North South University

Report on unethical activities by the Insurance

company and insurance holder in Bangladesh
Course: BUS 401
Section: 06
Date: 4th December, 2014

Prepared for
Barrister Ishtiaque Ahmed(ITA)
Lecturer
School of Business

Prepared by
Toufiq Asif Rahman

0930379 030

Asif Ahmed

1010202 030

Istiak Shraj Shovon

1010248 030

MD. Mustifiqur Rahman

1010427 030

Md. Ashib Iqbal

1020013030

Mohammad Tohidul Alam

Habibul Hassan

1020040 030
1020053 030

4th December, 2014

Barrister Ishtiaque Ahmed
School of Business
North South University
Dhaka

Subject: Submission of research paper on unethical activities by the company and the customer
in Bangladesh.

Sir,
We are pleased to submit herewith the research paper on ethical rights of workers in unethical
activities by the company and the customer in Bangladesh has per the requirement for BUS 401
course. We have provided our best effort to include relevant information and analysis to make
the report complete and comprehensive. This was an exciting, very useful practical exercise and
mission for us in using the information, compiling and producing them in report format. It would
have been impossible to complete this report without the guidance of our honorable faculty.

We are grateful to you for your kind guidance and suggestion provided to us time to time for
submission of the report.

Thanking You,

Toufiq Asif Rahman

0930379 030

Asif Ahmed

1010202 030

Istiak Shraj Shovon

1010248 030

MD. Mustifiqur Rahman

1010427 030

Md. Ashib Iqbal

1020013030

Mohammad Tohidul Alam

1020040 030

Habibul Hassan

1020053 030

Table of Contents
Name

Page Number

Executive Summary

Introduction

Background

Literature Review

4-6

Objective of the study

Hypothesis

Research Methodology

Analysis and Presentation of Primary Data

9-16

Case Analysis on Unethical Issue

17-23

Finding and Recommendations

24-25

Conclusion

26

Reference

27

Executive Summary
An insurance policy is a contract between the policy holder and the insurance company.
There are lots of insurance companies in Bangladesh. Almost 80 insurance companies exist in
Bangladesh. These insurance companies are divided into two types, 1. Life Insurance Company
and 2. Non-Life Insurance Company. ShadharanBima Corporation (general insurance) and
JibanBima Corporation (Life Insurance) are the only two insurance companies in public sector.

Insurance companies have two main responsibilities to their policy holders. The duty to
compensate or pay benefits for valid claims, The duty to protect the insured against any legal
actions from a policy holders perspective, insurance fraud is committed in various way,
involving insurance for the home, motor vehicles, life, business and health. If someone sued for
causing a car accident that resulted in injuries, his insurance company is obligated to defend him.
If they failed to defend the policy holder could be financially demolished.

The main problem in this sector is corruption and unfitness between insurance holder and
insurance company. Due to consumer perspective there have been chatted with insurance
company because company does not give the money in on time and fully, show many rules and
regulation but when they collect premium their behavior are not same. Due to company
perspective insurance holder customer never read the terms and condition, claim more money.

The main purpose of this report is to find out the actual scenario of unethical activates in
the insurance sector by the company and the insurance holder. This report we discus about why
customer choose unethical thinks, company why support this or help the unethical activities in
this sector.

Introduction

Insurance is basically a collective endeavor underneath that an outsized range of people

conform to share the loss that a number of of them would incur in future. This implies insurance
protects those unfortunates square measure suffering} significant money impact of anticipated
misfortunes by distributing the loss among many that are exposed to the chance of comparable
misfortunes.
General insurance could also be a mode of insurance inside that one person makes
regular payments so as that he receives a complete of money different types of accidental loss.
the strategy insurance has been evolved to safeguard the interests of people from uncertainty by
providing certainty of payment at a given contingency. The insurance principle involves be extra
and extra used and useful in trendy affairs. Not exclusively can it serve the loss / damage of any
losses it to boot offer cash edges to the individual for death or at the highest of a amount of your
time. The key objectives of the studies are to identify the problems and prospects of the ultimate
insurance in Bangladesh. The alternative objectives of this study ar to come back up with those
suggestions to beat the problems proverbial therefore on guarantee swish functioning and growth
of insurance. To know relating to the foremost effective practices of insurance of Bangladesh is
to boot another objective of this study.

