Overview of Internal Audit of Green Delta Insurance Limited

Overview of Internal Audit of Green Delta Insurance Limited

Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance companies in Bangladesh. GDIC was incorporated in December 14, 1985 as a public limited company, under the Companies Act 1913. Actual operations started on 1st January 1986, with a paid up capital of BDT 30.00 million. Now, Green Delta Insurance Company Ltd. is amassed about BDT 637.875 million with a credit rating of AA1 and ST1. GDIC holds the proud distinction of being the first ever company to raise its paid up capital to such a level. This is also the 1st Insurance Company in Bangladesh to have equity partnership with IFC. With a presence in the strategically important parts of the country, which includes 38 branches, Green Delta Insurance Company Ltd. has established its prominent presence with equity participation in Delta BRAC Housing Ltd., Progressive Life Insurance Co Ltd, United Hospital Ltd. FinExcel Ltd. and BD Venture Ltd. Green Delta Capital Ltd. and Green Delta Securities Ltd. are two of the direct subsidiaries. GDIC provides stock brokerage services through Green Delta Securities Ltd. (GDSL) and investment supports through Green Delta Capital Ltd. (GDCL).

Under the charismatic leadership of Mr. Nasir A Choudhury, Founder Managing Director and Advisor, Green Delta Insurance Company Ltd. has been leading the winds of change in the insurance industry of the country in terms of service standard, innovative products and legislative restructuring. After 28 years of glorious journey in the Insurance sector, Green Delta Insurance Company Limited has now become a big family of 14 respected board members, 600+ committed staff, numerous valued clients and thousands of esteemed shareholders. By now, Green Delta has been able to uphold the brand image as a prompt claim settler, superior service provider, and diversified product supplier – almost like a one stop solution provider in the non life insurance sector in the country.


Its vision is to mature into a sustainable, coherent organization, raise competitiveness to the highest level in the insurance industry, maintain high profitability & balanced quantitative growth and exceed customer’s expectations by offering legendary services, embrace a new corporate identity and creative corporate culture.


Its mission is to create shareholders value through customer’s satisfaction and employee’s commitment to excellence.


Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh for over two decades.


It believes that client must stand at the center of our all activities. It has the ability to optimally fulfill the client’s needs based on risk management with minimum cost and personalized services.

Core Values

Customer First Always:

Give first priority to customer needs. Look to build enduring relationships with customers – internal and external. Differences should be communicated in the spirit of relationship building.

Organization above Self:

We believe that individual, team and department actions will be driven by organization goals.


We believe that there cannot be teamwork without mutual trust. Trust is fundamental to our business and will guide all internal and external interactions.

High Standards:

We believe that excellence can be achieved only by setting benchmarks that challenge our full potential as an organization and as individuals.

Shared Ownership:

We believe that ownership of success or failure in achieving organizational or team goals is shared by all.

Spirit of Adventure:

Uncertainty is our business and we believe in continuous innovation and creativity to meet challenges head-on.

Respect for Diversity:

We believe that diversity is our strength and it needs to be nurtured. We recognize that team members have varying backgrounds, competencies and ideas and constructive action results only when opinions are aired and understood.

Code of Conduct:

This code of conduct is based on the values of the company. The purpose is to ensure that all employees, managers and executives within Green Delta Insurance Company Limited, will live an act in accordance with these values and principles. The code is designed to give a broad and clear understanding of the conduct expected from all our employees everywhere we do business. Green Delta Insurance Company Limited is committed to conduct its business in an ethical, legal, and responsible manner. Green Delta Insurance Company Limited, therefore, has established this Social Responsibility. Code of Conduct as an application and is committed to ensuring that this code is respected in all its facilities, all over Bangladesh. Recognized standards as the Universal Declaration of Human Rights (UDHR) or the International Labor Organization

(ILO) conventions were used as references in preparing this code. The principles there below refer to these standards.

Legal Compliance:

All business activities of Green Delta Insurance Company Limited must conform to all applicable national and international legal requirements. Green Delta Insurance Company Limited shall also comply with applicable anti-bribery/ anti-corruption rules and regulations in all their business activities.

