State Life Insurance

106
We shall guide w ho striv e in our
cause to the pa th leading to us.
Sur el y ALLAH is with those w ho do
well.
(AL-ANKAB UT).
DEPARTMENT OF MANAGEMENT SCIENCES IUB

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DED ICA TI ON .
Dedica ted to m y belo ved countr y
and to the people w ho de vote d their
liv es f or the fr eedom of this countr y.

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PR EFACE.
T he c on tri bu tion o f t he ser vi ce to th e P akist ani
ec on omy is in cr easing a t a n e xtr a or din ar y r ate an d
th e pr ese nt fi na ncial se r vic es r evolu tion lo oks
ce r tai n to r ein for ce th at tr end consi der abl y. T he
co nt ext do es no t c laim to e xha ustiv e and the
bal an ce mus t ine vi ta bl y be o pe n to c ri ticism, b ut in
atte mp tin g to giv e a ge ne r al insig ht to th e cas ual
inq uir er, the ne eds o f t hos e seeki ng in-d ep th

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kn owled ge wi thi n par ticul ar a r eas m ust in evitabl y
be sacri fic ed.
T his r ep or t c over s a d et ail and anal ytical view
of th e S ta te L if e Ins ur anc e Cor por ati on. As t he titl e
th at this r epo r t is the essen ce o f t he har d w or ki ng
w hi ch I ha ve do ne dur ing my in ter nship te nu r e. T his
r epor t has b ee n wri tt en in t he hop e th at it will hel p
any bo dy, w ho r ead it ca r efull y t o o bt ain a r eal
un de r sta ndin g o f th e b asic str uct ur es, f un cti ons an d
te chniq ues o f t he di f fer en t de par tme nts o f S ta te
Lif e I nsur an ce Cor po r ation. T he rep or t is lo ng an d
wor dy.
I ho pe that the r epor t is r ela tiv el y f r ee of
er r or s an d will a ppr ecia te i f er r or s ar e b r oug ht to
atte nt ion.
UB AID -U R-R AHMAN .

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ACK NOWL ED GME NT.

I t ha nk all mig hty AL LAH, the be ne fic ent a nd
th e me r ci ful, who gave me a chan ce a nd e no ug h
po wer to wri te th is r ep or t. I w ant to expr ess my
g rati tud e an d th an ks to t he Zon al Hea d Mr. T ufail
Ahm ad C h. , Mr . Ish faq Ab basi D ep uty Ma na ge r PHS
an d spe ciall y M r. Im tiaz Ali for e na bli ng me t o
de vote p ar t t hei r pr eci ous tim e in th e pr ese nt atio n
of th is r ep or t. I f eel it my bo un de d du ty to
ac kn owle dge w ith d ee p g rati tud e an d in valuable
hel p e xte nd ed t o me by my r esp ect ed t ea cher s an d
fr ien ds. I am es pe ciall y g ratef ul to M r. Nazik
Hussian f or his enc ou r a geme nt a nd g uid an ce to
co mple te t his rep or t.
All t he addi tion al typin g w as ele gan tl y
ef fect ed by M r. Sh oib A kba r, who sho wed
co nside r able c r upt og r aphic al e xp er tise, not to
me ntio n imme nse pa ti enc e, in ma king som e sense
ou t my un tidy an d mu ch ann ot ated scrip ts.
To all th ese I ca n onl y say - T han k You. I ho pe
th at th e en d pr od uc t is n ot t ot all y u nw or thy o f th e
tim e and ef for ts th ey most g en er ousl y g ave.

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UB AID -UR -RA HM AN .
Table of Contents
1- Company and it's Int r oduction.
2- Mission and Objectiv es.
3- Or ganiza tional Str uctur e.
4- Divisions.
5- Depar tments.
6- File Mo vements.

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7- Customer and P r oducts.
8- Bonuses.
9- Supplementa r y Contr acts.
10- Basic Salar y and Gr ading.
11- Calcula tions.
12- Mar keting Channel.
13- Selling Pr ocess.
14- Mana gment St r eta gies.
15- SW OT Anal ys is.
16- Competitor s.
17- Ra tio Anal ysis.

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IN TODUCT OIN
Ins ur anc e.
Ins ur anc e Com pa nies.
Ins ur anc e Evalu ati on.
Lif e I nsur an ce in P akist an.
St ate Li fe in P akis ta n.
St ate Li fe in B ah aw alp ur.

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INTRODUCTION
Insurance
Insurance means that the Probable loss
occurring in future can be so shared that the
overall impacted of total loss to any
individual or section of the society is
mitigated.
Insurance can be of life for the compensation
in case of normal or accidental death or of
p r o p e r t y l i ke c a r, b u s s h i p , a i r p l a n e , e t c . i n
case of loss caused by fire, floods,
ear thquakes etc. insurance provides
compensation for the loss to a maximum
extent.
Histor y of Insurance:
The need of sharing losses caused
particularly by sea perils was left several
hundred-year ago. The merchant ships
remaining away for months with valuable
cargo carried with them the hope of
mar keting profits upon their safe retur n. T he

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p e r i l s o f t h e s e a h ow eve r, i n f l i c t i n g ex t e n s i ve
damage to the ships and the goods loaded on
them resulting in sometimes the total
disaster ultimately caused great concern to
those involved in the business. They
consequently jointed hand to the way out and
thus insurance was found to be the only
possible means to save individual from total
d i s a s t e r. T h i s i d e a o r i g i n a t e d f r o m C h i n a a n d
then developed by England and other
European countries. In the beginning
merchants used to sit together and for
certain define amounts, members used to sign
documents accepting their share of risk in
the ships or cargo carried. This initial
arrangement finally developed to highly
skilled and most scientific ways for
assessment of risk and underwriting and still
countries. The persons signing in acceptance
of their shares are called underwriters.
Life INSURANCE:
Life insurance is a contract whereby the
insure promises to p a y, in exchange of
certain premium, the sum insured, on the

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completion of a definite period, or on the
death of the insured person. There is a
difference between life insurance and other
for ms of insur ance like fir e insur ance, marine
insurance automobile insurance etc. covering
immediate financial and economic losses. In
life insurance, it is not easy to ascertain
with exactness the total impact likel y to
occur due to the death of the person. The
values placed on the life for possible
assessment of the financial repercussions
anticipated as a result of death,
never theless, are related to a great extant
and as possible workable solution for
maintaining source of income to a maximum
possible extant. In short when a man dies,
not only he but either the entire source of
income dies if he is only responsible for
producing the income for the family or
important part of source of income for the
f a m i l y, for the f a m i l y, in such case life
insurance takes over the liability and the
responsibility of meeting family needs.

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BE NE FIT S OF LIFE
IN SU RA NCE
 Finac ial Pr otect ion
 Nece ss ar y S aving
 Pr oper ty B ui ld ing
 Loan Faci li ty
 Educti on and Mar ria ge pl an
 Income T ax reba te
 Retir ement Fund

ST ATUE UNDER WHICH CREA TED:-
Li fe i ns ur ance (N ationa li za tion) or der ,

1972
(Pr es ident ial O r der X of 1972)
Da te of i ncor por ation : No vember 01, 1972
Le ga l s ta tus :
Autonomous copor ati on under the
contr ol of the mi ni st r y of
Com mer ce, Go vt . of Pak is tan.

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Pr incipa l Of fice : Sta te L if e Bu ild ing No .9

Dr. Ziaud din R oad
Kar ac hi, P aki stan.
MISSI ON OF STATE LIFE INSU RAN CE
COR PO RATI ON

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“ To ensure satisfaction of our valued policy
holder s in processing new business providing
after sales ser vices and optimizing returns of
life fund through quality culture and to
maintain our position at the leading life
insurer in Pakistan.”
OBJECTIVES OF SLIC
Following are the objectives:
 To run life insurance business in sound
lines,
 To provide more efficient ser vices to
p o l i c y h o l d e r,
 To m a x i m i z e t h e r e t u r n t o p o l i c y h o l d e r s b y
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 into from the
comparatively more efficient sections of
society to the common man in town and
villages,

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 To use th3e policyholders funds in the
w i d e r i n t e r e s t o f t h e c o m m u n i t y.
Histor y of Life insurance In Pakistan:

Before par tition, there were only three major
insurance companies named Christian Mutual,
Muslim and easter n Federal Union transacting
life insurance through their Head Office in
the ears, which ultimately for med Pakistan.
The need for having a composite insurance
company par ticularly for Muslims was felt by
some of the eminent Muslim personalities.
And Eastern Federal Union Insurance
Company was established in 1932 by the
struggle of those Muslim personalities. The
Muslim Insurance Company of Pakistan was
established in 1949.
Before the nationalization of companies in
1972, there was a big competition between
companies involved in life insurance business
in Pakistan as there were more than thirty
companies offering the insurance f a c i l i t y.
Upon nationalization of life insurance
business in 1972, State Life Insurance
Corporation was for med to take entire

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liabilities and assets as they related to life
insurance business. Starting with three units
A,B and C, it was soon merger into a single
cor poration. Now including Bahawalpur Zone,
there are thirty zone of Stat Life Insurance
Corporation are working in different par ts of
the countr y with Head Office at Karachi.
In Pak , life insurance business was
nationalized by Govt., Order in March 19,
1972 and in fact this was an impor tant step
toward economic development in the history
of Pak.
The nationalized process was completed in
two phases. In first phase (March 19, 1972),
the Govt. has taken over the administration of
32 companies. After this, these were handed
over to tr ustee and sub-tr ustee in accor dance
to life insurance nationalization order 1972.
In the second phase of nationalization
(November 1, 1972) a single corporation,
having three units, came into existence by
the name of State Life Insurance Cor poration
(SLIC) of Pakistan.

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These three units, constituted by merging of
one or more insurance companies, were
named as A,B and C units. For further
impr ovement of the life business in Pak,
these units (A,B & C) were merged together
and conver ted into zones.
SLIC has enjoyed a complete monopoly the
life business till 1990 when the Govt, had
decided to open it to local private sector
insurers. At present , besides SLIC, there are
four other life insurers operating in the
countr y including two foreign companies. The
state Life Insurance Cor poration is reinsured
by foreign insurance “Swiss RE”
(Switzerland).
REGIONAL & ZONAL OFFICES

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REGIONAL & ZONAL OFFICES
Regional Of fice Zonal Office
Lahore (Central)
Lahore (Wester n)
LAHORE Re gion Faisal Abad
Sargodha
Gurjranwala
Sialkot
Karachi
(Southern)
Karachi (Easter n)
KARACHI Region
Karachi (Central)
Hyderabad
Mir Pur Khas
Larkana
Quetta
Rawalpindi
Mir Pur
RA WA LP IN DI R e g i o n Islamabad
Peshawar
Abbottabad
Swat
Gujrat
Multan
Sahiwal
Multan Re gion R a h i m Ya r K h a n
Dear Ghazi Khan 18
Bahawal Pur
106
DEP ARMENTS:-
1- Agenc y Adminstr ation Depar tment.

2- Human R esour ces De volpm ent
Depar tment.
3- New Buisness Depar tment.
4- P olic y Holder Ser vice Depar tment.
5- Budget and Accuonts Depar tment.
6- P er sonal and Gener al Ser vices
Depar tment.
7- Mar keting Depar tment.
8- A udit Depar tment.
N E W B U S I N E S S D E PA R T M E N T
New Business (NB) is considered the soul
of Insurance companies. Profitability and

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sur vival of the business depends on the
NB.
FUNCTION OF NEW BUSINESS

In this department, as the name shows,
new contracts start between proposes
and Insurance C o m p a n y. Proposes is a
person who applies for the insurance
protection.
Main function of the NB is underwriting.
This department is responsible for
processing the new business introduced
by the sales force right from receiving a
proposal on the counter to mailing the
policy document to the p o l i c y h o l d e r. It
has various section to perfor m the
different task relating to the acceptance
or rejection of risks for life insurance,
the proposal are received and initially is
checked in all respects i.e. completion of
al columns and then processed by the
underwriters depending upon whether
they have been introduced under the
medical or non-medical scheme. The risk

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is assessed keeping in view the following
factors:
• Personal data, occupation,
physical and social features,
health, family histor y of the
prospect.
• Moral hazard, source of income,
nomination, relationship between
the nominee and the prospect.
• Previous life insurance histor y of
t h e p r o s p e c t i f a n y.
• Field officer’s or sale
representatives confidential
report included in the proposal
for m.
• Financial underwriting i.e. source
of i n co me , i ts l e g al i t y a n d p r oof,
relationship between the
prospect’s income and sum
assure.
In case of non-medical scheme, the
prospects own statement and filed officers or
sales representative’s reports have more
importance.

