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HAILEY COLLEGE OF BANKING & FINANCE

UNIVERSITY OF THE PUNJAB

INTERNSHIP REPORT
ON

ADAMJEE INSURANCE COMPANY LIMITED

(LAHORE MAIN DIVISION)
21-05-2018 – 06-07-2018

SUBMITTED BY
SAMRINA
MI14BBA044
BBA – IRM
(2014 – 2018)

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Acknowledgment
21, May 2018 I stepped into a part of my journey where I left all my non-seriousness behind and looking
for an opportunity that can help me to excel in my life with a brighter career. Selection at Adamjee
Insurance Company was just like a kid in a candy store, a place that helped me to discover my potential.

In this report, I hope to highlight everything that I have learned in 7-weeks internship program. What I
have learned would not have been possible without the contribution and collaboration of others. My
sincere gratitude:

▪ To Allah Almighty who granted me health and long life, without which I could not have finished
this internship;
▪ To the Senior Officer Sir Hammad Khan for endorsing my application for internship;
▪ To the Head of Claim department Sir Haroon Iqbal who taught me about the basic concepts of
insurance, valuable for insurance graduates;
▪ To the Head of Motor department Sir Bashir Maqsood who described me about the motor
coverage procedures;
▪ To the Senior Officer Ma’am Ambreen Ashraf for her constant supervision which contributed
immensely to my personal development. I also thank her for his guidance which was a remarkable
force that enabled me to successfully complete the internship program;
▪ To the Senior Officer Sir Najam Mushtaq for his advice, guidance and on-going support;
▪ To Sir Shakeel, Sir Naveed Humayu, Sir Ali Raza and Ma’am Zunaira for their contribution to
improve my learning.
▪ 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.

SAMRINA

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Table of Contents
Chapter #01 Page. No
Introduction…………………………………………………………………….…………….…..06
Historical background……………………………………………………….…….……..……...06
Vision and Mission Statement…….……………………………….….…….…………………...07
Core values…….……………………………………………………………………….….……..07
Awards/Achievements…………………………………………………………………….…..…07
Governence of AICL...……………………….…………………………………………...….......08
Shareholding pattern, Quality policy, Health policy………………………………………….….13
Chapter#02
Organogram………...……….………………….……………………………………..…………19
Centralized or decentralized……………………………………………………………………..20
Departments of Adamjee…..………………………………………………………………...…...20
Chapter #03
Products of Adamjee Insurance Company………………………………….…….….……….….27
Adamjee Window Takaful…………………..……………………………………….…….…….45
Chapter #04
Financial analysis…………………………………………..…………………………………….48
Annexed balance sheet………………..……………………………………………….…………48
Annexed profit and loss account………………….……………………..……………………….50
Annexed cash flow………………..…………………………….………………………………..51
Horizontal analysis……………………………..……………………………………………..….53
Vertical analysis……………...……………………………………………………..……………56
Ratio analysis……………………………..…………………………………………..………….58
SWOT analysis……………………………………………………….………………………….66
Chapter#05
Place of the work and assignments I handled…………………..………………….…………….68
Chapter#06
Recommendations…………………………….…….…..………………………………………..75
Conclusion ………………………………………..………………………………………...…76
References………...……………………………………………………………………………...76

