The Roles Played by The Insurance for Our Economy
Insurance is a written contract, taken with the insuring company that transfers the risk of loss to the insurer according to the terms of the contract. However, not all risks are insurable. If an insurance company would have difficulty calculating the likelihood that a loss would occur because of some risk, it is reluctant to insure against that risk. Risks of this type are generally called un insurable risks.
TYPES OF INSURANCE
• Home insurance
• Insurance financing vehicles
INSURANCE FEATURES IN BANGLADESH
The insurance is a contract whereby the insurer will pay the insured (the person whom benefits would be paid to, or on the behalf of), if certain defined events occur. Subject to the “fortuity principle”, the event must be uncertain. The uncertainty can be either as to when the event will happen (i.e. in a life insurance policy, the time of the insured’s death is uncertain) or as to if it will happen at all (i.e. a fire insurance policy).
• Insurance policies are sold without the policyholder even observing a copy of the contract.
• The amounts exchanged by the insured and insurer are unequal and depend upon uncertain future events.
• The insured is not required to pay the premiums, but the insurer is required to pay the benefits under the contract if the insured has paid the premiums and met certain other basic provisions.
• Insurance are also governed by the principle of utmost good faith which requires both parties of the insurance contact to deal in good faith and in particular it imparts on the insured a duty to disclose all material facts which relate to the risk to be covered.
THE INSURANCE CORPORATIONS ACT 1973
The Insurance Corporations Act 1973 was amended in 1984 to permit insurance companies in the private sector to operate side by side with Sadharan Bima Corporation and Jiban Bima Corporation. The Insurance Corporations Amendment Act 1984 permitted floating of insurance companies, both life and general, in the private sector subject to certain limitations regarding business operations and reinsurance. The Act of 1984 made it a requirement for the private sector insurance companies to obtain 100% reinsurance protection from the Sadharan Bima Corporation.
The confinement regarding business placement affected the interests of the private insurance companies in many ways. The confinements were considered not congenial to the development of private sector business in insurance.
According to the fresh rules the capital and deposit requirements for formation of an insurance company are as goes after:
For life insurance Company – Tk 75 million, of which 40% shall be subscribed by the sponsors.
For mutual life insurance company – Tk Ten million.
For general insurance company – Tk 150 million, of which 40% shall be subscribed by the sponsors.
For cooperative insurance society – Tk Ten million for life and Tk 20 million for general.
Deposit requirements (in cash or in approved securities):
For life insurance – Tk Four million
For fire insurance – Tk Trio million
For marine insurance – Tk Trio million
For miscellaneous insurance – Tk Trio million
For mutual insurance Company – Tk 1.Four million
For cooperative insurance – Tk 1.Four million
For general insurance – Tk 1 million for each class
Numerous institutions, associations and professional groups work to promote the development of insurance business in Bangladesh. Prominent among them are the Bangladesh Insurance Association and Bangladesh insurance academy.
Considerable attention has been faithful to evaluating the relationship inbetween economic growth and financial market deepening. Most of what we have learned relates to banking systems and securities markets – with insurance receiving only a passing mention. Yet, while insurance, banking, and securities markets are closely related, insurance fulfills somewhat different economic functions than do other financial services, and in turn requires particular conditions to flourish and to make a utter economic contribution.
Fortunately, in the past few years, several interesting lines of research have begun to map the specific contributions of insurance to the economic growth process as well as
to the well-being of the poor. The evidence suggests that insurance contributes materially to economic growth by improving the investment climate and promoting a more efficient mix of activities than would be undertaken in the absence of risk management instruments. This contribution is magnified by the complementary development of banking and other financial systems. Empirical studies suggest that non life insurance contributes to growth in countries at many different levels of development. Life insurance makes a substantial contribution to growth mostly in wealthier countries, since life insurance is typically a smaller part of the total insurance market in low income countries. The relationship inbetween per capita income levels and insurance invasion is also strong in the switch roles direction – with rising income a strong driver of life insurance coverage. However, it is difficult to disentangle whether lower insurance consumption at lower income levels reflects diminished request for life insurance products or constraints on the supply side associated with feeble regulatory and supervisory environments and high costs of insurance provision. Of course, even if the data did not support a strong causal role for insurance as an engine of overall aggregate growth, there might be a strong case for insuring the poor on social welfare grounds that those at or below the poverty line are particularly vulnerable to catastrophic shocks to income and consumption. And indeed, it shows up that the gap inbetween the potential social value of insurance and the transactions costs of provision might be unusually broad for the poorest segment of society, which explains the growing interest in micro insurance on the part of non governmental organizations and philanthropic foundations, some of whom are partnering with commercial providers. Contributions of Insurance to Growth and Development Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. In order to highlight specifically the unique attributes of insurance, it is worth focusing on those services that are not provided by other financial services providers, excluding for example the contractual savings features of entire or universal life products. The indemnification and risk pooling properties of insurance facilitate commercial transactions and the provision of credit by mitigating losses as well as the measurement and management of non verifiable risk more generally. Typically insurance contracts involve petite periodic payments in come back for protection against uncertain, but potentially severe losses. Among other things, this income smoothing effect helps to avoid excessive and costly bankruptcies and facilitates lending to businesses. Most fundamentally, the availability of insurance enables risk adverse individuals and entrepreneurs to undertake higher risk, higher comeback activities than they would do in the absence of insurance, promoting higher productivity and growth.