Prohibition of Discrimination and Harassment:

Green Delta Insurance Company Limited shall not engage in any discriminatory practices. Discrimination means any distinction, exclusion or preference limiting equality or opportunity of treatment in employment or occupation, which may be based on color, sex, religion, political opinion, age, national, social or ethnic origins, family obligations or any other considerations in this matter. Green Delta Insurance Company Limited also commits to a workplace free of any kind of harassment.

Compensation & Benefits:

The company ensures that no wage is lower than the applicable legal minimum. Green Delta Insurance Company Limited does not deduct or withhold pay for disciplinary reasons or force terms and conditions for employment. Compensation paid to employees shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits.

Working hours:

Green Delta Insurance Company Limited ensures that applicable legal restrictions on working hours are met. The maximum allowable working hours in a week are as denied by national law and the corresponding standards of the International Labor Organization. Overtime is restricted according to local legal and contractual obligations. Employees have two days off each week, apart from exceptional circumstances and for a limited period of time. The work organization provides for rest breaks as necessary, in order not to affect the safety and health of the employees.

Prohibition of Forced Labor:

Green Delta Insurance Company Limited does not use forced or compulsory labor, meaning all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered him voluntarily. Also retention of identity documents from personnel upon commencing employment is forbidden.

Freedom of Association and Collective Bargaining:

Green Delta Insurance Company Limited recognizes and respects employees’ freedom of association and their right to freely choose their representatives and ensures that employee representatives do not suffer any discrimination. The company also recognizes employees’ right to collective bargaining.

Health & Safety at Work:

The company ensures that the workplace and its environment do not endanger the physical integrity or health of employees. Action to reduce the causes of accidents and improve working conditions is the object of ongoing programs. Training related to safety and health in their work occupation is provided to employees. Employees must have access to drinking water, sanitary equipment and social rooms, built and maintained in accordance with applicable legal requirements. The workplace and environment has to provide for emergency exits, ire protection equipment and proper lighting. Additionally adequate protection for non-smokers has to be provided.


Procedures and standards for waste management, handling and disposal of chemicals and other dangerous materials, emissions and effluent treatment shall at least meet legal requirements or exceed them.


  • Aviation Insurance
  • Automobile Insurance
  • Workmen Compensation Insurance
  • Miscellaneous Insurance
  • Engineering Insurance (Erection all Risk, Contractors all
  • Risk, Deterioration of Stock & Boiler & Pressure Vessel
  • Insurance, business intemiption
  • Crop Insurance
  • Nibedita-Comprehensive Insurance Policy for Women
  • Weather Index Based Insurance

Investment & Portfolio Management

  • Underwriting
  • Pre-IPO placement Syndication
  • Trusteeship

Green Delta Insurance is known for its innovation and services. Today´s competitive insurance market is driving the market to think and Winovate now products and services and GDIC has been doing with its authentic. Beside the Traditional insurance portfolio GDIC introduced following personal line of products In last year and some them are in pipeline:

  • Health Insurance
  • Household Insurance
  • Nibedita-Comprehensive Insurance Policy for Women
  • Cellular Phone Contingency Insurance
  • Weather Index Based Insurance
  • Personal Accident Insurance Policy for Migrant workers

It is matter of great pride that GDIC has introduced an insurance product first time ever in Bangladesh which is designed only for the females named as Nibedita-Comprehensive Insurance Policy for Women. GDIC has also designed first ever Weather Index Based Insurance for the farmers of Bangladesh which will be launched shortly.

Subsidiary Operations Green Delta Securities Limited,

a wholly owned subsidiary of Green Delta Insurance Company Ltd., has posted a growth of 136.07% in profit before tax against a revenue increase by 161.82% when compared with 2008.

In 2009, GDFSL has opened a branch in the city’s prime location Gulshan. At present there are six (06) branches and having around 1.5% of the average daily market share. A detail of the business operation has been given at the later segment of this report.