Background
This report has been prepared as requirement of the unethical actives by company and
customer in Bangladesh. The report was based upon the overall insurance companys unethical
and immoral activities in Bangladesh. The report was based upon the overall insurance
companys problem and prospects in Bangladesh .We were duly approved by our course teacher
Barrister Ishtiaque Ahmed. This report will help us to know the insurance business unethical
problem and prospects in Bangladesh.

Literature Review

Uninsured risk leaves poor households at risk of serious or perhaps ruinous losses
from negative shocks. It additionally forces them to undertake pricey methods to manage their
incomes and assets within the face of risk, lowering mean incomes attained. Welfare prices due
to shocks and by past profitable opportunities are found to be substantial, contributory to
persistent poorness (Morduch, 1990; Dercon, 1996, 2004; Rosenzweig and Binswanger, 1993;
Elbers et al., 2007, Pan, 2008). Insurance has the potential to scale back these welfare prices. By
giving a payout once associate insured loss happens, it avoids different pricey ways in which of
managing the shock going future financial gain earning opportunities intact. What is more, the
safety coupled to being insured will be expected to permit the turning away of pricey riskmanagement methods with positive impacts on poorness reduction. This literature review
provides a summary of the present state of analysis on Insurance identifies key information gaps
and develops an abstract framework to tell and organize the analysis agenda of the insurance
Facility within the space of impact analysis, demand and provide problems. For the aim of this
review, Insurance is outlined in line with Churchill (2006) as associate insurance that (i) operates
by risk-pooling (ii) is supported through regular premiums and is (iii) tailored to the poor United
Nations agency would otherwise not be able to do away with insurance. The most focus of the
literature review is on voluntary insurance. different ways that} through which people or the
general public sector will insure against risks, like precaution savings, access to credit or through
public safety nets ar so not treated well during this review. However, this leads already to 1 key
omission within the existing literature: usually, {the edges the advantages the advantages of
insurance aren't compared to various mechanisms that will give insurance- like benefits,

probably in a very less expensive method, like savings, shopper or emergency credit, and public
safety nets.
Organization and personal people take of insurance to safeguard them against attainable
money losses caused by a spread of causes or surprising factors. This implies that ought to the
worst happen and these losses occur, they're going to receive money compensation from their
insurance firm. Therefore, insurance provides corporations with money protection within the
event of loss that might influence their operations. People unwilling or unable to handle their
own funds are happy to search out and outlet for his or her investment in insurance policies.
Endowment policies, useful policies, delayed annuities are bound higher variety of investment. a
personal from his own capability cannot invest frequently with enough of security and profit.
Many of the present literatures reviewed higher than clearly indicate that the insurance in
Bangladesh has not however stood on a solid footing. Several reasons are there for the stupidity
and underdevelopment of insurance in Bangladesh.
In a journal professor of DIU mentioned some heterogeneous downside and prospect of
insurance in Bangladesh, there he mentioned that our main issues of insurance are lower per
capita financial gain , poor information of agents , illiteracy , spiritual belief , lower awareness ,
low savings, lack of continuity, shortage of fund , lack of remainder, negligence policy holder,
restriction, poor services to shoppers, image, red tapism to get compensation, lack of latest
product, low return, ancient promoting ,traditional insurance act, restrictive insurance act , nature
of impalpability, inadequate coaching, advantage of pack, discriminatory perspective, lack of
responsibility, lack of advertisement, inability to unravel the issues, quality service, dearth of
underwriter, lack of confidence, inadequate government support, undue promotion , invented

info offer by the agents, restricted operational areas, licensing problem, rigid premium,
backwards of mentality.
In associate interview with daily sun, tribal sheikh Kabir Hossain , Chairman of the
BIA same back to the question regarding insurance sector that The insurance sector will play a
vital role within the growth of the economy of the country because it will accelerate the event
method. The world in different countries is way stronger with policy supports because it will
guarantee a property development of the economy.
The business in our country lacks attention of the policy manufacturers and also the
previous governments neglected the world, however the current government below the
leadership of Prime Minister tribal sheikh Hasina has given a lot of attention to the insurance
sector.