The management of risk is a fundamental aspect of entrepreneurial activity. Entrepreneurs manage the risk of accidental loss by weighing the costs and benefits of each alternative. In a structured risk management process, this involves:
1. Evaluating alternative technics for treating each loss exposure;
Two. Treating each loss exposure;
Trio. Choosing the best alternative; and
Four. Monitoring the results to refine the choices.
In most cases, insurers need to form partnerships with governments, communities and non-governmental organizations (NGOs). NGOs may be able to identify opportunities and support initial research and community organizations may be able to provide a low cost means of distribution. But it also requires a shift in thinking. NGOs will need to understand that the primary motivation for commercial engagement is profit, and insurers will need to understand that, for NGOs it is about development.
Developed countries have stronger rule of law, so insurance companies have to pay on claims. In developing countries with their weaker law enforcement, an insurance company can reject to pay and bribe the judge if the customer goes to court. Or the owners of the company can close it and run off with the money. We can say that Insurance must be developing our country and our economy.
Causes of poor Industrial Relations in Bangladesh?
Government act in support of globalization has to rely on policy planning and delivery services provided by the public sector. This sector has to be restructured to meet the requests of, or overcome problems arising from, globalization (eg, requests from MNC’s and domestic firms for less “crimson gauze”; and the problem of enterprises having to rely on inefficient public enterprises for provision of basic services). In this regard, Ministries of Labour often have a narrow and reactive role. Given the importance of industrial relations to economic development, they should be working more actively with planning and finance Ministries to generate development options, create more coherent and coordinated strategies and, generally, improve public sector efficiency. There is also a need for governments to include trade unions in any public sector reform process and take account of their major concerns..
Eventually, governments should proceed to promote bipartite and tripartite institutions and processes to establish adequate labour policy and standards. Inputs from all relevant parties should be considered. Not only will this limit potential conflict in the future, but (particularly where major business and investment interests – including those of MNC’s – are involved) it should establish a sound basis for investment and economic and employment growth.
What countries have very industrialized economies?
Australia, Austria, Canada, France, Germany, Italy, Japan, Russia, the UK, and the USlook… and you might find more
The role of petite scale industries in Nigeria economy?
Puny & Medium Scale Enterprises and Funding in Nigeria (Posted 25th Aug, 2003) NIGERIAN ECONOMY DEPENDS ON THE RECOGNITION OF SMEsHistoricalfacts demonstrate that prior to the late 19th century, cottage industries, mostly petite and medium scale businesses managed the economy of Europe. The industrial revolution switched the status quo and introduced mass production. The twin oil shocks during the 1970s undermined the mass production model, which triggered an unexpected reappraisal of the role and importance of puny and medium sized enterprises in the global economy. Findings by economists over the years demonstrate that petite firms and entrepreneurships play a much more significant role in economic growth and development. Importance of SMEsMany economies, developed and developing have come to realise the value of petite businesses. They are seen to be characterised by dynamism, witty innovations, efficiency, and their puny size permits for quicker decision-making process. Governments all over the world have realised the importance of this category of companies and have formulated comprehensive public policies to encourage, support and fund the establishment of SME’s. Developments in petite and medium enterprise are a sin quo non for employment generation, solid entrepreneurial base and encouragement for the use of local raw materials and technology. Providing insight into the SME phenomenon, a paper delivered at a forum by Mallam Mohammed Hayatu Deen, titled “Stakeholders Roles and the Development Benefits in a Virile Puny Enterprise Sector”, pointed out that petite business operations are propelled by the dynamic theory, which makes them efficient and prone to constant switch. He gave a comparative statistic using 9 developed countries on how SMEs create employment, increase job growth, induce switch, innovation and competition. Benefits of the SMEThe benefits of SME’s to any economy are lightly noticeable, they include: contribution to the economy in terms of output of goods and services; creation of jobs at relatively low capital cost, especially in the prompt growing service sector; provide a vehicle for reducing income disparities; develop a pool of skilled and semi-skilled workers as a basis for the future industrial expansion; improve forward and backward linkages inbetween economically, socially and geographically diverse sectors of the economy; provide opportunities for developing and adapting adequate technological approaches; suggest an excellent breeding ground