Course : EM 549 Performance Appraisal & Compensation Management

Assignment on: Insurance policies- practices and alternatives

For the Concern of

Professor Mohammad Thoufiqul Islam, PhD

Department of Management

University of Dhaka

Prepared by:

Md Shafayat Ullah Bhuiya

Id # 3-15-31-053
Insurance is a great extend in employee motivation. In todays world most of us wants to rationalize our
risks & ensure our family or other members. From that thought insurance in corporate environment was
introduced. In current world we can see several employee insurance programs which actually motivate
employees & I believe – A motivated employee is like an excavator compared to a day labor as both can
perform the same task but excavator does it in more efficient & productive way. Insurance is a means of
protection from financial loss. It is a form of risk management primarily used to hedge against the risk of
a contingent, uncertain loss. An entity which provides insurance is known as an insurer, insurance
company, or insurance carrier. A person or entity who buys insurance is known as an insured or
policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the
insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to
financial terms, and must involve something in which the insured has an insurable interest established by
ownership, possession, or preexisting relationship. Now let’s discuss some of the world’s top employee
insurance programs

1. Back up care option program: Suppose you are under some kind of care (might be by your family
member or 3rd party service provider. Now Back up care option program offers dedicated
personnel for you 24/7. In developed nuclear working family members , we see such programs
popularity.
2. Health insurance policies: This is todays employee favorite insurance program as we know no
one can say when we might get sick & all of my savings might get sank in my wellness.
3. Accidental insurance coverage: Here if an employee dies in any accident , his or her family
member gets benefitted.
4. Dental Insurance: in many organization dental insurance offered. Under this employees of an
organization gets dental sickness security.
5. Life insurance policy: As per peoples uncertainty mitigation today many of the organization offers
a mandatory life insurance policy.
6. Social security & Medicare : Social security & Medicare is also an employee motivating factor.
7. Compensation insurance coverage: Insurance is to meet up uncertainty. In today’s corporate
world it’s not a unseen scenario that my todays boss loses his job at a day end all in a sudden.
To face & refight in life that employee needs this coverage.
8. Short term disability & long term disability: there are some professions where employee has life
risk or employee might face permanent or short time body loss or disability. To ensure &
motivate them organization introduces this policy.
9. Risk assurance policy: This is a new policy type. In todays banking industry we can see the
existence of such policy. Under this policy if an employee takes loan & dies , the insurance
company will pay the rest of the amount of loan & a minimum amount for the life of the
nominated persons.

List of insurance companies:

Here is the list of insurance companies in Bangladesh.

1. Jiban Bima Corporation

2. American Life Insurance Co.
3. Bangladesh Genaral Insurance Co. Ltd.
 4. Bangladesh National Insurance Co. Ltd
5. Central Insurance Co. Ltd.
6. Eastern Insurance Co. Ltd.
7. Eastland Insurance Co. Ltd.
8. Green Delta Insurance Company Limited
9. Federal Insurance Co. Ltd.
10. Janata Insurance Co. Ltd.
11. Karnaphuli Insurance Co. Ltd.
12. Mercantile Insurance Company Ltd.
13. Meghna Insurance Co. Ltd.
14. Northern General Insurance Co. Ltd.
15. Paramount Insurance Company Limited
16. People's Insurance Co. Ltd.
17. Phoenix Insurance Co. Ltd.
18. Pioneer Insurance Co. Ltd
19. Pragati Insurance Limited
20. Prime Insurance Company Ltd.
21. Provati Insurance Co.Ltd.
22. Delta Life Ins. Company Ltd.
23. Sunflower Life Ins. Company Ltd.
24. Sunlife Ins. Company Ltd.
25. Padma Life Ins. Company Ltd.
26. Golden Life Ins. Limited
27. Homeland Life Ins. Company Ltd.

Apart those in Bangladesh currently have total 76 (45 general and 31 life) members in insurance
association. And as an emerging economy & developing country this business is flourishing just as
expected. Insurance sector in Bangladesh emerged after independence with 2 nationalized insurance
companies- 1 Life & 1 General; and 1 foreign insurance company. In mid 80s, private sector insurance
companies started to enter in the industry and it got expanded. Now days, 62 active companies are
operating under Insurance Act 2010. Out of them 18 are Life Insurance Companies including 1 foreign
company and 1 is state-owned company, 44 General Insurance Companies including 1 state-owned
company. But as our people are still not that much connected in insurance programs they are yet to
serve us the best. But in recent future like developed nations if we can start health cards or health
insurance then undoubtedly this business can make its mark.

Services offered by insurance companies:

insurance companies generally provides below services

1. Life insurance
2. General Insurance-( Casualty insurance etc.)
3. Reinsurance
4. Micro-insurance
5. Takaful or Islami insurance
6. Property & liability insurance protection
7. Income protection insurance- To protect & ensure one from sudden income flow stop
8. Health Insurance- Health insurance policies cover the cost of medical treatments
9. Auto insurance- To assist on an auto assets protection
 10. Gap insurance- Gap insurance covers the excess amount on your auto loan in an instance where
your insurance company does not cover the entire loan
11. Others like Bloodstock ,defense, business interruption, livestock, pet, tax, travel are also served
all around the world

Finally insurance is a term known or practiced to minimize ones risk exposure & to help them grow.
Because its tough for one individual to fight against a calamity but if an insurance company helps that
company grow its possible for the organization to fight back. Meanwhile with the premiums the insurance
company can again invest & by which the economy gets flourishment.