General insurance is a type of insurance in which one person makes regular payments so
that he receives a sum of money different types of accidental loss. The process insurance has
been evolved to safeguard the interests of people from uncertainty by providing certainty of
payment at a given contingency. The insurance principle comes to be more and more used and
useful in modern affairs. Not only does it serve the loss / damage of any losses it also provide
financial benefits to the individual for death or at the end of a time period.

Objective of the study

The key objectives of the studies are to identify the problems and prospects of the
General insurance in Bangladesh. The other objectives of this study are to generate some
suggestions to overcome the problems identified so as to ensure smooth functioning and growth
of insurance. To know about the best practices of insurance of Bangladesh is also another
objective of this study.

Hypothesis
We thought the ethical issue on insurance by the company and customers. Most of the
customers are want to claim more money from the company and company want to reduce or less
give the claim money in Bangladeshi prospective. The unethical actives doing by the customer is
most because all time the claim more money before the complete time. The third parts are all
time benefit from the both sector

Research Methodology
To prepare the thesis both primary and secondary methods are use. Secondary sources of data
have been used for data requirement of the thesis. To collect the secondary sources of data,
internet and different articles published in the journals and magazines have been used

Secondary sources are:

Text book s on insurance

Insurance journals

Reference books on insurance

Internet books

Annual report of insurance

Primary Sources:

The primary data were collected through interview with aid of an interview schedule. A total
number of 50 respondents randomly selected for survey question and one manager interviewed.
The sample respondents comprised who is did insurance in Bangladeshi and Multinational
Insurance Companies.

Analysis and Presentation of Primary Data

We designed a questionnaire consisting of fifty, of which nine were close-ended, and the
remaining liked skill and open end dent. For my target group, which were face unethical issues
by the customer or the insurance company? We are collected a total number of 50 respondents
randomly selected for survey question and one manager interviewed. The sample respondents
comprised who is did insurance in Bangladeshi and Multinational Insurance Companies.

Number of Respondents

50

Male

38

Female

12

Average age (in years)

36.5

What types of Insurance you have?

18
16
14
12
10
8
6
4
2
0
Life insurance

Savings &
Retiremen

Accident &
Health

Properties
insurance

other

In this chart most of the people are doing life insurance and saving insurance because in
our country people want do make some money like an investment company as an insurance
company. Now a days people are more influence to take insurance for their health and property
issue also. Because so many accident are happened recently like fire, flood earth quack etc.

In which company you are did you insurance?

25

20

15

10

0
Metlife Alico

Jiban Bima
Corporation

Fareast Islami
Life Insurance

Delta Life
Insurance

Other

In this chart we see that Metlife Alico have a major market share in insurance sector
because this is the only one multinational company in Bangladesh, the other all are national and
Jinon Bima only one is the Government insurance company people are more believe on this two
company. Other hand so many companies have also in Bangladesh market but not that much
customer.

How you pay insurance premium?

By direct company

By company representative

By Bank

10

15

20

25

30

Most of the people are give their premium by the bank because the Alico and Jibon Bima
collect their premium by the bank but the other company collects their premium by the
representative. Thats why many times missing the premium of the insurance and at last so many
customers claim the money from the company but the company did not pay the money.

Are they returned your insurance money on time?

38%

62%

Yes
No

In this case most of the company did not return the customer money on time. They said
so many procedure they have to fulfill and they inspection on that after that they give the money
to the customer. Other handsome company maintains this very well because of their reputation
and so many companies did not returned full money because of late payment of premium.

Are the insurance company did any unethical actives with you?

34%

Yes
No

66%

In this case 66% people said that the company doing so many unethical activities
done by the company. Other hand the company said that so many people are intentionally
unethical activities by the customer. They most of the time claim more money for their accident
and natural disaster. Customer does not read all the term and condition of the insurance.

Social problems in insurance you have been face?

