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AssignmentCourse Name: Principle of Insurance
Course Code: FIN-123
Submitted To:
Shakila Zerin Bony.
Senior Lecturer Dept’ Of Business Administration. Stamford University Bangladesh.
Submitted By:
Submitted Date: 09/08/2015
Topic: overall performance analysis of
Pioneer Insurance Company Limited.
Name IDNiloy Saha BBA 054 16669Rimon Khan BBA 054 16679Sonia Akter (Tumpa) BBA 054 16690Saiful Islam (Saif) BBA 054 16695
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Letter of Transmittal
August 20, 2015 Shakila Zerin Bony.Senior LecturerDept’ Of Business Administration. Stamford University Bangladesh.
Subject: Submission of the ‘Overall performance of Pioneer Insurance Company Limited.
Dear Madam, This is the report for your assignment about overall performance about a insurance company. We have tried to work hard to make it done as per your instructions. We have prepared the report to cover my topic “Pioneer insurance company in Bangladesh”. We tried to analysis the overall situation regarding this topic. The study is about the organizational background, vision of the company, overall function of the organization, types of insurance they offer, amount of premium this insurance, term and condition of this insurance etc. This is obviously a helpful process of learning by gaining practical knowledge.
All information used in this report is collected through websites, members report. Our level best trying has given here to carry out a meaningful and effective study on my topic to make our report efficient enough.
In this period, we have developed some good ideas regarding the insurance policy sector. The study will help us a lot to develop my career in our upcoming future. Thank you for giving me this opportunity. We shall be obliged if you kind enough to approve this effort.
Yours Sincerely,Niloy Saha. ID: BBA 054 16669Rimon Khan ID: BBA 054 16679Saiful Islam (saif) ID: BBA 054 16695Sonia Akter (Tumpa) ID: BBA 054 16690
Stamford University Bangladesh.
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Content…
No: Name of content Page No:
01 Introduction of Insurance 04
02 Organization Mission and Vision 06
03 Organization Profile 07
04 Overall function of the organization 08
05 Types of insurance they offer 15
06 Amount of Premium of insurance
07 Trams and condition 19
08 Reference 22
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INTRODUCTION TO INSURANCE
We read our daily newspapers stories about people being involved in road
accidents, of aero planes crashing, buildings burning down, theft of goods, peoples
being injured at work and many other mishaps. Behind each story lies a measure of
personal tragedy and anxiety for those closely involved. Yet behind each one is
also the vast, sophisticated mechanism of insurance.
From an individual point of view, insurance is an economic device whereby the
individual substitutes a small certain cost (the premium) for a large uncertain
financial loss (the risk insured against) which would exist if it were not for the
insurance contract.
The primary function of insurance is the creation of the counterpart of risk. Which is
security. Insurance does not take away the risk. The insurer does not guarantee that
the event insured against will not happen . Whatever good the management and
staff, losses do occur. The “Titanic” was unsinkable and yet was lost in the very first
voyage. Plants can be operated for many years without accident and then be totally
destroyed by Fire. The house may still burn down, the car may still be involved in
an accident but at least a large element of the cost involved will be met by the
insurer.
GENERAL INSURANCE BUSINESS IN BANGLADESH
Before the independence 49 insurance companies were functioning most of those
were owned by either Pakistanis or by other foreign nationals. After the
independence of Bangladesh Government nationalized all the insurance business
which were operating in Bangladesh, mostly owned by West Pakistanis and formed
the subsidiary corporations one for General Insurance and other for Life insurance
business under the controlling corporation the Bangladesh Jatiya Bima Corporation.
Later in 1973, Sadharan Bima Corporation was formed for transacting all General
Insurance business and Jiban Bima Corporation for Life Insurance business.
To bring efficiency into the sector and to provide quick services with better
customer care, Government passed a law in 1984 allowing the formation of Private
General Insurance Companies.
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Sadharan Bima Corporation was given the monopoly to underwrite the business of
public and private sector both. Moreover Re-insurance of Private sector companies
were made mandatory with Sadharan Bima Corporation.
The Premium rates in Bangladesh are not yet opened up and are based on Tarrifs
prepared by the Central Rating Committee headed by the controller of insurance,
Government of People’s Republic Bangladesh. All are bound to follow the Tariffs.
EFFECTIVE INSURANCE LEGISLATIONS IN BANGLADESH
THE INSURANCE (AMENDMENT) ORDINANCE, 1984 (Ordinance No. L of 1984)
The Government of the People’s Republic of Bangladesh allowed Private Insurance Companies to operate on 11 August, 1984.