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After this assessment, the underwriting
decision is made which may be acceptance of
a risk at ordinar y rated or with loading,
calling additional evidences relating to
health or financial status of the prospecting
for a define periods or straight way
declination. Premium rates, installments are
then checked and first premium receipts are
issued to the field force, and concerned
department like commission payments,
agency administration, computer division and
mar keting. This is brief terms are the
function on the new business department.
This is also a key function as the
underwriters are responsible for the financial
health of the life institution. By accepting
god risks they promote profitability and
growth which help in meeting the financial
obligations of the life institution towards the
policyholders, its employees and the
gover nment.
WORKING OF NEW BUSINESS

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The precise working of NB depar tment is
as follows:
PROPOSAL NUMBER
In order to fulfill the recognition of the
i n s u r a n c e p o l i c y, N B d e p a r t m e n t a l l o c a t e s
a number t each insurance policy for
future references. NB depar tment verifies
whether the client is a new customer or a
p a s t c u s t o m e r.
UNDERWRITING
Underwriting is the process through
which the underwriter assesses the risk
associated with the Insurance Proposal.
Underwriter verifies the personal
infor mation provided in the Proposal for m
(See annex. No.1). If he feels that client
should have a medical checkup then SLIC
has its own penal of doctors to pr ovide
medical assistance.
P R E M I U M C A L C U L AT I O N
After underwriting the premium of Sum
Assured is calculated in Policy Brief
Sheet (see annex No.2) in according with
the rate book provided by the SLIC. The

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policy fee is charged of Rs. 100 or Rs 2.5
per thousands of sum assured whichever
is less. Further the rates of
supplementar y contracts are added in
premium.
POLICY ISSUE SECTION

After premium calculation the insurance
and revenue stamps are embossed on the
policy bond and the policy d documents is
sent to client (See annex No.3) one copy
of policy document is sent of (PHS)
department of record purpose.
UNDERWRITING GUIDELINES
• Tak in g of Au th en tic A ge P r oo f
• Verifi cati on on N omi nee Relati on with
Policyholder
• Analyzing of health and financial
s t a t u s o f P r o s p e r.
• Verifi cati on of stated infor mation on
Pr oposal For m.
• Requirement of Medical Repor ts and
Te s t s .
• Analyses of Medical Repor ts and
Te s t s .

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• Analysis of health histor y and family
background.
• Others requirements.
BUDGET & ACCOUNTS
D E PA R T M E N T
This department deals in:
• Cash Collection
• Cash Disbursement
• Salar y Preparation
• Budget Preparation
• I nte r- Zo n e Tr a ns a c ti on
• Agents Commission
• Imprest

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CAS H CO LL ECT IO N:
T here are two mo de of cash coll ec tio n i. e., by Cas h
and by Che que. T he col le ct io n is mad e for II Ren ewal
Prem iu m an d I .The pr em iu m is pa id by ca sh in SL IC ,
and it is als o pai d by che que . These cheq ues ar e sent
to th e de par tm ent . T hes e chequ es are attac hed al on g
wi th “ da il y coll ec tio n sh eet” (D CS ) wi th full detail i.e.
Ban ker’ s na me, loc atio n, da te of is su e etc. an d this
shee t is sen t to the SLI C’ s au thor iz ed bank (U BL ) in
Bah awalp ur for c oll ec tio n.
CASH DISBURSEMENT:
For cash disbursement, first the voucher is
prepared, singed and prepared by authorized
o f f i c e r, f o r t h e p e r s o n t o w h o m t h e p a y m e n t
is made. This voucher is audited in case of
having the amount in excess of Rs.10000.
these voucher are punched (feeding) in
c o m p u t e r. Voucher listings are maintained,
cheques are prepared, and these cheques are
sent to concerned p a r t y. Bank Statement is
prepared by daily the authorized bankers
regarding total coactions and payments of
cheques i.e. realization of cheques. These
banks Statements are punched into the

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c o m p u t e r. T h e d a t a i n f l o p p y r e g a r d i n g C a s h
Book and Bank Statement is sent to Principle
Office (PO) Karachi. Different lodgers are
prepared in P. O and these are sent to SLIC
Bahawalpur Zone for further reconciliation.
Errors and commissions are corrected.
Following list are prepared by this section:
Data Wise To t a l List of Cheques
Encased.
List of Cheques Issued (Cash Book)
List of Unmatched Cheques of Bank &
Cash Book Files.
Along with the above mentioned lists, a
“Daily Cheques Realization Repor t” is
prepared in the following manner:
To t a l N o . O f C h e q u e s D e p o s i t e d i n D e c . ***
19— **
To t a l Amount of Cheques Deposited in ***
dec, 19--- **
To t a l N o . O f C h e q u e s R e a l i z e d t o d a y ***
**
To t a l Amount of Cheques Realized ***
M o n t h To d a t e ( M T D ) **
To t a l Amount of Cheques Realized ***
(MTD) **
Realization Ratio ***

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**
S A L A R Y P R E PA R A T I O N :
In B&A Depar tment Salar y of the employees is
calculated. Different allowances are offered
to the employees. Loan facilities are availed
for the employees. Tax is deducted from
S a l a r y. A p r o v i s i o n o f r e c o v e r i e s o f t h e l o a n
is made.
Following are the addition to the salar y
of the employees: (see Annex No.)
B a s i c P a y.
S p e c i a l / Te c h n i c a l P a y
House Rent Allowance @80% and 75% of
Basic Pay for staff and officer
r e s p e c t i v e l y.
Conveyance Allowance @Rs. 600 and Rs.
5 0 0 p . m . f o r o f f i c e r & s t a f f r e s p e c t i v e l y.
Car maintenance Allowance @ Rs.550 and
Rs. 750 f o r, only s ta f f, unmarried and
m a r r i e d r e s p e c t i v e l y.
T e a E x p e n s e s @ 7 % o f B a s i c P a y.

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The deductions from salar y are as
follows:
Provident Fund (PF) Contribution @ 1/12 th
o f t h e B a s i c P a y.
Union Subscription @ Rs. 50 and Rs. 30 for
o f f i c e r & s t a f f r e s p e c t i v e l y.
Salary Advance Repayment (24 monthly
installments).
PF Loan Installement-2 (50 monthly
installments).
Pf Loan Installement-1 (26 monthly
installments).
Convince Loan Recover y (40 monthly
installments).
House Building Loan Installments.
House Rent Installment (18 monthly
installments).
Following are the dif ferent types of loans,
which can be availed by employees of
SLIC managed by salary section:
T w o - M o n t h A d v a n c e S a l a r y.
Loan-I against PF (3 Basic Pay).

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Loan-2 against PF (12 Basic Pay or 90% of
Pf employee own contribution, whichever
is less).
Conveyance Loan @ Rs. 55000 and Rs.
1 5 0 0 0 0 f o r s t a f f & o f f i c e r r e s p e c t i v e l y.
House Building Loan.
After preparation of salary payable
(Additional & Deduction) the data is
purchased (feeding) into the computer
database. Different types of lists are
prepared such as total loan payment,
allowances etc.
B U D G E T P R E PA R A T I O N :
B u d g e t i s p r e p a r e d a n n u a l l y. P r o p o s e d B u d g e t
is sent to PO. T he funds of different heads of
proposed budget are transfer red to Zonal
Office Bahawalpur wholly or p a r t i a l l y. It is
assumed that each year First Ye a r Premium
(FYP) is increased by 25%. According to this

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base the commission of the agents are
calculated and budgeted.
Following are the main types of budget:
Income Budget
Claim Budget
Commission Budget
Admin, Expenses Budget
Admin & Claim Budget is estimated by
considering previous year actual expenses.
Zonal & Regional Offices have separate
budgets. If the funds transfer red from PO
Karachi are less than the proposed budget,
additional funds are acquired from PO
whenever required. The Budget Re gister is
maintained in the department for
employee/par ty/expense is debited and cash
is credited. No additional expense is made
when the budget is in short.

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INTER-ZONE TRANSACTION:
There is separate section for inter-zone
transaction in budget and accounts. Whenever
any expense is made on behalf of any other
zone, the debit note is issued to the
concerned zone for that expense. S i m i l a r l y,
other zone can issue debit note to
Employee Loan % age Rate
Grade (interest)
1,2,3 Rs. 150000 6
4 to 7 Rs. 200000 6
7 & onward Rs. 2155000 10
(or 30 Basic
Pay whichever
is high)
Bahawalpur Zone is they have occurred the
expenses on behalf of Bahawalpur Zone.
T he expense incur red on behalf of other zone
can be claimed, s a l a r y, TA / DA , claim
investigation expense, u t i l i t y, Meeting
expense, entertainment, repair &
maintenance, rent, Medical expense etc.
COMMISSION SECTION:-
In B&A Department, the commission
Section calculates the commission. First

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Premium Receipt (FPR) is prepared by the
New Business Department is sent to
Commission Section to calculate the
commission of agent. It has four copies, one
for commission section and other three for
agents (SR,SO,SM).
The commission rates var y with the amount of
F Y P a n d t e r m o f t h e p o l i c y. T h e M o d e B o n u s
is given to SR if the premium installment is
a n n u a l l y, @1.5% of F Y P. Allied Bonus is
g i v e n t o S O , S R @ 4 . 3 5 % o f F Y P P. A . , p a i d
by monthly if they have 72% of II year
p e r s i s t e n c y, 9 0 % r e n e w a l p e r s i s t e n c y, 1 0 S R S
and last year FYP of Rs.120000 and Rs.150000
r e s p e c t i v e l y. P r o d u c t i o n B o n u s i s g i v e n S R , S O
& SM if they have last year FYP of
Rs.6000,Rs.15000, Rs.50000 respectively and
have minimum 70% of II year p e r s i s t e n c y.
Further the tax is deducted @10% of
commission from the commission of agents.
In commission section different types of
loans are given on fulfillment of certain
requirements and targets to agent i.e.

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Emer gency Advance, Eid Advance, Conveyance
Loan, House Building Loan.
C O M M I S S I O N R AT E S

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F i r s t Ye a r R a t e
For Sales
Representative
Te r m Prod.
Premium ( Ye a r ) Bonus
20
14-Oct 15-19 Above

Rs. 1-3999 25% 30% 35% --
4000-5999 25% 30% 35% 2.00
6000-7999 25% 30% 35% 2.50
8000-9999 25% 30% 35% 3.0
10000 above 25% 30% 35% 3.5
FOR SALES OFFICER

Te r m
Premium ( Ye a r )
20
10 To 14 15-19 Above
1-19999 13.13% 14.88% 17.50%
20000-34999 15 17 20
35000-49999 16.88 19.12 22.5
50000-74999 18.75 21.25 25
75000-above 19.5 22.1 26
FOR SALES MANAGER

Te r m
Premium ( Ye a r )
20
10 To 14 15-19 Above
1-49999 4.50% 5.10% 6.00%
50000-99999 6 6.8 8
100000-1490000 7.5 8.5 10
150000-199999 8.25 9.35 11
200000-above 9 10.2 12
S E C O N D & O N W A R D Y E A R S R AT E S
FOR SALES MANAGER
SR SO SM
I I Ye a r 10.00% 2.00% 1.00%
Onward 5 1 0.50%

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C O M M I S S I O N PAY M E N T P R O C E D U R E : -
Following ar e thr ee methods used by SLIC
for payment of commission to agents:
• Payment by cheques
• Authority Card.
• Payment by Post.
In first method, the payment is directly
made to the agent by cheques. In the second
method, the payment is made to other
person authorized by agent by signing the
“A u t h o r i z e d C a r d ” ( S e e A n n e x N O 0 . 5 ) i n t h e
third method the commission is paid by post
to his postal address on his direction.
PRIZE AND AWARD:-

The prize and award are given to field force
who are achieved the highest FYP at any
time announced by SLIC.
E M E RG E N C Y A DVA N C E : -
It is given to SO,SM on the previous year
earning on the renewal premium. For SR
previous 2 year ear ning become entitlement
of loan.