for entrepreneurial and managerial talent, the critical shortage of which is often a good handicap to economic development, among others. Challenges faced by SME s in NigeriaThe challenges facing SME’s in many developing countries are monumental. The most worrying among these challenges is funding. Most fresh petite business enterprises are not very attractive prospects for banks, as they want to minimise their risk profile. In Nigeria, the situation is not very different, until recently when the Banker’s Committee intervened in 2001 with a scheme themed the Petite and Medium Industries Equity Investment Scheme (SMIEIS). The scheme relegated to the background government credit schemes that are not well thought-out and implemented. The SMIEIS SchemeThe Banker’s Committee is a figure constituted by representatives of banks in Nigeria. The scheme was approved at their 246th meeting on December 21, 1999. According to them, this was a response to President Obasanjo’s concern and policy measures for the promotion of puny and medium industries (SMI) as a vehicle for rapid industrialisation, sustainable economic development, poverty alleviation and employment generation. The scheme requires all banks in Nigeria to set aside 10% of their profit before tax (PBT) for equity investment in petite and medium scale industries. The scheme commenced on June 19th 2001. The scheme aims among other things to assist the establishment of fresh, viable SMI projects, thereby stimulating economic growth, development of local technology, promote indigenous entrepreneurship and generate employment. The funds will be available for projects in the real sector of the economy which include: agro-allied, information technology and telecommunication, manufacturing, educational establishments, services (directly related to production in the real sector or to enhance production), tourism and leisure, solid minerals, construction, and any other activity as may be determined from time to time by the Bankers Committee. To qualify for the scheme, an enterprise, in addition to being engaged in any of the activities listed above, must have a maximum asset base of N200 million excluding land and working capital; with the number of staff employed by the enterprise not less than Ten and not more than 300. The enterprise must be registered as a limited liability company with the Corporate Affairs Commission and serve with all relevant regulations of the Companies and Allied Matters Act (1990) such as filing of annual comebacks including audited financial statement. Serve with all applicable tax laws and regulations and render regular comebacks to the adequate authorities. Timing of investment exit shall be a minimum of Trio years. There are Four categories of stakeholders in the SMIEIS scheme, the Government, Central Bank of Nigeria (CBN), Bankers Committee and the individual banks, each playing a unique role to ensure the success of the scheme. Available data as at February 2003 indicate that 80 banks have set aside N13.07 billion with 28 banks investing around N2.87 billion based on 67 investments in 47 enterprises. Alternative Sources of FundingFor puny businesses shopping for funding can be fairly a Herculean practice. But, latest development like the SMIEIS and some other funding sources are now open. One of such is the independent fund manager called the SME Manager Limited (SML), which is an investment advisory company established by African Capital Alliance (ACA) to promote SME sector-led investments in Nigeria by making equity investments in Nigerian SMEs. Also, available are: the Bank of Industry, the Fresh Partnership for African Development (NEPAD) initiative and the African Growth and Chance Act, AGOA, of the United States. Way Forward and ConclusionMuch is expected from the government to provide basic social and infrastructural facilities to assist puny businesses. Nigeria s economic terrain is very constraining with the concentrate being concentrated on the big firms which are permanently down-sizing. Business people that fall in the SME category have frequently accused the banks of providing funding to only their cronies and favoured companies. But the banks have denied such allegations telling that many of the SMEs cannot meet up with banks requirements. With services sector having 73.1% investments in number and 64.6% of value and Lagos-based investments accruing 86.6% of total number and 87.7% of value, the banks are advised to spread their funds broader. Also, the CBN should monitor closely some of the defaulting participating banks in the SMIEIS scheme. On the part of government, policies that promote inward induced investment should be encouraged far and aboveThis article may be outdated following the current development in Nigeria used as context. Tho’ useful, am still working on the supplementaary current roles of SMS in Nigeria Economy. Thanks.
The roles of insurance in the development of Nigeria economy?
The role of insurance companies in Nigeria can never be over emphasized, it is the pole of every successful business. The insurance companies have given Nigerians the faith to invest in business without fear of losing out. Most financial institution may not want to loan to individuals without them endorsing an insurance policy. The advent of insurance companies in Nigeria has greatly improved the development of the country in the area of finance, individual business and public welfare.