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INTRODUCTION
Adamjee insurance company limited a company that completed more than a half century as a
largest general insurance company in Pakistan and spreading its feathers in the United Arab
Emirates. With the help of largest paid- up capital, revenue and well diversified business portfolio
company give a though competation to other insurane companies in the market. AICL completing
its journey of success with the help of its dedicated and had working employess who used their
innovaative ideas to deliver the best solutions to their client.
After observing the needs of the customers AICL provide best range of products which includes
Fire and Property, Marine Aviation and Transport, Motor, Accident & Health and Miscellaneous
Insurance exploring itself in accordance with the demand of the customers. To protect the Oil &
Gas (upstream & midstream), Wind and Thermal Energy Risks, AICL initiated and offer coverage
against that risk. Petrochemical Factories, Industries, Engineering and Telecom concerns are
unique and involve in high risk. AICL also not forgetting to serve Textile and Sugar sectors.
Being a part of Muslim society AICL perceive the gap between the conventional and Islamic rules
and laws and made a separate department to provide the Shariah-compliant Takaful Products,
named Window Takaful Operations.
Being a primer insurer of Kidnap & Ransom AICL offers indemnity policies with perfection and
as a collaborator of Hollard International perform life assurance operations under a separate entity
namely, Adamjee Life Assurance Company Limited.

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. 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
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’s Amalgamation:

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Main Muhammad Mansha a Pakistani business entrepreneur and high tax paying citizen. Mansha
group established its roots in the cement, textile and banking sector, with MCB being its flagship.
Mansha group planned to make the country’s biggest amalgamation through connecting itself with
Adamjee Insurance Company Limited, commanding nearly 40 per cent share in the total non-life
insurance business in the country.
The company holds Rs1.5 billion in equity and Rs7 billion in total assets.
Annual shareholder’s meeting: On 15, March 2002 Supreme Court of Pakistan set aside the
shareholders meeting in which out of nine, six seats was secured by Mansha group and the
remaining belongs to the Adamjees.
Just before the race began, the Mansha group was officially in possession of 38.5% shares in
Adamjee Insurance comprising 29.5% stake by the group-controlled Muslim Commercial Bank
and 9% owned indirectly: 4% through MCB Employees Provident Fund and 5% by MCB
Employees Pension Fund.
Then finally the honorable court after listen the plea of both Parties, decision based on facts in
favor of Mansha Group. So, in April 08, 2002 Mian Mansha had acquired a controlling position in
Adamjee Group.

VISION STATEMENT
“Our will is to Explore, Innovate and Differentiate.
Our passion is to provide leadership to 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

ACHIEVMENTS/ AWARDS
▪ 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”

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 ▪ 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.

GOVERNANCE
CHAIRMAN: "UMER MANSHA”

CEO
Nishat Mills Limited Adamjee Insurance Company Limited
(Since Sep. 2007) (Current)

Director
Nishat dairy (Pvt.) Ltd., Nishat Developers (Pvt.) Ltd., Nishat
Agriculture Farming (Pvt.) Ltd., Nishat Farm Supplies (Pvt.)
MCB Bank Limited
Ltd., Nishat Hotels & Properties Ltd. and Hyundai Nishat
Motor (Private) Limited

Member & Chairman

Risk management & Portfolio Review Committee Business Strategy & development
(Member) (Chairman)

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DIRECTOR: “MOHAMMAD ARIF HAMEED”

Director on the Boards

of Sui Southern Gas
Company Ltd., Inter
Former Managing
State Gas System
Director of Sui
(Pvt.) Ltd., Petroleum
Northern Gas Pipelines
Institute of Pakistan
Ltd.
and LU MS

Presently he is serving as
Director on the Board of DG
Khan Cement Limited

DIRECTOR: “IBRAHIM SHAMSI”

Chairman of Cotton Web

(Pvt.) Ltd. involved in social
services as trustee of
Chief Executive of Aladin Jamiat-e-Taleem ul Quran
Water & Amusement Park, and has served on the
Karachi and Joyland, Lahore editorial board of college
and university publications

He serves as the Director of Joyland

(Pvt.) Ltd., Dupak Developers Pakistan
(Pvt.) Ltd., Siddiqsons Ltd., Siddiqsons
Tin Plate Ltd., Siddiqsons Energy Ltd.,
A.A. Joyland (Pvt.) Ltd. and Dupak
Tameer Ltd.

