: If the insured dies as a result of an accident, the insurer will pay

an amount of money in addition to the basic death benefit provided by the life insurance

policy.

- Waiver of Premium for Disability Benefits: The insurer waives its right to collect

premiums that become due while the insured is totally disabled.

- Disability Income Benefits: The insurer provides a monthly income benefit to the policy

owner insured if he becomes totally disabled.

- Critical Illness Benefits: The insurer agrees to pay a portion of the policy's face amount to a

policy owner insured that suffers from one of a number of specific, critical illnesses

2.8 Types of Policies in Chartered Life

1. Three Payment Plan 2. Five Payment Plan 3. Endowment Plan ( EP-1) with profit 4. Endowment Plan ( EP-2) without Profit 5. Education Protection Plan ( CEPP) 6. Single Premium Plan 7. Pension Plan 8. Monthly Savings Plan

2.8.1 Three Payment Plan:

Chartered Life Three Payment Plan (3PP) plus provides High Insurance Protection and

attractive returns on Your Premium.

How Does the Plan works:

The unique feature of the plan is that Chartered Life pays you 50% of the Face Amount much

before the maturity of the policy. It combines both death and living benefits in the most

beneficial and convenient manner to you or your beneficiaries.

19

The living benefits consists of, among others, Three Installment Payments:

25% of the Face Amount is paid at the end of One- Third ( 1/3rd) of the Term of the

policy.

Another 25% of the Face Amount is paid at the End of Two- Third ( 2/3rd) of the

Term.

The remaining 50% of the Face Amount is paid with Reversionary Bonus and Capital

Growth Dividends (if applicable) at MTURITY.

The Death Benefit payment of the Full Face Amount along with Bonuses paid in the event of

death at any time during the term of the policy. 3PPP is available for 12,15,18,21 or 24 years

of coverage.

PROTECTION ALL THROUGH

Important, the 1st and/or 2

nd installment amount has no bearing on the Benefits receivable by

the beneficiary (ies) in case of Insureds Death. Even if the insured dies after the 2nd

installment has been paid , the beneficiary(ies) receives the FULL FACE AMOUNT plus

accrued BONUSES.

In the event of death , no deduction is made for the installment already paid.

PAYMENT BEFORE MATURITY

Two installments that you receive before maturity can be used to meet any of your following

needs or you can invest it wherever you want, to give you the maximum returns.

Buy additional protection from Chartered Life.

Reinvest in your business.

Meet Expenses for any Emergency.

Meet Expenses for education and marriage of your children.

Finance future premiums for the same policy.

Acquire Assets

Automatic transfer of those installments to buy Single Premium Endowment Policy

which has been especially developed for our 3PPP policy owners.

20

BONUSES & DIVIDENDS

Chartered Lifes 3PPP policy will participates in the profits declared in the form of

Reversionary Bonuses. 3PPP policies with terms 18 years and above also entitled to Capital

Growth Dividends (Special Bonus). From the 2nd

Year onwards, all premiums paid by 3PPP

policy and Chartered Life Adds the applicable Bonus amounts to it. The current bonus rates

may change in the future. However, the declared bonuses are paid at the time of Maturity /

Death Claim Settlement. In case the policy is surrendered, the cash value of reversionary

Bonus is payable.

PERSONAL ACCIDENT COVERAGE

If you qualify for accident coverage, this plan also provides the following additional benefits

in case of your death, disability or injury due to accident within in the premium paying

period.

Accidental Benefit 100% of FA

Permanent Total Disability Benefit 100% of FA

Permanent Partial Disability Benefit for the following Losses

Both Hands of Feet or Sight of Eyes 100% of FA

One hand and one foot 100% of FA

Either Hand /Foot and sight of eyes 100% of FA

Hearing of both ears 100% of FA

Speech 100% of FA

Either Hand or Foot 50% of FA

Sight of one eye 50% of FA

Thumb and Index fingers 25% of FA

Medical Expenses Reimbursement Max 15% of FA

Personal Accident Coverage provides Maximum of Tk. 20,00,000 and its proportionate

amount as mentioned above.

For housewives, and insured of age 25 or below, the Maximum Coverage would be

Tk. 10,00,000.

You can add many optional valuable benefits to your basic plan from following riders:

21

Waiver of Premium: Premium waived if totally disabled due to accident or sickness

for mane than six month.

Health Care: Weekly benefit when you and your family members are hospitalized

due to accident or sickness.

Critical Care: Lump sum payment if you are diagnosed for any of the covered dread

diseases.