What is the role of insurance in an economy?
The role of insurance in an economy is to compensate people fromlosses. People who have insurance covers would not be coerced tostart from scrape as they are compensated in the event of acalamity.
How do typhoons effect the economy of Bangladesh?
Typhoons affect the economy as they may lightly demolish commercialbuildings which lead to incredible losses. Typhoons also make itdifficult for investors to commit their money knowing they may endup losing it to such disasters.
What industries drive the Irish economy?
steel, lead, zinc, silver, aluminum, barite, and gypsum mining processing; food products, brewing, textiles, clothing; chemicals, pharmaceuticals; machinery, rail transportation equipment; glass and crystal; software, tourismsource: https://www.cia.gov/library/publications/the-world-factbook/geos/ei.html
What industries drive the economy in Spain?
Spain has one of the strongest economies via the world. Theindustries that drive Spain’s economy include steel manufacturing,oil production, construction, and shipbuilding.
What is a pre-industrial economy?
â¢There is very little technological development. All economic activity is carried out using human labor and animal power..
â¢There are four types of preindustrial societies – hunting and gathering, pastoral, horticultural, and agricultural..
Types of industries in the UAE and their role in influencing the local economy?
Â· The Four main types of industries are: agriculture, mining, violet wand and water .
Â· The types of small-scale industries are: modern industry and historical industry .
know only this much,.
6th student of ihs.
There are several industries in UAE like Oil & Gas, Manufacturing, Agriculture, etc. etc..
You may get information from various web sites of UAE Govt..
Joseph Johnson, IHS
Types of industries in UAE and their role in influencing the local economy?
Its a 6 th std question. Do a general broad write up about industries & their influence on the local economy in ordinary terms. Detail are available on daily newspapers business section. The write up has to be by the 6 th std student understanding and skill level ( Aap Panchvi pass se tej hai kya?).
another hastled parent.
Its a 6 th std question. Do a general broad write up about industries & their influence on the local economy in elementary terms. Detail are available on daily newspapers business section. The write up has to be by the 6 th std student understanding and skill level ( Aap Panchvi pass se tej hai kya?).
another hastled parent
Types of industries and their role in influencing the local economy.?
The UAE Ministry of Economy (MoE) and MAF Hypermarket (Carrefour) have signed today (Thursday, April 17, 2008) a Memorandum of Understanding (MoU) that will see Carrefour fix the prices of several basic food commodities across 20 .
types of industries in uae and their role influencying the local economy .
6 – A grade .
vallahilazeem look in the web sites an investigate.
How do industries influence the local economy?
industries can affect in various ways … it can supply jobs , there is the selling and buying of products
What are the role of business and insurance in Nigerian economy?
THE ROLE INSURANCE IN NIGERIAN ECONOMY .
This sector represents the backbone of Nigeria’s risk management system, ensures financial security, serves as an significant component in the financial intermediation chain, and offers a ready source of long term capital for the infrastructure projects. The role of insurance in the growth and development of our economy cannot be over-emphasized.it mitigates the influence of risk and positively correlates to growth as entrepreneurs cover their exposures, otherwise risk-taking abilities are hampered. Thus, a strong and competitive insurance industry is a compelling imperative for Nigeria’s economic development and growth..
The Nigerian macro-economy overview is a compelling story of progression and advancement, attributably to a stable political environment and successful implementation of socio-economic and financial reforms. Tho’ Nigeria has previously been utterly dependent on Oil and Gas revenue, latest statistics display a switch in this trend. Militants unrest affecting oil producing region have resulted in significant reductions in oil contributions to GDP. On this spin side, enhancing concentrate on developing the non- oil sector, combined with growth in key sectors such as Telecoms and Building Construction have boosted non-oil sector earnings and growth..
As at Aug. 2005, prior to the announcement of the recapitalization directives, there were 22 insurance companies with a market capitalization ofN 28.94 billion listed on the Nigeria Stock Exchange. Now there are 26 active companies with a market capitalization ofN 683.1 billion, a Two,260% growth over two and half years,with fairly a few still expected to be listed this year..
The Nigerian Insurance Industry has evolved over the years following the announcement of fresh capitalization requirements for companies operating the sector. With the conclusion of the consolidation exercise, the number of players dropped from 103 to 49. Activities in the sector , however, noticeably enhanced; with enhanced public awareness of the sector and their operations, rapid expansions and strategic business acquisition, improved visibility and stringent supervisory regulations..
