Internship Report Adamjee Insurance Co

Internship report
Adamjee Insurance Company Ltd
Submitted By
Submitted To
Principal Hailey College of Banking & Finance

Prof. Dr. Mubasher Munawar Khan
Hailey College of Banking & Finance,

University of the Punjab, Lahore
ACKNOWLEDGMENT
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I am very thankful to “ALMIGHTY ALLAH” the most beneficent, the most
merciful who has given the strength to complete this task and with the
deepest gratitude and warmest affection.
I am also thankful to my Supervisor “Sir Farooq” Assistant Manager Claim

department. Without whose guidance and support it would not have been
possible for me to accomplish this.
I acknowledge my learning of Internship to Sir. Haroon Iqbal head of claims

department who gives me a lot of knowledge about insurance and guides me
in Academics and ethics as well. Without whose guidance and support it
would not have been possible for me to accomplish my Internship.
Furthermore, I am indebted to the staff of the Adamjee Insurance, from

where I have gained much experience regarding operations and workings of
the Insurance Company.
I dedicate my work done to my beloved Professors of Hailey College of

banking and finance.
Last but not the least I convey my credit and thankfulness to my institute,
Hailey College of Banking and Finance, University of Punjab, without
whose support and guidance it would be much difficult for me to achieve this
task successfully.
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Paste Internship lettrt
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Table of Contents
Chapter #01 Page. No
Introduction…………………………………………………………………….…………………….…………………..05
historical background……………………………………………………….…….……………………......……...06
Vision and Mission Statement…………………………………………………….….…….…………………...08
Core values ……………………………………………………………………………….……………….…….……....08
Awards/Achievements…………………………………………………………………….……………………...…08
BOD / Management of AICL……………………………………………………………………………………….09
Objectives, strategies, Quality policy…………………….………………………………………….…….….14
Departments of Adamjee……………………………………………………………………………………………….….….16
Chapter #02
organogram……………………………………………………………….……………………………………..…………34
centralized or decentralized……………………………………………………………………………..……………35
organizations statement……………………………………………………………………………………..………...35
Chapter #03
Products of Adamjee Insurance Company…………………………………………….…….….……….….41
Adamjee life Insurance……………………………………………………………………….…………….…………68
Adamjee Window Takaful……………………………………………………………………………….…….…….70
Marketing Strategies…………………………………………………………………………………….….………….71
Chapter #04
Financial analysis………………………………………………………………………………………………………….74
Annexed balance sheet……………………………………………………………………………………….…………74
Annexed profit and loss account…………………………………………………………..……………………….76
Annexed cash flow……………………………………………………………………….………………………………..77
Horizontal analysis……………………………………………………………………………………………………..….78
Vertical analysis………………………………………………………………………………………………..……………82
Ratio analysis………………………………………………………………………………………………..……………….84
Swot analysis………………………………………………………………………………….…………………………….90
Chapter #05.
Place of the work and assignments I handled………………………………………………….……………96
Chapter #06
Recommendations………………………………………………….…..……………………………………….99
Conclusion …………………………………………………………..………………………………………...…100
References ………………………………………………………………………………………………………………………………100
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Chapter #01
Introduction of organization
Introduction:
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Adamjee in the business of providing a full range of non-life insurance products and services
customized to meet the varied needs of a wide spectrum of businesses and industrial clients as
well as individuals, providing Property, Marine/Aviation, Motor and other Miscellaneous
products. Its market-driven team of inspired and technically qualified insurance personnel,
specializing in civil, mechanical, metallurgy, electronics and having overseas linkages, is on-call
for necessary professional advice always. It is its policy not only to provide protection and risk
reduction but help clients develop preventive capabilities to avert major perils and calamities.
Over the years Adamjee have developed a full range of insurance services. Its clients include
both large and medium sized organizations in all sectors of the economy.
In addition, AICL insures sensitive Petrochemical and complex Industrial Risk projects of great
value. AICL specializes in insuring Engineering and Telecom concerns, whereby it has secured
the greatest share of clients in those sectors. On the other end of the spectrum, AICL services
the primary industries of Pakistan by covering several Cement Factories, as well as numerous
Textile and Sugar Mills. Assuming the role of a leader in Pakistan's Insurance Industry, AICL
pioneered the coverage of Energy Risks. AICL has also secured the business of Foreign Concerns
entering Pakistan to execute and assemble construction or infrastructure development
projects. AICL is the principal insurer of Kidnap & Ransom, Professional Indemnity, Product
Liability and other specialized lines in Pakistan
Historical Background:
Adamjee Insurance Company was formed in September 28, 1960 as a Public Limited Company,
founded by Abdul Hamid Adamjee, Abdul Razak Adamjee and Ashraf Adamjee and is listed on
all three stock Exchanges of Pakistan. The company is also registered with Central Depository
Company of Pakistan Limited (CDC). Adamjee is involved in the business of General Insurance.
The company started its operations with Rs. 2.5 million which has grown amazingly in the past 5
decades. As of 2014 paid up-capital of company is 3.4 billion. AICL enjoys a strong competitive
edge in the insurance industry due to strong assets base, paid-up capital, reserves, balanced
portfolio and steady growth in gross premium. AICL is building Threshold against premium.
AICL comprises of insurance has superior management teams, sustainable competitive
advantage and is fully equipped with identifiable value enhancement opportunities. The
Company has originated volumes across the spectrum of businesses, entered joint partnerships
with key players in the financial sector and expanded its business across Pakistan and Dubai.
Adamjee Acquisition History:
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Mian Mansha’s entire group was holding directly and indirectly more than 40 per cent of the
equity thus causing the company to be a subsidiary of Mansha group.
A suit has been filled by AIC, Abdul Hamid Adamjee, Abdul Razak Adamjee and Ashraf Adamjee
against Muslim Commercial Bank (MCB) and Mian Muhammad Mansha in which the plaintiff
says
"The Defendant's intention to take over the Plaintiff (through a hostile takeover) is
against the public policy and if allowed by the court it would also cause injury to the general
public as a whole, as it would destroy a blue-chip and well-managed company by allowing a
nominee of the bank to interfere in its business set negative precedent as regards the aspects
of good governance of the company Cause with the same ease as the Defendant has to acquire
by hostile takeover of companies in Pakistan.
But Adamjee registers also shows that MCB holds 40% shares in actual MCB has taken over
these shares when people, who had pledged these shares, failed to discharge their liabilities
and MCB also maintains investment portfolio which include AICL. Since AICL was making profit
and issuing bonus shares, MCB's investment in AICL has also grown which give base for the
acquisition of AICL.
Then finally the honorable court after listen the plea of both Parties, decide based on facts in
favor of Mansha Group. So, in April 08, 2002
Mian Mansha had acquired a controlling position in Adamjee Group, the country's largest non-
life insurance company.
The diversity of AICL's portfolio allows the Company to be the insurer of choice, for an array of
clients and needs. Whilst expanding our customer base, AICL dedicates as much effort in
maintaining the highest level of customer satisfaction. Its cornerstone philosophy is to provide
premium quality service along with forwarding the maximum benefit to its clients. This
commitment is exhibited in the importance AICL places on excellence, integrity and ethical
behavior. These values promote confidence, especially in our clients for whom security is vital.
In addition, AICL insures sensitive Petrochemical and complex Industrial Risk projects of great
value. AICL specializes in insuring Engineering and Telecom concerns, whereby it has secured
the greatest share of clients in those sectors. On the other end of the spectrum, AICL services
the primary industries of Pakistan by covering several Cement Factories, as well as numerous
Textile and Sugar Mills. Assuming the role of a leader in Pakistan's Insurance Industry, AICL
pioneered the coverage of Energy Risks. AICL has also secured the business of Foreign Concerns
entering Pakistan to execute and assemble construction or infrastructure development
projects. AICL is the principal insurer of Kidnap & Ransom, Professional Indemnity, Product
Liability and other specialized lines in Pakistan
Vision Statement:
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“Our will is to Explore, Innovate and Differentiate. Our passion is to provide leadership to the
Insurance Industry.”
Mission Statement:
“To deliver outstanding profitability for the benefit of our customers, our employees and our
shareholders while providing premium service “
Core Values:
 Integrity:
Transparency & Honesty without Compromise
 Humility:
Empathy, Self Esteem and Respect in all Relationships
 Fun at Workplace:
Work Life Balance
 Corporate Social Responsibility:
Service to Humanity
Achievements/Awards to AICL through the Years:

 IFS rating of AA+ (Double A Plus) by PACRA
 Certificate of ISO 9001 by Lloyd’s Register Quality Assurance
 Best Financial Strength Rating of B+ by A.M. BEST Company
 Consumers Choice Award 2013 - category for “Best General Insurance Company”
 Brands Icon & Brands of the Year Award 2013 - in the category of “fire and property
Insurance
 Brands Scientist Award 2014
 Fire & Safety Award 2014
 Corporate Social Responsibility - CSR Award 2014
 Environment Excellence Award 2014
 AICL has once again received Corporate Social Responsibility - CSR Award 2015 in the
category of "Business Excellence Award."
 Adamjee Insurance once again wins "Environment Excellence Award 2015
 Quality Standard Award 2015.
 Environment, Health, Safety & Security Award 2016.
Management of Adamjee Insurance Company:
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Chairman:
Mian Umer Mansha

Umer Mansha has been the Chief Executive and Chairman of Nishat Mills Ltd.
since September, 2007. He is a Director of MCB Bank Ltd. and also the Chairman
of the Risk Management & Portfolio Review Committee and a member of the
Business Strategy & Development Committee and Physical Planning and
Contingency Arrangements of the Bank. Umer Mansha completed his education
from Babson College, Boston, USA. He also serves as the Director of Nishat Dairy
(Pvt.) Ltd., Nishat Developers (Pvt.) Ltd., Adamjee Life Assurance Company Ltd.,
Nishat Agriculture Farming (Pvt.) Ltd, Nishat Farm Supplies (Pvt.) Ltd. and Nishat
Hotels & Properties Ltd. Umer Mansha is also a member of the Pakistan Business
Council.
Directors:
 Fredrik Coenrard de Beer

Fredrik started his working career at Cape Town and later transferred to the
northern part of South Africa, Pretoria - the capital of South Africa. He holds
professional qualifications from SAAF (Aircraft Maintenance) Rand Afrikaans
University (Human Resource Development Certification) and has a Master’s
degree from the University of Cumbria. He started his insurance career in 1984
and attended various Senior Management Development programs with Old
Mutual (CDC / MDC I & II) and industry-related training institutes. He was
awarded the prestigious recognition of "Best Leader of the Year" award by Old
Mutual. He acted in the capacity of Director during his management career in
South Africa with MDBCS, as well as internationally during his career in the
UAE. He is currently the CEO of Adamjee Life Assurance Company Limited.
 Ibrahim Shamsi
Ibrahim Shamsi is the Chief Executive of Aladin Water & Amusement Park,
Karachiand Joyland, Lahore and is also the Chairman of Cotton Web (Pvt.) Ltd. He is involved in
social services as trustee of Jamiat-e-Taleem ul Quran and has served on the editorial board of
college and university publications. Ibrahim earned his MBA from the Lahore University of
Management Sciences (LUMS). He serves as the Director of Joyland (Pvt.) Ltd., Dupak
Developers Pakistan (Pvt.) Ltd., Siddiqsons Ltd., Siddiqsons Tin Plate Ltd., Siddiq Sons Energy
Ltd., A.A. Joyland (Pvt.) Ltd. and Dupak Tameer Ltd.
 Imran Maqbool
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Imran Maqbool serves as the President & Chief Executive Officer of MCB Bank Limited. He is a
seasoned professional with over three decades of diverse banking experience. Before taking on
the CEO position, he was Head of Commercial Branch Banking Group where he successfully
managed the largest group of the Bank in terms of market diversity, size of workforce, number
of branches on a country-wide basis and diversified spectrum of products. In earlier roles, he
worked as Head Wholesale Banking Group-North, Country Head MCB Sri Lanka, Group Head
Special Assets Management and Islamic Banking. Prior to joining MCB Bank in 2002, Maqbool
was associated with local banking operations of Bank of America and Citibank for more than
seventeen years. He worked at various senior-management level positions in respective banks.
He was also elected as the Chairman of Pakistan Banks’ Association (PBA) during 2014. Apart
from MCB Bank Limited, he is currently on the Boards of MCB Financial Services Limited, MCB
Employees Foundation and MNET Services (Pvt.) Limited, where he serves as Chairman.
Maqbool holds an MBA degree from the Institute of Business Administration (IBA) Karachi and
MS in Management from MIT Sloan School of Management
 Muhammad Anees
Muhammad Anees is a leading businessman/industrialist who is highly regarded in the

business community. He belongs to a respectable Khawaja family of Multan which has been in
business for more than 100 years. Muhammad Anees is a Director of Masood Spinning Ltd.
since July, 2003. He is also a Member of the Board’s Audit
Committee. He holds a Master’s degree in Business Administration with a specialization in
Marketing from Bahauddin Zakaria University, Multan. He went on to attend the London School
of Economics for additional courses. He is involved with the development of the Group’s textile
operations, particularly the procurement of cotton, yarn, machinery and other assets. Having
good experience in sales promotion, he also promoted Group’s products in the local as well as
international markets. He remained the President of Multan Chamber of Commerce & Industry
as well as D.G. Khan Chamber of Commerce & Industry and was also the Chairman of All
Pakistan Bed sheets & Upholstery Association plus Senior Vice Chairman of All Pakistan Textile
Mills Association for the period 2007 to 2009.
 Muhammad Umar Virk
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Muhammad Umar Virk is the Chairman of Hira Textile Mills Limited & Hira Terry Mills Ltd. He is
a qualified and seasoned professional with over 30 years' experience in textile trade and
industry. Umar founded Hira Textile Mills in 1995 by acquiring a spinning unit near Lahore. He
successfully turned around this unit through skillful expansion and up gradation by setting up a
new value-added towel manufacturing unit. Muhammad Umar Virk did his graduation in Textile
Engineering in 1976. He serves as the Director of Hira Textile Mills Ltd. & Hira Terry Mills Ltd.
 Shaikh Muhammad Jawed
Shaikh Muhammad Jawed was the Director of Din Leather (Pvt.) Ltd. and has a vast experience
in running a modern tannery. Due to his technical expertise, Din Leather has received several
export performance awards, merits as well as best export performance trophies for the export
of Finished Leather from Pakistan and the Company’s
contribution in earning valuable foreign exchange for the country. Due to excellence in quality
and supply, the Company has also received a Gold Medallion Award from the International
Export Association, UK. Shaikh Muhammad Jawed has received technical education in Leather
Technology from Leather Sellers College, UK. He also serves as a Director of Adamjee Life
Assurance Company Ltd.
Advisor:
 Mian Muhammad Mansha
Managing Director:
 Muhammad Ali Zeb
Chief Financial Officer:

