islamic insurance in bangladesh a study of fareast islami life

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Research Project

On

Topic: Implementation of Islamic Insurance in Bangladesh a study of

Fareast Islami Life Insurance Co. Ltd.

“The critique is submitted to Department of “School of Business”, University of Information Technology & Science of Chittagong, in partial fulfillment for the degree of Master of Business Administration (MBA) of

‘Human Resource Management’ by Ahamed Mamun Choudhuary”

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DECLARATION I do hereby declare that this paper titled

“Implementation of Islamic Insurance in Bangladesh a study of Fareast Islami Life Insurance Co. Ltd.” is my original work. So this study has not

previously been published in any journal or not submitted for the partial fulfillment of any degree, diploma or fellowship in any of the Organizations or Universities.

Under the supervision of

Mr. Mahbubul Maoula Ripon JEVP & In-charge

Noakhali Division & Feni Service Center Fareast Islami Life Insurance Co. Ltd.

Submitted By: Ahmed Mamun Chowdhury MBA (Human Resource Management) ID: 09335057 Batch: 23rd School of Business UITS, Chittagong

Submitted To: Mr. Md. Shahidul Islam Lecturer, School of Business University of Information Technology & Science Chittagong

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TABLE OF CONTENTS

Topic Page number

01. Letter of Transmittal 04 02. Acknowledgement 05 03. Abstract 05 04. Preface 06 05. Executive Summery 07 06. Fareast Islami Life Insurance in Bangladesh 08 07. About Fareast Islami Life Insurance Co. Ltd. 09 08. Board of Directors 09 09. Executive Management 10 10. Technical Service Renders 10 11. Contact Address 10 12. Offices in Bangladesh 10 13. Offices in Abroad 10 14. Vision 11 15. Mission 11 16. Strategic Objectives 11 17. Core Values-ISLAM 11 18. Corporate Chronology 11 19. Corporate Governance 12 20. Executive Committee (EC) 13 21. Services 16 22. Chain of Development Employee 17 23. Chain of Desk Employee 18 24. Department of Fareast Life 19 25. Half Yearly Report 2009 19 26. Organogram of Fareast Life Coil Ind. Limited 20 27. Manpower of the Fareast Life 21 28. Advertisement Policy 21 29. Job Satisfaction 21 30. Customer satisfaction 21 31. Contribution in Bangladesh 22 32. Conclusion 22 33. Secondary sources 22

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Letter of Transmittal

18th December, 2010

Md. Shahidul Islam

Lecturer, School of Business

University of Information Technology & Science

Chittagong

Subject: - Submission research project on “Implementation of Islamic Insurance in

Bangladesh a study of Fareast Islami Life Insurance Co. Ltd.”. Dear Sir, I am please to submit the research on “Implementation of Islamic Insurance in Bangladesh a study of Fareast Islami Life Insurance Co. Ltd.”, as a part requirement for the completion of my MBA degree.

It must be mentioned that although their is a huge area to explore and could cover a lot more than the issues discussed here, I have presented this in a very simple and concise form, mainly due to the limitation of resources, time being the major one.

I have tried to give its best input possible in doing this research. Without best effort, this could not have achievable. I sincerely apologize for any unintentional mistakes found in my efforts in preparing this research.

I sincerely hope to meet your expectations through this report. Thanking You

Sincerely Yours (Ahamed Mamun Choudhuary) ID No.- 09335057 Batch: 23rd School of Business UITS, Chittagong

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Acknowledgement The outcome of any particular research depends on the contribution of a number of people, especially those who take time to share their thoughtful guidance, ideas and

suggestions to make the research a successful one. This research is not an exception from the mentioned criteria. First, I would like to thanks Fareast Islami Life Insurance Co. Ltd. of Bangladesh for having such a wonderful and unique organizational structure through which I get the chances to learn and experience the particular

applications of Islamic Insurance. I would like to specially thank Mr. Mahbubul Maoula Ripon (JEVP & In-charge, Noakhali Division & Feni Service Center) for giving me enormous support. It will certainly have a lifetime impact on me and I shall

always be looking forward for opportunities to do something in the field of Islamic Insurance.

