INTERNSHIP REPORT

STATELIFE INSURANC E

INTERNSHIP REPORT

CORPORA TION
INTERNSHIPREP ORT
PRESENTED TO:

SIR ASLAM PATHAN

PRESENTED BY: KASHIF ILLAHI
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INTERNSHIP REPORT

2K8/BBA/193 8TH SEMESTER

UNIVERSITY OF SINDH, JAMSHORO

ACKNOWLEDGEMENT
All gratitude and thanks to almighty ALLAH the !ra"ious# The $ost mer"i%ul and &ene%i"ent 'ho ga(e me "ourage to undertake and "om)lete this task* I am (ery mu"h o+liged to my e(er "aring and lo(ing )arents 'hose )rayers ha(e ena+led to rea"h this stage* I am grate%ul to almighty ALLAH 'ho made me a+le to "om)lete the 'ork )resented in this re)ort* It is due to HIS unending mer"y that this 'ork mo(ed to'ards su""ess*
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I am highly inde+ted to my Sir Aslam Pathan %or )ro(iding me an o))ortunity to learn a+out the insuran"e system o% Pakistan 'hi"h is (ital ingredient o% &&A )rogram* I am (ery great %ull to o%%i"ers o% STATE LI-E %or )ro(iding me guideline %or the "om)letion o% this re)ort* I %eel great )ride and )leasure on the a""om)lishment o% this re)ort*

EXECUTIVE SUMMARY
I started my internshi) in state li%e insuran"e "or)oration o% Pakistan at Hydera+ad .one 1, /une 2011* I 'orked %or si1 'eeks there and it gi(es me a lot o% )ra"ti"al kno'ledge a+out the o)eration o% an insuran"e "om)any *I haslearned many things in this duration* In the %ollo'ing )ages
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I ha(e summari.ed my e1)erien"e# o+ser(ations and 'orking a"ti(ities 'hi"h I o+ser(ed in my si1 'eek internshi)* This re)ort 'ill dis"uss internshi) 'ith state li%e *It 'ill outline %ollo'ing* History 3e)artments S'ot analysis -inan"ial analysis The sour"e o% in%ormation used during the )re)aration o% this re)ort in"ludes Personal o+ser(ations 3is"ussions 'ith sta%% 4 management Annual re)orts Handouts 3i%%erent 'e+sites Re)ort is +ased on my )ersonal e1)erien"e 4 o+ser(ations a+out insuran"e se"tor 'hi"h I gain during my internshi) in state li%e*

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CONTENTS
Sr. No 1* 2* ,* 2* 5* 6* 7* 9* 8* 10* 11* 12* 1,* 12* 15* 16* 17* 19* 18* 20* 21* 22* 2,* 24. 25. Description INSURANCE 3e%inition History Prin"i)les Ty)es o% insuran"e Li%e Assuran"e INTRODUCTION OF STATE LIFE History -un"tions A"hie(ements :ore ;alues Organi.ational Stru"ture PRODUCTS Indi(idual Li%e Produ"ts !rou) li%e Insuran"e Produ"ts DEPARTMENTS P4!S A<3IT 3EPAT$ENT PH4S NE= &<SINESS A!EN:> -INAN:E4A::O<NTS PERFORMANCE HIGHLIGHTS RECOMMENDATION & CONCLUSION I LIO!RAPHY Page No* 6 7 7 7 8 10 15 16 16 17 18 20 25 26 20 52 5, 57 60 66 72 75 79 88 90

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P !": 1

INSURANC E

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INSURANCE
DEFINTIONS:
Insuran"e "an +e de%ined into a num+er o% 'ays* Some o% them are as %ollo's? A "ontra"t +et'een an insuran"e "om)any and a )erson or grou) 'hi"h )ro(ides %or a money )ayment in "ase o% "o(ered loss# a""ident or death Insuran"e is a "ontra"t +et'een t'o )arties 'here+y one )arty agrees to undertake the risk o% another in e1"hange %or "onsideration kno'n as )remium and )romises to )ay a %i1ed sum o% money to the other )arty on ha))ening o% an un"ertain e(ent @deathA or a%ter the e1)iry o% a "ertain )eriod in "ase o% li%e insuran"e or to indemni%y the other )arty on ha))ening o% an un"ertain e(ent in "ase o% general insuran"e* The )arty +earing the risk is kno'n as the BinsurerB or BassurerB and the )arty 'hose risk is "o(ered is kno'n as the BinsuredB or BassuredB It is a system 'here+y "ontri+utions are re"ei(ed %rom insuring )u+li" and )ool o% money is "reated %rom 'here the "laims are )aid to %e' un%ortunate )ersons 'ho died during the insuran"e )eriod

H#$"%!& %' I($)! (*+

Insuran"e +egan as a 'ay o% redu"ing the risk o% traders# as early as 2000 &: in :hina and 1750 &: in &a+ylon* Li%e insuran"e dates only to an"ient RomeC D+urial "lu+sD "o(ered the "ost o% mem+ersB %uneral e1)enses and hel)ed sur(i(ors monetarily* $odern li%e insuran"e started in 17th "entury England# originally as insuran"e %or traders# mer"hants# shi)
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o'ners and under'riters met to dis"uss deals at LloydBs :o%%ee House# )rede"essor to the %amous LloydBs o% London* Thus %rom LloydEs o% London insuran"e +egins

PRINCIPLES OF INSURANCE
In e(ery sort o% "ontra"t there are some )rin"i)les 'hi"h must +e %ollo'ed in order to a""om)lish the "ontra"t* -ollo'ing are the )rin"i)les o% e(ery insuran"e "ontra"t*

P!#(*#,-+ %' )".%$" /%%0 ' #"1

An insuran"e "ontra"t is one o% utmost good %aith* =hat this means is that allmaterial %a"ts a+out an insured risk must +e dis"losed to the insurers at the time o% "om)leting the )ro)osal %orm# or su+seFuently i% the %a"ts "hange*

P!#(*#,-+ %' #(0+.(#"&

Indemnity means that the insurers agree to "om)ensate in the e(ent o% loss su"h that the insured is le%t su+stantially in the same )osition %inan"ially a%ter the loss as she 'as +e%ore it +ut the insured "annot )ro%it %rom a loss*

P!#(*#,-+ %' *%("!#2)"#%(

I% more than one )oli"y "o(ers the same risk it is not )ossi+le %or the insured to "laim on +oth and make a gain* In this situation ea"h o% the insurers in(ol(ed 'ould +e reFuired to "ontri+ute a )ro)ortionate amount o% the loss G this is kno'n as the )rin"i)le o% "ontri+ution

P!#(*#,-+ %' $)2!%/ "#%(

In the e(ent o% a "laim and 'here the insurers ha(e %ully indemni%ied the insured# the insuredBs original interests "an +e taken o(er +y the insurers G this is kno'n as the )rin"i)le o% su+rogation*

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For example, where a third party causes damage to the insured's property, after the insurers have settled the claim they can pursue the third party for the cost of the damage.

P!#(*#,-+ %'

3+! /+

<nderinsuran"e "an ha(e serious im)li"ations 'hen insuring a )ro)erty* <nderinsuran"e means that the re)la"ement (alue o% the )ro)erty or the (alue o% the "ontents has +een understated on the )ro)osal# there+y lo'ering the )remiums )aid*
The principle of average means that the amount of the claim payment will be reduced proportionality if the property was not insured to the full amount of its replacement cost.

P!#(*#,-+ %' ,!%4#. "+ * )$+

In the e(ent o% a "laim the insurers 'ill 'ant to as"ertain i% the "ause o% the loss 'as an insured risk* The )rin"i)le o% )ro1imate "ause relates to this and is de%ine as? The e%%i"ient "ause 'hi"h +rings a+out a loss 'ith no other inter(ening "ause 'hi"h +reaks the "hain o% e(ents*

I($)! 2-+ #("+!+$"

>ou must ha(e an interest @insura+le interestA in the thing insured* I% you "ould insure something 'hi"h you did not ha(e an insura+le interest in @o'nershi) o%A it 'ould +e )ossi+le to gain in the e(ent o% anotherBs lossH

I($)! 2-+ !#$5

The risk 'hi"h is going to "ede must +e insura+le

TYPES OF INSURANCE:
There are t'o ty)es o% insuran"e

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G+(+! - I($)! (*+:

!eneral insuran"e is +asi"ally an insuran"e )oli"y that )rote"ts you against losses and damages other than those "o(ered +y li%e insuran"e* -or more "om)rehensi(e "o(erage# it is (ital %or you to kno' a+out the risks "o(ered to ensure that you and your %amily are )rote"ted %rom un%oreseen losses !eneral insuran"e in"lude %ollo'ing ty)es o% insuran"e* ;ehi"le insuran"e Health insuran"e Home insuran"e

Pro)erty insuran"e Lia+ility insuran"e :redit insuran"e $arine insuran"e A(iation insuran"e

Tra(el insuran"e Pro%essional indemnity

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INTERNSHIP REPORT

L#'+ I($)! (*+:

Li%e insuran"e "o(ers the li%e o% a )ersonI* Li%e insuran"e )ro(ides a monetary +ene%it to a de"edentEs %amily or other designated +ene%i"iary# and may s)e"i%i"ally )ro(ide %or in"ome to an insured )ersonBs %amily# +urial# %uneral and other %inal e1)enses* Li%e insuran"e )oli"ies o%ten allo' the o)tion o% ha(ing the )ro"eeds )aid to the +ene%i"iary either in a lum) sum "ash )ayment or an annuity* No' 'e 'ill dis"uss this in detail as this is the main )oint o% dis"ussion*

LIFE ASSURANCE
T&,+$ %' L#'+ I($)! (*+:
Li%e insuran"e may +e di(ided into t'o +asi" "lasses J tem)orary and )ermanent or %ollo'ing su+"lasses G term# uni(ersal# 'hole li%e and endo'ment li%e insuran"e

Term Insuran"e
Term assuran"e )ro(ides li%e insuran"e "o(erage %or a s)e"i%ied term o% years in e1"hange %or a s)e"i%ied )remium* The )oli"y does not a""umulate "ash (alue* Term is generally "onsidered D)ureD insuran"e# 'here the )remium +uys )rote"tion in the e(ent o% death and nothing else* These are main %a"tors to +e "onsidered in term insuran"e* 16 F *+ .%)(" 7,!%"+*"#%( %! 0+ "1 2+(+'#"89 26 P!+.#). "% 2+ , #0 7*%$" "% "1+ #($)!+089 (0 36 L+(/"1 %' *%3+! /+ 7"+!.8 ;arious insuran"e "om)anies sell term insuran"e 'ith many di%%erent "om+inations o% these three )arameters* The %a"e amount "an remain "onstant or de"line* The term "an +e %or
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one or more years* The )remium "an remain le(el or in"rease* :ommon ty)es o% term insuran"e in"lude Le(el# Annual Rene'a+le and $ortgage insuran"e*

Le(el Term Poli"y

Le(el Term )oli"y has the )remium %i1ed %or a )eriod o% time longer than a year* These terms are "ommonly 5# 10# 15# 20# 25# and ,0 and e(en ,5 years* Le(el term is o%ten used %or long term )lanning and asset management +e"ause )remiums remain "onsistent year to year and "an +e +udgeted long term* At the end o% the term# some )oli"ies "ontain a rene'al or "on(ersion o)tion*

!uaranteed Rene'al
!uaranteed Rene'al# the insuran"e "om)any guarantees it 'ill issue a )oli"y o% eFual or lesser amount 'ithout regard to the insura+ility o% the insured and 'ith a )remium set %or the insuredBs age at that time* Some "om)anies ho'e(er do not guarantee rene'al# and reFuire )roo% o% insura+ility to mitigate their risk and de"line rene'ing higher risk "lients @%or instan"e those that may +e terminalA*

Annual Rene'a+le Term

Annual rene'a+le term is a one year )oli"y +ut the insuran"e "om)any guarantees it 'ill issue a )oli"y o% eFual or lesser amount 'ithout regard to the insura+ility o% the insured and 'ith a )remium set %or the insuredBs age at that time*

$ortgage Insuran"e
Another "ommon ty)e o% term insuran"e is mortgage insuran"e# 'hi"h is usually a le(el )remium# de"lining %a"e (alue )oli"y* The %a"e amount is intended to eFual the amount o% the mortgage on the )oli"y o'nerEs residen"e so the mortgage 'ill +e )aid i% the insured dies* A )oli"y holder insures his li%e %or a s)e"i%ied term* I% he dies +e%ore that s)e"i%ied term is u) @'ith the e1"e)tion o% sui"ide
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see +elo'A# his estate or named +ene%i"iary re"ei(es a )ayout* I% he does not die +e%ore the term is u)# he re"ei(es nothing*

Permanent Li%e Insuran"e

Permanent li%e insuran"e is li%e insuran"e that remains in %or"e @inGlineA until the )oli"y matures @)ays outA# unless the o'ner %ails to )ay the )remium 'hen due @the )oli"y e1)ires OR )oli"ies la)seA* The )oli"y "annot +e "an"eled +y the insurer %or any reason e1"e)t %raud in the a))li"ation# and that "an"ellation must o""ur 'ithin a )eriod o% time de%ined +y la' @usually t'o yearsA* Permanent insuran"e +uilds a "ash (alue that redu"es the amount at risk to the insuran"e "om)any and thus the insuran"e e1)ense o(er time* This means that a )oli"y 'ith a million dollar %a"e (alue "an +e relati(ely e1)ensi(e to a 70 year old* The o'ner "an a""ess the money in the "ash (alue +y 'ithdra'ing money# +orro'ing the "ash (alue# or surrendering the )oli"y and re"ei(ing the surrender (alue* The %our +asi" ty)es o% )ermanent insuran"e are :1%-+ -#'+# )(#3+!$ - -#'+# -#.#"+0 , & and +(0%:.+("*

=hole Li%e :o(erage

=hole li%e insuran"e )ro(ides %or a le(el )remium# and a "ash (alue ta+le in"luded in the )oli"y guaranteed +y the "om)any* The ,!#. !& 03 (" /+$ o% 'hole li%e are

!uaranteed death +ene%itsC !uaranteed "ash (alues# -i1ed and kno'n annual )remiums#

And mortality and e1)ense "harges 'ill not redu"e the "ash (alue sho'n in the )oli"y* The ,!#. !& 0#$ 03 (" /+$ o% 'hole li%e are )remium in%le1i+ility# and the internal rate o% return in the )oli"y may not +e "om)etiti(e 'ith other sa(ings alternati(es*Also# the "ash (alues are generally ke)t +y the insuran"e "om)any at the time o% death# the death +ene%it only to the +ene%i"iaries*
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Riders are a(aila+le that "an allo' one to in"rease the death +ene%it +y )aying additional )remium* The death +ene%it "an also +e in"reased through the use o% )oli"y di(idends* 3i(idends "annot +e guaranteed and may +e higher or lo'er than histori"al rates o(er time* Premiums are mu"h higher than term insuran"e in the shortGterm# +ut "umulati(e )remiums are roughly eFual i% )oli"ies are ke)t in %or"e until a(erage li%e e1)e"tan"y* :ash (alue "an +e a""essed at any time through )oli"y DloansD and are re"ei(ed Din"omeGta1 %reeD* Sin"e these loans de"rease the death +ene%it i% not )aid +a"k# )ay+a"k is o)tional* :ash (alues su))ort the death +ene%it so only the death +ene%it is )aid out*

<ni(ersal Li%e :o(erage

<ni(ersal li%e insuran"e @<LA is a relati(ely ne' insuran"e )rodu"t intended to )ro(ide )ermanent insuran"e "o(erage 'ith greater %le1i+ility in )remium )ayment and the )otential %or a higher internal rate o% return* There are se(eral ty)es o% uni(ersal li%e insuran"e )oli"ies 'hi"h in"lude Dinterest sensiti(e*

LimitedGPay
Another ty)e o% )ermanent insuran"e is LimitedG)ay li%e insuran"e# in 'hi"h all the )remiums are )aid o(er a s)e"i%ied )eriod a%ter 'hi"h no additional )remiums are due to kee) the )oli"y in %or"e* :ommon limited )ay )eriods in"lude 10Gyear# 20Gyear# and )aidGu) at age 65*

Endo'ments
Endo'ments are )oli"ies in 'hi"h the "ash (alue +uilt u) inside the )oli"y# eFuals the death +ene%it @%a"e amountA at a "ertain age* The age this "ommen"es is kno'n as the endo'ment age* Endo'ments are "onsidera+ly more e1)ensi(e @in terms o% annual )remiumsA than either 'hole li%e or uni(ersal li%e +e"ause the )remium )aying )eriod is shortened and the endo'ment date is earlier*