Accidental Indemnity / Limited Accident Insurance Certificate: Lump sum

payment up to 2 times of face amount for loss of limbs due to accident and up to 2

times of face amount due to death caused by accident while travelling in a common

carrier.

Accidental Death Benefit: Up to 2 times of face amount due to death caused by

accident.

These payments will not reduce your life cover,

OTHER ATTRACTIVE FEATURES

Your Premium will never increase. All through, a fixed amount of premium is to be

paid.

Cash Values, Paid Up Values, and extended term insurance values are Guaranteed.

Loans up to a maximum of 90% of cash value are available, if required.

Like all other life policies, the paid premiums are Income Tax Deductable. (Subject

to income tax laws.)

22

2.8.2 Five Payment Plan:

Chartered Life Five Payment Plan (5PP) plus provides High Insurance Protection and

attractive returns on Your Premium.

How Does the Plan works:

The unique feature of the plan is that Chartered Life pays you 50% of the Face Amount much

before the maturity of the policy. It combines both death and living benefits in the most

beneficial and convenient manner to you or your beneficiaries.

The living benefits consist of, among others, five Installment Payments:

12.5% of the Face Amount is paid at the end of One- Fifth (1/5th) of the Term of the

policy.

12.5% of the Face Amount is paid at the End of Two- Fifth (2/5th) of the Term.

Another 12.5% of the Face Amount is paid at the End of Three- Fifth (3/5th) of the

Term.

And end of Four- Fifth ( 4/5th) of the Term another 12.5% of the Face Amount is paid

The remaining 50% of the Face Amount is paid with Reversionary Bonus and Capital

Growth Dividends (if applicable) at MTURITY.

The Death Benefit payment of the Full Face Amount along with Bonuses paid in the event of

death at any time during the term of the policy. 3PPP is available for 12,15,18,21 or 24 years

of coverage.

PROTECTION ALL THROUGH

Important, the 1st and/or 2

nd installment amount has no bearing on the Benefits receivable by

the beneficiary (ies) in case of Insureds Death. Even if the insured dies after the 2nd

installment has been paid, the beneficiary (ies) receives the FULL FACE AMOUNT plus

accrued BONUSES.

In the event of death, no deduction is made for the installment already paid.

23

PAYMENT BEFORE MATURITY

Two installments that you receive before maturity can be used to meet any of your following

needs or you can invest it wherever you want, to give you the maximum returns.

Buy additional protection from Chartered Life.

Reinvest in your business.

Meet Expenses for any Emergency.

Meet Expenses for education and marriage of your children.

Finance future premiums for the same policy.

Acquire Assets

Automatic transfer of those installments to buy Single Premium Endowment Policy

which has been especially developed for our 3PPP policy owners.

BONUSES & DIVIDENDS

Chartered Lifes 3PPP policy will participates in the profits declared in the form of

Reversionary Bonuses. 3PPP policies with terms 18 years and above also entitled to Capital

Growth Dividends (Special Bonus). From the 2nd

Year onwards, all premiums paid by 3PPP

policy and Chartered Life Adds the applicable Bonus amounts to it. The current bonus rates

may change in the future. However, the declared bonuses are paid at the time of Maturity /

Death Claim Settlement. In case the policy is surrendered, the cash value of reversionary

Bonus is payable.




period.

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Both Hands of Feet or Sight of Eyes 100% FA

One hand and one foot 100% FA

Either Hand /Foot and sight of eyes 100% FA

Hearing of both ears 100% FA

Speech 100% FA

Either Hand or Foot 100% FA

Sight of one eye 100% FA

Thumb and Index fingers 100% FA

Medical Expenses Reimbursement 100% FA

Personal Accident Coverage provides Maximum of Tk. 20,00,000 and its proportionate

amount as mentioned above.

For housewives, and insured of age 25 or below, the Maximum Coverage would be

Tk. 10,00,000.

2.8.3 Child Education Protection Plan (CEPP) Plus

Children are precious object and it is prime responsibility of parent to furnish their future.

There is no gift you can give your children than a secure future, and is qualitative and

functional education will remain the only permanent legacy parents can pass on to the

children to ensure their future.

This laudable vision may be completely jeopardized in the event of sudden death of parents.

It is against this background and that Child Education Protection Plan (CEPP) is presented.

WHY DO YOU THINK ABOUT YOUR CEPP

Youve been blessed with success, and now you want your child to enjoy the fruits of your

labor and get a head start on life, with the best possible education you can provide, whether in

25

Bangladesh or abroad. CEPP plus allows you to turn that dream into a reality along with

offering life insurance protection.

CEPP plus allows you to save regularly so that you can offer your children the education they

deserve.