Green Delta Securities Ltd. is part of the reputed Green Delta group and is a well capitalized brokerage house GDSL is a 100% subsidiary of Green Delta Insurance Company Limited and offers full-fledged international standard brokerage services for retail and institutional clients.

Initially Green Delta Securities Ltd. offered brokerage account services only to high net-worth individuals, but now this criteria has been relaxed and credit facility for trading is available to experienced investors.

Green Delta Securities Limited (hereby known as GDSL) an 8 (eight) years old company in capitalized brokerage business. We have around 7 branches in different divisions in the country. Green Delta Securities is a 100% subsidiary of Green Delta Insurance Company Limited and offer full fledged international standard brokerage services for retail and institutional clients.

Green Delta Capital Limited – GDCL, a fully owned subsidiary of Green Delta Insurance Company, is one of the emerging Investment Banks in Bangladesh. GDCL got its license in December 2010 from Security and Exchange Commission and embarked on operation from July 2011 with the vision to provide one stop investment banking solution of global standards. The company is committed to provide not only the traditional merchant banking services but also aims to bring in advance financial solutions for the local corporate to uplift the business sector to a new dimension.

Internal Audit Department

Overview of Internal Audit:

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing is a catalyst for improving an organization’s governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice.

Professionals called internal auditors are employed by organizations to perform the internal auditing activity.

The scope of internal auditing within an organization is broad and may involve topics such as an organization’s governance, risk management and management controls over: efficiency/effectiveness of operations (including safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations. Internal auditing may also involve conducting proactive fraud audits to identify potentially fraudulent acts; participating in fraud investigations under the direction of fraud investigation professionals, and conducting post investigation fraud audits to identify control breakdowns and establish financial loss.

Internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds.

Internal auditors work for government agencies (federal, state and local); for publicly traded companies; and for non-profit companies across all industries. Internal auditing departments are led by a Chief Audit Executive (“CAE”) who generally reports to the Audit Committee of the Board of Directors, with administrative reporting to the Chief Executive Office.

Main Functions of Audit Department

To confirm adequacy of internal control system such as:

  • Overall system review with departmental operational procedure.
  • Financial statement, books of accounts, financial power delegation and advances.
  • Investment & share
  • Asset register, depreciation, disposal & Its control.
  • Procurement policy
  • Stock & store
  • Insurance agent appointment, license, register maintenance as per Insurance Act.
  • Insurance stamp purchase, supply with documentation.
  • All kinds of expenses i.e. management exp. business development exp., agent

commission & other payment Procedures with documentation.

  • Premium collected amount reconciliation with bank statement.
  • Premium collection, premium deposit, premium refund, discount on premium, premium outstanding, deposit premium, register maintenance etc.
  • Bank deposit /collection, bank reconciliation.
  • TDS & VAT collection & deposit, Company Tax Payment.
  • Management Information Systems (MIS) statement
  • Claim payment procedure, payment mode, surveyors appointment, register maintenance, documentation etc.
  • Amount due/payable to co-insurer & Reinsurance treaty/limit.

Branch’s Report Presentation

Internal Audit Team conducts branch audit as per year visit plan on the overall activities of branch.

Mainly two types of activities are involved comprising the following Materials:

(a) Operational activities:

Attendance/Movement register, Policy/Cover note/ Addendum/ Endorsements/Certificate register, Assets Inventory, Security of documents, Stamp register, Money Receipts, Documentation.

(b) Financial activities:

Premium income, Premium Target & Achievement, Claims paid, Petty cash expenses, Agency commission.

Department wise Audit

Internal Audit team conducts department wise Audit:

  • Finance & Accounts Department
  • Human Resources & Admin. Department
  • Underwriting Management Department
  • Claims Department
  • Re-insurance Department
  • Share & Investment Department
  • Information Technology Department

Risk Assessment Procedure

Internal Audit Team conducts department wise audit by adopting the following procedure for risk assessment & management.

