We shall guide who strive in our cause to the path leading to us. Surely ALLAH is with those who do well. (AL-ANKABUT).




Dedicated to my beloved country and to the people who devoted their lives for the freedom of this country.




The contribution of the service to the Pakistani economy is increasing at an extra ordinary rate and the present financial services revolution looks certain to reinforce that trend considerably. The context does not claim to exhaustive and the balance must inevitably be open to criticism, but in attempting to give a general insight to the casual inquirer, the needs of those seeking in-depth



The report is long and wordy. functions and techniques of the different departments of State Life Insurance Corporation. UBAID-UR-RAHMAN.105 knowledge within particular areas must inevitably be sacrificed. This report covers a detail and analytical view of the State Life Insurance Corporation. As the title that this report is the essence of the hard working which I have done during my internship tenure. I hope that the report is relatively free of errors and will appreciate if errors are brought to attention. who read it carefully to obtain a real understanding of the basic structures. This report has been written in the hope that it will help anybody. DEPARTMENT OF MANAGEMENT SCIENCES IUB 4 .

in making some sense out my untidy and much annotated scripts. All the additional typing was elegantly effected by Mr. the beneficent and the merciful. not to mention immense patience. I feel it my bounded duty to acknowledge with deep gratitude and invaluable help extended to me by my respected teachers and friends. DEPARTMENT OF MANAGEMENT SCIENCES IUB 5 .105 ACKNOWLEDGMENT. I thank all mighty ALLAH. Imtiaz Ali for enabling me to devote part their precious time in the presentation of this report. I am especially grateful to Mr. Ishfaq Abbasi Deputy Manager PHS and specially Mr. To all these I can only say .Thank You. Mr. I want to express my gratitude and thanks to the Zonal Head Mr. . Nazik Hussian for his encouragement and guidance to complete this report. I hope that the end product is not totally unworthy of the time and efforts they most generously gave. Shoib Akbar. who gave me a chance and enough power to write this report. Tufail Ahmad Ch. who showed considerable cruptographical expertise.

File Movements.Organizational Structure.Divisions. 3. Table of Contents 1. 4. DEPARTMENT OF MANAGEMENT SCIENCES IUB 6 .Company and it's Introduction. 5.Departments. 6.105 UBAID-UR-RAHMAN. 2.Mission and Objectives.

Basic Salary and Grading. 16. 14. 8.Marketing Channel.Ratio Analysis. 17. 12.Customer and Products. DEPARTMENT OF MANAGEMENT SCIENCES IUB 7 .SWOT Analysis. 11.Bonuses. 13.105 7. 10.Competitors.Calculations.Supplementary Contracts. 15.Selling Process. 9.Managment Stretagies.

DEPARTMENT OF MANAGEMENT SCIENCES IUB 8 . State Life in Bahawalpur. State Life in Pakistan. Insurance Companies.105 INTODUCTOIN Insurance. Insurance Evaluation. Life Insurance in Pakistan.

bus ship.105 INTRODUCTION Ins uranc e 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. This idea originated from China and then developed by England and other European countries. earthquakes etc. airplane. inflicting extensive 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. Insurance can be of life for the compensation in case of normal or accidental death or of property like car. etc. In the beginning merchants used to sit together and for certain define amounts. They consequently jointed hand to the way out and thus insurance was found to be the only possible means to save individual from total disaster. floods. insurance provides compensation for the loss to a maximum extent. The perils of the sea however. members used to sign documents accepting their share of risk in the ships or cargo carried. The merchant ships remaining away for months with valuable cargo carried with them the hope of marketing profits upon their safe return. This initial arrangement finally developed to highly skilled and most scientific ways for DEPARTMENT OF MANAGEMENT SCIENCES IUB 9 . His tory of Ins uranc e: The need of sharing losses caused particularly by sea perils was left several hundred-year ago. in case of loss caused by fire.

In life insurance. The of as values the possible placed financial workable on the life for possible a great assessment extant and repercussions solution for anticipated as a result of death. or on the death of the insured person. covering immediate financial and economic losses. on the completion of a definite period. The persons signing in acceptance of their shares are called underwriters. the sum insured. marine insurance automobile insurance etc. In short when a man dies. Life INSURANCE: Life insurance is a contract whereby the insure promises to pay. in such case life insurance takes over the liability and the responsibility of meeting family needs.105 assessment of risk and underwriting and still countries. There is a difference between life insurance and other forms of insurance like fire insurance. in exchange of certain premium. for the family. BENEFITS OF LIFE INSURANCE  Finacial Protection  Necessary Saving  Property Building  Loan Facility DEPARTMENT OF MANAGEMENT SCIENCES IUB 10 . 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 family. are related to maintaining source of income to a maximum possible extant. nevertheless. it is not easy to ascertain with exactness the total impact likely to occur due to the death of the person.

Principal Office: State Life Building No. Pakistan. 1972 Legal status: Autonomous coporation under the control of the ministry of Commerce. of Pakistan. 1972 (Presidential Order X of 1972) Date of incorporation : November 01.9 Dr. Govt. DEPARTMENT OF MANAGEMENT SCIENCES IUB 11 . Ziauddin Road Karachi.105  Eduction and Marriage plan  Income Tax rebate  Retirement Fund STATUE UNDER WHICH CREATED:- Life insurance (Nationalization) order.

” OBJECTIVES OF SLIC Following are the objectives:  To run life insurance business in sound lines. DEPARTMENT OF MANAGEMENT SCIENCES IUB 12 .105  MISSION OF STATE LIFE INSURANCE CORPORATION “To ensure satisfaction of our valued policy holders in processing new business providing after sales services and optimizing returns of life fund through our quality at culture the and to life maintain position leading insurer in Pakistan.

 To widen the and area of it the into efficient man operation available of to life as as the of and insurance large a making of section population from sections in town possible. Muslim and eastern Federal Union transacting life insurance through their Head Office in the ears. History of Life insurance In Pakistan: Before partition.  To make life insurance a more effective means of mobilizing national savings.105  To provide more efficient services to policyholder.  To maximize the return to policyholders by economizing on expenses and increasing the yield on investment. extending more comparatively society villages. The composite insurance company particularly for Muslims was felt by DEPARTMENT OF MANAGEMENT SCIENCES IUB 13 . there were only three major insurance companies named Christian Mutual. to the common  To use th3e policyholders funds in the wider interest of the community. need which for ultimately having a formed Pakistan.

Starting with three units A.. Now including Bahawalpur Zone. Order in March 19. In Pak . Before 1972. insurance Insurance entire to life nationalization in 1972. was business State Corporation liabilities formed as take related and assets they insurance business. life insurance business was nationalized by Govt. it was soon merger into a single corporation.105 some of the eminent Muslim personalities. the there nationalization was a big of companies in competition between companies involved in life insurance business in Pakistan as there were the more than thirty companies Upon offering insurance of life Life to facility.B and C. 1972 DEPARTMENT OF MANAGEMENT SCIENCES IUB 14 . of Muslim was Insurance Company Pakistan established in 1949. there are thirty zone of Stat Life Insurance Corporation are working in different parts of the country with Head Office at Karachi. And Eastern Federal Union Insurance Company was established Muslim in 1932 by the struggle The of those personalities.

units. single into three the name of State Life Insurance Corporation (SLIC) of Pakistan. constituted by merging of one or more as A.B of (A. the had business to 1990 it to decided open private sector insurers. phase a came of nationalization corporation. At present . The nationalized process was completed in two phases. these were handed over to trustee and sub-trustee in accordance to life insurance nationalization order 1972. existence by (November having 1972) units.B insurance and the & C) C life companies. These three units. In first phase (March 19. there are four other life insurers operating in the DEPARTMENT OF MANAGEMENT SCIENCES IUB 15 .105 and in fact this was an important step toward economic development in the history of Pak. named improvement these units business merged were together and converted into zones. has taken over the administration of 32 companies. the Govt. besides SLIC. After this. In the second 1. For were further in Pak. SLIC life has enjoyed till a complete when local monopoly the Govt. 1972).

The state Life Insurance Corporation is reinsured by foreign insurance “Swiss RE” (Switzerland).105 country including two foreign companies. REGIONAL & ZONAL OFFICES DEPARTMENT OF MANAGEMENT SCIENCES IUB 16 .

105 REGIONAL & ZONAL OFFICES Regional Office Zonal Office Lahore (Central) Lahore (Western) LAHORE Region Faisal Abad Sargodha Gurjranwala Sialkot Karachi (Southern) KARACHI Region Karachi (Eastern) Karachi (Central) Hyderabad Mir Pur Khas Larkana Quetta Rawalpindi Mir Pur RAWALPINDI R e g i o n Islamabad Peshawar Abbottabad Swat Gujrat Multan Sahiwal Multan Region DEPARTMENT OF MANAGEMENT SCIENCES IUB Rahim Yar Khan Dear Ghazi Khan Bahawal Pur 17 .

