Activities of Delta Life Insurance Company Limited

Internship Report
On
Overall Activities of Delta life Insurance
Company Limited
Submitted by
WWW.ASSIGNMENTPOINT.COM
The internship program is an integral part of the BBA program that all the students
www.AssignmentPoint.com
have to undergo of Northern University, Bangladesh. The students are sent to various
organizations where they are assigned to one or more projects. At the end of the
program, the internships are required to place the accomplishments and findings of
the project through the writing of the internship report covering the relevant topics.
During this program, Supervisor guides each student One from the university and
the other from the organization.
This report is the result of a 3 months (March 8-2009 to June 8- 2009) internship
program in Delta life Insurance limited, this report contains introduction about the
report in chapter one to chapter seven. The topic of the report has been consulted and
directed by the internship supervisor from Northern University, Bangladesh.
1.1
Objectives of the Report:
The main objectives of this report are:

To know the activities of ordinary life Insurance.
To know the activities of Gono-Grameen Bima
To know the activities of Grop &Health insurance.
To know the product offer by Delta life insurance company.
To learn the various types of Accounts of Delta life insurance company.
To learn the customers perception about insurance.
1.2
Methodology:
The report is prepared on the based of secondary data thought I also collect some
primary data from primary sources. Following ways I collect my data:
1) Secondary source and
2) Primary source
Secondary sources
Different manuals regarding policy issues published by Delta life.

Annual report of Delta life.
Files and Folders.
Memos and circulars.
Website.
Primary sources
Practical desk work
Face to face conversation with the officer.
Direct observations.
Face to face conversation with the client.
1.3 Scope of the study:

To fulfill the objectives of my study, the employees of Delta life Insurance Company
Ltd helped me a lot. People of each department have assisted me a lot by devoting
their time and showing their general and even confidential documents. Their
incredible support creates a great scope for me to prepare this report. This report will
provide at least a minimum understanding about the insurance business in
Bangladesh.
1.4
Rationale of the study:
We know that banks play an important role not only countries economy but also
contribute its overall economical development such as capital formation, investment,
industrialization, growth of trade and commerce. Thats why I have chosen the topic
which is overall Insurance activities of Delta which describes how Delta performs
to satisfy their customer. I think the topic help me to understand the how take risk
Insurance.
1.5
Limitations:
Insurance sector is very sensitive and competitive by its nature. So data of this report
is not available and the interviews might not disclose
accurate facts and figures
about Accounts and other activities. However I faced the following problems during
the study.
1
Insufficiency of valuable data and information.
Lack of proper books, journals etc.
Lack of experience.
Lack of time and resource.
Lack of perfect co-operation of some employees.
Chapter Two
Organizational Profile
Background of Delta life insurance:

Delta Life Insurance Co. Ltd. established mainly through the initiative of a group of
Bangladeshi professionals then working abroad along with a few enthusiastic local
entrepreneurs, started its operation in December, 1986 after the Government of
Bangladesh allowed the private sector to operate in the insurance sector in 1984 to
carry on the business of insurance in the Private Sector.
A brief explanation as to the growth of life insurance business in Bangladesh is in

order here. Bangladesh declared independence from the Pakistani rules on March 26,
1971 following which she had to witness a bloody liberation struggle with the
occupation forces lasting for 9 months before they were defeated. Insurance business
which was exclusively carried on in private sector before independence was
nationalized after liberation in 1972 primarily to address the emerging situation of
eroding public confidence in the industry that was left staggeringly short of resources
in the face of huge losses caused by the war of liberation. After a series of
experimentation, a state-owned body, namely Jiban Bima Corporation (JBC),
established in May, 1973 for transacting the life insurance business, took over the
assets and liabilities under life portfolios of all erstwhile private insurance companies
and started business in its own name.
However, things did not improve; rather, in many respects became more exacerbating
and the Government then thought it better to allow private sector participation in
insurance business. Since inception, Delta Life set before itself a high standard of all
round performance coextensive with professional soundness and proficiency. It soon
made a mark in the life insurance arena by not only being the leader among the
private sector indigenous companies, but by undertaking and successfully
implementing innovative and welfare oriented life insurance schemes. It introduced
an array of conventional life and group insurance products - many of which were the
first in Bangladesh.
For the first time, health insurance products were also introduced by Delta Life. But
more importantly, in fulfillment of the avowed commitment towards social
development, Delta Life for the first time not only in Bangladesh but probably in the
World, devised and introduced micro-life insurance-cum-savings products specially
suited to the needs and pockets of poor people of the country who constitute more
than 80% of the people of Bangladesh.
Two projects of the company namely Grameen Bima for the rural people and Gono
Bima for the poor and marginal savers of the urban areas were initiated to devote
themselves exclusively to marketing and management of these innovative products.