HOW CEPP WORKS

You select the period plan at which you want the policy proceeds to be paid. You can select

any period from 10 to 25 years. It is mentionable that the age of the child at maturity will be

maximum 25 years.

PAYMENT AT MATURITY

At plan maturity, the Face Amount of the policy plus bonuses will pay. The money can be

used to pay for his/her higher education. Or if he/she has already completed education,

money may be very helpful for starting his/her new career or marriage expenses offer

purposes.

IN CASE OF DEATH

A. Future premiums under the policy will be waived and the policy would continue till

the maturity of the policy.

B. Stipend for Education equal to 1% of the Face Amount/ Sum Assured will be paid

every month to the insured child till the maturity of the policy, and

C. At Maturity, he/she would receive the Face Amount ( FA) with Bonuses

In the unfortunate event of the childs loss of life the plans maturity, Face Amount plus

accrued Bonuses are payable, subject to Juvenile Endorsement.




period.

26




Both Hands of Feet or Sight of Eyes 100% of FA

One hand and one foot 100% of FA

Either Hand /Foot and sight of eyes 100% of FA

Hearing of both ears 100% of FA

Speech 100% of FA

Either Hand or Foot 50% of FA

Sight of one eye 50% of FA

Thumb and Index fingers 25% of FA

Medical Expenses Reimbursement Max 15% of FA

BONUSES

Your policy will be participated in bonus declared in the form of Reversionary Bonus and

Capital Growth Bonus (Terminal Bonus), if applicable.

OTHER ATTRACTIVE FEATURES

In accordance with rule Cash Value, Paid-Up Value payments are guaranteed.

Your Premium will never increase.

2.8.4 Pension Plan

When youve worked hard all your life youll want to make sure that you can enjoy

your retirement? Chartered Life Pension Plan can help make sure you get the most out of

your work-free years. All you have to do is tell us when you want to retire and what income

you think you might need. We can help make your retirement dreams come true for you.

Product Overview

Offers you a combination of savings and protection

You can choose a plan that has a payment term ranging between 10 and 20 years

Facility to withdraw the face amount along with any accumulated bonuses any time

after the end of the premium payment period

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You can start receiving the pension payment, 1 year after the completion of the

premium payment period

You can choose to postpone this pension payment and leave the annual income with

Chartered Life to accumulate further

This annual pension payment will continue up to the age of 100

We offer a minimum guaranteed return of 4% with the option to receive an excess for

the years your investment performs better than expected

In the unfortunate event of your death, our loved ones will receive the full

face amount plus accrued bonuses.

Like in all other life policies, the paid premiums are income tax deductible (subject to

prevailing tax laws & rules)

This plan also provides a personal accident coverage that ensures the financial

future of your loved ones in case of your death, disability or injury due to accident

A. ACCIDENTAL DEATH BENEFIT : 100% of FA

B. PERMANENT TOTAL DISABILITY BENEFIT : 100% of FA

C. PERMANENT PARTIAL DISABILITY for the following

losses:

Both Hands or Feet or Sights of eyes : 100% of FA

One Hand and One Foot : 100% of FA

Either Hand / Foot and Sight of One Eye : 100% of FA

Hearing of Both Ears : 100% of FA

Speech : 100% of FA

Either Hand or Foot : 50% of FA

Sight of one Eye : 50% of FA

Thumb and Index fingers : 25% of FA

D. MEDICAL EXPENSES REIMBURSEMENT Max of : 15% of FA

Product Details

Eligibility

Minimum Age: 90 Days

Maximum Age: 55 Years

Term 10 to 20 Years

Currency

Bangladesh Taka (BDT)

28

Face Amount

Minimum BDT 100,000

Maximum BDT 75,000,000

Gender

Male and Female

Personal Accident Coverage


in case of your death, disability or injury due to accident within the premium paying period.

The Personal Accident Coverage provides a maximum cover of Tk.20,00,000 and the

proportionate amounts are mentioned below:

2.8.5 Monthly Saving Plan

Some of the best things in life are not always free and some can cost quite a bit be it your

daughters wedding or a dream home for your retirement Whatever your aspirations for the

future, the Income Growth Plan can help you achieve them with benefits that means you

can face the future not only with confidence but with your dreams in mind.

Product Overview

A unique plan that combines protection and savings

Offers you a maximum premium payment term of up to 30 years thereby giving the

flexibility of choosing small payments to suit your budgetary needs

The plan is split into 2 phases. The first phase is for a period of 7 years and then the

second phase starts (from the 8th year) and includes the rest of the term.