THE INSURANCE CORPORATIONS (AMENDMENT) Act, 1990
50% Public Sector Business was allowed and distributed to Private Insurance Companies by SBC with effect from 13 February, 1990.Private Companies were allowed to do 50% reinsurance with SBC and 50% outside SBC with effect from 13th February, 1990. Payment of Commission to the Agents prohibited from 13 February 1990.
THE INSURANCE (AMENDMENT) Act, 1993
Payment of Commission to the Agents as per Insurance Act, 1938 reintroduced from 14 March 1993.
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Organization MISSION
To become the leading insurance company of Bangladesh excelling in every aspect of its business and in delivering its obligations as a good corporate citizen to its clients, employees, shareholders, public and to the country.Caring for you, forever…
We Strive for.....
Best Service to our Clients.
Protection of Investment of Shareholders
Welfare of our Employees
Ethical and moral social order.
Transparency in Disclosures.
Good governance for us & all around us.
Organization VISION
To Foster the industrial & Economic growth of Bangladesh.
To optimize the retention of Bangladesh business.
To work towards minimization of losses and develop Risk Management Technologies.
To function as a strong and dynamic non-life insurer.
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COMPANY PROFILE...
Pioneer Insurance Company Limited, sponsored & founded in 1996, is a publicly traded
company by shares having authorized capital of Tk. 1 (One) Billion/USD 12.50 Million &
paid up capital of Tk. 508.95 million/USD 6.53 Million. The Company is enlisted with
Dhaka Stock Exchange and Chittagong Stock Exchange and has been declaring dividend
every year since inception. The Company has been assigned “AA” by Credit Rating
Information and Services Limited of Bangladesh. AA rating stands for “very high claims
paying ability. Protection factors are strong. Risk is modest, but may very slightly over time
due to underwriting and/or economic conditions.
Current Chairman M. Anis UD Dowla, Chairman of ACI Group, former Chairman Mr.
A.K.M. Rahmatullah, Member of the Parliament & Managing Director of Apex Tannery Ltd.
former Chairman Mr. Tapan Chowdhury, Managing Director, Square Group & Ex-Adviser of
the Care Taker Government of People’s Republic of Bangladesh, former Chairman Mr. Syed
Manzur Elahi, Chairman Apex Group & Ex-Adviser of two Care Taker Governments of
People’s Republic of Bangladesh are the most successful business entrepreneurs of the
country.
The company has a good number of dedicated and highly professional employees supported
by qualified, experienced & technically sound executives. The Managing Director of the
company, Mr. Q.A.F.M. Serajul Islam who is a holder of Diploma in General Insurance from
Bangladesh Insurance Academy, has long experience in Insurance and Reinsurance. Prior to
joining the Company he was Deputy Managing Director of Pragati Insurance Ltd. and Deputy
General Manager of Sadharan Bima Corporation.
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Overall and overall Function of the organization..COMPANY AT A GLANCE
Established 1996
Registered Head Office Symphony (5th Floor),Plot # SE(F), 9 Road # 142, South Avenue, Gulshan-1, Dhaka-1212, Bangladesh.Tel: 8817512(Hunting), 8816561 Fax:+88-02-8817234, 8817264Email : [email protected], [email protected]
Number of Branches 40
Number of Employees 525
Authorized Capital 1 (One) Billion (Taka) / USD 12.50 Million
Paid up Capital 508.95 million (Taka) / USD 6.53 Million
Member of International Organization
Federation of Afro-Asian Insurers and Reinsurers (FAIR) Association of Insurers and Reinsurers of Developing Countires (AIRDC) Associate Member (Life) : East Asian Insurance Congress (EAIC)
INVESTMENT
InvestmentFigures in Crore
(Taka)
Bangladesh Govt. Treasury Bank 2.50
Fixed Deposit with Scheduled Bank 76.39
Share Investment :
Mutual Trust Bank Ltd. (2,59,79,110 shares) 10.25
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InvestmentFigures in Crore
(Taka)
The ACME Laboratories Ltd. (10,00,000 shares) 5.20
Central Depository Bangladesh Limited ( 4,56,945 shares) 0.26
EXIM Bank Ltd. 0.01
Grameenphone (573,100 shares) 4.24
Malek Spinning Mills Ltd. (12,10,000 shares) 2.50
17 Nos.General Insurance Co. (5,137 shares) 0.01
Secondary share 1.00
Grand Total (Taka) 102.36
FIXED ASSET:
Description Taka
Furniture & Fixture 4,240,643.00
Office Machinery 1,358,637.00
Air Conditioner 4,060,321.00
Computer 2,872,728.00
Telephone Installation 757,345.00
Electric Equipment 888,476.00
Sign Board 422,773.00
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Description Taka
Others 19,007,926.00
Office Space:
01. V.I.P. Road Branch, Dhaka.
City Heart, 9th floor, 67 Naya Paltan, Dhaka-1000
7,375,661.00
02. Imamagonj Branch, Dhaka.
Tajmahal Tower (3rd floor), 66 Moulvibazar Dhaka-1100
1,03,40,000.00
03. Moghbazar Branch, Dhaka.
Gulfesha Plaza (4th floor), 69 Outer Circular Road, Near Moghbazar Chourasta, Dhaka -1217
10,593,440.00
04. Chittagong Zonal Branch, Chittagong.
Banani Complex (Cinema & Shopping Ltd. Tower-B, building(2nd Floor), 942/A, S.K. Mujib Road , Agrabad C/A, Chittagong.
7,65,28,948.00
05. Khatungonj Branch, Chittagong.
80, Khatungonj, 2nd floor, Chittagong-4100.1,73,45,500.00
Total Amount 155,792,398.00
PREMIUM INCOME
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YearFigures in Million
(Taka)Growth(%)
1996 23.14
1997 85.47 269%
1998 105.33 23%
2005 245.41 38%
2006 301.16 23%
2007 385.20 28%
2008 665.50 73%
2009 859.45 29%
2010 1252.37 46%
2011 1598.60 28%
2012 1701.27 6%
2013 1,874.91 10%
2014 2,135.47 14%
CLAIMS PAYMENT
Claims statement from 2009 to 31st March, 2015.Sl No. Class of Loss Name of Insured Year Settled Amount (Taka)
1. Fire Aswad Composite Mills Ltd. 2013 580,000,000
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2. Fire Zaber & Zubair Fabrics Ltd. 2014 106,695,9543. Fire Matin Spinning Mills Ltd. 2008 92,944,7094. Fire Asia Composite Mills Ltd. 2012 86,090,7075. Marine Hull Ratanpur Shipping Line Ltd. 2012 75,372,2566. Fire Square Consumer Products Ltd. 2007 75,172,5827. Fire Vidyut Bangladesh (Pvt.) Ltd. 2009 69,836,2398. Fire Natore Agro Ltd. 2014 57,672,8149. Fire ACI LTD. 2011 50,480,170
10. Fire Confidence Edible Oil Ltd. 2012 50,456,87511. Fire Apex Footwear Ltd. 2002 46,817,01912. Fire Sun Gravures Ltd. 2006 45,597,51813. Fire Pioneer Apparels Ltd. 2006 40,409,33114. Fire Shahnewaz Jute Mills (Pvt.) Ltd. 2012 39,862,09115. Fire Markup Cotton Spinning Ltd. 2011 38,143,39916. Fire Shahnaz Jute Beiling (Pvt.) Ltd. 2013 36,466,87517. Misc. Regent Power Ltd. 2012 35,966,10918. Fire Abul Khair Steel Melting Ltd. 2014 34,458,47519. Fire L.R. Jute Garden Ltd. 2013 28,262,57620. Marine Hull Ratanpur Shipping Line Ltd. 2012 31,661,79021. Marine Cargo GBB Power Ltd. 2010 26,817,138
Figure in BDT
2009 2010 2011 2012 2013 2014 2015
Fire 147,981,702 164,328,954 194,813,724 214,397,260 1,632,154,476 244,249,808 94,483
Marine 16,960,608 26,368,309 117,708,689 33,342,989 59,381,261 19,487,876 1,457,337
Motor 48,109,616 60,713,982 59,769,430 61,114,092 64,388,903 30,698,801 739,133
Misc. & Accident
3,306,366 15,546,843 18,058,859 86,402,014 18,478,853 6,411,246 616,459
Total Tk.= 216,358,292 266,958,088 390,350,692 395,256,055 1,774,403,493 300,847,731 2,907,412
Total No. of Claims Settled
709 866 903 981 1007 650 47
Claims Outstanding
Nil Nil 8 4 73 220 28
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Company’s Reinsurers:
Sadharan Bima Corporation
ARIG Re., Bahrain Asian Re., Thailand AU Re., Syria African Re., Mauritius Allianz, UK & Singapore Bacon Lioyds Underwriters, Hong Kong Best Re., Malaysia GIC, India ICICI Lombard, India
Ingosstrakh, Russia Labuan Re., Malaysia Kenya Re., Kenya Kiln, Lloyds Underwriter Moscow Re., Russia Malaysian Re, Malaysia NICL, India New India, India Prestige Re., Nigeria PTA Re., Sen Re., Senegal Sompo Re., Japan Trust Re., Bahrain Unity Re., Russia United Insurance., India
Company’s Brokers:
Adyta Birla, Mumbai J.B Boda, Mumbai & Singapore JLT Malaysia., Malaysia Marsh, Singapore Protection, Bahrain Limtex, Kolkata, India Reliance Brokers, Mumbai Tysers, London.