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E I D A DVA N C E : -
Previous year total ear ning of SR,SO and SM
becomes entitlement.
C O N V E YA N C E L O A N :
It is given to SO,SM only on the condition of
having 5 year ser vice association with SLIC
and two guar antor s. T he loan can be taken
up Rs.40000.
HOUSE BUILDING LOAN:

To o b t a i n t o t h i s l o a n m i n i m u m a s s o c i a t i o n
with SLIC is 15 years and per vious year
renewal premium becomes entitlement.
IMPREST SECTION:
Imprest is the additional privileges given to
the employees (Area Managers). A n n u a l l y,
the Imprest Entitlement is made for the AM
by considering the previous progress in the
business. Different Circulars ar rive from PO
to Bahawalpur Zone mentioning the different
type of privileges on different FYP targets.
These privileges are free petrol, telephone,
e l e c t r i c i t y, c l e r k w a g e ,

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stationar y and other facilities etc.
PO LICY HOL DER SER VICE DEPARTM EN T
PHS is t he ab biva tio n of "P olic y Hold er's

Se r vic e" de par tme nt. As th e na me in dic atin g th at all
th e se r vices f or poli cy h old er a r e p er for me d he r e.
We can also call t hes e ser vi ces, aft er sale se vic es.
It is t he m ost busy d ep ar tm en t of SL IC in e ac h z one.
Ev er y se r vice p r ocess w as ta ken v er y c ar ef ull y in
th e last c on fer enc e o f SL IC . It w as an no unc ed t ha t
ever y ser vi ce w oul d be c om plet ed wi thin 1 5 da ys.
Oth er wise St ate Li fe p ays rest ric tion pl en ty to t he
poli cy hol der . T he he ad o f PH S is also sit ting in P .O ,
Kar ac hi. His pos t is G .M, the n ea ch r e gion c on tai ns
D.G .M lastl y t he hea d o f PH S dep tt. i n eac h z one is
de pu ty man a ger.
Follo win gs a r e t he fun ct ions pe rfor me d in PHS
de pt t.
DE ATH CL AI M
W he n a pe r so n dies, his r ela tiv es o r hei r s t ell
SL IC a gen t or dir ec tl y to the z onal of fic e. S LI C
de ma nds cer tai n doc um en ts li ke
1. A ppli ca tion f or dise ase.
2- NIC .
3- Disease a nd nomi na tor s a r e a tt est ed.
4- De ath ce r tifi ca te f r om uni on co un cil.
5- Origi nal do cu men ts (ORs).
Fir stl y de pt t. ma na ger o r his collig ue is
appoin te d f or t he i nvestig atio n o f th is c ase. He also

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chec ks FI R fr om t he nea r es t T ha na. I f c ase is c le ar ,

th en S LI C tri es h is b est t o giv e claim as so on as
possibl e.
In cas e of ac cid ent, sam e pr oc ess a nd w ay o f
in vestig ati on is pe rf or med. T he pl ac e of
in vestig ati on is also c hec ked by the in vestig ator s
seri ousl y.
SURRENDER
An ot her se r vic e o f th is d ep tt. is sur rend eri ng. If
a po lic y hol de r w ant s to f inish his poli cy due his
cu mp olsar y n ee d of mo ney . T he n he has t wo
op tio ns. Fi r stl y, he ca n ta ke loa n, fr om his o wn
pr op er ty. Af te r r equi r em en t's com ple tion h e pays
13 % int er est an d co nti nu es his po lic y. Se co ndl y, i f
his ne ed is not ful filled w ith t his am oun t th en he
ca n sur ren de r his p olic y. B ut he ca n't g ain all his
am ou nt be ca use he is b r eakin g th e co nt r act.
Follo win gs a r e t he req uir ed do cu me nts.
1- A ppli ca tion.
2- NIC & a ttes ta tio n.
3- Origi nal r ecei pts.
Af te r all th ese co mpl etio ns sur r end er valu e is
bas ed on y ou r cas h value.
AL TERA TION
W he n poli cy hold er w ants som e c han gin g in his
te r m, sum assur ed t he n this c ha ngi ng is c alle d
Alt er atio n of poli cy.
e.g. A po lic y hol de r has a p olic y o f su m assur ed
2,0 0,00 0 an d he is no t sa tisfie d to this. He w an ts to
inc r ease it. T his is call ed Alt er atio n.
TER M CHANGING –
A poli cy c on tai ns 2 0 y ear s to b e ma tu r ed, bu t
poli cy hol der w ants t o de cr eas e it. He thi nks th at
af te r 15 y ea r s h e w oul d ne ed t his amo un t. T his is
an ot he r typ e of Alt er atio n.

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Follo win gs a r e t he req uir eme nts f or Al ter ati on.

1- Origi nal r ecei pts.
2- Alt er atio n f ee = 2 5 Rs.
3- Alt er atio n pe rf or ma.
4- F or m.
5- A ppli ca tion.
6- I. D. c ar d.
NOMIN ATION CH ANGE
3r d kin d of al ter ati on is n omi na tion c ha ng e.
Fir st a poli cy h old er n omin ated his wi fe but af te r
some t ime h e ga ve div or ce to he r wi fe a nd n ow he
wan ts an ot he r pe r son f or no mina tio n.
FILE TRANSF ER
If y our p olic y r ec or d is in Mul ta n z one an d n ow
you ar e in Bah aw al pur . T hen y ou ca n tr an fer he r e by
applica tio n.
MATURITY CLAIM
W he n a po lic y go es to i ts m aturi ty, i t mea ns
th at its ter m is co mpl ete d. SL IC sen ds a let te r to i ts
poli cy hol der .If do cu men ts, o rigi nal r ecei pts, all
pr emiu ms a r e r igh t, th en a heal thy am ou nt wi th
bo nus es g oes to poli cy hol der 's a cc ou nt. Ot her wise
if you h ad t ak en loa n and co uld no t r et ur n 1 3%
int er est an d ha ving c er tain c ash valu e in y ou r
poli cy, the n th is l oan pl us int er es t of th at pe rio d
woul d be d ed uc ted. All ma tu rity c laims goes t o y our
ac co un t.
LOANING
Oth er f ac ility of SL IC is l oani ng. Y ou ca n ge t
loa n fr om y our a cc ou nt. Mo st o f t he p eo ple a r e
allo wed 7 0% lo an fr om the ir o wn acc ou nts. In cas e
of se rious ne ed 80% is allo wed t o be ta ken as lo an.
Bu t wit h an e me r ge nc y c ase an d wi th t he h elp o f an
au th ori ty y ou w oul d be a war de d 90%.

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Bu t it is b en efi cial f or p olic y ho lde r s t o ta ke a

minim um loa n fr om th ei r acc ou nt.
e.g - if y ou t ak e 7 0% lo an, th en 30% w ill r emai n in
your ac co un t an d its cas h value w ill r emai n ta ke it
inf or ce f or mo r e tim e. I f y ou ta ke 90 % loa n, t he n
onl y 10 % will rem ain in y our a cc ou nt an d it w ill
co ver less time t o ta ke po lic y inf or ce d.
No de du cti on o f Z ak at f r om de ath c laim. W hile
Za ka t is c ha r ged f r om bot h sur r en de r an d ma tu rity
claim.
REVIV AL
Ch ar gi ng o f l ate f ee or e xtr a f ee is call ed
Revival, i f th e giv en pr emi um da te has be en p assed.
T he n till 30 d ays t he r e is no e xt r a fee, be ca use
th ese 3 0 days pe rio d is c alled g r ac e pe rio d. T hen
fr om 3 0 to 90 d ays whe n y ou go t o sub mit pr emiu m
wi tho ut l ate fee, th en i t may be d em an de "DGH"
(D ec lar atio n o f Go od He alth ) by th e he ad of this
de par tme nt. B ut fr om 9 0 da ys l ate fee will star t. At
this ti me PS ( Per so nal St atem ent ) ca n also b e
de ma nde d. T hese all ar e t he b en efi ts of suspe nse
ac co un ts. B ut th e loss o f susp ense a cc ou nt is, p ar ty
will ne ver ge t th e c laim. Bec ause i t is no n-cr edi t in
ac co un t. Ano th er te r m is S pe cial R evival, w hic h
me ans if you h ave for got te d you r poli cy aft er payin g
at leas t two pr emi ums and the n wi thi n 5 y ea r s i t
r emains in for ce, t he n poli cy hol de r has th e c ha nc e

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to ren ew it, e.g., he is un able t o pa y the r emainin g
pr emiu ms pl us the ir la te f ee . T hen h e ca n r en ew it
by th e st ar tin g of r unnig y ea r. I n o th er w or ds if y ou
go t y our p olic y in 97 , the n n ow it will skip to 200 2.
CONSTI TUTION OF CLAIM COM MI TTE E
T he c laims co mmit te e of pri ncip al of fic e for
ta kin g de cisions on a ll t he dea th & inj ur ed c laims
r efer s to the pri ncip al of fice is r eco nstit ut ed as
follo ws.
1:- D .G .M (PHS ) P.O. Co nvey or.
2:- Ma na ge r (PHS ) P.O Se cr et ar y.
3:- Ma na ge r (PHS ) P.O Me mb er.
4:- Ma na ge r (Ov er sees ) Me mb er.
5:- Ma na ge r (C& P) Division. Me mb er.
PERSONAL & GENERAL
SERVICE
D E PA R T M E N T ( P & G S )
The office & general matters are dealt in P&G
Department. This department has the sole

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responsibility and authority of the
disciplinar y action of the employees.
Selection, recruitment, termination of the
employees is the main functions of the P&G
Department. This department also deals in
medical facility to the office employees,
leaves and similar other general ser vices.
The daily correspondence is dispatched in
this department. Following are the main
section of this department:
MEDICAL SECTION:
All this hospitalization expenses are beard by
SLIC pr ovided that these are incurred in
approved hospital. T he expenses of medicine
are reimbursed. The reimbursement of
medicine is not allowed to staff (having grade
1 to18) but they are given Rs.600 p.a. in
shape of salar y as medical allowance.
RENT SECTION:
When sale Manager (SM) is promoted to Area
Manager (AM),he is categorized as A,B,C and
he has entitle to have his own office at his
choice at the expense of SLIC. A good
location is selected by the A.M. after

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selection of place, Zonal Head is infor med
about the location, by application written by
A.M. this application is transferred to P&GS
Depar tment for the analysis of location of the
office. The Zonal Rent Committee (ZRC)
annualizes this location. A lease agreement
is made with the landlord after analyzing the
approved map for the location and property
registration for m.
The office rent entitlement for the categories
of A,B,C of Am is Rs.2000, Rs.2000, & Rs.1000
P. M r e s p e c t i v e l y .
C A P I TA L S E C T I O N :
This section responsible for purchase, sale
and maintenance of furniture & fixture,
equipment etc. a Zonal Procurement
Committee (ZPC) is constituted for the
purchase of assets. The assets are purchased
from the suitable supplier after critically
analyzing the quotation offered by different
venders.
Each year assets are depreciated @10% p.a.
the entr y for the purchased assets is made in

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the Register for Fixed Assets. Each ear the
closing balance is intimated to PO Karachi.
S TAT I O N A RY S E C T I O N :
This section maintains the record of
s t at i o n a r y s u c h a s p a p e r, p e n c i l , e nve l o p s ,
printed letters, for m, calculators, dustbin,
etc. whenever any depar tment requires the
s t a t i o n a r y, t h e c o n c e r n e d d e p a r t m e n t f i l l s a
Requisition Slip. The stationar y is issued to
the concerned department and it is recorded
i n t h e r e g i s t e r.
L E AV E S E C T I O N :
Following ar e the main two types of
leaves:
• Casual Leave
• Medical Leave
20 days casual leaves are allowed to all
employees in a y e a r. The medical leave or
application leave is allowed for 48 days in a
y e a r. Unused leaves are accumulated and
after two years these leaves in excess of 180
das can be encased. In case of death all
leaves, not utilized, can be encased.