During the first 7 years your savings accumulate and grow and at the end of the 7th

year a dividend is declared. This dividend could be up to 40% of the cash value of

your plan.

In the second phase, the cash value and dividend are transferred to the Investment &

Protection Account (IPA)

From the 8th year onwards, the policy offers a range of flexible options such as

changes to the amount of premium, insurance coverage, etc, subject to the policy

terms and conditions.

Maturity Benefits: On maturity, the policy owner can either withdraw the account

(IPA) value; or convert it into a life time pension.

Like in all other life policies, the paid premiums are income tax deductible (subject to

prevailing tax laws & rules)

29

Income Growth also provides Personal Accident Coverage in case of your death,

disability or injury due to accident.

Personal Accident Coverage


in case of your death, disability or injury due to accident within the premium paying period.

The Personal Accident Coverage provides a maximum cover of Tk.20,00,000 and the

proportionate amounts are mentioned above

A. ACCIDENTAL DEATH BENEFIT : 100% of FA

B. PERMANENT TOTAL DISABILITY BENEFIT : 100% of FA

C. PERMANENT PARTIAL DISABILITY for the

following losses:

Both Hands or Feet or Sights of eyes : 100% of FA

One Hand and One Foot : 100% of FA

Either Hand / Foot and Sight of One Eye : 100% of FA

Hearing of Both Ears : 100% of FA

Speech : 100% of FA

Either Hand or Foot : 50% of FA

Sight of one Eye : 50% of FA

Thumb and Index fingers : 25% of FA

D. MEDICAL EXPENSES REIMBURSEMENT Max of : 15% of FA

Product Details

Eligibility

Minimum Age of 90 days and a maximum Age of 60 years

Currency

Bangladesh Taka (BDT)

Face Amount

Minimum BDT 100,000 & Maximum BDT 7,500,000

Premium

Minimum (excluding riders) BDT 10,000 (Adult) & Minimum BDT 7,500 (Juvenile)

Gender

Male and Female

2.8.6 Endowment Insurance

Description of Policy

Endowment Insurance provides insurance protection, as well as a savings opportunity for the

duration chosen by the insured.

30

In case of death of the insured as a result of an illness or accident before the policy

matures, Chartered will pay the capital amount to the beneficiaries.

If the insured is alive when the policy matures, the capital amount is paid to him/her.

The capital amount is guaranteed and, depending on the prevailing financial

conditions of the market, it can be further increased with the Interest Benefit.

Also, after the first 3 years, the policy can be surrendered and the insured can receive

the guaranteed Cash value and the Interest Benefit accumulated by that time.

The policy may be paid either through equal periodic payments or a lump sum

payment.

What needs are met

The sudden death of the income earner in the family may have significant financial

consequences for the family and upset its financial planning. An Endowment Insurance may

be used for:

Settlement of regular family obligations (housing or consumption loans, credit cards,

taxes etc.)

Settlement of extraordinary expenses of the family (hospitalization, burial

expenses etc.)

The unhindered continuation of childrens studies

Also, Endowment Insurance can at the same time function as a savings scheme given

that when the policy ends the insured is paid the guaranteed capital amount, which

may be used to:

Finance significant purchases (house, car, etc)

Meet the cost of childrens studies

Finance childrens professional plans

Meet health-related emergency situations

Significant benefits of the Policy

Insurance Protection is combined with savings scheme over the duration chosen by

the insured.

A technical interest rate of 2.5% for the entire duration of the plan (the maximum

allowable by law).

Significant cost reduction for those who choose a coverage amount in excess of

18,000.

31

Option of tailoring the policy to your personal needs (cover amount, duration of the

policy, and cost of the policy).

Option of an additional insurance coverage so that there is a comprehensive insurance

coverage.

Premium payments can be made annually, semi-annually, quarterly or monthly.

Premium tax exemption in accordance with the tax laws applicable from time to time.

Tax exemption of benefits paid out to the insured.

A premium payment certificate is issued annually and can be attached to the tax

return.

Annual updates concerning the results of the Interest Benefit (I.B.).

2.8.7 Single premium life insurance

Single premium life insurance is a terrific way to guarantee your beneficiaries (be it family

members, friends or charity of your choice) your whole life insurance benefits. You start by

paying a one-time only premium of a sum at your discretion. This money is then invested,

either at the insurance company's discretion or, through a Variable Premium Life Insurance

policy, through your own, and should gain considerably by time of death. Both the amount of

money paid in the single premium and the amount of time the premium stays invested will

increase the death benefit. Another benefit of a single premium life insurance benefit is that

you can take out a portion of your premium as part of a loan to yourself, to be repaid at your

leisure. There is also no income tax on a single premium life insurance policy to either you or

your beneficiary. So although it might be, at first glance, one of the most expensive life

insurance options, it's also one of the most secure for you and your beneficiaries.