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DIRECTOR: “IMRAN MAQBOOL”

Head Wholesale Banking

Group-North, Country
Head MCB Sri Lanka,
Group Head Special Assets
Management and Islamic
President & Chief Banking. Prior to joining
Executive Officer of MCB Bank in 2002,
MCB Bank Limited Maqbool was associated
with local banking
operations of Bank of
America and Citibank

Director in Pakistan Tobacco

Company Limited, MNET
Services (Pvt.) Limited, MCB
Financial Services Limited and as
a trustee of MCB Employees
Foundation

DIRECTOR: “MUHAMMAD ANEES”

Director of Masood Involved with the

Spinning Ltd. since July,
2003. Member of the
Board’s Audit
Committee. President
of Multan Chamber of
Commerce & Industry
as well as D.G. Khan
Chamber of Commerce
& Industry
development of the
Group’s textile operations,
Having good experience in
sales promotion, he also
promoted Group’s
products in the local as
well as international
markets.

He 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.

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DIRECTOR: “MUHAMMAD UMAR VIRK”

Umar founded Hira

Textile Mills in 1995
Chairman of Hira by acquiring a
Textile Mills Limited & spinning unit near
Hira Terry Mills Ltd Lahore

He is a qualified and seasoned

professional with over 30
years' experience in textile
trade and industry.

DIRECTOR: “SHAIKH MUHAMMAD JAWED”

Due to excellence in
quality and supply, the
Shaikh Muhammad Company has also
Jawed was the received a Gold
Director of Din Leather Medallion Award from
(Pvt.) Ltd. the International
Export Association, UK

He also serves as a Director of

Adamjee Life Assurance
Company Ltd.

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 MANAGING DIRECTOR & CHIEF EXECTIVE OFFICER: “MUHAMMAD ALI ZEB”

He started his professional Chief Financial Officer at City

Appointed as Chief Executive
career from Nishat Mills in School (Pvt.) Ltd. before
Officer in 2008 and remained
1995 and joined Adamjee rejoining Adamjee Insurance as
in this position until March,
Insurance as Chief Financial the Chief Executive Officer in
2011
Officer in 2005 June 2013

Serves on the Boards of MCB Bank Ltd, Chairman, Insurance

Adamjee Life Assurance Company Ltd, Nishat Association of
Chunian Ltd and Nishat Chunian Power Ltd. Pakistan in 2014

Member of the Institute of Chartered Accountants of

Pakistan and has over 22 years of diverse experience
in the Manufacturing, Financial and Insurance sectors

EXECTIVE MANAGEMENT TEAM

▪ Muhammad Asim Nagi (Chief Financial Officer)

▪ Adnan Ahmad Chaudhary (Commercial)
▪ Asif jabbar (Technical)
▪ Saleem Iqbal (Reinsurance)

COMMITTEE
Board Committee
Audit Committee Ethics, Human Resource and Investment Committee
Remuneration Committee
▪ Shaikh Muhammad Jawed ▪ Umer Mansha ▪ Umer Mansha
▪ Ibrahim Shamsi ▪ Ibrahim Shamsi ▪ Imran Maqbool
▪ Muhammad Umar Virk ▪ Muhammad Anees ▪ Muhammad Ali Zeb
▪ Umer Mansha ▪ Muhammad Ali Zeb ▪ Muhammad Asim
Nagi

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Management Committee
Underwriting Claim Committee Reinsurance & Risk Management Company
Committee Coinsurance & Complience Secretary
Committee Committee
▪ Umer ▪ Muhammad ▪ Muhammad ▪ Muhammad ▪ Tameez-
Mansha Ali Zeb Ali Zeb Ali Zeb ul-Haque
▪ Muhammad ▪ Muhammad ▪ Muhammad ▪ Asif Jabbar .
Ali Zeb Asim Nagi Salim Iqbal ▪ Muhammad
▪ Asif Jabbarl ▪ Syed ▪ Asif Jabbar ▪ Asim Nagi
Ameer ▪ Adnan ▪ Tameez ul
Hasan Ahmad Haque
Naqvi Chaudhry ▪ Muhammad
Furqan
Uddin