25
20
15
10
5
0
Less Public
awareness

Centralization
Low awareness
Illiteracy

There are some social problems in insurance company in Bangladesh. Less

awareness of the customer is one of the most points. The insurance company did not give the
proper information to the customer. The whole system is centralizing in to the one place. In
government insurance company most of the employees are coruptated. The illiteracy is the one
of biggest problem in our society. The companies are taken huge money from the public by
citing.

Bangladeshi insurance companies doing unethical practices intentionally?

40
30
20
10
0
Strongly Agree

Agree
Moderate

Disagree
Strongly
Disagree

In this case most of the people think that its doing by the company intentionally and
company people told this most of the customer did unethical activities intentionally for some
personal benefit. But most socking thinks is the both party relationship is not good and trust
word. People do not believe the insurance company.

Interview with Metlife Allico Agency manager

In order to conduct an in depth analysis, several insurance company employee were interviewed
and a variety of questions were asked to them in ethical and unethical activities by the customer
in Bangladesh. Some major intercepts from the interview of an agency manager are described
below.

Interview: Md Mashiur Rahaman

Metlife Alico, Mashiur Agency,
34-Station Road (2nd floor)
Mymensingh, Bangladesh.
Mobile Number: 01712-284743

Interviewer: What do you think about insurance company in Bangladesh?

Md. Mashiur: There are so many insurance companies now work in Bangladesh. People are
now more interest to take insurance and so many type of insurance are available here.

Interviewer: Your Company in what types of insurance provide in our customer?

Md. Mashiur: Our Company only works on the life insurance. Our company is a multinational
company. Our standards are very high from the other company and we try our best to maintain
our standard, we give our customer best service in Bangladesh in life insurance sector.

Interviewer: Is there any unethical demand by the customer?

Md. Mashiur: No, because our all customer are very well know about our company role and
regulation. We are very tricked on that because we never give any false promises to our
customer.

Interviewer: Do you know any unethical activities by the customer or company?

Md. Mashiur: I already said our company is very tricked on the ethical issue of the customer.
Our main service is satisfied the customer but it must be in proper way. But I heard there so
many companies have no any registration and they continuously give false promise to the
customer and chit with them. I heard that there are some company never gives the claim money
on time. Never tell the terms and condition to the customer, hide the information, our company
are very stacked on that. But very few times it will be changed because the people are more
conscious about the insurance and the insurance company. Our company is working on that; we
are giving all information about life insurance to our customer before the insurance.

Case Analysis on Unethical Issue

Case: 1
In 2001 a person starts his life Insurance in Poddah Life Insurance Company. So he checked
many company and chose this company because the company people influenced him nicely.
They showed all the information to the persons and show their document, their agreements
and also their compensations policy. They also gave some example about other insurance
company and their policy and told him those companies unethical doings so that he fell save to
join in their life insurance policy. The people relay on their policy and talk about their payment
system and their code of conducts. The manager described him about all the things, like he had
to pay a minimum amount of money at their selecting time period and then when he will die his
family have to played a large amount of money and the amount was also showed. Then the
person chose their one package and signed in to their agreements.
But unfortunately in 1008 the person died in a road accident on Dhaka Chittagong rods. After
his death his family claimed the money which was agreed with insurance company. After than
the company send a team to investigate the incident and gave a time period to give the money.
But day to day gone and they don't call. They gave much kind of unethical causes. And finally
after 2 years the played money but not the full amount. And the family member ware tried to
collect their deserved money.

Their unethical issues:

1st of all the showed a false information through their customers which ethically wrong
doing.

2nd they influence an innocent person to agreement with them.

They did a false agreement with their customer.

They did not get back the money in a proper time.

The customer did not got the full amount of money from then.

Our perceptions:

I think the company has some problem in their policy.

They should clear about the information through their customer.

If they want to keep their good reputations in the market than they should not delay the
payment of their customers.

If they have any problem to give money in proper time than they should described it
clearly through their customers.

They should make a fund so that they get money in a right time in any problematic time.

On the other hand the first worlds countries life insurance Companys agreement of
policy is very clear and their payments are always in a right time. And if they delay than
they give extra charge for their let so that the customer can trust their company.

Case: 2
I went a insurance company and ask about the customers wrong doing, than the employ
described about the stories about a person. But there was a limitation which is that he did not
mansion the person's name or identity, because that was not of in there code of conducts.