Profitability and DEPARTMENT OF MANAGEMENT SCIENCES IUB 18 .Marketing Department. 2.Agency Adminstration Department.Personal and General Services Department. 4. NEW BUSINESS DEPARTMENT New Business (NB) is considered the soul of Insurance companies.Budget and Accuonts Department. 8.Policy Holder Service Department.Audit Department.105 DEPARMENTS:- 1. 3. 6. 5.New Buisness Department.Human Resources Devolpment Department. 7.

of the business depends on the FUNCTION OF NEW BUSINESS In this department. to perform section different task relating to the acceptance or rejection of risks for life insurance.e. as the name shows.105 survival NB. completion of al columns and then processed by the underwriters depending upon whether they have or been introduced under the medical risk is non-medical scheme. Proposes is a person who applies for the insurance protection. The DEPARTMENT OF MANAGEMENT SCIENCES IUB 19 . new contracts start between proposes and Insurance Company. This department the new is responsible for processing business introduced by the sales force right from receiving a proposal policy has on the counter to the to mailing the It the document various policyholder. the proposal are received and initially is checked in all respects i. Main function of the NB is underwriting.

legality relationship between prospect’s income and sum assure. the prospects own statement and filed officers or sales representative’s reports have more importance. DEPARTMENT OF MANAGEMENT SCIENCES IUB 20 . prospect. • Field officer’s or sale representatives report form. and family social occupation. • Previous life insurance history of the prospect if any.e. between nomination. In case of non-medical scheme. source of income. • Moral data.105 assessed factors: keeping in view the following • Personal physical health. the income. of the history hazard. and source proof. features. relationship the nominee and the prospect. • Financial of underwriting its included in confidential the proposal i.

This is brief terms are the function on the new business department. government. promote in By accepting and risks they profitability the growth which help meeting financial obligations of the life institution towards the policyholders. Premium rates. installments are then checked and first premium receipts are issued to the field force. and concerned department like commission payments. agency administration. the underwriting decision is made which may be acceptance of a risk at ordinary rated or with loading.105 After this assessment. its employees and the WORKING OF NEW BUSINESS The precise working of NB department is as follows: DEPARTMENT OF MANAGEMENT SCIENCES IUB 21 . computer division and marketing. This is also a key function as the underwriters are responsible for the financial health god of the life institution. calling additional evidences relating to health or financial status or of the prospecting way for a define periods straight declination.

NB department verifies whether the client is a new customer or a past customer. The policy fee is charged of Rs. PREMIUM CALCULATION After underwriting is the premium in of Sum Brief Assured calculated Policy Sheet (see annex No. personal verifies information provided in the Proposal form (See annex. UNDERWRITING Underwriting is the process through which the underwriter with the assesses Insurance the the risk associated Underwriter Proposal. If he feels that client should have a medical checkup then SLIC has its own penal of doctors to provide medical assistance.2) in according with the rate book provided by the SLIC. 100 or Rs 2.1).105 PROPOSAL NUMBER In order to fulfill the recognition of the insurance policy. NB department allocates a number t each insurance policy for future references. No.5 per thousands of sum assured whichever 22 DEPARTMENT OF MANAGEMENT SCIENCES IUB .

UNDERWRITING GUIDELINES • Taking of Authentic Age Proof • Verification on Nominee Relation with Policyholder • Analyzing of health and financial status of Prosper.3) one copy of policy document is sent of (PHS) department of record purpose. DEPARTMENT OF MANAGEMENT SCIENCES IUB 23 . Further the are rates added of in supplementary premium. contracts 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. • Analysis of health history and family of Medical Reports and of Medical Reports and background.105 is less. • Requirement Tests. • Verification of stated information on Proposal Form. • Analyses Tests.

BUDGET DEPARTMENT & ACCOUNTS This department deals in: • Cash Collection • Cash Disbursement • Salary Preparation • Budget Preparation • Inter-Zone Transaction • Agents Commission • Imprest DEPARTMENT OF MANAGEMENT SCIENCES IUB 24 .105 • Others requirements.

These DEPARTMENT OF MANAGEMENT SCIENCES IUB 25 .e. These cheques are sent to the department.10000.The premium is paid by cash in SLIC. location. is prepared to is whom authorized payment case of for person voucher in the in made. the Bank Statement is prepared regarding cheques authorized and of bankers of total i.e. officer. in voucher punched listings are (feeding) computer. These cheques are attached along with “ daily collection sheet” (DCS) with full detail i. cheques are prepared. CASH DISBURSEMENT: For cash disbursement. and this sheet is sent to the SLIC’s authorized bank (UBL) in Bahawalpur for collection. date of issue etc. and these cheques are sent to concerned by daily party. Voucher maintained.e. coactions payments realization cheques. and it is also paid by cheque. Banker’s name. singed the and first the by voucher is prepared.105 CASH COLLECTION: There are two mode of cash collection i.. This audited of having these the amount are excess Rs. The collection is made for II Renewal Premium and I . by Cash and by Cheque.



Statements The data

are in



the Cash




Book and Bank Statement is sent to Principle Office (PO) in Karachi. P.O Zone and for Different these are lodgers sent to are SLIC





Errors and commissions are corrected. Following list are prepared by this section: Data Encased. List of Cheques Issued (Cash Book) List of Unmatched Cheques of Bank & Wise Total List of Cheques

Cash Book Files. Along “Daily with the above mentioned lists, a is




prepared in the following

manner: *** ** *** ** *** ** *** ** *** **

Total No. Of Cheques Deposited in Dec. 19— Total Amount of Cheques Deposited in

dec, 19--Total No. Of Cheques Realized to day Total Amount of Cheques Cheques Realized Realized

Month To date(MTD) Total Amount of (MTD)


Realization Ratio **


In B&A Department Salary of the employees is calculated. Different allowances are offered

to the employees. Loan facilities are availed for the employees. Tax is deducted from

Salary. A provision of recoveries of the loan is made.

Following are the addition to the salary of the employees: (see Annex No.) Basic Pay. Special/Technical Pay House Basic Rent Pay Allowance for @80% and and 75% of



respectively. Conveyance Allowance @Rs. 600 and Rs.

500 p.m. for officer & staff respectively. Car maintenance Allowance @ Rs.550 and Rs. 750 for, only staff, unmarried and

married respectively. Tea Expenses @ 7% of Basic Pay.




The follows:











1/12 th

of the Basic Pay. Union Subscription @ Rs. 50 and Rs. 30 for officer & staff respectively. Salary Advance Repayment (24 monthly

installments). PF Loan Installement-2 (50 monthly

installments). Pf Loan Installement-1 (26 monthly

installments). Convince Loan Recovery (40 monthly

installments). House Building Loan Installments. House Rent Installment (18 monthly

installments). Following are the different types of loans, which can be availed by employees of

SLIC managed by salary section: Two-Month Advance Salary. Loan-I against PF (3 Basic Pay).



Conveyance Loan @ Rs. According to this DEPARTMENT OF MANAGEMENT SCIENCES IUB 29 . whichever is less). Year assumed Premium (FYP) is increased by 25%. 150000 for staff & officer respectively. Proposed Budget is sent to PO. allowances etc. After (Additional purchased database. House Building Loan. The funds of different heads of proposed Office budget are transferred or First to Zonal It is Bahawalpur that each wholly year partially.105 Loan-2 against PF (12 Basic Pay or 90% of Pf employee own contribution. prepared preparation & of salary the the of loan payable data is Deduction) into types total (feeding) Different such as computer lists are payment. 55000 and Rs. BUDGET PREPARATION: Budget is prepared annually.

No additional when the budget is in short. separate from PO Regional If are the less funds required. DEPARTMENT OF MANAGEMENT SCIENCES IUB 30 . PO is for cash made additional whenever maintained acquired Budget from Register department is debited expense and is employee/party/expense is credited.105 base the commission of the agents are calculated and budgeted. Following are the main types of budget: Income Budget Claim Budget Commission Budget Admin. Karachi funds than are The the transferred the proposed budget. in budgets. Expenses Budget Admin & Claim Budget year Offices is estimated by considering Zonal & previous actual have expenses.

2155000 10 (or Pay 30 Basic whichever the expenses on Zone is they is high) have occurred behalf of Bahawalpur Zone. other zone can issue debit note to Bahawalpur Employee Grade 1. 150000 6 Rs.105 INTER-ZONE TRANSACTION: There is separate section for inter-zone transaction in budget and accounts. Whenever any expense the is made on behalf is of any to other the zone. repair maintenance. 200000 6 Rs. COMMISSION SECTION:In Section B&A Department. The expense incurred on behalf of other zone can be claimed. the the commission First calculates commission. utility. salary. entertainment.3 4 to 7 7 & onward Loan % age Rate (interest) Rs. rent. TA/DA. Similarly. DEPARTMENT OF MANAGEMENT SCIENCES IUB 31 . Medical expense etc. expense. debit zone for note that issued concerned expense. claim Meeting & investigation expense.2.

SO.6000.SM). The Mode Bonus is given to SR if the of premium FYP. 90% renewal persistency. Production Bonus is given SR.35% of FYP P. other one for commission for agents section three (SR. The commission rates vary with the amount of FYP and term of the policy.120000 and Rs. @1..5% Allied is given to SO. 10 SRS and last year FYP of Rs. installment Bonus is annually. In commission are given section on and different fulfillment targets to types of of loans certain i.105 Premium Receipt (FPR) is prepared by the New Business Department is sent to Commission Section to calculate the commission of agent. requirements agent DEPARTMENT OF MANAGEMENT SCIENCES IUB 32 .A.SO & SM if they have last year FYP of and Rs. It has four and copies.Rs.SR @4. have minimum the Rs. @10% of Further deducted commission from the commission of agents.15000.50000 of is II respectively year 70% tax persistency.150000 respectively. paid by monthly if they have 72% of II year persistency.e.