AICL SHAREHOLDING PATTERN

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AUDITOR OF THE COMPANY
▪ M/s. KPMG Taseer Hadi & Co. Chartered Accountants, Lahore

LEGAL ADVISOR
▪ Jameel Khan
SHARIAH ADVISOR
▪ Muſti Muhammad Hassan Kaleem

ASSOCIATED COMPANIES

▪ MCB Bank Limited

▪ Nishat Mills Limited
▪ D.G Khan Cement Company Limited

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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
▪ The Punjab Provincial Cooperative Bank Limited
▪ United Bank Limited
▪ Zarai Taraqiati Bank Limited

QUALITY POLICY
The management and employees of Adamjee Insurance demonstrate commitment in satisfying
customer needs for managing the risk assessment in General Insurance. In alignment with
satisfaction of customer needs, processes are established to support the vision and values of the
company. We use QMS-9001 as a tool to continually review and improve the effectiveness of our
implemented systems. We regularly assess our processes and practices, to build on our relationship
with all our stakeholders including customers, shareholders, strategic partners and employees.

HEALTH & SAFETY POLICY

At AICL Health, Safety and Environmental (HSE) responsibilities are integral to the way the
company operates. In carrying out all its activities, Management and all employees believe that
good HSE performance contributes to business success. To realize this vision, employees work
together to protect the quality of the environment and the health and safety of their colleagues,
customers, and neighbors. The company aims to protect peoples’ health and minimize any
environmental impact that can occur during the performance of their job functions. The HSE policy
follows all existing laws, regulations and amendments.

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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

AICL's corporate responsibility focuses on compliance, ethics and corporate citizenship and
maintaining overall sustainability. AICL has worked to cultivate these aspects of its operations
through enhancing communication, training and other initiatives.
Compliance and Ethics
Compliance and Ethics is a demand to obtain high level of integrity and transparency. AICL fulfill
this demand and obtain competitive edge in local market.
Their standards apply to all areas of business and processes. To provide knowledge of these
compliance AICL takes different initiatives which include internal awareness campaigns, specific
training's in detailed regulatory areas and focused efforts on areas such as conflict of interests.
Environment, Health and Safety
Company keep focusing to provide healthy & safe environment to its employees and to reduce any
type of environmental issues that badly effect the community. The company is acutely aware of
the environmental issues on hand and is committed to reduce those impacts which are within its
ability to control.

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' needs.

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 CHAPTER # 2
ORGANIZATION STRUCTURE

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ORGANO- GRAM

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CENTRALIZED OR DECENTRALIZED?
Adamjee insurance company limited has centralized system in which all the work is done in head
office due to this decision-making system is also late.

DEPARTMENTS OF ADAMJEE INSURANCE COMPANY

▪ Underwriting Department
▪ Claims Department
▪ Finance Department
▪ Re-Insurance Department
▪ Human Resource Department
▪ Marketing Department
▪ Investment Department
▪ IT 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 insure 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 or not 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 health coverage, an individual's physical
condition 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 Activities:
In insurance organizations, underwriting responsibilities are delegated by members of senior
management to line and staff underwriters who co-ordinate the day to day risk selection decision

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and management level underwriting activities. The coordinative efforts are crucial to the
achievements of insurer’s profitability goals.
There is no standard method to organize underwriting activities. However, underwriters are
divided into “Line Underwriters” and “Staff Underwriters”.
Line Underwriters: Who are primarily responsible for implementing the steps in the underwriting
process.
Staff Underwriters: Who is usually located in the home office and who assist underwriting
management with making and implementing underwriting policy.

2- Claim 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 really 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.