 Muhammad Asim Nagi
 A.C.A

Executive management Team:
 Muhammad Asim Nagi (Chief Financial Officer)
 Adnan Ahmad Chaudhary (Commercial)
 Asif jabbar (Technical)
 Saleem Iqbal (Reinsurance)
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Committees:
Audit Committee:
 Shaikh Muhammad Jawed (Chairman)

 Ibrahim Shamsi (Member)
 Muhammad Umar Virk (Member)
 Umer Mansha (Member)
Human Resource Committee and Remuneration Committee:
 Umer Mansha (Chairman)

 Ibrahim Shamsi (Member)
 Muhammad Anees (Member)
 Muhammad Ali Zeb (Member)
Investment Committee:
 Umer Mansha (Chairman)
 Imran Maqbool (Member)
 Muhammad Ali Zeb (Member)
 Muhammad Asim Nagi (Member)
Underwriting Committee:
 Umer Mansha
 Asif Jabbar
Claim Settlement Committee:

 Syed Ameer Hassan Naqvi
Reinsurance Committee and Co-insurance:
 Muhammad Salim Iqbal

 Asif Jabbar
 Adnan Ahmad Chaudhary
Risk Management and Compliance Committee
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 Asif Jabbar
 Tameez ul Haque
 Muhammad Furqan Uddin
Company Secretary:
 Tameez ul Haque
 F.C.A
Auditors:
 M/s. KPMG Taseer Hadi & Co.
Chartered Accountants
2nd Floor, Servis House,
2-Main Gulberg, Jail Road,
Lahore - 54000, Pakistan
Shariah Advisor:
 Mufti Muhammad Hassan Kaleem
Associated Companies:
 MCB Bank Limited
 Nishat Mills Limited
BANKERS:
 Askari Bank Limited
 Bank Al-Habib Limited
 Bank Alfalah Limited
 Dubai Islamic Bank
 FINCA Microfinance Bank Limited
 Habib Bank Limited
 MCB Bank Limited
 MCB Islamic Bank Limited
 Meezan Bank Limited
 Mobilink Microfinance Limited
 National Bank of Pakistan
 NIB Bank Limited
 Soneri Bank Limited
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 The Punjab Provincial Cooperative Bank Limited
 United Bank Limited
 Zarai Taraqiati Bank Limited
OBJECTIVES:
 Strengthen customer relationship through customer satisfaction by providing excellent

service and quality products.
 Maintain a healthy balance between Profitability and Volume and have a balanced
portfolio mix.
 Increase investment returns from its growing funds and absolute return strategy.
 Consolidate market share through offering new products and to focus our approach in
areas where our presence is small.
 Establish modern management system and adopting latest techniques conforming to
international Standards needed for an efficient organization.
STRATEGIES:
To pursue strong growth by:
 Adopting industry’s best practices and increasing economies of scale

 Leveraging opportunities across the industry
 Development of Human Resource through training and exposure to modern
technologies and management techniques
 Expansion of business and improving customer relationship management through wide
network of branches locally and internationally.
 Development in information Technology to have an effective Management Information
System.
 Pursue best Reinsurance arrangements.
 Establish effective Risk Management System
Quality Policy:
The management and employees of Adamjee Insurance demonstrate commitment in satisfying
customer needs for managing the risk assessment in General Insurance.
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In alignment with satisfaction of customer needs, processes are established to support the
vision and values of the company.
Adamjee use QMS-9001 as a tool to continually review and improve the effectiveness of their
implemented systems. Adamjee regularly assess our processes and practices, to build on their
relationship with all stakeholders including customers, shareholders, strategic partners and
employees.
Compliance of Code of Conduct:

The Board of Adamjee Insurance Company Ltd has adopted a Code of Conduct (COC). The ‘COC’
defines acceptable and unacceptable behaviors. The Company hereby requires directors and its
entire staff both executive staff and subordinate employees, the observance of the high
conduct standards in the conduct of its business activities. All employees must well understand
and meet the standards of professional and personal integrity expected of them to protect and
safeguard the reputation of the Company. Contravention of “COC” will be regarded as
misconduct.
Corporate Social Responsibility :

i. Compliance and Ethics
AICL has incessantly reiterated that its Compliance Performance Standards are applied to all
areas of business. AICL ensures to increase compliance and ethical understanding throughout
its management hierarchy. Initiatives taken include internal awareness campaigns, specific
trainings in detailed regulatory areas and focused efforts on sensitive areas such as conflict of
interest.
ii. Health, Safety & Environment
These become then core of the Company’s activities. Adamjee Insurance’s management and
employees share the belief that good HSE contributes positively and productively to business
development and success.
iii. Committed to Excellence
In an era of intense hectic competition, AICL stays afloat with its unwavering commitment to
operational and financial discipline in producing unparalleled results; keeping its promises and
continually fulfilling its customers’ need.
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Departments of Adamjee insurance
1. Underwriting Department
2. Claims Department
3. Accounts Department
4. Re-Insurance Department
5. Human Resource Department
6. Marketing Department
7. Investment Department
1. Underwriting Department
Adamjee underwriting department evaluates the risk and exposures of potential clients. It
decides how much coverage the client should receive, how much they should pay for it, or
whether even to accept the risk and insure them. Underwriting involves measuring risk
exposure and determining the premium that needs to be charged to ensure that risk.
The function of the underwriter in this is to acquire or to "write" business that will make the
insurance company money, and to protect the company's book of business from risks that they
feel will make a loss. In simple terms, it is the process of issuing insurance policies. Adamjee like
other insurance company has its own set of underwriting guidelines to help the underwriter
determine whether the company should accept the risk.
The information used to evaluate the risk of an applicant for insurance will depend on the type
of coverage involved. For example, in underwriting automobile coverage, an individual's driving
record is critical.
The factors that underwriting department uses to classify risks should be objective, clearly
related to the likely cost of providing coverage, practical to administer, consistent with
applicable law, and designed to protect the long-term viability of the insurance program. The
underwriters may either decline the risk or may provide a quotation in which the premiums
have been loaded or in which various exclusions have been stipulated, which restrict the
circumstances under which a claim would be paid. Depending on the type of insurance product
(line of business), this insurance companies use automated underwriting systems to encode
these rules, and reduce the amount of manual work in processing quotations and policy
issuance.
Major Underwriting Functions

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One of the most important functions of the underwriter is creating a policy that will
be beneficial to both the customer and the insurance company. The underwriter must weigh th
e risks of insuring a customer. Then, the rates will be established which a customer pays in retur
n for the insurance company agreeing to cover theserisks. The underwriter must create a policy
that is suitable to the customer yet not too liberal as to expose the insurance company to
excessive claims. Also, an underwriter must be able to analyze information and can make
decisions very quickly. Since change constantly occurs in both business and personal situations, the
underwriter must be flexible and able to adapt policies to meet the needs of the customer.
Process of Underwriting:
The actual process by which risks are underwritten will vary from one class of business to
another and will also depend on an insurer ‘s general approach. What we can do is to look at
underwriting in a general sense in relation to personal insurances, life assurance and commercial
insurances.
Personal Insurance
The underwriting of personal insurances is relatively straightforward. The main source of
information about a risk will come from the proposal form and if there is anything
else which an individual underwriter may want, he would write to the proposer. A large volume
of proposal forms for various classes of personal insurance will be dealt with
by branch offices of insures. Much of the work will be mechanical in nature and the vast bulk
will be processed with little difficultly in many cases the underwriting is delegated to some other person,
quite outside the insurance company. This is the case for example in travel insurance where the
policy is sold by a travel agent or airline. A proposal form is completed by the proposer and the policy issued
almost immediately from a pad of policies. Possibly with an upper monetary limit on the sum
insured. Underwriting in these cases is almost a matter of making sure that a completely undesirable
proposer is not allowed cover. There will be little discrimination among those cases which are accepted
and he brooked or other agent will have little or no flexibility in pricing.
Commercial Insurance
The underwriting of commercial business insurances is a much more complicated and involved task.
Commercial insurance ranges from small shops and factories to large multinational
corporations with operations in many countries throughout the world. The degree of
complexity of the underwriting will obviously vary with sheer size of the risk but certain basic
principles are still recognizable. In large cases this is simply impossible. For one thing, the
details of a risk could not be confined to a proposal from. There is just too much information to
condense on to a form no matter how large the form may be. This is where the broker may help. As we
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mentioned earlier, the broker in these large cases will be able to prepare the case for the
underwriter. This may mean site inspections by the broker and the preparation of the plans and
reports on the relevant aspects of the risk. This documentation, which may be extremely extensive, is then
passed to the underwriter and negotiation can commerce on the terms, conditions, cover and price.
Survey of Risk:
Even where a broker is involved (and certainly when there is no broker). The underwriter will
involve a surveyor. This risk surveyor is the person who acts as the eyes and ears of the
underwriter, Adamjee employ specialist surveyors in the different areas of risk such as fire and
security business interruption and so on. The surveyor will eventually prepare a report for the
underwriter and in the case of many property risks will also draw plan. The report will cover
several features, including.
 A full description of the risk. This may include the plan of the premises in the case of
property risk, the process being carried out at the premises, details of the insured etc.
 An assessment of the level of risk. This will consider all the relevant hazard factors, both
moral and physical, and provide the underwriter with some idea of the degree of risk
which he is being asked to accept. The surveyor will also be able to comment on
surrounding property as in the case of fire insurance, for example, this may have an
impact on the level of risk.
 A measure of maximum probable loss (MPL). This MPL, or estimated maximum loss
(EML) as is known by some, is the maximum that the surveyor believes will be the
subject of a loss.
Calculation of Premium
When they have looked at the role of the underwriter, the underwriter processes itself and the
part played by reinsurance. These have examined, in their different ways, the way in which risks
are accepted insurers and the financial steps which insurers take to protect themselves.
Adamjee insurance company has two final aspects the insurance transaction to examine.
 First, which business of pricing and paying for the insurance service
 second is the making of claims
The last task of the underwriter, as they listed them, was to calculate a suitable premium. The
premium which an insured pay represents that insured ‘s contribution to the common pool.
This contribution must be fair and must reflect the degree of hazard which that insured brings
to the pool. In other words, the premium must be sufficient to:
 Reserve for outstanding claims
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Not all claims will be settled during the year for which the premium has been paid and
hence the premium must consider those claims still to be settled at the end of the year.
This is particularly true in the case of claims involving personal injury. They can take
several years to settle and the insurer must bear them in mind when calculating the
premium.
 Contingent reserve
Adamjee also consider the fact that there can be contingencies, beyond their control,
which may involve a liability to meet claims at some time in the future. Insurers do this
by making reserves.
 Meet all expenses
As the Adamjee have several operational expenses to meet in the running of the
business these include:
 salaries to staff of Adamjee
 office costs of all forms ‘
 advertising
 Commission.
The premium collected from each insured must be sufficient in aggregate to cover cost
of operating.
 PROVISION FOR PROFIT
Finally, Adamjee ensure that there is provision for a reasonable profit. The majorities of
insurers are answerable to shareholders and must provide a reasonable return on the
investment which these shareholders have made in the company. In the case of mutual
companies, the members will still be looking for a reasonable surplus being made to
meet the objectives of the mutual.
Arriving at the premium, however, is not simply a matter of calculating the correct
premium by a mathematical formula.
Adamjee takes several important commercial considerations. These will include:
 Inflation
The company must be aware of the changing value of money. Claims will be met
tomorrow, out of premium received today. The implication of this is that the cost of
settling a claim may rise, not due to any increase in the magnitude of the claim itself
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 Interest rates
As Adamjee is the insurance company so it generates funds from investment. These
funds generate substantial investment income upon which insurers depend. Variability
in interest rates has also to be considered in premium calculations.
 Exchange rates
Adamjee also seen that a substantial volume of premium income is derived from outside
of the United Kingdom. Whenever there is movement of money across national borders,
there is the added problem of exchange rate risk. The insurer has to take account of this
risk and the cost of managing it has to recover through the premium which insured ‘s
pay.
 Competition
The final commercial factor is that of competition. The Adamjee is not alone in the
market place and increasingly there is strong competition. Charging too high a premium
may result in the loss of business
2. CLAIMS DEPARTMENT
As we know that insurance is a promise which is selling. So Adamjee sell insurance and
promises to pay all covered first party claims in a timely manner and to defend and indemnify
all third-party cases. It also promises to act with the utmost good faith towards their insured.
But, this only happens once - when the insured has a claim and once the loss happened to the
client provide the claim report to company the work of claim department starts.
FACTORS OF EFFECTIVE CLAIM MANAGEMENT
Following are the factors that Adamjee insurance company considers may affect to attract the
customer for further business if adopted.
 Claims reporting
 Receipt of claims by the company
 Claims files and procedures
 Fraud detection and prevention
 Claims assessment
 Claim processing
 Complaints and dispute settlement
 Supervision of claims-related services
 Market practices
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CLAIMS REPORTING:
This company underwrites insurance policies in easily understandable language. Policies spell
out what is covered and what is not covered. If necessary, plain language explanations could be
an addendum to the legal language. The company draws the attention of the policyholder
/claimant/ beneficiary both when he/she signs a policy (for policyholders only) and when
he/she reports a loss on his/her duties related to claim reporting which include:
 To try to minimize losses