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Endo'ment Insuran"e is )aid out 'hether the insured li(es or dies# a%ter a s)e"i%i" )eriod @e*g* 15 yearsA or a s)e"i%i" age @e*g* 65A* This is ty)e o% li%e insuran"e 'here+y a s)e"i%i" term is sele"ted and )remiums are )aid throughout that term or earlier death* I% li%e insured sur(i(es that term the sum insured along 'ith a""rued +onuses is )aid as maturity (alue *This "lass o% insuran"e "arries loan and surrender (alue )ro(ided the )oli"y has +een en%or"ed at least t'o "onse"uti(e years* There are di%%erent ty)es o% endo'ment insuran"e* Sim)le endo'ment Anti"i)ated endo'ment /oint li%e endo'ment Progressi(e endo'ment :hildren endo'ment Single )remium endo'ment -amily )ension endo'ment O)tional maturity endo'ment $ortgage )rote"tion endo'ment Personal )ension endo'ment Annuities endo'ment

R#0+!$ %! S),,-+.+(" !& C%("! *"$

Riders are modi%i"ations to the insuran"e )oli"y added at the same time the )oli"y is issued* These riders "hange the +asi" )oli"y to )ro(ide some %eature desired +y the )oli"y o'ner* Ty)es o% Riders Li%e insuran"e "om)anies o%%er di%%erent ty)es o% riders* These are o% %ollo'ing ty)es* A::I3ENTAL IN3E$NIT> &ENE-ITS @AI&A A::I3ENTAL 3EATH &ENE-ITS @A3&A -A$IL> IN:O$E &ENE-IT RI3ER @-I&RA
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!<ARANTE3 INS<RA&ILIT> RI3ERS @!IRA RE-<N3 O- PRE$I<$ RI3ER TER$ INS<RAN:E RI3ER @TIRA =A;IER O- PRE$I<$ RI3ER @=PRA

P !": 2

INTRODUCTI ON OF STATE LIFE

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BRIEF HISTORY
The Li%e Insuran"e &usiness in Pakistan 'as nationali.ed during M !*1 19;2* Initially Li%e Insuran"e +usiness o% 32 I($)! (*+ C%., (#+$ 'as merged and )la"ed under three &eema <nits named A # & and : &eema <nits* Ho'e(er# later these &eema <nits 'ere merged and e%%e"ti(e N%3+.2+! 19 19;2 the $anagement o% the Li%e Insuran"e &usiness 'as "onsolidated and entrusted to the State Li%e Insuran"e :or)oration o% Pakistan* State Li%e Insuran"e :or)oration o% Pakistan is headed +y a :hairman and assisted +y the E1e"uti(e 3ire"tors a))ointed +y -ederal !o(ernment* <) to /uly 2000 the :or)oration 'as run +y &oard o% 3ire"tors "onstituted under Li%e Insuran"e @Nationali.ationA Order 1872* In /uly 2000# )(0+! I($)! (*+ O!0#( (*+ 2<<<# the -ederal !o(ernment re"onstituted the &oard o% 3ire"tors o% State Li%e 'hi"h runs the a%%air o% this :or)oration* The +asi" stru"ture o% the :or)oration %or Indi(idual Li%e Insuran"e "onsists o% F%)! R+/#%( - O''#*+$ T:+("&=S#4 >%( - O''#*+$ F+: S)2=>%( - O''#*+$ 111 S+*"%! O''#*+$ ?@1 A!+ O''#*+$

-or !rou) 4 Pension there are F%)! >%( - O''#*+$ @ S+*"%! O''#*+$ 2< S+*"%! H+ 0$
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FUNCTIONS PERFORMED BY OFFICES

>%( - O''#*+$
The Konal O%%i"es deal e1"lusi(ely 'ith Sales and $arketing <nder'riting o% Li%e Insuran"e Poli"ies and the Poli"yholderEs Ser(i"es

R+/#%( - O''#*+$
Regional O%%i"es# ea"h headed +y a Regional :hie%# su)er(ise +usiness a"ti(ities o% the Kones %un"tioning under them*

P!#(*#, - O''#*+
The )rin"i)al o%%i"e# +ased at Lara"hi# is res)onsi+le %or "or)orate a"ti(ities su"h as in(estment# real estate# a"tuarial# o(erseas o)eration# et"*

MAAOR ACHIEVEMENTS
The maMor %un"tion o% the State Li%e Insuran"e :or)oration o% Pakistan is to "arry out Li%e Insuran"e &usiness B ho'e(er# it is also in(ol(ed in the other related +usiness a"ti(ities su"h as
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In(estment o% )oli"yholdersE %und in !o(ernment se"urities Sto"k market Real Estate The maMor a"hie(ements o% State Li%e are as under? 16 The :or)oration has redu"ed u) to33C in the )remiums on the )ast and )otential Li%e Poli"ies %or the +ene%it o% the Poli"yholders* 26 It is a )ro%ita+le organi.ation and it )aid R$626@D; 2#--#%( as di(idend to the !o(ernment o% Pakistan sin"e its in"e)tion in 19;26 36 State Li%e has )layed (ery (ital role in the e"onomy +y )ro(iding em)loyment to the )eo)le o% the "ountry As )ermanent em)loyees As )art o% its marketing %or"e In(esting the huge %unds in di%%erent se"tors o% the e"onomy* ?6 * The In(estment Port%olio o% State Li%e as at 3161262<1< stands at R$61916??D 2#--#%($* D6 In(estment )ort%olio also in"ludes in(estment in Real Estate 'hi"h stands at &ook (alue R$626D38 2#--#%( as at 3161262<1< @6 =hereas -air (alue is R$6216@81 2#--#%( as at 3161262<1< ;6 The Paid u) :a)ital in"reased %rom R$61< .#--#%( in 1872 to R$619 1<< .#--#%( in 2010* 86 The Premium in"ome in"reased %rom R$6<631; 2#--#%( in 1872 to 2863@;2#--#%( in 2010* 96 Similarly In(estment in"ome in"luding rental in"ome in"reased '!%. R$6<681 2#--#%( in 1872 to 2;?61D2 2#--#%( in 2010* 1<6 Total statutory %und o% State Li%e stands " R$61996??D 2#--#%( in 2010 as against R$616?9? 2#--#%( in 1872* 116 State Li%e is smoothly stri(ing to'ards its o+Me"ti(e o% making li%e insuran"e a(aila+le to large se"tion o% the so"iety +y e1tending it to "ommon man*
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As at 3e"em+er# 2<1< the total num+er o% )oli"ies in %or"e <nder indi(idual li%e 2689D .#--#%( 36;D? .#--#%(

<nder grou) li%e insuran"e

CHRONOLOGY OF EVENTS
Taking o(er o% management o% li%e insuran"e "om)anies18 $ar"h 1872 Esta+lishment o% state li%e insuran"e "or)oration No(# 1872 Redu"tion o% )remium rates on ne' )oli"ies No(# 1872 Redu"tion o% )remium rates on old )oli"ies /an# 187, Esta+lishment o% <L +ran"h 1872 $erger o% units and %ormation o% .ones 1875 Esta+lishment o% +ran"h o%%i"e in 3u+ai Esta+lishment o% agen"y o%%i"e in Lu'ait Esta+lishment o% $ultan .one 1895 Esta+lishment o% -aisala+ad .one 1896 Esta+lishment o% !uMran'ala .one 1896 Esta+lishment o% Su"ker .one 1880 1st 1st 1st 1st 1st /an# O"t#

/uly 1879 $ay# 189, 1st 1st 1st 1st O"t# mar"h# /uly A)ril#

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Esta+lishment o% +ran"h o%%i"e in Pakistan 1882

$ay#

CORE VALUES
MISSION:
To remain the leading insurer in the "ountry +y e1tending the +ene%its o% insuran"e to all se"tions o% so"iety and meeting our "ommitments to our )oli"y holders and the nation.

EUALITY POLICY:

To ensure satis%a"tion o% our (alued )oli"yholders in )ro"essing ne' +usiness# )ro(iding a%ter sales ser(i"e and o)timi.ing return on Li%e -und through a Fuality "ulture and to maintain oursel(es leading li%e insurer in Pakistan

OBAECTIVES:
To run li%e insuran"e +usiness on sound line* To run li%e insuran"e +usiness on sound line* To )ro(ide more e%%i"ient ser(i"e to the )oli"yholders* To ma1imi.e the return to the )oli"yholders +y e"onomi.ing on e1)enses and in"reasing the yield on in(estment* To make li%e insuran"e a more e%%e"ti(e means o% mo+ili.ing national sa(ings* To 'iden the area o% o)eration o% li%e insuran"e and making it a(aila+le to as large a se"tion o% the )o)ulation as )ossi+le# e1tending it %rom the "om)arati(ely more
22

INTERNSHIP REPORT

a%%luent se"tions o% so"iety to the "ommon man in to'ns and (illages* To use the )oli"yholders %und in the 'ider interest o% the "ommunity*

ORGANI>ATIONAL STRUCTURE
It is headed +y "hairman M!6 S1 1#0 AF#F S#00#G# 'ho is a :HIE- ENE:<TI;E o% the "or)oration and a))ointed +y the go(ernment the other administrati(e le(el and authorities is gi(en +elo'

MANAGEMENT HIERARCHY:

2,

INTERNSHIP REPORT

ORGANOGRAM:

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INTERNSHIP REPORT

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INTERNSHIP REPORT

B% !0 %' D#!+*"%!$?
It "om)rises o% 7 dire"tors# "hairman and se"retary +oard 'ho are res)onsi+le %or making )lans and )oli"ies to a"hie(e the set goals o% the organi.ation* $r* Shahid A.i. SiddiFi $r* Oamar Kaman :haudhry $rs* S)enta Landa'alla $r* Aslam -aruFue $r* Amin Oasim 3ada $r* Rasheed >*:hinoy Syed A* =aha+ $ehdi Syed Hur Riahi !arde.i $r* Ak+ar Ali Hussain :HAIR$AN 3IRE:TOR 3IRE:TOR 3IRE:TOR 3IRE:TOR 3IRE:TOR 3IRE:TOR 3IRE:TOR SE:RETAR> &OAR3

E4+*)"#3+ D#!+*"%!$?
It "om)rises o% 2 mem+ers res)onsi+le %or im)lementation o% )oli"ies and dire"ti(es o% the +oard o% dire"tors* Syed Arshad Ali $s* Nargis !haloo $r* $ohammad >ahya $r* Allah Rakha Aasi

R+/#%($?
There are ? !+/#%($ in Pakistan headed +y regional "hie%s res)onsi+le %or looking a%ter all the .ones under his administration* These regions areC Southern Region :entral Region $ultan Region
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INTERNSHIP REPORT

>%(+$?

North Region

There are 2@ F%(+$ in Pakistan headed +y the .onal head res)onsi+le %or )ro"urement o% +usiness to a"hie(e the set +usiness target o% the organi.ation* The 2 $#* $"!)*")!+ %' "1+ C%!,%! "#%( "onsists o%? -our Regional O%%i"es# T'entyGSi1 Konal O%%i"es# A %e' Su+GKonal O%%i"es# 111 Se"tor O%%i"es# A net'ork o% 261 Area O%%i"es a"ross the "ountry %or Indi(idual Li%e Insuran"eC -our Konal O%%i"es# 6 Se"tor O%%i"es 'ith 20 Se"tor Heads %or !rou) 4 Pension are in(ol(ed in the $arketing o% Li%e Insuran"e Plans )oli"ies and )rodu"ts o%%ered +y State Li%e and a Prin"i)al O%%i"e* The Konal O%%i"es deal e1"lusi(ely 'ith Sales and $arketing* <nder'riting o% Li%e Insuran"e Poli"ies and the Poli"yholderEs Ser(i"es* Regional O%%i"es# ea"h headed +y a Regional :hie%# su)er(ise +usiness a"ti(ities o% the Kones %un"tioning under them* The Prin"i)al O%%i"e# +ased at Lara"hi# is res)onsi+le %or "or)orate a"ti(ities su"h as in(estment# real estate# a"tuarial# o(erseas o)erations# et"* Lara"hi @SouthernA Kone Lara"hi @:entralA Kone Lara"hi @EasternA Kone Hydera+ad Kone Ouetta Kone Sukkur Kone $ir)urkhas Kone Larkana Kone Lahore :entral Kone
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INTERNSHIP REPORT

Lahore =estern Kone !uMran'ala Kone -aisala+ad Kone Sargodha Kone Sialkot Kone $ultan Kone Sahi'al Kone Rahim>ar Lhan Kone 3era !ha.i Lhan Kone &aha'al)ur Kone Pesha'ar Kone Ra'al)indi Kone A++otta+ad Kone !uMrat Kone Islama+ad Kone $ir)ur @ALA Kone

G!%),

S'at Kone

(0 P+($#%(:

There are 2 .onal o%%i"es o% !rou) 4Pension and under these .ones there are many se"tor o%%i"esC !rou) and Pension Ra'al)indi Kone !rou) and Pension Pesha'er Kone !rou) and Pension Lara"hi Kone !rou) and Pension Lahore Kone

29

INTERNSHIP REPORT

P !": 3

PRODUCTS
As 'e kno' that SLI: has dominated li%e insuran"e market and it a"Fuires a+out 80P market share o% li%e insuran"e* So it has introdu"ed a great num+er o% )rodu"ts and it is o%%ering )rodu"ts a))ro)riate %or e(ery inha+itant o% Pakistan SLI: o%%ers di%%erent )rodu"ts %or Indi(idual li%e !rou) li%e insuran"e

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INTERNSHIP REPORT

INDIVIDUAL PRODUCTS

LIFE

W1%-+ L#'+ A$$)! (*+:

It is a uniFue "om+ination o% )rote"tion and sa(ings at a (ery e"onomi"al )remium* 3eath at any time +e%ore age 95 years terminates )ayment o% )remiums and the sum insured and atta"hed +onuses +e"ome )aya+le* In the e(ent the insured sur(i(es to the )oli"y anni(ersary at age 95 years# the )oli"y matures and the sum insured )lus +onuses +e"ome )aya+le* <nder this )lan the rates o% +onuses are usually mu"h higher than the other )lans and they hel) in in"reasing not only )rote"tion +ut also the in(estment element o% the )oli"y su+stantially* This )lan is +est suited %or youngsters 'ho ha(e at initial stages o% their "areers and "annot a%%ord to )ay high )remiums* Indi(iduals 'ho anti"i)ate reFuirement o% a lum) sum in %ar %uture "an also this )lan

E(0%:.+(" A$$)! (*+:

ItEs a sa%est and surest method o% guaranteed "ash )ro(ision either at a s)e"i%ied time or at death @Allah %or+idA* <nder these )oli"ies# the sum insured )lus +onuses are )aya+le at the end o% the s)e"i%ied num+er o% years or at death o% the li%e insured i% earlier* Premiums are )aya+le %or the s)e"i%ied num+er o% years or till death# i% earlier* The +ene%its under the )lan "an +e %urther in"reased +y atta"hing su))lementary "o(ers* The )lan ser(es the reFuirements o% a %amily in (arious sha)es +y 'ay o% %inan"ial hel) at retirement# edu"ation o% "hildren or )ro(ision o% "a)ital %or +usiness*

A("#*#, "+0 E(0%:.+(" A$$)! (*+:

This is a modi%ied %orm o% endo'ment assuran"e and is also "alled QThree Payment PlanE* &esides %ul%illing the longGterm %inan"ial needs# it also hel)s in meeting the shortGterm
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INTERNSHIP REPORT

%inan"ial e1igen"ies* As the name suggests# the )lan o%%ers three )ayments throughout term o% the )oli"y* The )lan o%%ers sur(i(al +ene%its eFual to 25P o% sum insured on "om)letion o% 1R,rd and 2R,rd term o% the )oli"y* I% the )oli"yholder does not 'ithdra' the sur(i(al +ene%its# a (ery attra"ti(e s)e"ial re(ersionary +onus is a(aila+le* On "om)letion o% term o% the )oli"y# the remaining 50P sum insured )lus a""rued +onuses shall +e )aya+le* I% the li%e insured e1)ires during term o% the )oli"y# sum insured# a""rued +onuses# un"laimed sur(i(al +ene%its and s)e"ial re(ersionary +onuses are )aya+le* The )lan is suita+le %or the indi(iduals 'ho ha(e longGterm %inan"ial needs +ut also anti"i)ate reFuirement o% money relati(ely earlier* Three Payment Plans hel)s %ul%illing these shortGterm %inan"ial needs 'ithout terminating the a"tual "ontra"t*

S 0 2 1 ! P- (:
Sada+ahar is an anti"i)ated endo'ment ty)e 'ithG)ro%it )lan that )ro(ides lum) sum +ene%it at "ertain stages during the )remiumG)aying term or on earlier death* In addition# this )lan has a +uiltGin A""idental 3eath &ene%it @A3&A rider so that the )oli"yholder gets an additional sum assured in "ase o% death due to an a""ident* This )lan is a sa%e instrument %or "ash )ro(ision at the time o% need* =ith this )lan# the )oli"yholder "an se"ure greater )rote"tion and "ontinued )ros)erity %or the %amily at a%%orda+le "ost a%%orda+le "ost*

Admissi+le Ages and Terms this )lan is a(aila+le to all mem+ers o% the general )u+li"# aged %rom 20 to 60 years nearest +irthday* &oth males and %emales may )ur"hase this
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INTERNSHIP REPORT

)lan* Terms o%%ered under this )lan are 12# 15# 19# 21# 22# 27 and ,0 years.