We are happy to report that we have achieved a good measure of success although
there is a long way to go. These schemes that we have introduced have created great
stir and enthusiasm among the general mass who, before these projects started
functioning, could not even dream of owning a policy that provides the much needed
life insurance coverage along with facility of regular savings on a long-term basis. At
a later stage i.e. in the year 2002, the projects were merged into a division of Delta
Life, namely, Gono-Grameen Bima Division. The GNGRB Division has been
growing at a first rate of more than 25% p.a. for the last couple of the years and is
poised to maintain this growth rate at least in the next five years or so.
Delta Life can take pride in moulding the saving habits of the lower and middle class
people and transforming them into prospective policyholders. The potential is now so
strongly perceived that all life insurance companies - old and new alike - operating in
the country have started own micro insurance products.
Background of the Delta Life Insurance Company Limited

At a glance
Facts and figures about Delta Life Insurance Company Ltd.
Year of establishment of the company
Founder Chairman and Managing Director
Present Chairman
Present Managing Director
Present Deputy Managing Director
First Policy Issued
Introduction of Grameen Bima
: 1986
: Late Shafat Ahmed Chowdhury
: Mr. Syed Moazzem Hussain
: Mr. Das Deba Prashad
: Mr. A B M Saiful Haque
: December 17, 1986
: December 1988
Introduction of Gono Bima

Delta BRAC Housing
Delta Care Hospitalization Plan (Group)
Introduction of Health Insurance
Merging of Gono and Grameen Bima
Establishment of Delta Insurance Institute
: October 08, 1993

: September 08, 1996
: October 19, 1996
: December 04, 1999
: January 04, 2003
: March 07, 2006
Delta Lifes Present Workforce*:

Head office and ordinary life
Gono-Grameen Bima
Development
Total
= 1200
= 2121
= 21679
= 25000
Division of Delta Life Insurance Co. Ltd.

Division
GonoGrameen
Ordinary Life
Insurance
Group &
Health
Insurance
Ordinary Life Insurance: Delta Life offers a wide variety of ordinary life
product/plans ranging from the most common endowment type to more modern and
sophisticated plans like endowment with open term, pension plan with built in
provision for increasing pension, increasing protection with provision for premium
refund etc. The plans have been designed keeping in view the diverse and
multifaceted needs of the insuring public belonging to different strata of the society.
Some of the popular plans are briefly described below.
Gono-Grameen Bima:
Delta Life first launched Micro-insurance product in 1988 through its Grameen Bima
Project (GRB) to cater to the necessity of economic protection against premature
death and of disability as well as providing a way for regular savings for the poor and
low income group of people living in villages. Later it started another project in 1994,
namely, Gono Bima (GNB) for the urban poor and the low income class. These
projects are now merged under the name of Gono-Grameen Bima Project (GN-GRB).
Group Life Insurance
Group Insurance is an instrument for providing life insurance coverage (protection) to
a number of individuals under a single contract (policy) who are associated together
for a common interest other than insurance. It is the most cost effective means to
provide immediate financial support to an insured member and/or his family in case
of devastating events like-death, disability, disease as well as retirement. Group
Insurance has already established its importance as a component of Employee
Benefit Package in Bangladesh
Health Insurance
Health Insurance is now considered indispensable in developed countries. In the
present finance social perspective of Bangladesh as well, Health Insurance has now
become an essential, dependable, acceptable and the most cost effective means to
make the modern treatment facilities affordable to all socio-economic classes of
people, especially the fixed income group.
As pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers
several Health Insurance schemes, which are as follows:
Goal of Delta Life Insurance Company Ltd:

o
o
Provide financial security to our customers with insurance policies that are
most suitable for them.
Make life insurance an easy saving instrument &A profitable one with
attractive bonus& improved customer service.
10
Collects small saving from the people of our country &invest the accumulated
saving in profitable nation building enterprises.
Vision of SIBL:
o We will be the premier life insurance company in Bangladesh.
o We will serve our customers with respect will provide the best solution for
their needs.
o We will be a company with qualified professionals who work together as a
team& serve with dignity &the highest level of integrity. We believe in
excellence &will continuously improve our customer service & will obtain
the loyalty customers with service beyond their expectation.
o Adding value will be the operative words of our organization.
Values-Truest
o Team work
o Respect for all People
o Unquestionable integrity
o Excellence in every thing we do
o Speed in servicing
o Truthful
Structure and Function of the Organization
Management Hierarchy
Sponsors and Director
11
Management Hierarchy:
Managing Director (M.D)
Additional Managing Director (A.M.D)
Executive Vice president (E.V.P)
Senior Vice president (S.V.P)
Vice president (V.P)
Senior Assistant Vice president (S.A.V.P)