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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

Basic Steps followed in claim process:

The insurance claim process typically involves five main stages, from the moment you report your
loss to the resolution of your claim. You can prepare for the process by gathering relevant
documents (think receipts, original invoices and proof of ownership), gathering photos and
accounts of the event or damage, and familiarizing yourself with the steps below

Connect with your broker:

Your broker is your primary contact when it comes to your insurance policy – they should
understand your situation and how to proceed. Once you give your broker a detailed list of all the
items that were damaged or lost, and any photos or videos that help to explain the circumstances,
an adjuster will follow up with you to continue the claims process.
Claim investigation begins:
After the claim has been reported, it will need to be investigated by an adjuster to determine the
amount of loss or damages covered by your insurance policy. The adjuster will also identify any
liable parties, and you can help the process by providing any witness information or other parties’
contact information
Your policy is reviewed:
Once the investigation is complete, the adjuster will go through your policy carefully to determine
what is and isn’t covered under your policy and inform you of any applicable deductibles that may
apply to your case.
Damage evaluation is conducted:
In order to accurately evaluate the extent of the damage, your insurance adjuster may hire
appraisers, engineers, or contractors to lend their expert advice. Once the evaluation is complete,
your adjuster will provide you with a list of preferred vendors to help with repairs. You’re not
obligated to hire these vendors, but it can save you a good deal of time and research.

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Payment is arranged:
After repairs have been completed and lost or damaged items have been replaced, your adjuster
will contact you regarding settlement of your claim and payment. The amount of time it takes to
receive payment will depend on the complexity and severity of your situation.
Every claim is different, and although the claims process can vary slightly according to the
situation, your adjuster will devote the time and attention it takes to resolve your particular case.
3- Finance Department:
Most of us do maintain some kind of 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 has to 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 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.
Finance department of AICL
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
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 is able to 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.

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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 in connection with the results of its works. There are two basic methods of
reinsurance:
Facultative Reinsurance
In facultative reinsurance, the ceding company cedes, and the reinsurer assumes all or part of the
risk assumed by a particular 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 in excess of the monetary limits of their reinsurance treaties and for unusual risks.
Underwriting expenses and, in particular, 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
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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

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

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four P's on the customers in the target market in order to create perceived value and generate a
positive response.

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.

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 CHAPTER # 3
PRODUCTS OF ADAMJEE
INSURANCE COMPANY LIMITED

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 MOTOR
INSURANCE

TRAVEL
INSURANCE
FIRE &
PROPERTY
INSURANCE
ENGINEERING
INSURANCE

HEALTH
INSURANCE
AGRICULTUR
E INSURANCE

MARINE
FINANCIAL LINE INSURANCE
INSURANCE

PERSONAL
ACCIDENT
LIABILITY INSURANCE
MISCELLANEOUS
LINE INSURANCE
INSURANCE
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MOTOR INSURANCE
To protect the people from any kind of financial loss caused by damage, theft to the vehicle and
third-party liability as well as encouraged them to comply with Motor Vehicle Act in which taking
motor insurance is mandatory.
First individual (Retail Auto Insurance) online policy was introduced in 2008 to protect Auto
Sector- Pak Suzuki. Presently, “Suzuki Insurance” Program is running successfully. Now it entered
in the Toyota & Honda Market. Through collaboration with the Vehicle Tracking Company they
use complete package of “Insurance plus Tracker”.
AICL basically issued three types of policies to provide ease to an individual as well as corporate
clients.
▪ Private Car Insurance (Comprehensive)
▪ Commercial Vehicle Insurance
▪ Motor Cycle Insurance (Comprehensive)
SECTION 1- LOSS OR DAMAGE
The company will indemnify the insured against loss of or damage to the Private motor car, Motor
cycle, Commercial motor vehicles or its accessories if covered, generally from some of the
following perils:
▪ Fire, external explosion, self- ignition or lightning or frost
▪ Accidental external means
▪ Burglary house- breaking or theft
▪ Malicious act
▪ Riot, strike
▪ Flood, hail, wind, hurricane, cyclone, tornado, or typhoon
▪ Earthquake volcanic eruption or other convulsion of nature and
▪ Whilst in transit by air road rail inland waterway lift or elevator etc.
Note: Protection may vary from policy to policy.
SECTION 2- LIABILITY TO THIRD PARTIES
The company will indemnify the insured in the following events:
▪ Claimant’s costs and expenses, the insured is legally liable to pay in respect;
1) Death or bodily injury to any person but not apply where such death or injury arises out of
and in course of the employment of such person by the insured
2) Damage to property other than property belonging to the insured or held in trust by the
insured.
▪ All costs and expenses incurred with its written consent.
▪ Subject to some limitations of the indemnity any insured driver who is driving on insured
order is covered required that;
1) He is not indemnified in any other policy