S)!3#3 - B+(+'#"$:
On "om)letion o% oneGthird o% the )oli"y term# 20P o% +asi" sum assured "an +e taken +y the )oli"yholder* Another 20P o% the sum assured "an +e taken on "om)letion o% t'oGthird o% the )oli"y term and the remaining 60P o% +asi" sum assured )lus a""rued +onuses @i% anyA shall +e )aya+le at the end o% the )oli"y term in the e(ent o% sur(i(al o% the assured* 1A I% the o)tion to 'ithdra' an installment o% 20P sum assured is not e1er"ised on the due date or 'ithin 6 months a%ter the due date# a s)e"ial +onus 'ill automati"ally +e added to the )oli"y at the end o% 6 months* In this e(ent? 2A On death o% the assured 'hile the )oli"y is in %or"e# the s)e"ial +onus 'ill +e )aya+le in addition to @1A &asi" Sum Assured @2A Other Re(ersionary &onuses a""rued on the )oli"y and @,A the amount o% any installment le%t 'ith State Li%e* ,A On the maturity date# the s)e"ial +onus 'ill +e )aya+le together 'ith all the installments o% the sum assured remaining 'ith State Li%e# in addition to regular re(ersionary +onuses a""rued on the )oli"y* 2A So long as the )oli"y remains in %or"e# the )oli"yholder may surrender the un"laimed installment o% sum assured together 'ith the related s)e"ial +onus* The aggregate "ash surrender (alue o% the t'o shall not +e less than the amount o% the said un"laimed installment* 5A The re(ersionary +onuses as )er usual )ra"ti"e 'ill "ontinue to +e allotted ea"h year on the +asi" sum assured @i% in %or"eA as and 'hen A"tuarial Sur)lus is de"lared* Ho'e(er the un"laimed installments o% the sum assured and related s)e"ial +onus 'ill not )arti"i)ate in State Li%eEs A"tuarial Sur)lus*
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INTERNSHIP REPORT

D+ "1 B+(+'#"$:
The %ull +asi" sum insured )lus a""rued +onuses are )aya+le on death o% insured any time 'hile the )oli"y is in %or"e* In addition# i% death o""urs as a result o% an a""ident# additional amount eFual to one +asi" sum assured# su+Me"t to ma1imum limit# 'ill +e )aid* The usual ma1imum on the A3& o% Rs* 2 million 'ill a))ly and )remium 'ill +e "al"ulated a""ordingly

B%()$+$:
This )oli"y 'ill )arti"i)ate in State Li%eEs sur)lus* Rates o% +onus a))li"a+le 'ill +e 25P higher than those on anti"i)ated endo'ment )lan* <nder endo'ment insuran"e these )lans are a(aila+le*

S1 0 A2 0 A$$)! (*+:
Shad A+ad Plan is an e1tended %orm o% endo'ment assuran"e* The +ene%its under the )oli"y in"rease mani%old in the e(ent o% death o% the li%e insured* On "om)letion o% term o% )oli"y# sum insured )lus +onuses atta"hed to the )oli"y are )aya+le* Ho'e(er# on death during the )oli"y term# the death +ene%it "onsists o% dou+le o% sum insured 'ith a""rued +onuses* In "ase o% death due to a""ident# the death +ene%it "onsists o% %our times the sum insured )lus +onuses* The "o(erage "an +e %urther 'idened +y atta"hing su))lementary "o(ers 'ith the )oli"y* This )lan meets the reFuirements o% those 'ho a))re"iate the +asi" sa(ings )ur)ose o% endo'ment assuran"e +ut also like some additional "o(er to )rote"t lo(ed ones in "ase they die# Allah %or+id# +e%ore maturity*

C1#-0 E0)* "#%( H M !!# /+ A$$)! (*+:

:hild Edu"ation 4 $arriage Assuran"e is a )lan %or the )rote"tion o% "hildEs %uture* It )ro(ides a lum) sum +ene%it %or
,,

INTERNSHIP REPORT

the "hild at the "om)letion o% the )oli"y term* On "om)letion o% term o% the )oli"y# %ull sum insured together 'ith the a""rued +onuses +e"ome )aya+le to the )oli"yholder* I% the )oli"yholder dies @Allah %or+idA +e%ore "om)letion o% the term# a %amily in"ome +ene%it o% Rs 220 )er 1000 sum insured )er annum is )aid to the "hild until the "om)letion o% )oli"y term* -urther# %uture )remiums under the )oli"y are 'ai(ed and )oli"y remains in %or"e 'ith %ull sum insured and "ontinues to )arti"i)ate in State Li%eEs sur)lus and re"ei(e +onuses* <)on the "om)letion o% )oli"y term# the "hild gets t'o o)tions o% either getting the )ro"eeds in a lum) sum or in %i(e eFual installments*

i* ii* iii*

:ontinue the )oli"y in the same manner as earlier +y s'it"hing the )lan %or the +ene%it o% another "hild* !et a re%und o% all the )re(ious )remiums )aid till the death o% the "hild or the "ash (alue o% the )oli"y# 'hi"he(er is higher and terminate the "ontra"t* :ontinue the )oli"y 'ithout naming another "hild in 'hi"h "ase the +ene%it o% Re%und o% Premium Sas )ro(ided a+o(e under "ondition @+AT 'ill not +e a(aila+le* :hild Edu"ation 4 $arriage Plan is suited %or the )arents 'ho are "ons"ious a+out the %uture o% their "hildren* The term o% the )lan is su"h that the lum) sum +ene%it +e"omes )aya+le 'hen the "hild attains a )redetermined age o% 19# 21 or 25 years* These ages may +e sele"ted "onsidering the o""asion at 'hi"h "hildren generally need %inan"ial assistan"e %or higher edu"ation# marriage# or setting u) +usiness* 3e)ending u)on your indi(idual needs# the )lan is a(aila+le in t'o se)arate (ersions o% 'ith and 'ithout +uiltGin %amily in"ome +ene%it* In addition to )arent# this )lan "an also +e a%%e"ted +y grand)arents# un"les# aunts or any other )erson 'ho is )aying %or the maintenan"e o% the "hild

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INTERNSHIP REPORT

A++3 (S "1# A$$)! (*+:

This is a Moint li%e )lan and "o(ers li(es o% t'o )artners say hus+and and 'i%e simultaneously* Premiums are )aya+le till the end o% the s)e"i%ied term or till death o% either o% the insured )ersons# i% earlier* The )lan "ontains e1tensi(e +ene%itsC an o(er(ie' o% 'hi"h a))ears as under? On the death o% the %irst li%e# the sum insured 'ill +e )aid to the sur(i(or* -urther )remiums under the )oli"y 'ill +e 'ai(ed# +ut the insuran"e )rote"tion o% the se"ond li%e 'ill "ontinue* Also# the )oli"y 'ill "ontinue to )arti"i)ate in )ro%its o% the :or)oration* On death o% the se"ond li%e# again the sum insured 'ill +e )aid together 'ith the atta"hing +onuses* In this e(ent the )oli"y 'ill terminate* I% the se"ond li%e sur(i(es the term o% the )oli"y# he or she 'ill +e )aid sum insured together 'ith the atta"hed +onuses# e(en though the sum insured has +een )aid on"e# on the death o% the %irst li%e* I% +oth the li(es sur(i(e the term o% the )oli"y# the sum insured 'ill +e )aid to them Mointly# only on"e# together 'ith the atta"hed +onuses* 3i%%erent su))lementary "o(ers are also a(aila+le %or in"reasing "o(erage under the )oli"y*

C1#-0 P!%"+*"#%( A$$)! (*+:

This is a Moint li%e assuran"e and "o(ers the li(es o% "hild and either o% the )arents* I% the )oli"yholder and the "hild +oth sur(i(e %ull term o% the )oli"y# sum insured and a""rued +onuses +e"ome )aya+le* I% the )oli"yholder dies +e%ore
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INTERNSHIP REPORT

"om)letion o% term o% the )oli"y the )ayment o% )remiums "eases and the "hild is )aid an in"ome o% Rs 100RG )er thousand sum insured )er annum till the "om)letion o% the )oli"y term* On "om)letion o% )oli"y term# sum insured in"lusi(e o% +onuses a""rued till the death o% the )oli"yholder is )aid to the "hild* I% the "hild dies @Allah %or+idA +e%ore maturity o% the )oli"y and during li%etime o% the )oli"yholder# the death "laim )aya+le to the )oli"yholder de)ends on the age at death o% the "hild* As the name suggests# the )lan is suita+le %or )arents 'ho 'ant to "ater %uture %inan"ial needs o% their "hildren in "ase o% death o% the +read'inner o% the %amily* The )lan has a uniFue %eature o% )ro(iding "o(erage on the li%e o% "hild* The "o(erage o% the )oli"y "an %urther +e 'idened +y atta"hing su))lementary "o(ers*

S)(+1!# P%-#*&:
Sunehri Poli"y is an inno(ati(e li%e insuran"e )rodu"t* It is %le1i+le# se"ure and meets the "hallenges o% in%lation Fuite e"onomi"ally* <nder a s)e"ial %eature o% this )lan# %rom third )oli"y year on'ards# sum insured under the )oli"y and )remium 'ill in"rease +y 6P )er annum 'ithout )ro(iding any e(iden"e o% insura+ility* -rom the third )oli"y year on'ard# the )oli"yholder is )ro(ided 'ith a statement sho'ing the +uildu) o% "ash (alue o% the )oli"y and sum insured %or the year* The )oli"y also )arti"i)ates in the sur)lus o% State Li%e and

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INTERNSHIP REPORT

"urrently the rate o% +onus is Rs 105 )er thousand )er annum o% the adMusted o)ening "ash (alue*

O,"#%( - M ")!#"& E(0%:.+(":

It is an endo'ment assuran"e 'ith a +uilt in o)tion to mature early* The )lan is a(aila+le %or indi(iduals aged 20 to 25 years* The )oli"yholder has %ollo'ing o)tions regarding maturity o% this )lan* A%ter the )oli"y has +een in %or"e %or 20 years or more# the )oli"yholder gets an o)tion to mature the )oli"y %or a )ro)ortionately redu"ed sum insured* A%ter the )oli"y has +een in %or"e %or 20 years or more# the )oli"yholder# de)ending on his or her needs# "an mature the )oli"y in )arts* Let the )oli"y mature at originally sele"ted term* In this "ase the )oli"yholder gets an additional +onus* The )oli"y )arti"i)ates in +onuses de"lared +y State Li%e %rom time to time* Please "li"k here %or details o% +onuses "urrently a(aila+le %or this )lan* :o(erage under the )oli"y "an also +e enhan"ed +y atta"hing su))lementary "o(ers .

N#/+12 ( P- (:
This )lan )ro(ides term insuran"e "o(er %or a )eriod ranging %rom 5 to 10 years* As the name suggests# this )lan is meant to )ro(ide )rote"tion during the term o% the )oli"y only i*e* sum insured is )aya+le on death i% it o""urs during the term o% insuran"e 'hile the )oli"y is in %or"e* The )lan does not "arry any sur(i(al +ene%its# maturity +ene%its# surrender (alues# loan (alues et"* The )oli"ies 'ill +e 'ithout )ro%its* The )lan is a(aila+le in t'o (ersions namely# 'ith single )remium and 'ith annual )remiums* Atta"hing "ertain su))lementary "o(ers "an 'iden the "o(erage under the )lan*

M)1 ' FP-)$ A$$)! (*+:

$uha%a. Plus )ro(ides a su+stantial sum o% money on maturity or earlier death @Allah %or+idA o% the li%e insured* On maturity#

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INTERNSHIP REPORT

the )oli"yholder 'ill re"ei(e sum insured )lus +onuses atta"hed 'ith the )oli"y* Ho'e(er i% the li%e insured dies +e%ore "om)letion o% term o% the )oli"y# +asi" sum insured )lus atta"hed +onuses 'ill +e )aid to the de)endants immediately* In "ase o% death due to a""ident# the dou+le o% the sum insured is )aid* In addition# the de)endents 'ill also +e )aid an in"ome o% Rs 220 )er thousand sum insured )er annum %or a %i1ed )eriod o% 15 years* The %irst )ayment 'ill %all due on the )oli"y anni(ersary immediately a%ter the death o% the li%e insured*

SHEHNAI POLICY:
F+ ")!+$:
Shehnai Poli"y is an inno(ati(e li%e insuran"e )rodu"t* It )ro(ides a solution to the )ro+lems o% many "on"erned )arents 'ho 'ant to sa(e no' in order to )ro(ide %or their "hildrenEs higher edu"ation# marriage and other e1)enses 'hen the need arises* The term o% the )lan is su"h that the lum) sum +ene%it +e"omes )aya+le as the "hild attains the age o% 25 years* Shehnai Poli"y also "aters %rom the ra(ages o% in%lation* This is done +y the o)tion o% automati" in"rease o% 6P )er annum in sum insured and )remium %rom third )oli"y year on'ard* -rom the %ourth )oli"y year on'ard# the )oli"yholder is )ro(ided 'ith a statement sho'ing the +uildu) o% "ash (alue o% the )oli"y and sum insured %or the year* The )oli"y also )arti"i)ates in the sur)lus o% State Li%e and "urrently the rate o% +onus is Rs 105 )er thousand )er annum o% the adMusted o)ening "ash (alue

M ")!#"& B+(+'#":
The )oli"y matures 'hen the "hild attains age 25 years* At maturity the "ash (alue o% the )oli"y is )aid to the "hild* The "ash (alue in"ludes all the +onuses atta"hed 'ith the )oli"y .