Assistant Vice president (A.V.P)
Senior executive Officer
Executive Officer (E.O)
Board of Directors:
Chairman
Managing Director
Mr.Monzurur Rahman
Mr. Das Deba Prashad
12
Directors
Dr. Syed Mukarram Ali
Dr.Muhammad Raushan Ali
Mr.Mohd. Syedul Islam
Mr. Nurul Huda
Mrs. Fahmi R Naser
Mrs. Farida R. Ahmed
Mrs. Farida Mostafa
Dr. Nasiruddgn Ahmed
Dr. Sadiqur Rahman Malik
Mr. Mahmud Hasan
Mr. Habibur Rahman Khan
Mr. Borhanuddin Ahmed
Mr. Arif Ahmed
Mr. Md. Nurul Islam
Mr. Kazi Fazlur Rahman
Mr. Golam Sarwar
Ms.Adeeba Rahman
Mrs. Syeda Soyeli Ahmed
Mr. Syed Moazzem Hussain
Ms. Anika Rahman
Ms. Saika Rahman
Mr. Aziz Ahmed
Mr. Abdul Wahab
Dr. Kazi Aynul Hoque
Mr. Zeyad Rahman
Mr. Kazi Imran F. Rahman
Mr. Kazi Taufick F. Rahman
Mr. Md. Wahiduddin
Mr. S. M. Kamrul Haque
Mr. Abdul Quayum Khan
Mr. Syed Abu Saleh Md. Faisal
Mr. Kiron Moy Datta
Mr. M. Jashimuddin Chowdhury
Mr. Anwar Quayyaim
Mr. Md. Joynal Abedin
13
14
15
Chapter Three
Internship Duties & Responsibilities
16
Internship Duties and Responsibilities:

I have tried my level best to utilize the time. The time, which I spent to make the
report, are given below.
Head office and ordinary life Accounts
Gono-Grameen Bima Accounts
Internship Position and Duties:

I have joined in Delta life Insurance company Limited as an internee on 8 th March
2009. My internship period was three months (From8 th March to 8th june) and these
three months I worked in the corporate head office of the company which is located at
the motijheel.
In my internship period I tried to learn several functions from different departments of
the company. But as my major subject is finance so I gave much emphasizes on
learning Finance & Accounting related tasks. The Finance & Accounts department of
Delta life insurance company Limited is a wide area & the rage of the tasks is also
large .So it was not possible for me to practically learn all the tasks within the limited
internship program duration (Three months). However, below I mentioned my work
experiences.
I have stated my duty from Head office Accounts under Mr. Mustafa Jamal Hossain
ACA which is mainly the accounting section.
The functions I performed here ware-
17
Checking the cheque payment Vouchers. Then, writing those records