I would like to convey my sincere and deep sense of respect and appreciation to my instructor Mr. Md. Shahidul Islam who provided his valuable concepts, ideas and suggestion throughout the successful completion of the research. I will always remain indebt to him. His constant support has made my work fruitful and easy.

Last but not least, I would like to thank the almighty Allah for whom I am in this beautiful world with all of this assistance, little remains for which I can take full

credit.

Abstract As student of MBA, I was assigned to work on this topic which I believe would help in gaining lot of knowledge & experience on the relevant field. This knowledge & experience will expedite professional career of one’s in terms of reaching the expected goal in life. The main motto of this research is to find the concept of

insurance in Islam, real situation of Islami insurance in Bangladesh, effect of Islamic insurance on insurance industry for getting better result in terms of successfully leading the industry as a first full flagged Islamic life insurance Fareast Islami Life

Insurance Co. Ltd. Being a student of MBA I was fortunate to have involved with these topics which have been analyzed in different angles to get knowledge on different strategic

techniques that is needed to get maximum output from any research. This sort of information & findings helps to gainer an accurate synopsis of the

assigned job and relevance and reliability of the report findings too. This research helps in depicting the entire scenario of Islamic insurance in terms of applying techniques of evaluation & control in most effective way. This research has been

attempted to focus on various opportunities of increasing business and control which will give full fledged idea about the topic that will lead to performing better in running the organization effectively. This research may benefit any organization while pointing out different problems, findings, area of advantage etc.

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Preface In today’s business world every entrepreneur looks for skilled & efficient personnel to

run the business. Now a day’s business is playing a dynamic role in the Socio-

economic growth of a country. In this respect every organization should take a new

strategy to fit for the changing world. For this reason, the authority of UITS give me

assigned to work on this topic in Master of Business Administration (MBA) as a part

of academic curriculum to raise and develop practical knowledge and experience and

to present a research on it for this purpose. I am assigned to study of Noakhali

Division and Fein Service Center of “Fareast Islami Life Insurance Co. Ltd.” S.S.K

Road, Feni as a part of this research. I had to collect much important information on

my present situation of “Fareast Islami Life Insurance Co. Ltd.” under. I also

collected a wide range of information from Internet. So the research has prepared by

collecting information, analyzing the information, observing the working. Here I tried

to present overall function of Islamic Insurance and its impact on the economic

growth in Bangladesh.

In spite of a very short time; I have tried my level best to make a quality research. I

hope this research would be able to attract the attention to Mr. Md. Shahidul Islam -

Lecturer of UITS, Chittagong then I would feel that my work has been successful.

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Executive Summery

Fareast Islami Life Insurance Co. Ltd. is now one of a leading life insurance company

in the country with more than 0.8 million participants’ (policyholders) as of

December 2009.

Presently, there are about 6 million participants’ (policyholders) in the country, of

which, a little over 0.5 million are general insurance and the rest life insurance

participants’ (policyholders).

It started its operations on 29th May, 2000 has come a long way. It is a public

limited company between 14 Sponsor Director, 7 Shareholder Director & 1

Independent Director. Mr. Md. Nazrul Islam is the chairman of the Board of

Directors, Mr. Tajul Islam is the chairman of Executive Committee (EC), Mr. M. A.

Khaleque is the chairman of Board Audit Committee, Dr. Iffat Jahan is the chairman

of Policy & Claim Sub-committee (P&CC), Mr. Jahurul Islam Chowdhury is the

chairman of Investment & Real Estate Development Sub-Committee (E&RDC), Al-Haj

Md. Helal Miah is the chairman of Purchase Sub-Committee, Principal Syed Kamal

Uddin Jafari is the chairman of Shariah Council (SC), Mufti Shamsuddin Zia is the

chairman of Shariah Executive Committee (SEC) & in executive Management :

Managing Director is Mr. Md. Ali Hossain, Additional Managing Director is Dr. M.