D+ "1 B+(+'#":
I% the li%e insured dies during term o% the )oli"y# )remium )ayments sto) and the sum insured a))li"a+le to the )oli"y year o% death is de%erred to +e )aya+le 'hen the "hild attains
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INTERNSHIP REPORT

age o% 25* At the time o% death o% the li%e insured# the said sum insured is added to the UadMusted o)ening "ash (alueV to +e "alled the Uenhan"ed "ash (alueV and )arti"i)ates in State Li%eEs sur)lus until it is )aid out to the "hild 'hen he or she attains the age o% 25 >ears* The "hild 'ill ha(e an o)tion o% either "olle"ting the +ene%it in a lum) Sum or in %i(e eFual annual installments*

SUPPLEMENTARY CONTRACTS
SLI: o%%ers a num+er o% su))lementary "o(ers to enhan"e "o(erage under di%%erent )lans* These su))lementary "o(ers "an +e atta"hed 'ith the main )oli"y and are not a(aila+le e1"lusi(ely* A""idental 3eath 4 Indemnity &ene%it @AI&A A""idental 3eath &ene%it @A3&A -amily In"ome &ene%it @-I&A =ai(er o% Premium @=PA S)e"ial =ai(er o% Premium @S=PA Term Insuran"e @TIA !uaranteed Insura+ility @!IA Re%und o% Premium Rider @RPRA Hos)ital 4 Surgi"al &ene%it @H4SA

A**#0+(" D+ "1 H I(0+.(#"& B+(+'#" 7AIB8:

This su))lementary "o(er )ro(ides %or )ayment o% additional amount eFual to the sum insured under the )oli"y in the e(ent o% death +y a""idental means# or in the e(ent o% loss o% t'o or more lim+s or loss o% sight in +oth eyes* OneGhal% o% the sums insured 'ill +e )aid %or loss o% one lim+C oneGthird o% sum insured in the e(ent o% loss o% one eye and oneG%ourth o% sum insured 'ill +e )aid %or loss o% thum+ and inde1 %inger* $oreo(er# 'eekly indemnities are also a(aila+le %or total and )artial disa+ility o% the li%e insured as a result o% the a""ident* I%
,8

INTERNSHIP REPORT

the li%e insured +e"omes )ermanent and total disa+le# an annuity o% 10P o% sum insured 'ill +e )aya+le %or a ma1imum )eriod o% ten years* AI& is suita+le %or o%%i"e "ommuters and indi(iduals 'ho tra(el and use di%%erent modes o% trans)ort* The rates o% )remium %or this su))lementary +ene%it range %rom Rs 2 to Rs10 )er thousand sum insured de)ending u)on the o""u)ational rating o% )ro)oser %or standard li(es 'hose age should +e +et'een 19 to 55 years* AI& "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e Shad A+ad Assuran"e Shehnai Poli"y :hild Prote"tion Assuran"e @-or adult li%e onlyA $uha%i. Plus Assuran"e Nigeh+an Plan O)tional $aturity Plan

A**#0+(" - D+ "1 B+(+'#" 7ADB8:

This su))lementary "o(er 'ill )ro(ide %or )ayment o% an additional amount eFual to sum insured in the e(ent o% death +y an a""ident as de%ined in the "ontra"t* On )ayment o% a modest )remium# a handsome a""idental "o(erage is o+tained through this su))lementary "o(er* A3& is highly re"ommended %or indi(iduals 'ho tra(el daily through road trans)ort* The "o(er is a(aila+le to li(es +et'een 5 and 55 years o% ages* $a1imum term o% this su))lementary +ene%it is not allo'ed to e1"eed the )remium )aying term o% the +asi" )oli"y# or 60 years o% age o% the li%e )ro)osed 'hi"he(er is earlier A3& "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e

20

INTERNSHIP REPORT

F .#-& I(*%.+ B+(+'#" 7FIB8:

This su))lementary "o(er )ro(ides that in"ase o% death o% the li%e insured during term o% this "o(er# an annuity o% 10P to 50P )er annum o% the +asi" sum insured 'ill +e )aya+le till the "om)letion o% term o% this "o(er* -or instan"e# i% a li%e insured has taken 25P -I& su))lementary "o(er %or 20 years on his )oli"y ha(ing sum insured o% Rs 1#000#000* I% the li%e insured e1)ires during term o% -I&# say at the end o% %ourth year# an annual sum o% Rs 250#000 'ill +e )aya+le %or rest o% 16 years* =hile the +asi" )lan )ro(ides a lum) sum# -I& )ro(ides a regular stream o% in"ome to the de)endents and hel)s in meeting the day to day e1)enses* This su))lementary "o(er is a(aila+le to li(es +et'een 19 and 55 years o% ages* It "an +e atta"hed 'ith %ollo'ing )lans? =hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(anSathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e Shad A+ad Assuran"e Shehnai Poli"y :hild Prote"tion Assuran"e @-or adult li%e onlyA $uha%i. Plus Assuran"e O)tional $aturity Plan

Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e Shehnai Poli"y :hild Prote"tion Assuran"e $uha%i. Plus Assuran"e Nigeh+an Plan O)tional $aturity Plan

W #3+! %' P!+.#). 7WP8:

This su))lementary "o(er )ro(ides %or 'ai(er o% due )remiums in the e(ent o% the li%e insuredEs Total and Permanent 3isa+ility "aused +y a""ident as de%ined in the "ontra"t* =ith the hel) o%
21

INTERNSHIP REPORT

=P# the li%e insured gets relie(ed o% (agaries o% )aying )remiums in "ase o% his or her +eing in"a)a"itated as a result o% a""ident* The rate o% )remium %or standard risk 'ill +e Rs 0*50 to 1*00 )er thousand o% sum insured de)ending u)on the age o% li%e insured* =P is a(aila+le to li(es +et'een 19 and 55 years o% ages* It "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e :hild Prote"tion Assuran"e @-or adult li%e onlyA $uha%i. Plus Assuran"e O)tional $aturity Plan

S,+*# - W #3+! %' P!+.#). 7SWP8:

This su))lementary "o(er 'ill )ro(ide %or 'ai(er o% )remiums under the )oli"y in "ase o% the li%e insuredEs Total and Permanent 3isa+ility due to a""ident or disease 'hi"h renders him una+le to engage in any o""u)ation* =ith the hel) o% S=P# the li%e insured gets relie(ed o% (agaries o% )aying )remiums in "ase o% his or her +eing in"a)a"itated as a result o% a""ident or disease* S=P is a(aila+le to li(es +et'een 20 and 55 years o% ages* S=P "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e :hild Prote"tion Assuran"e @-or adult li%e onlyA O)tional $aturity Plan

T+!. I($)! (*+ 7TI8:

22

INTERNSHIP REPORT

In the e(ent o% death o% the li%e insured during term o% TI su))lementary "o(er# the sum insured 'ill +e )aya+le in addition to the +ene%its )aya+le under the +asi" )oli"y* Su))ose# $r* A# "o(ered under a )oli"y o% Rs 1#000#000# and also atta"hes TI su))lementary "o(er 'ith his )oli"y* In "ase o% his death during term o% TI# a sum eFual to Rs 1#000#000 'ill +e )aya+le under this su))lementary "o(er* This 'ill +e in addition to the +ene%its )aya+le under main )oli"y* This su))lementary "o(er is an e1"ellent o))ortunity %or indi(iduals 'ho 'ant to enhan"e "o(erage o% their )oli"y su+stantially on )ayment o% a meager amount o% )remium* TI is a(aila+le to li(es +et'een 19 and 55 years o% age* TIR "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e :hild Edu"ation 4 $arriage Assuran"e Shad A+ad Assuran"e Shehnai Poli"y :hild Prote"tion Assuran"e @-or adult li%e onlyA $uha%i. Plus Assuran"e O)tional $aturity Plan

G) ! ("++0 I($)! 2#-#"& 7GI8:

<nder this su))lementary "o(er# State Li%e gi(es the )oli"yholder a right to )ur"hase additional li%e insuran"e u) to s)e"i%ied ma1imum amounts on s)e"i%ied %urther dates at standard rates# 'ithout e(iden"e o% insura+ility +eing reFuired at su"h later dates* The s)e"i%i" %urther dates on 'hi"h additional insuran"e "an +e taken are the )oli"y anni(ersaries o% the +asi" )oli"y nearest the 25th# 29th# ,1st# ,2th# ,7th and 20th +irthdays o% the li%e insured* Thus the o)tion dates %or (arious issue ages
Issue Ages No of Option Dates 10 24 6 Option Date Ages

25, 28, 31, 34, 37, 40 2,

INTERNSHIP REPORT 25 27 28-30 31-33 34-36 37 5 4 3 2 1 28, 31, 34, 37, 40 31, 34, 37, 40 34, 37, 40 37, 40 40

This su))lementary "o(er is a(aila+le only to standard li(es +et'een 10 and ,7 years o% ages and 'ho are not engaged in ha.ardous o""u)ations* Only one !I 'ill +e issued on the li%e o% any one )erson* !I is a(aila+le only at the time o% issue o% the +asi" )oli"y and "annot +e atta"hed to the )oli"y a%ter its issuan"e* Indi(iduals 'ho %oresee in"rease in their insuran"e needs in the near %uture "an get +ene%it %rom this su))lementary "o(er* It sa(es them %rom )ro(iding any %urther e(iden"e o% insura+ility in "ase they desire to enhan"e "o(erage under the )oli"y* !I "an +e atta"hed 'ith %ollo'ing )lans? =hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e :hild Edu"ation 4 $arriage Assuran"e O)tional $aturity Plan

R+')(0 %' P!+.#). R#0+! 7RPR8:

RPR )ro(ides %or re%und o% )remiums )aid under the )oli"y in the e(ent o% death o% the li%e insured during term o% the )oli"y* It is an ideal %orm o% enhan"ing the li%e "o(er under the )oli"y 'ith a modest in"rease in )remium* This su))lementary "o(er is a(aila+le to li(es +et'een 20 and 60 years o% ages* The a(aila+le term ranges %rom 10 to 25 years* RPR "an +e atta"hed 'ith %ollo'ing )lans? Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e Shad A+ad Assuran"e :hild Prote"tion Assuran"e @-or adult li%e onlyA O)tional $aturity Plan

22

INTERNSHIP REPORT

H%$,#" 7HHS8:

(0 S)!/#* - B+(+'#"$

This su))lementary "o(er )ro(ides +ene%its in "ase o% hos)itali.ation o% the li%e insured# in State Li%eEs a))ro(ed hos)itals# as a result o% si"kness or a""ident* On )ayment o% dou+le amount o% )remium s)e"i%ied %or H4S# the +ene%its and their limits 'ill also +e dou+led* H4S is a(aila+le to li(es +et'een 19 and 50 years o% ages* The a(aila+le term ranges %rom 10 to 25 years* RPR "an +e atta"hed 'ith %ollo'ing )lans?

=hole Li%e Assuran"e Endo'ment Assuran"e Anti"i)ated Endo'ment Assuran"e /ee(an Sathi Assuran"e Shad A+ad Assuran"e :hild Prote"tion Assuran"e @-or adult li%e onlyA O)tional $aturity Plan

GROUP LIFE INSURANCE PRODUCTS

These in"ludes Term Insuran"e S"heme House &uilding 4 )erFuisites Insuran"e S"heme Pay :ontinuation S"heme !rou) Endo'ment Insuran"e S"heme !rou) Pension S"heme
25

INTERNSHIP REPORT

T+!. I($)! (*+ S*1+.+:

!rou) Term Insuran"e Plan )ro(ides li%e insuran"e "o(erage to the mem+er o% a grou)# su"h as the em)loyees o% an em)loyer* The amount o% "o(erage o% ea"h mem+er is determined 'ith re%eren"e to either his designation or salary or em)loyment "ategory or some other similar (aria+le* This )lan )ro(ides insuran"e )rote"tion to the mem+ers o% a grou) at a (ery a%%orda+le minimum )ossi+le "ost# 22 hours "o(erage around the 'orld* &y )romoting a sense o% %inan"ial se"urity amongst the em)loyees it "ontri+utes to im)ro(ing the 'orking en(ironment %or the em)loyer resulting in higher )rodu"ti(ity* In most "ases the em)loyer is legally o+liged to )ro(ide insuran"e "o(er to his em)loyees* This )lan hel)s the em)loyer to %ul%ill this reFuirement* Premiums are ta1Gdedu"ti+le %or the em)loyer* Total )remium under grou) term insuran"e is lo'er as "om)ared to sum o% )remium o% all )oli"ies i% issued indi(idually to ea"h li%e# due to sa(ings in e1)enses* On death o% any insured mem+er the sum assured on his li%e is )aid %or the +ene%it o% his sur(i(ing %amily* This +ene%it is )aya+le regardless o% the total num+er o% the deaths e(en i% the total amount )aid out e1"eeds the total )remiums re"ei(ed under the )oli"y* Ho'e(er# i% in any threeGyear )eriod State Li%e earns a net )ro%it on any )oli"y# then some share in the )ro%it is )assed on to the )oli"yholder# de)ending u)on the total num+er o% mem+ers in the s"heme* This share "an go u) to 80P in "ase o% large si.ed s"hemes* The su))lementary "ontra"ts or riders 'hi"h "an +e atta"hed 'ith this s"heme are?

PTD 7A**#0+("8 R#0+!:

<nder this rider the insured mem+er is entitled to )ayment o% the sum assured in "ase o% any a""ident "ausing )ermanent and total disa+ility# 'hi"h in"ludes loss o% t'o lim+s or t'o eyes or loss o% hearing in +oth ears or se(ere %a"ial dis%igurement* I% the disa+ility is )ermanent +ut not total then
26

INTERNSHIP REPORT

some )er"entage o% the sum assured is )aya+le de)ending u)on the se(erity o% the disa+ility* In this regards the same s"hedule o% disa+ilities is a))li"a+le as is )res"ri+ed under the la+or la's* In "ase o% a tem)orary a""idental disa+ility "ausing a+sen"e %rom 'ork a %ortnightly +ene%it "al"ulated at the rate o% Rs* ,#000 )er month or the monthly salary 'hi"he(er is less is )aya+le*

A6D6B6 R#0+!?
<nder this rider the death +ene%it o% an insured mem+er is dou+led i% the death 'as "aused +y an a""ident*

N ")! - D#$ 2#-#"& R#0+!?

<nder this Rider i% an# insured mem+er is rendered in"a)a+le o% )ursuing any o""u)ation or (o"ation %or gain%ul em)loyment due to )ermanent disa+ility "aused +y disease or si"kness then he is entitled to the sum assured as +ene%it .

C!#"#* - I--(+$$ R#0+!?

I% an em)loyee "ontra"ts any o% the %ollo'ing "riti"al illnesses 'hile insured under this rider then he is entitled to the rider sum assured as +ene%it* :o(ered "riti"al illnesses in"lude* Heart atta"k :oronary Artery +yG)ass surgery Stroke :an"er Lidney -ailure $aMor organ trans)lant su"h as heart# kidney or li(er The insured mem+er must sur(i(e %or at least ,1 days a%ter "ontra"ting the illness to +e"ome eligi+le %or his +ene%it* Some restri"tions a))ly during the %irst t'o years o% "o(erage*

S)#" 2-+ F%!: The )lan is suita+le %or em)loyers 'ho desire to )ro(ide %inan"ial se"urity to their em)loyees +y means o% insuran"e "o(erage or %or mem+ers o% a )ro%essional +ody or asso"iation
27

INTERNSHIP REPORT

or some 'el%are asso"iation or a so"ial "lu+ 'ho desire to a(ail insuran"e )rote"tion on their li%e*

H%)$+ B)#-0#(/ H P+!G)#$#"+$ I($)! (*+ S*1+.+?

<nder this )lan ea"h mem+er o% the grou) is insured %or the total amount o% loan outstanding against him in"lusi(e o% a""umulated interest* The amount o% Insuran"e is the a"tual amount o% loan outstanding on the date o% death 'hereas the )remium is "harged on the a(erage loan outstanding o(er the 'hole )oli"y year* It )ro(ides %inan"ial se"urity to em)loyers and %inan"ial institutions against the risk o% untimely death o% any o% their inde+ted em)loyee or "lient* ;ery o%ten the %amily o% the de"eased )erson is not is a )osition to re)ay the loans taken out +y him# es)e"ially i% the de"eased )erson 'as the sole +read'inning mem+er o% the %amily* In su"h a "ase the insuran"e "o(erage )ro(ides an assuran"e to the "reditor that he 'ould +e a+le to re"o(er his "a)ital 'ithout "ausing hardshi) to the distressed %amily* The "reditor is also )rote"ted %rom the heada"he o% "onstantly monitoring "ases o% delayed re)ayments o% loan in hardshi) "ases "aused +y un%oreseen death o% a +read 'inning %amily mem+er* The )remium due under this )oli"y may +e re"o(ered +y the "reditor %rom the +orro'ers along 'ith the loan re)ayment installments*

B+(+'#"$:
&ene%its o% this )lan are In "ase o% death o% an insured mem+er o% the s"heme the total amount o% the loan outstanding against him in"luding a""umulated interest is )aya+le to the )oli"yholder* In "ase State Li%e earns a )ro%it on any )oli"y during a ,Gyear )eriod# the )oli"yholder is also entitled to some share in the )ro%its de)ending u)on the si.e o% the grou)* Riders or su))lementary "ontra"t that "an +e atta"h 'ith this )lan is
29

INTERNSHIP REPORT

P & C%("#() "#%( S*1+.+:

PT3 @A""identA and N3& rider may +e atta"hed 'ith this )lan* These riders )ro(ide insuran"e "o(er against )ermanent disa+ility due to a""idental and natural "auses rendering the insured mem+er una+le to earn a li(elihood %or himsel% and his %amily* In su"h a "ase the atta"hing riders "an %a"ilitate the "reditor in re"o(ering the outstanding amount o% loan* This )lan is suita+le %or em)loyers 'ho ha(e a s"heme %or )ro(iding loans to their em)loyees %or house +uilding# )ur"hases o% "on(eyan"e or any other goods o% household use* It is also suita+le %or +anks that are in the +usiness o% granting loans to their "lients %or )ur"hase o% house or "on(eyan"e or %or some +usiness (enture* Similarly leasing "om)anies and other %inan"ial institutions 'ith similar %a"ility may %ind this )lan Fuite attra"ti(e*

