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Most students of Institute of Business &2vfanagement Sciences (LB.MS) prefer financial

institutes to other Institutions for doing their internships. It has many reasons. Internships
in financial institutes help them to become fully conversant with the practice of finance it
also helps them to identify areas where theory differs from practical work... This urged
me to work in financial institutes that enjoy good reputation. I decided to join NADRA.
Internship e at NADRA Peshawar zone was a fine experience and helped me in many
ways to (earn.

NADRA has been playing active role in the financial sector. In early 70 Govt. of Pakistan
took the decision to nationalize the insurance sector and establish a state owned .
NADRA as it stands today is with out any doubt the leading National in the country. Its
branches are spread all across the country and are successfully operating in all cities of
Pakistan where commeitial activities are in full swing. Foreign correspoiulence. is a
important area in modern insurance sector and NADRA. Has foreign correspondence
spread all over the world, branches spread all over the world the corporation also tahe
advantage from the I.T. And launches its own web sites.

I ta& this opportunity to thank my friends and colleagues who helped me one way or the
other in the completion of this report. I whisk to thank Mr. Shabbier Aftmed, Mr.
Sherduffah. Khan (Asst. Manger), Mr. Saeed Kftan, Mr. Adnan, Mr.Zubair,Mr Umera
Khan Private Secretary to Zonal head,. Secretariat Staff Officer.Mr. Sayeed 7Aid Ali
Shaft, Mohammed Trig Deputy Manager B& Taj Raeese Khattak Inc harge (S Kfturshed
A(ain, Mohammed ibraftitn Deputy Manager Agency Office, KakaM Kamran Marwat
and all other employees including area manager marketing. Jan Mohammed and Mr.
Sultan Mekinood (S.G, Field Workers Federation,, Pakistan). They really helped me
during the course of my internship and report writing. I also tahe this opportunity to thank
my teachers Prof. ShahDin Khattak (LBMS) Sir.Attaul(aft AbLd Usjnan, Sir Skujja
Aftmad (LE.R. Peshawar University) for their support, they really helped me during the
course of study in the university,
I am veiy grateful to my advisor Mr.Moh med Asif Kftan Deputy Director Accounts
Food Department Govt. N.W.F1’, for their patience and guidance.. With out of his
support this report would not have reached completion stage.

Atta Ur Rekinan

April 2001
• A/C Accounts

• A.M Area manager

• AM Assistant Manager

• AS Assistant superintendent

• ACS Associate of customer service

•. AGM Assistant general manager

• APFWA All Paldstan field workers association

• B&A Budget and account

• Dy.G.M Deputy general manager

• E.O Executive officer

• FPR First premium report

• FYP First Year Premium

• G.M General Manager

• GP Group Premium

• ILR.D Euman Resource Department

• J.PC.O Jounlur Pc Operator

• J.T.O Junior telephone operator

• L.O Left operator

• LIMRA Life insurance marketing research association

• M Manager

• N National coinsurance scheme

• N.LF National insurance fund

• N.Q Naib qasid

• O.A Office assistant

• P&GS Personal and general services

• P.LC Pakistan

• PC.O Personal computer operator

• PES Policyholders’ services

• RP Renewal premium

• S.G Senior guard

• S.M Sales Manager

• S.O Sales Officer

• S.OA Senior office assistant

• S.PC.O Senior Pc operator

• S.Q Senior qasid

• S.R Sales Reporter

• S.ES Senior record softer

• S.T.O Senior telephone operator


• SWOT Strength weaknesses opportunity and threat

• T.O Telephone operator

• TP Total premium

• Y2K Year 2000


Report writing is quit easy for those whose are but aware of the technicalities and
complication involved in the process of writing and completion of report the decision to
write report on NADRA one of the leading of the country proves to be vital as it helped
in many ways to understand the working of NADRA

A good report has the quality to get attention of readers .it involves less traditional styles
of writing and offers readers a source of information and prediction which are presented
in thoroughly professional way. This report consists of seven chapters for the sake of
convenience I have placed the introduction in first chapters that includes the history of
insurance in general and categories of insurance also a touch to the history of life
insurance in Pakistan. Chapter 2and 3 mainly comprise of relevant information about
NADRA. Comprehensive decisions are presented on various aspect o NADRA in these
chapters. In chapter 4 and 5 consist of relevant information about the marketing and other
Functional department of NADRA while in chapter 6 relates to the policy holders service
of NADRA and the last chapter consist of the analysis and finding.




Insurance In Prospective:

There is an old saying Rome was not built in a day. There is no doubt about its truth .the
saying relates to the historical development, it also relates to the development of any
institutions in any country.

In case we look around we will find that various kinds of insurance companies are now
functioning. These companies are catering individual and industrial needs of all the
countries, which include the highly developed and industrialized countries as well as less
developed countries

When we talk of the great scientific development and invention insurance as it stand to
day is also a wonder of the world The insurance industry as it exist today is the product of
a number of centuries as is not developed any particular period its history is very old

The word “insurance” can be defined in many ways

“Insurance is a system under which the insurer, for a consideration usually agreed upon
in advance, promises to reimburse the insured”


“to render services to the insured in the event that certain accidental occurrences result
in losses during a given period.”

It is nothing but a method of coping with uncertain risks

In simple words it means, “Pooling of resources in a jointly owned funds with the
purpose of reducing individual burden”

According to others it is a “collective pooling of money to be paid out to any of

contributor in case the event of loss cementing from a defined disaster or calamity”

Categories of insurance:

Insurance is broadly divided into two categories General insurance and life insurance
Marine, fire, motors, cash in safe the examples of general insurance, which covers
material posses and used by a person for his comforts and well being

While group and individual insurance are the examples of life insurance. While the
invention of automobiles early this century a new clause motor was developed by the
insurance industry to provide insurance coverage for automobiles, which includes such
clauses as accidental insurance

From the early days of civilization man have formed societies as whose members
promised to help each other in the event of misfortune.