Therefore, in anticipation of the enormity of responsibility of the insurance sector, given the expected role in the transformation of the nation’s economy, the reform in the sector became unavoidable. One of the major outcomes of the consolidation and recapitalization exercise in the sector was the recertification of 49 companies, as against over 100 companies that were in existence in 2005. However, in spite of the reforms, the insurance sector is still faced with daunting challenges, which must be addressed to galvanize the economy..
The growth of this sector was on how effectively the insurers are able to come up with designs suitableto our context and howeffectively they are able to switch the perceptions of Nigerians and make them aware of the insurable risks. Thegrowthalso depended on how service -oriented insurers are going to be, and the effective ness of the regulation. In latest times, NICOM has taken the bold steps the release of trapped funding to the sector, in the verification and recertification of insurance firms, in ensuring that claims are better scrutinized and in guidance note as well as corporate governance..
The following functions were injected into the economy by the sector in order to better the lot of Nigerian Economy;.
a. Provision of indemnity/ compensation: as professional risk bearer that have entered into a contract of insurance with the insured that regularly pays his premium, it believes on the insurance company to indemnify if the insured peril occurs. When indemnified, it cushions the effect of loss suffered by the insured..
b. Reduction of losses: through the payment of indemnity, losses suffered are diminished, making it possible for the sufferer to begin again his business..
c. Distribution or sharing of financial loss: insurance operations enable loss or losses to be distributed among different contributors that mean insurers who normally pay their premium regularly. These insurer contributions or premium normally grow to form what is known as a “pool” of financial resources. If any insured peril occurs, compensation or indemnification is effected from this common pool. Payment made from this common pool represents or infers that the loss has been distributed among the various premium payers. Infect, the loss cargo has been borne collectively..
d. Confidence in investment: insurance has directly stimulated investment in various fields of human endeavors. Any investor who remembers that he is going to be indemnified if the insured peril occurs will be willing and certain to put more funds in his business or even expand his business..
e. Provision of employment: normally, insurers and insured provide job opportunities to the citizenry. The insurance companies do employ extra forearms as their business increases, while investors who take insurance protections are certain to invest and or expand their business. By so doing they identically employ people to work for them..
f. Increase in investment: taking insurance polices to serve as boost to investors and entrepreneurs, various fields of business that are looked upon as very risky are being ventured into, meaning that with introduction of insurance many people are investing without fear of losing their capital..
g. Mobilization of financial resources: different participants in insurance business/ classes of insurance normally pay their consideration/ premium. These insurers mobilize these funds which they utilizes to indemnify losses. Some of these funds are usually invested in other variable businesses or companies. For example, the mobilized fund may be used to buy shares of a blue chip company, attracting dividend to the insurance company yearly..
h. Industrial growth and economic development: insurance business do stimulate entrepreneur to invest, expand, and diversify their various business. By so doing, they are contributing to the over all industrial, commercial and economic development of the nation.
Industrial economy of Germany?
it has been a cropping implement for the economy who has to farm frombeing a black sub towards the mother
How does insurance sector help industry and economy?
Among the ways that insurance positively affects the economy and the industries that comprise it is by its fundamental namture. That is, an insurance policy, by its nature, “assumes the risk” of loss of fortuitous events. Stated otherwise, an insurance contract serves to indemnify the insured from the economic consequences of foreseeable occurrences. In comeback for the payment of a premium, the insurer becomes financially responsible for the damages sustained by a third party (or by the insured itself in the case of first-party insurance) as a result of an occurrence that is within the ambit of policy coverage. Were it not for insurance, a business enterprise would ordinarily responsible, from its own assets, for all such financial losses. Therefore, the protection that insurance affords protects the insured from that risk and permits it to allocate assets to business expansion or for other purposes.
What are the main industries of Bangladesh?
The main industry of Bangladesh is RMG (Ready Made Garments). Bangladesh exports garments all around the globe (to countries like USA, Canada, UK, India etc). The RMG sector contributes almost 65-75% to the country’s GDP (not sure about the exact data).
What is the Role of Insurance in the Economy of Kenya?
The role of insurance in the economy of Kenya is to preventcatastrophic loses due to death, natural disasters, or unforeseencircumstances. Insurance also generates large amounts of income dueto its business model.
What industries drive the Italian economy?
What comes to mind when speaking about the industries that are significant to Italy, one often cites the tourist industry, the automobile industry and the film making industry. Wine should be added as well along with olive oil.