in a large cheque book and the deposited money in bank .After the end
of every month, I calculated the total cheque expenditures.
Preparing a summary sheet taking all the major categories of cheque
expenses.
Recording those cheque expenses data in computer using the
companys specific accounting software.
Preparing Bank Reconciliation Statement.
Checking the cash payment Vouchers.
Gradually I worked with the other personnel of Finance & Accounts department, and
underwriting personnel. Though I gave more concentration on finance & Accounting
related tasks but I had also great interest on the marketing department of the
company. The main reason behind this was, thought this report I tried my level best to
identify the satisfaction of the customers about the companys service. So I needed to
learn marketing strategies followed by the company, advertising procedures,
maintaining relation with clients etc. The other reason was I have found that the
marketing policy of an insurance company is totally different from the marketing
policy of other companies. And most of the customers do not know what types of
financial coverage they are taking. So, I felt very interest that how the company
handles these customers. All the marketing employees stay outside to meet with their
clients as well as to capture clients and it was not possible for me to do such types of
marketing task. However, I tried to know their marketing strategies from oral
discussion and meet with clients during personal interview.
18
Chapter 04
Overall Activities of Delta Life Insurance Company Ltd
We Know that Delta Life Insurance Company has three division. Now, we discus
19
Product of every division.
Ordinary Life Insurance: : Delta Life offers a wide variety of ordinary life
product/plans ranging from the most common endowment type to more modern and
sophisticated plans like endowment with open term, pension plan with built in
provision for increasing pension, increasing protection with provision for premium
refund etc. The plans have been designed keeping in view the diverse and
multifaceted needs of the insuring public belonging to different strata of the society.
Some of the popular plans are briefly described below.
I. Endowment plan with and without profits (Tables-01 & 41*)
the most common and widely popular, this plan provides for a fixed
sum at end of a particular term or at earlier death of the assured.
The plan is available under both options i.e. with profit (Table-01)
and without profit (Table-41). This is a straightforward coverage
allowing a person to plan his future needs for security and
projected savings through means of insurance eds. for security and
projected savings through means of insurance.
II. One-two-three endowment plan with profits (Table-02) provides for high
security at earlier death of the assured before expiry of term (10 & 20 years) or the
sum assured at expiry of the term. The plan provides for double the sum assured at
premature death due to illness or treble the sum assured if death occurs directly as the
result of an accident along with accrued bonuses till death or maturity as the case may
be.
III. Installment payment plans with or without profit:
a) Three payments plan (Tables-03, 43*) Given for terms like 12, 15, 18, 21 years
with or without profits this plan provides for one fourth of the sum assured upon
expiry of each one third of the term and on death at anytime within the term the full
sum assured - payment of one or all the installments notwithstanding. In case of
survival to the end of the term remaining portion of the sum assured along with
profits is paid after deducting the installments already paid.
20
b) Bi-annual payment plan (Tables-04 & 44*) - is given for 10, 15 & 20 years' term
and provides for payment of a portion of sum assured bi-annually after expiry of the
4th year of the policy, if the policyholder is then living.
IV. Premium back term Insurance plan without profits (Plan
Nos: Tables - 57A, 59A & 65A): These are comparatively low cost
plans. These plans provide for payment of sum assured in case of
premature death within the term or refund of all premiums paid at
end of term (Table-57A). Under Table-59(A), sum assured keeps on
increasing at 8% p.a. on each successive policy anniversary and
such increased sum is paid at death during the term. On survival
up to the end of term, all premium paid during the term is paid.
Under Table-65(A) a guaranteed profit equal to 10% of sum assured is paid
along with full premium at end of term as survival benefit. On death before
maturity, the sum assured is payable.
V. Pension Plan (Table-72A, 72D) without profits. Under plan (Table-72A) pensions
are provided at quarterly intervals from an age designated by the policyholder for life,
guaranteed for a minimum period of 10 years i.e. if the pensioner dies anytime within
10 years his designated nominee will get pension for remaining term of 10 years.
Before pension starts, if the assured policyholder dies, 10 times the annual pension is
paid as a lump-sum to his nominee and the policy is terminated upon such payment.
There is another plan (Table-72D) that while providing for full protection against
premature death as described above, provides for pension from a designated age as
elected by the policyholder at an increasing rate i.e. pension will increase @10% at
intervals of two years. Payment of pension is guaranteed for at least ten years and
thereafter as long as the pensioner lives.
Both these pension plans provide for waiver of premium in case of permanent and
total disability due to accident before commencement of pension.
VI. Child Educational Protection Plan (Table No. 06, 11, 75A) with profits:
Multiple benefits in the form of scholarship, monthly annuity etc. in addition to sum
assured is available under these plans. Under one plan (Table-11) sum assured or a
part thereof is also payable to the policyholder in case the child dies prematurely.
21
VII. Tri-dimensional Policy (Table No. 07): Built-in benefits for payment of 50%
sum assured immediately if critical illness is diagnosed. Premium and the sum
assured will thereafter be halved and the policy continues. Under this plan, a spouse
may also be covered for major disease benefits.
VIII. Moving Term Plan (Table No. 67): Policies under the plan are initially issued
and is to be taken for a minimum term (6 to 10 years) as elected by policy holder. Any
time within this minimum term if death occurs, full sum assured is payable. At the
expiry of the minimum term, the policy may be surrendered for full refund of
premiums paid. However, the policyholder need not terminate his policy at end of the
minimum specified period. The policy will automatically continue till age 65 years of
the policyholder unless he terminates it earlier. The survival benefit comprises of
refund of all premiums paid along with bonuses. In case of premature death the
nominee(s) is paid the sum assured plus all premiums paid till death, or all premiums
paid with profit accrued till death whichever is greater.
IX. Single Premium Multiple Security Plan (Table No. 14): It is
a single Premium Policy offering multiple security for five years
term. It covers natural death, permanent and partial/total disability
and seven major diseases. Premiums are based on the age of the
proposer. This plan perfectly suits the needs of the executive class.
Policy Conditions
Surrender Value:
After payment of two full years' premium, the policy acquires cash
surrender value which is quoted on request unless stated in the
policy itself.
Loan:
At anytime after a cash surrender value is available under the
policy and while the policy is in force, the policyholder may obtain,
subject to the company's existing rules, a loan on the policy up to
90% of the cash surrender value.
22
Age Proof:
Age of life assured as declared while applying for the policy has to
be authenticated with an age proof document acceptable to the
company. The company reserves the right to require proof of age of
the life assured before paying any claim under the policy if not
admitted earlier.
Settlement Option:
Payee may elect to receive the proceeds of the policy in
installments instead of in a single sum, in such a manner as may be
agreed upon with the company.
Suicide:
Should the life assured commit suicide, whether the assured be
then sane or insane, within two years from the commencement
date or from reinstatement of the policy, then the liability of the
company shall be limited to the refund of all premiums paid under
the policy less indebtedness, if any, at the time of such death.
Bonus: DLIC pays attractive bonuses to its with-profit policies. The present rate of
policy bonuses are as following:
a) A compound reversionary bonus @ 5% of paid up sum assured. This bonus is not
paid on the installments withdrawn (under Table-03, 04) from the date of such
withdrawal.
b) A simple reversionary bonus ranging from Tk. 10 to Tk. 15 per thousand sum
assured per year depending on term.
c) A terminal bonus equal to 10% to 12% of sum assured at maturity of policy
depending on terms if the policy would have been in force for at least 2/3rd of its
term.
Average Rate of Bonus
23
On the basis of the three types of bonuses the Company now pays to its with profit
policies, the average bonus earned by a Tk. 1,00,000 sum assured endowment policy
(except Table No. 03, 04) per thousand sum assured per year shall be as following:
Term
Policy
10 years
15 years
20 years
ofTotal
bonus
maturity
Tk. 52,000
Tk. 81,000
Tk. 1,15,000
atAverage
rate
per
thousand
per S.A. year