1* $an)o'er is still "onsidered as one o% the most im)ortant elements o% )rodu"tions in s)ite o% the dramati" gro'th o% mi"ro"hi) +ased automation in all 'alks o% li%e# es)e"ially in "ommer"e and industry* The o(erall e%%i"ien"y o% an organi.ation there%ore de)ends u)on the Fuality o% the man)o'er o% its em)loyees* The more de(oted# hard'orking and loyal the em)loyees the higher the re'ard to the em)loyer in the %orm o% greater e%%i"ien"y and )ro%ita+ility* Ouality man)o'er "an +e attra"ted +y o%%ering a good em)loyee +ene%its )a"kage +ased on ensuring se"urity and )ea"e o% mind o% the 'ork%or"e so that a greater "ommitment is o+tained %rom them* This is 'hy the enlightened em)loyer )ays )arti"ular attention to the 'el%are and 'ell +eing o% their 'ork%or"e through (arious em)loyee +ene%its s"heme* 2* One o% the %un"tions o% su"h s"hemes is to )ro(ide )rote"tion to the em)loyeeEs de)endants in the e(ent o% his death* Progressi(e em)loyers do )ro(ide grou) insuran"e 'hi"h )ays a lum) sum to the de)endants* This ho'e(er does not last long* =hat is reFuired in addition is a regular monthly in"ome %or a )eriod o% time* To meet this ReFuirement State Li%e )roudly )resents a )lan# 'hi"h o%%ers in(alua+le )rote"tion to the em)loyeeEs
28

INTERNSHIP REPORT

%amily during his 'orking li%e* The %amilyEs regular monthly in"ome is )rote"ted %or 15 years or until age 60 'hi"he(er is earlier* In this 'ay "o(erage is )ro(ided %or )ay u)on the death o% the em)loyee* This is illustrated +y the %ollo'ing e1am)le? G a* Su))osing the )ay o% an em)loyee is Rs 2000RG )er month* I% death takes )la"e at age 27 then the +ene%its )aya+le 'ill +e Rs2000RG )er month u) to age 60# IGe*# %or a )eriod o% 1, years* Total amount )aya+le Rs*,#12#000RG +* I% death takes )la"e at age ,5 then the +ene%it )aya+le 'ill +e 2#000RG )er month %or a )eriod o% 15 years* Total amount )aya+le Rs* ,#60#000RG ,* Annual )remiums 'ill +e "al"ulated on the +asis o% the em)loyeeEs )ay and his age and 'ill +e )aya+le at the +eginning o% ea"h s"heme year* I% this )oli"y Fuali%y %or )ro%it "ommission it 'ill +e )aya+le in a""ordan"e 'ith the rules at the end o% , years* 2* :o(er 'ithout medi"al e(iden"e is allo'ed on the same +asis as grou) term 'ith the monthly +ene%its +eing "on(erted into a lum) sum eFui(alent* The total o% the +ene%its so arri(ed at should# ho'e(er not the ma1imum allo'a+le under the )oli"y e1"eed*

G!%), E(0%:.+(" I($)! (*+ S*1+.+:

!rou) Endo'ment S"heme is a uniFue sa(ing and )rote"tion s"heme through 'hi"h the em)loyees o% an em)loyer "an enMoy insuran"e )rote"tion throughout their ser(i"e and also get a lum) sum "ash amount u)on their retirement i% they sur(i(e u) to retirement* In Pakistan most em)loyers do not o)erate any )ension s"heme %or their em)loyees although some em)loyers may ha(e a )ro(ident %und s"heme or a gratuity s"heme* The e1)e"ted +ene%its at retirement under a ty)i"al )ro(ident %und s"heme and gratuity s"heme "om+ined are 'oe%ully
50

INTERNSHIP REPORT

inadeFuate %or a retiring em)loyee %or maintaining his standard o% li(ing a%ter retirement unless he su))lements these +ene%its 'ith his o'n )ersonal sa(ings* Lee)ing this in (ie' some em)loyers may 'ish to en"ourage a ha+it o% sa(ing amongst their em)loyees %or their o'n 'el%are* !rou) Endo'ment Insuran"e S"heme "an +e a means o% introdu"ing a "om)ulsory sa(ing s"heme %or the em)loyees under the s)onsorshi) o% the em)loyer* Parti"i)ation in the s"heme is usually "om)ulsory* Ho'e(er# i% )arti"i)ation in the s"heme is (oluntary# at least 75P o% eligi+le em)loyees must )arti"i)ate .

B+(+'#"$:
<nder this s"heme ea"h em)loyee is )ro(ided insuran"e )rote"tion %or an amount 'hi"h may +e %lat or de)ends u)on the designation or salary o% the em)loyee* The amount o% insuran"e is )aya+le on maturity or death i% it o""urs earlier* In most "ases the term o% the endo'ment insuran"e %or ea"h em)loyee is determined in su"h a 'ay that the )oli"y matures at or near his retirement date* This ena+les the maturity )ro"eeds to "oin"ide 'ith retirement and su))lement the retirement +ene%its*

P!%'#" P !"#*#, "#%(:

The endo'ment insuran"e is issued on a 'ith )ro%its +asis* The same +onus rate is a))li"a+le as %or the "orres)onding indi(idual endo'ment insuran"e )oli"ies*

P!+.#). R "+$
The same )remium rates are a))li"a+le as %or indi(idual endo'ment )oli"y +ut 'ith the added attra"tion that in grou) %orm some (olume dis"ounts are also a))li"a+le de)ending u)on the si.e o% the annual )remium*

S)!!+(0+! V -)+
The )oli"y a"Fuires Surrender ;alue in res)e"t o% a mem+er a%ter insuran"e "o(er has +een in %or"e %or at least t'o years on that mem+er and no )remiums are in de%ault*

L% ( F *#-#"&
51

INTERNSHIP REPORT

<nder this s"heme i% the mem+er needs immediate liFuidity and a )oli"y has a"Fuired Surrender ;alue in res)e"t o% mem+er# heRshe "an a(ail a ma1imum loan o% 90P o% the net surrender (alue o% the )oli"y*

C%("#() "#%( P!#3#-+/+$ :

I% an em)loyee lea(es the ser(i"e o% the em)loyer# he "an surrender his )oli"y against the Net Surrender ;alue* He is also )ro(ided 'ith the o)tion o% "ontinuing his endo'ment insuran"e "o(erage in an indi(idual "a)a"ity 'ithout any e(iden"e o% good health# %or the same sum assured and term as he 'as enMoying during his ser(i"e* The )remium rates a))li"a+le to the )oli"y are the same as are generally a))li"a+le to the same "lass o% +usiness in and indi(idual "a)a"ity* The A3&# PT3 @A""identA and N3& "an +e added to this )oli"y i% desired.

S)#" 2-+ F%!:

This )lan is suita+le %or em)loyers 'ho desire to in"ul"ate a ha+it o% sa(ing amongst their em)loyees in addition to )ro(iding them insuran"e against )remature death*

G!%), P+($#%( S*1+.+:

State li%e# ha(e +e"ome in"reasingly a'are o% the )redi"ament o% )rogressi(e em)loyers 'anting to +etter the li%estyle o% their em)loyees +y )ro(iding %inan"ial se"urity and Mo+ satis%a"tion# +ut not +eing a+le to do so# due to la"k o% a(aila+ility o% a(enues and o))ortunities* This +ooklet is a guide to the State Li%eEs Pension S"heme that ena+les an em)loyer to )ro(ide su+stantial +ene%its to em)loyees and ensure a higher state o% 'ell +eing %or them* It e1)lains the institution# administration and +ene%its o% the )ension s"heme and 'ith the hel) o% e1)ert )ro%essionals in our Pensions 3i(ision# 'e "an assist you in a(ailing it# in your o'n and your em)loyeesE interest* Our re)resentati(es 'ill only +e too )leased to +e o% any ser(i"e to you*

I("!%0)*"#%(:
52

INTERNSHIP REPORT

On"e the 'orking li%e o% an indi(idual is o(er# or he has retired# 'hat 'ill he li(e onW This is a Fuestion 'hi"h e(ery indi(idual %a"es during his 'orking li%e and is o% eFual im)ortan"e to a "on"erned em)loyer* Personal sa(ings# Pro(ident -und and !ratuity are the normal assets he a"Fuires* I% not s)ent )rudently# these assets "an %ritter a'ay in a short time* State li%eEs Pension S"heme is the only sour"e 'hi"h )ro(ides a steady monthly in"ome# 'hen other sour"es o% in"ome sto)* This +ooklet e1)lains ste)G+yGste) the nature o% the Pension S"heme# ho' it o)erates and 'hat are its +ene%its to the em)loyer as 'ell as to the em)loyees* W1 " #$ P+($#%( S*1+.+W &asi"ally it is a sa(ing# or "alls it a "ontri+ution# 'hi"h is "olle"ted during the 'orking li%e o% an indi(idual and in(ested )ro%ita+ly* A%ter retirement the indi(idual is entitled to a steady monthly in"ome %rom a %und +uilt u) %rom the earlier sa(ings* In a sense# it is a re'ard to the em)loyee# granted today# 'hile money is to +e re"ei(ed on retirement*

B+(+'#"$/W1&

P+($#%( S*1+.+W

=e ad(ise a )ension s"heme due to %ollo'ing +ene%its to the Em)loyees? o A%ter retirement 'hen the monthly )ayG"heru+ sto)s# the indi(idual starts re"ei(ing a regular monthly in"ome in the %orm o% a )ension* o =hile "ontri+ution to the s"heme# the indi(idual gets a ta1 "on"ession* o The indi(idual# a%ter retirement# need not %ear o% a drasti" redu"tion in his standard o% li(ing* o All )ensions are "om)letely ta1G%ree* o Retirement "omes as )lanned and not a+ru)tly as a sho"k*

B+(+'#"$ "% "1+ E.,-%&+!:

:ontri+utions to the Pension S"heme +y the em)loyer are treated as +usiness e1)enses and dedu"ti+le in %ull* The kno'ledge that at the end o% the "areer# the em)loyee 'ill get a regular )ension hel)s to +uild u)
5,

INTERNSHIP REPORT

his Mo+ loyalty and the adheren"e to the Mo+# to the em)loyerEs satis%a"tion* Em)loyer does not ha(e to %ind money to "om)ensate an em)loyee 'hen he "eases to 'ork* Sho's that the $anagement "ares %or their sta%% and is "on"erned a+out their 'el%are* Attra"ts ne' em)loyees* Retirement o% )ersonnel is )lanned in ad(an"e# remo(ing un"ertainty +oth %or the em)loyer and the em)loyee* Promotion "hannels in the management hierar"hy are un"logged.

C%., !#$%( :#"1 P!%3#0+(" F)(0 G! ")#"&:

aa

(0

P!%3#0+(" F)(0? This is like a sa(ings +ank* The "ontri+ution o% the em)loyer as 'ell as the em)loyee along 'ith interest a""umulated o(er the years is handed o(er to the em)loyee on his retirement* Ho'e(er# in "ase an em)loyee 'ishes to lea(e +e%ore retirement is due# em)loyerEs "ontri+ution may not ha(e to +e )aidC or only )art )ayment may +e made*
aa

G! ")#"&?

!ratuity is e1"lusi(ely the em)loyerEs "ontri+ution %or the +ene%it o% the em)loyee* -rom hal% to a %ull monthEs salary is "redited %or e(ery year o% ser(i"e* Reser(es are set aside in the +alan"e sheet +ut they do not attra"t ta1 "on"ession# unless it is a %unded s"heme* The se"urity o% the em)loyee to re"ei(e the gratuity is de)endent on the "ontinued e1isten"e o% the em)loyer and his )ro%its# e1"e)t in "ase o% a %unded s"heme*

aa

P+($#%( S*1+.+?

In "om)arison 'ith the a%orementioned t'o retirement +ene%its the Pension S"heme has distin"t ad(antages? Payments through Pension S"heme are guaranteed %or li%e*

52

INTERNSHIP REPORT

A )ensioner "an look %or'ard to his retirement 'ith "on%iden"e and se"urity* Pension S"heme is the only method through 'hi"h regular in"ome a""rues to an em)loyee a%ter retirement* The )ayment o% the )ension is not de)endent u)on the %ortune o% the em)loyer* Lum) sum "om)ara+le to those re"ei(ed %rom !ratuity or Pro(ident -und# "an still is dra'n +y "ommutation or the )ension 'hile maintaining a steady monthly in"ome* State Li%e maintains a %ullG%ledged )ension 3e)artment "a)a+le o% handling ea"h and e(ery s"heme in the most "om)etent and )ro%essional manner* It has a"tuaries# la'yers and other e1)erts# +esides o%%ering a uni%ied administrati(e# te"hni"al and in(estment ser(i"e* An em)loyer "an relie(e himsel% o% the tedious and "um+ersome 'ork +y using the )ro%essional ser(i"e o%%ered +y State Li%e# the maMor ones +eing? 3esigning a Pension S"heme a""ording to an em)loyerEs e1a"t reFuirements# in addition to determining the rate o% "ontri+ution et"* Pre)aration o% e1)lanatory do"uments# i% reFuired# %or "onsideration +y em)loyees* Assisting the em)loyerEs legal ad(isers 'ith the )re)aration o% Trust deed and Rules* Pro(iding reasona+le assistan"e in negotiations 'ith the :entral &oard o% re(enue %or a))ro(al o% the s"heme* $aintenan"e o% Indi(idual re"ords o% mem+ers o% the s"heme# their "ontri+utions# the em)loyerEs "ontri+ution# and )ension a""rued et"* -a"ilities %or )ayment o% )ensions# 'hen due

S+*)!#"&:
All )oli"ies issued +y State Li%e are guaranteed and enMoy %ull %inan"ial se"urity# +a"ked +y the !o(ernment under Arti"le ,5 o% Li%e Insuran"e Nationali.ation Order 1872*

55

INTERNSHIP REPORT

P &.+(" %' P+($#%(

The )ension 'ill +e )aya+le +y monthly installmentsC "ommen"ing %rom the retirement o% mem+er and "eases u)on his death*

G) ! ("++0 P &.+("$
&y in"or)orating a !uaranteed Pension )eriod# )ayment "an +e ensured %or a de%ined )eriod say 5 to 10 years# 'hether or not a )ensioner is ali(e a%ter retirement# i%# ho'e(er# a )ensioner sur(i(es the guaranteed )eriod# )ension 'ill "ontinue throughout his li%etime*

S),,-+.+(" !& B+(+'#"$

They may +e termed as su))lementary# +ut are indeed those in(alua+le %inishing tou"hes that make the )i"ture "om)lete* Em)loyees 'ould not %eel se"ure unless their %amilies 'ere )ro(ided %or in the e(ent o% their untimely demise* At a little e1tra "ost em)loyees may +e gi(en )ea"e o% mind +y )ro(iding these +ene%its# some o% 'hi"h are listed +elo' :-

W#0%:I$ P+($#%( 7),%( 0+ "1 #( $+!3#*+8

The )ension 'ill +e )aya+le to the 'i%e o% a mem+er i% he dies 'hile in ser(i"e* Normally# a 'ido'Es )ension is one hal% o% the mem+erEs )ension entitlement*

28 W#0%:J$ P+($#%( 7),%( 0+ "1 !+"#!+.+("8

'"+!

The )ension is )aya+le to the 'i%e i% the mem+er dies a%ter retirement* In this "ase also a 'ido'Es )ension is one hal% o% the )ension the mem+er 'as re"ei(ing* The 'ido'Es )ension# in either "ase 'ould +e )aya+le %or li%e +ut 'ould "ease in the e(ent o% remarriage*

*8O!,1 (I$ B+(+'#"$

The in"lusion o% or)hanEs +ene%its in Pension S"heme along 'ith the 'ido'Es )ension# gi(es the s"heme a le(el o% "om)leteness* A normal s"ale o% or)hanEs +ene%it is ,,P o% the 'ido'Es )ension )er "hild# )aya+le u)on the "hildEs attainment o% age 19 or earlier marriage* Limit is im)osed on the num+er o% "hildren 'ho "an "laim su"h +ene%its*

08

R+"#!+.+(" A$,+*"$
56

INTERNSHIP REPORT

Pension 'ill +e )aya+le to a mem+er a""ording to a )redetermined s"ale on the normal retirement date %i1ed +y the em)loyer*

+8

E !-& R+"#!+.+("

A mem+er 'ho retires +e%ore his normal retirement date on a""ount o% +e"oming in"a)a"itated# or %or any other reason# may +e granted a redu"ed immediate )ension to "ommen"e on the day %ollo'ing the a"tual date o% retirement*

'8 L "+ R+"#!+.+("

A mem+er 'ho remains in em)loyerEs ser(i"e a%ter the normal retirement date 'ill re"ei(e an a))ro)riately in"reased )ension on retirement*

gA W#"10! : - B+(+'#"$ ?
I% a mem+er 'ithdra's %rom the ser(i"e o% the em)loyer +e%ore the normal retirement date due to any reason and 'ithout any entitlement to early retirement )ension# his %uture "ontri+ution# or "ontri+ution made on his +ehal%# 'ill "ease* &ene%its to +e )aid on 'ithdra'al 'ill de)end u)on the 'ithdra'al %rom ser(i"e rules o% the s"heme* In su"h a "ase one o% the %ollo'ing )ro"edures may +e ado)ted? R+')(0 %' *%("!#2)"#%(: I% a mem+er 'ithdra's %rom the "ontri+utory s"heme a re%und is made o% all the "ontri+utions made +y the em)loyee* D+'+!!+0 P #0=U, P+($#%(: A 'ithdra'ing mem+er may +e allo'ed a de%erred )aidGu) )ension o% the amount a""rued to his a""ount on the date o% 'ithdra'al* The redu"ed )ension 'ill "ommen"e on his normal retirement date*

G!%), P!%3#0+(" F)(0 I($)! (*+ S*1+.+:

!rou) Pro(ident -und Insuran"e S"heme )ro(ides li%e insuran"e "o(erage to the mem+ers o% the )ro(ident %und s"heme o% an em)loyer* The amount o% "o(erage o% ea"h mem+er de)ends u)on his age and the amount o% his )ro(ident %und +alan"e at any time.
57

INTERNSHIP REPORT

W1 " N++0 D%+$ I" F)-'#--K

>oung em)loyees normally ha(e short ser(i"e to their "redit and "onseFuently their Pro(ident -und +alan"e is also Fuite meager* In "ase o% un%ortunate death o% su"h a )erson the )ro(ident %und amount is not adeFuate %or meeting the %inan"ial needs o% the %amily su"h as s"hooling o% the "hildren# their marriage e1)enses and housing a""ommodation* !rou) Pro(ident -und Insuran"e S"heme is s)e"ially designed to meet su"h an e(entually sin"e the +ene%its under the s"heme are on a sliding s"ale.