Finance & Accounts Department:

  • Cash Counter
  • Pre Payment & Post Payment Voucher
  • Bank Voucher(Refund/CO-Ins/Advance/Re-Ins)
  • Bank Reconciliation
  • Premium income & Others Investment Income
  • Financial Statement (Trial Balance, Ledger, Journal, Double entry system)
  • Fixed Assets Disposal & Depreciation
  • FDR & others Investment.
  • Tax & Vat Deduction, Provision & Payment
  • Other Reserve & Provisions

Human Resources & Admin. Department:

  • Appointment/Pay Roll/Benefits (Provident Fund, Gratuity, Bonus, Loan & Advances )
  • Personnel Policies & Service Rule (Attendance, Leave, Training)
  • Purchase/Quotation/Approval
  • Pricing/Quality
  • Budget/Fund Utilization
  • Deductions on Bills ( AIT, VAT)
  • Fixed Assets/Printing Stationary/Inventory

Underwriting Management Department:

  • Document Check as per Premium Register (Branch Wise)
  • Tariff Rate Terms Condition & CRC Correspondence
  • Surveyor Appointment & Report Review
  • Risk Control Compliance
  • Premium Collection, Refund , Commission
  • Co-insurance payment , Receivable/ Payable
  • Stamp Duty As Per Document & Register
  • Compliance of IDRA Directives
  • System Generated Reports

Claims Department:

  • Loss Intimation Letter
  • Acknowledgement & Surveyor Appointment
  • Register Entry
  • Premium Collection Confirmation
  • Survey Report & Relevant Documents
  • Scrutiny of Documents
  • Review & Approval
  • Settlement

Re-insurance Department:

  • Re-insurance Treaty
  • Payment of Re-insurance Premium
  • Receivables under Re-insurance Arrangements
  • Quarterly Bordereaux
  • Profit/ Loss Payment Statement

Share & Investment Department:

  • Share holding position
  • Right & Bonus Share
  • Dividend Announcement and Disbursement
  • Tax deduction on Dividend
  • Price Sensitive Information
  • Financial Discretion

Information Technology Department (IT):

  • Security Policy of IT Department
  • Insurance Software Implementation
  • Results

Internship experience


I felt myself very much privileged to get an opportunity to work as an intern in Green Delta Insurance Company Limited (Mohakhali, Corporate Head Office). Green Delta Insurance Company Limited is renowned for its quick services and good performance. When I started my internship in this branch I was overwhelmed by knowing that I am a part of this renowned company for three months. The duration of my internship was from 16th February to 16th

  • Learn to review whether the accounting, financial, budgetary and operating control are adequate and have been efficiently applied.

May. I enjoyed myself working over there a lot because the environment was immensely friendly and all of the employees are very much co-operative with each other. As an intern every day I had to report to the Internal Audit department and the officers of audit department named Gazi Safiqur Rahman (Internal Audit officer), MD. Jahangir Islam (EVP), Parvin Akter( FSVP) , supervised me all through my whole internship period in the Green Delta Insurance Company Limited (Corporate Head Office).

Responsibilities and Learning outcome


The main functions of the Internal Audit Department may be summarized as follow and as a part of this department I have learned the following things:

  • Learn how to examine whether receipts of the company on account of premium or otherwise have been correctly assessed and realized as per prescribed tariffs, rules, regulation and orders; whether they have correctly accounted and promptly deposited in Bank; whether all sums of money paid into the banks in cash or by cheques / payorder/draft have been credited to Company’s accounts; and whether there is effective follow-up for recovery of arrears.
  • Learn how to examine whether payments by way of claims, commission and other expenses have been made due regularly and propriety after proper sanction accorded by a competent authority and have been duly vouched correctly classified and recorded in accounts.
  • Learn to ensure that the company’s assets are properly accounted and safeguarded from the losses of all kinds, and that there is a periodical physical verification to check the accuracy of the quantity balances in the books.
  • Learn to examine whether instructions and procedures are given in the company’s manual and Head Office circular (including rules, regulations, and guidelines etc., issued by the Company) are strictly followed;
  • Learn to examine whether financial and administrative power exercised by officials are strictly in accordance with the delegations or guidelines laid down from time to time .
  • Learn to examine whether returns / statement / reports required to be furnished by each office/ department to different authorities are correctly complied and sent within stipulated time
  • Learn how to test the accuracy of accounting and other data developed in the office / Department inspected.
  • Learn how to examine the delay in issue of documents and settlement of claims
  • Learn to spot out missing links, if any in the chain of operations which may give room for financial irregularities, misappropriations, frauds etc.
  • Learn how to review the register of complaints to see that all companies have been disposed off within a reasonable time and the machinery set up for the purpose is adequate and efficient.


