Pioneer Insurance Company Limited by AbdurRab1



                     Pioneer Insurance Company Limited

Pioneer Insurance Company Limited (PICL) a private sector general insurance
company incorporated as a public limited company on 25 March 1996 under the
COMPANIES ACT    1994. It obtained registration from the Chief Controller of Insurance on
11 May 1996 and started general insurance business on 13 May 1996. The company was
established with an authorised and paid up capital of Tk 200 million and Tk 60 million
respectively which remained unchanged till December 2000. The capital is divided into
ordinary shares of Tk 100 each.

The company carries out all types of general insurance business as per the Insurance Act
1938. It underwrites risks involved in trade and properties and thus provides their security
through insurance and reinsurance services. Major risk underwriting business of the
company covers fire insurance, marine insurance, motor insurance and miscellaneous

In 1999, the company received net premiums of Tk 70.29 million. Commission incomes
were Tk 19.88 million and underwriting profits derived from the insurance activity were
Tk 11.15 million. In addition, the company received investment incomes of Tk 11.06
million and after making all necessary provisions, the company earned a net profit of Tk
7.66 million. In 1999, the company settled gross claims amounting to Tk 18.12 million,
of which Tk 15.40 million, Tk 1.12 million, Tk 1.17 million and Tk 0.43 million were
paid respectively to fire, marine, motor and miscellaneous insurance business.

Total assets of the company were valued at Tk 178.18 million in 1999. Other than its
insurance business, the company has long-term investments in both bonds and shares and
debentures. Total investments of the company during 1999 were Tk 9 million as deposits
with BANGLADESH BANK in National Investment Bond. The company maintains a reserve

fund to which it makes annual contributions mainly to cover exceptional losses on
insurance business. Such losses were Tk 13.37 million in 1999.

The company has its headquarters at Dhaka. In 2001, it had 13 branches including the
local office in Dhaka and the zonal offices in different regions of the country. Six
branches were located at different parts of the Dhaka city, 3 in Chittagong and the
remaining in Narayanganj, Khulna, and Jessore. The company had 148 employees
including 8 executives at different levels headed by the managing director, who is also
the   member    secretary   of   the   company's   12-member     board   of   directors.

Collection from The Banglapedia.

Abdur Rab (forhad)
Department of Public Administration.
Jahangirnagar University
Dhaka, Bangladesh.

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