As early as 900BC the merchants of the Rhodes islands in the Mediterranean agree to
share certain risks among themselves The history of life insurance dates back to as early
as 1500’s Fire insurance as early as 2 half of l6 century while the concept of Accident
insurance was develop in England in the I 800,s when in 1840 the guarantee society was
formed to insure employers against embezzlement by their employees. The British
become principal marine insurer when Sir royal exchange in England in 1 570 to transit
the marine insurance.

Modern Insurance

With the passage of time and scope of insurance expended. In order to survive in the
competitive environment insurance companies offering many services that were not even
perceived by its pioneers. Insurance in its modern structure stated in England when
Lloyds stated insurance business.

Insurance in the modern sense --- where insurers collect small premiums from their
policy holders, pay claims them who had incurred losses and made a profit for taking the
risk after deducting business expenses.

Life insurance however gradually commenced differing altogether from other classes of
insurance the history of life insurance dates back to as early as 1500’s when the brilliant
idea was conceived by an individual by the name called LLOYDS in a coffee shop on the
bank of river Thames.

Over the year various sophisticated forms of insurance contract have been evolved. But
the basic concept is the same i.e. collective pooling of resources in jointly owned fund
with the purpose of rendering individual burden from its modest beginning in a 17th
century coffee house in London today.

It is one of the worlds leading insurance market in which over 130 business compete and
cooperate .in Pakistan insurance is the second largest service industry.

Importance of Insurance:

Now a days no part of our life’s remain untouched to day by insurance though many of us
not realize it .The imported finish goods that we buy from the market; the raw materials
and semi finished goods use in our local industry are all insured in every stage of its
shipment. This is also true for all exports as one export some one else imports

Insurance to day permits all economic activities, The trans-global movement of all
marine and air cargoes require mandatory marine and flight insurance, fire coverage of
properties and the content within health and life insurance, insurance of all types of
vehicles and also such insurance as against unemployment or that of certain body parts
just proves the importance of it in all human activities.

Life insurance provide protection to the dependent of bread winner while non life
insurance cover material possessed and used by a person for his personal comfort and
well being.

History of insurance in Pakistan

At the time of independence Pakistan inherit a total of 5 indigenous insurance companies

and 77 foreign companies. Realizing the importance of promoting Pakistani companies,
Pakistan was established in1952. 1955 national co insurance ,scheme (NCS) was
introduced with the help of Pakistani insurer and small companies, to retain profit with in
the country and to present effective and powerful competition to the foreign companies,
this help local companies to grow both in term of number as well as financial and
business progress .the total number of foreign companies declined to 25 in 1971 from
1957, while the premium under NCS increased from 600000 to Rs 29million during the
same period. Consequently up on the government policy of nationalization, NCS was
converted into national insurance fund (NIF) in July 1973 and later to Pakistan (P in
1976 to under write the property and interest of the public sector only. As a result of
nationalization of life insurance and creation of NADRA , (NADRA). The private sector
was confined to non-life insurance business only.



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N.W.F.P. Agricultural University Peshawar

State Lift

NADRA was emerged after the fall of Dhaka. In 1972 it was nationalized under
nationalization order. All those companies which were operating insurance business were
merged and life insurance business was separated from general insurance, eastern federal
union, commercial union, adamjee, American life insurance and some other companies
which were operating also in east Pakistan were given the licensed for general insurance,
while NADRA was granted the license for life insurance. NADRA insurance since its
inception up

till now has almost 5 million policyholders and has almost a life fund of Rs 6.5 billions,
with assets of Rs 100 billions.

NADRA is working for the well being of the people of Pakistan by giving them the life
insurance cover, and by thus stressing for the betterment of the economy of the country. .
In Pakistan, life insurance remained under private sector till nationalization in 1972,
when NADRA was established by mergmg 32 private companies Since then it has gone
through various phases of development.

• Taking of management of Life Insurance Companies and

appointment of Trustees March 19th 1972

• Establishment of NADRA and formation of

‘A’ ‘B’ and ‘C’ Bema Units 1st Novcmbcr /9

• Introduction of Lower Premium Rates on New policies

1st November 1972

• Reduction in Premium rate of Policies issued by defunct Insurance

Companies 1st January, 1973

• Merger of Units and formation of Zones 1St October 1975

• Establishment Branch Office in Dubai July 1978

• Establishment of an Agency Office in Kuwait May 1983

• Establishment of Multan Zone 1st October 1985

• Establishment of Faisalabad Zone 1st March 1986

• Establishment of Quetta Zone 1st May 1986

• Establishment of Gujranwala Zone 1st July 1986

• Establishment of Sukkar Zone 1st April 1990



Presently, the basic structure of the basic structure of the Corporation consists of Zonal
Offices ‘in all-important towns, Regional Offices and a Principal Office The Zonal
Offices deal exclusively with the sales and marketing of policies underwriting of Life
Insurance Policies and the policyholder’s services. Regional Offices (South, North,
Central and Multan) each headed by Regional Chief who supervises business activities of
the zones in their Region effectively and the Principal Office, based at Karachi, is
responsible for activities such as Investment, Advertising, Sales Promotion, Real Estate,
Actuarial and International Operations etc

The Chief Executive of the Corporation is Chairman, who is presently assisted by three
Executive Directors.


In order to develop or restricts a company. Strategic decision makers must determines its
basic goal, philosophies that shapes the strategic posture if the firm .the out comes of this
task known as companies mission provided the basis for a culture that will guide the
future action .it is the purpose for which the organization exist .it reveals the image that
company seeks to project, reflect the companies self
concept. When systematically and comprehensively develop a firms mission statement
can serves s invaluable tools in directing the formulation and implementation of strategy

NADRA Mission Statement

“To remain the leading insurer in the country by meeting their commitments to there
valued policyholders and the nation.”