29
 2) Must comply with the terms and conditions of the policy.
▪ Subject to the limitation the company will indemnify the insured whilst personally driving
a vehicle not belonging to him and not hired to him.
▪ In case of death to third party his personal representative will be indemnified required that
the terms and conditions must be fulfilled.
▪ Company may at its own option:
1) Arrange any Inquest or Fatal Inquiry in case of death to third party or;
2) Defense of proceeding in any Court of Law in case of any act or alleged offence
Note: Protection may vary from policy to policy.
SOME EXCLUSIONS:
▪ 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
VALUE ADDED SERVICES:
▪ Call Center 24/7 with Toll Free Number 0800-00242
▪ Tracker at Insurance Company Cost (Optional)
▪ Adamjee Catch Card (Optional)
PREMIUM PAYMENT METHOD:
Premium payment can be made through cash, cheque, pay order, demand draft and telex transfer
to the concerned Adamjee Insurance branch.
CLAIM REPORTING PROCESS:
▪ 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.

30
TRAVEL INSURANCE

Travel Insurance- “Go Secure”

Designed to fulfill your traveling needs and to make your journey stress free in event of any
unforeseen event, GoSecure 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, with the facility of direct
settlement of medical claims in the Schengen States.
▪ International plan
▪ Student plan
▪ Hajj, Umrah & Ziarat plan
▪ Domestic plan
Benefits:
▪ Emergency Medical Expenses Benefit
▪ Personal Accident Benefit
▪ Travel Inconvenience Benefit
▪ 24/7 international SOS. Hotline Number: 00971 4601 882
Salient Features:
▪ All Schengen insurance policies cove an amount of 30,000 Euro for medical,
hospitalization & repatriation costs during any single trip into the Schengen states.
▪ Direct settlement of hospitalization medical claims in Schengen States.

LEAVE YOUR WORRIES WITH US.

“Enjoy your memorable moments, along with your near and dear ones”

31
ENGINEERING INSURANCE

Following policies are issued by AICL to provide protection:

▪ Machinery Insurance
▪ Electric Equipment Insurance
▪ Boiler & Pressure vessel Insurance
▪ Contractor’s All Risk Insurance
▪ Erection All Risk Insurance

Machinery Insurance
This Insurance has been developed to grant industry effective insurance to the insured plant and
machinery necessitating their repair or replacement due to sudden and unforeseen loss or damage
to machinery.

Risk covered Main exclusions Other related products

▪ Electrical or ▪ War or like operations ▪ Loss of contents
machinery breakdown ▪ Terrorism following machinery
▪ Faulty design ▪ Riot, strike & civil breakdown
▪ Faults at workshop or commotion ▪
in erection ▪ Nuclear reaction Contamination of
▪ Defects in casting and ▪ radioactive contents following
material contamination wear machinery breakdown
▪ Bad workmanship, and tear
negligence ▪ Exchangeable tools
▪ Lack of skill ▪ fire
▪ Physical explosion. ▪ Chemical explosion
▪ acts of God, willful
negligence
▪ Theft
▪ Consequential loss

Electronic Equipment Insurance

This Insurance has been developed to grant industry effective insurance provides cover against
unforeseen and sudden physical loss of or damage to Electronic Equipment necessitating their
repair or replacements which generally have only low to moderate power requirement.