32

3.1 Company Organorgram:

3.2. Marketing & Agency Department

Chartered Life serves policy by its agents. In this process agents first find out a people who

have a probability to take policy and then try to convince him. If the person is satisfied then

agent gives him a policy form to make the policy.

Process of Formation of Life Insurance contract.

Offer of Proposal

Insurance company gives offer to a person with all information thats the need to know. If

anybody wants to create a policy collect a form of application as his wish and give a proposal

to the company to create a policy by this form.

Consideration of proposal

After this company consider this proposal. For this reason they collect some information to

justify the probability of risk of the proposal.

Collection of Medical Report

33

In this step company collects all kinds of information about the fitness of the person and

collect medical certificate and test report from him.

Collection of Agents Report

In this step company collects information from their company agent.

Collection of Extra Information

In this step the company collects more information if they need. They collect information

from the closer person of propose, from the personal doctor of propose and from other

trustable source.

Proof of Age

To consider the proposal company need to justify the age of the person. For this reason they

collect the birth certificate and other related documents of propose.

Selection of proposal

In this step company select the proposal by justifying all information like medical certificate,

birth certificate, agents reports etc.

Acceptance of offer

Marketing Network

Corporate

Assistant Agency Director (AAD)

Sales Manager

(SM)

Unit Manager

(UM)

Financial Associate

( FA)

Sales Manager

(SM)

Unit Manager

(UM)

Financial Associate

(FA)Local

Assistant Agency Director

(AAD)

Sales Manager

(SM)

Unit Manager

(UM)

Financial Associate

(FA)

34

In this step company accept the offer and announce the amount of premium to propose.

Insurance of policy

In this step company collect money from the person and give him the policy and the cover

note.

3.3. Underwriting Department:

Their risk management is a process of identifying, measuring, analyzing, monitoring and

controlling risks. In life insurance business the factors which may affect the risk are usually

those factors which are affecting the mortality; they are also called factors affecting longevity

of a person.

These factors are-

a) Age

b) Physical condition

c) Personal History- 1) Health record, 2) Past habit, 3) Previous occupation, 4) Insurance history.

d) Family History

e) Occupation

f) Residence

g) Present habits

h) Morals

i) Race and Nationality

j) Sex

k) Economic Status

l) Defense Service etc.

For this, they collect of above risks from various sources because it is not possible to

get all information from one source and this are:

a) The proposal form

b) Medical Examiners Report

35

c) Agents Report

d) The Inspection Report

e) Private Friends Reports

f) Attending physicians

g) Medical Information Bureau

h) Neighbors and Business Associates

i) Commercial Credit investigation Bureau etc.

After collect the risks the company confirm to the following principles in their risk

management practices and then accept the offer of proposal and announce the amount

of premium to propose.

a) To define risk profile on the basis of their risk tolerance.

b) To determine risks and analyze them from the beginning with the help of their risk strategy.

c) To comply with regulatory requirement and guidelines for risk management.

3.4 Actuary Department

Actuaries mathematically evaluate the probability of events and quantify the contingent

outcomes in order to minimize the impacts of financial losses associated with uncertain

undesirable events. Since many events, such as death, cannot be avoided, it is helpful to take

measures to minimize their financial impact when they occur. These risks can affect both

sides of the balance sheet, and require asset management, liability management, and

valuation skills. Analytical skills, business knowledge and understanding of human behavior

and the vagaries of information systems are required to design and manage programs that

control risk. Life, health, and pension actuaries deal with mortality risk, morbidity, and

consumer choice regarding the ongoing utilization of drugs and medical services risk, and

investment risk. Products prominent in their work include life

insurance, annuities, pensions, mortgage and credit insurance, short and long term disability,

and medical, dental, health savings accounts and long term care insurance. In addition to

these risks, social insurance programs are greatly influenced by public opinion, politics,

budget constraints, changing demographics and other factors such as medical

36

technology, inflation and cost of living considerations. Actuaries use skills primarily

in mathematics, particularly calculus-based probability and mathematical statistics, but

also economics, computer science, finance, and business to help businesses assess the risk of

certain events occurring and to formulate policies that minimize the cost of that risk. For this

reason, actuaries are essential to the insurance and reinsurance industry. On both the life and

casualty sides, the classical function of actuaries is to calculate premiums and reserves for

insurance policies covering various risks. Premiums are the amount of money the insurer

needs to collect from the policyholder in order to cover the expected losses, expenses, and a

provision for profit. Reserves are provisions for future liabilities and indicate how much

money should be set aside now to reasonably provide for future payouts. If you inspect the

balance sheet of an insurance company, you will find that the liability side consists mainly of

reserves. Actuaries also design and maintain products and systems. They are involved in

financial reporting of companies' assets and liabilities. They must communicate complex

concepts to clients who may not share their language or depth of knowledge. Actuaries work

under a strict code of ethics that covers their communications and work products, but their

clients may not adhere to those same standards when interpreting the data or using it within

different kinds of businesses.