It is apparent that an organization came into being to serve some purpose it is the function
of management to clarify, architect, implement in and in large measure to define the
purpose for an organization ‘s existence. This is done with establishments of the

The ‘main objectives of NADRA are given

• To run life insurance business on sound lines

• To provide more efficient service to the policyholders

• To maximize the return of 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 effluent
sections of society to the common man in towns and villages

• To use the policyholders’ fund in the wider interest of the community


• It is an important tool to analysis the overall situation in which an organization

Is conducting its affair. Each issue remains relevant and useful for corporate strategy

Adequate financial resources

Capable top management

competitive skills of employees

Acknowledge market leader

Better advertising campaigns

Proven management

Better use of IT

Adequate human resources

Good well

Govt security


I turnover of field force

2 increasingrateOflsurrënder :

3 economic conditions

4 Less awareness of mass

5 Weak niarketnig efforts


1 iat$ctøt

2) Diversification


4) innovations

5 introductions of new pohcie

1) New COmpetitors :..

2) Recession in economies

3) Changing customer needs



Strength and weaknesses arise from the internal environment prevailing in the
organization. These factors are contributable to a greater extent.. This analysis has been
made after careful observation. Regarding the strength of NADRA, it is enjoys huge
resources .an other important factor that has remained strength of NADRA, over the year
is its highly competent top management employees of NADRA are well equipped and
enjoys an edge over their competitors, due to their efficient service and useful service s
NADRA has been regarded the market leader in the financial as well as insurance sector

If NADRA over their weaknesses it becomes one of the best insurance company not in
the country only in Pakistan but in the world level, The deregulation and privatization of
life insurance provide a opportunity as well as threat for NADRA the entry of private
sector in to life insurance provide an opportunity to the management of NADRA that the
prove their self as the market leader





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Departmentation have become a normal practice and it exist In every public and public
sector either commercial or non commercial, big or small it takes a vital Importance in
every organization Insurance companies to day offer many services to its policyholders
there fore separate departments have been established for each services to facilitate the
work of employees and get help customer to Identify where and to which department he
has to go. Departmentatlon In NADRA is very systematic it has enormously improved its
performance. There are types department In NADRA Peshawar zone each section Is
equipped with latest technology and skilled personnel it help to avoid delay facilitates
prompt services to the customer

NADRA has the following eight departments:

1) Sales promotion and marketing

2) Agency administration

3) New business department

4) Policy holder services (PHS)

5) Budget and accounts

6) Human resource development

7) Personal and general services

8) Computer department

9) Internal audit

1O)ReaI estate

In each department of stateilfe there are of a number of peoples are

working there

Tb there are some rules and regulation, which are given below

And the wage and salary administration of deferent category



The NADRA of Pakistan has framed their own Service Rules under article 49 of
NADRA Insurance Notification order of 1972.


1. The Board may delegate any powers vested in it by these regulations to the Chairman
of the Executive Directors.

2- The Chairman or the executive Directors may with the prior approval of the Board
delegate any power rested in them by these

• regulations to any of the officer subordinate to them.





ct to such general and specified directions the chairman may give from time to time

a) Appolntments Appointments to all posts in category A & B are made In zone by the
Zonal Heads and in the Principal Office by the Executive Director (Administration) and

b) Appointments to all posts In corporation In category C & D are made by Executive

Director Administration.
c) AU appointments are made on the recommendation of Selection Committee
constituted by the appointing authority concern the purpose

All appointment are made on minimum pay scale, the qualification and experience of the
post standing of the person so, but the appointment authority can give a higher scale if a
person have higher qualification No person can be appointed to a post unless he has been
certified by a medical officer specified in this behalf by the corporation to be physically
fit for service. The certificate will as prescribed form.

The employee of the corporation must be a citizen of Pakistan, but if the corporation
needs the service of any out sider, the approval of the Board In Is necessary.



rd may lay down qualification and experience for appointments to ous posts in
corporation from time to time

e minimum age for entry into corporation service shall be 18 years

m the maximum age shall be as follow:

1. For appointments in Grade I to 6 25 years

2. For appointments in Grade 7 to 10 35 years

3. For appointments in Grade 11 & above 45 years

The BOARD can relax the minimum age limit in suitable case for the purpose. The
reasons must be in written:


All employees except those appointed on contract or on deputation or on special term or

on temporary basis shall on appointment be placed on probation for a period of six
months The appointment authority may at his discretion extend the period of any
employee’s probation, but It shall not be extended by more than
Further period of three months without notice If an employee appointed on probation
show a unsatisfactory performance during his probation, the appointing authority may
terminate his service.



Board may lay down qualification and experience for appointments to various posts In
corporation from time to time.

The minimum age for entry into corporatio.n service shall be 18 years and the maximum
age shall be as follow:

1. For appointments In Grade I to 6 25 years

2. For appointments in Grade 7 to 10 35 years

3. For appointments in Grade 11 & above 45 years.

The BOARD can relax the minimum age limit in suitable case for the purpose. The
reasons must be n written:


All employees except those appointed on, contract or on cfepucaci’on or on special term
or on temporary basis shall on appointment be placed on probation for a period of six
months. The appointment authority may at his discretion extend the period of any
employee’s probation, but it shall not be extended by more than

Further period of three months without notice. If an employee appointed on probation

show a unsatisfactory performance during his probation, the appointing authority may
terminate his service.



On satisfactory completion of period of probation whether initial or extended the

appointing authority may confirm an employee by an order in writing.

• Extension of Temporary Appointments

Appointments on temporary basis or any subsequent extension of such appointment shall
not entitle an employee by to an extension or further extension of the same or to


1) Annual Increment In a pay scale shall accrue to an employee on the 1st January each
year provided the employee has completed on that date at least six months service in the
said pay scale. In case of an employee whose service on 1 St January in a pay scale is less
than six months the increment hall occur on 1st January of the next following year.

Subject to an employee service being satIsfactory, the increment shall be granted to him
on the date of accrual as a fore said under the order of the officer designated in this
behalf. The power to with held or defers increment for reason of inefficiency shall vest



_____ in the authority competent to make appointments in the grade to which the
employees belong


! On promotion to a grade the pay of an employee shall be fixed in the pay scale of that
grade at the stage next above his pay before promotion


1) The superannuating for the employees In general is 60 years. However the authorities
can employee a person on contract basis beyond the age of sixty years. However the
authorities can employee a person on contract basis beyond the age of sixty years.