B+(+'#"$:

On the death o% any mem+er o% the )ro(ident %und s"heme his %amily is )aid a lum) sum amount eFual to the amount o% his %und +alan"e on the date o% his death multi)lied +y a %a"tor de)ending u)on the age o% the em)loyee at death* The %a"tors a))li"a+le %or a ty)i"al s"heme are already gi(en a+o(e ho'e(er the em)loyer in a )arti"ular "ase may adMust these %a"tors to suit his o'n s)e"ial reFuirements* I% the s"heme has 200 or more mem+ers then at the end o% three years the %und is also entitled to some share in the )ro%its de)ending u)on the si.e o% the s"heme.

R#0+!$:
Any rider 'hi"h "an +e added 'ith grou) term insuran"e )lan "an also +e added 'ith this )lan su"h A3&# PT3 @A""identA# N3& or :riti"al Illness :o(er

E0)* "#%( C%("#() "#%( S*1+.+:

Edu"ation o% "hildren is "learly "herished +y e(ery )arent* =hile )arent is ali(e there is no )ro+lem* &ut un %oreseen "an ha))en sometimes disru)ting the edu"ation o% "hildren* To )rote"t against these E(entualities State li%e has designed this )lan*

AIM:

59

INTERNSHIP REPORT

The )ur)ose o% this )lan is to )ro(ide smooth "ontinuation o% edu"ation o% "hild until heRshe "om)letes edu"ation*

BENEFITS:
In e(ent o% @!od %or+idA insured %ather or guardian death SLI: 'ill )ro(ide %ollo'ing +ene%its? S"hool %ee 'ill +e )aid %or remaining )eriod o% "hildren edu"ation In addition# an amount eFui(alent to 12 months %ee +e )aya+le %or uni%orm# +ooks# stationery# and other e1)enses* An in"rease o% 5P )er annum in )ayment 'ill +e gi(en in order to "ater in%lation* All )ayments 'ill +e made to s"hool %or +ene%its o% "hildren*

P !": ?

58

INTERNSHIP REPORT

SLI: has %ollo'ing de)artments 'hi"h )er%orms the di%%erent %un"tions o% SLI:* These de)artments areC Personnel 4 !eneral Ser(i"e 3e)artment Audit 3e)artment -inan"e 4A""ounting 3e)artment Poli"yholder Ser(i"e 3e)artment Ne' &usiness 3e)artment Agen"y 3e)artment

60

INTERNSHIP REPORT

PERSONNEL H GENERAL SERVICE DEPARTMENT

This di(ision has dual %un"tions 1* Personnel management 2* !eneral ser(i"es This de)artment )er%orms %ollo'ing %un"tionsC

FUNCTIONS: P+!$%( - M ( /+.+("

Personnel )oli"ies# moti(ation# in"enti(e and im)lementation o% ser(i"e regulations O%%i"e management de(elo)ment Personnel management Liaison 'ith go(ernment la+or relations and maintenan"e or o%%i"e dis"i)line in"luding in(estigation against o%%i"ers and sta%%

G+(+! - S+!3#*+$
Proc"re#ent Pur"hase o% goods and ser(i"es <ni%orms :ommuni"ation Other ser(i"es M$inten$nce O%%i"e ma"hines 4 eFui)ment -urniture 4 %i1ture Trans)ort 4 "on(eyan"e Tele)hone and tele1
61

INTERNSHIP REPORT

R+- "#%( %' ,+!$%((+- H /+(+! $+!3#*+ 0+, !".+(" :#"1 %"1+! 0+, !".+("$:

Re"ei)t and dis)at"h Assets register Ser(i"e like "anteen se"urity and "leanliness

M ( /+.+(" H#+! !*1&:

62

INTERNSHIP REPORT

SE:TIONS?
P+!$%((+- S+*"#%(:
All the em)loyee matters su"h as a))ointment# )romotion# demotion# trans%er and allo'an"es are dealt +y )ersonnel se"tion* Annual "on%idential re)ortsG A:R the em)loyees are )re)are# under the su)er(ision o% this se"tion# +y the de)artmental heads* -or the a))ointment o% the sta%%# an ad(ertisement is initiated in the ne's)a)er* Konal head is "om)etent authority %or this a))ointment* This a))ointment also de)ends on the +usiness o% .onal o%%i"e *the a))ointment o% o%%i"ers is done +y )rin"i)al o%%i"e Lara"hi or regional o%%i"e* Sele"tion "ommittee "onstituted +y .onal head "ondu"ts test and inter(ie'* -or )romotion o% the em)loyees# there are A:RES are ne"essary and minimum three years are reFuired to remain in one "adre* Ea"h em)loyee is )romoted +y the "riteria and instru"tions set +y )rin"i)al o%%i"e* PO or Regional o%%i"e does )romotion o% o%%i"ers* In Lahore there are ,62 o%%i"e em)loyees# 8 se"tor head and 2, area managers @A$A*

S)2 S+*"#%($:
There are no o% su+se"tions in this de)artment ;

16 M+0#* - S+*"#%(:

6,

INTERNSHIP REPORT

All the medi"al e1)enses are +eard +y SLI: )ro(ided that these are in"urred in a))ro(ed hos)ital the e1)enses o% medi"ine are reim+ursed* The reim+ursement o% medi"ine is not allo'ed to sta%% @ha(ing grade 1 to 9A +ut they are gi(en Rs 1500 )er month in sha)e o% salary as medi"ine allo'an"e*

26 L+ 3+ S+*"#%(:
-ollo'ing are the t'o main ty)es o% lea(es? :asual lea(e $edi"al lea(e 19 days "asual lea(es are allo'ed to all em)loyees in a year *the medi"al lea(e or a))li"ation lea(e is allo'ed %or 29 days in a year *unused lea(es are a""umulated and a%ter t'o years these lea(es in e1"ess o% 190 days "an +e en"hased# in "ase o% death all lea(es# not utili.ed# "an +e en"hased*

,* R+(" S+*"#%(:
=hen sale manager is )romoted to area manager he is "ategori.ed as A# &# :# and he is entitled to his o'n o%%i"e at his o'n "hoi"e at the e1)enses o% state li%e *a good lo"ation is sele"ted +y A$* A%ter sele"tion o% )la"e# .onal head is in%ormed a+out the lo"ation# +y a))li"ation 'ritten +y A$* This a))li"ation is trans%er to P4!S de)artment %or the analysis o% lo"ation o% the o%%i"e* This lo"ation is analy.ed +y .onal rent "ommittee @KR:A* A lease agreement is made 'ith the landlord a%ter analy.ing the a))ro(ed ma) %or the lo"ation and )ro)erty registration %orm* The o%%i"e rent entitlement %or "ategories o% A# &# :# Am is Rs * 2000# Rs 2000# 4Rs 2000G10000 P*$* res)e"t%ully*

?6 S" "#%( !& S+*"#%(:

This se"tion maintain the re"ord o% stationary su"h as )a)er# )en"il# en(elo)s )rinted letters# %orms# "al"ulators# et" *'hen e(er any de)artment reFuires the stationary #the "on"erned de)artment %ills a reFuisition sli)* The stationary is issued to "on"erned de)artment and is re"orded in the register .

D6 C ,#" - S+*"#%(:
62

INTERNSHIP REPORT

This se"tion is res)onsi+le %or )ur"hase# sale and maintenan"e o% %urniture 4 %i1tureC eFui)ment et" *a .onal )ro"urement "ommittee is "onstituted %or )ur"hase o% assets* The assets are )ur"hased %rom suita+le su))lier a%ter "riti"ally analy.ed the Fuotation o%%ered +y di%%erent (enders* Ea"h year assets are de)re"iated X 10P )*a* the entry %or the )ur"hase asset is made in the register %or %i1ed assets* Ea"h year the "losing +alan"e is intimated to PO Lara"hi*

@6 D #-& A""+(0 (*+:

All the em)loyees o% !rou) and )ension "all their attendan"e +e%ore starting their duty* I% any em)loyee is not at time than he 'ill "all late attendan"e and three late attendan"es 'ill +e "onsidered a "asual lea(e*

;6 R+*%!0 %' E.,-%&++$:

There is "om)lete re"ord o% em)loyees 'ho are at 'ork or ha(e retired* And all ne"essary data is maintained a+out e(ery em)loyee as date o% a))ointment# date o% retirement# )romotions# medi"al ser(i"es and all other data*

AUDIT DEPARTMENT
Audit de)artment o% state li%e do internal audit o% transa"tions 'hi"h o""ur on daily +asis* $anagement o% any organi.ation is res)onsi+le %or ensuring that )ro)er a""ounting re"ords are ke)t and its assets are sa%eguard* To +est dis"harge this res)onsi+ility instituting a system o% internal "ontrol is essential to ensure that 'ork is )ro)erly "arried out +y the em)loyees* The organi.ation then relay on its system %or the )rodu"tion o% relia+le management in%ormation and the %inan"ial a""ounts # and to )re(ent ERROR9FRAUD AND LOSS OF ORGANI>ATIONJS ASSETSa"tually internal audit is a )art o% internal "ontrol*

I("+!( - C%("!%-:
65

INTERNSHIP REPORT

Internal "ontrol may +e de%ined as 'hole system o% "ontrol# %inan"ial and other'ise# esta+lished +y the management in order to "arry out the +usiness o% the organi.ation in an ordinary manner# sa%eguard its assets and se"ure# as %ar as )ossi+le *the a""ura"y 4 relia+ility o% its re"ords* It may +e noted that the "on"e)t o% internal "ontrol goes +eyond %inan"ial and a""ounting matters and the "ustody o% organi.ation assets to in"lude "ontrols designed to im)ro(e o)erational e%%i"ien"y and adheren"e to organi.ation )oli"ies*

O2L+*"$ %' I("+!( - A)0#"

Internal audit is an inde)endent a))raisal %un"tion esta+lished 'ithin an organi.ation to e1amine and e(aluate its a"ti(ities as ser(i"e to the organi.ation* The o+Me"t o% internal audit is to assist mem+er o% the organi.ation is e%%e"ti(e dis"harge o% their res)onsi+ilities* To this end internal auditing %urnishing those 'ith analyses# a))raisal# re"ommendations# "ounsel# and in%ormation "on"erning the a"ti(ities are (ie'ed*

Intern$% $"&itor s'o"%&(

Re(ie' the system to ensure "om)lian"e 'ith those )oli"ies# )lans# )ro"edures# la's and regulations 'hi"h "ould ha(e a signi%i"ant im)a"t on o)erations and re)ort# and determine 'hether the organi.ation is in "om)lian"e* Re(ie' the means o% sa%eguard assets and as a))ro)riate (eri%y the e1isten"e o% su"h assets* A))raise the e"onomy and e%%i"ien"y 'ith 'hi"h resour"es are em)loyed* Internal auditor should +e inde)endent o% the a"ti(ities they audit Internal auditors are inde)endent 'hen they "an "arry out their 'ork %reely and o+Me"ti(ely* TYPES OF INTERNAL AUDIT:

P!+= P%$"=

)0#": )0#":
66

Audit +e%ore making )ayment is "alled )re audit*

INTERNSHIP REPORT

Audit a%ter making )ayment is "alled )ost audit* In !RO<P 4 PENSION mainly is )re audit is used*

E4"+!( -= )0#":
The audit 'hi"h is done through the e1ternal )arties like "hartered %irms* !O;T organi.ation auditR:ommer"ial Audit? Audit o% the Pakistani !O;T o'ned organi.ation is done through the A!P

O2L+*"#3+$ %' I("+!( - A**%)("#(/ C%("!%-$:

The system o% internal a""ounting "ontrol is intended not only to maintain an adeFuate method o% )ro"essing a""ounting data +ut also to sa%eguard the organi.ation against )ossi+le %inan"ial loss due to %raud or error* The "ontrol is designed to ensure thatC The organi.ation re"ei(es and enters its a""ounting re"ords# all the in"ome and re(enue to 'hi"h it is entitled* All e1)enditure is )ro)erly authori.ed* All assets are )ro)erly re"orded and sa%eguard* All lia+ilities are )ro)erly re"orded and )ro(ision is made %or kno'n or e1)e"ted losses* The a""ounting re"ords )ro(ide a relia+le +asis %or the )re)aration o% a""ounts*

I("+!( - A)0#" R%-+ #( S" "+ L#'+:

A""urate in%ormation is one o% the essential %a"tors in the )ro"ess o% de"ision making +oth )oli"y and managementC this is as true in state li%e as in any other organi.ation* in the a+sen"e o% a""urate and de)enda+le in%ormation managementR+oard o% dire"tors are una+le to make )oli"y and management de"isions *as the %un"tion is )assed do'n'ard to the in%rastru"ture o% state li%e# %un"tion o% internal audit a)art %rom the (eri%i"ation o% %inan"ial e(aluation to )in )oint 'eek
67

INTERNSHIP REPORT

areas in the system# internal "ontrol *in state li%e some items are su+Me"t to )reGaudit 'hile some are su+Me"t to )ostGaudit*

L#$" %' , &.+(" $)2L+*" "% ,%$"

)0#":

All )ayment (ou"hers o% salaries# e1"e)t 3e"em+er# /anuary and "hanges* Sta%% o(ertime %ortnightly* $onthly %i1ed o(ertime to sta%% Entertainment to o%%i"ers %or sitting late $onthly o%%i"erEs entertainment and ne's)a)ers $onthly "ar rental to o%%i"ers $onthly tea e1)enses to sta%% Air ti"ket Air insuran"e Tele)hone antise)ti" +ills La+or "harges O%%i"e tele)hones :urrent t monthly salary ad(an"es

P &.+("$ $)2L+*" "% ,!+= )0#":

All in"rease in retainer shi) )ayments 'ill +e )reaudited* All )ayment (ou"hers o% re"o(eries on a""ount o% +ank loan asso"iationRunion su+s"ri)tion )*% "ontri+utions# in"ome ta1 at sour"e and insuran"e )remium# 'ill +e )reG audited in /uly and 3e"em+er only* All "ases 'here a""ident +ene%it is )aya+le 'ill "ontinue to +e )reGaudited*

POLICYHOLDER H SERVICE DEPARTMENT

M ( /+.+(" H#+! !*1& %'PHS D+, !".+(":

69

INTERNSHIP REPORT

PHS de)artment )er%orms %ollo'ing %un"tions* Rene'al or re(i(al o% )oli"ies Alteration in the )oli"y Payments o% death "laims Payment o% maturity "laims Payment o% inMury "laims

R+(+: -/ R+3#3 - %' P%-#*#+$:

PHS does rene'al or re(i(al o% )oli"ies* Rene'al o% )oli"ies is done 'hen term o% the )oli"y ends and )oli"yholder 'ants to rene' his )oli"y* Re(i(al is done o% those )oli"ies 'hi"h has +een la)sed due to none )ayment o% )oli"ies )remium* A la)sed )oli"y may +e re(i(ed during the li%etime o% the li%e insured# +ut 'ithin a )eriod o% 5 years %rom the due date o% the %irst un)aid )remium and +e%ore the date o% maturity* Re(i(al o% a la)sed )oli"y is "onsidered either on nonGmedi"al or medi"al +asis de)ending u)on the age o% the li%e insured at the time o% re(i(al and the sum to +e re(i(ed*
68