105 Emergency Advance. House Building Loan. Eid Advance. COMMISSION RATES DEPARTMENT OF MANAGEMENT SCIENCES IUB 33 . Conveyance Loan.

Bonus SECOND & ONWARD YEARS RATES FOR SALES MANAGER SR II Year Onward 10.5 9.105 First Year Rate For Sales Representative Term Premium (Year) 20 14-Oct Rs.1 Above 20 22.13% 15 16.88% 17.00 2.50% DEPARTMENT OF MANAGEMENT SCIENCES IUB 34 .5 25 26 14.5 Prod.0 3.35 10.25 9 15-19 5.50% 25% 25% 25% 25% 25% 15-19 30% 30% 30% 30% 30% Above 35% 35% 35% 35% 35% -2.88 18.00% 0.50 3.25 22.10% 6.8 8.5 15-19 17 19.50% 6 7.2 Above 6.00% 8 10 11 12 13.00% 5 SO 2. 1-3999 4000-5999 6000-7999 8000-9999 10000 above FOR SALES OFFICER Term Premium (Year) 20 10 To 14 1-19999 20000-34999 35000-49999 50000-74999 75000-above FOR SALES MANAGER Term Premium (Year) 20 10 To 14 1-49999 50000-99999 100000-1490000 150000-199999 200000-above 4.00% 1 SM 1.75 19.12 21.5 8.


In first method.SM on the previous For year SR earning the renewal premium. the payment is directly made to the agent by cheques. • Payment by Post. In the second method. EMERGENCY ADVANCE:It is given on to SO.5) in the third method the commission is paid by post to his postal address on his direction. previous 2 year earning become entitlement of loan. person the payment by is agent made by to other the authorized signing “Authorized Card” (See Annex NO0. DEPARTMENT OF MANAGEMENT SCIENCES IUB 36 . PRIZE AND AWARD:The prize and award are given to field force who are achieved the highest FYP at any time announced by SLIC.105 COMMISSION PAYMENT PROCEDURE:Following are three methods used by SLIC for payment of commission to agents: • Payment by cheques • Authority Card.

telephone. The loan can be taken up Rs. CONVEYANCE LOAN: It is given to SO. electricity. These privileges are free petrol. the Imprest Entitlement is made for the AM by considering the previous progress in the business. Annually.105 EID ADVANCE:Previous year total earning of SR.SM only on the condition of having 5 year service association with SLIC and two guarantors.40000. Different Circulars arrive from PO to Bahawalpur Zone mentioning the different type of privileges on different FYP targets. DEPARTMENT OF MANAGEMENT SCIENCES IUB 37 . IMPREST SECTION: Imprest is the additional privileges given to the employees (Area Managers). HOUSE BUILDING LOAN: To obtain to this loan minimum association with SLIC is 15 years and pervious year renewal premium becomes entitlement.SO and SM becomes entitlement. clerk wage.

SLIC demands certain documents like 1. Application for disease. 4. Firstly deptt. His post is G. DEATH CLAIM When a person dies. after sale sevices. Otherwise State Life pays restriction plenty to the policy holder. POLICY HOLDER SERVICE DEPARTMENT PHS is the abbivation of "Policy Holder's Service" department. It was announced that every service would be completed within 15 days.M. then each region contains D.Death certificate from union council. manager or his colligue is appointed for the investigation of this case.O.M lastly the head of PHS deptt. his relatives or heirs tell SLIC agent or directly to the zonal office.105 stationary and other facilities etc. Every service process was taken very carefully in the last conference of SLIC. As the name indicating that all the services for policy holder are performed here.G. Followings are the functions performed in PHS deptt.Disease and nominators are attested. He also DEPARTMENT OF MANAGEMENT SCIENCES IUB 38 . 2.NIC. in each zone is deputy manager. It is the most busy department of SLIC in each zone. 3. The head of PHS is also sitting in P. Karachi. 5.Original documents (ORs). We can also call these services.

NIC & attestation. He thinks that after 15 years he would need this amount. In case of accident.00. sum assured then this changing is called Alteration of policy. ALTERATION When policy holder wants some changing in his term.Original receipts. Followings are the required documents. He wants to increase it. The place of investigation is also checked by the investigators seriously. if his need is not fulfilled with this amount then he can surrender his policy.g. is surrendering. same process and way of investigation is performed. But he can't gain all his amount because he is breaking the contract. e. Then he has two options. 1. but policy holder wants to decrease it.000 and he is not satisfied to this. 2. he can take loan.105 checks FIR from the nearest Thana.Application. TERM CHANGING – A policy contains 20 years to be matured. After all these completions surrender value is based on your cash value. Firstly. SURRENDER Another service of this deptt. 3. Secondly. from his own property. This is called Alteration. After requirement's completion he pays 13% interest and continues his policy. DEPARTMENT OF MANAGEMENT SCIENCES IUB 39 . A policy holder has a policy of sum assured 2. If a policy holder wants to finish his policy due his cumpolsary need of money. then SLIC tries his best to give claim as soon as possible. This is another type of Alteration. If case is clear.

If documents. NOMINATION CHANGE 3rd kind of alteration is nomination change. I. SLIC sends a letter to its policy holder. MATURITY CLAIM When a policy goes to its maturity.D. In case of serious need 80% is allowed to be taken as loan. all premiums are right. Application. All maturity claims goes to your account. then this loan plus interest of that period would be deducted. But with an emergency case and with the help of an authority you would be awarded 90%. First a policy holder nominated his wife but after some time he gave divorce to her wife and now he wants another person for nomination.105 123456- Followings are the requirements for Alteration. LOANING Other facility of SLIC is loaning. Otherwise if you had taken loan and could not return 13% interest and having certain cash value in your policy. Alteration fee = 25 Rs. FILE TRANSFER If your policy record is in Multan zone and now you are in Bahawalpur. Form. Alteration performa. Most of the people are allowed 70% loan from their own accounts. DEPARTMENT OF MANAGEMENT SCIENCES IUB 40 . original receipts. Then you can tranfer here by application. then a healthy amount with bonuses goes to policy holder's account. Original receipts. You can get loan from your account. it means that its term is completed. card.

then it may be demande "DGH" (Declaration of Good Health) by the head of this department. party will never get the claim. e. which means if you have forgotted your policy after paying at least two premiums and then within 5 years it remains inforce. If you take 90% loan. because these 30 days period is called grace period.if you take 70% loan. But from 90 days late fee will start. Then from 30 to 90 days when you go to submit premium without late fee.105 But it is beneficial for policy holders to take a minimum loan from their account. then 30% will remain in your account and its cash value will remain take it inforce for more time. These all are the benefits of suspense accounts.g . if the given premium date has been passed. then only 10% will remain in your account and it will cover less time to take policy inforced. But the loss of suspense account is. Then till 30 days there is no extra fee. then policy holder has the chance DEPARTMENT OF MANAGEMENT SCIENCES IUB 41 . Another term is Special Revival. Because it is non-credit in account. No deduction of Zakat from death claim. At this time PS (Personal Statement) can also be demanded. REVIVAL Charging of late fee or extra fee is called Revival. While Zakat is charged from both surrender and maturity claim.

D.g. Conveyor. Member. e. Member. In other words if you got your policy in 97.Manager (PHS) P.O.Manager (C&P) Division.G. This department has the sole DEPARTMENT OF MANAGEMENT SCIENCES IUB 42 . PERSONAL SERVICE & GENERAL DEPARTMENT (P&GS) The office & general matters are dealt in P&G Department.O 4:. he is unable to pay the remaining premiums plus their late fee..M (PHS) P.105 to renew it. Member. 2:. Secretary.Manager (Oversees) 5:.O 3:. 1:. CONSTITUTION OF CLAIM COMMITTEE The claims committee of principal office for taking decisions on all the death & injured claims refers to the principal office is reconstituted as follows.Manager (PHS) P. Then he can renew it by the starting of runnig year. then now it will skip to 2002.

105 responsibility disciplinary Selection. is the This main termination functions of Department.600 p.B.he is categorized as A. Following are the main section of this department: MEDICAL SECTION: All this hospitalization expenses are beard by SLIC provided that these are incurred in approved hospital.C and he has entitle to have his own office at choice location at is the expense by of SLIC. in shape of salary as medical allowance. RENT SECTION: When sale Manager (SM) is promoted to Area Manager (AM). The reimbursement of medicine is not allowed to staff (having grade 1 to18) but they are given Rs. the A his good after selected A.a. The daily correspondence is dispatched in this department. DEPARTMENT OF MANAGEMENT SCIENCES IUB 43 . leaves and similar other general services. The expenses of medicine are reimbursed. medical department to the also deals facility office employees. of the the P&G in recruitment.M. employees and action authority of the of the employees.