Company’s DEAL...
Foreign Bank:
Commercial Bank of Ceylone Citibank N.A. Hong Kong & Shanghai Banking Corporation Ltd. Standard Chartered Bank Habib Bank Ltd. National Bank of Pakistan
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State Bank of India
Bangladeshi Banks:
Sonali Bank Ltd. Janata Bank Ltd. Agrani Bank Ltd. Rupali Bank Ltd. Bangladesh Development Bank Bangladesh Krishi Bank & Bangladesh Shilpa Rin Sangstha Arab Bangladesh Bank Ltd. Al-Arafah Islami Bank Bangladesh Ltd. Bangladesh Commerce Bank Ltd. BASIC Bank Ltd. BRAC Bank Ltd. Bank Asia Ltd. Dutch Bangla Bank Ltd. Dhaka Bank Ltd. Eastern Bank Ltd.
Exim Bank Ltd. I.F.I.C. Bank Ltd. ICB Islami Bank Ltd. Islami Bank Bangladesh Ltd. Mutual Trust Bank Ltd. Mercantile Bank Ltd. National Bank Ltd. National Credit & Commerce Bank One Bank Ltd. Prime Bank Ltd. Pubali Bank Ltd. Premier Bank Ltd. Rajshahi Krishi Unnayan Bank Social Islami Bank Ltd. South East Bank Ltd.
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Types of Insurance, PRODUCT & SERVICES the company Offered..
FIRE
Consequential Loss Due to Fire InsuranceA fire might do very little damage to the buildings or the contents, yet the interruption of business might be very significant. Consequential Loss Policy indemnifies the insured for loss of net profit, standing charges and increase in cost of ...
Fire and Allied Perils InsuranceFire and Allied Perils Insurance provides comprehensive cover in respect of loss of or damage to property against fire, lightning and explosion of boiler or gas works used for domestic purpose only. To further safeguard the interest of the ...
Hotel Owners All Risks InsuranceThis is specially designed to cater to all the insurance needs of a hotel owner. This policy has been adapted from the wording prevalent in international markets; as such coverage provided by it meets the requirements of management agreements, ...
Household InsuranceTo live in one's own home is cherished by every one of us. But it is very hard to retain a house, which is exposed to several risks such as riot and strike damage, malicious damage, atmospheric disturbance, earthquake, explosion, impact damage ...
Industrial All Risks InsuranceAll Industrial Risks having overall sum insured of Taka 200 million and above in one or more locations in Bangladesh shall be eligible for Industrial All Risks Policy. The Insurance provides comprehensive cover in respect of loss of or damage to ...
MOTOR
Act Only Liability InsuranceCover Act. Liabilities viz, death/bodily injury and damage to properties as per Motor Vehicle Amendment Act, 1991.
Comprehensive InsuranceCovers loss or damage to the motor vehicle and or its accessories whilst thereon by fire, explosion, self ignition, lighting, burglary, housebreaking, theft, riot & strike, malicious damage, terrorism, earthquake, flood, typhoon, hurricane, ...
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Increased Liability InsuranceCover liability in excess of no fault liability limits viz. BDT. 20,000 (max) for death or bodily injury and BDT. 50,000 (max) for property damage under Standard Comprehensive and Act Only Liability insurances.
AVIATION
Deductible InsuranceHull InsuranceLiability InsuranceWAR Insurance
ENGINEERING
Boiler and pressure Vessels InsuranceContractors All Risks Insurance (CAR)The basic concept is to offer comprehensive and adequate protection against loss or damage in respect of the contract works, construction plant and equipment and/or construction machinery, as well as against third party claims in respect of ...