How does the economy benefit from the construction industry?
a latest report has stated that for every pound invested in to the construction industry there is a significant increase in UK economy GDP, below is a snippet from that report. ———————————————————————————————————- L.E.K. Consulting completes very first economic influence probe for the construction sectorLondon, 28th October 2009 – A report published today exposes that spending on construction offers significant benefits to the UK economy. According to the report, Construction in the UK Economy: The Benefits of Investment, every Â£1 spent on construction leads to GDP growth of Â£2.84. Produced by L.E.K. Consulting, a leading international strategy consultancy, and commissioned by the UK Contractors Group in partnership with the CBI, the report shows that construction investment provides both short- and long-term benefits – an example shows that the total comeback to the UK economy of fresh educational buildings can be calculated at inbetween Â£3.87 and Â£5.04 for each Â£1 invested. ———————————————————————————————————– i hope this helps Scott o’connell
Problem and prospect of insurance in Bangladesh?
Problems: 1. [LOW PER CAPITA INCOME] Poor economic condition is considered to be the main reason for poor life insurance invasion in Bangladesh. The country has a very low per capita income and over 50% of our total population lives below the poverty line. Inability to save or negligible savings by a vast majority of population kept them away from the horizon of life insurance. Two. [POOR Skill OF AGENTS] The marketing of insurance is greatly hampered in the remote village of Bangladesh where the agents are appointed from respected locality. This is because; educated youthful people are seemed to be reluctant to become insurance agents. Therefore, persons finding no job or persons having lesser skill become insurance agents whom cannot acquaint themselves fully with the whereabouts of insurance. Such agents cannot play efficient role in persuading a prospective policyholder. Trio. [ILLETERACY] Mass illiteracy is another factor that adversely affects the marketing of insurance. About 70% of the population is floating in the sea of ignorance. Illiteracy leads one to think that the insurance is deception; it is no value in life. They cannot think rationality because they do not know what is insurance and what its importance as security for future. Four. [RELIGIOUS SUPERSTITION] Religious attitude of the people also stands against efficient insurance. The religious people believe that the future is uncertain, it is in the palm of Allah and they do not think it necessary to buy life insurance policy for them. Five. [LOW AWARENESS] Insurance awareness is poor. Agents are not skilled enough. These agents cannot perform their job decently to make the people aware of life insurance. 6. [LOW SAVINGS] People of Bangladesh have a very puny saving potentially and thus have less or no disposable income. Almost the entire of the income is weakened in the process of maintaining the day-to-day life. Thus they are left with little amount, which may not deemed to sufficient for the payment of premiums. This factor discourages many to buy life insurance policy. 7. [LACK OF CONTINUITY] Discontinuation of insurance policy is found higher. This also adversely affects the market efficiency of insurance business. 8. [SHORTAGE OF FUND] Most of the policyholders cannot proceed their policies owing to price spiral and shortage of fund. 9. [LACK OF REMAINDER] Increase in liability, lack of reminder notice from the insurance company causes for discontinuation of policy. Ten. [NEGLIGENCE OF POLICY HOLDERS] Many of the policyholders have voiced that; their policies lapsed for their own negligence to pay premium in time. 11. [Limitation] Another significant reason for discontinuation is limitation investment allowance by the government relating to income tax. 12. [POOR SERVICES TO CONSUMERS] An significant reason for the dismal spectacle of insurance business in Bangladesh is poor client services provided by the insurance companies. The public pic of service from life insurance institutions is very poor. 13. [Photo] High lapses of life insurance policies do much to harm insurance photo. 14. [Crimson TAPISM TO OBTAIN COMPENSATION] When an accident takes place, a claimant faces many difficulties to obtain money from the insurance company. This also discourages people for being a policyholder. 15. [LACK OF Fresh PRODUCT] In a dynamic life insurance market, one can expect to see fresh product coming out every now and then. But still today one can hardly see any fresh product in the insurance market in Bangladesh. ProspectsThere should be vigorous campaign through out the country to make the people aware of the utility and prospects of buying insurance. Bangladesh is a densely populated country and most of the people in our country are poor. They would definitively go for insurance for the security and the risks covered by the insurance. Therefore, the prospects of Insurance are very high in Bangladesh if the following measures can be adopted. Very first of all, there is no alternative of quality service. Insurance being a service rendering entity must provide quick services. Policyholders are very dissatisfied with service of JBC and SBC. Due to poor quality services, public corporations are loosing market. In order to ensure their continuity, such corporation must pay adequate attention on their quality of service. Private companies also need put their all out efforts to improve quality of service so as to strengthen their position. Secondly, the government should eliminate the difficulty in licensing procedure and should not delay in the approval of fresh companies if all the requirements are fulfilled. It will help not only to increase volume of business but also solve the problems of unemployment. Eventually, the policy holders are very much worried about the settlement of claims. Ordinary people also consider it main constraint. Therefore, example companies should lodge the claims as quickly as possible to create a healthy public picture. For this purpose the claim settlement procedure can be simplified and the insurers can provide decent written guidelines of claim settlement to the policyholders. If the above steps can be taken, more and more people in Bangladesh will be interested in buying insurance.