2) Resignation:
A continued employee in categor>’ A or B can resign from service of the
CORPORATION by giving one-month notice in writing. A confirmed employee In
category C or D may resigned from service of the corporation by giving three months
notice in writing. The resignation shall become effective on expir of the said period of
notice. However no resignation shall become effective during the pungency of any
disciplinary proceeding against an employee



. The employee shall have an option to surrender the corporation at

any time during the continuance of the notice sum equal of his pay for unexposed period
of notice in which the case of resignation

shall become effective on the. date of such payment provided further that the appointing
authority with the unexposed period of

notice and farege any payment in lieu thereof and accept the resignation not with standing
the pungency of any disciplinary

proceeding against the employee where upon the service of the F employee shall stand

3) Unless the resignation become effective in one of the ways mentioned herein the
employees, the employee shall not absent

himself from duty without leave of absence previously obtained from the corporation. On
willful contravention of this provision, the

employee shall forefeet the corppration an amount equal to his pay for the unexplored
period of notice and may also be liable to


4) The employees who is on probation or has been employed on a temporary basis may
resign his service In the corporation at 7
days notice The resignation shall not become effective unless accepted by appointing
authority, on such acceptance the service of such employee shall stand discontinued.



I) The appointing authorIty can terminate the services of a confirmed employee by giving
him due notice in writing without assigning any reason The notIce period is one month in
respect of employee, category A & B and period of three months In respect of employees
in category C & D

The services of a temporary employee can be terminated by a notice of 7 days in writing

with out assigning any reason The services of an employee who has absented himself
from duty unauthority for more than ten (10) days may be terminated without any notice
or compensation


An employee who

a) Commit breach of rules, regulations or order of the corporation or

b) Commit breach of discipline t

c) Display negiigence or Inefficiency or

d) Commit or assist in committing acts of misappropriation or

embezzlement of funds, which belongs to or on meant to belong

to the corporation.


e) Is convicted of an offence involving moral peptide

f) Is guilty of any super misconduct shall be liable to one or more of the following

I) Censure: With holding of Increment or promotion for a specified period not exceeding
one year.
ii) Reduction to a lower post or to a lower stage in a pay scale.

iii) Dismissal without payment without any compensation in lieu of notice, without
prejudice to die generality of the terms the following acts and commission shall be treated
as misconduct:

I) Wiliful in subordination or disobedience whether alone or in combination with other to

any order of the superior.

2) Theft, fraud or dishonesty in connection with corporation property.

3) Willful damage to or loss of corporation goods or property.

4) Taking or giving bribes at any illegal gratification.

5) Habitual absences without leave for more than 10 days.

6) Riotous or disorderly behavior during working hours in office premises or any act of

7) Making false or miss-leading statements.

8) MalIngering


9) Striking or inciting other to strike In contravention of the provisions of any law rule
having the force of law.

10) Go siaw

11) TemperIng with record.


The appointing authority, in the case of an employee is competent to

award punishment. For tile punishment of dismissal the following

procedure shall be compulsory:

1. A charge sheet along with a statement of allegation leveled against the employee shall
be served on him while serving the charge sheet the employee hall be given reasonable
time not being less than seven days to explain his position and br produce any evidence in
his defense. He will also be allowed to be heard in person, if he wishes so.

2. An Inquiry officer shall be appointed to examine the defense so offered by accused and
to give a report their on indicating whether or not the charges made against the employee
are established.

The report of Inquiry officer must be submitted to the competent authority, which may
accept or rejed or for reasons to be recorded in


writing order a fresh Inquiry on the receipt of final report inquiry to competent authority
shall give his decision.

Provided where the appointing authority happens to be lower than chairman, Executive
Director, Zonal Head as the case may be shall be obtained before passing an order of


a) Appointed on probation

b) Appointed otherwise than under contract to held temporary appointments, on the

expire of period of appointment

c) Engaged under contract in accordance with terms of his contract does not amount to
dismissal within meaning of this regulation.


Where for the purpose of conducting an inquiry against an employee the competent
authority if consider it necessary, can suspend the employee- however the suspension
period in the case of employees of category, A or B, is fifteen days.The order of
suspension shall be In writing and shall take effect immediately or being sent to the
employee by hand or by registered post at his last known address during the period of
suspension. The employee is paid a subsistence allowance equal to 50% of his pay. If the
employee are not found

guilty The suspension penod will be treated as duty He will be allowed full amount, as he
was drawing before his suspension


An employee has the right of appeal or making an application for revision or review
against any of the punishment imposed under regulation NO. 30.

The review applications can be addressed to the following authorities according to

category of employees.

a) In the case of employees in category ‘D to the Board Which shall the same to the
standing committee of the three Directors

including the Chairman The committee shall consider the application and submit it
recommendations to the Board for such final order as the latter may deem fit to make.

b) In the case of other employees the authority next higher to that which passed the order
In question provided that in every case, where the employee concern so desire he will
have a right to be heard in person before the authority competent to decide the application
or appeal (Standing Committee) in the case of category ‘D’ employees as the case may be

The appeal and revision application must be supported with the following documents.


a) It shall contain all materials, statements and grounds relied upon and shall be
completed in all respect, it self

b) It shall specify the relief desired.