 To report claims in a timely fashion
 To co-operate in the investigation by providing the company with all relevant
information and copies of official documents regarding the damage (accident, loss, etc.)
 To authorize the company to handle necessary inspections and assess the extent of the
damage prior to any repairs or replacement
 To ensure that the claims reporting phase proceeds as smoothly as possible, this
insurance company sends to the policyholder/claimant/beneficiary within a reasonable
period (beginning from when the loss is reported)
 An appropriate claim form (when the loss reporting is made in writing) for the type of
policy -prepared either by an individual insurance company or at the national level by
companies or the supervisory authorities together with instructions and useful
information on how to comply with the terms of the policy and the legitimate
requirements of the company
 The information necessary to help them to report the claim.
RECEIPT OF CLAIMS BY THE COMPANY
Adamjee or its broker is contacted as soon as possible on happening of event of claim.
 Company send acknowledgement to make insured known that his notification is

received by the company.
 If there is any delay insured must be made informed of it.
 Company asks for the documents required in settling the claims.
 Company informs the insured about his right of subrogation if insured is not known to.
CLAIMS FILES AND PROCEDURES
Once a claim has been filed and, when applicable, after any additional documents that are
required to process the claim have been received, the file established by a company contains
the following documents.
 Intimation letter
 Claim form duly filled and signed by insured
 Claim filing number
 Policy number
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 Name of the policyholder/claimant/beneficiary
 Summary sheet showing development / review of the claim
 Type of insurance concerned
 Opening date of the file
 Date of loss
 Reporting date
 Description of the claim
FRAUD DETECTION AND PREVENTION
Insurance fraud has existed ever since the beginning of insurance as a commercial enterprise.
Fraudulent claims account for a significant portion of all claims received by insurers, and cost
billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of
insurance. Insurance crimes also range in severity, from slightly exaggerating claims to
deliberately causing accidents or damage. Fraudulent activities also affect the lives of innocent
people, both directly through accidental or purpose full injury or damage, and indirectly as
these crimes cause insurance premiums to be higher. Insurance fraud poses a very significant
problem, and governments and other organizations are making efforts to discourage such
activities.
The chief motive in all insurance crimes is financial profit. Insurance contracts provide both the
insured and the insurer with opportunities for exploitation. One reason that this opportunity
arises is in the case of over-insurance, when the amount insured is greater than the actual value
of the property insured. This condition can be very difficult to avoid, especially since an
insurance provider might sometimes encourage it to obtain greater profits. This allows
fraudsters to make profits by destroying their property because the payment they receive from
their insurers is of greater value than the property they destroy.
Insurance companies are also susceptible to fraud because false insurance claims can be made
to appear like ordinary claims. This allows fraudsters to file claims for damages that never
occurred, and so obtain payment with little or no initial cost. So Adamjee claims department
take precaution to find fraud claim.
CLAIMS ASSESSMENT
When any claim is presented to company, following points are taken into account by the claim
department of Adamjee:
 Any method of considering specific factors such as depreciation, discounting or

negligence on the part of the victim is clearly outlined in the claim file.
 Any loss evaluation methods used by the company are reasonable and coherent.
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 This company uses internal methods for assessing claim values based on the applicable
law of the jurisdiction.
 Company use claims adjusters or intermediaries also ascertain their competence
qualifications.
 Company notifies policyholders/claimants/beneficiaries whenever it uses independent
claims adjusters or intermediaries.
 When the damage is assessed through a written estimate made on behalf of the
company, the company sends the policyholder/ claimant/ beneficiary a copy of the
document used to set the amount of compensation.
CLAIM PROCESSING
 Claims handling procedures are in written form and each member or at least one member is
provided with that written regulations or procedures so that manuals could be
consulted at time when required. Otherwise the staff is also qualified. Internal Audit is
also conducted either by Internal auditors appointed or by the employees themselves as
one employee checks the work of consecutive employee this helps to save the cost
of internal auditor and the efficiency is also achieved.
 The Company keeps claimants informed of the progress during the claims process. The
company provides information on when payments, repairs or replacements are
expected to be made, and, if necessary, explains why additional time is required.
 When the company decides to call on outside parties (i.e. loss adjusters, solicitors,
surveyors, etc) it informs claimants of this fact, gives the reasons for this decision and
explains the role that these outside parties will play in processing the claim.
 When a final payment or offer of settlement is made, the company explains to
claimants what the payment or settlement is for and the basis used for the settlement.
 The company documents their claim files to be able to address questions that may arise
concerning the handling and payment of the claim. If the claim is denied, then company states
explicitly to the claimant the policy provision, conditions or exclusion on which the
denial is based.
 If the amount offered is different from the amount claimed, then company explains the reason for
this to the claimant. When the company is not responsible for meeting all or any part of
the claim, it notifies the claimant of this fact and explains why.
COMPLAINTS AND DISPUTE SETTLEMENT

When the claimant files a complaint, the company:
 Acknowledges receipt of the complaint within a reasonable period
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 Provides claimants with explanations on how their complaints will be handled and on
the procedures to be followed
 Provides information to claimants on internal and external dispute settlement
procedures
 Processes complaints promptly and fairly
 Keeps claimants regularly informed of how their complaints are progressing
 Provides a final response in writing within a reasonable period.
 If the claimant is dissatisfied with the final response that claimant has been sent by the
company, claimant can activate an internal appeals process. Claimant can also appeal to
the dispute settlement procedures available outside the company (for example, the
handling of complaints by the supervisory authorities). In case of a dispute, the claimant
should be informed by the company of the existence of these appeal procedures.
SUPERVISION OF CLAIMS-RELATED SERVICES

The insurance supervisory authorities conduct examinations on claims management services
especially where problems are suspected.
In these cases, the following elements are considered:
 Possible access to non-confidential claims data for all open and closed files within a
specified time frame (e.g. for the current year and the two preceding years)
 Maintenance of sufficient and appropriate information on claims files
 Use of the appropriate type of claim form for the type of insurance
 Proper qualification of the claims department ‘s employees
 Valuation of claims payments per company procedures
 Appropriate tracking of the nature and number of complaints related to claim
management process
 Monitoring of the proportion of claims that result in litigation
 Compliance with procedures
 Regular internal audit practices on claims files
 Appropriate internal claims procedure manuals
 Proper procedure for coding and statistical reporting of losses
 Performance in terms of the speed of claim settlements
MARKET PRACTICES
The public authorities promote the implementation of a benchmark exercise regarding the
claims process or a specific part of this process.
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3. Accounts Department
Most of us do maintain a written record of our income and expenditure. The idea behind maintaining
such record is to know the correct position regarding income and expenditure. The need for keeping a
record of income and expenditure in a clear and systematic manner has given rise to the subject of
'book-keeping'.
The quantum of money must be adequate in relation to the needs. But mere adequacy of

money will not do one must take care of its proper utilization. For this it would be necessary to
exercise economy and maintain proper books of account. It is possible to increase the amount
of saving through proper management and effective control of the expenses.
At the end of the year the true result of the economic activities of a concern must be made
available otherwise it will not be possible to run the concern. In case of a business concern the
profit or loss at the end of a year must be ascertained, because, the amount of profit must be
adequate in relation to that of investment made in the business. If it is not so or if there is a
loss, it is an indication of some defects existing somewhere in the management of the business.
All such defects need to be detected and analyzed and appropriate measures taken for their
rectification.
But it is only possible, if proper books of accounts are maintained in the business concern. So, the
importance of book keeping to a business is the same as that of fresh air to a man to exist. Without
bookkeeping records a business would meet death, though not instantly, but in a short time.
Moreover, if proper books of accounts are not kept in a business, the amount of profit cannot
be ascertained and it will not be possible to distribute the profit among the owners of the
business. The income tax dues to the Government cannot also be paid. In the absence of books
of accounts misuse or defalcation of money will remain undetected. The owner and other
parties interested will not be able to have any information about the condition of the business.
So Adamjee insurance company maintains its accounting department by keeping eye on this
department need in growing and competitive business market.
FUNCTIONS OF ACCOUNTING DEPARTMENT
The basic functions of an accounting department in Adamjee like other insurance companies
are to look after the finances of a company. This can be anything from paying bills to making
sure that the employees that work for the company get paid.
The four main accounting functions are:
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I. Making Payments
Making sure that all bills and claims are paid by the company, on time and at the least cost
possible. If there is a discount for paying quickly, the accounts department will usually pay the
bills as soon as possible so that the company spends as little money as they possibly can. They
are responsible for all outgoing payments and making sure that what they are paying is correct.
II. Payroll
The accounts department must ensure that the employees are all paid correctly and on time.
They also must make sure that all of the employees are paying the right amount of tax and that
they have not made any mistakes with tax brackets and government payments on behalf of
the employees.
III. Receiving Payments
The accounting department must also receive payments and make sure that these are all
processed correctly. These will all be payments for the services or products the company has
provided and they must ensure that they have paid all relevant tax. There will also be an
element of chasing up payments and making sure that all the payments are received when they
should be.
IV. Budgets
They are also responsible for giving budgets and estimates of what they feel the company
should be spending. These may be split by department or function and they must also predict
budget figures for years to come so that the company knows what it should be spending and
more importantly, charging to customers
ACCOUNTS DEPARTMENT OF ADAMJEE INSURANCE COMPANY
Accounts department of Adamjee insurance have divided its duties into different sections.
 Cash Collection Section

 Cash Disbursement Section
 Salary Preparation Section
 Budget Preparation Section
 Agents Commission Section
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CASH COLLECTION SECTION
For the collection of cash, account department has a cash counter. When a policyholder comes
to pay his premium, they check whether the policyholder can pay his premium or not. If the
policyholder comes within 30 days after the due date, then he is considered as able to pay the
premium otherwise he is not able.
CASH DISBURSEMENT SECTION
For cash disbursement, first the voucher is prepared, and signed by authorized officer, for the
person to whom the payment is made. After these the cashbook is maintained, cheques are
prepared, and these cheques are sent to concerned party. Bank Statement is prepared daily
by the authorized banker regarding total collection and payments of cheques i.e. realization of
cheques. These banks Statements are punched into the computer.
SALARY PREPARATION SECTION
In Account Department Salary of the employees is calculated. Different allowances are offered

to the employees. Loan facilities are available for the employees. Tax is deducted from salary. A
provision of recoveries of the loan is made.
BUDGET PREPARATION SECTION
Budget is prepared annually. Proposed budget is sent to principal office. The funds of different
heads of proposed budget are transferred to zonal office.
COMMISSION SECTION
The commission of business brought by agents is calculated in the Commission Section.

4. Re-Insurance Department
This department is considered with distributing and shredding the risks admitted for insurance
by reinsuring all or a substantial part of such risks with re-insurers. The reinsurance department
grants the company an accommodating capacity enables it to accept easily and quickly
insurance operations with large amounts or risks which it could not have accepted in
the absence of the facilities granted to it through reinsurance and subsequently maintaining the
financial stability of the company about the results of its works. There are two basic methods
of reinsurance:
Facultative Reinsurance
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In facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of
the risk assumed by a specified insurance policy. Facultative reinsurance is negotiated
separately for each insurance contract that is reinsured. Facultative reinsurance normally is
purchased by ceding companies for individual risks not covered by their reinsurance treaties,
for amounts more than the monetary limits of their reinsurance treaties and for unusual risks.
Underwriting expenses and personnel costs, are higher relative to premiums written on
facultative business because each risk is individually underwritten and administered. The
ability to separately evaluate each risk reinsured, however, increases the probability that the
underwriter can price the contract to more accurately reflect the risks involved.
Treaty Reinsurance
It is a method of reinsurance in which the insurer and the reinsurer formulate and execute a
reinsurance contract. The reinsurer then covers all the insurance policies coming within the
scope of that contract. The reinsurance contract may oblige their insurer to accept reinsurance
of all contracts within the scope (known as "obligatory" reinsurance), or it may require the
reinsurer to give the reinsurer the option to reinsure each such contract.
Types of Reinsurance
 Proportional
 Quota share
 Surplus reinsurance
5. Marketing Department
The marketing concept is the philosophy that firms should analyze the needs of their customers
and then make decisions to satisfy those needs, better than the competition. Today most firms
have adopted the marketing concept, but this has not always been the case. In 1776 in The
Wealth of Nations, Adam Smith wrote that the needs of producers should
be considered only with regard to meeting the needs of consumers. While this philosophy is
consistent with the marketing concept, it would not be adopted widely until nearly 200 years
later.
The Marketing Process
Under the marketing concept, the firm must find a way to discover unfulfilled customer needs
and bring to market products that satisfy those needs. The process of doing so
can be modeled in a sequence of steps: the situation is analyzed to identify opportunities, the
strategy is formulated for a value proposition, tactical decisions are made, the plan is
implemented and the results are monitored.
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Marketing Mix
Four P's are the parameters that the marketing manager can control, subject to the internal and
external constraints of the marketing environment. The goal is to make decisions that center
the four P's on the customers in the target market to create perceived value and generate
a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some
examples of the product decisions to be made:
 Brand name
 Functionality
 Styling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty
 Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
 Pricing strategy (skim, penetration, etc.)

 Suggested retail price
 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of distribution
decisions include:
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 Distribution channels
 Market coverage (inclusive, selective, or exclusive distribution)
 Specific channel members
 Inventory management
 Warehousing
 Distribution centers
 Order processing
 Transportation
 Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Marketing communicationde
cisions include:
 Promotional strategy (push, pull, etc.)