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PERSONAL SECTION:
All the employee matter such as appointed,
promotion, demotion, transfer and allowances
are dealt by personal section. Annual
Confidential Repor t-ACR (see annex N. 10 for
ACR) the employees are prepared, under the
super vision of this section, by the
departmental heads.
For the appointment of the st a f f, an
a d v e r t i s e m e n t i s i n i t i a t e d i n t h e N e w s p a p e r.
Zonal Head is computer authority for this
appointment of officers is done by Principle
office (PO) Karachi or Re gional Office.
Selection Committee constituted by Zonal
H e a d c o n d u c t s a t e s t a n d i n t e r v i e w.
For promotion of the employees, there ACR’s
are necessar y and minimum three years are
required to remain in one cadre. Each year he
employees are promoted by the criteria and
instructions set by PO Karachi. PO or
Regional Office does promotion of officers.

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A G E N C Y D E PA R T M E N T
Ser vice provided by the SLIC is
intangibles and therefore are not acquired at
the counter by the people, who need it, so it
must be sold them through persuasive
method. Field force of SLIC plays an effective
role in selling of tangibles products
(Insurance Plans). In order to maintain the
record of the field force agency department
was established. The main function of this
department includes recruitment, promotion,
and ter mination of the field force, allied and
medical facility for field force. This
depar tment is also responsible for insurance
and renewal of license to the field force.
RECRUITMENT:
T he Sales Representative (SR) is appointed by
SO/SM. The requirement and conditions for
the appointment of SR is as follows:
• Minimum qualification is required
metric.
• Age at entr y must be than 18 years.
• Annual quota for SR is Rs. 10000.

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• Application for the insurance of license
is necessar y and it is renewed after
each 3 years.
An application For m, along with license fee
Rs. 50, attested photocopies of documents
and Nomination For m is submitted to the
agency depar tment. A code number is allotted
at the submission of application to SR and he
can start working as agent of the SLIC of
Pakistan.
PROMOTION:
SR is promoted, upon fulfillment of certain
term and condition and on achievement of
business targets, to SO. Similarly SO is
promoted to SM and SM to A.M. following is
the criteria:
FROM SR TO SM:
• Two years wor king as SR:
• Must have secured minimum Rs. 75000
FY during immediate preceding two
years, but in any one calendar y e a r,
the FYP should be less than Rs. 25000.
• Must have at least 20 policies in force
on different lives.

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• Must have a achieved a minimum
S e c o n d Ye a r P e r s i s t e n c y o f 7 0 % i n t h e
i m m e d i a t e p r e c e d i n g y e a r.
• Must have achieved a minimum
Renewal Persistency of 90% in the
i m m e d i a t e p r o c e e d i n g y e a r.
FROM SO TO SM:
• Must have working of minimum 2
year s as SO.
• Mush have secured minimum
Rs.250000 FYP in the immediate
proceeding two calendar years, but
the FYP in any one calendar year
must not be less than Rs.60000.
• Must have at least 80 policies in
force in his/her organization;
• Must have minimum Second Ye a r
Persistency of 70% in the immediate
p r o c e e d i n g Ye a r ;
• Must have minimum renewal
persistency of 90% in the immediate
proceeding year;
• Must have minimum 4 productive SR.
FROM SM TO AM:

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• Must have working at least for 3
years as SM;
• Must have secured the following
total FYP for categor y A&B:
A= Rs.45,00,000
B= Rs.36,00,000
And last year FYP must not be than:
A= Rs. 20,00,000
B= Rs. 15,00,000
• Number of policies in the last year
must not be less than:
A= Rs.200
B= Rs. 150
• Must have minimum Second Ye a r
Persistency of 70% in the immediate
proceeding year and minimum second
year persistency of 65% of the
previous year of the immediate
preceding year ;
• Minimum 2 SO should be qualified to
sum;
• Annual quota must have:
A= Rs. 30,00,000

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B= Rs.18,00,000
T E R M I N AT I O N & D E M O T I O N :
Any agent of SLIC, who behave n e g a t i v e l y,
violates the rules & regulation or indulge
fraud or mal-practice, can be ter mination by
the Zonal Head. Any agent who fails to meet
the annual quota of FYP is demoted to
immediate lower rank of the field force.
LICENSE:
The license to work as agent for SLIC is
issued by the Controller of Insurance
Karachi. At specific of time, a list of the
field force is transfer red to controller of
Insurance Karachi for new and renewal of
license. The list of license fee is given
below:
SR (New License Rs.
f o r I s t Ye a r ) 59
SR (Renewal of Rs.
License) 70
SR (Renewal with Rs.
late fee) 125

SR/SM (Renewal of Rs.15
License) 0
SO/SM (Renewal Rs.20

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with late fee) 0

List of Field For ce in Bahawalpur
Zone
Field Cadre No. Agent
SR 571
SO 189
SM 73
AM 11
HRD DE PARTMEN T
HRD is th e abr eva tion o f " Huma n R es our ce
De volpm en t ". T his d ep t. tr ai ne d th e fi eld f or ce to
inh an ce th e p eo ple. It te ac hes th r oug ho ut t he
Ma r keti ng c ha nn el wit h th eir sp ecial co ur ses.
Follo win gs a r e t he cou r ses f or f ield f or ces,
be ca use th is t ea m is a f r ont lin e o f SL IC .
Co ur ses Ma r keti ng
BT C IS R
BT C SO
ADP IS R
MOP SM , AM
MOS L SO , S M

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MM S AM,S M
I h ave a tte nd ed t he B TC co ur se. F oll owi ng
is t he d et ail.
Tr aini ng an d c ou r ses g iv e th e f oll owin g be nfi ts:-
1:- Pr ofessionali ty.
2:- Se r vic e Upg r adin g.
3:- Liklih oo d habi ts.
4:- Pla nnin g.
Tar ge t attai ning:-
Time.
In co me.
Pla ce.
Follo win g thi ngs ar e th e k ey te r ms f or a
mar keto r. Be for e g oin g int o a ma r ket.
ACT IO N
A = Ac tiv e. C = Co nfi den ce. T=
T ha nk ful.
I = I nt ellig ent. O = Or ga niz ed. N
= No ble.
K AS H CA SH
K = Kno wle dg e.
A = At tit ude.

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S = Skill.
H = Ha bit.
You ca n ge t all wish es w ith t he hel p of
th ese t er ms an d th en you c an c ash e ver yt hing. I f
you ar e unable to hol d it th en this En gli sh " C ash "
will c han ge in to Ur du " Kash ".
Y our b asic ta r get is SALE .

S = Smile.
A = At tit ude.
L = L ove.
E = Eval ua tion.
BUDGETING (PRA CTIC AL PLANNIG)

Monthl y Expenditur es.
For ec asti ng.
Ho use r ent 3000

Utility bills 10 00
Food , D r essing 30 00
Tr anspor ta tio n 10 00
Cust ome r de alin g 12 00
Oth er e xp ens es 800
Total. 1 0,0 00.0 0

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To c over t hes e expe nses y ou h ave to inc ome
th r oug h this f or ec astin g.
MONTHL Y INCO ME
FO RECASTING
In co me 10, 00 0
Pr emium 25, 00 0
Policies 10
Me eti ng 10 0
Nam e obt ain ed 20 0
Wor kin g days 20
Me eti ng / da y 5
T he m ain pu r pos e of th e co ur se is " T o t hin k in
adv an ce " an d th is is th e basi c pla nnin g.

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I N T E R N A L A U D I T D E PA R T M E N T
This department plays a super visor y
role of all of the all the other departments by
checking and verification of all the working
done by the departments according to the
r ules and r e gulations pr ovided b PO Kar achi
time to time. These r ules and regulation are
provided to all the Zone through Pakistan in
shape of c i r c u l a r. These circulars are
attached in the book, which is called “Key to
PO Circular Vo l u m e ” . All working of the
departments are verification according to

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t h i s b o o k . I n t h i s w a y, t h e f r a u d s , e r r o r s , a n d
omission are detected.
TYPE OF AUDIT:
• Pre-Audit
• Post-Audit
When the audit is done before making
payments, it is called pre-audit. Audit
conducted after making payments is called
post Audit. Pre audit is conducted for all the
big payments such as purchase of assets,
payment at maturity of p o l i c y, payment on
death claim etc. Post audit is conducted for
all-to-day expenses such as traveling
expenses, stationar y etc.
CUS TOMERS OF S TATE LIFE
1- EXTE RN AL CUST OMERS

Ex ter nal cus tom er s ar e th ose w ho h ave no lin k
wi th SL IC . T hey ar e th e co mm on pe opl e w hi ch ar e
th e mai n ta r get o f sal es f or ce.
2- INTERN AL CUST OMERS

In te r nal cus tom er s ar e inf ec t thos e peo ple who
ha ve dir ec t or in dir ect link wit h SLIC . T hese ar e
em plo yees o f th e c or por atio n an d th eir r ela tiv es.

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MAR KE TIN G PR OD UC TS
Table Name
01- W hol e Lif e Assur anc e.
03- En do wm en t Assu r an ce.
04- Pr og ress iv e P r emi um.
05- T hr ee P ayme nt Pla n.
06- Join t Lif e.
07- Child P r ote ctio n.
09- Sing le Pr emium En do wm en t.
17- Optim al Ma tu rity .
18- Rur al Li fe.
19- Jeevan S athi.
36- Sh ad A bad.
73- Su neh ri P oli cy.
75- Child E du ca tion a nd Mar ria ge( built in )
76- Child E du ca tion a nd Mar ria ge(N on bu ilt
in).
N.D .SCHEM E
Polic y f ee is no t c har ge d on t hes e pla ns.
18, 71,7 2,73, 77.
If p olic y sum assu med is 30 0,0 00 or mo r e 50
pais a is r eba te on basic r ate.

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T he r e is a 8% r ebate f or sta f f empl oyees o n
pla nes.
0 1 to 07 .
5 1 to 57 .
T hese a ll pl ans ar e fi nishe d fr om J ul y 2 00 2.
02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62.
01:- W hol e Lif e Ass ur an ce

Ag e limi t = 10-6 5 y ear s.
Minim um pr emi um.
T his is f or l ow in com e pe opl e.
Bo nus r ate is Ma ximu m 50 p asia is r ebate o n
fact or w hi ch st ar ts fr om t hr ee la ck sum assur ed.
e.g.
A ge = 3 4 y ear s.
Ma tu rity = 85 y ear s.
Pr emium p aid = 51 yea r s.
= 500, 00 0
23. 49 - 0.5 0 = 22. 99
22.9 9 + 4 A TB = 26. 99
2 6.9 9*50 0 = 11 49 5 *10 0
P r emi um. = 11 5
Ma tu ri ty Cl aim:-
R e gula r Bon us 56*5* 50 0 = 14 0,00 0.

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10 2*4 7*50 0 = 23 4,6 00.
T er mina te d 30* 20*5 00 = 3 00, 00 0.
= 32,8 6,0 00.
De ath Claim
S.A. = 50 0,0 00.
Acc ed en tal c laim = 50 0,0 00.
A ge a t Ac cid ent = 55 y ear s.
R e gula r Bo nus = 50 0*5* 56 = 1 40, 000.
50 0*1 6*10 2 =
8,1 6,00 0.
Ter min ted:-
5 00* 11*3 0 = 1,6 5,0 00.
= 21,2 1,0 00.
AIB adde d 2 ,85, 495
Rs.
03:- End owm en t Assu ranc e

A ge te r m = 2 0-65 year s.
Matu rity a ge = 7 5 y ear s.
It 's ben ef it is t ha t t ime du r atio n is o n y our wish.
T his p olic y h as a sing le no min ee.
Ag e = 37 y ear s.
Ter m = 20 y ea r s.

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FI B = 15 %
ADB = 1. 25 %
59. 86 F ac to r + 1. 25 ADB = 6 1.1 1
61. 11+ 10 0 Poli cy fee = 6 2.1 1 Pr emium.
04:- Pr og ressiv e Pr emium

Ma tu ri ty Cl aim:-
S.A = 10 0,0 00
Re gula r Bo nus = 100* 5*4 8 = 24, 000
10 0*1 5*94 = 1 ,41, 000
Ter mi na te d
100* 10* 30 = 30 ,00 0
= 1,9 5,00 0.
1, 00,0 00 will also b e adde d.
T his w ill b ec ome 2,9 5,00 0.
Spec ial te r mi na ted Bonus :-

10* 10*1 00 = 1, 00,0 00
= 3,05, 00 0 Rs.
Dea th Cla im :-
I f d ea th 2nd yea r
= 1, 00,0 00
A cc ede nt al Cl aim = 1,0 0,00 0
R e gula r Bon us = 48* 1*10 0
= 2, 04,8 00.