At 2001 A person who was a big businessman in the country. He ask about the life insurance
policy. The manager of the insurance company described all there policy, compensation and
other things. He said he will pay the hire compensations because he is a business man and all

time his life was in a risk. So he will pay the hire amount of money to live safely. So he sign-up
there from and did agreement with their policy.

But the thing is that, that was a eye wash, because the men was a cancer patient and he was in
3rd stages. Which information he hide from the insurance company. In the insurance company
policy the customer have to give the medical test about his health. He showed his false medical
report which was not a original one. The insurance company did not check the information
properly.

After 1 year the person died and his family claimed the amount from the insurance company.
The insurance company was shocked and investigates the things and they can gassed the
matters. And the insurance company denied to the full payment because of their false
information. But the family members of these persons take actions in the cote and hire a lower
to win the case. And there lawyer also showed the false medical report and won the case. And
the insurance company forced to cleared there full payment.

Unethical issues:

The persons family gives the false information through the insurance company.

They made a false medical report which was a wrong doing.

They were powerful and they misused their powers.

Our perceptions about the case:

The insurance company should proper verify all the medical reports to ensure about
their cline fitness.

I think they had lace of misguiding which in not a good sine after all.

To run a insurance company monitoring is one of the most important thins and they
have some problem in their monitoring policy.

They could not hire a good lawyer against their cline because they were over confident
which not a good thing to run a company is.

Look at the first world countries life insurance they are well organized and there were
no chance to violate their rules and regulations and no chance to show any kind of false
information.

Case 3:
Unethical Practice on Insurance Company in Bangladesh:
1. Mis-selling of insurance has been the big issue of the insurance industry in Bangladesh.
This is the area people of Bangladesh are easily in trap and its an area of serious
concern. If we see one thing Bangladesh insurance policy holder is very than other
modern countries. The mis-selling of insurance which hampers the further growth of the
industry in Bangladesh. Like a person took a loan from bank or other financial institution.
At the same time he/she would take the insurance policy without knowing the details of
that policy. The information customers know is very low. That is mis-selling and It is not
confined to the mis-selling of insurance products by the agent, corporate broker, bank or
through any other distribution channel. Two types of mis-selling insurance company
occurred and one is commission based and another is peoples naive about real purpose
of insurance.
Reason for this unethical activity: There are some basic reasons of mis-selling
insurance. These are:
poorly designed products,
lack of adequate explanation,
inaccurate forecasting of risks,
Not being provided information of the available options which would suit a
particular need and
Poor customer support.

Recommendation: Firstly, for the commission-based incentive to agents. Agency

network is not fully professional now. Most of the people work as a part time job and
low business per agent make the entire agency more difficult to customers. There have
been many instances where customers have bought a policy on the advisor's
recommendation, and ended up feeling aggrieved as either the policy is unaffordable, or
it does not match their long-term financial goals. So its important to all that follow
advisors recommendation but also they should to follow their own recommendations.
Secondly Bangladeshis are naive about the real purpose of insurance. People when buy a
product to save their tax that time insurance company give insurance policy but the rate is
to high where show that they are giving tax rebate. Unsuspicious customers usually end
up with wrong and inadequate insurance policy. So people should know the details of an
insurance policy.
If we relate it through the abroad insurance company they provide the high performance
workers who are more professional to their work and Bangladeshi insurance company
should follow this policy.
2
No Coverage for the Sick:
Life insurance Company of Bangladesh are more costly policy make in order to save the
company money. There was a news that a person who took a life insurance policy for any kind of
sickness. But that person survives with the cancer insurance company did not allow any coverage
for the sick.
Reason:
Only one reason behind this and it is the treatment of cancer is more expensive.
Recommendation:
1. Policy should be clearer.
2. Should to coverage for any sick.
If we saw the international insurance companies, if anyone do any insurance policy against
sickness they cover the whole cost and Bangladeshi insurance policy should follow this.