 Advertising
 Personal selling & sales force.
 Sales promotion.
 Public relations & publicity
 Marketing communications budget
Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of
themarketingconcept when physical products represented a larger portion of the economy. Tod
ay, with marketing more integrated into organizations and with a wider variety of products and
markets, some authors have attempted to extend its usefulness by proposing a fifth, such as
packaging, people, process, etc. Today however, the marketing mix most commonly remains
based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this
framework remains strong and many marketing textbooks have been organized around it.
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6. Human Resource Department
Human Resource Department is the most important department on which the internal system
of whole organization is based. It motivates the employees and takes in account the incentives
and tactics required to keep the qualified and experienced employees with them and to make
them work in the way organization wants. We can sum up it as under:
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Chapter #02
Organizations structure
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Organogram:
Chairman
(Umer Mansha)
CEO
Audit Committee Company secratory
(M.Ali Zeb)
Managing Directors
HR remmunaration (Ahmed Ebrahim, Ali M.Mahoon, Fradrik
committee coenrard bee, Imran Maqbool, M.Umar Virk,
Shahid Malik, Shaikh Muhammad Jawad)
Exeutive Executive
Executive Diretor Executive Director Head of compliance
commercial Technical Director Finance Diretor Re- and Claim
(Adnan Ahmed ch.)
Insurance ( M. JAWAD )
(Asif Jabbar) (M. Asif Nagi)
(M. Salim Iqbal)
Centralized or decentralized?
Adamjee insurance company limited has centralized system in which all the work are done in
head office due to this decision making system is also late.
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Organizational Statement:
HR Department:
Employee Recruitment process of Adamjee Insurance Company
Whenever Adamjee enlarge its business Adamjee require more skillful persons so they recruit
the right person, in the right place, at the right time All those involved in recruitment activities
should be equipped with the appropriate knowledge and skills Adamjee management After
selecting the candidate by HRM department within the process of 2-3 weeks of recruitments
they issue the joining letter to selected candidate after one month.
The recruitment process includes;
1. Profile the position:

Getting this first step right will make the rest of the recruitment process easier and faster Get
an in-depth understanding of the role you are hiring for. Why is a new employee needed? What
duties and responsibilities will the successful candidate have? What skills or abilities are?
Required to succeed in the role? And where does this role fit within the wider business
structure? So all the description related to the job is given in the Advertisement of job.
2. Prepare the job description and person specification:

These are written descriptions of
 The role you are recruiting for

 The type of candidate needed to fill it.
Management of Adamjee make the job description in a way that the candidates will find the
offered job vacancy easily by this way of job description Management of Adamjee assumes they
don't want to be drowning in a sea of CVs from applicants who are unqualified or unsuitable for
the job
3. Choose where to hunt for candidates

Management of Adamjee Insurance Company uses different ways to announce the employee
requirement like:
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Internet Recruitment: This means advertisement of recruitment through Face book, twitter
and other social websites.
4. Review applications (Adamjee will have a lot)

Adamjee look for Good candidates and good candidates quickly and clearly highlight how their
experience aligns with the available role. So, they revisit your job description and person
specification for a reminder of what you are looking for, Adamjee management review all the
application by candidates.
5. Conducting interviews
Then the Management of Adamjee reached the interview stage. They give invaluable contact
time to their candidates; panel gives the deep-dive into each applicant's professional
background to see how well they might be suited to your vacancy. They avoid the unnecessarily
confusing curveball questions and look to find out as much about each interviewee's experience
as they can.
 Always conduct panel interviews

 Never conduct telephone or other indirect interviews
6. Drawing up a contract and offering the job

Once the management of Adamjee have shortlisted the top candidates. Then they check the
candidate's background to help make sure they are everything they claim to be they keep in
mind that Hiring the wrong person can be eye-wateringly costly
7. Help your new hotshot settle in

Management of Adamjee is aware about the fact that being the new guy/girl often feels
awkward and difficult and uncomfortable so management win loyalty points by making a
special effort to help new candidate settle in, rather than just showing them to their desk and
expecting them to knuckle down on your new account.
Hiring when vacant Spaced Arises:

Adamjee hire the employees in case when the employees leave the organization due to any
reason the process is as similar as regular hiring but the reason of leaving the job of previous
employee may be:
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Stagnation:
People don't want to think they're locked into a groove and will come to the same place and do
the same thing every day for the next 20 or 40 years
Lack of recognition:
Even the most selfless people want to be recognized and rewarded for a job well done. It is part
of who we are as human beings.
Death of Employee:
If the previous employee died automatically vacant space arise which means new employee is
required so Adamjee recruit new employee to fulfill the place of previous.
Retirement:
Every employee after specific time goes to retirement after their retirement vacant space arises
and company hire new employees
Employees get bored:

Top-performing employees need to be challenged in their work. If people aren’t engaged
creatively and don’t have a chance to develop their skills
Conflict with Management:

If the employees have any conflict with senior management of Adamjee or with other
employees and they leave the organization, then a vacant space arises and Adamjee recruit
new employees
And many more reasons…
Incentives to Employees:
Employees of Adamjee Insurance Company are paid by their fixed salaries on monthly basis
exactly on time in their respective bank Account at Muslim Commercial bank incentives are
mostly not announced and if Announced so only awarded to Upper management of Adamjee.
Promotions and sale made through:

Direct selling:
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Direct selling accomplishes exactly what the name suggests – marketing and selling products
directly to consumers. In this model, sales agents build face-to-face relationships with
individuals by demonstrating and selling products away from retail settings, usually in an
individual’s home.
Earned Media:
Earned media is the publicity that is created through efforts other than paid direct
advertisement. It can take a variety of forms that is by television, radio mention, newspaper,
articles or editorial.
Internet Media:
Adamjee make Internet marketing or online marketing, combines web and email to advertise
and drive e-commerce sales. Social media platforms may also be included to leverage brand
presence and promote products and services. In total, these efforts are typically used in
conjunction with traditional advertising formats like radio, television and print.
Fast Fact: 97% of consumers search for businesses online.
E-News Letter by Adamjee:
 Aspire Issue
 Online Weekly Business news
Events for Sales promotion by Adamjee:
 6th Asia Conference on Micro insurance
Led by Asia, micro insurance has grown rapidly over the recent years. Asia has
accounted for some 80% of the current micro insurance initiatives. Given the population
base and their socio economic status, there is increasing scope for dynamic growth.
Many insurance companies are rapidly positioning themselves to capitalize on the
emerging growth opportunities in this field.
 It was an honor for Adamjee Insurance when Captain Mehmood Sultan Divisional Head
Corporate Division was invited as a speaker at the 6th Asia Conference on Micro
insurance in Manila. Captain Mehmood gave his presentation on “Insurance Industry’s
Value Proposition to the Bottom of the Pyramid: Social Versus Commercial Aspects of
Micro insurance”.
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 He explained that over the years Micro Insurance had provided the
following:
-Protection to people living below poverty line from financial crisis in case of
serious illness, accident in the family and death/disability compensation of the
earning member(s)

- Improvement in health infrastructure, construction of new hospitals and
availability of doctors and lady doctors in rural areas
-Reduced the cost of treatment by negotiating package deals for common

operations, child birth and treatments.
 Sales Get Together 2012
A Sales Get Together was held in Lahore and Karachi on 7th and 12th May respectively.
This year the Company decided to arrange a fabulous and engaging evening for its entire
sales staff to honor the star performers and motivate the sales team to perform better
in the coming year. The Get Together kicked started at Lahore Avari where a red carpet
event was specially arranged and awards were given out to top performers.
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Chapter #03
Products of Adamjee insurance

company
Products of AICL:
1. Engineering insurance cover
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i. Contractors' All-Risk's (CAR) Insurance
ii. Electronic Equipment Insurance
iii. Erection All-Risk's (EAR) Insurance
iv. Comprehensive Project Insurance
v. Machinery Insurance
2. Property and Fire Insurance
i. Normal Fire and Allied Perils

ii. Property All Risks
3. Health Insurance cover
i. Hospitalization benefits
ii. Major Medical Benefits
iii. Critical illness Benefit
iv. Maternity Benefit
v. Outpatient Cover
4. Marine Insurance cover

i. Marine Hull and Machinery Insurance
ii. Marine Cargo Insurance
iii. Marine Umbrella Liability Insurance
5. Motor Insurance cover

i. Comprehensive Motor Insurance (Private Vehicle)
ii. Comprehensive Motor Insurance (Comprehensive Motor Insurance)
iii. Comprehensive Motor Cycle Insurance
iv. Motor Third Party Liability Insurance
6. Miscellaneous Insurance cover
i. Financial Lines Insurance

ii. Persona Accident Insurance
iii. Liability Insurance
7. Retail Insurance cover

i. Crop Insurance
ii. Livestock Insurance
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iii. Travel Insurance
iv. Retail Auto Insurance
8. Micro Insurance
Detail of Insurance Products:
1. Engineering Insurance:
i. Constructor’s All Risk(CAR INSURANCE):
Contractor’s All Risk covers civil works like construction of roads, bridges, dams, high rises,
housing projects etc.
This branch of engineering insurance offers comprehensive and adequate protection

Coverage
against all the risks involved in the construction of civil works of any kind, including surrounding
property and third-party claims in respect of property damage or bodily injury arising about the
execution of a project.
section1. Material Damage: 1

Material Damage
CAR insurance provides very wide cover. Almost any sudden and unforeseen loss or damage
occurring to the property insured on the construction site including surrounding property in the
care and custody of the insured leading to repair or replacement during the period of insurance
will be indemnified. The insurer will indemnify loss or damage due to the following causes:
 Fire, lightning, explosion

 Flood, inundation
 Windstorm of any kind
 Earthquake
 Theft, burglary
 Negligence, lack of skill, lack of experience, malicious acts
 Short-circuit, arcing, excess voltage
 Excess pressure or vacuum, tearing apart because centrifugal force
 Any other sudden and unforeseen event such as loss or damage due to collapse, foreign
objects, on-site transport of items to be constructed, etc.
section2. Third Party Liability:
41
This section indemnifies the insured against liability at law for damages and claimant's costs
and expenses due to bodily injury and / or death of any third-party person and / or damage
to third party property, arising from an accident during the period of insurance caused by
the activities of the insured whilst performing duties on the project site as described in the
policy schedule. s
 Loss or damage due to faulty design

 Defective material or casting
 Defects in workmanship Loss or damage due to willful acts or willful negligence of the
insured or of his representatives
 Consequential loss of any kind or description whatsoever, e.g. claims from penalties,
losses due to delay, lack of performance, loss of contract
 Loss or damage due to war or warlike operations, civil commotion of any kind as well as
acts on the part of strikers and locked-out persons
 Loss or damage due to nuclear reaction, nuclear radiation or radioactive contamination
Other Products Available
 Contractor's Plant and Equipment Insurance

 Advance Loss of Profit following CAR Insurance
Premium Payment Procedure:

Premium Payment Procedure
Usually premium is paid through cheque or demand draft addressed to Adamjee Insurance
Company Limited to its designated offices anywhere in Pakistan and UAE.
Claim Reporting process:
Essential documents for lodging claim:
 Duly filled-in, signed and stamped Claim Form

 Incident report
 Provision of a valid policy document covering the damaged asset
 Police report (F.I.R.) for theft/ burglary cases
Defects in Documents effecting claims:
 Delay in intimating the claim

 Non-provisions of claim form
 Wrong description of item affected / damaged
 Non provision of bills
 Non provision of F.I.R. in case of theft / burglary
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ii. Electronic Equipment Insurance:
Electronic Equipment Insurance covers all electric equipment’s with moderate power
requirements against material damage.
Coverage:
The term "electronic equipment" comprises, in the context of this insurance, all electrical and
electronic systems such as:
 Electronic Data Processing (EDP) equipment

 Electrical equipment for medical use
 Communication facilities
 Lighting and navigation facilities
 Equipment for research and materials testing
The Insurance Protects:
 The owner as the operator, the lesser, or the maintainer

 The hirer
Material Damage Coverage:
Material damage cover

Electronic equipment insurance is "accident" insurance on an all risks basis covering sudden and
unforeseen losses which physically affect the subject matter insured. Losses due to the
following causes give rise to the clear majority of all claims:
 Fire, lightning, explosion

 Smoke, soot, corrosive gases
 Water and humidity
 Failure of air conditioning
 Short circuit and other electrical causes
 Design, manufacturing, assembly and erection faults, defects in casting and material,
workshop errors, bad workmanship
 Faulty operation, lack of skill, gross negligence
 Malicious acts of workmen, employees, third parties
 Burglary
 Hail, frost
Main Exclusions
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 War or warlike operations, civil commotion of any kind as well as acts on the part of
strikers and locked out persons
 Willful acts or willful negligence on the part of the insured or of his representatives
 Faults or defects for which a third party (supplier) is responsible either by law or under
contract (losses covered by warranty)
 Wear and tear
 Failure or interruption of gas, water or electricity services (certain exceptions being
possible in special cases)
 Aesthetic defects, e.g. scratches on painted, polished or varnished surfaces
 Consequential loss and liability of all kinds (except for additional expenses for computer
operation)

 Incident report
Defects in Documents effecting claims:

iii. Erections All-Risk's (EAR) Insurance:
Erections All-Risk's (EAR) Insurance provides cover against all the risks involved in the erection
of machinery, plant and steel structure.
Coverage
This branch of engineering insurance offers comprehensive and adequate protection against all
the risks involved in the erection of machinery, plant and steel structures of any kind, including
surrounding property and third-party claims in respect of property damage or bodily injury
44
arising in connection with the execution of a project.
Section 1: Material Damage
EAR insurance provides very wide cover. Almost any sudden and unforeseen loss or damage
occurring to the property insured on the erection site including the surrounding property in the
care and custody of the insured leading to repair or replacement during the period of insurance
will be indemnified.
The insurer will indemnify loss or damage due to the following causes:
 Fire, lightning and explosion.