Grade Designation pay scale

1 N.OJguards/S.guards 1411-83-3154
2 Qasld/S,G/S.S.G/D river /R.S/L.O 1615-98-3526

3 S.OJS.R.S/S.driver 1689-93-3642

4 0. asst/Typest/J.T.O/J. PC.0 1860-108-4128

5 S.0 A/T.0/Pc 01922-121-4463

6 A.S/S.TI.0/S.PC.O 2422-126-5278

7 Superintendent 3001-263-8604


8 E.0 3051-239-8191

9 A.M 4362-335-10059

10 Dy.M 5454-417-11709


11 M 7829-431-14290

12 A.G.M 7861-435-14392

13 Dy.G.M 9142-452-15922

14 G.M 10659-570-18067



Steno-typist 2106-118-4584

Stenographer 2497-163-5920

Private Secretary 2679-229-7488



1) Asstt, Electrician, Asstt. Mechanic 1469-81-3170

Asstt. Mason, Asstt. Carpenter Asstt. Plumber,

Asstt. Painter, Asstt. Quantity Surveyor

2) ElectrIcian, Mechanic, Plumber, Carpenter, Painter, Quantity Surveyor, Garage


Security Guard, I/C Mason 1671-105-3876


3) Electrical Supervisor, Sr. Carpenter,

Senior Painter, Civil Supervisor,

Sr. Quabtity surveyor, Mechanical 2116-138-5014

4) Supervisor, Sr. Plumber, Building Caretaker,

Lift Supervisor, Building SupervIsor 2497-163-5920



a)The conveyance allowance has been enhanced to Rs. 450/- per month

b) The employees who owns possesses a scooter/Motorcycle, registered in their names

and which I under their use, would be paid scooter/Motorcycle Maintenance Allowance
at the rate of Rs. 600/- per month.


a) Technical Allowance to the Telephone/Telex/Fax Operators, Franking,

Machine/AdremaOperators,AssistantMechanical/Electricia ns, Photostat Machine
Operators, GestetnerOperators, Lift Operators, Assistant Lift Mechanics Rs. 100/-per

b) Technical Allowance to Central Unit (CPU) Operators In Grade-4 to 7 will Rs. 300 per



Out-door Duty Allowance to employees In grade 1 to 3 will be Rs. 150/-per month. Cycle
stand charges at the rate of R. 50/- per month shall continue to be reimbursed.


The Children Education Relief/Education Allowance shall be paid to an employee at a

uniform rate of Rs. 300/- per month per child for all children either school/college going
or receiving religious education, for up to a maximum of four children and subject to a
maximum of Rs. 1200/- per month.


All employees who are provided with liveries and uniforms I.e.

Drivers, Quasids, Naib Quasids, Security Guards, Gardeners,

Record Sorters, Gestetner

Operators, Sanitary Workers, Lift man, Subedars (Security),

Electricians, Mechanics, Carpenters and Painters, shall be paid

Washing allowance © Rs. 120/-per month.


The Cash Handling Allowance shall be paid to the employees in a manner stated below at
the following rates:


Employees in Grade 1 to 3 Rs. 250/-p.m instead of RS, 200 p.m. Employees in Grade 4 to
7 RS. 350/-p,m. instead of Rs. 300 p.m.

I) dealing in cash upto RS. 0.5 million p.a.

ii) Dealing In cash for more than Rs. 0,5 million

RS. 450/-p.m. instead of RS, 300 p.m. per annum

lii) Dealing In cash, at cash counters for Rs- 600/-p.m. Collection of premiums up to
Rupees one million per annum

lv) Dealing in cash, at cash counters for Rs. 750/-p.m.instead of Rs,500/p.m.

collection of premiums of more than Rupees one million per annum

v) Dealing with Insurance policy stamps, Rs- 250/-p.m. Insurance fee stamps and revenue
stamps etc.


The employees in grade 1 to 7, SS-I to SS III and MN-i to MN III post at prescribed hill
stations which are exposed to extreme cold climate will be paid winter allowance @ Rs.
500 per month from November, to April each year.



1. House Maintenance subsidy

2. Effective from 1.1.1997 has maintenance subsidy shall be paid © 15% of pay

3. Utility A subsidy at the rate of Rs. 300 per month shall be paid on account utility


1. House Building Loan

An additional budget of Rs. 20 million has been allocated, on all

Pakistan basis, for the purpose of granting house building loan.

2. BIcycle/Motor Cycle/Scooter/Advance

I. For Motor-cycle/scooter from Rs. 40,000/- to Rs. 50.000/- or Natural cost which over
in less.

i For bicycle from Rs. 2500/- to Rs. 3500/- or actual cost which ever Is less.


The rate of daily allowance shall be as under Pay upto

Rs. 2000/-

Rs, 220/-per day From Rs. 2001 to 3500/-


Rs. 280/- per day From Rs. 3501/ and above RS.

360 1/- per day

ii) In case an employee does not in the hote1 and does not claim expenses in this regard,
such employee can claim additional 50% of daily allowance in lieu of hotel expenses.
However, the expenses on account of hotel accommodation shall be paid to employee ©
1 1/2 times or 3 tImes of rate of Daily Allowance stated above for different cItIes
respectively as prescribed for officer


- The limit of Funeral Expenses has been increased from Rs. 3000/- to Rs, 5000- for the
employees in Grade 1 to 7, as 111 and MN-I to MN-I


A) Outdoor Treatment/Cost of Medicine

I) Rs. 6000/- per annum for unmarried employees

ii) Rs. 7800/- pr annum for married employees

B) Out of Hospital Emergency/Specialist Treatment

I) Ps. 2000/- for single employee

Ii) Rs. 4000/- for married employee


C) Confinement For Delivery at Residence

The rate of confinement for delivery at residence has been increased from Rs. 1500 to Rs.
2000/- per delivery upto a maximum of 5 deliveries.

D) Special Medical Relief

Hepatitis-C has also been included In the list of specified chronic diseases

for allowing special medical relief.

E) Dental Treatment
The consultation fee for dental treatment shalt be counted for against out of

Hospital Emergency/Special treatment

F) Provision For Wheel Chair

A wheel chair shall be allowed only to the disable employees,

G) Provision of Artificial Limbs

Artificial limbs shall be provided to the disabled employees in case to case basis




8c 1’4 Ic I 14


N.W.F.P. Agricultural University Peshawar


The functions of this division cover research and planning field manpower development,
advertising and promotion and agency management. Corporation’s growth and financial
stability largely depend on the operational efficiency of this division to achieve adequate
annual growth of new business.

The principal office directly controls this department, all advertisement and material is
made by this department and circulated to all zonal and regional offices. It also provide
add to electronic and print media. A director marketing directly controls this department
and a G.manager, deputy general managers and other staff assist him to run the affairs of
this department.