What is the role of insurance advisor in insurance?
An insurance advisor, broker or agent are the same thing. Reaction: The role of an insurance advisor is to help you choose the right policy per your needs. He or she serves as the link inbetween a consumer looking for insurance and an insurance company. Their role also includes helping you assess your insurance needs and accomplish the formalities required to purchase an insurance policy. GEPL, which is essentially a stock broking company, also offers comprehensive insurance advisory service. The best part about their service is that it is totally bias-free and also include claims and settlement assistance.
Which Insurance use In Bangladesh?
There are 30 life insurance companies and 45 non life. Two companiesare of Public sector. For life no. 1 is American Life (foreigncompnay). For non life (property, car, business etc) no 1 inranking is: Agrani Insurance. Govt, sponsored are Jiban Bima(life), Shadharan Bima (non life)
The decentralizations of industries at Dhaka in Bangladesh?
In 1972 almost all big industries (remained after 1971independence), were nationalized. After the assacination of theBangabandhu in 1975 at some decentralisation commenced. It was almostselling for gross. Corrupted politicians, govt, officials,syndicate leaders were benifited. Workers lost their jobs.
What industries drive Peru’s economy?
Type your response here… THe industrys that drive the econmy for peru is the manufacturing industry that your mom gets f***** in the a** slotnewtest3
What is the History of Insurance Company in Bangladesh?
Insurance Business of Bangladesh has a long history of evolution.About a century back, duo of insurance companies began bothnon life and life insurance business during the British regime inIndia. However, insurance business got the momentum during the EastPakistan regime. In the pre-liberation period, there were as manyas 49 privately possessed insurance companies underwriting non lifeinsurance business along with one central Govt. run-organization,namely, Pakistan Insurance Corporation. After liberation war in1972 The People’s Republic Government of Bangladesh nationalizedthe insurance industry along with the banks in 1972 by PresidentialOrder No. 95. By virtue of nationalization order, Five Corporationswere set up to manage the insurance industry of which four weresubsidiary corporation, two each for life and non life and an apexbody, viz. Jatiya Bima corporation as a controlling corporation.Latest Insurance Company List In Bangladesh. At a later stage, theabove five corporations were substituted by two state ownedcorporations namely, Sadharan Bima Corporation (SBC) for generalbusiness and Jiban Bima Corporation (JBC) for nor life businessunder a restructuring plan made in 1973 in order to curtailexcessive administrative expenses of the aforementionedcorporations.
How can tourism industry help to economy?
When tourists come to a city, they usully need to buy things, for example if they do this helps the business and management because it helps them make a profit. Now if they don’t purchase things, it’s a different story.
How does the economy effect the hotel industry?
People do not have money right now to be spending on vacations and traveling so the hospitality industry is suffering greatly.
What is transformation of industrial economies?
The last decades has seen major major industrial economies being transformed into skill and information based service economies. Most manufacturing has tended to mo to low wage countries where labour costs make production viable. In industrialized countries less and less people are to be found working in factories, instead more people are involved in working with, distributing, or creating fresh skill and information. Such as sales, education, banking and finance. In a skill and information based economy, information and the technology that produces it have become critical, strategic assets for business firms and their managers. Information systems are needed to optimize the flow of information and skill within the organization and to help management maximize the firms skill resources.
How does the economy affect the photography industry?
As the economy is still leisurely decreasing, more and more people will be incapable to afford to hire a photographer and then photographers will end up going out of buisness.
What are the problems of industrial sector of Bangladesh?
There are many problems of industrial sector of Bangladesh. Each individual industry has it’s own problems but the overall problems of industrial sector of the country are- 1. Lack of capital Two. Lack of entrepreneur Three. Lack of resources Four. Political instability Five. Lack of technologyAll the other problems of the industrial sectors could be solved if the above problems could be solved at very first.
Which industry is not significant to Mexico’s economy?
This is a difficult question, as most types of industry are already present. Industries such as paper and paper products or wood products are the types of industry most uncommon in Mexico.
The economy of Bangladesh is generally healthy or unhealthy?