  • Assist the internal audit department in doing the branch audit of Principal Branch Dhaka. Where I checked the movement of register, stock of revenue stamp, stock of cash insurance stamp, money receipt, security papers, Inventory, no of documents issued, Unused printing stationary of individual department of FIRE, FIRE, MARIN CARGO, MARIN HULL, MOTOR, and MISSELINIOUS
  • Assist the internal audit department in doing the audit of Claim department. Where I checked claim paid register of FIRE, MARIN CARGO, MARIN HULL, MOTOR, and MISSELINIOUS
  • I have checked the petty cash which come to internal audit department for checking the validity. Petty Cash Custodian(s) and Front Desk Personnel are responsible for their cash, their petty cash transactions, maintenance of the proper records, and the reconciliation of such. I was responsible for acquiring and validating:
  1. Original Receipt
  2. Signatures
  3. Account Keys
  4. ID’s of recipient
  5. Allow ability of purchase
  • I have checked the paper of commission paid against the premium collected
  • I have checked the software of reconciliation whether the copy from branch given and the record provided by the software both match or not.
  • Write down some letters under the instruction of the supervisor.
  • I have checked the Bank statement with software.

Personal Observation

During this internship period, my overall observations are as following:

  • The environment of Internal Audit Department of Green Delta Insurance Company Limited is very friendly and cooperative.
  • Work is never left pending for the next day unless it is absolutely necessary.
  • It has own transportation facility which makes the life of employees’ easy
  • It provides lunch to the employee in a dinning where the employee can be intimated with others. And the women can be more benefited by providing lunch.
  • I felt that there are more than enough employees and the salary range of GDIC is not good enough which create dissatisfaction among the employees
  • The behavior of other departments toward internal audit department is not cooperative.
  • I felt manipulation of seniors of other department.
  • The work load of GDIC is very low. For that reason I have seen so many employees have no works to do.


To recommend the company there are certain areas where things can be improved. First of all the work force are not well enough to cooperate the organization for achieving their goal and they have so many employees who are not productive. For overcoming this it they need to cut down employee and hire qualified employees. Also, I believe the reporting to the direct top level committee should be increased so that the management body makes a proper understanding about the employees and the issues. Another recommendation from my side is to upgrade the computers, operating systems and software so that the work process could be faster and better. Green Delta Insurance Company Limited has a bright future and they should move forward with improving technology and methodology so that they can keep their standards of excellence in insurance company.


In 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. BGIC need to develop their some productive sectors. In present, a company cannot establish properly without developing information technology. People search their desires requirement through Internet so, insurance companies need to develop Web address to increase both foreign and local investors. So we have discussed about both the problem and prospects of insurance business in Bangladesh. The progress of insurance business depends on the progress of economic condition. Insurance business also faces many problem. So if we develop economic condition as well as overcome the problems, it will help a lot to flourish this business in our country. So, GDIC should focus on those issues to develop its growth and faith from its customers. Green Delta is proud to be a company that helps people in time of trouble. GDIC is a company that can and does pull all steps when needed. Like the country we are young and have blended our youthful vigor with specialized knowledge and experience. The Board of Directors of GDIC includes veterans of insurance, trade & industry, doctors, chartered accountant, business professionals. Our management team comprises of qualified professionals trained from UK, Switzerland, Germany and many other advanced countries.