Contractors Plant & Machinery Insurance (CPM)This is an insurance of contractors' plant and machinery on an annual basis. It covers any loss or damage occurring at works, at rest or during maintenance operations and is limited to a specific construction site.
Deterioration of Stock Insurance (DOS)Deterioration of Stock in Cold Storage insurance is designed to meet the requirements of those who want to insure their stocks against deterioration due to temperature rise while in cold storage as a result of breakdown of refrigerating machinery ...
Electronic Equipment Insurance (EEI)This insurance provides cover for loss or damage to all electrical systems/equipment which generally have only a moderate power requirement while such equipment is at work, at rest or during maintenance operations. The Policy also covers cost of ...
Energy Risks Insurance (Offshore & Onshore)Erection All Risks Insurance (EAR)This branch of Engineering Insurance offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind as well as third party claims in respect of property damage or ...
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Lift, Escalator and Hoisting Equipment InsuranceMachinery Insurance (MB)It is designed to Provide effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations.
Machinery Loss of profit Insurance (BI MB)Machinery Loss of Profits insurance provides cover for the actual loss of gross profits (i.e. net profit and standing charges) and/or increased cost of working sustained as a result of a business interruption caused by an accident identifiable ...
Power Plant Insurance
MARINE
Marine Cargo InsuranceMarine Cargo insurance protects all goods while in transit depending upon the needs of the client. For sea and air transits, the "Institute" Clauses, drafted by the Technical and Clauses Committee of the Institute of London Underwriters are ...
Marine Hull InsuranceThis cover is available for ocean going vessels, barges, tugs, dredgers, fishing trawlers, yachts, wooden dhows, pleasure/speed boats etc., under Institute Time Clauses Hulls. Cover is also provided for last breakup voyages to Chittagong.
MISCELLANEOUS
Abandonment of Cricket Match InsuranceAir Travel InsuranceAll Risks InsuranceThis policy provides all risks coverage to property pertaining to industries against loss and/or damage due to any accident or misfortune.
Burglary InsuranceCash / Property in PremisesThis policy provides coverage to cash/property whilst on premises against loss by theft arising due to actual forcible and violent entry upon the premises.
Cellular Mobile Phone InsuranceA mobile phone has become a significant part of our life. This exceptionally important item has become a necessity for us and is exposed to risks due to the nature of its usage. In consideration of the importance attached with mobile phone and ...
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Comprehensive General Liability InsuranceCredit Card Holder InsuranceDirectors and Officers Liability InsurancePioneer Insurance Co. Ltd. is capable to provide Directors and Officers Liability Insurance (D &O). This policy provides coverage to Directors or Officers of the company for loss arising from any claim made against them due to any wrongful ...
Employers Liability InsuranceFidelity Guarantee InsuranceThis policy provides coverage to the employer for pecuniary loss sustained by an act of fraud or dishonesty committed by the employee.
Group HospitalizationHole in One Golf Tournament InsuranceThis policy provides compensation to the organizers of the golf tournament, for the reward/prize money paid to a player of the golf tournament who hits a golf ball from the tee to the hole in one stroke.
Money / cash in Transit InsuranceThis policy provides coverage against loss of money whilst in transit due to forcible, violent, external and visible means.
Neon Sign InsuranceOverseas Med claim InsurancePeople's Personal Accident InsurancePersonal Accident InsuranceThis is a worldwide coverage that provides financial compensation in case of death or loss of limb or bodily injury to the insured resulting in temporary or permanent disablement, partial disablement or total disablement.
Professional Indemnity InsuranceThis policy covers liability of the insured firm against any claim arising due to breach of professional duty as Accountants, Doctors, Engineers, Consultants, Surveyors etc.
Rubber Plantation InsuranceSafe Deposit box (Bank Lockers)
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Amount Of premium of Insurance..
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Terms and Condition of this organization for insurance...
Though all contracts share fundamental concepts and basic elements, insurance contracts typically possess a number of characteristics not widely found in other types of contractual agreements. The most common of these features are listed here:
Aleatory
If one party to a contract might receive considerably more in value than he or she gives up under the terms of the agreement, the contract is said to be aleatory. Insurance contracts are of this type because, depending upon chance or any number of uncertain outcomes, the insured (or his or her beneficiaries) may receive substantially more in claim proceeds than was paid to the insurance company in premium dollars. On the other hand, the insurer could ultimately receive significantly more dollars than the insured party if a claim is never filed.
