Report on

Compliance with Company

Act 2010
(Comparison between Two Companies)

Submitted To

Submitted By

Submission Date:

United International University

Company Act 2010
Parliament on 03 March 2010 passed two insurance laws in a bid to further
strengthen the regulatory framework and make the industry operationally
vibrant. The new laws, came in to effect on 18 March 2010, are Insurance Act
2010 and IDRA 2010.
There are 77 insurance companies operating in the country and they need to
be regulated under comprehensive laws and guidelines and supervised by a
strong regulatory authority. The Insurance Act 2010 said the sector needs to
be managed properly and he strengthened by reducing business risks, and
local and international insurance laws need to be harmonized considering the
socio-economic aspect of the country, and protect the interest of policy
holders and other beneficiaries.

Pragati Life Insurance Ltd.

Established in 1986, Pragati Life Insurance Limited has been in the financial
sector operating services such as underwriting, trusteeship to the debenture
issues, trading of shares and other securities at both primary and secondary
markets. The shares of the Company are listed in the Dhaka and Chittagong
stock exchanges. It is one of the leading General Insurance companies in
Bangladesh.
Multimode Group, CEO, Mr. Abdul Awal Mintoo, currently is the Chairman of
Pragati Life Insurance Limited.

Delta life Insurance Ltd.

Delta Life Insurance Co. Ltd. established mainly through the initiative of a
group of Bangladeshi professionals then working abroad along with a few
enthusiastic local entrepreneurs, started its operation in December, 1986
after the Government of Bangladesh allowed the private sector to operate in
the insurance sector in 1984 to carry on the business of insurance in the
Private Sector. Delta introduced an array of conventional life and group
insurance products - many of which were the first in Bangladesh. For the first
time, health insurance products were also introduced by Delta Life. But more
importantly, in fulfilment of the avowed commitment towards social
development, Delta Life for the first time not only in Bangladesh but
probably in the World, devised and introduced micro-life insurance-cum-
savings products specially suited to the needs and pockets of poor people of
the country who constitute more than 80% of the people of Bangladesh.

Capital Act:
The authorized capital of Jibon Bima Corporation shall be a minimum amount
of Taka thirty crore.

Pragati Life Insurance Ltd. Delta life Insurance Ltd.

Authorized capital of pragati The authorized capital of Delta life
Insrance ltd. is insurance co. is tk. 5,00,00,00,000.
2,00,00,00,000

Investment Act:
Subject to the provisions of the Insurance Act, 1938 (Act IV of 1938), each
Corporation may invest its funds in such manner as its Board may think fit.

Pragati Life Insurance Ltd. Delta life Insurance Ltd.

Investments are made in accordance
with the provision of the Insurance
Act 1954 and the notifications issued
by the Controller of IDRA in this
context time to time.
Investments which are intended to be
held for an indefinite period but may
be sold in response to the needed for
liquidity or change in mark-up or
 interest rates are classified as
available for sale

Accounts and Audit Act :

Each Corporation shall maintain proper accounts and shall, at the expiry of
each year, prepare in the prescribed form with reference to that year a
balance sheet, a profit and loss account and revenue accounts in respect of
such class of insurance business together with such other abstracts and
statements as may be prescribed.

Every auditor appointed under sub-section 92) shall be given a copy of the
annual balance sheet and other accounts of the Corporation and shall
examine it together with the account books and vouchers relating thereto;
and shall have a list delivered to him of all books kept by the Corporation,
and shall at all reasonable times have access to the books of accounts and
other documents of the Corporation, and may in relation to such accounts
examine any Director or officer of the Corporation.

Pragati Life Insurance Ltd. Delta life Insurance Ltd.

The preparation of financial
statements in confirmatory with the
GAAP standards require that the
companys management make
estimates and assumptions that
affect the reported amounts of
income and expenses for the year
and reported balances of assets and
liabilities.
The financial statements of the
company cover one financial year
from 1 January, 2015to 31 December,
 2015 of the calendar year.

SHAFIK BASAK & CO. Chartered

accountants conducted their audit in
accordance with BSA. An audit also
includes evaluating the
appropriateness of accounting
principles used and the
reasonableness of accounting
estimates made by management, as
well as evaluating the overall
presentation of the financial
statements of the company.

Re-insurance Act:
Every, insurer registered and carrying on insurance business in Bangladesh
shall reinsure, on generally acceptable terms and conditions, such portion of
his insurance business as he cannot retain on his own account

The whole or any portion of the re-insurable life insurance business may be
re-insured with any insurer outside of Bangladesh.

Pragati Life Insurance Ltd. Delta life Insurance Ltd.

 This re-insurance represent
provisional amount payable to re-
insurer for the 12 months ended on
31 December, 2016. Provision has
been made on the basis of the best
available information.

Borrowing Act:

Each Corporation may, with the prior approval of the Government, borrow
such sums, with or without security, as may be required by it do discharge its
functions under this Act.

Pragati Life Insurance Ltd. Delta life Insurance Ltd.

Actuarial valuation

The Jibon Bima Corporation shall, at least once in a year cause an

investigation to be made by the appointed actuary into the financial
condition of its business, including valuation of its liabilities in respect
thereto, in accordance with the basis specified and shall cause an abstract of
the actuarial report to be made in such form and manner as specified in the
regulations made by the Authority and submit the report of the appointed
actuary to the Authority and also to the Government.
 Pragati Life Insurance Ltd. Delta life Insurance Ltd.

Profit Act
If as a result of any investigation undertaken by the Jiban Bima Corporation
under section 20 any surplus emerges, ninetyfive per cent of such surplus or
such higher percentage thereof as the Government may approve shall be
allocated to or reserved for the life insurance policy-holders of the
Corporation and the remainder shall be paid to the Government.

Pragati Insurance Ltd. Delta life Insurance Ltd.