Tk. 52
Tk. 54
Tk. 58
A MOVEMENT FOR SOCIO-ECONOMIC SECURITY GONO-GRAMEEN

BIMA A NON-PROFIT INITIATIVE OF DELTA LIFE INSURANCE CO. LTD.
Delta Life first launched Micro-insurance product in 1988 through its Grameen Bima
Project (GRB) to cater to the necessity of economic protection against premature
death and of disability as well as providing a way for regular savings for the poor and
low income group of people living in villages. Later it started another project in 1994,
namely, Gono Bima (GNB) for the urban poor and the low income class. These
projects are now merged under the name of Gono-Grameen Bima Project (GN-GRB).
The initial problems apart, the project started to yield impressive results right from
the beginning by creating great interest among the target population who could not
even perceive an institutional arrangement through which the ever present problems
of insecurity of life could be addressed. To suit the needs and pockets of the target
people, and for efficient management of these portfolios, some of the age-old
traditional concepts of carrying on life insurance business had to be diluted and in
some cases replaced by simple and straightforward practices. Yet, the results are so
encouraging that Delta Life is now regarded far and wide as the undisputed leader
espousing the cause of welfare of teeming millions and its experiences are now used
24
to advantage not only by indigenous companies but also other micro-savings

organizations abroad.
Target group and the product
In GNB/GRB the formalities are minimum. Insurance cover is given under Group
Insurance concept. A person interested in a policy submits a simple two- page
proposal form; it is signed or thumb-imprinted by him/her. There is no need for
medical check-up. The person needs to be between 18 and 45 years of age, have a
monthly income of Taka 5,000/=(US $ 100.00) or less, be of good health and supply a
Declaration of Good Health (DGH) at the time of submitting the Proposal form.
Death through pregnancy complications within the first year of the policy and death
through suicide in the first year of the policy are not covered under an "exclusion
clause". Simple endowment with profit policies are offered for 10 and 15 years term
both with premium payment mode being weekly or monthly. Premium rate is the
same irrespective of age at entry. Besides this plan new plans like three-payment plan
with 12 and 15 years term and double protection endowment plan have recently been
introduced.
Upon acceptance of the proposal, a pass book is issued to the policyholder detailing
all terms and conditions of the policy. The pass book serves as the purpose of
recording of all payments made by him towards the policy. There is one group policy
document for the policyholders of each Thana or Block. For individual policyholders
the passbook serves as policy document.
Micro Investment (Loan) GN-GRB gives small project loans to its policyholders on
a group liability basis. No collateral is required. There is 20% service charge on the
loans, which is calculated at a flat rate and added to the principal amount. The loan,
together with the service charge, is repayable in 12 equal monthly installments. The
repayments are collected from door to door by the organizers. Recently a decision has
been taken to establish small collection booths in the villages. A person must be a
policyholder and pay premiums for at least one year before being eligible for a loan.
The maximum loan given is Taka 5,000/=(US$ 100.00) per policyholder. The loans
are for income generating activities (IGA) only. Policyholders form a committee of 5
to 7 members. 3 policyholders selected by the committee are given the first loan.
25
After recovery of 3 installments from each of the first three borrowers, the next 3 are
given their loans and so on. As a general rule, 60% of the premium income of an area
and 40% of the repaid loan of an area are available for loan in that area. Also 100% of
premium collection of a committee is available for loan to that committee.
Group Life Insurance
Group Insurance is an instrument for providing life insurance coverage (protection) to
a number of individuals under a single contract (policy) who are associated together
for a common interest other than insurance. It is the most cost effective means to
provide immediate financial support to an insured member and/or his family in case
of devastating events like-death, disability, disease as well as retirement. Group
Insurance has already established its importance as a component of Employee
Benefit Package in Bangladesh
Health Insurance
Health Insurance is now considered indispensable in developed countries. In the
present financio-social perspective of Bangladesh as well, Health Insurance has now
become an essential, dependable, acceptable and the most cost effective means to
make the modern treatment facilities affordable to all socio-economic classes of
people especially the fixed
income
As pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers