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05:- T hr ee P ayme nt Plan

T his is spe cial f or b uisness ma n pe opl e.
Ter m = 18 -30 y ear s.
Ter ms:- 18, 21,2 4,27, 30 y ear s.
Ma tu ri ty w ill o n e ver y 6th y ea r if ter m is 18 yea r s.
e.g.
25 % claim w ill b e pai d af te r 06 y ea r s.
25 % claim w ill b e pai d af te r 12 y ea r s.
50 % claim w ill b e pai d on m aturi ty per iod.
Be st Use :-
W he n y ou g ot 25% c laim y ou ca n fi x it in
ba nk s che me, af te r 10 y ea r s t his am oun t will be 4
tim es.
Pr emiu m: -
Age = 42 y ear s
S. A = 50, 000
T er m = 21 y ear s.
61. 09*5 0 = 30 54. 5
30 54. 5 + 10 0 = 31 54
` 07:- Child Pr ot ec tio n

Child a ge = 6-1 5 y ear s
Don ar a ge = 20-5 0 y ear s

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Child r en have no allot ed a ny suplime nt ar y
co nt r act be for e 5 y ear s old. Af te r 5 y ear s a ge ADB
ca n be added.
If S.A is g r eater tha n 1, 50,0 00 th en un de r wri te r
ca n de ma nd " R ej ec t Me dic al Test ".
If F ath er Di ed .
Pr emium p ayme nt st ops. Till m aturi ty 10%
sc holar ship an uu al y go es to
childr en. At m aturi ty date c laim pl us b on uses will go
to c hild r en.
If C hildr en Die d .
If c hild di ed a ft er 1s t y ear o f p olic y th en 10 %
of S.A + 10 % o f B onus will be. I f af te r 2 y ear s of
poli cy the n 2 0% o f S.A + 2 0% o f b on us will g o to
fathe r. Af te r 10 th p r emium co mpl ete S.A + c om plet e
bo nus will go in ea ch c ase.
18:- R ural Lif e

Ag e = 20-5 5 y ear s
T er m = 15 or 2 0 y ear s
In ac cide nt al case 3 times c laim will pai d.
In ac cide nt al case b ut wit h any c laim will be
pai d.

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T he o th er f ac ility for p olic y hol de r is t ha t no
la te f ee will b e c ha r ged wit hin 8 m on ths af te r
pr emiu m paid d ate.
T his p olic y is fr ee f r om poli cy f ee.
Pr emiu m: -
T er m = 2 0 y ear s
A ge = 2 1 y ear s
S.A = 1, 00, 000
5 9.1 2*10 0 = 59 12
591 2 + 1 00 = 6 11 2
19:- J ee va n Sa thi
Pr emium sing le
Pr ot ec tion d ou ble
If a ny on e dies, th e ot he r pa r tne r get s
claim. If th e ot he r also d ies, the n th e c laim go es to
th e Hea ris. Is ola te d me dical f or bot h p ar tner s.
Se par ated f illing o f p r opose d f or ms. Eac h c an t ak e
supl eme nto r y co nt r act.
Table 1 9 = WP + TIR + 03
Eq ual a ge co nsid er atio n.
W ome n age = 24 y ear s - 2 = 2 2 y ear s
M an's a ge = 3 4 y ear s

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Dif fer en ce
34 - 22 = 12 y ear s
T his d if fer en ce will see i n the 4 will de du ct
fr om t he e lde r a ge.
Me dic al will b e de ma nd ed if FIB si mo r e t ha n
25 %
Ma n = 3 4 y ear s
W oma n = 24 yea r s
Ter m = 20 y ea r s
S.A = 1, 50,0 00
ASB = 1 .25 Rs
FI B = 15 %
56. 32 + 8. 22 ( 15 % FI B) = 6 4.5 4
64. 54 + 1. 25 ( ADB) = 65. 79
65. 79*1 50 ( S.A) = 986 8.5
98 68. 5 + 10 0 (p r emium f ee ) = 9 96 8.5
36:- Sha d A ba d
Ag e limi t = 20-6 0 y ear s
T er m = 10, 15,2 0,25
In cas e of ma tu r ed dea th 2 tim es claim w illl be pai d.
In cas e of ac cid ent al de ath 4 ti mes c laim will b e
pai d. If AI B added t he n 5 tim es claim w ill b e pai d in

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cas e of de ath. FI B & A IB ca n also b e adde d wit h th e
wish es o f und er wri te r.
T-36 = ADB + TI R + 03
Pr emium.
S. A = 2,0 0,00 0
Ag e = 25 yea r s
Ter m = 2 0 y ear s
53. 45*2 00 = 1 0,6 90
10,6 90 + 1 00 = 10, 790
73:- Sun eh ri P olic y

Bo nus r ate = 115 /1 000
It is sam e o f lo ng lif e, plan,s aving an d p r ote ctio n.
Ag e limi t = 20-6 0 y ear s
A ge = 3 4 y ear s
S.A = 1, 00, 000
He w an ts no incr ease i n 6% th en this will
pr oc ee d li ke o th er p olicies.
If h e w an ts to ren ew 6% th en medi cal will be
de ma nde d. No poli cy f ee, no r ebate. S uple men to r y
co nt r acts.F IB , ADB , TI R.
Co ntr ac ts a nd ben efi t o f su pleme nt or y c on tr ac t
star ts fr om 3r d pr emiu m.

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75:- Child Edu ca tio n and
Mar ria ge
Ev er y pe r so n can ge t this f or his nep he w, son e tc. I n
cas e of poli cy hol de r's d ea th 24% F IB s chol ar ship
go es to c hild r en. But bir th c er tific ate will be
de ma nde da t ma tu rity or de ath. In cas e of also
child's de ath th e c laim go es to hea ris. Cash valu e
ca n ge t no suple men to r y co nt r act a dde d to chil dr en.
Ter m = 18,2 1,2 4
FIB = 24%
N'D S cheme
For m en tal, a bon or mal, hal fse t peo ple + a ge d pe opl e
+ un fi t peo ple.
Bu t ma n get th r oug h 03 o r 05.
A ge limit = 2 0-58 yea r s
T er m for 03 = 10, 15, 20
T able 0 5 T er m = 18, 21 y ear s
No supl eme nt or y c on tr act. Claim w ill o nl y in c ase of
ac ce nd en tal de ath in fi r st two y ear s. If af te r 2 nd
year , na tu r al de ath h appen ed. T he n on e y ear's c laim

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ba ck aft er 3r d pr emium, c om plet e am oun t r eceiv ed.
Not hin g shoul d be r eq uir ed in th is s che me.
BONUSES
Routi ne.
Ter mi nal.
Sp ecial T er minal.
In te r r um B on us.
R e gula r ( Rou tine ) Bonuses :_

Ti me Fir st Fi ve Y ear s After Fi ve Year s
<2 0 56 10 2
20 > 48 94 01-E nd owme nt.
15-1 9 35 81
10-1 4 20 60
20 < 35 09
15-1 9 25 59 02-P ayme nt
pla n
10-1 4 19 53
TER MIN AL BONUSES

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At t he m aturi ty time o r a t th e d ea th time i f th e
poli cy inf or ced t ill a ft er 4 y ea r s. A ft er t he 1 0t h
pr emiu m, t er mi nal bo nus st ar ts. T his b on us is 30
Rs. / 1 00 0 a t th e pr emiu m, w hic h is m axim um a t 60 0
Rs. p er tho usa nd.
e.g.
t-03
S.A = 10 0,0 00
Ter m = 25 y ear s
Pr emium = 500 0
10 0 (S.A )*1 5(Y r s. r emai ning )*3 0(R ate) = 450 00
SPECI AL T ER MIN AL BONS UES

In cas e of FI B y ea r in 20 02 a t p olic y
ma tu rity , th is b on us will b e giv en to y ou. T his will
be giv en to y ou a t ea ch last 10 y ea r s p r emium wi th
th e r ate of 10 / 100 0 w hi ch is ma ximum.
20 0 / 10 00
e.g.
t-03
S.A = 10 0,0 00
Ter m = 30 y ear s
FI B

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10 0( S.A)* 20( Yr s. r em ainin g)*2 0( Ra te ) = 20 00
INT ERR UN BONUS
T his is giv en as int er r um bon us, w hi ch is giv en
at te r minal b on us.
e.g.
Sp ecial b on us is giv en in 20 02, b ut it do es not
go es to p olic y h old er an d PH di ed. In this cas e th e
bo nus w hi ch is deli ever ed in 20 03, will also b e giv en
to poli cy h old er.
e.g.
Du ring 2 00 2 a te r min al bon us is giv en t o Ubai d.
Bu t th e bo nus ce r ti fica te does n ot fin d to Ub aid, an d
suc h a mist ak e happ ene d. T he n this will go t o
Ubai d's c laim as in ter r um bo nus.
SP ECIAL BONUS
Co nditi on = P olic y sh ould b e inf or ce d w hen th is
bo nus is ann ou nc ed.
e.g.
pr emiu m of 94 w ill b e pai d in 95 's p r emium
da te .
SUPP LEM ENT AR Y CONTR ACT
ADB .
AIB .
FI B.

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TI R.
WP.
SW P.
SUP LEM EN TOR Y C ON TR ACT S

AD B
Do uble c laim pa id fr om 5 -55 y ear s. ADB be co me 4
tim es in S ha dBa d au tom ati call y. In t abl e 18 t his is 3
tim es, b ut in c ase o f injur y or d ea th wit h
a gricul tur al too l this will pai d 5 tim es. No n e xte r nal
or int etr nal inju r y ef fect the de man d o f ADB c laim.
Noti ce o f c laim is atta ched t o t he d oc ume nts w hen
this c on tr act st ar ts. T his con tr ac t is c he cked wit hin
90 days of de ath. has t he r igh t to e xami ne th e bo dy
at any d ate. T er mi na tio n in case o f de ath c laim, or
if goes t o sixty y ear s a ge. I f y ou w an t to inc lud e it
in cas e o f r evival the n t his will h appen a cc or ding t o
th e r ul es o f. Risks whic h ar e e xclu de d in this
co nt r act ar e in m ur der , he at str ok e, in ar restin g,
ga mes, pr a g r enc y, a ny ef fect f r om alc oh ol d r ug etc .
AIB

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In cas e of de ath, do ubl e claim w ill g o to par ty. In
ac cid en t, i f t wo main o r gans, two ar ms, t wo le gs,
tw o e yes or one ar m, le g or ey e died t he n co mpl ete
claim will be c ha r ged an d all th e p r emi um lif e and
on maturi ty. Sam e Assur ed + Bo nuses o f P r emium
pai d. But i f on e m ain or ga n des tr oys
e.g.
On e ar m or on e le g de ma ge th en hal f o f t he
claim will be p aid bu t n o r eba te in pr emiu m. In
cas e of on e ey e 1/3 o f S.A will reci eved. Fin ge r of
Sh ah ad at o r th um b des tr oy, t he n 1/ 4 of S.A will
r ecie ved, n o r eba te in pr emiu m. I f th er e is a ny
seri ous inju r y th en 5 /1 000 r eci eved f or 52 w ee ks. If
inju r y is m or e tha n 15 days.
Bu t af te r 52 weeks 1 00 /10 00 f or 10 year s will be
r ecie ved.
Ter m = 20-5 5 y ear s
FI B
It 's limi t star ts f r om 10-5 0% a nd 1 0-25 % . No
me dical c ha r ge but af te r 25 % FI B me dicall y y ou will
chec ked. I n cas e o f de ath m on thl y s cholar ship
pai d.I t's ter m is fr om 1 0-45 yea r s. Ag e limit is f r om
20-5 0 y ear s. Pr ot ec tion o f con tr ac t will rem ain a t