During the year 1998-99, in addition to financial security and stability with a gainful
application of resources, NADRA provided life insurance coverage to 187,457
individuals a.nd procured Rs. 1,275.4 million as first year premium (within Pakistan).
Educated youth of the country are offered economic benefits of life insurance selling.
During the year 21,367 new people were inducted in to the profession as sales
representatives. A total number of 32,378 sales representatives, 7,465 sales officers and
3,147 managers actively participated during the year In the procurement of our Individual
life insurance business.



a) Market Research

b)Product Development c) Planning


(a) Planning and designing of Manpower Development strategy

(b) Programming and Evaluation


(a) Sales promotion and publications (b) Advertising and publicity

(b) Press Relations


a) Evaluations

(b) Promotion & Development

(c) Motivation

Marketing department of NADRA have more than 100000 well trained and professional
field force as one of the biggest marketing department of any organization in the
country .The agency department keep the record of all the field staff in the zonal office,
sector offices issues code numbers to field workers and maintain their all business record.
It also deals with licensing authority and all


licenses of the field staff are send and received through this department. This department
is controlled by the zonal head and run through a manager with the help of other
supporting staff. It also keeps the record of promotion of the field workers and other
related matters of the field force. The sale representatives (S.R), play a key role.
Consequently upon his selection, the SR received some basic training in sale
management marketing, and on the job training the SR works under the supervision and
guidance of sale officer. After two years, service as sale representative he is eligible for
promotion, if fulfil other condition necessary for promotion.

+ Conditions for promotion

A). From SR to S.O

I) Must have secured minimum P.s. 75000/- FYP during immediate preceding two

Ii) Calendar year, but in any one calendar year, the FYP should not be less than Rs.

iii) Must have at least 20 policies in force on different lives

Iv) Must have achieved a minimum second year persistency of 70% In the Immediate
preceding year

v) Must have Achieved a minimum renewal persistency of 70% In the immediate

preceding year


B) From SO. to S.M

The sales officer must have secured minimum Rs. 250000/- FYP In the immediate
preceding 2 calendar years, but the FYP in any one year must not be less than Rs.

I) Must have minimum second year persistency of 70% In the immediate preceding year.

ii) Must have at least 8 policies in force in his organization.

lii) Must have minimum renewal persistency of 90% in the Immediate preceding year.

There are two kinds of premiums the FYP and renewals the FYP.the first year Premium
Is the new business of the corporation In the NADRA Insurance, all new business Is
scrutinized by the under writers of the new business.the new business department deals in
New proposal and after a thorough checking a policy proposal is accepted and an FPR
(first premium receipt) is issued to the policyholder. It also after Issuing FPR to the
customer Issues a commission copy to the A/C department. It also maintains the record of
all the field force of the zone. During 1998-99 insurance coverage to 187,457 individuals
and procured Rs. 1,275.4 million as first year premium (within Pakistan) had been
achieved through this department.




L.J r1 r I J A



N.W.F.P. Agricultural University Peshawar

Human Resource development:

HRD plays a key role in any organization it is busy to impart skill and knowledge to the
field force it hold workshop, seminars and meeting to share the knowledge of those
dignitaries with other members of the organization HRD has hired many competent
people who are busy day night to solve the problems of field workers This dept arranges
training programmes for field force market orientation programmes for sales managers
and other useful training programmes for all field workers They also educate
management about the new changes in the working of NADRA .the dept is controlled by
a director and general manager

There are also academies are working under this dept at regional level and they also
uphold the knowledge of instructor who are working in the HRD human resources
development division, through Its 26 training centers at zonal level and 3 training
academies located at Karachi, Lahore and Rawalplndl, trained 20,061 employees and
field personal by conducting 1,442 courses and seminars ranging from basic training
courses to advanced courses like agent development programmes, management
orientation study course and marketing management series of life Insurance marketing
and research association (LIMRA), USA Some new courses/programmes


were also Introduced both for office and field staff e.g. Time management, delegation
skill, accounting functions, legal aspects of life Insurance, investment securities plus
returns, customer service, underwriting workshop, seminar on new Insurance plan, PHS
underwriting, claims and how to conduct Inquiries, etc. these courses were held and
conducted at principal office. In addition, officers and staff were nominated for short
courses ranging from 3 to 5 days to different institutions like PakIstan institute of
management, employers federation of Pakistan, national institute of public
administration, institutes of chartered/management of accountants of Pakistan, etc.
During the year, a total number of 31 students completed FLMI, 10 associate of customer
services (ACS) and 8 associate of agency administration (AIAA) specialized courses. Six
books were reprinted during 1999.

A total number of 1927 students/employees completed different computer training

programmes at NADRA computer training centers situated at kasur, jhang, shikarpur and

Human Resources Development Division, through its 27 Training Centers and three
Training Academies at Karachi, Lahore and Rawalpindi trained 20,986 employees and
field personnel by conducting 1,562 courses and seminars ranging from Basic Courses


to Advance Programs like ADP, MOP, MMS of L1MRA, USA against 1,439 courses
attended by 20,772 partIcipants In 1995. This year, some new and Innovative programs
were introduced both for office and field e.g. Office management, commitment, business
Communication, Synergy for Excellence, Scientific Planning and ISO 9000. Another 260
persons attended computer programs at the Shikarpur, Jhang and Kasur Centres under
Prime Minister’s Literacy Programme. The Division also nominated 63.2 officials to
renowned institutions like PIM< NIPA, Petroman. One officer was nominated to attend a
course in Tokyo, Japan. Out of 1485 who appeared in the FLM1, 943 qualified different
papers, 33 completed FLMI, 943

Budget and accounts:

This dept also plays a vital role In any commercial and noncommercial public or private,
big or small organization finance being the life blood of every organization that is why.
this deptt plays a vital role in NADRA. This deptt is divided In to two sections
commissions, budget & accounts .the deptt is headed by Zonal accountant with the help
of other professional staff .the commission section Is provide services to the field force, it
maintain their records issues commission statements. to the field


force it approves renewals and conceived loan to the staff and

field force

Budget and account section is providing services to workers the corporation it maintains
their records accounts and issue income statement of it also deduct income tax and other
charges from the accounts it distribute salary chicks to the workers This section also
maintain the records of premiums of policyholders