3.5 Customer Service

The reputation and progress off the corporation largely depends on prompt and efficient

services rendered to the policyholders. Keeping this in view they have further strengthened

their servicing and computer departments for rendering quick services to policyholders and

marketing personnels. In order to give easy access to their products and to give best possible

services to the customers, the company offers personalized services by recruiting highly

experienced and customer focused professionals.

3.6 Human Resource Management Department

Sound and effective planning of human resources is the key of success in the implementation

of development projects in any sector. This is why the issue of human resource development

is taken up at national level. The dedication, skills and professionalism of the employees are

factors that contribute to the success of a company. But this company has no better human

37

resource development process. So in human resource management, the company should focus

on the following areas:

1. Continuous training and acquiring of new skills.

2. Empowering people and creating a congenial work environment.

3. Staff briefing.

4. Competitive compensation package.

5. High end-service benefits which include Gratuity, contributory provident fund, Benevolent fund etc.

6. Liberal bonus policy.

7. Encouraging innovation

8. Quality employees.

9. Equal opportunity.

Bonded by common goals, each of the employees will truly proud to be a member of

Chartered Life.

3.7 Information and communication Technology Department

Information technology explores the roles of information system, which defines systems

analysis and design and outlines the responsibilities of system analysis. It introduces system

concept and outlines categories of business information system. It appears a system

development, which provides the Information communication Technology (ICT) for the

purpose of global networks, Network Technology platform of Chartered Life has the

following key features:

Lightweight computer system

Web site

Contact Center

Data warehouse and

Simplified accounting system. Presently they are providing with information based service on

the following items:

System control/Development

- Software control

38

3.8 MY JOB RESPONSIBILITY

As an intern I was involved in different sort of activities of different departments. Especially

I was attached with the Marketing & Agency Department, Human Resource Department, and

Admin & General Service Department.

Short brief of those responsibilities of different departments are written below.

3.8.1 Responsibilities of Marketing & Agency Department

The key responsibility of mine was to monitoring the Sales Managers Activities

directly. Every day the Sales Managers from different area provide me information

about their daily achievements and targets that is their daily number new recruitments,

number of policy (ies), total amount of Premium at policy and their Collected

Premium. After getting that informations I had to prepare a daily monitoring report

which contain the information and also had to add the up to date number of new

recruitment of agents, up to date number of policy, up to date premium at policy and

up to date collected premium. After completing the report 4 copies of the report had

to shown to the Managing director, Advisor and 2 Assistant agency directors. At last I

had maintain the reports accordingly the date. Comparing the achievements and the

targets among different area are also part of my duty.

3.8.2 Responsibilities of Human Resource Department

Issuing appointment letters of the Unit Managers and Branch Mangers with company

provided conditions are one of the major responsibilities of mine. Creating and

maintaining an up to date report of those Unit managers basic information is also a

part of my duty. Maintaining Companys server database of the Unit Managers and

Financial Associates and giving them their own company code according to the

database input is my another key responsibility as because without those code number

Unit Managers or Financial Associates cannot start their business with the company.

Setting up a complete training program schedule for Unit Managers as well as officers

as well as preparing the slides of the training materials on behalf of the Advisor/

Trainer was another responsibility of mine.

39

3.8.3 Responsibilities of Admin & General Service Department

I had to maintain the requisition forms for Business card, leaflet, brochure, Calendar

and Stationary items. Issuing the business cards of the Officials, Unit Managers, Sales

Managers, Financial associates is also a part of my responsibility. To perform this job

I had to design a demo card for the officials for proof checking and after the proof

checking had to finalize the business card. I also prepared quotations for office

equipments like furniture, computers etc after comparing different companies.

I had also prepared a report on the corporate mobile package. The report was prepared

on the basis of the SWAT analyzing the packages provided by different operators.

My diversified responsibilities gave me the opportunity to lean out of the box, which

ultimately make me a good professional personality.