32
 Risk covered Main exclusion
▪ Short circuit and other electrical causes ▪ War or like operations
▪ Fire & lightening ▪ Terrorism
▪ Explosion ▪ Riot, strike, civil commotion
▪ Negligence ▪ Nuclear reaction
▪ Lack of skill and Burglary. ▪ Radioactive contamination
▪ Wear and tear
▪ Exchangeable tools or items
▪ Acts of God
▪ Willful negligence
▪ Theft
▪ Consequential loss.

Boiler & Pressure vessel Insurance

This Insurance has been developed to grant industry effective insurance cover for plant under
steam, air or other pressure, such as boilers, economizers, super-heaters and miscellaneous
pressure vessels and containers having valid inspection certificate issued by the competent
authority.
This insurance policy can be extended to cover third party property damage and bodily injury.

Risk covered Main exclusion

▪ The causes of loss or damage indemnifiable ▪ War or like operations
covered under this insurance are explosion and ▪ Terrorism
collapse damage (other than fire damage) to ▪ riot, strike, civil commotion
boilers or pressure vessels. ▪ nuclear reaction
▪ radioactive contamination
▪ wear and tear
▪ failure of individual tubes
▪ property belonging to insured
▪ acts of God
▪ willful negligence
▪ consequential loss.

33
Contractor’s All Risks Insurance
This Insurance has been developed to grant industry effective insurance cover against material damage to
contract works and legal liability to third Party in respect of bodily injury and property damage in connection
with the execution of a construction project.

Risk covered Main exclusions Other related products

▪ Fire ▪ War or like operations ▪ Contractor's Plant and
▪ Lightning Terrorism Equipment Insurance
▪ Explosion ▪ Riot, strike, civil ▪ Delay in Startup
▪ Flood commotion Nuclear following CAR
▪ Inundation reaction Insurance
▪ Windstorm ▪ Radioactive
▪ Earthquake contamination
▪ Theft and burglary. Cessation of work
▪ Wear and tear
▪ Defective material/
Workmanship/ design,
Electrical or
mechanical
Breakdown
▪ Willful negligence
Consequential loss.

Erection All Risks Insurance

This Insurance has been developed to grant industry effective insurance cover against material
damage to machinery, plant and steel structures of any kind, as well as third-party claims in respect
of property damage or bodily injury arising in connection with the execution of an erection project.
Risk covered Main exclusions Other related products
▪ Fire ▪ War or like operations ▪ Contractor's Plant and
▪ Lightning Terrorism
▪ Explosion ▪ Riot, strike, civil Equipment Insurance
▪ Flood commotion Nuclear ▪ Delay in Startup
▪ Inundation reaction following EAR
▪ Windstorm ▪ Radioactive
Insurance
▪ Earthquake contamination
▪ Theft, burglary Cessation of work
▪ Negligence ▪ Wear and tear
▪ Short-circuit and ▪ Defective material/
Testing. workmanship/design,

34
 Electrical or
mechanical
breakdown, willful
negligence,
consequential
loss.

HEALTH INSURANCE
Adamjee Insurance is one of the leading 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. We guarantee you the 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. We offer customized health insurance
plans to cater your needs.
Benefits & Coverages:
▪ Hospitalization Benefit
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 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.

▪ Maternity Coverage (Optional)

This benefit pays for medical expenses related to pregnancy and child birth up to the annual
maternity limit. It includes:
▪ Daily room rents
▪ Labor Room charges
▪ Operation theatre charges
▪ Anesthetics fee
▪ Pre-& postnatal expenses coverage
▪ Circumcision

▪ Out Patient Coverage (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.

35
Additional Benefits:
▪ Terrorism 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 (subjected to
additional terms).