Budget sections of NADRA looks In to future requirements and make planes accordingly

Internal Audit

THE sole responsibility of audit deptt is to carry out regular audit of NADRA accounts.
This Is done in order to Insure that all entries and vouchers are recorded carefully and
accurately. This insures the credibility of NADRA operations

Real Estate: -

Real estate is responsible for maintenance and upkeep of corporation’s real estate assets
including buildings, plots and construction of new building projects throughout the
country. At the time of nationalization of life insurance business in the country in


1972, NADRA had 27 buildings and 12 plots, and the book value of these assets was Rs
125 million

At present NADRA owns 53 commercial buildings, 10 residential buildings and 18 plots

The book value of its assets has reached Rs 2, 708 8 million In 1999, which was Rs 2,
660 3 million in 1998 Gross rental income of real estate for the year 1999 was Rs.329.5
million as against rental incOme of Rs.280.4 million in 1998, registering as increase of
Rs.49.1 million over preceding year’s income.

The following new buildings were completed during the year

1999: -

NADRA building, Hyderabad - phase —H

NADRA building, mirpur khas

NADRA building, larkana

State. life building, Faisalabad

NADRA building, Gujarat

NADRA building, Di khan

The corporation has plans to construct beautiful buildings in all the zonal headquarters
where the corporation has purchased plots. The buildings would be used mainly for
accommodating NADRA’s own offices in these cities.

It Is real estate division’s endeavors to keep Its buildings and assets In very good
condition as these buildings reflect corporation financial strength and give confidence to
the policyholders. Investment in real estate also provides hedge against inflation.

Computerization: -

Computer division has resolved Y2K problem in house on

VA)(/VMS environment at principal office as well as in Unix oracle

environment at computerized zones.

Computer division is in a process to replace environment at principal office from

COBOL to Unix oracle. Software developed in this respect by M/s. cresSoft is under
testing phase. Purchase of new hardware for principal office and six zonal offices Is in





N.W.F.P. Agricultural University Peshawar



Good underwriting is our only mean to e the quality of business being procured for
insurance coverage. In the year 999, strict measures were taken to have good quality
underwriting, which will definitely help us to cope with the increasing trend of surrenders
and early death claims. New policies in respect of individual life business totaling
187,457 were issued for sum assured amounting to Rs.20, 875.9 million, as compared to
last year’s new business figures i.e. 226,646 policies for sum assured ofRs.21, 750.0

Better service

Policyholder’s services Of course necessary and fundamental for carrying good

reputation among policyholders, which helps retaining business and increasing new
business. Besides improving routine

procedures, policyholder’s se counters have been established in majority of the zonal

offices to provide one window service to our valued policyholders. The remaining zones
are in the process of finalizing arrangements for establishment of such counters

Problems being faced

By PHS officials in the zones in providing quality service to the policyholders were
identified. Most of those problems have been solved and resultantly qua]ity of service has
started to improve. Extensive training courses have also been conducted for
PHS/NB/claims personnel to improve quality of service.

After the claimants submit the required documents/evidence, it is the responsibility of the
corporation to settle the claim promptly. During the year under review, the corporation
admitted 5,379 death claims cases and claims amounting to Rs.565.2 million were settled.

During the yearl999, 16,180 policies with sum assured/bonuses totaling Rs.1, 057.8
million matured. NADRA is facing problem while tracing policyholders that have
changed their

correspondence/residential addresses and has not intimated the corporation about the
same Advertisements were published in the newspapers for such policyholders to contact
respective zonal offices of NADRA to get payment of their matured policies This has
helped in reducing the number of outstanding maturity claims.

Policyholder service is one of the most important departments in NADRA insurance.

There are over 5.5 million policyholders insured with NADRA, 1.9 insurance. There are
over 5.5 million policyholders insured with NADRA, 1,9 million individuals and 3.5
million in-group life this deptt provide services to these policyholder. Good underwriting
is the only mean to evaluate the quality of business being procured for insurance
coverage. Better service to policyholders is of course necessary and fundamental for
carrying good reputation among policyholders, which helps retaining business and
increasing new business. Therefore, policyholders’ service counters have been
established in majority of the zonal offices to provide one window service to the valued
policyholders. The

remaining zones are in the process of finahzmg arrangements for establishment of such
counters. During 1999, 6,i8O policies with

sum assured/bonuses totaling Rs.1, 057.8 million inatured. NADRA is facing problem
while tracing policyholders that have changed their correspondence/residential addresses
and have not intimated the corporation about the same. Advertisements were published in
the newspapers for such policyholders to contact respective zonal offices of NADRA to
get payment of their matured policies. This has helped in reducing the number of
outstanding maturity claims.

New business:

NADRA crossed milestone during 1995 by collecting the FYP of Rs 2billion as

compared to rupees 1.2 billion during 1994


In order to provide prompt to policyholder, new zones were established in the far-flung
areas of the country. Special attention is being paid to complaint received from the

In 1995 a chairman complaint cell has been established to effectively attend to complaint
received from policyholders

This department is divided in to four sections.

They are as follows.

> Claim



> Alteration

Each and every section of this department plays an important role and this all comes
under the services of policyholders.


This section is always busy in distributing claims of the policy holders it has own
investigators and it investigates all claims and then recommends that a claim amount may
given to the nominees of the claimants.

It also looks in to all such maturity claims and those policies, which fall, mature all
payment and the claim section of the pohLvhnlder services gives bonuses. . During the
year 1999, the corporation admitted 5,379 death claims cases and claims amounting to Rs
565 2 million were settled


This is also an important section of the PHS. All those police and their owner who does
not want to continue their policies requests and send their applications to PHS surrender
sections. Then the staff of this section scrutinises those applications and issues vouchers
of payment to the clients. After receiving of vouchers the A/C sections issues cheques to
the clients It also issues bonus certificates to the policyholders and keep their record of
polices in computers. Very technical and professional staff is recruited in this section.