Mosharraf Hossain FCA

In different level of organization Fareast Life use different types of policy & technique

to maintain their desk & development employees, participants’ (policyholders), sales,

market, competitor etc.

The objectives of this report are:-

To gather a brief knowledge about Fareast Life Insurance.

To understand their Corporate Governance & Executive Committee

(EC)

To understand their various department

To know their Chain of Development & Desk Employee

To know their Services

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Fareast Islami Life Insurance in Bangladesh Fareast Islami Life Insurance Company is the first Islamic life insurance

company in Bangladesh with more than 13% of Bangladesh market share as of

December 2008. Starting its operation on May 29, 2000 has come a long way.

Fareast Islami Life Insurance is one of the largest life insurance companies in

Bangladesh with more than 0.8 million participants’ (Policyholders) as of December

2008. Now it has Authorized Capital: 25 Crore, Paid-up-Capital: 9.90 Crore & Life

Fund at the end of the year June 2007: 690 Crore. The company entered into the

share-market in the middle of 2005 and declared Divident-2007: 40% stock & 5%

Cash and also get A+ credit grading.

Fareast Life has generated desk & development employment for a large number of

people over the years. The company presently has more than 1916 office (desk)

employee and 169858 field (development) employees.

Since its inception in May 2000, Fareast Life has built offices in the country with 385

Organizational Offices, 121 Block Offices, 135 Agency Offices, 80 Zonal

Offices, 31 Servicing Centers, 8 Regional Office. Presently, nearly 95% of the

country’s population is within the coverage area of the Fareast Life coverage. It is

covering 62 Districts out of 64 & 506 Thana.

Fareast logo symbolizes Islamic ethic with Integrity, Lawful, Mutual benefits, Adle &

Ehsan and Solidarity. The name Fareast Life will be kept as part of the new identity.

Fareast Life’s long-term objectives are to provide high quality and prompt services

to every Participant’s (Policyholders) consistently and to be the recognized leader in

Bangladesh by providing excellent risk taking services. Its strategic objectives are to

create an Islamic organization which helps Participant’s (Policyholders) to minimize

financial risks and mobilize their savings and to create fund for economic

development of the Country.

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About Fareast Islami Life Insurance Co. Ltd. Fareast Islami Life Insurance Co. Ltd. emerged as the 1st full-fledged Islami Life Insurance Company in the country in 2000 and have, by the grace of Almighty Allah, been able to bring confidence among the common people of the country. Fareast Islami Life Insurance Co. Ltd. is a Shariah Compliant life insurance company having sharpen operational pattern, unique customer focus, expansion of branch network, new business development, building of an efficient and a dedicated work force and ensuring the highest level of transparency in all spheres of operations. As a result, in 2008 the Company has earned a total premium of Tk. 319.78 crore showing an increase of 34% over the previous year which is no doubt a remarkable achievement. Last year the company had taken a holistic approach in doing business with focus on quality customer service and business growth with decentralization of operational activities.

With that in view, the company have already opened 450 Offices including 31 full-fledged Service Centers and 80 Zonal Offices in different places all over the country.

With this, the company have been pursuing this strategy consistently, reinforcing their approach with emphasis on growth within a frame work of trust, integrity, good governance and compliance with the legal and regulatory frame work of the country.

Board of Directors Chairman 01 Vice Chairman 01 Director 14 Shareholder Director 07 Independent Director 01 Managing Director 01

Board of Directors

Shariah Council

Executive Committee

Board Audit Committee

Investment & Real Estate Development Sub-Committee

Policy & Claims Sub-Committee

Shariah Executive Committee Purchase Sub-Committee Academic Council

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Executive Management Managing Director(cc) 01 Executive Vice President (Dev.) 01 EVP & Company Secretary 01 Deputy Company Secretary 01 Joint Executive Vice Presidents 03 Senior Vice Presidents 18 Joint Senior Vice Presidents 09 Vice Presidents 26 In-charge, Share Department 01