 Flood, inundation
 Windstorm of any kind
 Earthquake
 Theft, burglary
 Faults in erection
 Negligence, lack of skill, lack of experience, malicious acts
 Short-circuit, arcing, excess voltage
 Excess pressure or vacuum, tearing apart on account of centrifugal force
 Any other sudden and unforeseen event such as loss or damage due to collapse, foreign
objects, on-site transport of items to be erected, etc
Section 2: Third Party Liability:
This section indemnifies the insured against liability at law for damages and claimant's costs
and expenses due to bodily injury and / or death of any third party person and / or damage to
third party property, arising from an accident during the period of insurance caused by the
activities of the insured whilst performing duties on the project site as described in the policy
schedule.
Main Exclusions:

 Defects in workmanship
 Loss or damage due to willful acts or willful negligence of the insured or their
representatives
 Consequential loss of any kind or description whatsoever e.g. claims from penalties,
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Other Related Products:
 Contractor’s Plant and Equipment Insurance

 Advance Loss of Profit Following EAR Insurance
Claim Reporting Process

 Duly filled-in, signed and stamped Claim Form
 Incident report
 Provision of a valid policy document covering the damaged asset
 Police report (F.I.R.) for theft/ burglary cases
Defects in documents affecting claim:
 Delay in intimating the claim

 Non-provisions of claim form
 Wrong description of item affected / damaged
 Non provision of bills
 Non provision of F.I.R. in case of theft / burglary
iv. Comprehensive Project Insurance:
Adamjee Insurance is equipped with Comprehensive Project Insurance. This multi-line policy
provides cover to both erection and construction risks, also provides comprehensive protection.
Coverage:
Comprehensive Project Insurance offers all-in-one insurance protection for the entire duration
of a project. The multi-line policy provides cover for pre storage followed by
construction/erection, testing/commissioning and finally maintenance works.
The cover ceases once the project has been completed and/or handed over to the operator or
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the employer.
The policy can be taken out for civil engineering and infrastructure projects but also for the
erection of machinery, plant or steel structures of any kind. The insurance may be concluded by
the employer and/or by the contractors engaged in a project, including all subcontractors.
The comprehensive project insurance policy has the following structure:
 General section (Definitions, general exclusions and general conditions)

 Section IA (Material damage)
 Section IB (Plant, machinery & equipment)
 Section II (Third party liability)
 Section III (Delay in start-up)
In addition a marine cargo cover, including marine BI, marine (air, sea, and inland transit), and
marine DSU, could be attached in order to provide a comprehensive project cover from the
beginning. Depending on the type of project and requested scope of cover, the insured can take
out any of the above sections and tailor his Comprehensive Project Insurance Policy in
accordance with his insurance requirements.
The general section contains definitions, general exclusions and general conditions which are
applicable to all sections. The general exclusions are in line with those found in construction
and erection all risks insurance policies used in the international insurance markets.
Section IA (Material damage)
Represents a combined construction and erect ion all risks coverage and follows the same
insurance principles as outlined under CAR/EAR. This section thus provides a very wide cover
and is subject to only little standard exclusion.
Section IB (Plant, machinery and equipment)
It is based on the existing CPM policy, however, with the exception that it covers not only
construction and erection machinery and plant but also the temporary equipment (e.g. camps,
stores, scaffolding) installed at a construction or erection site and not only that belonging to the
contractors but also to the insured employer.
Section II (Third party liability)
It coverage is provided for third party claims in respect of property damage or bodily injury
arising in connection with the execution of a construction or erection project. This insurance
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section also contains a cross liability clause according to which the insurance applies to the
insured parties named in Section IA as if a separate policy had been issued to each party.
Section III (Delay in start-up)
It indemnifies the insured employer for a loss of the interest insured as a result of delayed
commencement of the business insured caused by an accident covered under Section IA.
Additional Covers:
Compared with the traditional CAR/EAR covers this new CPI also provides cover, among other
things, for:
The insurer will indemnify loss or damage due to the following causes:
 Material consequential loss as a result of manufacturer's fault

 Property belonging to or held in care, custody and control by the insured
 Professional fees, plans and documents
 Expediting expenses
 Off-site storage and inland transit
Main Exclusions

 Bad workmanship
 Loss or damage due to willful acts or willful negligence of the insured or of his
representatives
 Consequential loss of any kind or description whatsoever, e.g. claims from penalties,


 Incident report
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v. Machinery Insurance:
Machinery Insurance covers sudden and unforeseen damages to machinery due to accidents,
fire, collision or any other physical damage (as per policy conditions).Machinery Insurance was
developed to grant industry effective insurance cover for plant, machinery and mechanical
equipment at work, at rest or during maintenance operations. By its very nature, machinery
insurance is all risks "accident" insurance for machinery supplementing the coverage afforded
by fire insurance. Thus it covers unforeseen and sudden physical loss of or damage to the
insured items, necessitating their repair or replacement.
Loss or damage covered under machinery insurance is mainly due to one of the following
causes:
 Faulty design
 Faults at workshop or in erection
 Defects in casting and material and manufacturing
 Faulty operation, lack of skill, negligence, malicious acts
 Tearing apart on account of centrifugal force
 Physical explosion, flue gas explosion in boilers
 Electrical causes such as short circuit
 Shortage of water in boilers
 Storm, frost, drifting ice
Main Exclusions:
This policy does not cover the following loss and damages to:
 Exchangeable tools, e.g. dies, molds, chains, bearings, engraved cylinders
 Parts which by their use and / or nature suffer a high rate of wear or depreciation, e.g.
belts, ropes, wire, crushing hammers, object made of glass, rubber tires
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 Operating media e.g. fuels, catalysts, refrigerant liquids, gases, solids, and semi solids
 Loss or damages due to fire
 Loss or damages due to direct lightning
 Loss or damages due to chemical explosion (except flue gas explosion in boilers)
 Loss or damages due to aircraft or other aerial devices or article dropped there from
 Loss or damages due to theft, burglary or attempts there at
 Loss or damages due to collapse of buildings, flood, inundation, earthquake, subsidence,
landslide, avalanche, hurricane, cyclone, volcanic eruption
Other Products Available
 Boiler and Pressure Vessels Insurance

 Loss of Contents following Machinery Breakdown
 Contamination of Contents following Machinery Breakdown
 Loss of Profit following Machinery Breakdown
 Usually premium is paid through cheque or demand draft addressed to Adamjee

Insurance Company Limited to its designated offices anywhere in Pakistan and UAE.

 Incident report

2. PROPERTY AND FIRE INSURANCE:
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Fire insurance policy provide compensation to the insured person or firm in the event of
damage to the property insured (i.e. building, stock, machinery and other contents)
caused by fire and lightening.
Standard cover:
 Fire
 Lightning
 Explosion (due to domestic boiler only)
Additional Covers in form of Perils:
 Riot and Strike

 Malicious Damage
 Explosion
 Atmospheric Disturbance (Flood, inundation, etc)
 Earthquake, Fire and Shock
 Aircraft Damage
 Impact Damage
 Burglary and Housebreaking
 Electrical Clause "B"
 Removal of Debris
 Loss of Rent
Main Exclusions
 Theft / Burglary House Breaking

 Willful Act
 Gross negligence
 Loss to bullion, documents, currency etc.
 Loss of earnings/ Business Interruption
 Losses arising out of War and War like situations
 Terrorism, Civil Commotion, Popular / Military Rising, Insurrection etc.
 Nuclear Fission/ Biological etc.
 Spontaneous Combustion
 Loss or damage to the property insured by order of public authority
 Misrepresentation
Other Property Products Available:
 Property All Risks

 Comprehensive Machinery Insurance
 Consequential Loss due to Fire / Business Interruption
 Terrorism
 Hotel Owner’s All Risk Insurance
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 Home Insurance
 Shop Owner’s Comprehensive Insurance
 Loss or damage to the property insured by order of public authority
 Misrepresentation
 Property All Risks
 Comprehensive Machinery Insurance
 Consequential Loss due to Fire / Business Interruption
 Terrorism
 Hotel Owner’s All Risk Insurance
 Home Insurance
 Shop Owner’s Comprehensive Insurance
Premium payments:
Premium payments may be made by cheque or order in favor of Adamjee Insurance

Company Limited.
Claim Reporting Process:
To report a claim contact Claims Department Head Office - Adamjee Insurance Company
Limited via email / Fax / Letter or over the telephone as soon as possible.
Also, the Insured should report the event to the local law enforcement authorities as
soon as possible.
3. Health Insurance:
Adamjee Insurance is one of the largest Health Insurance providers catering to the health and
medical needs of the Corporate and SME sectors for their employees with customized benefits
structure and value added services. ADAMJEE guarantees you best quality services that not only
give you peace of mind for being insured by a leading and dependable insurer but also ensures
fast and speedy access to medical services when the need arises while promoting better
healthcare practices. Our customized Health insurance plans can cater for your needs.
The benefits covered under Adamjee Health Insurance care are briefed as follows:
Hospitalization Benefit:
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This benefit covers the eligible hospitalization treatment (other than pregnancy & childbirth)
due to illness, surgeries and accidents. Hospitalization expenses payment up to the "Per Annum
Limit" in case of different diseases and prolonged illnesses.
Major Medical Care Benefit (Optional)
This benefit enhances the hospitalization limit of in-patient expenses (except maternity related
expense) for each insured person for all eligible hospitalization expenses covered under
specified benefits structure.
Critical Illness Benefit (Optional)
These benefits cover the hospitalization for the following critical illnesses
 Myocardial infection
 Coronary artery disease requiring surgery
 Stroke
 Cancer
 Aids
 Renal failure
 Major organ transplant
 Multiple sclerosis
Maternity Benefit (Optional)
This benefit pays for medical expenses related to pregnancy and child birth up to the annual
maternity limit. It includes:
 Daily room rent

 Labor Room charges
 Operation theatre charges
 Anesthetics fee
 Pre & postnatal expenses coverage
 Circumcision
Out Patient Cover (Optional)
Adamjee also provides the option of out-patient benefits to its clients which pay for the
coverage of expenses incurred on medical treatment where a person does not need to be
hospitalized. The following expenses are covered under this rider.
General PR actioner / specialist consultation charges prescribed medicine and treatment
Prescribed Laboratory investigations.
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Additional Benefits
Terrorist cover: The policy also covers hospitalization and surgical expenses of any innocent
insured person (not taking part in terrorist activities) who is injured due to an act of terrorism.
International cover: The policy covers emergency hospitalization during overseas travel of
insured persons. However, the hospitalization expenses will be reimbursed in Pakistan in Pak-
Rupees on the basis of what it will cost for a similar procedure to be carried out in Pakistan.
Complimentary cover for accidental injury: The hospitalization annual available limit is
automatically increased by 25-50 per cent in case of hospitalization due to an accidental injury.
Exclusions
The items, conditions, treatments pertaining to the following and the related expenses are
excluded from the policy for which the company will not be liable.
 Cosmetic treatment or plastic surgery

 Treatment of infertility / sterilization and contraception
 Psychiatric treatment
 Personal expenses like, telephone, guest meals & non-medical items
 Self-inflicted injury
 Eye glasses, contact lenses, hearing aids, artificial limbs etc.
 Dental treatments
 Epidural Anesthesia (for painless delivery)
 Hospital admission not medically necessary or undertaken specifically to conduct
diagnostic or other tests or workup
 Congenital birth defects
 General Health checkups and preventive vaccinations
 Psychiatric treatment , mental or nervous disorder
 Charges for visiting consultant
Value Added Services
 Relationship Management functions for constant facilitation of our valued insured

members.
 24/7 Call Center facilities.
 24-hour Medical Hotline to facilitate all your queries regarding hospitalizations.
 Adamjee supports you as you make healthy choices every day gives you access to
special savings on selected pharmacies and diagnostic services all over Pakistan
Adamjee and your Wellness:
54
 Adamjee’s ‘Medzine’ provides useful information regarding common medical issues
keeping you in touch with the current developments in health and helps you manage
your illness in a better way.
 Adamjee’s wellness programs aimed to focus on improving awareness and lifestyle
choices for you to improve your health.
4. Marine Insurance:
Marine Insurance covers damages to the shell and machinery of the vessel; cargo carried on the
vessel, and also offers protection against liabilities to shipping and transport related companies
I. Marine Hull and Machinery Insurance

II. Marine Cargo Insurance
III. Marine umbrella Liability Insurance
Why Adamjee Marine Insurance
 Strong treaty based overseas vessel hull insurance

 Coverage of international marine cargo trait other then Pakistan as well
 Coverage Demolition voyage in Pakistan
Adamjee Insurance offers marine coverage for the following:
i. Marine Hull
This policy covers losses / damages to the shell and machinery of the vessel caused
by maritime perils.
Benefits and Coverage:

This insurance policy covers the following perils, losses and damages:
 Perils of the seas, rivers, lakes or other navigable waters

 Fire and explosion
 Violent theft by outside persons: Jettison or Piracy
 Contact with land conveyance, dock or harbor equipment or installation
 Earthquake, volcanic eruption or lightning
 Accidents in loading, discharging or shifting cargo or fuel
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 Bursting of boilers, breakage of shafts or any latent defect in the machinery or hull
Negligence of Master Officers, Crew or Pilots
 Negligence of repairers or charter
 Barratry of Master Officers or crew Contact with aircrafts, helicopters or similar objects,
or objects falling there from
 Salvage charges when general average is declared
ii. Marine Cargo
Marine Cargo caters to losses /damages pertaining to cargo / freight carried on the vessels. We
provide all risks coverage as well as policies covering limited risks depending upon the needs of
our valued clients.
Our marine cargo insurance covers different risks depending upon the type of coverage sought
by our customers. The policy provides:
 Protection against "All Risk" for loss and damage to cargo resulting from a fortuity
during transit by sea, air, road and rail.
 Restricted coverage depending upon customer need other then All Risk for transit by
sea, air, road and rail.
iii. Marine Umbrella
Marine Umbrella Liability is a broad spectrum cover offering protection against liabilities to
shipping / logistics and transport related companies.
This insurance could be of substantial benefit to:
 Ship or vessel operators

 Freight forwarders, road transport operators, NVOC, railway operators, carriers by air,
ware house depot operators
 Ship agents, brokers and the services associated with shipping transportation
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 Terminal operators, stevedore’s operators, operators of container/trailer, storage and
repairers
 Port harbors or port authorities

 Incident report
5. Motor Insurance:
Motor Insurance policy is mandatory under the Motor Vehicle Act. Owing Adamjee Insurance
Company Limited Motor Insurance ensures that the owner of vehicle is protected from financial
losses, caused by damage or theft to the vehicle and third party liability.
Adamjee comprehensive motor insurance policy gives you the maximum coverage against
theft, accidental damage and third party liability with greater benefits, innovative features and
hassle free post and pre insurance processing. The major scope of the cover includes:
Loss or Damage Due To:
 Accidental means, Fire external explosion, Self - ignition

 Lightning, Flood
 Theft & Burglary
 Malicious Act
 Whilst in transit (Road & Rail)
 Terrorism, Riots & Strikes (Optional
 Property Damage
 Bodily Injury
 Death
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Value Added Services
 Call Center 24/7 with Toll Free Number 0800-00242