40

4.1 INTRODUCTION

This part of the report has analyzed and compared the human resource management practice

in insurance industry of Bangladesh and has considered a local and a foreign bank in this

regard. As a sample it has taken Chartered Life Insurance Company Limited which is a local

life insurance company and Metlife Alico a foreign life insurance of Bangladesh that is well

known in their respective field. From the analysis it has been found that though there are

some differences in HR practice but both of the companies are careful and concerned about

their employees and practicing a good HR system. In this report we have describe all the

factors of Chartered Life Insurance Company Ltd which has just started his journey in Life

Insurance market. It is a new local private company with lots of new ideas of insurance. On

the other hand MetLife Alico, has been helping people and businesses in Bangladesh with

their insurance needs since 1952. Throughout their history, they have continuously sought to

nurture talent, respect local cultures and promote the diversity that characterizes the

Bangladeshi society. They have grown by understanding the needs at the heart of the

community and by tailoring our extensive product offering to the unique needs of individuals,

families and businesses of all sizes.

Today, Metlife Alico is one of the leading insurance companies in the country, with close to

1,000,000 insured members and over 12,000 agents who understand this market better than

anyone else, so people can rest assured that nobody is better placed to find a solution which

fits their needs.

4.2 THEORETICAL BACKGROUND

Human Resource Management (HRM) is the term used to describe formal systems devised

for the management of people within an organization. The responsibilities of a human

resource manager fall into three major areas: staffing, employee compensation and benefits,

and defining/designing work. Essentially, the purpose of HRM is to maximize the

productivity of an organization by optimizing the effectiveness of its employees. This

mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of

change in the business world. As Edward L. Gubman observed in the Journal of Business

Strategy, "the basic mission of human resources will always be to acquire, develop, and

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retain talent; align the workforce with the business; and be an excellent contributor to the

business. Those three challenges will never change."

Until fairly recently, an organization's human resources department was often consigned to

lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish and

nourish what is often citedlegitimatelyas an organization's greatest resource, it's work

force. But in recent years recognition of the importance of human resources management to a

company's overall health has grown dramatically. This recognition of the importance of

HRM extends to small businesses, for while they do not generally have the same volume of

human resources requirements as do larger organizations, they too face personnel

management issues that can have a decisive impact on business health. As Irving Burstiner

commented in The Small Business Handbook, "Hiring the right peopleand training them

wellcan often mean the difference between scratching out the barest of livelihoods and

steady business growth. Personnel problems do not discriminate between small and big

business. You find them in all businesses, regardless of size." Dessler and Varkkey placed that

Human resource planning, recruitment, selection, training & development, compensation,

performance appraisal these are the major function of HRM. HR planning is the process of

identifying the position for which the organization needs employees and the process of filling

those positions.While Mary Parker Follett said that Human Resource Management is an art to

achieve organizational objectives through setting up the other people to carry out various jobs

as needed, or in other words do not do the work themselves.

Again Edwin B. Flippo said that Human Resource Management is the planning, organizing,

directing and monitoring the activities of procurement, development, compensation,

integration, maintenance and release of human resources in order to achieve various goals of

individuals, organization and communities.

Business consultants note that modern human resource management is guided by several

overriding principles. Perhaps the paramount principle is a simple recognition that human

resources are the most important assets of an organization; a business cannot be successful

without effectively managing this resource. Another important principle, articulated by

Michael Armstrong in his book A Handbook of Human Resource Management, is that

business success "is most likely to be achieved if the personnel policies and procedures of the

enterprise are closely linked with, and make a major contribution to, the achievement of

corporate objectives and strategic plans." A third guiding principle, similar in scope, holds

that it is the HR's responsibility to find, secure, guide, and develop employees whose talents

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and desires are compatible with the operating needs and future goals of the company. Other

HRM factors that shape corporate culturewhether by encouraging integration and

cooperation across the company, instituting quantitative performance measurements, or

taking some other actionare also commonly cited as key components in business success.

HRM, summarized Armstrong, "is a strategic approach to the acquisition, motivation,

development and management of the organization's human resources. It is devoted to shaping

an appropriate corporate culture, and introducing programs which reflect and support the core

values of the enterprise and ensure its success."

4.3 HUMAN RESOURCE MANAGEMENTKEY RESPONSIBILITIES

Human resource management is concerned with the development of both individuals and the

organization in which they operate. HRM, then, is engaged not only in securing and

developing the talents of individual workers, but also in implementing programs that enhance

communication and cooperation between those individual workers in order to nurture

organizational development.

The primary responsibilities associated with human resource management include: job

analysis and staffing, organization and utilization of work force, measurement and appraisal

of work force performance, implementation of reward systems for employees, professional

development of workers, and maintenance of work force.