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65 year s a ge. T his con tr ac t te r mina tes o n Ex pir y
da te , if t he p olic y la ps e, sur r ende r or on a ny poli cy
an niv er sor y a t p rio r no tic e by th e poli cy hol der . I f
your po lic y is o n R evival t he n of fc ou r sty it's amo un t
will be a dded.
TIR
Frie nd go es to Dub ai, for t wo or t hr ee y ear s an d
gai ne d a co nt r act. T ha t if y ou r ac cid en t happe ned
at any pl ac e the n it's e qu al amo un t go es to y our
ac co un t.
Ter m is fr om 1 0-25 year s.
Ag e limi t is fr om 2 0-60 y ea r s.
Ma ximu m rate o f TIR is 3 tim es. I t's pr ot ec tio n
r emains a t 70 y ea r s a ge.
Be caus e the se co nt r acts ar e o f 2 o r 3 y ear s, so
mos tl y f act or y ho no ur s, driv er p eo ple ge t t his.
SU PLEM ENT OR Y CO NT RA CT R ATE S
Cl er k, Pr of es siona ls etc .
AIB = 4 Rs
ADB = 1. 25 Rs

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Buisn ess ma n
ADB = 1. 5 Rs
AIB = 5 Rs
For mer
ADB = 1. 88 Rs
AIB = 6 Rs
La bo ur
ADB = 2. 5 Rs
AIB = 6 + 2 = 8 Rs
FI B is o n th e wish o f poli cy h old er.
Follo win gs a r e t he plans w hic h ar e of f f r om J ul y
20 02.
02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62
SA LAR Y A ND GRA DI NG
Gr ad e In it ia l Pay Inc r emen t Max. P ay
1 15 45 80 34 56
2 17 88 10 0 38 68
3 18 49 10 2 39 91
4 20 37 11 8 45 15
5 21 05 13 3 48 98
6 26 52 14 9 57 81

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7 33 74 28 8 13 45 4
8 49 90 35 0 11 99 0
9 72 00 49 0 15 53 0
10 89 70 61 0 18 12 0
11 12 63 0 64 0 22 23 0
12 13 66 0 68 0 23 86 0
13 15 92 0 71 0 26 62 0
14 18 42 0 90 0 30 12 0.
SW OT AN ALYSIS
St r eng th.
Weak ness.
Opp or tuniti es.
T hr ea ts.
SWOT
A N A LY S I S
“T her e is an old Spa in s ay ing th at to be a

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bullfighter you must first Lear to
be a bull”.
SWOT stand for strength, Weakness,
Opportunities and Threats. The main aim of
this analysis is to identify the extent to
which the current strategy of the
organization and its more specific changing
taking place in the business environment. The
idea of SWOT analysis is to under take a more
structured analysis so as to yield so as to
yield finding, which can contribute the
f o r m u l a t i o n o f s t r a t e g y.
STRENGTHS
SWOT Analysis of SLIC is as follows:
Field force Management
Good image
Excellent set up
Real estate division (investment por tfolio)
Training academies & tr aining center s
Mar keting division
Adver tising & Sales promotion
Computerization
Mar ket leader

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Retur n (bonus to policyholder)
Gover nment security
FIELD FORCE MANAGEMENT:

SLIC has ful-fledge HRDD in most ZONAL
Offices organized by qualified trainers and
equipped by modern equipment to mange and
train field force.
GOOD IMAGE:
SLIC is an old insurance company operating in
the Pakistan and has created the good image
and good will in the eyes of general public.
This is the strength of SLIC.
EXCELLENT SETUP:
SLIC is a large Life Insurance Company in
Pakistan and have 27 Zonal Offices and 5
R e g i o n a l O f f i c e s t h r o u g h o u t t h e c o u n t r y.
R E A L E S TAT E D I V I S I O N ( I N V E S T M E N T
PROTFOLO):
SLIC has well-equipped and computerized
Real Estate Division in principal office (PO)
K a r a chi su p e r vi se d b y hi gh l y q u al i f i ed s t af f,
engineer s and investment anal ysts.

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TRAINING ACADEMIES & TRAINING
CENTERS:
SLIC has 3 training Academies at Karachi,
Lahore and Rawalpindi and 26 Training
Centers in zonal offices. In 1998, 1946
courses and seminars, ranging from Basic
C o u r s e s t o a d v a n c e d P r o g r a m s l i k e A D P, M O P
and MMS of LIMRA (USA) had conducted.
MARKETING DIVISION:
This division is backbone of SLIC. During
1998, 25486 young and educated people were
inducted as SR in the sale force, this raising
its strength to 256,814, inclusive of SO & SM.
ADVERTISING & SALES PROMOTION:

During 1998, a new penal of four adver tising
agencies was selected. Outdoor adver tising
such as installation of Unipole Hoarding
display of commercials in PTV is done and
other publicity materials such as Calendars,
Sticker s, Eid Cards, and Poster s are produced
to boost business activities.
C O M P U T E R I Z AT I O N :

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About 2/3 working is computerized in SLIC.
The plan to computerized total working is
u n d e r r e v i e w.
RETURN (BONUS TO POLICYHOLDER):

SLIC pr ovides different types of bonuses as
R e v e r s i o n a r y, Te r m i n a l , Interim, One time,
Golden and Special Rever sionar y Bonus to the
p o l i c y h o l d e r.
G OV E R N M E N T S E C U R I T Y:
It is the main strength of SLIC. Due to this
f a c t o r, the image and good will for SLIC is
further enhanced:
OTHERS:
♦ It is old and most experienced organization.
♦ PO conducts mar keting sur vey to analyze
environment and develop new plans.
♦ Employees are fully devoted and highl y paid
wor kers as compare to other or ganization.
♦ It has highest paid up capital.
♦ It is reinsured by Swiss Re (Insurance
Company Switzerland).
WEAKNESSES

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Incompetent field force
Internal setting & culture
Centralized Decision Making
Inter nal depar tment inefficiency
Selection & recruitment
Feed back
INCOMENTENT FIELD FORCE:

I n t e r m o f q u a n t i t y, i t i s s t r e n g t h b u t i n t e r m
of quality it is weakness. Most wor ker s are
not highly educated. They are promoted by
fulfilling targets.
I N T E R N A L S E T T I N G & C U LT U R E :
Internal office setting and arrangement is not
satisfactor y as compare to its competitors.
Dominant Culture needs further improvement
but sub culture (i.e HRDD, Group Insurance)
o f s o m e d e p a r t m e n t i s s t a t i o n e r y. Y e t t h e r e i s
need of fur ther impr ovement.
CENTRALIZED DECISION MARKETING:

Managerial decision-making is totally
centralized in the PO Karachi, Zonal Offices
follow the instruction and rules & regulations
provided by PO. Sometimes decisions is taken
by PO is not strategic and adjustable in the

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local environment. For prosperity & survival
of the organization, decentralization (to some
e x t e n t ) i s n e c e s s a r y.
I N T E R N A L D E PA R T M E N T
INEFFICIENCY:
♦ Underwriting process (in NB Department)
takes longer time period, which irritates
the prospects.
♦ Loan section takes 10 days to process.
♦ Normally 1 to 2 months is required to
sur render the policy and take the Sur vival
Benefit, which is not justified.
SELECTION & RECRUITMENT:

SR are selected and recruited by SO & SM
ir respective of their education and unique
inter nal attributes.
FEED BACK:
T he Cor poration does not have any ef fectives
and efficient feed back channel to
disseminate sales force suggestions to upper
management. F u r t h e r, organization has no
well organize system for feed back between

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o f f i c e e m p l oy e e s a n d m a n a g e r, m a n a g e r s a n d
Board of Directors.
OTHERS:
♦ Frauds done by some deceives field wor kers
who deteriorate the good will & image of
the organization.
♦ Ineffective downward and upward
communication channels.
OPPORTUNITIES
P E R - C A P I TA P R E M I U M
In Pakistan per capita premium payment is
1.5 and $1.7 only for life & general insurance
r e s p e c t i v e l y. There is an opportunity to
enhance this nominal rate. In Japan per
capita premium for life insurance is $3810.
P O P U L AT I O N G R O W T H R AT E :
In Pakistan, population growth rate is
approximatel y 3%. It is a great opportunity
f o r i n s u r a n c e s e c t o r.
I N S U R E D P O P U L AT I O N :

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In Pakistan 2% to 3% population is insured
while rest of the population provides
opportunity to life insurances to enhance
their business.
G OV E R N M E N T R E G U L AT I O N :
Section 10-B of Pakistan Commercial and
Industrial Standing Ordinance 1968 provides
the compulsor y insurance of all the
employees of the organization (whether
private or Govt.). So it is a great oppor tunity
to SLIC.
E NT E RY BAR R IER S
To enter in the insurance business he
investment is required. Further 40% of
premium is compulsor y for the private
insurances, to cede to Gover nment of
Pakistan security purpose creating the entr y
b a r r i e r.
T H R E AT S

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COMPETITORS:
The existence of local and gover nment
insures such as EFU, CU, Metropolitan. ALICO
etc. is threat to the sur vival of SLIC.
P O L I T C A L I N S TA B I L I T Y :
Political instability looses the confidence of
the policyholders. Further rules and
regulations of gover nment are subject to
change creating threat to insurance business.
FEAR OF WAR
The relationships of Pakistan with India are
not satisfactor y due to Kashmir dispute.
There is always a fear war creating the threat
to corporation and policyholders.
I N V E S T M E N T C L I M AT E :
Due to the political instability and
gover nment changeover the investment
c l i m a t e s a r e n o t s a t i s f a c t o r y i n t h e c o u n t r y.
So the return from real estates and other
activities is deteriorated.
Competors

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ALICO
EFU
METRO POLETON
COMERCIAL LIFE
P O S TA L L I F E
AD AM JE E
T he main C omp eti tor s o f S LIC a re:

Easter n Federal Union (EFU)
Commercial Insurance Company
Metropolitan Insurance Company
American Life Insurance Company (ALICO)
SLIC has enjoyed a complete monopoly till
1990 when the Govt. has decided to allow the
private insurers to operate in the Pakistan.
After 1990 the mar ket share of SLIC is
declining. But yet SLIC has enjoyed the
mar ket share in life insurance business of
91.4 on the basis of total premium written off
in 1997.
The year of establishment of the life
insurance companies are as follows:

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EFU 1992
CU July
1996
ALICO May
1995
Metropol Febr ua
itan ry
1993
SLIC 1972
EFU and CU have adopted the Unit Link
System. W henever the policyholder takes the
i n s u r a n c e p o l i c y, h e i n d i r e c t l y p u r c h a s e s t h e
units of the EFU and CU. T he values if this
u n i t i s a n n o u n c e d d a i l y i n t h e n e w s p a p e r.
The strategic analysis of SLIC is confined
only 5 years star ting from 1994 to 1998.The
main objective of this analysis to know the
financial status and competitive position of
SLIC keeping in view dif ferent factor s such as
total business in force, life fund, investment
por tfolio, total income, FYP etc. first, I star t
from premium Income of SLIC.
STATE LIFE I NSURAN CE CORPORA TION

OF P AKI ST AN
SUMM ARIZED INCOME

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ST ATEMEN T
FOR TH E YEA R ENDED ON 31
DECEMBER- ------------
1997 1998 1999 2000 2001
Total Income
First year premium 1,487, 1,293, 1,258, 1,033, 1,121,
409 756 084 522 142
Renewal premium 4,363, 4,413, 4,311, 4,537, 4,564,
671 159 467 853 562
Single premium 2, 2,2
65 561 323 48 37
Group premium 1,412, 1,244, 1,250, 1,101, 1,256,
867 368 941 959 481
Annunities 2, 11, 15, 4,8 2,5
165 754 030 90 08
Interest, Dividend,Rents 5,791, 5,866, 8,372, 7,791, 8,355,
018 708 300 677 685
Profit on sale of Investment 109, 128, 32, 80,8 51,1
293 692 962 44 58
Profit on sale f assets 1, 7 1,0
630 549 200 36 28
Miscallaneous income 9, 15, 41, 38,4 8,3
934 923 315 72 59
Total Income 13,177, 12,975, 15,285, 14,592, 15,360,
052 470 622 201 960
Oper ating E xpense s
Claims & Policies paid 4,341, 4,714, 4,904, 5,136, 5,572,
069 853 083 130 197
Management Expenses 1,599, 1,381, 1,303, 1,132, 1,213,
135 227 398 029 747
Payment to Field workers 964, 939, 1,214, 1,081, 939,
867 710 557 302 660
Rent for offices 101, 1, 137, 141, 134,
729 325 893 985 382
Staff Gratuity & Pesion 57, 867, 92, 57,2 53,9
349 635 727 22 21
Provision for bad debts 7, 12,6
317 814 10

88
106
Depreciation 38, 41, 39, 35,7 68,0

843 382 332 59 60
Other Expenses 373, 504, 359, 401, 272,
271 454 737 441 476
Voluntery retirment Scheme 759,
501
Total Operating Expenses 7,476, 8,450, 8,059, 8,745, 8,267,
580 586 541 369 053
Oper ating pr ofit 5,700, 4,524, 7,226, 5,846, 7,093,
472 884 081 832 907
Provision for Taxation 66, 75, 45, 204, 159,
172 260 641 036 974
Federal Govt Share 206, 155, 242,
201 775 418
Total 272, 75, 201, 204, 402,
373 260 416 036 392
Net pr ofit 5,428, 4,449, 7,024, 5,642, 6,691,
099 624 665 796 515
1997 1998 1999 2000 2001

Net Profit margin 41% 34% 46% 39% 44%
Operatiang profit margin 43% 35% 47% 40% 46%
ATIO ANALYSIS
Net Profit Margin
Ne t Pr ofi t/ Tota l Inco me

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106
Year 1997 1998 1999 2000 2001

Net Profit
margin 41% 34% 46% 39% 44%
The net profit margin of the company is very good. It
clustering round 40% that is very good. The net profit
margin of the corporation dropped down to 34% in year
1998 from 41% in year 1997. In year 2001 that net
profit margin of the corporation is 44% that is 3%
higher than the profit ratio of 1997 i.e. 41%.
Operating Profit Margin
Operating Profit / Total Income
Year 1997 1998 1999 2000 2001

Operating profit
margin 43% 35% 47% 40% 46%
The operating profit margin has increased from

43% in year 1997 to 46% in year 2001. This
thing shows that the management has taken
some encouraging actions to reduce the
operating expenses of the cor poration.