Rs. The office rent entitlement for the categories of A. & Rs.M respectively.a.M. (ZPC) furniture Zonal fixture.105 selection of place. A lease agreement is made with the landlord for the after analyzing and the approved map location property registration form. equipment Committee Procurement for the constituted purchase of assets. & sale maintenance etc.2000. The Zonal Rent Committee (ZRC) annualizes this location. the entry for the purchased assets is made in DEPARTMENT OF MANAGEMENT SCIENCES IUB 44 .B. this application is transferred to P&GS Department for the analysis of location of the office. Zonal Head is informed about the location. CAPITAL SECTION: This and section responsible of a is for purchase.2000.C of Am is Rs. Each year quotation offered assets are depreciated @10% p. The assets are purchased from the suitable the supplier after by critically different analyzing venders.1000 P. by application written by A.

envelops. etc. whenever any department requires the stationary. form. LEAVE SECTION: Following leaves: • Casual Leave • Medical Leave 20 days casual leaves are allowed to all employees in a year. the concerned department fills a Requisition Slip. pencil. In case of death all leaves. The stationary is issued to the concerned department and it is recorded in the register. not utilized. The medical leave or are the main two types of application leave is allowed for 48 days in a year. dustbin. calculators.105 the Register for Fixed Assets. can be encased. Each ear the closing balance is intimated to PO Karachi. printed letters. STATIONARY SECTION: This section maintains the record of stationary such as paper. Unused leaves are accumulated and after two years these leaves in excess of 180 das can be encased. DEPARTMENT OF MANAGEMENT SCIENCES IUB 45 .

for this authority done by appointment office (PO) Principle Office. demotion. promotion.105 PERSONAL SECTION: All the employee matter such as appointed. section. Each year he employees are promoted by by the criteria PO and or instructions set PO Karachi. Annual Confidential Report-ACR (see annex N. For promotion of the employees. Zonal Karachi Regional by Selection Committee constituted Head conducts a test and interview. transfer and allowances are dealt by personal section. DEPARTMENT OF MANAGEMENT SCIENCES IUB 46 . Regional Office does promotion of officers. there ACR’s are necessary and minimum three years are required to remain in one cadre. 10 for ACR) the employees of are prepared. For the appointment is initiated computer officers is or of in the the staff. an advertisement Zonal Head is of Newspaper. under by the the supervision this departmental heads.

Field force of SLIC plays an effective role in selling of tangibles products (Insurance Plans). qualification is required DEPARTMENT OF MANAGEMENT SCIENCES IUB 47 . This department is also responsible for insurance and renewal of license to the field force. and termination of the field force. The requirement and conditions for the appointment of SR is as follows: • Minimum metric.105 AGENCY DEPARTMENT Service provided by the SLIC is intangibles and therefore are not acquired at the counter by the people. who need it. department includes recruitment. allied and medical facility for field force. In order to maintain the record of the field force agency The main department function of was this established. so it must be sold them through persuasive method. promotion. RECRUITMENT: The Sales Representative (SR) is appointed by SO/SM. • Annual quota for SR is Rs. • Age at entry must be than 18 years. 10000.

An Rs. PROMOTION: SR is promoted. along with of license fee attested photocopies Form is documents to the Nomination submitted agency department. and upon fulfillment on of certain of is is term condition targets.M. • Must have at least 20 policies in force on different lives. 25000. the FYP should be less than Rs. to SM and to achievement Similarly A. SO business promoted SO. DEPARTMENT OF MANAGEMENT SCIENCES IUB 48 . and application 50. 75000 FY during but immediate in any one preceding calendar two year. Form. A code number is allotted at the submission of application to SR and he can start working as agent of the SLIC of Pakistan.105 • Application for the insurance of license is necessary and it is renewed after each 3 years. years. to and SM following the criteria: FROM SR TO SM: • Two years working as SR: • Must have secured minimum Rs.

• Must have minimum 4 productive SR. • Mush have FYP two any secured in the minimum immediate years. • Must have minimum Second Year Persistency of 70% in the immediate proceeding Year.105 • Must have a achieved a minimum Second Year Persistency of 70% in the immediate preceding year. • Must have achieved of a 90% minimum in the Renewal Persistency immediate proceeding year. • Must have at least 80 policies in force in his/her organization.250000 proceeding the FYP in calendar one calendar must not be less than Rs. FROM SM TO AM: DEPARTMENT OF MANAGEMENT SCIENCES IUB 49 .60000. FROM SO TO SM: • Must have working of minimum 2 years as SO. but year Rs. • Must have minimum renewal persistency of 90% in the immediate proceeding year.

000 2 SO should be qualified to DEPARTMENT OF MANAGEMENT SCIENCES IUB 50 . 30.000 • Number of policies in the last year must not be less than: A= Rs.000 B= Rs.00.000 B= Rs. 150 • Must have minimum of 70% in Second the Year Persistency proceeding year immediate second of the year and minimum of of 65% the persistency year previous immediate preceding year.200 B= Rs.00. • Must have secured the following total FYP for category A&B: A= Rs.00.00. 15.000 And last year FYP must not be than: A= Rs.105 • Must have working at least for 3 years as SM.36. 20. • Minimum sum.45.00. • Annual quota must have: A= Rs.

rules who & behave negatively. LICENSE: The license to work as agent for SLIC is issued by the Controller of Insurance Karachi.000 TERMINATION & DEMOTION: Any agent of SLIC.20 0 DEPARTMENT OF MANAGEMENT SCIENCES IUB 51 . a list of the field force is transferred to controller of Insurance Karachi for new and renewal of license. 59 Rs.18. termination the Zonal Head.105 B= Rs. The list of license fee is given below: SR (New License for Ist Year) SR (Renewal of License) SR (Renewal with late fee) SR/SM (Renewal of License) SO/SM (Renewal with late fee) Rs. At specific of time. 125 Rs. Any agent who fails to meet the annual quota of FYP is demoted to immediate lower rank of the field force. 70 Rs.00. or indulge by violates fraud or the regulation can be mal-practice.15 0 Rs.

AM SO . because this team is a front line of SLIC. Agent 571 189 73 11 HRD is the abrevation of " Human Resource Devolpment ". Courses BTC BTC ADP MOP MOSL MMS ISR SO ISR SM . Followings are the courses for field forces.SM Marketing HRD DEPARTMENT DEPARTMENT OF MANAGEMENT SCIENCES IUB 52 . trained the field force to inhance the people. This dept. It teaches throughout the Marketing channel with their special courses. SM AM.105 List of Field Force in Bahawalpur Zone Field Cadre SR SO SM AM No.

S = Skill.105 I have attended the BTC course.Service Upgrading.Liklihood habits. A = Attitude. N C = Confidence. Place. CASH DEPARTMENT OF MANAGEMENT SCIENCES IUB 53 . O = Organized.Planning. Income. Thankful. Before going into a market.Professionality. ACTION A = Active. I = Intelligent. Following things are the key terms for a marketor. Following is the detail. 4:. T = KASH K = Knowledge. = Noble. Training and courses give the following benfits:1:. Target attaining:Time. 3:. 2:.

1000 3000 1000 1200 800 3000 10. E = Evaluation. Your basic target is S = Smile.00 To cover these expenses you have to income through this forecasting. If you are unable to hold it then this English " Cash " will change into Urdu " Kash ". DEPARTMENT OF MANAGEMENT SCIENCES IUB 54 . Dressing Transportation Customer dealing Other expenses Total. L = Love. A = Attitude.105 H = Habit.000. House rent Utility bills Food . You can get all wishes with the help of these terms and then you can cash everything. BUDGETING (PRACTICAL PLANNIG) Monthly Expenditures. Forecasting. SALE.

DEPARTMENT OF MANAGEMENT SCIENCES IUB 55 .000 10 100 200 20 5 The main purpose of the course is " To think in advance " and this is the basic planning.000 25.105 MONTHLY INCOME FORECASTING Income Premium Policies Meeting Name obtained Working days Meeting / day 10.

which is called “Key to PO Circular Volume”. DEPARTMENT OF MANAGEMENT SCIENCES IUB 56 .105 INTERNAL AUDIT DEPARTMENT This department plays a supervisory role of all of the all the other departments by checking done rules by and and the verification departments of all the working to the according b PO regulations provided Karachi time to time. and omission are detected. errors. the frauds. These rules and regulation are provided shape to all the Zone through circular. All working of the departments are verification according to this book. In this way. These Pakistan in are of circulars attached in the book.

2. CUSTOMERS OF STATE LIFE 1. stationary etc. on for payment maturity payment death claim etc. is making Audit called payments.EXTERNAL CUSTOMERS External customers are those who have no link with SLIC.INTERNAL CUSTOMERS Internal customers are infect those people who have direct or indirect link with SLIC.105 TYPE OF AUDIT: • Pre-Audit • Post-Audit When the audit it after is is done before pre-audit. MARKETING PRODUCTS DEPARTMENT OF MANAGEMENT SCIENCES IUB 57 . Pre audit is conducted for all the big payments at such as of purchase policy. conducted called making payments post Audit. all-to-day Post audit is conducted such as expenses traveling expenses. These are employees of the corporation and their relatives. of assets. They are the common people which are the main target of sales force.

Endowment Assurance. Sunehri Policy.73. Child Education and Marriage(built in) Child Education and Marriage(Non built N.71. Jeevan Sathi. Optimal Maturity. Name Whole Life Assurance. Shad Abad. There is a 8% rebate for staff employees on planes.000 or more 50 paisa is rebate on basic rate. Rural Life. DEPARTMENT OF MANAGEMENT SCIENCES IUB 58 . Three Payment Plan. Progressive Premium. Joint Life.72. If policy sum assumed is 300.77. Single Premium Endowment.SCHEME Policy fee is not charged on these plans. 18.D. Child Protection.105 Table 0103040506070917181936737576in).

