View with images and charts An over View of Provati Insurance Company Limited (PICL)
1.01: Background of PICL Insurance is nothing but a system of accepting risk of the insured by the insurer having consideration in the form of premium to safeguard his interest from any accident. In case of big risk the insurer needs to transfer the risk to re-insurer. Re-insurance means spreading of risk of one onto the shoulder of many. In brief, Re-insurance means insurance of insurance. Whilst it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest arising out of an unforeseen contingency, Insurance is a method or process which distributes the burden of loss on a number of persons within the group framed for this particular purpose. The concept of grouping together or risk sharing was in existence in very ancient times but gradually developed in its present state through a process of evolution to meet the growing needs of the people in the field of General business and Industries. With a view to catering to the growing demands of this type of service Provati Insurance Company was incorporated in Bangladesh as Public Limited Company by Shares on the 31st January, 1996 under the Companies Act, 1994 and its commencement of business was started from the 25th March, 1996 and the registration from the Controller of Insurance on 31st day of March, 1996 to start general insurance business. The company carries out general insurance business under the Insurance Act 1938 and other applicable rules. The company has its headquarters at Dhaka and in 2001, it had 52 branches. Its management team is led by a managing director, who is also the member secretary of its 14-member board of directors. It has already occupied a strong position amongst its competitors and has made significant contribution in the field of Insurance Industry in the economy .The Chairman and Members of the Board of Directors are well-reputed business personalities and leading industrialists of the Country. 1.02: Nature of Business Undertaken By PICL Classification of Insurance business done by the Provati Insurance Company Limited can be made into two parts viz. Marine & Non- Marine.