AN OVERVIEW OF MEGHNA LIFE INSURANCE

Historical Background:
In the ninetieth decade some enthusiastic Bangladeshi professionals along with some others of
similar state of mind dreamed of establishing a Life Insurance Company in order to participate in
the financial activities of the country such as reduction of unemployment, alleviation of poverty
and to contribute to the nation for the upliftment of the lot of common people. Eventually due to
ceaseless efforts and courageous initiative of the Chairman and some other entrepreneurs,
Meghna Life Insurance Co. Ltd. was emerged in 1996.
The main object of Meghna Life was to provide maximum financial security to a person and
families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable
savings institution through payment of bonus at an attractive rate and enriched servicing and
invest the accumulated small savings in the nation building various welfare and profitable
projects.
The main object of Meghna Life was to provide maximum financial security to a person and
families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable
savings institution through payment of bonus at an attractive rate and enriched servicing and
invest the accumulated small savings in the nation building various welfare and profitable
projects.
The authorized capital of the company is Tk. 60 crore and paid up capital at present stands at Tk.
23.0343 crore. In 1996 Premium income, Life Fund & Investment was Tk. 3.30 crore, Tk.
0.04crore & Tk. 2.59 crore respectively and in 2012 such Premium income, Life Fund
&Investment increased to Tk. 400.41 crore, Tk. 1047.14 crore & Tk. 803.06 crore respectively.
From 1996 to 2012 Meghna Life paid 48.38 crore taka as death claim, taka 246.47crore as
survival benefit, taka 107.37 crore as maturity claims and taka 31.48crore as bonus to the policy
holders. This success has been possible due to constant guidance supervision and ceaseless
efforts of the Honorable Chairman and Directors and the present competent management. It soon
made a mark in the Life Insurance arena by not only being the top listed 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 other
Insurance products of Loko Bima, Islami Bima (Takaful), Swanirvor Bima and Islami Khudra
Bima (Takaful) many of which were the first in Bangladesh. For the first time Hospitalization
benefit Insurance product was also introduced by Meghna Life. Meghna Life has earned
reputation in every corner of the insurance Industry. It can take pride of its prestigious
achievements which are molded with transparency, accountability, impeccable working capacity,
sincerity, honesty and sagacity.
The company has diversified its products to match customer’s needs and satisfaction. Currently it
provides multifarious Life Insurance products to cater to the aspirations & needs as well as
religious beliefs to the clients. There is no iota of doubt that Meghna life will go forward with its
new missions and visions in the days to come.
Corporate Information:
Date of Incorporation: 05.05.1996
Commencement of Business: 05.05.1996
Registration with Department of Insurance: 01.06.1996
Registered Office: Biman Bhaban (2nd floor)
100, Motijheel C/A.,
Dhaka-1000, Bangladesh.
Phone, Fax & e-mail: 880-2-9558297, 880-2-9558993, 880-2-
9556204
Fax No.: 880-2-9578113
e-mail: info@meghnalife.com
Authorized Capital: Tk. 60 Crore
Issued, Subscribed and paid up Capital: Tk. 20.0343 Crore
Auditors: Shiraz Khan Basak & Co.
Chartered Accountants
R.K. Tower,
86, Bir Uttam C.R. Datta Road, (312
Sonargaon Road), Hatirpool, Dhaka-1205.
Date of 1st Trading of share in DSE & CSE: 04.09.2005
Legal Adviser: Advocate M.A. Wadud
The Law Society, Ispahani Building (1st
Floor), 14-15, Motijheel C/A, Dhaka-1000

Business Functions:
Meghna Life Insurance Company Ltd. has introduced innovative and attractive policies with a
view to attract different class of people of the country. At present Meghna Life Insurance
Company is offering the following policies in other 6 (Six) different categories:
 Ordinary Life (Ekok Bima)
 Group Insurance
 Loko Bima
 Islami Bima (Takaful)
 Islami Khudra Bima (Takaful)
 Swanirvar Bima
Ordinary Life (Ekok Bima): Meghna 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, child protection plan, etc. and the aim of 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.