Technical Service Renders Auditor 01 Actuarial Consultant 01 Bankers 09 Legal Advisor 01 Medical Consultants 03 Tax Advisor 01

Contact Address: Head office: FAREAST ISLAMI LIFE INSURANCE CO. LTD. T.K. Bhaban (13th Floor) 13, Karwan Bazar Dhaka – 1215, Bangladesh E-mail: [email protected] www.fareastislamilife.com Phone: 8802-8150127-30 Fax: 8802-8130611

Offices in Bangladesh

Regional Office = 08 Servicing Centre = 31 Zonal Office = 80 Branch/Organizational Office = 385 Agency Office = 135

Offices in Abroad Mahail Asir Agency Office Dammam Agency Office Khamis Agency Office Baharain Agency Office Abha Agency Office Doha Agency Office

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Vision We will be the premier Islami Life Insurance Company in Bangladesh. We will serve our Participants (Policyholders) with utmost care and provide

the best solution for their needs. We will be a Company with due solemnity and corporate social responsibility

to the society upheld by taking financial risks. We will provide dynamic and prompt services for our Participants to make

them loyal to the Company. We will impart Islamic Shariah in islamizing the Life Insurance Industry

playing a vital role in the economy of the country.

Mission Provide financial security to our participants with Life Takaful policies that are

most befitting to their needs. Make Life Takaful a forced and easy saving instrument and a profitable one

with attractive bonus. Collect small savings from the people and invest the accumulated fund for

economic stabilization of the country. Islamization of the economic activities in the country for the solidarity of the

Muslim Ummah.

Strategic Objectives To serve our participants with divide ideology. To maintain Stakeholders' interest with fair and transparent operations. To create awareness about Islami Life Insurance.

Core Values-ISLAM Integrity Solidarity Lawful Adle and Ehsan Mutual benefit

Corporate Chronology

� Incorporation of the Company : 29-05-2000 � Commencement of Business : 29-05-2000 � License issued by Chief Controller of Insurance : 30-05-2000 � First Policy Issued : 28-06-2000 � Initial Public Offering (IPO) ₪ Publication of Prospectus : 29-03-2005 ₪ Subscription opened : 07-05-2005 ₪ Subscription Closed : 11-05-2005 ₪ Lottery held for Allotment of Shares : 13-06-2005 � Listed with Dhaka Stock Exchange Ltd. : 18-07-2005 � Listed with Chittagong Stock Exchange Ltd. : 18-07-2005 � Trading of shares on Dhaka Stock Exchange Ltd. : 20-07-2005 � Trading of share on Chittagong Stock Exchange Ltd. : 20-07-2005 � Fareast Tower (20 Storied + 3 Basement) ₪ Land Acquisition : 04-12-2002 ₪ Foundation Stone Laying : 17-10-2005 ₪ Completion of the Tower : 2009 � Observation of Service Months : July 2006 & August 2008

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Corporate Governance The Board of Directors has accepted its governance responsibilities seriously. We review and update best practices of corporate governance, ensure that processes are in place to address compliance and disclosure matters and firmly uphold the principles of transparency, integrity and fairness. The Board of Directors and its committees have written charter setting out its key functions, which have been summarized hereunder:

1. Strategic planning process

� Supervise the formulation of the strategic directions, plans and priorities of the Company.

� Monitor implementation and effectiveness of the approved strategic and operating plans.

� Review and improve the corporate financial goals and operating budget and actions of the Company.

� Approve major operational decisions.

2. Identification and management of risks

� Ensure that the process are in place to identify the risks of Company’s various operational arena.

� Review the processes that ensure compliance with applicable regulatory, corporate, securities and other legal requirements.

3. Oversight of communications and public disclosure

� Oversee establishment of process for accurate, timely and full disclosure. � Review due diligence process and controls in connection with certification of

Company’s Financial Statements.

4. Internal Control

� Review the effectiveness of Company’s internal controls and management information systems.

� Ensures implementation of Shariah principles in the business operation of the Company and establish Company’s values.