Loan section is also very important and busy in calculating and issuing loans to the
policyholders on their policies. All such policies that complete three years acquire
surrender value Loan is granted on every policy according to the surrender value of the
policy according to the new insurance ordinance rate of interest is reduced to 13% per
annum from 15% per annum. It gives the policy holders and extra benefit to get loans and
then repay their out standing amounts to the corporation, while the risk coverage of the
policy holder is infect with in the specified time and due of next premium of the policy.


The alteration deptt is an other important of PHS. All such policies, which require any
alteration for example. Change of nominee, change of address, change of any other thing
in the policy directs their applications to the PHS, alteration section, and the concerned

authorities after altering the iequired thing in the pohcy send their policy documents to
the concerned policyholders

All these sections of PBS are inter link with other sections and professional staff with
trained officer are busy in providing the services to the clients.


This section is an important section and giving an application to the manager PBS can
enforce all such policies, which due lapsed. The under writers of the PHS deptt
scrutinizes the applications and then revive and reinforce lapse policies .if there is any
requirement in the policy the premium is placed in suspense A/C and a provisional
receipt is issued to the client. Policy holder services is the heart of NADRA insurance, all
record of the policies are kept with the PHS deptt and all legal and official letters are
written and send by this deptt.




I E 1 I2 I

c I‘ I

(Es 000)

Equity and liabilities 1997 1998

Share holder’s capital

In terms of articles 13 of the life Insurance

(Nationalization) ordinance 1972

Authorized capital 200000 200000

Subscribed, Called and Paid up capital 100000 100000

(Provided by federal govt.)

Reserve or contingency accounts

General reserve 18808 18808

Exchange Fluctuations Reserve 35806 392008

Balance Of life Insurance Fund

Business with in Pakistan 50730167 55126729

Business outside of Pakistan 279699 332846

Provision for staff Gratuity 33329 94597

Provision against

Loan 3785 2859

flouse property 878 714

Other receivable 13866 6760

Estimate liability in respect

Of outstanding claims, whether 2223440 2498404

Due or intimated

Amount due to other person or bodies )

Carrying on insurance business 19546 39416

Sundry creditors 776104 1507821

Premium and other deposits 242648 269508

Agent balance 232 264 183357

Balance of compensation pay able 591 591

Total liabilities 55034182 60574418



On mortage of property with in Pakistan 1457 583

On stock and share 3340 3340

On Insurance policies 3577130 3927496

On personal securIty 126 126

Other considered good 246019 263183


Pakistan govt securities 30936470 36426642

Quated relizable value4773148 3800731

WAPDA bonds 600000 600000

LT.Kgovt securities 243684 247061

Bonds debentures stock 10000 2861

Term finance certificates 120800 41167577

Other debentures and debenture stock 12231 12231

of companies in corporated in Pakistan

Certificate of investment 1000 1000

Other guaranteed and preference stock 4750 4750

And shares of companies incorporated in Pakistan

Other ordinary stock and shareand debenture stock 12231 12231

of companies in corporated in Pakistan

quoted mkt value 4284197 4442227

Unquoted releasable value 330026 281276

Out of Pakistan quoted - 51339 66682

Holding in subsidiary companies 62950 62952

Less: provision for diminution in value of investment 47246 929239

House property in Pakistan 27622659 3046228

Less accumulated depredation 331698 385912

Agents, Balances 64896 55339

Out standing premium 1391699 1516051

Interest, devedent and rent outstanding 116583 99325

Interest, dividend and rents 1897703 2320385

Amount due from other person or bodies 5734 2736

Sundry debater, advances and deposits 480260 482410

Income tax refundable1200214 1455617


At bank

Ondeposit account 690491 1272740

On current account and In hand 1004214 911511

At call and short notice 155411 114160

In transit 118753 121550

Stock of stationary and print material16192 14480

Real estate maintenance stores in hand 1682 10230

Furniture, fixture, and office equipment’s 168663 164141

Vehicles 23081 13226

Balance of compensation receivable - 56008. 56008

Toal liabilities 55034182 60574418

C i’ 1’s4 P4 I C P4

As The NADRA enjoying a monopoly in the life insurance business. But in the late 90,s
government of Pakistan privatize the life insurance sector as a result foreign and local
companies are inter in to the life insurance sector their for it is very important that the
NADRA positively motivate their employees specially the field force which plays a key
role in the promotion of the business. For the promotions development of the business of
the corporation the following suggestions and recommendation is given;

1) As the field force plays a vital role in the business promotion the fore in decision-
making participation from sales force is important

2) The target which are give to the sales force should be achievable

3) The tangible benefits should be given to the S. R and S.O

4) For the development of insurance sense in the Society a mass campaign can be
launched through different medias, and documentary films.

5) Special Policies must be adopted for government servants, keeping in view their
financial position and grades.

6) Rural areas must be given more attention and saving in these areas should be
mobilized through life Insurance.

7) House wives and female should be motivated for the purpose female

8) Although the corporation has extend more facilities to their staff but the
accommodation is ignored. The corporation has constructed commercial PLAZAS in
various cities of the country. It is suggested that staff columns like, state bank National
Bank, and other Institution of the country for the benefit of the staff.

c c r L.. i..i i c r.

At evident from the annual progress reports and other documents the corporation has
made a progress and development. It has provided a life Security Protection to about 4.00
million person of the country. Apart from this it provides self fmance jobs to thousands of
the countrymen, and mobilized the country, economic and financial resources, and
cemented the national economy. We hope that the corporation will play its important role
in the development of National Economy.


• H .siddiqi asrar practice and law of banking in Pakistan” 5 edition royal book company .

• becenzo, adivid.”Human resource management , 4 edition, John wiley &sons mc, 1983

• Pakistan & Gulf economist Karachi Sep 1997

• Pakistan &gulf economist Karachi Feb 1998

• html
• www. brecoder . corn/insurance html


• www. Pakistaneconomist.corn/rnain. html

• www . altavista . corn/insurance/I ifeinsurance

• ww


• www . yahoo. corn/bus iness&econorny/hystory/i nsurance/genral. html

• Freed luthans” organizational behavior” 3’ edition macgrahill corporation, 1994