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This unpretentious attempt is dedicated to


Whose appropriate and apposite principle guided our lives and

Whose prays enabled us to reach us to this stage and to our

Respected Teachers

Whose appreciation increases our courage and confidence?

State Life Insurance


Purpose of Internshiphip.

The purpose of the internship is to provide the students an opportunity to test and apply
principles graduate study.

Complete the Requirement.

The main purpose of the business internship program is to full fill the requirements for
M.B.A degree.

Getting Experience of Practical Work..

The internship provides students with a variant of learning experience outsides the class
room. The purpose of internship is to get experience in any organization. The internship
program enhances the practical working skills in students which would lucrative in coming

Other Objective of Internship Program.

 To seek knowledge
 To know the operation of insurance organization
 Knowing the problem of insurance organization
 How to deal with customers
 Help us to discuss the main Issue with the Executives and others.

State Life Insurance

Methods of Study

Lecture of Understanding.

During the internship lecture by instructor help us to get knowledge about state Life
Insurance Corporation. Everyday starts witch lecture after that we visit the departments of
State Life. The lecture helps us to understanding all the activates of the organization.

Visit of Functional Department.

The visits make us aware of the types of work in different departments and how an
organization depends upon them. The visits of functional departments are very essential for
the completion of internship task.


Presentations deliver by our group in different topics related to State Life Insurance
Corporation which helps us to study individually to the organization.


Various problems, which are faced during the internship program or training and
consequently in the preparation of thesis of work are mentioned below.

Shortage of time.

Due to short span of time it could not work in all departments of State Life.

Lack of Information.

In short period of time it is difficult to gather all necessary information such as a large

Daily Workload.

Because of rush of customers all the staff members where busy in their daily work, so they
cannot give proper time to us.

State Life Insurance

Brief History
The Life Insurance Business in Pakistan was nationalized during March 1972. Initially Life
Insurance business of 32 Insurance Companies was merged and placed under three Bema
Units named “A”, “B” and “C” Bema Units. However, later these Bema Units were merged
and effective November 1, 1972 the Management of the Life Insurance Business was
consolidated and entrusted to the State Life Insurance Corporation of Pakistan………………

State Life Insurance Corporation of Pakistan is headed by a Chairman and assisted by the
Executive Directors appointed by Federal Government. Up to July 2000 the Corporation was
run by Board of Directors constituted under Life Insurance (Nationalization) Order 1972. In
July 2000, under Insurance Ordinance 2000, the Federal Government reconstituted the Board
of Directors of State Life which runs the affair of this Corporation……………….

The basic structure of the Corporation consists of Four Regional Offices, Twenty-Six Zonal
Offices, a few Sub-Zonal Offices, 111 Sector Offices, and a network of 461 Area Offices
across the country for Individual Life Insurance; Four Zonal Offices and 6 Sector Offices with
20 Sector Heads for Group & Pension are involved in the Marketing of Life Insurance Plans
policies and products offered by State Life and a Principal Office. The Zonal Offices deal
exclusively with Sales and Marketing. Underwriting of Life Insurance Policies and the
Policyholder’s Services. Regional Offices, each headed by a Regional Chief, supervise
business activities of the Zones functioning under them. The Principal Office, based at
Karachi, is responsible for corporate activities such as investment, real estate, actuarial,
overseas operations, etc.

State Life Today

Today State Life Insurance Corporation is the leading life Insurance corporation of Pakistan.
Today’s it has twenty six (26) flourishing zones for individual life Business and four (4)
booming zones for group life business, almost in all the key cities of Pakistan. But today, it
is operating globally, mostly in the GULF countries (comprising UAE, kingdom of Saudi
Arabia, and Kuwait) through their principles zonal office located in Dubai (UAE).

State Life Insurance

Objective Mission & Achievement

 To run life insurance business on sound line.

 To provide more efficient service to the policyholders.
 To maximum the return to the policyholders by economizing on expenses and
increasing the yield on investment.
 To make life insurance a more effective means of mobilizing national savings.
 To widen the area of operation of life insurance and making it available to as large a
section of the population as possible, extending it from the comparatively more
affluent sections of society to the common man in towns and villages.
 To use the policyholders’ fund in he wider interest of the community.