INTERNSHIP REPORT

A-"+! "#%(:
Alteration may +e done in ta+le or in "onditions or in sum insured* The endorsement 'ill +e atta"hed 'ith original )oli"y do"uments %or alteration )ur)ose*

K#(0$ %'

-"+! "#%(

:al"ulated alteration :ontra"tual alteration C -*)- "+0 -"+! "#%(

This alteration in"ludes alteration in Sum insured Ta+le 4 term Load A%ter re(i(al term 4 "ondition S)e"ial re(i(al a%ter re(i(al :hange in terms 4 "onditions

C%("! *") -

-"+! "#%(

-or legal )oint o% (ie' this alteration is "alled "ontra"tual alteration* Alteration may ha(e s)e"i%ied )eriod %or alteration in the )oli"ies %or e1am)le in anti"i)ated )oli"ies +e%ore the 2 year o% term o% )oli"y alteration "an +e made* In /ee(an Sathi )oli"y i% any alteration is done it should +e done 'ithin one year* -or this )oli"y the e(aluation 'ill +e on -inan"ial as)e"t Physi"al as)e"t $oral as)e"t

70

INTERNSHIP REPORT

$ode o% )ayment is usually yearly then )oli"y holder in the time on need say to "hange it in the monthly# Fuarterly# hal% yearly* E1"ess is "harged %or this )ur)ose*
Half yearly Quarterly Monthly 52 % of annual premium 27 % annual premium 9% of annual premium

P!%*+0)!+ '%! M ")!#"& C- #.$:

A good ne's letter is send to )oli"yholder "onsists o% %ollo'ing in%ormation* It is a matter o% great )leasure that your )oli"y has matured* It is a time to %ul%ill the goals that you had set years +a"k* -or "olle"ting maturity +ene%its# )lease send a 'ritten reFuest along 'ith %ollo'ing do"uments to your ser(i"ing State Li%e .onal o%%i"e? Original )oli"y do"ument :o)y o% National Identity :ard $aturity dis"harge (ou"her duly (eri%ied +y your +ank I% your signature has "hanged o(er the years# )lease send us your three s)e"imen signatures o% old and ne' styles* Immediately on re"ei)t o% a+o(e do"uments# 'e 'ill )ro"ess the "ase %urther %or )ayment o% amount due# i% any# against maturity "laim under a+o(e )oli"y*

P!%*+0)!+ '%! D+ "1 C- #.:

State Li%e insuran"e )oli"ies )ro(ide 'ide range o% +ene%its in "ase o% death o% the )ersons "o(ered against them* I% lo(ed one "o(ered under any o% State Li%e has e1)ired# you should lodge a death "laim 'ith state li%e* All you ha(e to do is to send a 'ritten intimation to the .onal o%%i"e o% State Li%e ser(i"ing the )oli"y against 'hi"h you are lodging a death "laim* State li%e 'ill# a%ter e(aluating the "ase# "onta"t %or other reFuired do"uments %or )ro"essing o% death "laim*

71

INTERNSHIP REPORT

S)!3#3 - B+(+'#" C- #.:

I% Anti"i)ated Endo'ment Assuran"e )oli"y has "om)leted 1R,rd or 2R,rd term o% the )oli"y# it "an 'ithdra' a sum eFual to 25P o% the sum insured o% )oli"y* -or 'ithdra'al o% Sur(i(al &ene%it# send a 'ritten reFuest along 'ith %ollo'ing do"uments to the ser(i"ing State Li%e .onal o%%i"e? Original )oli"y do"ument :o)y o% National Identity :ard Sur(i(al &ene%it dis"harge (ou"her duly (eri%ied +y your +ank i(* I% the signature o% )ersons has "hanged o(er the years# then are need to send three s)e"imen signatures o% old and ne' styles Immediately on re"ei)t o% a+o(e do"uments# state li%e 'ill )ro"ess the "ase %or )ayment o% amount due# i% any# against sur(i(al +ene%it "laim under a+o(e )oli"y* i* ii* iii*

I(L)!& C- #.:
I% State Li%e insuran"e )oli"y "ontains an A""idental 3eath 4 Indemnity &ene%it @AI&A su))lementary "o(er# and the insured ha(e sustained an inMury as s)e"i%ied in the "ontra"t# he "an a))ly to state li%e %or an inMury "laim 'ithin 20 days o% sustaining the a""ident* -or lodging inMury "laim# there is need to send a 'ritten intimation o% the a""ident mentioning therein the date o% a""ident to ser(i"ing State Li%e .onal o%%i"e* A%ter re"ei)t o% intimation %rom insured# the "ase 'ill +e %urther looked into and .onal o%%i"e 'ill "onta"t a""ordingly*

P!%*+0)!+ '%! L% ( I($)! (*+ P%-#*&:

/ #($"

State Li%e insuran"e )oli"y )ro(ides a (alua+le %a"ility o% loan to meet immediate %inan"ial e1igen"ies* Poli"yholder "an a(ail a loan u) to 90P o% net surrender (alue o% )oli"y* On )oli"y loans# state li%e "harge marku) X o% 10P )er annum
72

INTERNSHIP REPORT

"om)ounded semiannually* I% )oli"yholder is interested to a(ail loan under his )oli"y# he "an a))ly %or loan*

P!%*+0)!+ '%! V%-)("++! P%-#*& S)!!+(0+!

I% )oli"y holder 'ants to surrender his )oli"y he in%orms to the state li%e a+out its de"ision and %ills a %orm o% surrender o% )oli"y a%ter that his reFuest 'ill +e entertained and surrender amount 'ill +e trans%erred to )oli"yholder*

PROCEDURE OF DEATH CLAIMS IN !ROUP LIFE INSURANCE)

P!%*+0)!+ "% -%0/+ D+ "1 C- #.
P!%*+0)!+ / !+G)#!+.+(" '%! "1+ $+""-+.+(" %' 0+ "1 *- #.$ 3eath intimation# on death o% any go(ernment em)loyee# the de)artment R em)loyer sends the 'ritten death intimation to the In"harge :laims "on"erned !4P .one along 'ith the death "erti%i"ate* On re"ei(ing the death intimation# the de)artment R em)loyer 'ould sent the "laim %orms Q:E 4 Q 3E +y the "laim de)artment o% the !rou) 4 Pension Kone* The 3e)artment R em)loyer is reFuired to %ill in the "laim %orms Q:E 4 Q3E# )ro)erly sign and stam) them and send them +a"k to the "on"erned !4P .one# along 'ith the %ollo'ing reFuirements* 1* 3eath "erti%i"ate# issued +y Lo"al $uni"i)al +ody# :antonment +odies# <nion :oun"ils# Ser(i"es hos)ital# !o(ernment hos)itals# Semi !o(ernment hos)itals# Rail'ay hos)itals and Trust hos)itals @any one o% the a+o(eA* In "ase o% tri+al areas# the death "erti%i"ate issued +y )oliti"al agents# :ommissioner# Assistant :ommissioner# $agistrate :lassGI are also a""e)ta+le* 2* NI: o% the de"eased and the "laimants @attested )hoto"o)iesA*

7,

INTERNSHIP REPORT

,* Pension +ook in original %or )ost retirement death @the same 'ould +e returned +a"k a%ter (eri%i"ationA* 2* Attestation? All the )hoto"o)ies must +e attested +y the "on"erned !a.ette o%%i"er* NOTE: The )ro(ision o% all a+o(e reFuirements 'ould ensure the Fui"k settlement o% the "laims* 3e%i"ien"y o% any one o% the a+o(e 'ould result in the delay in the "laim settlement*

C%..+!*# - G!%),$:
P!%*+0)!+ / R+G)#!+.+(" '%! "1+ $+""-+.+(" %' D+ "1/D#$ 2#-#"& C- #.$:
1* 3eath intimation? The )oli"yholderRem)loyer is reFuired to send the 'ritten death intimation# to the In "harge :laims o% "on"erned !rou) 4 Pension .one* 2* On re"ei)t o% intimation# a%ter ne"essary "he"king# the ne"essary "laim %orms 'ould +e sent to the )oli"yholderRem)loyer +y the :laims de)artment o% the !rou) 4 Pension .one* ,* The )oli"y holderRem)loyer is reFuired to %ill in the "laim %orms# )ro)erly sign and stam) them and send them +a"k to the !4P .one along 'ith the %ollo'ing reFuirements*

F%! D+ "1 C- #.$:

16 3eath "erti%i"ate# issued +y the lo"al +odies# "antonment +oard# ser(i"es hos)itals# go(ernment hos)itals# semi go(ernment hos)itals and rail'ay hos)ital* @Any one o% a+o(eA 26 Last attending )hysi"ianEs statement* 36 Post $ortem re)ort and -IRR)oli"e in(estigation re)ort in "ase o% A""idental death +ene%it* A* For A+e proo,(

72

INTERNSHIP REPORT

S"hoolR"ollege "erti%i"ate sho'ing date o% +irth National Identity "ard ;alid )ass)ort 3is"harge "erti%i"ate @in res)e"t o% e1Gde%ense %or"es PersonnelA (* :erti%i"ate o% age +y the )oli"yholder organi.ation (i* &irth "erti%i"ate issued +y lo"al +odyR"antonment +oard @Any one o% the a+o(eA B6 F%! 0#$ 2#-#"& *- #.$: 1* Em)loyeeEs statement* 2* Em)loyerEs statement* Attending SurgeonEs statements* @:laim %orms A# &# and :# res)e"ti(elyA* ,* NGrays and medi"al in(estigation re)orts et"# i% any* 2* @All the )hoto "o)ies must +e attested +y the "on"erned !a.etted O%%i"erA* 5* The )ro(ision o% all a+o(e reFuirements 'ould ensure the Fui"k settlement o% the "laims* 6* 3e%i"ien"y o% any one o% the a+o(e 'ould result in the delay in the "laim settlement*

i* ii* iii* i(*

NEW BUSINESS DEPARTMENT

M ( /+.+(" H#+! !*1& %' N+: B)$#(+$$ D+, !".+("M

75

INTERNSHIP REPORT

The +usiness o% SLI: is initiated through ne' +usiness de)artment @N&3A 'hen insuran"e sales re) sells )oli"y to any "lient then this de)artment handles all the do"ument )ro"edures 3r* Nisar Ahmed Shah is the in "harge o% ne' +usiness de)artment* In this de)artment as the name sho's# ne' "ontra"ts start +et'een )ro)oses and insuran"e "om)any* Pro)oser is a )erson 'ho a))lies %or the insuran"e )rote"tion* M #( ')(*"#%( %' "1+ NB #$ )(0+!:!#"#(/ The de)artment is res)onsi+le %or )ro"essing the ne' +usiness introdu"ed +y the sales %or"e right %rom re"ei(ing a )ro)osal on the "ounter to mailing the )oli"y do"ument to the )oli"y holder It has (arious se"tions to )er%orm the di%%erent task relating to the a""e)tan"e or reMe"tion o% risks %or li%e insuran"e# the )ro)osals are re"ei(ed and initially is "he"ked in all res)e"ts i*e* :om)letion o% all "olumns and then )ro"essed +y the under'riters de)ending u)on 'hether they ha(e +een
76

INTERNSHIP REPORT

P!%*+$$ %' 0+ -#(/ :#"1 (+: *)$"%.+!:

introdu"ed under the medi"al or non medi"al s"heme* The risk is assessed kee)ing in (ie' the %ollo'ing %a"tors )ersonal data # o""u)ation #)hysi"al and so"ial %eatures # health # %amily history o% the )ros)e"t # moral ha.ard # sour"e o% in"ome # nomination # relationshi) +et'een the nominee and the )ros)e"t * Pre(ious li%e insuran"e history o% the )ros)e"t i% any# %ield o%%i"erEs or sale re)resentati(e "on%idential re)ort in"luded in the )ro)osal %rom# -inan"ial under'riting i*e* Sour"e o% in"ome# its legality and )roo%# relationshi) +et'een the )ros)e"tEs in"ome and sum assure *in "ase o% %ield o%%i"ers or sale re)resentati(eEs re)orts ha(e more im)ortan"e* A%ter this assessment# the under'riting de"ision is made 'hi"h may +e a""e)tan"e o% a risk at ordinary rate or 'ith loading# "alling additional e(iden"es relating to health or %inan"ial status o% the )ros)e"t# )ost)oning %or a de%inite )eriod or straight a'ay de"lination* Premium rates# installments are the "he"ked and %irst )remium re"ei)ts are issued on re"ei(ing )ayments* In the last# )oli"y "ontra"t are issued under intimation to the %ield %or"e# and "on"erned de)artment like "ommission )ayment# agen"y administration# "om)uter di(ision and marketing* This in +rie% terms is the %un"tion on ne' +usiness de)artment* This is also a key %un"tion as the under'riters are res)onsi+le %or the %inan"ial health o% li%e institution* &y a""e)ting good risks they )romote )ro%ita+ility and gro'th# 'hi"h hel)s in meeting the %inan"ial o+ligations o% the li%e institutions to'ards the )oli"yholders# its em)loyees and go(ernment*

-irst o% all sale ra) moti(ate the "ustomer to take )oli"y* Then sale ra) %ills )ro)osal %orm %or that "ustomer* Then sale ra) takes Rs 500 as token money as under'riting %ee %or "ustomer* Then )ro)osal %orm "ome in ne' +usiness %or allotment o% )ro)osal num+er 'here )ro)osal num+er %or a )arti"ular "ustomer is allotted* Then )ro"ess o% under'riting is done* I% the "ustomer %ul%ills the reFuirements o% under'riting then %urther
77

INTERNSHIP REPORT

)ro"ess "ontinues other'ise reFuest is reMe"ted and under'riter suggests some other alternati(e* I% under'riter a""e)ts the )ro)osal then "al"ulation o% )remium is done* A%ter the "al"ulation o% )remium the )oli"y num+er is allotted and )oli"y +ond is issued to "ustomer*

S+*"#%($ %' N+: B)$#(+$$

1* 2* ,* 2* 5* Pro)osal se"tion <nder'riting se"tion :al"ulation se"tion Poli"y issue se"tion :om)uter se"tion

16P!%,%$ - S+*"#%(:
In )ro)osal se"tion )oli"y num+er is allotted to a ne' "ustomerEs )ro)osal %or %uture re%eren"e* All the 'ork )er%ormed in )ro)osal se"tion is entered in a register "alled )ro)osal register* -irst o% all issue the )ro)osal num+er and then re"ord the )ro)osal num+er# serial no# age# ta+le 4 term and then SR# AR# PR no and the name o% o'ner o% )oli"y %orm* These )ro)osal %orms are atta"hing 'ith +alan"e statements 'ith the issue no +ut those )oli"y %orm that ha(e no +alan"e statements take a side* Those 'ho ha(e +alan"e statements send it to the under'riting de)artment* There are some other %orms 'hi"h ha(e some o+Me"tions i% they are "lear than re"orded into the ledger to OL its mean ok*

U(0+!:!#"#(/ S+*"#%(:
<nder'riting is the )ro"ess through 'hi"h the under'riter assesses the risk asso"iated 'ith the insuran"e )ro)osal* <nder'riter (eri%ies the )ro)osal in%ormation )ro(ided in the )ro)osal %orm* I% he %eels that "lient should ha(e a medi"al "he"ku) than SLI: ha(e its o'n )anel o% do"tors to )ro(ide medi"al assistan"e*
79

INTERNSHIP REPORT

T-pes o, "n&er.ritin+
I* II* I6 Lay under'riting -inal authority L & )(0+!:!#"#(/:

A Munior under'riter 'ho "he"ks all the do"uments o% )oli"yholder# i% the do"uments are "orre"t# then he sends to %inal authority* II6 F#( )"1%!#"&:

A )erson 'ho "he"ks all the do"uments and de"ision o% lay under'riter makes %inal de"ision* U(0+!:!#"#(/ , (+-: The under'riting s)e"ialist "he"k the "ase thoroughly and see his name# NI: no# age# 'eight# height# nominee# name o""u)ation and address* I% they think there is something 'rong then they must +e "ons"ious and "all medi"al re)ort or other tests o% medi"al* I% they seem that "ase are "orre"t they %ill the %orm o% )oli"y +rie% sheet o% +ottom line 'hi"h they enter the height# 'eight and also gi(e the rate a+out to see his o""u)ation and they "an also use some "ode 'hi"h they gi(e di%%erent o""u)ational )erson* -or e1am)le "ar)enter "ode is 161*i% they %orget the "ode o% any o""u)ational )erson then they gi(e "ode o% 079*they think that 079 "odes# is +est solution* They sign the %orm and send to do"tors* D%*"%!J$ , (+-: The do"tor )anel head is kno'n as CMA 7CHIEF MEDICAL ADVISOR8 i*e* 3r* Naeem and also authori.ed do"tors 3r Saira 'ho has re"ommended the "ase +y under'riters %or medi"al re)orts et"* They must "he"k the nominee name# NI: no and his o""u)ational stress* I% the )oli"y holder has some disease )ro+lem then they "an mark them his "ase +y N*3 and they "an also gi(e a de"laration "erti%i"ate that i% he die during t'o
78

INTERNSHIP REPORT

years then the "om)any "annot )ay the "laim* The ma1imum limit o% N*3 "ase is 1D9 <<9<<<6 I% the )oli"yholder has go(ernment em)loyee then they "an gi(e the "ategories no 2 su"h as s"hool tea"her# do"tor et"* +ut i% they are "ar)enter# +ri"ks holder then they "an gi(e 5#6* There are +asi"ally three "ategories o% %emale* !o(ernment Mo+ and edu"ation Pri(ate illiterate Household &ut the male ha(e only one "ategory* I% the "ase has 1<9 <<9<<< then only one )erson sign +ut i% they are R$ 2<9 <<9<<< then they are R$ 3<9 <<9<<< then three )ersons "an "he"k* I% the )oli"yholder are smoker then they 'ill allo' only smoking daily 6 u) to 10*+ut i% they smoke 2< ), "% 2D then they are not "a)a+le to grant the )oli"y* The do"tors also de"ide 4 "he"k the age and "he"k the under'riting reFuirement ta+le e*g* i% the )erson age is 19G20 then they ha(e Rs 200#000 sum insured and they are nonG medi"al "ase*

26C -*)- "#%( $+*"#%(:

In "al"ulation se"tion "al"ulation o% )remium is done* Premium "an +e )ay in the %ollo'ing 'ayC >early Hal% yearly Ouarterly $onthly Rate o% interest and )remium rate is "al"ulated* Rate o% )remium de)ends u)on the age o% a )erson* I% the age is higher# then more rates 'ill +e "harged and i% age is lo' then lo' rate 'ill +e "harged* Rate also de)ends u)on the maturity )eriod*

90

INTERNSHIP REPORT

3i%%erent ta+les are used %or "al"ulating the rate o% )remium* $ost "ommonly used ta+le isC Ta+le 0, Ta+le05 Ta+le07 Ta+le 12 Ta+le 19 Ta+le 18

36P%-#*& #$$)+ $+*"#%(:

A%ter "om)leting the "al"ulation# the num+er is allotted to )oli"y holder *in )oli"y issue se"tionC all the re"ords are maintained in the )oli"y register*

?6C%.,)"+! $+*"#%(
Ne' +usiness de)artment has its o'n "om)uter se"tion# 'hi"h "ontains all the re"ords o% )oli"y holders* The de)artment is "om)uteri.ed in 1885*'indo' AIN (ersion , is used %or sorting the data* A "ode num+er is allo'ed to ea"h )oli"yholder* There are t'o )rints used %or o%%i"e 'ork* One is ra' )rint 7 the other is o%%i"e "o)y* The ra' )rint is used to "he"k the re"ord o% ea"h )oli"yholder* And the o%%i"e "o)y is used %or their re"ord* Smart term )rogram I&$ are used and they start login +y "ollege and then enter the ne' +usiness de)artment and o)en the 'hole ta+le o% )ro)osal %orm no and his +io data* %irst they "an enter ta+le a and then )ro)osal no and series that means )ro)osal %orms series and then his name are also enter and )oli"y no and then also enter the ta+le and term and then issuing date o% under'riting and date o% re"ei)t and 'rite his date o% +irth #age# mode i*e* >early Ouarterly $onthly Similarly they "an allot the no and then 'rite )ostal "ode i*e*079 and then his address *

91

INTERNSHIP REPORT

So 'rite the sum assured and enter the AI& (alue and the rate 'hi"h they "an allot* They :an enter the series (ise -I& NO and they gi(e the "ommand o% )rint 'ith the re"i)ient )rinter no 0,

AGENCY DEPARTMENT
M ( /+.+(" H#+! !*1& %' A/+(*& D+, !".+(":

State li%e is one o% those %e' organi.ations 'hose )rodu"t is not o(er the "ounter +ut it has to +e introdu"ed to the e1)e"ted +uyer through a huge marketing* The marketing %or"e# usually kno'n as %ield 'orkers# is regulated through an im)ortant de)artment 'hi"h in
92

INTERNSHIP REPORT

insuran"e industry is "alled agen"y administration de)artment The agen"y administration results# trained# )romote and )ro(ide ser(i"es to its %ield 'orkers so as to ensure them skilled )ro%ession# sound "areer# handsome in"ome and many %ringe +ene%its to ease their li%e* Ser(i"e )ro(ided +y the SLI: is tangi+le and there%ore are not a"Fuired at the "ounter +y the )eo)le# 'ho need it so it must +e sold them through )ersuasi(e method* -ield %or"e o% SLI: is tangi+le and there%ore is )ersuasi(e method* -ield %or"e o% SLI: )lays an e%%e"ti(e role in selling o% intangi+le )rodu"ts* In order to maintain re"ord o% the %ield %or"e agen"y de)artment 'as esta+lished* The head o% agen"y de)artment is $r* Shakeel ansari and e1e"uti(e o%%i"er $r* Asi% mir *the main %un"tion o% this de)artment in"ludes re"ruitment# )romotion# and termination o% %ield %or"e# allied and medi"al %a"ility %or %ield %or"e* This de)artment is also res)onsi+le %or issuan"e and rene'al o% li"enses to the %ield %or"e* State li%e has t'o le(els o% re"ruitment*

R+*!)#".+(":
The sale re)resentati(e is a))ointed +y SORS$ *The reFuirement and "onditions %or the a))ointment o% SR are as %ollo's* State li%e has t'o le(el o% re"ruitment*

R+/)- ! $ -+$ !+,!+$+(" "#3+$:

$inimum Fuali%i"ation reFuired is matri" Age at entry must not +e less than 19 years* Annual Fuota %or SR is Rs 10000 A))li"ation %or the issuan"e o% li"ense is ne"essary and is rene'ed a%ter ea"h , years* An a))li"ation %orm# along 'ith li"ense %ee Rs 50# attested )hoto"o)ies o% do"uments and nomination %orm is su+mitted to the agen"y de)artment *a "ode num+er is allotted at the su+mission o% a))li"ation to SR and he "an start 'orking as agent o% the SLI: o% Pakistan* $ust +e graduate reFuired
9,

G! 0) "+ $ -+$ !+,!+$+(" "#3+$:

INTERNSHIP REPORT

Less than ,0 years o% age ha(ing N*I*:* They are )aid sti)end* &oth a+o(e ty)e o% sale re)resentati(e are registered under insuran"e ordinan"e 2000 and insuran"e rules 2002*they are reFuired to get their registration rene'ed a%ter e(ery t'o years and su+mit a statement and de"laration annually as reFuired under a+o(e re%erred ordinan"e 4 rules *Their )rimary Mo+ is to sell li%e insuran"e )oli"ies*

P!%.%"#%(:
SR is )romoted# u)on %ul%illment o% "ertain terms and "onditions and on a"hie(ement o% +usiness targets# to SO* Similarly SO is )romoted to S$ and S$ to A$*

P!#F+ H A: !0$:

The %ield 'orkers are moti(ated +y gi(ing those )ri.es and a'ards on their monthly and yearly a"hie(ements* The height o% it is an annual "on(ention 'hi"h held at a )rominent )la"e o% )restige in the "ountry in 'hi"h all the Fualities around the "ountry share their kno'ledge and e1)erien"e# enMoy re"reational a"ti(ities and a+o(e all get +ene%it o% "om)any o% su""ess%ul seniors* They dis)erse %illed 'ith thrill and enthusiasm to go at more height to "at"h ne' stars*

O"1+! B+(+'#"$:
In order to run their o%%i"es "om)any maintained %urnishes o%%i"es are )ro(ided and those 'ho 'ish to o)en their o%%i"ers# as they desire are )aid "ash "om)ensation in lieu o% an o%%i"e to maintain their o'n o%%i"es* State li%e gi(e their %ield 'orkers and %amilies a due "are %or 'hi"h they are "o(ered %or indoor and outdoor medi"al treatment# "onsultation %rom senior do"tors and %or "lini"al in(estigation %rom re)uted )athologi"al la+s In "ase o% "hroni" diseases additional medi"al %a"ilities are gi(en* Their li(es are also "o(ered %or hea(y sum o% insuran"e against a""ident and death through (ariety o% !rou) Insuran"e Poli"ies* The :om)any )ays the )remiums and %or
92

INTERNSHIP REPORT

additional "o(erage su+sidi.ed rate o% )remium is "harged 'hi"h is dedu"ted %rom their "ommission*

T+!.#( "#%(

Any agent o% SLI:# 'ho +eha(e negati(ely# (iolates the rules and regulation or indulge %raud or malG)ra"ti"e# "an +e terminated +y the .onal head* Any agent 'ho %ails to meet the annual Fuota o% ->P is demoted to immediate lo'er rank o% the %ield %or"e*

(0 D+.%"#%(:

L#*+($+:
The li"ense to 'ork as agent %or SLI: is issued +y the "ontroller o% insuran"e Lara"hi* At s)e"i%i" inter(al o% time# a list o% the %ield %or"e is trans%erred to "ontroller o% insuran"e Lara"hi %or ne' and rene'al o% li"ense* The list o% li"ense %ee is gi(en +elo'? SR @ne' li"ense %or IST yearA Y Rs 50 SR @rene'al o% li"enseA Y Rs 150 SR @rene'al 'ith late %eeA Y Rs 250 SORS$ @rene'al o% li"enseA Y Rs 250 SORS$ @rene'al 'ith late %eeA Y Rs 200 The agen"y de)artment is also in(ol(ed in the %ollo'ing matters o% %ield )ersons# 1* $edi"al o% %ield )ersons 2* Rent :ontest arrangement @gi(ing the )ri.es to those 'ho make good +usinessA

FINANCIAL AND ACCOUNT DEPARTMENT

This de)artment maintains the re"ord o% all the "ash transa"tions* It )re)ares )ayroll %or the regular em)loyees and dis+urses the amount* It also takes "are o% the %ringe
95

INTERNSHIP REPORT

+ene%it su"h as medi"al %a"ilities )ro(ided to the o%%i"e sta%%* :ommission that is )aid to sales re)resentati(es# sales o%%i"ers and sales managers are also "al"ulated and )aid through this de)artment* To kee) the "or)oration on %inan"ial tra"k +alan"e sheets and in"ome statement also )re)ared on annually# monthly and 'eekly +asis* The )rin"i)al o%%i"e sends annual +udget to the de)artment and de)artment is res)onsi+le %or )ro)er utili.ation o% "ash dis+ursements* The de)artment also send +udget %ore"ast %or ne' +udget )ro)osal* Payment on +ehal% o% the other .ones and )re)aration o% +ank re"on"iliation statements are also %un"tion o% this de)artment* This de)artment "onsists o% %ollo'ing se"tion? :ommission Salary 3is+ursement Loan :ash "ounter

COMMISSION:
:ommission de)artment %a"ilitates the %ield %or"e +y o%%ering "ommission and due +onuses *the de)artment is dire"ted to "al"ulate and analy.e the earning o% last year# )ro(iding ad(an"es and loans to %ield %or"e and o%%er other %ringe +ene%its to moti(ates the %ield %or"e* :ommission is only gi(e to "ommission +ased )ersons 'ho are S$# SO AN3 SR* :ommission is "al"ulated %rom the )remium a%ter su+tra"ting the ta1* Then "he"k that S$ not takes any ad(an"ed loan and any "laim %rom .onal# regional*

S"!)*")!+ %' *%..#$$#%(:

-irst year )remium SRGGGGGGGG ,5P SOGGGGGGG 15P S$GGGGGG 9P

O<ARTER &ON<S 2*5P 2*5P 2P

96

INTERNSHIP REPORT

P+!$#$"+(*& 2%()$:
It gi(es on the )ersisten"y o% the last year +usiness* On 90P +usiness the "ommission is 1*1 )er"ent* On 91# it is 1*2 and on'ard* Se"ond year )remium SRGGGGGGGG 10P SOGGGGGGG 2P S$GGGGGG 1P THIR3 >EAR PRE$I<$ SRGGGGGG 5P SOGGGGG 1P S$GGGGG 0*5P

SALARY H LOAN:
Em)loyees are lying in the %our "ategories Related to their a))ointment and their )romotion* A""ording to their "ategory the %unds# +ene%its and salary are gi(es to em)loyees* In this se"tion loan a))li"ation and salary %orm are %illed here related their "ategory and then a""ording to that make the (ou"her sli) and )assed +y the o%%i"er*

CASH COUNTER:
In "ash "ounter )remium and loan amount is su+mitted *There is t'o a""ounts %or )oli"y holders* -irst year a""ounte*g* 117, AR: Rene'al AR: 1098 AR: is a""ount no o% rene'al a""ount* :olle"tion is done in t'o 'ays? :ash :heFue

97

INTERNSHIP REPORT

P !": @

PERFORMANCE HIGHLIGHTS
99

INTERNSHIP REPORT

PRIMIUM I(*%.+= I(0#3#0) - L#'+:

YEAR 2005 2006 2007 2009 2008 2010

7RS6 IN MILLION8 11#260*0 1,#112*0 15#807*1 18#152*1 22#95,*2 ,1#82,*0

98

INTERNSHIP REPORT

P!+.#). I(*%.+=G!%), L#'+

80

INTERNSHIP REPORT

YEAR 2005 2006 2007 2009 2008 2010

7RS6 IN MILLION8 2#560*1 2#978*6 2#908*6 ,#52,*2 ,#51,*7 ,#705*,

81

INTERNSHIP REPORT

I(3+$".+(" I(*%.+

Y+ ! 2005 2006 2007 2009 2008 2010

7R$6 I( M#--#%($8 1,#105*5 12#82,*9 17#505*2 18#1,2*6 21#522*7 272,2*1

82

INTERNSHIP REPORT

8,

INTERNSHIP REPORT

T%" - P!+.#). I(*%.+:

T%" - P!+.#). I(*%.+: YEA 7R$6 I( R M#--#%($8 2006 2007 2009 2008 2010 ,0815*2 ,6221*8 21928*8 28811*6 6,072*8

82

INTERNSHIP REPORT

I(3+$".+(" P%!"'%-#%:
I(3+$".+(" P%!"'%-#% Y+ ! 2005 2006 2007 2009 2008 2010 7R$6 I( M#--#%($8 122#89,*7 122#159*9 161#865*9 192#972*2 205#902*2 2,5#8,2*5

85

INTERNSHIP REPORT

L#'+ F)(0:
L#'+ F)(0 Y+ ! 2005 2006 2007 2009 2008 2010 7R$6 I( M#--#%($8 122#775*2 1,7#859*9 156#7,7*, 177#258*1 188#225*, 2,0#222*0

86

INTERNSHIP REPORT

87

INTERNSHIP REPORT

T%" - A$$+"$:
T%" - A$$+"$ Y+ ! 2005 2006 2007 2009 2008 2010 7R$6 I( M#--#%($8 1,2#017*1 128#229*6 168#921*2 18,#117*6 217#695*2 251#279*1

89

INTERNSHIP REPORT

88

State Li%e Insuran"e :or)oration o% Pakistan in(ests its INTERNSHIP REPORT %unds in a""ordan"e 'ith the )ro(isions "ontained in Insuran"e Ordinan"e 2000# Insuran"e Rules 2002 and SRO@,08A L o% 1870 as amended to date +y the !o(ernment o% Pakistan* Govt. Securities: These in"lude instruments issued +y !o(ernment o% Pakistan su"h as Treasury +ills# Pakistan In(estment &onds et"* Approved Govt. Securities: These in"lude instruments as =a)da &onds# Pro(in"ial Se"uritiesRT-:s et" Loans: these in"lude loans in the %orm o% Term %inan"e "erti%i"ates et"* Investment Portfolio 2008
As at 31-12-2009 (Rs. in millions) Particulars Govt. Securities TFCs !pproved Govt. Securities "#uities $an% &eposits 'nvestment properties (olicy )oans Portfolio *+,,-./ +,,0. 1+,+,2 *1,+., 1,,3. *-,2+-

12,,.2+

P !" :8

100