Terminated 30*20*500 = 300.000.53. Minimum premium.99 22. Premium paid = 51 years.000 23. e. Bonus rate is Maximum 50 pasia is rebate on factor which starts from three lack sum assured.56. Age Maturity = 34 years.000.62. These all plans are finished from July 2002.59.58.52. 102*47*500 = 234. 57. = 115 Maturity Claim:Regular Bonus 56*5*500 = 140.0.99*500 = 11495 *100 Premium.600. = 500.50 = 22.Whole Life Assurance Age limit = 10-65 years.g. DEPARTMENT OF MANAGEMENT SCIENCES IUB 59 .54.99 + 4 ATB = 26.51.99 26.21. This is for low income people.105 01 to 51 to 07. 01:. = 85 years.55.49 . 02.

added 2. Age at Accident = 55 years.85.000. AIB Rs. Age = 37 years.000. Regular Bonus = 500*5*56 = 140. Maturity age = 75 years. = 32.000.000. Accedental claim = 500. It's benefit is that time duration is on your wish. Death Claim S.21.25 % DEPARTMENT OF MANAGEMENT SCIENCES IUB 60 . 500*16*102 = 8. This policy has a single nominee. Term = 20 years.65. = 500. FIB = 15 % ADB = 1.000.Endowment Assurance Age term = 20-65 years.A. =21.000. Terminted:500*11*30 = 1.495 03:.

000 = 1.95.Three Payment Plan DEPARTMENT OF MANAGEMENT SCIENCES IUB 61 .05.25 ADB = 61.000 =3.000 Accedental Claim = 1.000 100*15*94 = 1. If death 2nd year Death Claim:- = 1.00.800.A = 100. 04:.Progressive Premium Maturity Claim:S.000 Terminated 100*10*30 = 30.86 Factor + 1.105 59.000 Regular Bonus = 48*1*100 = 2.000 Rs.000. 05:.000 Regular Bonus = 100*5*48 = 24.00. Special terminated Bonus:10*10*100 = 1.000 will also be added.11 Premium.95.00.41. 61.11+100 Policy fee = 62.04. This will become 2.

A = 50. Best Use:When you got 25% claim you can fix it in bank scheme. 61.27.24. 25% claim will be paid after 06 years.g.5 3054.000 Term = 21 years.09*50 = 3054.5 + 100 = 3154 Premium:- ` 07:. Terms:.105 This is special for buisness man people.18.30 years.Child Protection Child age = 6-15 years Donar age = 20-50 years DEPARTMENT OF MANAGEMENT SCIENCES IUB 62 . Age = 42 years S. Term = 18-30 years. after 10 years this amount will be 4 times. e. 25% claim will be paid after 12 years. 50% claim will be paid on maturity period.21. Maturity will on every 6th year if term is 18 years.

If Children Died .50. If after 2 years of policy then 20% of S.105 Children have no alloted any suplimentary contract before 5 years old. Premium payment stops.A + 10% of Bonus will be. Till maturity 10% scholarship anuualy goes to children. 18:.A + complete bonus will go in each case. If child died after 1st year of policy then 10% of S. After 10th premium complete S. After 5 years age ADB can be added.Rural Life Age = 20-55 years Term = 15 or 20 years In accidental case 3 times claim will paid.000 then under writer can demand " Reject Medical Test ". In accidental case but with any claim will be paid. DEPARTMENT OF MANAGEMENT SCIENCES IUB 63 . At maturity date claim plus bonuses will go to children.A + 20% of bonus will go to father. If S.A is greater than 1. If Father Died .

within 8 months after Premium:Term = 20 years Age = 21 years S. This policy is free from policy fee.2 = 22 years Man's age = 34 years DEPARTMENT OF MANAGEMENT SCIENCES IUB 64 . Table 19 = WP + TIR + 03 Equal age consideration.000 59. then the claim goes to the Hearis. the other partner gets claim.12*100 = 5912 5912 + 100 = 6112 19:. Separated filling of proposed forms. If the other also dies. Isolated medical for both partners.105 The other facility for policy holder is that no late fee will be charged premium paid date.A = 1. Each can take suplementory contract. Women age = 24 years .Jeevan Sathi Premium single Protection double If any one dies.00.

A = 1.5 + 100 (premium fee) = 9968.22 (15% FIB) = 64.105 Difference 34 . Medical will be demanded if FIB si more than 25% Man = 34 years Woman = 24 years Term = 20 years S.Shad Abad Age limit = 20-60 years Term = 10.20.54 64. If AIB added then 5 times claim will be paid in DEPARTMENT OF MANAGEMENT SCIENCES IUB 65 .54 + 1. In case of accidental death 4 times claim will be paid.22 = 12 years This difference will see in the 4 will deduct from the elder age.5 9868.000 ASB = 1.25 In case of matured death 2 times claim willl be paid.25 Rs FIB = 15% 56.5 36:.79 65.A) = 9868.32 + 8.50.79*150 (S.25 (ADB) = 65.15.

If he wants to renew 6% then medical will be demanded. TIR.FIB. No policy fee.saving and protection. Suplementory contracts.690 + 100 = 10. Contracts and benefit of suplementory contract starts from 3rd premium.690 10.105 case of death.790 73:. Age limit = 20-60 years Age = 34 years S.000 He wants no increase in 6% then this will proceed like other policies.00.A = 2. T-36 = ADB + TIR + 03 Premium. DEPARTMENT OF MANAGEMENT SCIENCES IUB 66 .45*200 = 10. plan.00. S. FIB & AIB can also be added with the wishes of underwriter.Sunehri Policy Bonus rate = 115/1000 It is same of long life.000 Age = 25 years Term = 20 years 53.A = 1. no rebate. ADB.

halfset people + aged people + unfit people. Then one year's claim DEPARTMENT OF MANAGEMENT SCIENCES IUB 67 . Age limit = 20-58 years Term for 03 = 10. If after 2nd year. Term = 18.105 75:. But man get through 03 or 05.Child Education and Marriage Every person can get this for his nephew. Cash value can get no suplementory contract added to children. But birth certificate will be demandedat maturity or death. son etc. In case of also child's death the claim goes to hearis. In case of policy holder's death 24% FIB scholarship goes to children. abonormal. natural death happened.24 FIB = 24% N'D Scheme For mental.20 Table 05 Term = 18. Claim will only in case of accendental death in first two years.15.21 years No suplementory contract.21.


back after 3rd premium, complete amount received. Nothing should be required in this scheme.

BONUSES Routine. Terminal. Special Terminal. Interrum Bonus.
R egular

( Routine ) Bonuses:_
First Five Years After Five

Time Years
<20 20> 56 48

102 94 01-Endowment.

15-19 10-14 20<

35 20 35

81 60 09

15-19 plan 10-14









At the maturity time or at the death time if the policy inforced till after 4 years. After the 10th premium, terminal bonus starts. This bonus is 30 Rs. / 1000 at the premium, which is maximum at 600 Rs. per thousand. e.g.

S.A = 100,000 Term = 25 years Premium = 5000 100 (S.A)*15(Yrs. remaining)*30(Rate) = 45000

In case of FIB year in 2002 at policy maturity, this bonus will be given to you. This will be given to you at each last 10 years premium with the rate of 10 / 1000 which is maximum. 200 / 1000 e.g.

S.A = 100,000 Term = 30 years




100(S.A)*20(Yrs. remaining)*20(Rate) = 2000

This is given as interrum bonus, which is given at terminal bonus. e.g. Special bonus is given in 2002, but it does not goes to policy holder and PH died. In this case the bonus which is delievered in 2003, will also be given to policy holder. e.g. During 2002 a terminal bonus is given to Ubaid. But the bonus certificate does not find to Ubaid, and such a mistake happened. Then this will go to Ubaid's claim as interrum bonus.

Condition = Policy should be inforced when this bonus is announced. e.g. premium of 94 will be paid in 95's premium date. SUPPLEMENTARY CONTRACT ADB.



SUPLEMENTORY CONTRACTS ADB Double claim paid from 5-55 years. DEPARTMENT OF MANAGEMENT SCIENCES IUB 71 . FIB. but in case of injury or death with agricultural tool this will paid 5 times. Risks which are excluded in this contract are in murder. In table 18 this is 3 times. has the right to examine the body at any date. or if goes to sixty years age. any effect from alcohol drug etc. TIR. This contract is checked within 90 days of death. ADB become 4 times in ShadBad automatically. heat stroke. in arresting.105 AIB. games. Non external or intetrnal injury effect the demand of ADB claim. Notice of claim is attached to the documents when this contract starts. pragrency. WP. If you want to include it in case of revival then this will happen according to the rules of. SWP. Termination in case of death claim.

In case of one eye 1/3 of S. But after 52 weeks 100/1000 for 10 years will be recieved.105 AIB In case of death. no rebate in premium.A will recieved. If injury is more than 15 days. Finger of Shahadat or thumb destroy. In accident. then 1/4 of S.g. In case of death monthly scholarship DEPARTMENT OF MANAGEMENT SCIENCES IUB 72 . two arms. Term = 20-55 years FIB It's limit starts from 10-50% and 10-25% . One arm or one leg demage then half of the claim will be paid but no rebate in premium. Same Assured + Bonuses of Premium paid. leg or eye died then complete claim will be charged and all the premium life and on maturity. double claim will go to party. If there is any serious injury then 5/1000 recieved for 52 weeks. if two main organs. two eyes or one arm.A will recieved. But if one main organ destroys e. two legs. No medical charge but after 25% FIB medically you will checked.