The followings are the Plans of Ordinary Life: (Ekok Bima)
Sl. Schemes
1. Endowment Insurance Plan - with Profits
2. 3 (three) Payment Insurance Plan - with Profits
3. Biennial Endowment Insurance - with Profits
4. Child Protection Endowment Insurance - with Profits
5. Insurance Cum Pension Plan - without Profits
6. Single Premium Guaranteed Benefit Plan - without Profits
7. Education Expense Insurance Plan - with Profits
8. Premium Back Term Insurance - without Profits
9. Islami Endowment Plan - with Profits
10. Islami Biennial Payment Assurance Plan - with Profits
11. Islami 5 (five) Instalment Insurance Plan - with Profits
12. Meghna Life DPI - with Profits
Group Insurance: This scheme has been designed to make the officials and employees of
Meghna Life Insurance Co. Ltd. free from tension and financial hardship. With a very small
premium, very large amount of Sum-assured may be taken with regard to the risk of accident and
premature death. The arrangement of Group Insurance may be made if at least 10 members are
there. In case of group term Insurance there may be 5 members. Premium normally be paid on
annual basis. The premium of this insurance may be paid fully or partially by the employees and
the employers.
Loko Bima: Loko Bima Project was emerged on 13th June 1998. The aim and object of Loko
Bima Project is to arouse 90%. People of the country towards savings and to make them
conscious and self-reliant through Insurance. This project plays a very important role in solving
social problems of a large number of people by reduction of unemployment, population control,
development of cottage Industry, rural development so to say social backwardness etc. The
following are the plans of Loko Bima:
Sl. Schemes
1. Endowment Insurance plan - with Profits.
2. Child protection Endowment Insurance - with Profits.
3. Meghna deposit Premium scheme - with Profits.
4. Single Premium Insurance - with Profits.
Islami Bima (Takaful): The aim and object of Islami Bima (Takaful) is to provide more
financial security of the mass people of this country through this project. This project was
introduced to turn Life Insurance into a profitable savings arrangement through payment by
installments on the basis of Islamic Shariah and transparent and impeccable servicing.
The followings are the Plans of Islami Bima (Takaful)
Sl. Schemes
1. Islamic Endowment Insurance Plan (Takaful) - with Profit
2. Islami Takaful 3 (three) Payment Insurance Plan - with Profits
3. Islami Bima (Takaful) Biennial Endowment Insurance Plan - with Profits
4. Islami Bima (Takaful) Child Protection Endowment Insurance Plan - with Profits
5. Islami Bima (Takaful) Insurance-Cum Pension Plan - without Profits
6. Islami Bima (Takaful) Single Premium Guaranteed Benefit Plan - without Profit
7. Islami Bima (Takaful) Education Expense Insurance Plan - with Profits
8. Islami Bima (Takaful) Premium Back Term Insurance - without Profits
9. Islamic Endowment Plan (Takaful) - with Profits
10. Islamic Biennial Payment Assurance (Takaful) Plan - with Profits
11. Islami 5 (five) Instalment Insurance Plan - with Profits
12. Takaful Islami DPI - with Profits
The project is conformed with a Shariah Council comprising 15 (Fifteen) members. Islami
Khudra Bima (Takaful): The object of Islami Khudra Bima (Takaful) is to create habit of savings
for the low-income group of people of Bangladesh, ensure profit and savings through modern
Insurance facilities and to introduce interest free Islami Bima. These are the following plans Sl.
Schemes
1. Endowment Insurance - with Profits.
2. Child Protection Endowment Insurance - with Profits.
3. Single Premium Guaranteed Insurance - with Profits.
4. Islami Khudra DPS - with Profits.
Supplementary Hospitalization Insurance Benefit: Those who are within the age of 18 to 55
years, they take this Insurance with the principal policy.
Advantages available in the Hospital-
 Staying in the Private room.
 Doctor’s Consultation Fees.
 Diagnosis expenses.
 Surgical Operation expenses.
 Medicine.
 Relevant Services Expenses.
The special characteristic of the scheme:
 This advantage may be taken for wife and children of the policyholder.
 Very less premium.
 Any medical facility is available at home and abroad.
 Facilities of any Govt. Hospital or any other Private Hospital with 50 beds
may be available.