several Health Insurance schemes, which are as follows:
Hospitalization (In-patient) treatment coverage plans
o Hospitalization Insurance Plan (Group)- offered to Members of a group and their
dependants (if desired)
o Hospitalization Insurance Plan (Individual) offered to an Individual and/ or
his/her dependant family members also known as Delta Care Hospitalization
Plan.
26
Subdivision of every Division Delta Life Company Limited

Division
Developm
ent and
servicing
Loa
n
HRD
Collectio
ns
Clams
Operatio
n
Zone
operation
Accoun
ts
Control
&Complia
nce
Establishment
27
Underwrit
ing
Collectio
ns
Establishme
nt
Accounts,
Bank
Reconciliati
on
&Data
processing
Underwriting
Operation of Zone Centre:

Zone operation
Centre
28
Operation
Department
Collection
Section
Accounts
Section
Development
Department
Underwritin
g Section
Control &
Compliance
Establishme
nt Section
IT Section
Servicin
g
Zone operation center are three divided there activities

1. Operation Department
2. Development Department
3. Control & Compliance.
Now we discuss about operation department:
Operation Department are divided in six part,
1. Collection Section.
2. Accounts Section.
3. Underwriting Section.
4. Establishment Section.
5. I.T Section
6. Servicing.
** Collection Section: At first in this section collect weekly closing & Bank
statement, Loan receipt from zoc & manual checking entry into premium register
book than send to I.T.
Second function of the collection section they collect proposal form from zoc
29
& send to the U/W section. They also monitoring perceive & distribution & receiving
muribooks & provide report to head office.
** Accounts Section: Zone operation centers accounts section are provide

field staff & Zoc field staff & Zoc staff salary& pay all units & Zoc office expenses.
They also send fund requisition to center Accounts the maintenance of petty cash
book & all books Accounts. They pay all types of claims &preserving record in
computer & Maturity & Provide report to the Head office.
**I.T. Section: Main function of I.T Section is entry of PR, M.R & PIS.
They prepare monthly salary sheet& hand over to Zoc accounts. They also check all
sorts of claims before printing by servicing. They can easily transfer to central server.
I.T. Section provides report to the Head office.
**Underwriting Section: It is the most Importance section of insurance

policy. In this section receive proposal from the collection section& they issue policy
number& stamp denomination. They are also entry policy summery. They are
handover P F to servicing for long time preservation. They are maintaining policy
register. They also handover pass book to unit office& provide report to the head
office.
**Establishment Section: In this section maintain all type fixed assets

such as chare, table computer etc. they also maintain office rent register. In this
section preserve contract deed ensure office &office security system for Zoc. They
prepare office rent bill check & sent to Zoc. In this section share all types of
information among units Zoc & Head office.
**Servicing: Servicing section is the most importance section of insurance.

They present Maturity; Death & Surrender claim to head office. They also approve
survival benefit &prepare executive receipt. Servicing section does all servicing
related works & preserves the records. It is also store house. They also prepare report
30
to the head office.
Analysis of delta life Insurance Company Limited
31
Financial Performance on division wise:

Ordinary Life:
year
Premium
2004
125.45
2003
110
Valued policies numbered 2,57,625. 14.05% increase in gross premium to TK.125.45