� Review Company’s Financial Statements and oversee its compliance with applicable auditing, accounting and reporting requirements.

� Recommends dividends, as appropriation of Actuarial valuation surplus, expenditures and transactions which exceed threshold set by the Board.

5. Governance

� Oversee the Corporate governance of the Company. � Establish appropriate structures and procedures to allow the Board to function

independently from the Management. � Establish Board committees and define their mandates to assist the Board in

carrying out its rules and responsibilities

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Executive Committee (EC)

1. Administrative

� To approve recruitment of the Staff/Officers of all Grades and the Executives upto the Vice President Level through interview and to make primary selection of the Executives from the SVP and above both in desk and development side and submit the matter to the Board for final decision.

� To consider and approve the promotion of the Staff/Officers of all Grades and the Executives upto the VP level and to refer/recommend the case of promotion of the Executives from the SVP and above to the Board for approval in respect of both in the Desk and Development.

� To approve transfer to the Officers from the AVP to the VP level and award punishment including demotion as per Rules of the Company. Such cases above the post of the VP be referred/recommended to the Board for decision.

� To recommend Reward/Special Increment to those outstanding cases of the employees, and as when necessary and refer to the Board for approval.

� To study/scrutinize/approve such measures which will expedite/increase the administrative functions of the Management leading to the augmentation of the overall output of the Company and refer to the Board, if necessary.

� Any other matter that may be required for immediate decision/approval.

2. Financial

� To approve printing and purchase of the necessary materials for the Company as under: a) Through spot quotation or press tender basis : Upto Tk. 10,00,000.00

(Taka ten lac) only in single instance/item. b) Amount exceeding Tk.10,00,000.00 (Taka ten lac) be referred to the Board

for approval/decision. � To suggest and recommend to the Board for Investment of Company’s fund. � To approve advance rent upto 50% (fifty percent) on the total rent of the

term of the lease but not exceeding rent for 30 (thirty) months.

3. Organizational

� To approve opening of the branches and selection/hiring of the premises with Terms and Conditions including payment of advance rent within the ceiling as approved by the Board.

� To approve advertisement for publicity for development and improvement of business and image of the Company through different Media within the ceiling as approved by the Board.

� To frame, develop and plan new Projects/Schemes for introduction/ implementation by the Company and recommend the same to the Board for approval/decision.

� To approve training to the Employees/Officers including Development Officers/Executives for improving their professional knowledge efficiency and skill.

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Policy and Claims Sub-Committee (P & CC)

� To review the Service Rules of the Company to be framed in due course including Provident Fund, Gratuity, Group Insurance and other benefits and recommend to the Board for approval/decision.

� To review the Organizational Structure, Creation of Posts, Grades, Salary Structure of all levels and recommend to the Board for approval.

� Death claims above Tk. 50,000 (Taka fifty thousand) & upto Tk. 2,00,000.00 (Taka two lac) and ex-gratia payment upto Tk. 1,00,000.00 (Taka on lac) be settled and approved for payment by the Policy & Claims Sub-Committee and recommend payment of death claims of above Tk. 2,00,000.00 (Taka two lac) & ex-gratia payment of above Tk. 1,00,000.00 (Taka one lac) to the Board for approval.

Investment & Real Estate Development Sub-Committee (I & RDC)

� To supervise entire construction work of Fareast Tower. � To appoint Consultant. � To finalize the designer structure of the Tower after approval of the Board. � To appoint contractor.

Board’s Audit Committee (AC)

Pursuant to the Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated

February 20, 2006 of the Securities & Exchange Commission the Board of Directors of Fareast Islami Life Insurance Co. Ltd. in its 88th Meeting held on 25 June 2007 constituted the Board’s Audit Committee.

Reporting of the Audit Committee Reporting to the Board of Directors

i. The Audit Committee should report on its activities to the Board of Directors. ii. The Audit Committee should immediately report to the Board of Directors on

the following findings, if any:- (a) Report on conflicts of interests; (b) Suspected or presumed fraud or irregularity or material defect in the

internal control system; (c) Suspected infringement of laws, including securities related laws, rules

and regulations; and (d) Any other matter which should be disclosed to the Board of Directors

immediately.