 Tracker at Insurance Company Cost (Optional)
 Adamjee Catch Card (Optional)
Some Exclusion
 Losses incurred outside geographical area of Pakistan

 Consequential loss depreciation wear and tear
 Mechanical or electrical breakdown failures or breakage
 Damage to Tires and Battery unless the Motor Car is damaged at the same time where
the liability of the company is limited to 50% of the cost of the replacement
Premium Payment Method:
Premium payment can be made through cash, cheque, pay order, demand draft and telex
transfer to the concerned Adamjee Insurance branch.
 The 24/7 Call Center registers the claim request after furnishing all personal details and
details of the policy taken for verification. 0800-00242
 Company appoints surveyor who inspects the vehicle and submits the loss report.
 After completion of required formalities and documents claim is processed by the
company immediately.
 On approval of the claim the payment cheque is released.
6. Retail Insurance:
i. Crop Insurance:
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Pakistan's agricultural sector contributes 23.3% to Pakistan's GDP. Being the largest sector yet
still widely disregarded in terms of insurance, Adamjee Insurance took an initiative to introduce
the concept of Crop Insurance.
Need for Crop Insurance
The time period from crop sowing to harvest is extremely crucial for the farmers. But the
unforeseen climatic changes only add to their worries. The field of agriculture is always exposed
to hazards of floods, droughts, rains, and hail storms. Most of the farmers in our country are
small cultivators and their financial resources are less and inadequate. All unforeseen
catastrophes bring disaster in their lives. AICL provides coverage to all farmers in these
disasters.
Why Adamjee?
 Farmer's assets are secured

 Brings stability to farmer's income
 In case of crop damage, insurance company covers loan taken from bank
 Farmers get financial aid for re-cropping
 Gives a secured and peaceful life
The scheme shall cover the production loans provided by the Banks to the farmers. The cover
provided under this policy is against unavoidable loss of crops or resulting directly from the
following:
 Flood
 Drought
 Excessive rain
 Hailstorm
 Frost
 Locust attack
 Disease and Insect attack
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To report a claim contact claims department via email / Fax / Letter or over the telephone as
soon as possible.
ii. Livestock Insurance:

Livestock
Pakistan has an agrarian economy and its livestock component being more than 50%. To meet
the growing needs of our farmers, Adamjee Insurance Company has introduced Livestock
Insurance.
Why Adamjee?
 Protection of Livestock
 Payment to the owner in case of death of livestock as per policy guidelines
 Guidance in case of illness of your livestock
 State-of-art methods of livestock care
 Professionally qualified veterinary doctors
Benefits and Coverage
The core emphasis of Adamjee Livestock Insurance is to provide peace of mind and secure
necessities related to livestock. The policy coverage includes:
 Death coverage of cattle due to natural causes, disease, injury, or accident.

 Specialized doctors assigned task of providing farmers with latest farming procedures
and practices.
Policies can be customized depending upon your specific needs.
To report a claim contact claims department b via email / Fax / Letter or over the telephone as
soon as possible.
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iii. Travel Insurance:
Designed to fulfill your traveling needs and to make your journey stress free in event of any
unforeseen event, Go Secure gives you 24/7 unmatched coverage against travelling
inconveniences whether you are travelling for business or leisure. Partnering with the world
renowned International SOS, we are just a call away to help in gaining health care services at
your destination. . Besides medical assistance, our customer care services also excel in
providing concierge, travel, cash emergency and a wide range of hotline services.
Make your journey a memorable one and leave your worries with us.
 International Travel Insurance Plans.

 Student Travel Insurance Plans.
7. Miscellaneous Insurance:
Miscellaneous class of business offers various kinds of insurance products that include Public
liability, Group Health, Personal Accident, liabilities associated with employers, insurance to
financial institutions and Aviation industry and many more.
The range of miscellaneous product is:
 Group Health Insurance

 Personal Accident Insurance
 Bankers Blanket Bond
 Plastic Card Insurance
 Public Liability Insurance
 Professional Indemnity Insurance
 Event Insurance
 Workmen's Compensation
 Employers Liability Insurance
 Aviation Hull and Liability Insurance
i. Money/ Financial Lines insurance:
Financial Lines insurance covers financial institutions against infidelity, professional indemnity
and directors' and officers' liability.
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Cash in transit/ cash in safe insurance:
A business may be robbed of cash either during normal business hours or after normal business
hours. Money may be stolen whilst in transit between the bank and the office or on any other
route. It’s Cash in Transit, Cash in Safe and Cash in Drawers policy will compensate the business
for such loss. The policy may be extended to cover accidental injury to employees
That may be injured during a holdup.
Fidelity insurance:
Should a company suffer a direct financial loss as a result of an employee's dishonest activities;
our Fidelity Guarantee policy will compensate the company for such loss.
Plate glass insurance:
Plate Glass is costly to replace and certain businesses find glass insurance an important part of
their insurance portfolio. This applies particularly to retail shops, department stores,
showrooms, etc. where shop fronts and window displays play an important role in attracting
business. The Glass Policy pays the cost of replacement of all external glass following breakage
at the business premises. The Glass Policy may be extended to cover special types of glass
which are very expensive to replace such as silvered, wired, ornamental, stained, lettered,
toughened and armored glass.
Burglary:
Property belonging to a business or a household may be stolen from the business premises or
the home. Its policy will compensate the business or the individual in the event of loss of
property from the insured premises following actual forcible entry on to the premises.
So Coverage available is:
 Infidelity of Employees: financial loss due to dishonest or fraudulent acts of

employees
 On Premises: Loss of property resulting from theft, burglary etc
 In Transit: Loss or damage to property whilst in transit anywhere in Pakistan in the
custody of employees
 Forged cheques are also covered
 Counterfeited currency
 Damage to office and contents arising from burglary, theft, hold-up and other
criminal act
Salient Features:
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 Easy to administer
 Electronic & Computer Crime liability can be included in the cover if required
 Claims made policy
Main Exclusions:
 Infidelity of directors, contractual employees / armed guards

 Errors & omissions on part of employee(s)
 Losses due to terrorism
 Losses due to fire and allied perils
 Areas of insurgency, hostilities, rebellion, insurrection, civil war, war (whether declared
or undeclared) and / or warlike situations
Other Products Available:

 Plastic Card Insurance
 Foreign Exchange Dealers Policy
 Directors & Officers Liability
 Safe Deposit Box / Lockers Insurance
 Electronic & Computer Crime Insurance
Premium Payment:
Premium Payment mode and settlement process has to be decided manually upon agreed
terms.
ii. Liability lines insurance:
Liability insurance provides coverage against legal liability to pay compensation to any third
party for accidental bodily injury or death and/or direct damage to the material property of any
third party arising due to any accident caused by Insured's business activities.
Coverage:
This insurance policy provides compensation in respect of legal liability by law to third party for:
Bodily injury and / or death
Property damage
Main Exclusions
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 This insurance policy will not cover the property of the insured or property under Care,
Custody and Control of insured or the property of the contractors or sub-contractors.
This policy would also not cover bodily injury to employees of insured whether
permanent or on contract nor would it cover bodily injury to employees of contractors
or sub-contractors
 This insurance shall not cover any type of direct or indirect pollution or contamination
liability
 Any claim associated with the products liability
 Pure Financial Losses
 Punitive Damage
 Asbestos related claims
 Employer's Liability/Workmen Compensation
 Road Traffic Act Liability (RTA) is excluded
 All losses, damage & liability arising directly or indirectly due to Transmission and
Distribution
 Failure to supply
 War, SRCC & Terrorism Exclusion
 Libel Slander defamation or malicious falsehood
 Slander of title of goods or other injuries falsehood
 All sorts of contractual liability
 Death of or bodily injury to any person caused by explosion or for damage to property
caused by fire or explosion
 Any consequence of war invasion act of foreign enemy hostilities (whether war be
declared or not) civil war rebellion revolution insurrection or military or usurped power
 Liability assumed by agreement
 Contractual Liability
 Product Liability
 Comprehensive General Liability
 Contractual Liability
 Employers Liability
 Pollution or Contamination Liability
 Professional Indemnity
 Aviation and Airport Operators Legal Liability
 Combined Liability for Security Organization
Premium payments may be made by cheque or pay order in favor of Adamjee Insurance
Company Limited.
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Limited via email/Fax/Letter or over the telephone as soon as possible.
Also, the Insured should report the event to the local law enforcement authorities as soon as
possible.
iii. Personal Accident Insurance:
This cover operates 24 hours and on worldwide basis. It provides for payment of specified
capital benefits following accidental death, bodily injury, permanent total disablement, and
permanent partial disablement, temporary total and temporary partial disablement caused by
an accident. This cover operates 24 hours and on worldwide basis. It provides for payment of
specified capital benefits following accidental death, bodily injury, permanent total
disablement, and permanent partial disablement, temporary total and temporary partial
disablement caused by an accident.
In addition the cover also provides reimbursement of emergency transportation to the nearest
Hospital and expenses incurred for preparation and transportation of the mortal remains of the
insured person from the place of death to home and can also be extended to cover medical
expenses.
Benefits:
This insurance provides benefits in respect of:
 Death
 Permanent Disablement
 Permanent total loss of both eyes and two limbs
 Permanent total loss of one eye and/or one limb
 Permanent total loss of one eye or one limb
 Permanent total loss of one finger or thumb or toe
 Temporary total Disablement
 Temporary total disablement Rs.5/- per Rs.1000 Sum insured per week
(Maximum up to 52 weeks)
 Temporary partial disablement Rs.1.25/- per Rs.1000 Sum Insured per week
 Emergency Medical Transportation (Maximum 5% of the Sum Insured)
 Repatriation or local burial expenses (Maximum 5% of the Sum Insured)
 Medical Expenses Cover (Optional: may be granted by charging additional premium)
Eligible Persons:
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Minimum Age Limit - 18 Years
Maximum Age Limit - 60 Years
The relaxation in age is at underwriter discretion.
Main Exclusions:
 Non-accident related death or bodily injury

 Intentional self-injury, suicide or attempted suicide whether felonious or not
 War, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution,
insurrection, strike, riot, civil commotion, military or usurped power
 Certain sporting and leisure activities such as motorcycling, mountaineering, riding or
driving in any kind of race speed
 Insured engaging in flying or air travel of any kind (other than as a passenger in any fully
licensed passenger carrying aircraft and / or helicopter but not as a member of the
Crew) or engaging in Hazardous sports like polo, steeple chasing, professional football,
mountaineering, winter sports, riding or driving in any kind of race and occupational use
of power driven woodworking machinery
 Insured being under the influence of / affected by intoxication liquor, drugs, AIDS or
insanity, child birth or pregnancy, abortion or miscarriage
 Death or bodily injury resulting from acts of terrorism
 Other products available for compensation to employees and individual against injuries
resulting from work related incidences or on leisure trips.
 Personal Accident Insurance for the crew and passengers of the aircraft
 Group Personal Accident for employees of firms/organizations
 Travel Insurance (Faaslay Asaan)
Premium payments may be made by cheque or pay order in favor of Adamjee Insurance
Company Limited

Limited via email/Fax/Letter or over the telephone as soon as possible.
Also, the Insured should report the event to the local law enforcement authorities as soon as
possible.
66
Adamjee Life Insurance Company
Another company with the same name of “Adamjee Life insurance” deals with life Assurance
Overview
The formation of Adamjee Life is a result of the partnership between Adamjee Insurance and
Hollard, South Africa. Both partners are well established and have a glorious legacy of providing
to quality need based insurance product and services to the Pakistani market for over 60 years.
The local market knowledge and international product and servicing expertise gives Adamjee
Life valuable consumer and market insight and the capability to provide comprehensive
solutions to the client’s insurance product and servicing requirements.
Their technical expertise exists not only in Pakistan but also South Africa through their
collaboration with Hollard Insurance Co. Ltd, the largest private insurance group in South Africa
which has invested sizeable amounts in emerging markets. Hollard has over 30 years of
experience in designing and distributing insurance products and providing unmatched service
to its clients.
Adamjee Life is backed by Nishat Group, which is one of the leading and most diversified
business groups in South East Asia with fixed/current assets of over Rs. 500 billion (US$ 5
billion), it ranks as the top business house of Pakistan. The group has strong presence in three
most important business sectors of the region namely Textiles (Nishat mills, Nishat Linen),
Cement (D.G. Khan Cement) and Financial Services (MCB), (Adamjee Life Assurance Co. Ltd.)
and (Security General).
Core Values
Adamjee life commitment is to:
1) Make a difference in the community and the society they serve through behaviors that
demonstrate their dedication.
2) Adhere to applicable laws and regulations governing their business conduct. Provide
intelligent and innovative solutions to meet their client’s requirement through a practical
approach which creates new value and accelerates delivery quality system and services.
3) Promote integrity in all their relationships.