Maximum rate of TIR is 3 times. This contract terminates on Expiry date. If your policy is on Revival then offcoursty it's amount will be added. surrender or on any policy anniversory at prior notice by the policy holder. DEPARTMENT OF MANAGEMENT SCIENCES IUB 73 . Age limit is from 20-50 years. SUPLEMENTORY CONTRACT RATES Clerk. for two or three years and gained a contract. driver people get this. if the policy lapse. Professionals etc. It's protection remains at 70 years age. so mostly factory honours. TIR Friend goes to Dubai. That if your accident happened at any place then it's equal amount goes to your account. Term is from 10-25 years. Because these contracts are of 2 or 3 years. Age limit is from 20-60 years.It's term is from 10-45 years. Protection of contract will remain at 65 years age.105 paid.

52.88 Rs AIB = 6 Rs Labour ADB = 2.5 Rs AIB = 5 Rs Former ADB = 1. 02.25 Rs Buisness man ADB = Rs AIB = 6 + 2 = 8 Rs FIB is on the wish of policy holder.105 AIB = 4 Rs ADB = Pay 3456 3868 3991 4515 DEPARTMENT OF MANAGEMENT SCIENCES IUB 74 . Followings are the plans which are off from July 2002.62 SALARY AND GRADING Grade 1 2 3 4 Initial Pay 1545 1788 1849 2037 Increment 80 100 102 118 Max.51.

105 5 6 7 8 9 10 11 12 13 14 2105 2652 3374 4990 7200 8970 12630 13660 15920 18420 133 149 288 350 490 610 640 680 710 900 4898 5781 13454 11990 15530 18120 22230 23860 26620 30120. Threats. Opportunities. DEPARTMENT OF MANAGEMENT SCIENCES IUB 75 . SWOT ANALYSIS Strength. Weakness.

main aim of to you must first Lear to Opportunities this analysis Threats. The idea of analysis is to undertake a more SWOT structured analysis so as to yield so as to yield finding. which can contribute the formulation of strategy. The Weakness. to identify the extent which the current strategy of the organization and its more specific changing taking place in the business environment. SWOT stand for and is strength.105 SWOT ANALYSIS “There is an old Spain saying that to be a bullfighter be a bull”. STRENGTHS SWOT Analysis of SLIC is as follows: Field force Management Good image Excellent set up Real estate division (investment portfolio) Training academies & training centers DEPARTMENT OF MANAGEMENT SCIENCES IUB 76 .

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. EXCELLENT SETUP: SLIC is a large and Life 27 Insurance Zonal Company and in 5 Pakistan have Offices Regional Offices throughout the country. This is the strength of SLIC.105 Marketing division Advertising & Sales promotion Computerization Market leader Return (bonus to policyholder) Government security FIELD FORCE MANAGEMENT: SLIC has ful-fledge by HRDD in most ZONAL and Offices organized qualified trainers equipped by modern equipment to mange and train field force. REAL ESTATE DIVISION (INVESTMENT PROTFOLO): DEPARTMENT OF MANAGEMENT SCIENCES IUB 77 .

supervised qualified engineers and investment analysts. this raising its strength to 256. MARKETING DIVISION: This division is backbone of SLIC.814. Training 1946 Basic Lahore Centers courses and in and Rawalpindi zonal offices. DEPARTMENT OF MANAGEMENT SCIENCES IUB 78 . 25486 young and educated people were inducted as SR in the sale force. MOP and MMS of LIMRA (USA) had conducted.105 SLIC has well-equipped and computerized Real Estate Karachi Division in by principal highly office (PO) staff. ADVERTISING & SALES PROMOTION: During 1998. During 1998. ranging Courses to advanced Programs like ADP. a new penal of four advertising agencies such as of was selected. of in Outdoor advertising Hoarding done and installation commercials Unipole PTV is as display other publicity materials such Calendars. inclusive of SO & SM. TRAINING ACADEMIES & TRAINING CENTERS: SLIC has 3 training Academies and In at 26 Karachi. 1998. from seminars.

Golden and Special Reversionary Bonus to the policyholder.105 Stickers. ♦ PO conducts marketing survey to analyze environment and develop new plans. COMPUTERIZATION: About The 2/3 working to is computerized total in SLIC. and Posters are produced to boost business activities. Eid Cards. the image good SLIC further enhanced: OTHERS: ♦ It is old and most experienced organization. GOVERNMENT SECURITY: It is the main strength and of SLIC. ♦ Employees are fully devoted and highly paid workers as compare to other organization. ♦ It has highest paid up capital. will Due for to this is factor. Interim. is plan computerized working under review. time. DEPARTMENT OF MANAGEMENT SCIENCES IUB 79 . RETURN (BONUS TO POLICYHOLDER): SLIC provides different Terminal. types of bonuses One as Reversionary.

Group of some department is stationery. They Most are workers promoted are by educated. INTERNAL SETTING & CULTURE: Internal office setting and arrangement is not satisfactory Dominant but sub as compare needs to its competitors.e HRDD. improvement Insurance) Culture culture further (i. WEAKNESSES Incompetent field force Internal setting & culture Centralized Decision Making Internal department inefficiency Selection & recruitment Feed back INCOMENTENT FIELD FORCE: In term of quantity. CENTRALIZED DECISION MARKETING: DEPARTMENT OF MANAGEMENT SCIENCES IUB 80 . Yet there is need of further improvement. it is strength but in term of not quality highly it is weakness. fulfilling targets.105 ♦ It is reinsured by Swiss Re (Insurance Company Switzerland).

prosperity survival of the organization. ♦ Normally surrender 1 to 2 months and is required the to the policy take Survival Benefit. which the prospects. INTERNAL DEPARTMENT INEFFICIENCY: ♦ Underwriting takes longer process time (in NB Department) irritates period. which is not justified. FEED BACK: DEPARTMENT OF MANAGEMENT SCIENCES IUB 81 . ♦ Loan section takes 10 days to process. is Zonal totally Offices follow the instruction and rules & regulations provided by PO.105 Managerial centralized in decision-making the PO Karachi. decentralization (to some extent) is necessary. Sometimes decisions is taken by PO is not strategic For and adjustable & in the local environment. SELECTION & RECRUITMENT: SR are selected of and their recruited education by SO & SM irrespective and unique internal attributes.

OTHERS: ♦ Frauds done by some deceives field workers who deteriorate the good will & image of the organization.5 and $1. system organization for feed back has no between office employees and manager.105 The Corporation does not have any effectives and efficient feed back channel to disseminate sales force suggestions to upper management. well organize Further. managers and Board of Directors.7 only for life is & general an rate. ♦ Ineffective downward and upward communication channels. insurance to per respectively. OPPORTUNITIES PER-CAPITA PREMIUM In Pakistan per capita premium payment is 1. POPULATION GROWTH RATE: DEPARTMENT OF MANAGEMENT SCIENCES IUB 82 . enhance this There opportunity In Japan nominal capita premium for life insurance is $3810.

So it is a great opportunity to SLIC. compulsory to cede to Further for the private of insurances. ENTERY BARRIERS To enter in is is the insurance business 40% he of investment premium required. population 3%. INSURED POPULATION: In Pakistan rest 2% of to to 3% the life population population to is insured provides enhance while opportunity insurances their business.).105 In Pakistan. It is a growth great rate is approximately opportunity for insurance sector. GOVERNMENT REGULATION: Section 10-B of Pakistan Commercial 1968 of and Industrial the Standing Ordinance insurance the provides all the compulsory of employees organization (whether private or Govt. Government Pakistan security purpose barrier. creating the entry DEPARTMENT OF MANAGEMENT SCIENCES IUB 83 .

is threat to the survival of SLIC. There is always a fear war creating the threat to corporation and policyholders. Metropolitan. POLITCAL INSTABILITY: Political the instability looses the confidence rules subject of policyholders. of Further are and to regulations government change creating threat to insurance business. So the return from real estates and other activities is deteriorated. ALICO etc. INVESTMENT CLIMATE: Due to the political instability the and government changeover investment climates are not satisfactory in the country. DEPARTMENT OF MANAGEMENT SCIENCES IUB 84 . CU.105 THREATS COMPETITORS: The existence of local and government insures such as EFU. FEAR OF WAR The not relationships satisfactory of Pakistan to with India are due Kashmir dispute.

105 Competors ALICO EFU METRO POLETON COMERCIAL LIFE POSTAL LIFE ADAM JEE The main Competitors of SLIC are: Eastern 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. The year of establishment of the life insurance companies are as follows: DEPARTMENT OF MANAGEMENT SCIENCES IUB 85 .4 on the basis of total premium written off in 1997. SLIC is the of market yet life SLIC share has declining. market enjoyed business share insurance 91. has decided to allow the private After insurers 1990 the But in to operate in the of Pakistan.

The know the of from objective status analysis financial and competitive position SLIC keeping in view different factors such as total business in force. The values if this unit is announced daily in the newspaper. first. total income. Whenever the policyholder takes the insurance policy. FYP etc. life fund. he indirectly purchases the units of the EFU and CU. The only main strategic 5 years analysis starting of this of SLIC 1994 is to to confined 1998. investment portfolio.105 EFU CU ALICO Metropol itan SLIC EFU and CU have 1992 July 1996 May 1995 Februa ry 1993 1972 adopted the Unit Link System. I start from premium Income of SLIC. STATE LIFE INSURANCE CORPORATION OF PAKISTAN SUMMARIZED INCOME DEPARTMENT OF MANAGEMENT SCIENCES IUB 86 .