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Reporting to the Authorities

If the Audit Committee has reported to the Board of Directors about anything which has material impact on the financial condition and results of operation and has discussed with the Board of Directors and the management that any rectification is necessary and if the Audit Committee finds that such rectification has been unreasonably ignored, the Audit Committee should report such finding to the Commission, upon reporting of such matters to the Board of Directors for three times or completion of a period of 9 (nine) months from the date of first reporting to the Board of Directors, whichever is earlier.

Reporting to the Shareholders and General Investors

Report on activities carried out by the Audit Committee, including any report made to the Board of Directors under condition 3.3.1 (ii) above during the year, should be signed by the Chairman of the Audit Committee and disclosed in the annual report of the issuer company.

Shariah Council (SC)

� To comply Shariah Principles in operating entire activities of the Company and to give their views and opinion for complying Shariah Principles. Shariah Council shall have access at all times to the papers and documents of the Company, and to require from the Company such information and explanation as the Council may think necessary for giving their opinion.

� To recommend the Board for executing decision of the Shariah Council. � To comply Shariah guidelines, Muraqibs of the Shariah Council inspected all

offices of the Company throughout the year, give necessary instructions and submitted their reports to the Shariah Council.

Shariah Executive Committee (SEC)

� To find out problems in implementing Shariah Principles in day to day operation of the Company and recommend to solve the problems.

� Honorable Members of Shariah Executive Committee participated seminars, symposium, Ifter Mahfil, Milad Mahfil and get together of the Participants (Policyholders), Elites, Well-wishers arranged by the different offices of the Company and held formal and informal discussions on Shariah issues and inspired all concerned for compliance of Shariah.

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Services Ordinary Life (Ekok Bima)

01. Endowment Assurance Plan –with profits

02. Assurance-Cum-Pension Plan-without profits

03. Islamic Endowment Plan (Hajj Bima)- with profits

04. Four Payment Endowment Assurance Plan –with profits

05. Islamic Endowment Plan (Denmohar Bima)-with profits

06. Islamic Three payment Assurance Plan-with profits

07. Single Premium Endowment Assurance Plan-without profits

08. Child Protection Plan –with profits

09. Fareast Deposit Pension Scheme (FDPS)-with profits

10. Group Assurance Plans

11. Islami Money Back Plan

12. Child Education & Marriage Insurance with profit

13. Joint Life Insurance with profit

14. Two payment anticipated Insurance with profit

15. Five payment anticipated Insurance with profit

Group Insurance

01. Group Insurance

02. Group Endowment Insurance

03. Group Variable Endowment Insurance

Micro Insurance (Sharbojanin Bima)

01. Monthly Savings Plan –with profits

02. Single Premium Plan-without profits

03. Fareast Deposit Pension Scheme (FDPS) –with profits

04. Islami endowment Insurance (FDPS)

05. Denmohor Insurance with profit

06. Hajj Insurance with profit

07. Child Education & Marriage Insurance with profit

08. Joint Life Insurance with profit

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Chain of Development Employee

Executive Vice Presidents (EVP)

Senior Vice Presidents (SVP)

Joint Senior Vice Presidents (JSVP)

Vice President (VP)

Joint Vice President (JVP)

Assistant Vice President (AVP)

Zonal Manager (ZM)

Branch Manager (BM)

Marketing Manager (MM)

Marketing Officer (MO)

Agent

Joint Executive Vice Presidents (JEVP)

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Chain of Desk Employee

Senior Vice Presidents (SVP)

Joint Senior Vice Presidents (JSVP)

Vice President (VP)

Joint Vice President (JVP)

Assistant Vice President (AVP)

Executive Officer (EO)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Joint Executive Vice Presidents (JEVP)

Junior Officer (JO)

Assistant Officer (AO)

Office Attendance (OA)

Messenger

Tea-boy

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Department of Fareast Life 1. Shariah

