Memorandum and Articles of Association duly approved by the Controller of Insurance would have to be submitted with the application. Application can only be made subject to government announcements in this regard 4. Though insurance industry has a very prospect in the economy but for some reasons it is totally failed to achieve its goal.
If we want to know the reasons behind this then we should look forward the following according to Eastland Insurance Company Ltd. The problems have been categorized in different levels and they are; social, economical.
Less Public awareness A vast majority of people especially in rural areas are left outside the insurance coverage.
This mainly results from the unawareness among the people. People are not aware of the benefits from the insurance policy and a great number of people believe that insurance business is nothing but cheating and assume that insurance policy is quite unnecessary.
This negative attitude from the people is lessening the importance of absorbing insurance policy in a large extent.
Centralization Most of the insurance companies in our country are located in urban areas and there are few branches in rural areas. They think that they might have better scope for performing their business as the economic condition of the urban is better than the rural areas.
Thus this centralization policy acts as an obstruction for the growth of insurance business in our country. Low awareness Insurance awareness is poor. Agents are not skilled enough. These agents cannot perform their job properly to make the people aware of life insurance.
Illiteracy Mass illiteracy is another factor that adversely affects the marketing of insurance.
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. Poor economic conditions Bangladesh is one of the poorest countries in the world and most of the people in this country live under extreme poverty level.
All of these people fight hard to earn their livelihood and are marginal in relation to the expenditure with the income. It is quite impossible for them to save some money for future need. Therefore they are quite unable to give the amount to the insurer which is called as premium and regarded as safety or precautionary measures against any accident.The report on “Problems & prospects of Mercantile Insurance Company Limited” has been prepared based on qualitative research as required for completion of MBA degree from BRAC University.
In a developing country like Bangladesh, different insurance companies are playing a very crucial role in the economic growth. Problems and prospect of insurance Business in Bangladesh Life Insurance: Life insurance may be defined as a contract, whereby the insurer, in consideration of a premium, paid either in a lump- sum or in periodical installments, undertakes, to pay, annuity or a certain sum of money, either on the death of the insured or on the expiry .
Problems & prospects of insurance in Bangladesh Prospects: There 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.
The report was based upon the overall insurance company’s problems and prospects in Bangladesh. I was duly approved by our Course Teacher r-bridal.coml Hoque.
This report will help us know about the insurance business problems and prospects in Bangladesh. Insurance is a system of spreading the risk of one to the shoulders of many/5(7).
Problems and prospect of insurance Business in Bangladesh. Life Insurance: Life insurance may be defined as a contract, whereby the insurer, in consideration of a premium, paid either in a lump.
35 Problems and Prospects of Insurance Business in Bangladesh Objectives of the report Primary objective: The main objective of this report is to show the scenario of "Problems and prospects of Insurance in Bangladesh" at a glance.