core in 2004 from TK.110 core in 2003.
Gono-Grameen Bima:
year
premium
2004
76.26
2003
61.55
Valued policies numbered 8,71,685. 23.90% increase in gross premium to TK. 76.26
core in 2004 from TK.61.55corein 2003.
Health Insurance:
Total lives insured 20,663. 17.68% increase in gross premium to TK.2.33 core
in 2004 from TK.1. 98 core in 2003.
year
2004
2003
premium
2.33
1.98
Group Insurance:
year
premium
2004
6.21
2003
6.04
Total lives insured 93,453. 2.81% increase in gross premium to TK.6.21 core in 2004
from TK. 6.04 core in 2003.
32
Business growth of Delta life insurance company:
2004
2003
2002
2001
2000
Premium (in%)
17.09
19.04
13.25
10.77
7.39
Assets (in%)
23.11
23.85
23.83
25.12
24.13
Life Fund (in%)
25.80
24.60
26.73
28.36
29.45
Interpretation:
From the above chart we can easily observe that Premium increase 7.39 % to 17.09
from year 2000 to 2004. it growth is 131% compare to its starting year or year 2000.
This chart also shows that premium was also low in year 2004 than year 2003 by
around 2.07%.this chart show that premium was incerase5.79% compare to 2002 to
2003 & this also show that premium was in increase 2.48% again we seen that
premium increase3.38%
33
Above this information we can say that, Gross insurance premium earned was TK.
210.25 crore an increase of 17.09%over insurance premium earned in 2003.The Life
Fund increased to TK.680.83 crore in 2004 from TK.541.22 crore in 2003, an
insurance of 25.80%. Growth of business is satisfactory and the financial health of the
Company is very sound.
Chapter-05
34
Learning Points& findings of the study
I have designed this chapter with two parts. In the first part, I have mentioned
what I have learned from different departments of the organization. And in the
second part, I Attempt to demonstrate whatever, I have found out thought my
study.
35
Internship Learning Points

During my training period in Delta Life Insurance Company Ltd, I tried my
level best to enrich my knowledge by gathering as much as information and
practically doing the office works of different departments. Among four
departments of the organization, I gave more emphasize on the activities of
finance & Accounts departments are given in the following sections:
Learning from the Finance &Accounts Department

My major leanings come from this department. The work range of this
department is very wide. So it was not possible for me to practically learn all the
functions. However, my main learning functions are:
How to check the cash &cheque vouchers.
How to record the voucher.
How to prepare a summary sheet of expenditures.
How to prepare a bank reconciliation statement.
Learning from Underwriting department

My learning period from this department was not long but in the mean time I
learned the most important matter of this department like the procedure to
calculate the insurance premium. From my understanding I am trying to give
here an example:
To calculate the amount of premium, the process and methods are

predetermined by the government. For giving coverage of each type of insurance
scheme certain amount of money is encoded. For example, in case of fire policy
1855 is given by the clients to the insurance company. Then the charge is
calculated on the insured amount for each type of risk @2.8%. Finally insurance
stamp and vat in added to determine the total amount of premium. Suppose the
36
sum insured amount is19000. So the amount of premium will be:
Amount of Premium=1855+(19000*2.8%)+vat+stamp.
Learning from claim and Reinsurance Department
Though I gave very few times in this department but with the help of this
departments personnel I learned two important issues:
Calculating the proportion of reinsurance
Calculating the amount of actual claim
From my understanding I am trying to give here two examples of those:
Calculation of Reinsurance
For example, a company sells an insurance policy in exchange for a premium of
TK.10000. Now the company has to reinsurance it to Sadhran Bima
Corporation. The company is able to bear loss up to TK4000. Sothe remaining
6000 is reinsured to Sadharan Bima Corporaton. In this regard now the
company is the client and Sadharan Bima Corporation is the insurance
company. So the company has to pay premium to sadhran Bima Corporation
based on the following ratio:
4000/10000=40%
6000/10000=60%
When any claim will be occurred, the company will bear loss up to 40% and the
remaining 60%will be given by the sadharan Bima Corporation.
2. Calculation of Claim
for Example, a cargo consisting of 10000 bags is insured for TK. 200000(20per
Bag). But 4000 bags were damaged and would realize TK.4per bag. The market
value of per bag is TK 18 in undamaged condition. So the amount of actual claim
will be:
37
Insured value of 10000 bags @ TK. 20
2,00,000
Insured value of 4000 bags @ TK. 20
80,000
Market value of 4000 bags in undamaged condition @

TK. 18
72,000
Sales value of 4,000 bags in damaged condition @ TK

4
16,000
The amount of Loss
56,000
Value of damaged goods = 56,000/72,000*80,000
62,222
Add:
Commission
Survey Fee
Others
Actual amount of insurance Claim
62,222
Although as a finance major student I started my internship duties from

Finance & Accounts Department and tried to move to the other departments but
to fulfill the purpose of my internship report I had to gave emphasize on the
Marketing Department also as my reports finding is covering the general
38
Insurance and Customers Perception A Study on Delta Life Insurance