To remain the leading insurer in the country by extending the benefits if insurance to
all sections of society and meeting our commitments to our policy holders and the

Major Achievement.
The major function of the State Life Insurance Corporation of Pakistan is to carry out
Life Insurance Business; however, it is also involved in the other related business
activities such as investment of policyholders’ fund in Government securities, Stock
market, Real Estates. The major achievements of State Life are as under:

i. On the commencement of the operations, the Corporation took a very important step
by effecting reduction up to 33% in the premiums on the past and potential Life
Policies for the benefit of the Policyholders.
ii. State Life is profitable organization and it paid Rs.2.242 billion as dividend to the
Government of Pakistan since its inception in 1972.
iii. State Life has played very vital role in the economy by providing employment to the
people of the country as permanent employees and as part of its marketing force and
by investing the huge funds in different sectors of the economy. The Investment
Portfolio of State Life as at 31.12.2007 stands at Rs.161.966 billions.
iv. Investment portfolio also includes investment in Real Estate which stands at a book
value of Rs.2.331 billion as at 31.12.2007 whereas it fair value is around Rs.22.923
billion in the same period.
v. The Paid up Capital increased from Rs.10 million in 1972 to Rs.900 million in 2007.
vi. The Premium income increased from Rs.0.317 billion in 1972 to 18.717 billion in
2007. Similarly Investment income including rental income increased from Rs.0.81
billion in 1972 to 17.505 billion in 2007.
vii. Total statutory fund of State Life stands at Rs.156.7373 billion in 2007 as against
Rs.1.494 billion in 1972.

State Life Insurance

State Life is smoothly striving towards its objective of making life insurance available to
large section of the society by extending it to common man. As at December, 2007 the total
number of policies enforce under individual life were 2.349 million and number of lives
covered under group life insurance were 4.062 million.

Insurance, a legal contract that protects people from the financial costs that result from loss
of life, loss of health, lawsuits, or property damage. Insurance provides a mean for
individual and societies to cope with some of the risks faced in everyday life people
purchase contract insurance, called policies, from variety of organization. In simple words
insurance is a contract, between tow parties that on payment of a sum money by one party to
another on the understanding that in specified circumstances the second party will make
well any loss suffered by the first party. The party which is prepared to indemnify the losses
arising out of risks insured (the insurance company) is called insurer and the person property
which is subject to risks is called insured.

Reason For Insurance

In life, losses are sometimes unavoidable. People may become ill and lose income or
savings to pay the medical bill. People’s home or other property may suffer damage or theft.
Peoples also may accidentally cause injury or damage of the property of others.

Benefits of Insurance.

Insurance it self has become a significant economic force in most industrialized countries
Employees buys insurance to cover their employees against-related injuries and health
problems. Businesses also insure their property, including technology used in production,
against damage and theft. Because it makes business operations safer, insurance encourage
businesses to make economic transactions, which benefits the economies of countries in
addition, millions of people work for Insurance companies and related businesses.

Life Insurance.

Assumption by insuring organization of the risk of death of a policyholder. Unlike loss in

insurance on property. Loss on in life insurance is certain is certain to occur and is total.
Element of uncertainly is when death will occur. life insurance provides compensations to
specified individuals or groups (such as family members or charities) when the policy
holder had lived (dies).
Life insurance allows people to use some of their earnings to assure that money will be
available in the case of death. Individuals can purchase Life Insurance coverage from
insurance companies.

State Life Insurance

Insurance Police & Coverage.
A different type of Insurance policies provides different amounts of coverage. They also
provide coverage in different ways. Some policies, such as life Insurance determine an
amount of such a policy, called its face value, when ever a covered loss occurs.

A. Policy.

Policy terms commonly range from six months to many years. The end of that term, the
seller and buyer may agree to renew the contract if they wish. Only permanent life insurance
does not specify a finite term.

B. Policy Limit.
Insurance policies also specify an amount at which coverage ends, known as the policy
limit. Most types of Insurance specify the limit as a dollar amount written in the contract.

C. Deductible.

The deductible is the almost of loss a policyholder agrees to pay without protection from an
insurance company. Insurance policies generally include an initial amount of expenses that
an insured person must pay when a loss occurs. This expense is known as the policy’s

D. Premium.

An Insurance company states a policy’s premium by multiplying a rate for each unit of
Insurance coverage by the total amount of coverage being purchased.

Claim Benefits & Dividend.

Insured individuals who have losses and want to receive payments must notify their
insurance company through a process called a claim.

Buying Insurance.

People face many choices when buying insurance policies. They commonly choose an
insurance provider based on several criteria. Some of the most important of these include (1)
the financial stability of the insurance company, (2) the price polices, and (3) details of
coverage and service.

State Life Insurance

Organization Structure of State Life.