Utmost Good Faith
Although all contracts ideally should be executed in good faith, insurance contracts are held to an even higher standard, requiring the utmost of this quality between the parties. Due to the nature of an insurance agreement, each party needs - and is legally entitled - to rely upon the representations and declarations of the other. Each party must have a reasonable expectation that the other party is not attempting to defraud, mislead, or conceal information and is indeed conducting themselves in good faith. In a contract of utmost good faith, each party has a duty to reveal all material information (that is, information that would likely influence a party's decision to either enter into or decline the contract), and if any such data is not disclosed, the other party will usually have the right to void the agreement.
Executor
An executor contract is one in which the covenants of one or more parties to the contract remain partially or completely unfulfilled. Insurance contracts necessarily fall under this strict definition; of course, it's stated in the insurance and agreement that the insurer will only perform its obligation after certain events take place (in other words, losses occur).
Conditional
A condition is a provision of a contract which limits the rights provided by the contract. In addition to being executor, lavatory, adhesive, and of the utmost good faith, insurance contracts are also conditional. Even when a loss is suffered, certain conditions must be met before the contract can be legally enforced. For example, the insured individual or beneficiary must satisfy the condition of submitting to the insurance company sufficient proof of loss, or prove that he or she has an insurable interest in the person insured.
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There are two basic types of conditions: conditions precedent and conditions subsequent. A condition precedent is any event or act that must take place or be performed before the contractual right will be granted. For instance, before an insured individual can collect medical benefits, he or she must become sick or injured. Further, before a beneficiary will be paid a death benefit, the insured must actually become deceased. A condition subsequent is an event or act that serves to cancel a contractual right. A suicide clause is an example of such a condition. Typical suicide clauses cancel the right of payment of the death benefit if the insured individual takes his or her own life within two years of a life insurance policy's effective date.
Personal contract
Insurance contracts are usually personal agreements between the insurance company and the insured individual, and are not transferable to another person without the insurer's consent. (Life insurance and some maritime insurance policies are notable exceptions to this standard.) As an illustration, if the owner of a car sells the vehicle and no provision is made for the buyer to continue the existing car insurance (which, in actuality, would simply be the writing of the new policy), then coverage will cease with the transfer of title to the new owner.
Warranties and Representations
A warranty is a statement that is considered guaranteed to be true and, once declared, becomes an actual part of the contract. Typically, a breach of warranty provides sufficient grounds for the contract to be voided. Conversely, a representation is a statement that is believed to be true to the best of the other party's knowledge. In order to void a contract based on a misrepresentation, a party must prove that the information misrepresented is indeed material to the agreement. According to the laws of most states and in most circumstances, the responses that a person gives on an insurance application are considered to be a representations, and not warranties.
As an example, consider an individual seeking life insurance coverage. He or she would routinely be required to complete an application, on which the applicant's sex and age would be requested. The accuracy of this information is necessary for the insurer to correctly ascertain its risk and determine the policy premium. If the applicant gives these responses incorrectly, they would likely be deemed (in the absence of outright fraud) as misrepresentations, and could possibly be used by the insurance company as grounds for voiding the policy.
Misrepresentations and Concealments
A misrepresentation is a statement, whether written or oral, that is false. Generally speaking, in order for an insurance company to void a contract because of misrepresented information, the information in question must be material to the decision to extend coverage.
Fraud
Fraud is the intentional attempt to persuade, deceive, or trick someone in an effort to gain something of value. Although misrepresentations or concealments may be
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used to perpetrate fraud, by no means are all misrepresentations and concealments acts of fraud. For instance, if an insurance applicant intentionally lies in order to obtain coverage or make a false claim, it could very well be grounds for the charge of fraud. However, if an applicant misrepresents some piece of information with no intent for gain (such as, for example, failing to disclose a medical treatment that the applicant is personally embarrassed to discuss), then no fraud has occurred.
Impersonation (False pretenses)
When one person assumes the identity of another for the purpose of committing a fraud, that person is guilty of the offense of impersonation (also known as false pretenses). For instance, an individual that would likely be turned down for insurance coverage due to questionable health might request a friend to stand in for him (or her) in order to complete a physical examination.
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Reference…
1. Book: Insurance Principles And Practice by M.N. Mishra & S.B. Mishra 2. Tarikur Rahman, A.M.D., Pioneer insurance Company Ltd.3. www.pioneerinsurance.com.bd4. Wikipedia
5. http://web.finweb.com/insurance/characteristics-of-insurance-contracts.html#ixzz3fJJPCzgR
6. http://www.pioneerinsurance.com.bd/