Company Ltd. So I have conduct a survey with the help of marketing
department in order to find out the customers view on the company and in the
following part I tried to demonstrate whatever I have found out.
Findings of the study
Chapter Six
39
Conclusion & Recommendation
40
Conclusion:
After an extensive observation of all the information, I have arrived in
conclusion, it can be said that in modern Insurance business Delta life
insurance Company Limited is a well-known name.
Delta life insurance Company Limited is a new generation Insurance. It is committed
to provide high quality financial services/products to contribute to the growth of GDP
of the country through stimulating trade and commerce,
creating employment
opportunity for the educated youth, poverty alleviation, raising standard of living of
limited income group and overall sustainable socio-economic development of the
country.
Through it is a first Insurance, Delta makes a strong position through its varies
activities. Its number of clients, investment money increases day by day. This
Insurance already has shown impressive performance in investment.
Consumer are more or less satisfied with the present services of the Insurance now
should think to start new services and take different types of marketing strategy to get
more customers in this competition market of Insurance.
During three months internship period I have tried to enrich my knowledge as much
as possible which would necessarily beneficial to develop my career positively.
At last it can be said that, Delta life Insurance is growing fast and its contribution in
our economy is also considerable. I hope that Delta will wide its services by
expanding its branch allover the country.
Recommendation:
As per earnest observation some recommendation for the improvement of the
41
overall situation of Delta Life Insurance are given below:

1. Delta life should introduced more innovative and modern customer service.
2. Advertising and promotional activity should increased.
3. The Insurance should consider the system of introducer and other lengthy
procedure of opening and maintaining accounts.
4. Delta life should increased computer at every table.
5. Delta life should hired adequate employees so that they can easily perform
office works.
6. Delta life should employee movement from one department to another
department for their increase of skill.
7. Delta life should increased branch at various suitable places and every district
level.
8. The Insurance should ensure fare and quality recruitment process as well as
proper training facilities for its recruited and existing employees; this will
work in multiple ways to promote the overall performance of the Insurance.
9. As the way of promotion the Insurance Company may carryout various social
welfare activities through Delta life foundation.
10. Long-term or yearly training very much required for the employees.
42

Activities of Delta Life Insurance Company Limited

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Activities of Delta Life Insurance Company Limited

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Internship Report

Objectives of the Report:

The main objectives of this report are:

Different manuals regarding policy issues published by Delta life.

1.3 Scope of the study:

Rationale of the study:

accurate facts and figures

Insufficiency of valuable data and information.

Lack of proper books, journals etc.

Lack of time and resource.

Lack of perfect co-operation of some employees.

Background of Delta life insurance:

A brief explanation as to the growth of life insurance business in Bangladesh is in

themselves exclusively to marketing and management of these innovative products.

Background of the Delta Life Insurance Company Limited

Introduction of Gono Bima

: October 08, 1993

Delta Lifes Present Workforce*:

Division of Delta Life Insurance Co. Ltd.

Goal of Delta Life Insurance Company Ltd:

Structure and Function of the Organization

Senior Assistant Vice president (S.A.V.P)

Mr. Das Deba Prashad

Internship Duties & Responsibilities

Internship Duties and Responsibilities:

Internship Position and Duties:

The functions I performed here ware-

Checking the cheque payment Vouchers. Then, writing those records

Overall Activities of Delta Life Insurance Company Ltd

Product of every division.

per S.A. year

A MOVEMENT FOR SOCIO-ECONOMIC SECURITY GONO-GRAMEEN

to advantage not only by indigenous companies but also other micro-savings

As pioneer of Health Insurance in Bangladesh, Delta Life Insurance Company offers

Subdivision of every Division Delta Life Company Limited

Operation of Zone Centre:

Zone operation center are three divided there activities

** Accounts Section: Zone operation centers accounts section are provide

**Underwriting Section: It is the most Importance section of insurance

**Establishment Section: In this section maintain all type fixed assets

**Servicing: Servicing section is the most importance section of insurance.

to the head office.

Analysis of delta life Insurance Company Limited

Financial Performance on division wise:

Valued policies numbered 2,57,625. 14.05% increase in gross premium to TK.125.45

Business growth of Delta life insurance company:

Life Fund (in%)

Learning Points& findings of the study

Internship Learning Points

Learning from the Finance &Accounts Department

How to check the cash &cheque vouchers.

How to record the voucher.

How to prepare a summary sheet of expenditures.

How to prepare a bank reconciliation statement.

Learning from Underwriting department

To calculate the amount of premium, the process and methods are

sum insured amount is19000. So the amount of premium will be:

Calculating the proportion of reinsurance

Calculating the amount of actual claim

From my understanding I am trying to give here two examples of those:

Insured value of 10000 bags @ TK. 20

Insured value of 4000 bags @ TK. 20

Market value of 4000 bags in undamaged condition @

Sales value of 4,000 bags in damaged condition @ TK