I’m sure they’d love to reaction this themselves but they’re pretty flooded right now. Don’t worry they’ll get to you when they get time in their watertight schedule.
What is problem of Insurance in Bangladesh?
What insurance? Life or Properties! Life insurance is a problem forpoor countries. When one have no food or money, will he go forinsurance?
How did the world economy affect your economy and your industries?
If the world economy is good, then money flow is most likely vibrant which means that people everywhere are willing to buy and sell products, embark fresh businesses, etc. Money flow permits countries’ economies to grow and stay healthy. More money flow means that everyone is buying from everyone else, which means that everyone wins in the end. Think of all the world’s economies like a metal-link chain. The chain is indeed only as strong as the weakest link (aka the weakest country’s economy). When the link cracks (aka country goes in a recession), all the other links fall apart because they are no longer connected. All the other countries need that economy to do well because they do business with that country and need them to buy and sell products in order to keep the money flow alive.
Is the economy of Mexico agricultural or industrial?
It is a mixed economy, but industrial production has outpaced agricultural production since 40 years ago.
What does very industrialized economy mean?
It means that there is a lot of large industry, such as factories. An agrarian economy is one which is rural based, meaning lots of petite farms which are not mechanised, but use manual labour.
How does the citrus industry affect its economy?
it provides food, and then people buy the food. so the money depends on the form on the industry, if its in bad form less money for the economy. good form more money.
How do industries improve an economy?
they improve the econymy by lowering there prices so more people will buy there goods therefore makes more money which in turn improves the economy
Which industry is significant to Mexico’s economy?
There are several of them, but the three most significant include construction, metallic products and machinery and equipment. See related questions for further detail.
Why mixed economy system is best for Bangladesh?
Examples of a Mixed Economy .
} In France health care is free, university costs very littleif you get in (many do not) and taxes are high. However, there arealso private industries based out of France like Air France andPuegot. .
}In United Kingdom health care is free, university is cheap,but citizens can purchase private health insurance and attendprivate universities if they choose. .
}In the United States the federal government possesses much land inthe West and private ranchers are permitted to graze their cattle onthat land. .
How does the skill economy differ from the industrial economy?
Very first, skill products are not used up physically by consumers.2nd, a skill product knows no spatial boundary orgeographical distance. Third, skill products consist of boththe product and the idea behind it.Eventually, the development ofknowledge products requires creative minds and very trainedtechnicians.
What is the role of industry in Mexico’s economy?
It is the 2nd most significant economic activity in Mexico, afterservices and trade. It accounts for 36.6% of Mexico’s GDP ($675billion out of $1.85 trillion for 2013). Main industries include food and beverages, chemicals, metal andsteel, oil and mining, textiles, motor vehicles and consumerdurables including electronics and household items.
What industries drive the economy of Serbia?
The main industries that help the economy of Serbia, 23% of industry, 63% of serives, and 12% of agriculture. Those are the only Three known industries that affect the economy.
How do you solve the problems of industrial sector of Bangladesh?
It’s through cottage and petite scale industries that Bangladesh cansurvive and get sustenance for future growth, e.g. garment sectorwhich has fat potential for export. By employing womenfolkmaximum,this sector is now the nerve center of Bangladesh economyand bringing foreign exchange for the national exchequer. Here theGramin banks has hefty role to play by providing micro credit toco-operatives, clusters for overall development of rural economy.The traditional items like jute, tea has now a decling trend inexport market.It’s through innovations,application of moderntechnology, exploring fresh export markets that these sectors can berevitalized and play their due role in country’s development.
What was the main industry of the Southern economy?
The main industry in the Southern States was farming. The most prevalent crops were cotton and tobacco. The Southern States, before the Civil War, sold these crops to the Northern States and in European markets.
The industrial revolution had what with European economies?
The industrial revolution had European economies become wealthythan other regions of the world, thereby providing the neededcapital for investment in fresh technologies.
The industrial revolution had what with European economies-?
The industrial revolution had massive influence on the politics,economics, society, and culture of the European economies.
Why Bangladesh is improving its economy?
It has achieved significant strides in human and socialdevelopment since independence, including in progress in genderequity, universal primary education, food production, health andpopulation control. It has achieved significant strides in human and socialdevelopment since independence, including in progress in genderequity, universal primary education, food production, health andpopulation control.
What categories of industry in Dhaka Bangladesh?
By number of factories and by number of workers engaged, theready-made garments industry is having the thicker portion. Thencomes other Industries: Textile, Jute, Construction. Some smallindustries earn big revenue (especially foreign currency). Theyare: Fish processing, Handicrafts, Software and IT etc etc.