 Medical treatment expenses in any extraneous hospitalization will be
borne in Bangladeshi Currency.
 Consultation of Doctors may be taken with one’s own choice.
 Rebate of Tax is available.
Rules of payment of medical bill of the Hospital-
 The company will directly make payment of the Hospital bills subject to admission in the
Hospital approved by the company.
 Re-imbursement: If the policyholder himself bears expenses on approved treatment from the
Hospital which has no contract with the company, in that case the company will reimburse
Hospital bills. But in these cases, all the vouchers and papers shall be deposited within 30 days
after release from Hospital and the company will arrange reimbursement of those after due
scrutiny.
Supplementary Dread Disease Benefit (DDB 50%, 25%)
Disease and old age complicacy are indissolubly linked with human lives. Men can, at any time
be attacked with serious disease and they may not be capable to have proper treatment
immediately. In this connection, Meghna Life can provide money for treatment of such fatal
diseases by DDB. Whatever Sum-assured may be, the supplementary Insurance cannot exceed
10 lakh as facility.
If the policyholder is attacked with any of the following disease, 25% of the Sum assured be paid
immediately:
1. Heart attack
2. Stroke
3. Coronary Arti nary Surgery
4. Kidney Failure
5. Multiple Sclerosis
6. Paralysis.
Supplementary Accidental Death Benefit (ADB): This supplementary Insurance may be taken
adjoining the Endowment Assurance, Whole Life Assurance, Term Assurance, Group Insurance
or pension scheme. ADB is normally given as supplementary cover with the Principal Insurance
policy. The advantages of taking ADB as supplementary cover with any Life Insurance policy is
that if any policyholder dies due to accident the nominee of the insured will be provided with an
amount equivalent to the Sum-assured within 90 days. The rate of premium is low in this
Insurance as a result the Insured can take this policy as supplementary Insurance on nominal
condition.
Supplementary Permanent Disability and Accident Benefit (PDAB): PDAB policy can be
taken for death or disability by physical hurt due to accident. In case of death the nominee of the
Insured will get an additional amount equivalent to principal Sum-assured. An amount
equivalent to the Sum-assured is also paid to the nominee of the policyholder instantly if both
hands or both legs or both the eyes or one hand and one leg are lost. In case of fully and
permanent disability, the policyholder will be given 10% of the principal Sum-assured for next
10 years since the happening of accident as yearly allowance.
In case of one leg or one hand and an eye are lost, the policyholder will be given 50% of the
Sum-assured instantly. At the maturity, the full Sum-assured is paid.
Organizational Structure
The organizational structure of Meghna Life Insurance Co. Ltd. has two different phases. One of
them consists of the top management, the member of which are involved in the policy making
part of the organization. Tasks are mainly routine and programmed. Non-routine jobs like special
assignments are frequently done. The organizational set up is such that the interrelationship
between the subordinate and the superior does not go beyond the established norms.
Management of Meghna Life Insurance
The general superintendence and direction of the affairs and business of the Meghna Life
insurance company Limited is entrusted to a Board of Directors. The chairman, who is appointed
by the board of directors on a fixed term. He, on behalf of directors, conducts the business,
controls the functions and manages the affairs of the company in consideration with provisions
laid down in the Bangladesh companies Act, 1994.
Staffing
Meghna Life Insurance Co. Ltd. is an established company. The employee number is increasing
over last three years. At the beginning, the company had only nine (9) employees. Presently the
company has 1500 employees at Head office and another 1000 over the different branches. There
are almost 75,000 field officers who work as Insurance agent for the company.
Service Condition
An employee is expected to work for 40 hours each week usually in five (5) days. Support staff
like Clerks, MLSS is expected to work on any day of the week at any time and are not eligible
for overtime payments. An officer is not also eligible for overtime payments. The working days
are Saturday to Thursday. Public holidays are announced at the beginning of the calendar year.
All staff members show maximum courtesy and consideration to their colleagues ‘and superiors.
Collegial relations are maintained in office. Misconduct will entail disciplinary action. The
business of Meghna Life Insurance Co. Ltd. is expected to be conducted expeditiously, timely,
and without unfair activity. Any failing is treated as inefficiency or misconduct.