121. 15. 11.791. 41. 4.372. 4.975. 4. 137. 1.293.599.244. 4.033.2 65 561 323 48 37 Group premium 1.258. 38. 867 368 941 959 481 Annunities 2. 409 756 084 522 142 Renewal premium 4.866.4 8.564. 1. 141.081.904.311. 1. 1.213. 1. 57. 80. 867.572. 1. 12. Dividend. 052 470 622 201 960 Operating Expenses Claims & Policies paid 4.0 630 549 200 36 28 Miscallaneous income 9.355.9 349 635 727 22 21 Provision for bad debts 7. 671 159 467 853 562 Single premium 2.132.363. 1.101. 135 227 398 029 747 Payment to Field workers 964. 939.413. 1. 939. 1.177.360.3 934 923 315 72 59 Total Income 13. 5.592. 7 1.537.2 53.303.5 165 754 030 90 08 Interest. 128.250.341. 1. 1. 12. 8. 134.412. 1.256.8 2. 32. 92. 018 708 300 677 685 Profit on sale of Investment 109.791. 5.8 51. 4. 15. 729 325 893 985 382 Staff Gratuity & Pesion 57. 2. 4. 14. 15.714.1 293 692 962 44 58 Profit on sale f assets 1.136. 069 853 083 130 197 Management Expenses 1.487.105 STATEMENT FOR THE YEAR ENDED ON 31 DECEMBER------------1997 1998 1999 2000 2001 Total Income First year premium 1. 1. 8. 5.Rents 5. 1. 4.6 317 814 10 DEPARTMENT OF MANAGEMENT SCIENCES IUB 87 . 867 710 557 302 660 Rent for offices 101. 1. 7.214.285. 15.381.

541 7.428. 260 4.7 59 401. 260 8. 832 204. 515 Net Profit margin Operatiang profit margin 1997 41% 43% 1998 34% 35% 1999 46% 47% 2000 39% 40% 2001 44% 46% ATIO ANALYSIS Net Profit Margin Net Profit/Total Income DEPARTMENT OF MANAGEMENT SCIENCES IUB 88 . 418 402.846. 580 5. 796 8. 271 41. 373 5. 775 201. 036 68. 416 7. 369 5. 665 38. 843 373.691. 454 39. 099 8.093.745. 472 66. 081 45. 382 504. 172 206. 332 359.226.0 60 272.642. 201 272. 641 155. 737 35. 053 7.059.105 Depreciation Other Expenses Voluntery retirment Scheme Total Operating Expenses Operating profit Provision for Taxation Federal Govt Share Total Net profit 7.267.476. 501 8. 624 204. 586 4. 441 759.449. 907 159.700. 974 242. 036 5.024. 884 75.524.450. 392 6. 476 75.

The net profit margin of the corporation dropped down to 34% in year 1998 from 41% in year 1997. It clustering round 40% that is very good. This thing shows that the management has taken some encouraging actions to reduce the operating expenses of the corporation. Operating Profit Margin Operating Profit / Total Income Year Operating margin profit 1997 43% 1998 35% 1999 47% 2000 40% 2001 46% The operating profit margin has increased from 43% in year 1997 to 46% in year 2001. DEPARTMENT OF MANAGEMENT SCIENCES IUB 89 . 41%.105 Year Net margin Profit 1997 41% 1998 34% 1999 46% 2000 39% 2001 44% The net profit margin of the company is very good.e. In year 2001 that net profit margin of the corporation is 44% that is 3% higher than the profit ratio of 1997 i.

DEPARTMENT OF MANAGEMENT SCIENCES IUB 90 . The ratio of current assets to current liabilities has increased from 1224% in year 1997 to 1300% in year 2001. Debt Ratio Total Liabilities / Total Assets Year Debt Ratio 1997 99% 1998 99% 1999 99% 200 2000 1 99% 98% As the company acquires funds from the general public it has huge amount of external sources. The ratio of the current assets is increasing over the year. They have remained almost 99% throughout these year.105 Current Ratio Current Assets / Current Liabilities Year Current Ratio 1997 1224% 1998 1066% 2000 2001 1300 1160% 1399% % 1999 The company has kept the majority of its sources in the current assets.

It has fallen down to 68% in year 1999 but again increased to 67% in year 2001.105 Investment to Total Assets Investments / Total Assets Year Investments assets to total 65% 65% 68% 59% 67% 1997 1998 1999 2000 2001 The corporation has kept majority of its assets in the investment of various types. Local Investments to Total Assets Local Investment / Total Assets DEPARTMENT OF MANAGEMENT SCIENCES IUB 91 . The portion of investment in the total assets of the company is increasing. In year 1997 it was 7% that has fallen down to 5% in 2001. Loans to Total Assets Loans / Total Assets Year Loans to Total Assets 1997 7% 1998 6% 1999 6% 2000 5% 2001 5% The portion of the loan to total assets has remained constant from 5% to 7% in these five year.

It has fallen from 8% in year 1997 to 6% in year 2001. Investment to Government Securities Investment in Govt. It has increased from 65% in year 1997 to 67% in year 2001. STATE LIFE INSURANCE CORPORATION OF PAKISTAN SUMMARIZED BALANCE SHEET DEPARTMENT OF MANAGEMENT SCIENCES IUB 92 .105 Year Local Investment to total assets The portion of the 1997 8% 1998 8% 1999 7% 2000 6% in 2001 6% local investment total assets has been decreasing over the years. The portion of the government securities in total assets has also remained constant around 65%. Securities / Total Assets Years 1997 1998 67% 1999 68% 2000 2001 58% 67% Investment in govt securities to assets 65% The corporation has kept majority of its current assets in the government securities.

014. 008 54.105 AS ON 31 DECEMBER-------1997 ASSETS CURRENT ASSETS Cash Stores & Spares ( stationery) Income Tax Refundable Sudary Debtors Outstanding Premium Interest. Dividends. 719 1.532 1.477. 743 1. 872 012 166 DEPARTMENT OF MANAGEMENT SCIENCES IUB 4. 241 2. 142 25.788.450 729.292 . 144 56. and Rents Amount Due from other persons Balance Of Compensation Agents Balances Investments Govt Securities 1998 1999 PKR(000) 2000 2001 1. 133 42.702. 791 43.038. 929. 896 2. 874 1. 1.337 13.969.017 517. 618 219 194 TFCs 120. 830 1.391.627 . 260 1. 728 2. 58. 46. Investments 296 239 648 Total Investments (net) 35.173.419.781 .419. 800 282 870 Certificate of 1. 699 2. 40.694 . 111.189 . 768 56. 212 35.0 Investments 000 00 00 Preferred Stocks 4. 001 443. 212 3. 286 5.7 36 56. 283 8.157 93 .220. 337 2.037. 617 482.476.455. 90. 952 886. 718 2.886 . 008 55.969 1.250 .084 . 587 3.211 . 000 4. 46. 008 42.152 3. 893 56.200.889 . 214 480. 083 54. 410 1. 008 55.107 2.861 .644.277 23.709. 008 64.0 1. 167 54.516. 051 2. 339 1.7 4. 750 177. 760 14.526 . 4.7 750 50 50 (-) Diminution in Value of 47. 961 24.165 23. 077 17. 734 56. 011 783.545 1. 39.446 885.

205 1.265 .614. 508 183. Fixture and Equipment(net) Vehicles Total Fixed Assets Total Assets EQUITIES & LIABILITIES Current Liabilities Sundry Creditors premium and Other Deposits Agent's balances DEPARTMENT OF MANAGEMENT SCIENCES IUB 42. 326 60. 000 4. 000 243. 684 10. 821 269. 397 62. 1.828 3. 961 162 779 168.4 081 218 79 2. 086 3. 5.614.828. 60. 223 51. 078 374. 68. 104 242. . 000 4.087.410.326 2.223 51. 326 3. 705 521 379 55.076. 397 62. 223 51.708.622. 684 10. 628 62.223 51. 072 600.777 . 48. 663 141 121 23. 950 9. 3.023.988. 2.105 Total Current Assets Non Current Assets Loans Wapda Bonds U.072 600.363 .410.781 86 6. 950 9. 1. 000 243.410 . 13.191.387 . 950 9. 55.758. 000 243. 000 243. 2.410 .441 2. Stocks Ordinary Stock In Pakistan Ordinary Stock Outside Pakistan Holding Subsidiaries Cos.420 1.910.484 .057 65. 000 4.K Govt Securities Bonds. 182 418 728 776.835 . 920 571 023 3.326 4. 793 101. 000 243. 397 62. 397 62. 072 600. 684 10.034. 275 262. 557 3.930 . 657. 950 9.468.828.204 3.614. Total Non-Current Assets FIXED ASSETS Hourse Property (net) Furniture.527 73.199 .828.143 .287 81. Debentures. 000 4.507. 164. 461 279.614 . 94 494.574. 684 10. 684 10.664 . 223 63. 368 303.828 . 000 4.828 . 1. 648 232. 072 600. 3.422.044.072 600.614 . 471 353.236 1. 950 9.430.