Case 4:
One of the more popular insurance fraud scams involves vehicle crashes that result in both
legitimate and fake/exaggerated injuries.
Death Insurance: There was a man named John Darwin, faked his death in a canoeing accident.
He had been stealthily living in his house and the house next door, while his wife claimed the
money on his life insurance. They were both sentenced to six years of jail, but they were released
on probation.
Home and belongings insurance: Mr H was a self-employed plumber. In January, his home
was burgled and he made a claim under his home insurance policy, which the firm duly paid.
After a few months later, his van was broken into and a number of personal possessions were
stolen, including the tools he used for his work. He made another claim to the firm under the
personal possessions section of his home contents policy. During the course of its enquiries, the
firms loss adjusters insisted that Mr. H substantiate all his losses with original purchase receipts.
Mr. H was unable to find all the receipts, so he asked his friend to make a false one for him.
When the firm discovered the fake receipt, it "avoided" the policy in other words, cancelled it
from the start. The firm not only refused to pay for the items stolen from the van, it also tried to
recover the money it had previously paid out to Mr. H for his earlier burglary claim.
The firm accepted that the theft from the van was genuine. Mr. H had been foolish to obtain a
fake receipt but he was not dishonestly trying to obtain something to which he was not entitled.
The loss adjusters had, in fact, been rather overzealous in insisting on strict proof of purchase for
all the items stolen.
The case held that insurers should only be able to "avoid" a policy for fraud where the insurers
ultimate liability was affected, or when the fraud was so serious it enabled the insurer to deny the
policy for fundamental breach of contract. We concluded that the fair and reasonable solution
was for the insurer to reinstate the policy and pay the claim. In any event, it was unlikely that the
firms ultimate liability would be affected by the fraud, as Mr Hs work tools were specifically
excluded from the home policy. Home policies often exclude cover for contents or possessions
that are for business rather than personal use.

We also pointed out to the firm that even if Mr H had been guilty of fraud, it would only have
been entitled to "forfeit" the policy from the date of the current claim, leaving the earlier burglary
claim intact. It was not entitled to recover previous payments for valid claims.

Our perceptions about the case:

Many insurers have Special Investigation Units, or SIUs. Employees who work in SIUs
generally have backgrounds as detectives, police officers and medical personnel. They're capable
of performing an amazing array of tests and checks to bust anyone trying to commit fraud. Here's
just a sampling of what they can do:

Conduct burn pattern analyses and computer simulations on cars and homes damaged by
fire to determine if the fire was intentionally set or accidental.

Determine if a claimant's injuries match a reported accident.

Investigate damaged vehicles to see if the resulting dents and scratches match with the
accident report. Also, use rust analysis and wear patterns to see if car's damage is actually
from a new accident or old accident.

Conduct financial reviews on claimants. Auto or homeowners claims from those who are
behind on car or mortgage payments are immediately flagged as potentially fraudulent

Finding and Recommendations

To improve the life insurance service to customer and stop unethical activities in the life
insurance market the insurance company can follow the following recommendationI.

With supportive of relevant agencies which will provide training to the life insurance
producers like insurance agents, development officers , to improve their insurance
marketing skills . Which will create value for the business, create new customers, retain
existing customers.

II.

Trained and skilled insurance producers like insurance agents and development officers
are effective insurance marketer who can improve life insurance sector.

III.

The seminars and symposiums conducted at different potential locality where prospective
customers are likely to create awareness among people.

IV.

Increase research and development program which will identify new marketing
opportunity. Life insurance companies in Bangladesh should actively more research and
development programs in the fields of consumer research, service research. In order to
find out the operating problems in life insurance and find an effective resolution.

V.

Commitment is also consider one of the important human quality which is lacking
reportedly is lacking in some insurance personnel. Commitment toward the profession
may improve the service offered the in suredand also have a positive effect in profession
and improve the growth of insurance sector.

VI.

New and improved insurance should be introduced. Because existing law is not enough to
improve the condign of life insurance market.

VII.

Professional code of ethics should be standard to excellence. Because who are less
professional and whose ethical standard is not standard to excellence may cause damage
to the profession should develop such an ethical standard that should acceptable to all.

VIII.

There should not be so many layers in life insurance companies between the branch
office and the agents and one field officer in between the corporation and the agents
should replace this unnecessary multi-tier organizational set up. This is essential for
reducing the expenses that has gone beyond the tolerable limit. Special committee on
insurance has also suggested this.