90
106
Cur r ent Ra tio

Current Assets / Current
Liabilities
Year 1997 1998 1999 2000

2001
Current 1300
Ratio 1224% 1066% 1160% 1399% %
T he company has kept the majority of its

sources in the current assets. The ratio of the
c u r r e n t a s s e t s i s i n c r e a s i n g o v e r t h e y e a r. T h e
ratio of current assets to current liabilities
has increased from 1224% in year 1997 to
1300% in year 2001.
De bt R ati o
Total Liabilities / Total Assets
2
Year 1997 1998 1999 2000 001
Debt Ratio 99% 99% 99% 99% 98%
As the company acquires funds from the

general public it has huge amount of exter nal
sources. T hey have remained almost 99%
t h r o u g h o u t t h e s e y e a r.

91
106
In vestment to T otal
Assets
Investments / Total Assets
Year 1997 1998 1999 2000 2001

Investments to total
assets 65% 65% 68% 59% 67%
T he cor poration has kept majority of its assets

in the investment of various types. T he por tion
of investment in the total assets of the
company is increasing. It has fallen down to
68% in year 1999 but again increased to 67% in
year 2001.
Loans to T otal Assets
Loans / Total Assets
Year 1997 1998 1999 2000 2001

Loans to Total Assets 7% 6% 6% 5% 5%
The portion of the loan to total assets has

remained constant from 5% to 7% in these five
y e a r. I n y e a r 1 9 9 7 i t w a s 7 % t h a t h a s f a l l e n
down to 5% in 2001.
Local In vestments to
Total Assets
Local Investment / Total Assets

92
106
Year 1997 1998 1999 2000 2001

Local Investment to total
assets 8% 8% 7% 6% 6%
The portion of the local investment in
total assets has been decr easing over the
years. It has fallen from 8% in year 1997
to 6% in year 2001.
Investment to
Gover nment Securities
Investment in Govt. Securities / Total Assets
Year s 1997 1998 1999 2000 2001

Investment in govt securities
to assets 65% 67% 68% 58% 67%
T he cor poration has kept majority of its

cur rent assets in the gover nment securities.
T he por tion of the gover nment securities in
total assets has also remained constant around
65%. It has increased from 65% in year 1997 to
67% in year 2001.
STATE LIFE I NSURAN CE

CORPOR ATION OF P AKIS TAN
SUMM ARIZED
BAL ANCE SHE ET

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106
AS ON 31
DECEMBER- -------
PKR(000)
1997 1998 1999 2000 2001
ASSE TS
CUR RENT AS SET S
Cash 1,969, 2,419, 1,476, 8,694 3,211
077 961 142 ,277 ,165
Stores & Spares 17, 24, 25, 23, 23,
( stationery) 874 719 728 337 241
Income Tax Refundable 1,200, 1,455, 2,038, 2,861 2,781
214 617 001 ,545 ,446
Sudary Debtors 480, 482, 443, 1,292 885,
260 410 830 ,532 952
Outstanding Premium 1,391, 1,516, 1,702, 1,189 886,
699 051 212 ,107 587
Interest, Dividends, and 2,014, 2,419, 3,037, 2,886 3,250
Rents 286 718 760 ,969 ,337
Amount Due from other 5, 2,7 14, 1, 13,
persons 734 36 893 144 768
Balance Of 56, 56, 56, 56, 56,
Compensation 008 008 008 008 008
Agents Balances 64, 55, 55, 54, 42,
896 339 283 133 167
In vestment s
Govt Securities 35,709, 40,477, 46,220, 42,526 54,889
618 219 194 ,450 ,017
TFCs 120, 90, 58, 729, 517,

800 282 870 743 212
Certificate of 1, 1,0 1,0 1,
Investments 000 00 00 000
Preferred Stocks 4, 4,7 4,7 4, 4,
750 50 50 750 011
(-) Diminution in Value 47, 929, 111, 177, 783,
of Investments 296 239 648 791 083
Total Investments (net) 35,788, 39,644, 46,173, 43,084 54,627
872 012 166 ,152 ,157

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106
Total Current Assets 42,988, 48,076, 55,023, 60,143 65,777

920 571 023 ,204 ,828
Non Cur rent As sets
Loans 3,828, 3,828, 3,828, 3,828 3,828
072 072 072 ,072 ,072
Wapda Bonds 600, 600, 600, 600, 600,
000 000 000 000 000
U.K Govt Securities 243, 243, 243, 243, 243,
684 684 684 684 684
Bonds, Debentures, 10, 10, 10, 10, 10,
Stocks 000 000 000 000 000
Ordinary Stock In 4,614, 4,614, 4,614, 4,614 4,614
Pakistan 223 223 223 ,223 ,223
Ordinary Stock Outside 63, 51, 51, 51, 51,
Pakistan 628 397 397 397 397
Holding Subsidiaries 62, 62, 62, 62, 62,
Cos. 950 950 950 950 950
Total Non-Cur ren t 9,422, 9,410, 9,410, 9,410 9,410
As sets 557 326 326 ,326 ,326
FIXED ASSE TS
Hourse Property (net) 2,430, 2,910, 2,708, 2,664 4,363
961 162 779 ,205 ,420
Furniture, Fixture and 168, 164, 1,044, 1,265 1,835
Equipment(net) 663 141 121 ,236 ,781
Vehicles 23, 13, 5,4 1,
081 218 79 086 86
Total Fixed Assets 2,622, 3,087, 3,758, 3,930 6,199
705 521 379 ,527 ,287
Total Assets 55,034, 60,574, 68,191, 73,484 81,387
182 418 728 ,057 ,441
EQUI TIE S &
LIABILIT IES
Cur rent Lia bilitie s
Sundry Creditors 776, 1,507, 1,468, 657, 494,
104 821 368 471 078
premium and Other 242, 269, 303, 353, 374,
Deposits 648 508 793 275 461
Agent's balances 232, 183, 101, 262, 279,

95
106
264 357 784 630 165

Balance of 5 5 5
compensation Payable 91 91 91 591 591
Amount Due to other 19, 39, 58, 17, 31,
persons 546 416 110 730 389
outstanding Claims 2,223, 2,498, 2,771, 2,970 3,631
440 404 825 ,182 ,464
Pr ovision s
Loans 3, 2,8 2,6 2, 1,
785 59 95 242 918
House Property 8 7 6
78 14 97 680 663
Other receivables 13, 6,7 34, 34, 246,
866 60 477 530 148
total provisions 18, 10, 37, 37, 248,
529 333 869 452 729
Total current liabilities 3,513, 4,509, 4,742, 4,299 5,059
122 430 340 ,331 ,877
LONG TERM
LIABILIT ES
Balance o f Lif e
Insur ance Fund
Within Pakistan 50,730, 55,126, 62,122, 67,713 74,416
167 729 449 ,960 ,031
Outside Pakistan 279, 332, 361, 413, 402,
699 846 791 076 520
Provision for Gratuity 33, 94, 118, 107, 131,
325 597 307 029 428
Total Long T er m 51,043, 55,554, 62,602, 68,234 74,949
Lia bilitie s 191 172 547 ,065 ,979
Equity
Paid Up capital 100, 100, 350, 350, 750,
000 000 000 000 000
Rese r ves
General Reserve 18, 18, 18, 18, 18,
808 808 808 808 808
Exchange Fluctuation 359, 392, 478, 581, 608,
Reserve 061 008 033 853 777

96
106
total reserves 377, 410, 496, 600, 627,

869 816 841 661 585
Total Equity 477, 510, 846, 950, 1,377
869 816 841 661 ,585
Total Lia bilities & 55,034, 60,574, 68,191, 73,484 81,387
Equities 182 418 728 ,057 ,441
1997 1998 1999 2000 2001

Current Assets 1224% 1066% 1160% 1399% 1300%
Debt Ratio 99% 99% 99% 99% 98%
Investments to total 65% 65% 68% 59% 67%
assets
Loans to Total Assets 7% 6% 6% 5% 5%
Local Investment to 8% 8% 7% 6% 6%
total assets
Investment in govt 65% 67% 68% 58% 67%
securities to assets
RE CO MME ND ATION S
FO R OFF ICE FOR CE
 T he r e is muc h nu mb er o f o f fi ce st af f. T her e ar e
fiv e dep ar tme nts an d eig hty-fiv e pe r sons ar e
wor ki ng in e ac h de par tm ent.

97
106
 T he sal ar y is low, so as t he investme nt.

 T he r e gular w or kin g hou r s ar e mu ch a nd als o the
over time r ate is lo w.
 At ta chm en t an d de ta chme nt ar e no t o n me rit
basis, th ey shoul d be o n me rit a nd r ec r uit men t
of fic er s giv e m uc h f aciliti es t o th ei r rel ativ es a nd
fr ien ds, e .g., SLI C pr ovid es a n A.C an d ca r pet to
de pu ty man a ge's r oo m bu t of fic er s ha ve giv en
th em t o assista nt ma na ge r.
 Of fi cer s do n' t lik e to m ove the c laim files an d
pu blic ha ve t o m ove ar oun d th e of fic e ma ny t imes.
 No w it has b ee n sug gest ed th at a pe r so n shoul d
just as k for t he c laim o nl y o nc e an d ge t his
r ecei pt. No w af te r th ir ty days, la te f ee c har ges
will ge t inc r em en te d as the days pass an d
co r r es pon ding o f fi ce r will be r esp onsible f or th at.
 Of fi cer s c laim a bou t mar keto r s t ha t t hey h ave go t
mu ch h olid ays an d mo ve abo ut t o th eir w ill. T hen
it is su gges te d tha t S atur day's holi day sho uld be
r oun de d.
 Ma nu al w or k t ak es mu ch time so e ver y of fic e
sho uld be provid ed wi th a c om put er.
 Of fi cer s h ave r ud e be ha vi our t owar ds g en er al
pu blic, this sh ould b e ca r ed.
 Of fi cer s h ave not go t qu alifie d do ct or s, th ese
do ct or s ha ve n ot a ny cri te ria to be ful filled.
T he r efor e m any pr obl ems a rise a ft er d ea th c laims.
FO R MA RKETETING FO RCE
 Sel ec tion is not ide al. A t leas t, mi nimum

qu alific ati on f or sele ctio n sho uld be g r ad ua te.
 T he r e sh ould f r ami ng co ur ses a ft er selec tion f or
mar keto r s.T hey sho uld no t onl y be tol d th e w ays

98
106
to im pr ove the ir in com e but also imp r ove th ei r

atti tu de an d be ha viou r.
 At te ndin g th e co ur ses sh ould b e mus t. T her e
sho uld be four cou r ses ea ch yea r an d a tte ndi ng
th e t wo cou r ses sho uld be must f or e ver yone.
 T he c rit eri a for pr om oti on sho uld no t o nl y b ased
up on b uisness bu t pe r so nal skills sh ould also b e
co nside r ed.
 Ma r ket or s ha ve g ot the ir co mmision in t he fir st
pr emiu m the r efor e the y ar e exci ted a t f ir st
pr emiu m's p ayme nt b ut a ft er th at the y does n't p ay
atte nt ion t owar ds t he r est o f poli cy's p ayme nt
an d or ga niza tion h as to b ea r th e he avy loss.
T he r efor e t hei r pay sh ould b e bas ed up on
pe r sisten cy an d r ene wal.
 Besid es t his e ver y p er son is e ar ni ng 9-1 5
th ous and p er mon th, t he r efor e h e sho uld ge t f ull
tim e job r ath er th an p ar t t ime.
 T he r e sh ould b e a fi xed am ou nt on a pa r tic ula r
nu mb er o f p olicies.
 An d ano th er im por ta nt f ac t:-
 Quali ty: - No ma tt er that poli cy h old er s ar e less
bu t th ey sho uld be of lon g du r atio n. I t m ay be t ha t
mu ch p eo ple ge t ins ur ed be ca use o f th ei r
r efer enc e.
 Qua nti ty:- T he r e sh ould b e a m uc h nu mbe r of
poli cy hol der s be ca use e ver y pe r son g ets ri d af te r
th e fi r st tim e.
 Ma r ket or s sho uld gu ide abo ut e ver y asp ec t of
claim th at af fects th e p olic y, so th at poli cy hol der
do esn' t e ven t hin k of sur ren der .
 So metim es mar keto r s g et all t he amo un t o f po lic y
by fr au d, the r efor e ar rang men ts sho uld be m ad e
th at a po lic y hol de r himsel f ge ts his pr emium
pai d.