2.498. 416 2.554. 000 18. 546 2. 62.065 350.043. 110 2. 000 18. 808 392. 869 4.631 . 477 37. 332.513. 000 18.126. 340 50. 730 2. 699 846 791 33. 825 5 630 591 17. 55.234 . 118.031 402. 94. 404 5 784 91 58.509. 325 597 307 51. 148 248.877 91 19. 808 608.8 59 95 7 6. 729 5.416 . 808 581. 530 452 4. 777 95 .464 1. 033 67. 000 18.6 78 13. 808 478. 191 172 547 100. 122 8 14 97 34.602. 029 68. 428 74. 808 359.122.742.713 . 000 18.331 37. 389 3.970 . 918 663 246. 440 3.771. 55. 866 18. 333 4. 008 350. 62. 853 74. 167 729 449 279.223.105 264 Balance of compensation Payable Amount Due to other persons outstanding Claims Provisions Loans 785 House Property Other receivables total provisions Total current liabilities LONG TERM LIABILITES Balance of Life Insurance Fund Within Pakistan Outside Pakistan Provision for Gratuity Total Long Term Liabilities Equity Paid Up capital Reserves General Reserve Exchange Fluctuation Reserve DEPARTMENT OF MANAGEMENT SCIENCES IUB 357 5 91 39.730. 529 3. 520 131. 165 591 31.960 413.299 . 361.949 . 076 107.059 .979 750. 430 2. 242 6 680 34.7 60 10.182 2. 061 100.

441 Current Assets Debt Ratio Investments to total assets Loans to Total Assets Local Investment to total assets Investment in govt securities to assets 1997 1224% 99% 65% 7% 8% 65% 1998 1066% 99% 65% 6% 8% 67% 1999 1160% 99% 68% 6% 7% 68% 2000 1399% 99% 59% 5% 6% 58% 2001 1300% 98% 67% 5% 6% 67% RECOMMENDATIONS FOR OFFICE FORCE  There is much number of office staff.585 81. 60. 68.387 .484 . 510. There are five departments and eighty-five persons are working in each department. 846. 661 950. 869 816 841 55. 182 418 728 600.057 627.574. 496.105 total reserves Total Equity Total Liabilities & Equities 377. 585 1.377 . 410.191. 869 816 841 477. DEPARTMENT OF MANAGEMENT SCIENCES IUB 96 . 661 73.034.

 There should framing courses after selection for marketors.  Officers don't like to move the claim files and public have to move around the office many times.They should not only be told the ways DEPARTMENT OF MANAGEMENT SCIENCES IUB 97 .  Officers have rude behaviour towards general public. late fee charges will get incremented as the days pass and corresponding officer will be responsible for that.  Officers have not got qualified doctors. Then it is suggested that Saturday's holiday should be rounded. these doctors have not any criteria to be fulfilled.. so as the investment. Now after thirty days. SLIC provides an A.  Attachment and detachment are not on merit basis. Therefore many problems arise after death claims. FOR MARKETETING FORCE  Selection is not ideal.g.  Officers claim about marketors that they have got much holidays and move about to their will.  The regular working hours are much and also the overtime rate is low. e.  Manual work takes much time so every office should be provided with a computer. they should be on merit and recruitment officers give much facilities to their relatives and friends.  Now it has been suggested that a person should just ask for the claim only once and get his receipt.C and carpet to deputy manage's room but officers have given them to assistant manager.105  The salary is low. this should be cared. minimum qualification for selection should be graduate. At least.

therefore arrangments should be made that a policy holder himself gets his premium paid. Sometimes marketors get all the amount of policy by fraud. so that policy holder doesn't even think of surrender. Quantity:. Attending the courses should be must. And another important fact:Quality:. Besides this every person is earning 9-15 thousand per month. It may be that much people get insured because of their reference. There should be four courses each year and attending the two courses should be must for everyone.No matter that policy holders are less but they should be of long duration. The criteria for promotion should not only based upon buisness but personal skills should also be considered. therefore he should get full time job rather than part time. DEPARTMENT OF MANAGEMENT SCIENCES IUB 98 .There should be a much number of policy holders because every person gets rid after the first time. Marketors have got their commision in the first premium therefore they are excited at first premium's payment but after that they doesn't pay attention towards the rest of policy's payment and organization has to bear the heavy loss. Therefore their pay should be based upon persistency and renewal. Marketors should guide about every aspect of claim that affects the policy.105           to improve their income but also improve their attitude and behaviour. There should be a fixed amount on a particular number of policies.

utilities.105 FOR STATE LIFE INSURANCE CORPORATION: The bills of area manager get wasted. The problem creates when zonal head gets his illegal works done and there is no check and balance there. FUTURE PLANS  The corporation aims at consolidating its buisness in future years. by capitalizing on new buisness growth. communications etc. DEPARTMENT OF MANAGEMENT SCIENCES IUB 99 . The correct name should be "Income Insurance". So it should complete its web site to get people informed about its working.  It is the Pakistan's biggest financial institution but till now it hasn't completed its own web site.  Advertisement should be in those areas where people know little about SLIC.  To give special attention to check inflationary pressures on expense particularly salaries. So every department should have its own pad to prevent this malfunction.  The name "Life Insurance" is not appropriate because it doesn't only include life buisness.  Some departments haven't got pads. They aren't directly linked to zonal head. improving policy holders service and reducing avoidable expenses..

to ensure better return to the policy holders. DEPARTMENT OF MANAGEMENT SCIENCES IUB 100 .Estimate of future expenditures in relation of the income. GLOSSARY ACTUARY:Actuary is a person employed by the insurance company who calcualtes risk involve in insurance therefore also calculates the premium payable by insurer. ANNUITY:.  To improve overseas buisness by opening branches in Middle-East. BUDGET:.105  To identify and utilize the resources in rural areas in order to increase and mobilize savings from these areas.  To streamline and expand training facilities.An annuity is a periodic payment made by life insurance company to an annuitant. The payment is made by the company in return for premium which is paid either in a lump or as a series of periodic payments.  To lay greater stress on real investments in suitable property and ordinary shares.

generally of a long term nature.105 CAPITAL MARKET:.Wealth gained through saving.The person or party who is safe guarded against the risk in exchange of premium. INSURANCE:. SKETCH OF REPORT DEPARTMENT OF MANAGEMENT SCIENCES IUB 101 .Assets.Insurance is one of the device by which risk may be reduced or eliminated in exchange for premium. MONEY MARKET:. SAVING:.A market where you can borrow or lend money in long term basis. PREMIUM:.It is a market where you can borrow or lend money in short-term buisness. INSURER OR ASSURER:. INVESTMENT:.Excess of income against expenses. INSURED OF ASSURED:.It is a periodic payment paid by the insured to the insurer against the risk bearing.The party which protects another against the various risks. SAVINGS:. that are not used in normal operation of a buisness and that managment does not intend to convert to cash within the next year.

105 Introduction Bonuses SWOT Analysis Insurance Companies Insurance Evaluation Insurance in Pakistan Life Insurance in Pakistan State Life Insurance in Pakistan State Life Insurance in Bwp. Routine Bonuses Terminal Bonuses Special Bonuses Interim Bonuses Strengths Weakness Opportunities Threats DEPARTMENT OF MANAGEMENT SCIENCES IUB 102 .

D. (built in) 76. 05.Rural Life.Jeevan Sathi.Three Payment Plan.Single Premium End. 36. 17.Shad Abad.SCHEME DEPARTMENT OF MANAGEMENT SCIENCES IUB 103 . Loan Fee.(Non built in). Life ALICO. 18. 73. 09.Child Protection. & Marr.Optimal Maturity. 07. Investment Portfolio Income Analysis Outgo Life Fund Ratio Analysis Liquidity Ratio Activity Ratio Profit Ratio Solvency Ratio 75. 04Premium.Sunehri Policy. 06.105 Departments Marketing Products Competitors Agency Department HRD Department New Business Department PHS Department P&GS Department Audit Department B&A Department Supplementary Contracts 01- Whole Assurance. 03Assurance.Joint Life. 19. N.Child Edu. EFU Metropolitan Endowment Commercial Postal Life Adamjee Progressive Performance Analysis ADB AIB FIB TIR WP SWP Calculation Overtime Persistency Premium Late Fee.

# points of concidration ho total departm urs no of ent hours 9 7 8 10 10 10 10 10 9 9 10 9 8 7 6 Marketin g 1 Ch.channels 2 Mr. head .altration 3 Mr.Imtiya Organizational stucture z Histotry and introduction Division Auditing Competetors 5 Mr. Basic training course PHS 30 19 New busniss Auditing 43 HRD DEPARTMENT OF MANAGEMENT SCIENCES IUB 104 .Ishfaq Calculations.maturityclaims deathcliams. loan.105 Internship Procedure Plan sr.Shubbir marketing management stretigies products(plans) supplimentry contracts Mk. surrenders survival.Rafiq under writing policy case allotment 4 Mr. M.

Freed 8 Mr Asad 42 P&Gs 28 Total # of hours = 246 hours No of days =36(estimated) No of weeks =6 weeks DEPARTMENT OF MANAGEMENT SCIENCES IUB 105 .Tufail 24 B&A 7 Mr. agency department head Future plans payroll.disbursment costing policy holders payments basic salary and grading Office transfer.advertizing Distribution.105 Hashmi Bounuses benefits of life insurance Selling process Organizational stucture Mission and objuctives Strategies.facilitation 8 7 7 6 7 8 9 9 8 10 7 8 10 9 9 35 Agency 6 Mr. reconsilation Comission.promotions purchasing .