IX.

Fake agents and fake employees of agents who involved in misconducts should be
eliminated and selection of agents should be fair. Appointment of too many agents in a
particular area should be stopped.

X.

Full- time agencies should be encouraged and part-time agencies should be stopped.

XI.

There should be all in all campaigning whole country to make people aware of the
helpfulness and sense of buying insurance.

XII.

The government should monitor the functions of insurance companies, their performance,
and seize the license of companies that are engaged in corruption. The government must
take necessary responsibility in its own hands and must ensure proper application of law.

XIII.

The benefits of insurance must not be focused only in the urban areas. Ruler area should
also development, and companies should expand their operations in the rural areas.

XIV.
XV.
XVI.

Should provide quality service or try to provide quality service if not ensure it
Companies should set up its training program for the policyholders
The policy holders worried about the settlement of claims. Normal people also consider it
as a key limitation. Therefore, insurance companies should settle the claims as quickly as
possible.

XVII.

Since life insurance business is not popular among low-income groups, we should focus
on industrial labor force, which ultimately will have greater flexibility among rural
people.

Conclusion
At present insurance is too much important to the business and individual sector.
Most of the companies provide more or less same services. For this reason the competition is
increasing day by day between the insurance companies. On the other hand some new insurance
companies are going to start businesses in the competent market. Make more profit company and
the customer doing so many kind unethical activities. But its very badly effect the insurance
business and some time its hamper the personal life of the customers also. Insurance business
also faces many problems. So if we develop economic condition as well as overcome the
problems, it will help a lot to flourish this business in our country.

Reference
http://scholar.google.com/

Chowdhury, T. A., Rahman, M. I. & Afza, S. R. (2007). Perceptions of

the Consumers towards Insurance Companies in Bangladesh --- A Study
Based on the SERVQUAL Model. BRAC University Journal, 4(2): 55 -66.

Consumer Perceptions of Service Quality, Journal of Retailing, Spring, pp.

12-40.
Parasuraman, A, Zeithaml, V. A, & Berry, L. L. (1990) Delivering
Quality Service: Balancing Consumer Perceptions and Expectations. New
York: The Free Press.
http://www.jdsupra.com/legalnews/life-insurance-companies-slappedwith-fi-64283/
http://www.complaintsboard.com/complaints/metropolitan-life-insurancecompany-disability-insurance-fraudulent-and-other-unethical-practicesc697618.html

http://www.brighthub.com/money/personal-finance/reviews/41730.aspx

APPENDIX
A Questionnaire on the unethical issue on the insurance company
The following survey contains questions about the ethical issue on the insurance company . The
findings gathered from this survey will be incorporated into a research paper. We would appreciate your
honest answers to the questions. Thank you for your time.
Gender: __________ Age: _________
1. Did you have any Insurance?
a) Yes
b) No
2. What types of Insurance you have?
a)Life insurance b) Savings & Retirement c) Accident & Health d) Properties insurance
e) other
3. In which company you are did you insurance?
a)Metlife Alico b) Jiban Bima Corporation c) Fareast Islami Life Insurance Co. Ltd d)Delta
Life Insurance Co. Ltd. e) Other .
4. How you pay insurance premium?
a)By Bank b) By company representative c) By direct company
5. Are they returned your insurance money on time?
a) Yes
b) No
6. How many time they take for returned for your money?
a)On time b) 1-2 week c) 2-5 week d) 1-5 month e) 1 year or more
7. Are the insurance company did any unethical actives with you?
a) If yes, what
b) No
8. Social problems in insurance you have been face?
a)Less Public awareness b) Centralization c) Low awareness d) Illiteracy
9. Economic Problems you have been face?
a)Poor financial position of the insurance companies b) Higher cost of business c) Lower
per capita income d) Low Savings
10. The other problems you face from insurance company?
a)Lack of exposure b) Absence of business ethics c) Lack of information technology d)
Insufficient service.
11. Bangladeshi insurance companies doing unethical practices intentionally.
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree

12. AnyotherComment
.

***Thanks for your cooperation***