Recruitment

refers to the process of attracting suitable candidates to apply for a vacancy arising within an

organization. When an organization needs individuals with certain skill sets, it taps the

market. It may require individuals to join the organization to supplement the existing skill or

complement the existing skills. In both the cases after careful job analysis and manpower

planning an organization develops a candidate profile. This comprises of the technical skills

sort and the attitude. Depending upon the status of the job market an organization deploys its

sources of recruitment(Company website, search agencies, head hunters, campus placement,

newspaper advertisement and others).The primary function of these sources is to identify the

right kind of people for the vacancy and motivate them to apply to the organization.

Recruitment is followed by selection . They are related but not the same though the term

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recruitment has a blanket usage for attracting, selecting and bringing people on board, which

is practically wrong. often with the help of other company areasthe nature and

responsibilities of various employment positions. This can encompass determination of the

skills and experiences necessary to adequately perform in a position, identification of job and

industry trends, and anticipation of future employment levels and skill requirements. "Job

analysis is the cornerstone of HRM practice because it provides valid information about jobs

that is used to hire and promote people, establish wages, determine training needs, and make

other important HRM decisions," stated Thomas S. Bateman and Carl P. Zeithaml in

Management: Function and Strategy. Staffing, meanwhile, is the actual process of managing

the flow of personnel into, within (through transfers and promotions), and out of an

organization. Once the recruiting part of

the staffing process has been completed, selection is accomplished through job postings,

interviews, reference checks, testing, and other tools.

Selection

Selection is the process of picking up individuals (out of the pool of job applicants) with

requisite qualifications and competence to fill jobs in the organization. A formal definition of

Selection is as under

Definition of Selection: Process of differentiating

Selection is the process of differentiating between applicants in order to identify and hire

those with a greater likelihood of success in a job.

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

Recruitment Selection

1. Recruitment refers to the process of

identifying and encouraging prospective

employees to apply for jobs.

2. Recruitment is said to be positive in its

approach as it seeks to attract as many

candidates as possible.

1. Selection is concerned with picking up

the right candidates from a pool of

applicants.

2. Selection on the other hand is negative in

its application in as much as it seeks to

eliminate as many unqualified applicants as

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possible in order to identify the right

candidates.

Performance appraisal

Performance appraisal is the practice of assessing employee job performance and providing

feedback to those employees about both positive and negative aspects of their performance.

Performance measurements are very important both for the organization and the individual,

for they are the primary data used in determining salary increases, promotions, and, in the

case of workers who perform unsatisfactorily, dismissal. It is a systematic evaluation of an

individual with respect to performance on the job and individuals potential for

development. Performance appraisal is a formal process of reviewing and assessing individual

and team performance Mondy et al,

It is formal, structured system of measuring, evaluating job related behaviors and outcomes

to discover reasons of performance and how to perform effectively in future so that

employee, organization and society all benefits.

Performance Appraisals is the assessment of individuals performance in a systematic way. It

is a developmental tool used for all round development of the employee and the organization.

The performance is measured against such factors as job knowledge, quality and quantity of

output, initiative, leadership abilities, supervision, dependability, co-operation, judgment,

versatility and health. Assessment should be confined to past as well as potential performance

also. The second definition is more focused on behaviors as a part of assessment because

behaviors do affect job results.

Reward systems

Reward Systems are typically managed by HR areas as well. This aspect of human resource

management is very important, for it is the mechanism by which organizations provide their

workers with rewards for past achievements and incentives for high performance in the

future. It is also the mechanism by which organizations address problems within their work

force, through institution of disciplinary measures. Aligning the work force with company

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goals, stated Gubman, "requires offering workers an employment relationship that motivates

them to take ownership of the business plan."

Employee development and training

is another vital responsibility of HR personnel. HR is responsible for researching an

organization's training needs, and for initiating and evaluating employee development

programs designed to address those needs. These training programs can range from

orientation programs, which are designed to acclimate new hires to the company, to

ambitious education programs intended to familiarize workers with a new software system.

Training refers to the planned effort by a company to facilitate employees learning of job related

competencies (Noe, 2011).

"After getting the right talent into the organization," wrote Gubman, "the second traditional

challenge to human resources is to align the workforce with the businessto constantly build

the capacity of the workforce to execute the business plan." This is done through

performance appraisals, training, and other activities. In the realm of performance appraisal,

HRM professionals must devise uniform appraisal standards, develop review techniques,

train managers to administer the appraisals, and then evaluate and follow

Documents

Internship Report on Chartered Life