ASA-Annual Report
| Similar to savings mobilization, insurance provision reaps rewards in terms of additional resources for the institution. Initially, ASA started the credit program without insurance policy. As a result, problems were faced in recovering the | outstanding loans from the borrowers’ successors in case of death. To mitigate the problem, ASA introduced the insurance policy; which ensures high repayment rates. ASA’s insurance covers only borrower’s death risk. |
|
Total deposits and payments of insurance (1999 and 2000, taka in million) |
|
Year |
Deposit |
Payment |
Yearly Net Balance |
Accumulated Balance |
|
1999 |
22.15 |
8.90 |
13.25 |
74.40 |
|
2000 |
7.56 |
10.55 |
(2.26) |
71.41 |
|
Total |
29.71 |
19.45 |
.26 |
71.41 |