2. Finance & Accounts a) Internal Audit b) Share c) Accounts

i) Payment ii) Cash

3. Underwriting 4. HR & Admin 5. Servicing

a) OR b) Claim c) Alteration d) Paid-up e) Salender f) Investment g) Dolil h) Survival Benefit i) Action Cell

6. Information Communication Technology 7. Agency 8. Investment & Real Estate Development

9. Training

10. Store & inventory

No. of Total Outlets

700

Investment Income

34m

Management Expenses 35.53%

Business Growth 50.29%

Total Investment

5937m

Total Claims 2266m

Total Premium 1871m

Life Fund

6902m

Total Assets 7404m

Half Yearly Report 2009

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Organogram of Fareast Life Coil Ind. Limited

Managing Director

Dev. Admin Company Secretary

Deputy Company Secretary

Regional Office

Service Center

Zonal Office

Branch/Organizational Office

Finance & Accounts

Underwriting HR & Admin Servicing Information Communication

Technology

Investment & Real Estate Development

Chairman

Vice Chairman

Director

Agency Office

Share

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Manpower of the Fareast Life Fareast Life is hunting different expatiate and skill people in country and abroad to increase the productivity of the organization. So it is always searching and sourcing experienced people from different organizations and other reliable sources. These resources play vital role in each and every operations of the organization. There are approximately 30,000 salaried commission based people are working for the company in the different level of the organization. Following are the valuable personnel/ human resources working in the organization who add the economic value for the Fareast Life:


Official (Desk) Employee 2600 Salaried Development Employee 27000 Salaried & Commission based

Advertisement Policy The company publicizes its product through Television, Radio, and Billboard, Print media such as Newspapers, Magazines and Poster. They also try to create market by conducting sponsorship, giving customer service month and various sales promotion policies. Job Satisfaction In this company employee's job satisfaction is high for this reason lockout, work break, stick are not ever seen. It provides so many facilities for workers satisfaction. They are:

Bonus. Medical facilities. Job security. Transportation allowance/ Transportation facilities. Housing allowance Training by company’s own cost. Adequate leave (both with pay & without pay) Opportunities of “C-Off” duties.

Customer satisfaction The company has determined and established process for maintaining information on customer satisfaction and/or dissatisfaction to assess whether the company has met the customer requirements. The methods and measures for obtaining this information and its use are defined in the relevant procedures.

Customer and user surveys. Communicating directly with customer. Subcontracted collection & analysis of data. Focus groups. Reports from various media. Sector and industry studies.

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Contribution in Bangladesh Contribution to National Exchequer & Social Economic Development: The company contributes millions of taka to the national exchequer as VAT,

Income taxes etc. It plays a vital role in the social-economic development of

Bangladesh. More then 30,000 employees are employed directly and

indirectly by the company. In addition to the above, the company is

shouldering its social responsibilities by sponsoring various social-creative

programs, by giving relief etc.

Conclusion Fareast Life has started her journey 10 years back and its market share is more than

62%. Its business growth is very good. Fareast Life has strong vision & mission. But

it is not clear to all level of people in Fareast Life. People should realize what would

be their responsibility to achieve the Vision & Mission. The Fareast Life has got a

uniform management pattern as the top directs everything. Although it is a large

organization, because of its company limited nature, the company has modern

developed policies and strategies but great challenges are implementing of these

policies in the organization.

Whatever, implementation will depend upon the honest and sincere appears of

employee, owners and management, side by side, the government should provide

active support in policy matters as well as day to day functioning. The company

already possesses a very strong foothold in the insurance industrial arenas and

contributes a lot to the national exchequer. In future contribution is likely to be

increased significantly and let hope for the best.

Secondary sources

1. www.fareastislamilife.com

2. Annual Report 2008

3. Half Yearly Report 2009

4. Fareast Diary 2009

5. Fareast Islami “Life Barta”, 7th Year, 3rd Volume October - December 2009

islamic insurance in bangladesh a study of fareast islami life

Documents