The organizational structure of State Life Insurance Corporation of Pakistan is relatively

formal and hierarchal. CHAIRMAN seats top position in the corporation.

Training & Employee Development.

Stat Life is providing to fiend and staff through. IN-House course and training through
outside training institute.

In-House field course given by State Life include.

1. three months foundation courses for agents, which is completed after attending 4 phases.

a. 15 days basic course.

b. 15 days on the job training (O.J.T) through Marketing

c. 30 days Agent Developing program (A.D.P)

2. M.O.S.C (Management Orientation Study Courses)

3. M.M.S (Marketing management Series)

Organization Cart

Department function


This department is responsible for checking, verifying, and rectifying any mistakes in
financial statements.

State Life Insurance


 All payments route from budget and accounts check, rectify and verified.
 This department submits monthly report to principal office.
 This department also gives advice for better internal control.


Marketing and agency administration department does two different works, marketing and
agency administration.
Marketing side of the department arrange events between field people to motivation and
encourage about the State Life Insurance Corporation.


 Arrange meeting, seminars and functions for team channel.

 Renewal of registration of sales representatives, sale officers, sales managers each
 Allot convince loan to the sales representatives, sales officers, sales managers
according to their performance.
 Emergency loan for sales representatives, officers, managers on the basis of renewal
commission earning
 Eid bonus and advances are given to the sales representatives, officers, manager on
the basis of renewal commission earning.


The theme of new business department is assessment of risk.

 The new application submitted in new business department for purchasing of life
 The important task of this department is to classify risk.
 Give life insurance through proposal policyholder or customer.
 Selection of proposal if risk is decided the department accepts the proposal.
 Decision-marketing is the important tasks of department after classify policy they
final decision.
Provides service to policyholders. Being a line department engaged in:

State Life Insurance
 Provide necessary information and help to the policyholders.
 Any change in existing policy.
 Claims are investigated.
 Documentation and investigation of claims.



 Responsible for constructions for State Life building.

 Repairing and maintenance of building.
 This department rent out remaining part of State Life Building which is out useful
for State Life.


Field manpower development is primarily responsible to conduct training and development

for field and official personal, it was called HDR (Human Resource Development).

 Effective Listening
 Communication
 Moral and Motivation
 Leadership
 Problem solving and decision making
 Skills in selling
 PHS cours


This department is link with staff officer and field force. This department works as an
administrative department of a zone.


 Promotion, salary and increment.

 Transfer and posting.

State Life Insurance

 Attendance sheet are issued and requirements of ay department is also fulfill.
 Provides medical facilities to the staff.
 All the loans taken by staff deal by the P&GS.
 Other general service includes furniture and fixture, telephone and utility bill.



 All the information stores in the database of the computer department.

 Departments are link with the computer via LAN.
 Any type of software and hardware problem is solved by the computer department.
 The data base in the computer department helps the entire departments to access
 Sending and receiving of e-mail and other internal activities.


State Life Insurance
Firstly. It was a good experience of internship in such a large insurance corporation. Entire
network is designed well enough to meet the needs of a challenging insurance corporation.
All the staff members we cooperative and provides us needed information. During the
internship we conclude that.
 The organization internal control.
 Due to the existence of internal control the chance of fraud is reduce.
 The department are connected with good information system.
 Much better than other government departments, because of its performance, low
chance of error, mistakes and frauds.
 Motivating the employee with different incentives.
 The arrangement of good training program.
 The existence of internal check.
 Centralization & Decentralization in decision making is present depend on the
 Well equipped organization.
 Providing good facilities to the employees.
 Work in different departments is delegated.
 Limited branches especially in rural areas.
 During the internship, there is no visit from any officer from head office.
 Lack of promotional activities.
 Online service is not available in the era of internet.
 There is long procedure of loan.
 The qualification of sales representatives is low.

 It is fact that approximately 65% people live in rural areas, where there is shortage
branches, the branches should be in rural areas.
 The promotional activities should be increased, in order to aware the common
people as well as capture the market. Insurance is the intangible product that sales on
the basis of personal selling but it would give good chance to product via
 The qualification of the sales representatives should a graduate, which will be
helpful to train them and also have more skills to convince quickly.
 State Life should choose their sales representatives from their target customers group
that will convince them by keep in mind their norms and traits.
 It is proposed that new scheme should be introduced in order to increase the selling
and diversity in Insurance policy. The diversity given the people enough choose
policy according to their willingness that would increase the selling as well. And it
would attract more customers.
 The short cut method should be introduced for the loans in order to save money and
State Life Insurance