4) create a dignified workplace based on honest, open and respectful communication as well as
fair and unbiased treatment of each other and all their partners.
67
Products of Adamjee life Insurance
 Individual Life Plans

 Mobile - Micro Insurance
 Corporate Plans
 Banc assurance
 Banc takaful
Individual Life Plans
Life today is full of uncertainties and it is essential for every individual to be prepared for every
possibility.
With the growing inflation, economic instability and continuously worsening security situation
in the country Future financial planning is essential to avoid falling prey to any mishaps or
financial. Adamjee Life individual life savings and investment plans offers you complete piece of
mind that no matter what the future might hold you and your family are financially protected
always.
Adamjee Life term plans provide various protection options per your own requirements.
 Investment plans
 Term protection plan
Mobile - Micro Insurance:
Adamjee Life has a vision of a secure Pakistan where every family is covered against
uncertainties of life and is financially protected incase a calamity strikes. The aim is to provide
financial assistance and protection to every individual no matter where they reside or which
socio-economic class they belong to:
 Zong
 UBL Omni
 Jazz Cash
 Easy Paisa
Corporate Plans:
Businesses today operate in a highly competitive environment and are increasingly under
pressure to excel in their respective industry. Recruitment and retention of good staff is
essential to business growth and a fundamental issue for most employers.
Considering this, it is vital for an organization to ensure that its employees are motivated and
performing at the optimum level. No longer are annual salary and a company car the prime
68
consideration for good quality staff. More and more, potential employees take into account the
overall benefits package on offer, including Pensions, Healthcare and Life Assurance benefits.
The group corporate solutions that Adamjee Life offers are
 Group life
 Group credit life
Bank assurance
Banc assurance in the distribution of insurance plans through the branch network of banks and
is aimed at making life insurance conveniently available to everyone. Adamjee Life with its real
time underwriting and policy issuance system, need based products and high quality service has
fast become one of the leaders in the banc assurance industry and has developed an image of
being banc assurance experts.
Some of their partner banks are
 MCB Bank
 Faisal Bank
 Mobil ink Micro Finance Bank
Window Takaful
Adamjee Life – Window Takaful Operations (Adamjee Family Takaful) has partnered with
multiple Islamic banks to distribute Shariah compliant/ Riba free investment and protection
solutions to their customers.
Family Takaful is a substitute for conventional life insurance which follows Islamic injunctions
and abhors any kind of speculation and outlaws uncertainty (Gharar) and usury (i.e. interest, or
Riba). Takaful is structured to avoid these prohibited elements, introducing elements of mutual
help (Tawaun) and donation (Tabaru).
Policyholders’ premiums — which are treated as donations — make up a fund from which any
insurance obligations are met. Takaful operators manage funds and settle obligations in return
for an agency fee (Wakala fee), a profit and loss share (Modaraba share), or both. Any surplus
in the fund belongs to the policyholders. If there is a shortfall in the fund, the operators make
an interest-free loan (Qard-e-Hasan) to finance the deficit.
Some of their partner banks of Window Takaful branch are:
69
 Faisal Bank
 Dubai Islamic Bank
Adamjee Life Insurance “Agay ki Soch” Campaign

Adamjee New campaign ‘Agay ki Soch’ is devised in a way to bridge the gap of mistrust
between financial advisors and the end consumers. To provide secure insurance options to
customers, interactive brand communication is being made through the current campaign. By
simply texting “life” on 8080 you will get information to your nearest gadget providing Adamjee
Life Offers details.
Slogan: “Soch aagye ki, Intikhab aaj ka”.
Marketing Strategy of Adamjee Insurance
Insurance companies are in a unique position when it comes to marketing. They have no
tangible products to sell, but must instead rely on strong relationships with loyal customers and
word of mouth to help them compete. Still, despite the challenges, the marketing strategies for
insurance companies are really no different than for any other company, and require a strong
focus on the basics of effective marketing.
Market knowledge
Adamjee Marketing employees have a strong understanding of their target audience, their
competition and the most effective ways to connect with those audience service organizations
like Adamjee insurance agencies that thoroughly understand the needs and concerns of their
target audience can effectively motivate that audience to connect with them.
Plan Development
Successful marketers of Adamjee don’t just go out and "do things." Based on their knowledge
of the market, and their overall goals and objectives, successful marketers of Adamjee identify
and prioritize the communication strategies most likely to generate the results they need. This
generally involves a combination of activities that include both traditional and new media,
direct and indirect sales.
Measure Effectiveness
70
It is important for Adamjee insurance company to measure the effectiveness of their marketing
efforts based on the goals they have established. This may be as simple as comparing the
number of clients before and after a campaign. It may also involve using online analytics to
monitor website visits after launching a promotion.
Bring the Business

Adamjee Marketing department make sure that their marketing activities not goes vain and
bring the business that is insurance policies This may be as simple as comparing the number of
clients before and after a campaign. It may also involve using online analytics to monitor
website visits after launching a promotion.
Gather Feedback
In addition to measuring the effectiveness of marketing efforts based on quantitative data,

insurance marketers can seek input from their existing and new clients about their
communication efforts. What worked well? What was unclear? How might they communicate
more clearly in the future? In addition, clients can be excellent advocates and part of the
marketing process. Successful insurance marketers will take advantage of the opportunity to
leverage their clients as word-of-mouth marketing advocates.
71
Chapter #04
Financial analysis
72
Financial Analysis of Adamjee Insurance Company
Horizontal Analysis of profit and loss account:
Particulars 2016 2015 Variance Percentage

(Rupees in (Rupees in (Rupees in (increase/
Millions) Millions) Millions) Decrease)
In 2016
Net premium revenue 9615 7747 1868 24.1%
Net Claims 6210 5223 987 18.9%
Underwriting Expenses 1615 1556 59 3.8%
Net Commission 763 558 205 36.7%
Unexpired risk reserve (50) 169 -219 (70.4%)
Underwriting results 1078 242 836 45.5%
Investment Income 3502 2404 1098 45.7%
Rental income 6 6 0 0%
Other Incomes 178 185 -7 (3.9%)
General and Admin. Expenses 630 571 59 10.3%
Exchange gain/ loss (2) 6 -8 (200%)
Workers Welfare Fund 83 58 25 43.1%
Profit before tax from takaful 4 - 4
Profit before tax 4054 2214 1840 83.1%
Provision for taxation 561 272 289 106.2%
Profit after tax 3493 1942 1551 79.8%
Interpretations
 Horizontal Analysis of profit and loss account shows the net premium revenue is
increased by 24.1% which means more policies are underwritten therefore in 2016
underwriting expenses are also increased from the underwriting expenses of 2015
 The 36.7% increase in Net commission shows that the new policies are taken by
company Agents/Brokers therefore company pay commission to the brokers.
 Investment income is that income which an insurance company brings in from
its investment activities rather than its operations. It is used to determine the
profitability of an insurance company. Adamjee has an increase of 45.7% in investment
73
 Income which means Adamjee investments increased from the previous year which is a
sign of more profitability.
 Other incomes like Discounts, foreign exchange and sale of Assets remains same which
shows company has not made any other activities and generated whole of the profit
from underwriting and investment incomes.
 Adamjee General and Administrative Expenses increased by 10.3% because company

underwrite more policies therefore salaries wages and benefits, stock-based
compensation expense, travel, sales commissions, professional fees, depreciation and
amortization, utilities, and rent for administrative facilities also increased.
 Workers welfare fund (WWF) is the voluntary contribution in form of money etc. by the
employer to the employees and Adamjee WWF increased by 43.1% in 2016 which is in
the favor of Employees of Adamjee by these ways and means Adamjee boost up the and
to retain their employees.
 Profit before tax (PBT) is a profitability measure that looks at a company's profits before
the company has to pay corporate income tax by deducting all expenses from revenue
including interest expenses and operating expenses except for income tax also refer as
"earnings before tax" or "pretax profit. Adamjee has an increase in the profit before tax
83.1% which shows its growth.
 Tax revenue is the income that is gained by governments through taxation. Increase in

tax is not in the control of insurance organization every company must pay specified
percentage of tax out of their profit so government can use these taxes for welfare
purposes if profit increases applied tax will also be increased Adamjee Gross profit
increased therefore taxes are also increased by 106.2%
 Gross profit of Adamjee increased by 83.1% but company attains the increase in Net
profit of 79.9% because taxes are deducted.
Horizontal Analysis of Balance Sheet
Particulars 2016 2015 Variance Percentage

(Rupees in (Rupees in (Rupees in (increase/decrease)
74
Millions) Millions) Millions) In 2016
Cash and bank deposit 4336 2,898 1438 49.6 %

Loans to employees 18 17 1 5.8 %
Investments 16738 15,393 1345 8.7 %
Deferred taxation - 84 84 -
Current Assets-others 16138 12,686 3452 27.2 %
Fixed Assets 1250 1,301 -51 (3.9 %)
Total assets of window
takaful 99 - 99 -
Total Assets 38580 32,380 6200 19.1%
Total Equity 14561 2440 16.7%

17001
Underwriting provision 13125 4059 30.9%
17184
Deffered taxation - 35 -
35
Deferred Liabilities 116 -35 (30.1%)
81
Creditor and Accruals -358 (7.9%)
4144 4502
Other Liabilities 14 18.6%
89 75
Tot. liabilities of 46 -
46 -
window takaful
Total Equity and 6200 19.1%

38580 32380
Liabilities
Interpretation
 Cash and bank deposits in 2016 Increased by 49.6% which means Adamjee sales
increases which needs more Current or liquid assets to meet the claims which are
uncertain therefore the increases they enhance their liquidity.
 Certain types of loans are granted to the employees that enable Adamjee employees to
Acquire finance used in performing their employment duties. There is another exception
to these rules if lending money is part of your company’s ordinary business. Under the
policy and strategies of company Adamjee provide loan to Employees which are
increased by 5.8% in 2016 which means company provide more loan in proceeding
years.
 Company’s investment income increased by 8.7% in 2016 because company issue more
policies and get more premium therefore Adamjee should invest the premium of
policyholders in various companies to earn profit.
75
 An increase in current Assets by 27.2% in 2016 means company either earn more profit
or underwrite more policies so require more liquidity to meet the future uncertainties
so level of cash and cash equivalents (which can be converted into cash within one year)
including foreign exchange.
 Fixed assets decreased by 3.9% in 2016
 The increase in all class of assets that may be liquid, current or fixed assets it results in
cumulative increase in Assets by 19.1 % in 2016 it means Adamjee can work as a
growing.
 Equity consist of paid-up capital, shareholder’s equity, Reserves and investments an
increase of 16.7% in Adamjee Equity in 2016 means Adamjee either issues more shares
or enhances the reserves out of profit or made more investments.
 Underwriting provision is increased by 30.9% in 2016 which means company seems to
enhance the underwriting business
 Creditors and Accruals decreased by 7.9% which mean liabilities of company have been
decreased.
Vertical analysis of balance sheet
Balance sheet 2016 Percentage 2015 Percentage

(rupees in (increase/decrease (Rupees in (increase/decrease)
million) ) Millions) In 2015
In 2016
Assets
Cash and Bank 4336 49.6 % 2,898 00.7 %
Loans to 18 5.8 % 17 21.4 %
Employees
Investments 16738 8.7 % 15,393 14.2 %
Deferred - 84 (14.3) %
-
Taxation 16138 12,686 11.7 %
27.2 %
Current Assets –
1250 (3.9 %) 1,301 16.8 %
others
Fixed Assets 99 - - -
Tot. assets of
window takaful 38580 19.1% 32,380 11.9 %
Total Assets
17001 16.7% 14561 10.9 %
Total Equity 17184 30.9% 13125 06.3 %
Underwriting
Provisions 35 - - -
76
Deferred taxation 81 (30.1%) 116 09.4 %
Deferred 35.6 %
Liabilities 4144 (7.9%) 4502 (21.1)%
Creditors and 18.6%
Accruals 89 75
-
Other Liabilities 46 -
Tot. liabilities of
window takaful
38580 19.1% 32,380 11.9 %
Total Equity and
Liabilities
Profit and Loss
Account
Revenue account 7,747 22.9 %
9615 24.1%
Net Premium
18.9%
Revenue 6210 5223 16.9 %
Net Claims 1615 1,556 04.9%
Underwriting 3.8%
Expenses. 36.7% 558 54.1 %
763
Net Commission (70.4%) 169 -
(50)
Unexpired risk
reserve. 45.5% 242 131.4 %
1078
Underwriting
Result 2404 16.6 %
3502 45.7%
Investment 0%
Income 6 -
6 (3.9%) 185 51.6 %
Rental Income 178 10.3% 571 17.7 %
Other Income 630
General And
Administration
Expenses (200%)
6 -
Exchange Gain / -
(2) -
(Loss) -
Finance Charges 1,176.6 %
on Lease 43.1% 58
Liabilities 83 38.1 %
Workers’ Welfare - -
Fund 4
Profit Before Tax 2214 -
83.1%
from takaful 4054 272 39.3 %
Profit before tax
106.2% 80.1 %
561
Provision for
Taxation 79.8% 36.0 %
3493 1942
Profit After Tax
77
Ratio Analysis of Adamjee Insurance Company:
Claims ratio:
Formula:
Claims ratio=Net claims/Net premium
Claims 2016 2015 2014 2013 2012 2011

ratio 64.6% 67.4% 64.9% 63.3% 73.0% 66.3%
Comment:
This is the ratio of a general insurance firm's claims total paid (added to the
loss adjustments) against the premiums earned. Over the years Adamjee has given more
than 60% of premium in form of claims. Which means Adamjee pays maximum part of
premium in form of claims
Net profit ratio:
Formula:
Net profit ratio = Net profit/Net premium
Net 2016 2015 2014 2013 2012 2011

profit 36.3 25.1% 29.8% 35.7% 11.1% 1.9%
ratio %
Comment:
Net profit ratio shows the profit earned by the Adamjee as the net profit is increasing by the
years it means business is growing Adamjee by its strategies earning more profit
Expenses ratio:
Formula:
Expense Ratio = (Underwriting Expenses / Net Premiums Written)
Expenses 2016 2015 2014 2013 2012 2011
78
ratio 11.2 3.1% 5.9% 2.5% (7.3%) 2.4%
%
Comment:
Underwriting expenses are the costs of obtaining new policies from insurance carriers. The
Expenses ratio of Adamjee is decreasing over the years and lower the expense ratio is better
because it means more profits to the Adamjee insurance company.
Commission ratio:
Formula:
Commission ratio = Net commission/Net premium
Commission 2016 2015 2014 2013 2012 2011

ratio 7.9% 7.2% 5.7% 6.3% 6.3% 6.8%
Comment:
Effectiveness of compensating agents and brokers for the business we have underwritten.
As the commission ratio is increasing which means Adamjee is hiring more Agents or
increases the commission of existing Agents, the reason may be the Company is expanding its
business.
Profitability ratios:
I. Return on Equity (ROE):

Formula:
Return on Equity = (Net Income/share equity)
Return on 2016 2015 2014 2013 2012 2011

Equity 20.5% 13.3% 13.3% 15.1% 5.5% 1.2%
Comment:
ROE is the Profits that are returned to shareholders. The return on equity of Adamjee is
increasing, the more profitable the Adamjee insurance company has become and the possibility
of enhanced dividends to shareholders.
79
II. Return on Assets (ROA):
Formula:
Return on Assets = (Net Operating Income / total Assets)
Return on 2016 2015 2014 2013 2012 2011

