History of Insurance

Chinese and Babylonian traders practiced the first methods of transferring or distributing risk as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel’s capsizing. The Babylonians developed a system, which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender’s guarantee to cance l the loan should the shipment be stolen. Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Nowruz (the beginning of the Persian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such unique gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of writing was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: “Whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much.” A thousand years later, the inhabitants of Rhodes created the ‘general average’, which allowed groups of merchants to pay to insure their goods were being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether to storm or sinkage. The ancient Athenian “maritime loan” advanced money for voyages with repayment being canceled if the ship was lost. In the 4th century BC, rates for loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance. 5 The Greeks and Romans introduced the origins of health and life insurance c. 600 BCE when they created guilds called “benevolent societies” which cared for the families of deceased members, as well as paying funeral expenses of members. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, “friendly societies” existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

Historical Background of The Company

Federal Insurance Company Limited is a name in the field of the Insurance Industry in Bangladesh representing a perfect combination of expert knowledge and diverse experience. The Board of Directors of the Company consists of leading industrialists, exporters, importers, and businessmen of the country who play major roles in the sphere of trade, commerce, and industry including the insurance business. The Company was registered on 11 November 1987 as a public limited company under the companies’ Act. 1913 and obtained Insurance Registration Certificate on 17 November, 1987 and was formally inaugurated on 20 December 1987 for underwriting Marine, Fire, Motor, Personal Accident, Aviation, and Miscellaneous Insurance. The company’s initial paid-up capital of BDT 30.00 million only. The shares of the company are listed with both Dhaka and Chittagong stock exchanges as a publicly quoted company.  Renowned insurance personalities and the first Commerce Minister of the People’s Republic of Bangladesh late Mr. M R Siddiqui former Managing Director of the company and later Mr. A K M Sarwardy Chowdhury was the Managing Director of the company who is oldest and most experienced Managing Director in the insurance industry of the country. The vast experience of the members of the Board of Directors of the Company, their financial standing, personal image, and social status coupled with the technically qualified, highly experienced, and dedicated management team have made this Company one of the leading private general insurance organizations in this country within a very short period. To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level that will keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, establish presence all over Bangladesh, ensure sustained value addition to all stakeholders and uphold Corporate Value and Corporate Governance.

Composition Of Board Of FICL