99
106
FO R ST ATE LI FE INSURANCE
CORPOR ATION:-
 T he bills o f ar ea man a ger ge t w as te d.

 T he n am e "Lif e In sur an ce" is not a ppr opri ate
be ca use it do esn' t onl y in clud e lif e buisn ess. T he
co r r ect n am e shoul d be " In com e Ins ur anc e".
 So me de par tm ents h aven' t got pa ds. T hey ar en' t
dir ec tl y link ed to z on al h ea d. T he pr obl em cr ea tes
w hen z onal h ea d ge ts his ille gal wor ks do ne a nd
th er e is n o c hec k a nd b ala nc e the r e. S o e ver y
de par tme nt sh ould h ave its o wn p ad t o pr even t
this m alfu nc tion.
 It is t he P akis tan 's bi gges t fin an cial instit utio n
bu t till no w i t hasn' t co mple te d its o wn w eb site.
So i t shoul d com ple te its w eb site t o ge t pe opl e
inf or med abou t its w or ki ng.
 Adv er tisem en t sho uld be i n thos e ar eas w her e
pe opl e know li ttle abo ut SL IC .
FUTU RE P LA NS
 T he c or por atio n aims a t co nsolid ati ng its
buis ness i n fut ur e y ear s.
 To giv e spe cial a tte nti on t o c hec k in fla tio na r y
pr essur es o n e xp ens e par ticul ar ly sala ries,
utili ties, c omm uni ca tions et c., by capit aliz in g on
ne w bu isness gr owt h, imp r ovin g poli cy hol der s
ser vice a nd r ed ucin g a voidable e xpe nses.

100
106
 To id en tify an d utiliz e the r es our ces in r ur al ar eas
in or de r to incr ease a nd mobiliz e s avings fr om
th ese a r eas.
 To st r eamline a nd e xp an d tr ainin g f aciliti es.
 To lay g rea te r str ess o n r eal in vestm en ts i n
suitable pr op er ty a nd o r din ar y shar es, t o en sur e
be tt er r et ur n t o t he p olic y ho lde r s.
 To imp r ove o ver seas buis ness by ope nin g
br an ches i n Mid dl e- East.
GL OS SAR Y
ACT UAR Y:- Ac tu ar y is a pe r son e mpl oyed by the
insur an ce co mp any w ho cal cu altes risk i nvolv e in
insur an ce th er ef or e also c alc ula tes th e pr emi um
pa yable by ins ur er.
ANNUITY :- An an nui ty is a p eri odic p ayme nt m ad e by
lif e insur anc e co mpa ny to a n an nui ta nt. T he
paym en t is m ade by t he com pa ny i n ret ur n for
pr emiu m whic h is p aid ei th er in a lump o r as a
seri es o f per iodi c paym en ts.
BUDGE T:- Es tima te o f f ut ur e e xpe ndi tu r es in
r el ati on o f t he inc ome.

101
106
CAP IT AL M ARKET :- A ma r ket w he r e y ou ca n bo r row
or len d mon ey in lon g ter m b asis.
INSURANC E:- I nsur an ce is one of th e d evice by
w hi ch ris k may be r ed uc ed o r elimin ated in
excha ng e f or p r emium.
INSUR ER OR A SSURER:- T he pa r ty w hi ch p r ote cts
an ot he r a gainst t he va rio us r isks.
INSUR ED OF ASSURED:- T he per son or pa r ty w ho is
saf e gu ar de d a gainst t he r isk in e xcha ng e of
pr emiu m.
INVE STM ENT :- Assets, ge ne r all y o f a lon g ter m
na tu r e, t ha t a r e n ot used in n or mal ope r atio n of a
buis ness a nd tha t m an a gm en t does n ot int end t o
co nver t t o c ash wi thin t he next y ea r.
MONEY M ARKET :- I t is a mar ket w her e y ou can
bo r r ow o r len d mo ney in shor t-te r m buisn ess.
PRE MIU M:- I t is a pe rio dic paym en t pai d by th e
insu r ed t o th e ins ur er a gainst t he risk be ari ng.
SA VING:- E xcess o f inco me a gains t expe nses.
SA VINGS:- W eal th ga ine d th r oug h sa ving.
SKE TCH OF RE POR T

102
106
Introduction Bonuses SWOT Analysis

Insurance Companies Routine Bonuses Strengths
Insurance Evaluation Terminal Bonuses Weakness
Insurance in Pakistan Special Bonuses Opportunities
Life Insurance in Interim Bonuses Threats
Pakistan
State Life Insurance
in Pakistan
State Life Insurance
in Bwp.

103
106
Departments Marketing Products Competitors

Agency Department 01- Whole Life ALICO.
HRD Department EFU
Assurance.
New Business Metropolitan
Department 03- Endowment Commercial
PHS Department Postal Life
Assurance.
P&GS Department Adamjee
Audit Department 04- Progressive
B&A Department Premium.
05- Three Payment Plan. Performance Analysis
Supplementary Investment Portfolio
06- Joint Life.
Contracts Income Analysis
ADB 07- Child Protection. Outgo
AIB Life Fund
FIB 09- Single Premium End.
TIR 17- Optimal Maturity. Ratio Analysis
WP Liquidity Ratio
SWP 18- Rural Life. Activity Ratio
19- Jeevan Sathi. Profit Ratio
Calculation Solvency Ratio
Overtime 36- Shad Abad.
Persistency 73- Sunehri Policy.
Premium
Late Fee. 75- Child Edu. &
Loan Fee. Marr.(built in)
76- (Non built in).
N.D.SCHEME

104
106
Int er nshi p Pr oce du r e Pl an

s head points of concidr ation ho total depar tm
r.. ur s no of ent
#
hour s
1 Ch. M.Shubbir marketing management 9 Marketin

stretigies g
products(plans) 7
supplimentry contracts 8
Mk.channels 10
2 Mr.Ishfaq Calculations, 10 PHS
loan,maturityclaims
deathcliams, surrenders 10
survival,altration 10 30
3 Mr.Rafiq under writing 10 New
busniss
policy case allotment 9 19
4 Mr.Imtiyaz Organizational stucture 9 Auditing
Histotry and introduction 10
Division 9
Auditing 8
Competetors 7 43
5 Mr. Basic training course 6 HRD

105
106
Hashmi
Bounuses 8
benefits of life insurance 7
Selling process 7
Organizational stucture 6 35
6 Mr.Tufail Mission and objuctives 7 Agency
Strategies, agency 8
department head
Future plans 9 24
7 Mr.Freed payroll, reconsilation 9 B&A
Comission,disbursment 8
costing 10
policy holders payments 7
basic salary and grading 8 42
8 Mr Asad Office 10 P&Gs
transfer.promotions
purchasing ,advertizing 9
Distribution,facilitation 9 28
Total # o f hour s
= 246 hour s
No of days
=36(estima ted)
No o f w eeks
=6 w eeks

106

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106

We shall guide w ho striv e in our

cause to the pa th leading to us.

Sur el y ALLAH is with those w ho do

DEPARTMENT OF MANAGEMENT SCIENCES IUB

and to the people w ho de vote d their

liv es f or the fr eedom of this countr y.

DEPARTMENT OF MANAGEMENT SCIENCES IUB

ec on omy is in cr easing a t a n e xtr a or din ar y r ate an d

th e pr ese nt fi na ncial se r vic es r evolu tion lo oks

ce r tai n to r ein for ce th at tr end consi der abl y. T he

co nt ext do es no t c laim to e xha ustiv e and the

bal an ce mus t ine vi ta bl y be o pe n to c ri ticism, b ut in

atte mp tin g to giv e a ge ne r al insig ht to th e cas ual

inq uir er, the ne eds o f t hos e seeki ng in-d ep th

DEPARTMENT OF MANAGEMENT SCIENCES IUB

kn owled ge wi thi n par ticul ar a r eas m ust in evitabl y

be sacri fic ed.

T his r ep or t c over s a d et ail and anal ytical view

of th e S ta te L if e Ins ur anc e Cor por ati on. As t he titl e

th at this r epo r t is the essen ce o f t he har d w or ki ng

w hi ch I ha ve do ne dur ing my in ter nship te nu r e. T his

r epor t has b ee n wri tt en in t he hop e th at it will hel p

any bo dy, w ho r ead it ca r efull y t o o bt ain a r eal

un de r sta ndin g o f th e b asic str uct ur es, f un cti ons an d

te chniq ues o f t he di f fer en t de par tme nts o f S ta te

Lif e I nsur an ce Cor po r ation. T he rep or t is lo ng an d

I ho pe that the r epor t is r ela tiv el y f r ee of

er r or s an d will a ppr ecia te i f er r or s ar e b r oug ht to

UB AID -U R-R AHMAN .

DEPARTMENT OF MANAGEMENT SCIENCES IUB

ACK NOWL ED GME NT.

th e me r ci ful, who gave me a chan ce a nd e no ug h

po wer to wri te th is r ep or t. I w ant to expr ess my

g rati tud e an d th an ks to t he Zon al Hea d Mr. T ufail

Ahm ad C h. , Mr . Ish faq Ab basi D ep uty Ma na ge r PHS

an d spe ciall y M r. Im tiaz Ali for e na bli ng me t o

de vote p ar t t hei r pr eci ous tim e in th e pr ese nt atio n

ac kn owle dge w ith d ee p g rati tud e an d in valuable

hel p e xte nd ed t o me by my r esp ect ed t ea cher s an d

fr ien ds. I am es pe ciall y g ratef ul to M r. Nazik

Hussian f or his enc ou r a geme nt a nd g uid an ce to

co mple te t his rep or t.

All t he addi tion al typin g w as ele gan tl y

ef fect ed by M r. Sh oib A kba r, who sho wed

co nside r able c r upt og r aphic al e xp er tise, not to

me ntio n imme nse pa ti enc e, in ma king som e sense

ou t my un tidy an d mu ch ann ot ated scrip ts.

To all th ese I ca n onl y say - T han k You. I ho pe

tim e and ef for ts th ey most g en er ousl y g ave.

DEPARTMENT OF MANAGEMENT SCIENCES IUB

UB AID -UR -RA HM AN .

1- Company and it's Int r oduction.

2- Mission and Objectiv es.

3- Or ganiza tional Str uctur e.

DEPARTMENT OF MANAGEMENT SCIENCES IUB

7- Customer and P r oducts.

9- Supplementa r y Contr acts.

10- Basic Salar y and Gr ading.

11- Calcula tions.

12- Mar keting Channel.

13- Selling Pr ocess.

14- Mana gment St r eta gies.

15- SW OT Anal ys is.