Assets 9.1% 7.9% 6.5% 7.2% 2.6% 0.5%
Comment:
ROA of Adamjee shows the profitability on existing investment securities and premiums. The
higher the return on assets the better the Adamjee insurance company is enhancing its returns
on existing liquid assets.
III. Investment income ratio:
Formula:
Investment income Ratio =Net investment income/Net Premium
Investment 2016 2015 2014 2013 2012 2011

Income 36.4% 31.0% 32.7% 42.8% 23.5% 12.2%
Comment:
Investment income ratio compares the income that an insurance company brings in from

its investment activities rather than its operations. It is used to determine the profitability of
an insurance company. Adamjee in previous 5 years earn Average income by the investment
activities, that is over and above 1/3 part of total income and remaining 2/3 art of earnings
are by the operations of Adamjee.
Market Test ratio:

I. Earnings per share
Formula:
Earnings per Share = (market price) / (P/E)
80
EPS 2016 2015 2014 2013 2012 2011
Rs9.98 Rs 5.55 Rs 5.4 Rs 5.6 Rs 5.1 Rs 1.1
Comment:
EPS is the distribution of allocated portion of profit to the shareholders of the Adamjee
Growth in EPS of Adamjee is an important measure of management performance because it
shows how much money the Adamjee Insurance company is making for its shareholders, not
only due to changes in profit of common stock and EPS serves as an indicator of a Adamjee
Insurance company's profitability.
II. P/E (Price Earning) ratio:
Formula:
P/E Ratio = Market Value per Share/Earnings per Share (EPS)
P/E 2016 2015 2014 2013 2012 2011

ratio 7.4 10.2 9.2 6.7 13.4 43.6
times times times times times times
Comment
The P/E ratio is the current price of the stock—what it costs to buy one share right now—
divided by the yearly earnings of the company per share. The P/E shows Every time the market
value of High of share is high than Earnings per share so it would be beneficial for share if they
wanted to sale the shares P/E suggests that investors are expecting higher earnings growth in
the future compared to companies with a lower P/E
III. Dividend payout ratio:
Formula:
Dividend payout ratio = (Dividend per share/Earning per share)
Dividend 2016 2015 2014 2013 2012 2011

payout 30.1 54.1% 41.9% 62.3% 29.5% 234.3%
ratio %
Comment
81
Since investors want to see a steady stream of sustainable dividends from a company after
2014 the dividend payout ratio of Adamjee shows a consistent trend in this ratio which is
usually more important than a high or low ratio.
IV. Dividend cover ratio:
Formula:
Dividend cover ratio = Earnings per share/Dividend per share
Dividend 2016 2015 2014 2013 2012 2011

Cover 3.3 1.9 2.4 4.5 3.4 0.4
ratio times times times times times times
Comment:
Dividend Cover ratio shows, more or Adamjee insurance company has the capacity to pay
dividends out of profit to the shareholders because a dividend cover of 3 implies that a
company has sufficient earnings to pay dividends amounting to 3 times of the present dividend
payout during the period.
V. Dividend Yield:
Formula:
Dividend yield = (cash dividend per share/Market value per share)
Dividend 2016 2015 2014 2013 2012 2011

yield 4.0% 5.3% 4.6% 9.4% 2.2% 5.4%
Comment:
Dividend yield shows Adamjee being a profitable company pay out dividend so Every time Adamjee
pays significant dividends for an extended period to ensure "safer" investments.
Liquidity ratios:
I. Liquid ratio:
Formula:
Liquid ratio = (Liquid Assets/Liquid Liabilities)
82
Liquidity 2016 2015 2014 2013 2012 2011
ratio 1.0 1.0 1.1 1.0 1.0 0.9
Comment:
Adamjee keeps the Liquid Assets which least one time to meet the instant claims because all
the policyholders will not claim simultaneously.
II. Current ratio:
Formula:
Current ratio = (Current Assets/Current Liabilities)
Current 2016 2015 2014 2013 2012 2011

ratio 1.7 1.8 1.8 1.8 1.8 1.7
Comment:
Adamjee retains current assets which gives ample margin to meet the current liabilities.
Combined operating ratio:

Formula:
Combined operating ratio = (Claims+Commission+Admin.Expencess)/Net Premium
Combined 201 2015 2014 2013 2012 2011

operating 6
ratio 88.8% 96.9% 94.1% 97.5% 107.3% 97.6%
Comment:
COR of Adamjee shows its steady flow. Adamjee daily operations are working with more or
less than 90% Accuracy It is the sum of the claims, commissions and expenses divided by net
earned premium. This excludes installment and other operating income, and investment
return. It indicates how well Adamjee is performing in its daily operations.
83
Shareholders Equity Ratio:
Formula:
Equity ratio= Shareholder Equity / Total Assets
Equity 2016 2015 2014 2013 2012 2011

ratio 44.1% 45.0% 47.2% 48.0% 46.7% 45.0%
Comment
It represents the about 48% of assets on which shareholders of Adamjee have a remaining
claim level of influence used by a company.
SWOT analysis of Adamjee Insurance Company:
Strengths
 Pricing power
 Innovative culture
 Financial leverage
 Cost Advantages
 Brand name
Weaknesses
 Weak R&D
 Work efficiency
 Weak supply chain
 Lack of sales
Opportunities
 Online Market
 Innovation
 New services
 New technology
84
 Emerging Markets
 New Markets
Threats
 Bad economy
 Intense Government
 Government Regulations
 Changes in customer Tastes
 Political Risks
 Substitute Products
Strengths:
Pricing power:
Customers typically rebel against price increases by switching to competing products, but if a
company has pricing power, customers will continue using Adamjee Insurance Company
products and services. Adamjee Insurance Company can charge customers higher prices
Innovative culture:
An innovative culture helps Adamjee Insurance Company to produce unique products and

services that meet their customer’s needs
Financial leverage:
Financial control allows Adamjee Insurance Company to use their balance sheet to expand
their business and increase their profits
Cost Advantages:
Lower costs lead to higher profits for Adamjee Insurance Company. A low cost leader can
undercut rivals on price
Brand name:
A strong brand name is a major strength of Adamjee Insurance Company. This gives Adamjee
Insurance Company the ability to charge higher prices for their products because consumers
place additional value in the brand
85
Weaknesses:
Weak R&D:
Weak R&D can slow Adamjee Insurance Company’s growth as competitors out-innovate

Adamjee Insurance Company
Work efficiency:
An inefficient work environment means that Adamjee Insurance Company’s goods and

services are not being utilized properly
Weak supply chain:
A weak supply chain can delay the arrival of products to Adamjee Insurance Company’s
customers. Unnecessary delays can hurt Adamjee Insurance Company over the long run,
because customers will cancel orders
Lack of sales:
A lack of scale means Adamjee Insurance Company cost per unit of output is very high.
Increasing volume, while maintain quality, would help reduce those costs
Opportunities:
Online Market:
The online market offers Adamjee Insurance Company the ability to greatly expand their
business. Adamjee Insurance Company can market to a much wider audience for relatively
little expense
Innovation:
Greater innovation can help Adamjee Insurance Company to produce unique products and
services that meet customer’s needs
New services:
86
New services help Adamjee Insurance Company to better meet their customer’s needs.
These services can expand Adamjee Insurance Company business and diversify their
customer base
New technology:
New technology helps Adamjee Insurance Company to better meet their customer’s needs
with new and improved products and services. Technology also builds competitive barriers
against rivals
Emerging Markets:
Emerging markets are fast growing regions of the world that enable Adamjee Insurance
Company to quickly expand
New Markets:
New markets allow Adamjee Insurance Company to expand their business and diversify their
portfolio of products and services
Threats:
Bad economy
A bad economy can hurt Adamjee Insurance Company’s business by decreasing the number
of potential customers
Intense Government:
Government Regulations:
Changes in customer Tastes:
Political Risks:
87
Politics can increase Adamjee Insurance Company’s risk factors, because governments can
quickly change business rules that negatively affect Adamjee Insurance Company’s business
Substitute Products:
88
Chapter #05
Place of the work and assignments I

handled
Organizational Structure
My Experience at Adamjee Insurance Company:

At the end, I am going to share my internship experience in Adamjee Insurance Company. I
have done Internship at Motor Claims department of Adamjee Insurance, branch located at
89
Eden center Jail Road. My heartiest prayers for Senior Officer of claim department Sir Farooq
who dealt me like his young brother and taught me a lot and helped me in every difficulty.
I have learned a lot. Some of my working experience is described below:
First day when I joined Adamjee, I get the basic knowledge about insurance industry and done
a little practical work. My supervisor sir Farooq gave me information about claim department
and gave me information how the claim is handled
First, he taught me the procedure of motor claim which is as follow:
 Intimation
 Appointment of surveyor
 Survey at workshop
 Preliminary report
 Interim visit
 Final inspection
 Final report
 Check the report
 Approval sheet
 Check issued from finance department
I also saw and gained knowledge to fill the claim forms and check different files of motor claim
and check different documents that are important for the motor claim procedure which are as
follow
 Workshop estimates (detail of labor and parts)

 Final bill
 Copy of Insured CNIC
 Copy of Driving license
 Copy of Motor Registration book
 Insurance policy
 Claim form
 Satisfaction note
In case of theft or total loss of motor following document are necessary:
 Letter to motor registration authority

 Anti -car lifting cell
 Police report
 Original registration book
 Original excise file
 Duplicate key
 Transfer letter
90
 Letter of subrogation
I also segregate the files and make files by writing their reference no, vehicle registration no
and claim number. I also saw and check claim files of motor insurance. Then they gave me a
task to enter all the previous record and maintain it in the system, and told me it is your whole
task during six weeks’ internship. One day I was assigned to segregate the checks of surveyors
and workshop dealers. I also assign to enter the files in the system by their date and claim no. I
also learned that how to determine for work hard to achieve destination.
Daily Lecture on Policy Jackets:
While working at Adamjee insurance company I and my other internee colleagues get one hour
lecture on policy jackets conducted by Sir. Haroon Iqbal (Head of claims department of Lahore
division) from 1:00 to 2:00 PM. By that daily lecture at policy jackets we learn the Cover,
Exclusions and value addition of every policy jacket. Sir Haroon Iqbal not only gives us the
academic lectures but also trained us for future interview questions and motivated us and
taught us ethics which are necessary for working in an organization.
91
Chapter #06
Recommendations and conclusion
Recommendations to Adamjee Insurance Company
 Internees should be provided with the rules and regulations before starting his
internship which he must follow during internship.
 The systems (PC’s) should be speedier.
 There should be a work of quality not or quantity.
92
 The internees should be rotated in all departments to get the basic knowledge and
expertise of each department’s operations.
 All departments of the company should be in one building because it’s difficult and
time consuming to go to head office or HR for any work.
 Company can deduct some amount of food from the salary of the employees so that it
can provide healthy food to their employees because many of the employees eat from
outside and it is very unhygienic.
Conclusion
I concluded that every organization must give opportunities for internships for students
because when a student finishes his or her education they want a platform to work and
they want companies to give them internship. Adamjee provides internship in many
departments like marketing, finance, Health and they provide a plat form to polish the skills
of the internees so that they can prove to the best in their job career.
93
References:
 Policy jackets of Adamjee
 Annual report of AICL 2016
 http://www.adamjeeinsurance.com/
 Personal observation
94

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Internship report

Adamjee Insurance Company Ltd

Principal Hailey College of Banking & Finance

Hailey College of Banking & Finance,

I am also thankful to my Supervisor “Sir Farooq” Assistant Manager Claim

I acknowledge my learning of Internship to Sir. Haroon Iqbal head of claims

Furthermore, I am indebted to the staff of the Adamjee Insurance, from

I dedicate my work done to my beloved Professors of Hailey College of

Adamjee Acquisition History:

Achievements/Awards to AICL through the Years:

Management of Adamjee Insurance Company:

Mian Umer Mansha

 Fredrik Coenrard de Beer

Muhammad Anees is a leading businessman/industrialist who is highly regarded in the

 Muhammad Umar Virk

 Shaikh Muhammad Jawed

 Muhammad Ali Zeb

Chief Financial Officer:

 Shaikh Muhammad Jawed (Chairman)

Human Resource Committee and Remuneration Committee:

 Umer Mansha (Chairman)

Claim Settlement Committee:

 Muhammad Asim Nagi

Reinsurance Committee and Co-insurance:

 Muhammad Salim Iqbal

Risk Management and Compliance Committee

 Strengthen customer relationship through customer satisfaction by providing excellent

 Adopting industry’s best practices and increasing economies of scale

Compliance of Code of Conduct:

Corporate Social Responsibility :

ii. Health, Safety & Environment

iii. Committed to Excellence

Major Underwriting Functions

 Reserve for outstanding claims

Adamjee takes several important commercial considerations. These will include:

FACTORS OF EFFECTIVE CLAIM MANAGEMENT

 To try to minimize losses

RECEIPT OF CLAIMS BY THE COMPANY

Adamjee or its broker is contacted as soon as possible on happening of event of claim.

 Company send acknowledgement to make insured known that his notification is

CLAIMS FILES AND PROCEDURES

FRAUD DETECTION AND PREVENTION

 Any method of considering specific factors such as depreciation, discounting or

COMPLAINTS AND DISPUTE SETTLEMENT

 Acknowledges receipt of the complaint within a reasonable period

SUPERVISION OF CLAIMS-RELATED SERVICES

In these cases, the following elements are considered:

The quantum of money must be adequate in relation to the needs. But mere adequacy of

FUNCTIONS OF ACCOUNTING DEPARTMENT

The four main accounting functions are:

III. Receiving Payments

ACCOUNTS DEPARTMENT OF ADAMJEE INSURANCE COMPANY

 Cash Collection Section

CASH DISBURSEMENT SECTION

SALARY PREPARATION SECTION

In Account Department Salary of the employees is calculated. Different allowances are offered

BUDGET PREPARATION SECTION

The commission of business brought by agents is calculated in the Commission Section.

The Marketing Process

Some examples of pricing decisions to be made include:

 Pricing strategy (skim, penetration, etc.)

Distribution (Place) Decisions

 Promotional strategy (push, pull, etc.)