▪ Complimentary Accidental Coverage

The hospitalization annual available limit is automatically increased by 25-50 per cent in
case of hospitalization due to an accidental injury (Coverage limits may vary).

Exclusions:
Following are some exclusions:
▪ 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

INSURING YOUR HEALTH & PEACE OF MIND

“Build a healthy network in your company and beyond”

36
FIRE & PROPERTY INSURANCE
Fire Insurance policy provides compensation to the insured person or firm in the event of damage
to the property insured (i.e. buildings, stock, machinery and other contents) caused by fire,
lightning.
Main Coverage/ Standard Coverage
The insurance policy broadly covers losses due to:
▪ Fire
▪ Lightning and Explosion (due to domestic boiler only).
Additional Coverages/ Allied Perils Coverages
▪ Riot and Strike
▪ Malicious Damage
▪ Explosion
▪ Atmospheric Disturbance (Flood, inundation, etc.)
▪ Earthquake
▪ Fire & Shock
▪ Aircraft Damage
▪ Impact Damage
▪ Burglary and Housebreaking
▪ Electrical Clause "B"
▪ Removal of Debris and;
▪ 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
▪ Nuclear Fission/ Biological etc.
▪ Spontaneous Combustion
▪ Loss or damage to the property insured by order of public authority and Misrepresentation.
Other Products Available

37
 ▪ 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.

MARINE INSURANCE
Marine Insurance covers damages to the shell and machinery of the vessel, cargo carried on the
vessel, and offers protection against liabilities to shipping and transport related companies.

•Marine Hull and Machinery Insurance

•Marine Cargo Insurance
• Marine Umbrella Liability Insurance

➢ Marine Hull
This policy covers losses / damages to the shell and machinery of the vessel caused by maritime
perils.
Covered perils:

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
▪ Bursting of boilers, breakage of shafts or any latent defect in the machinery or hull

38
 ▪ 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
▪ Charges when general average is declared

➢ 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.
Covered Perils:
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.

➢ Marine Umbrella
Marine Umbrella Liability is a broad-spectrum cover offering protection against
liabilities to shipping / logistics and transport related companies.
Covered Perils:
▪ 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
▪ Terminal operators, stevedore’s operators, operators of container/trailer, storage and
repairers Port harbors or port authorities

39
AGRICULTURE INSURANCE

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 Agriculture Insurance:
Farmers interest and investment solely related to the agriculture production specially in Pakistan.
Pakistan are frequently affected by natural disasters such as droughts, floods, cyclones, storms,
landslides, earthquakes or man-made disasters such as fire, sale of spurious seeds, fertilizers and
pesticides, price crashes etc. To protect the farmer through minimizing such loss the best option is
to opt the Insurance. The redistribution of cost of losses of few among many and cannot prevent
economic loss. AICL provides coverage to all farmers in these disasters.
Why Adamjee Insurance?
▪ Farmer's assets are secured
▪ 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.

Crop Insurance:

The time period from crop

sowing to harvest is extremely
crucial for the farmers. The
field of agriculture is always
exposed to hazards of floods,
droughts, rains, and hail
storms.
Loans Security, loss of crops or
resulting directly from Flood,
Drought, Excessive rain, Hailstorm,
Frost, Locust attack, Disease and
Insect attack.

Live Stock Insurance:

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 Insurance?

40
 ▪ 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.

Emphasis to provide peace of Coverage includes: Death coverage of

mind and secure necessities
related to livestock.
cattle due to natural causes, disease,
injury, or accident, Specialized
doctors assigned task of providing
farmers with latest farming
procedures and practices.

NOTE: Policies can be customized depending upon your specific needs.

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

41
 ▪ Employers Liability Insurance
▪ Aviation Hull and Liability Insurance

(I) Financial Line Insurance

Financial Lines insurance covers financial institutions against infidelity, professional indemnity and
directors' and officers' liability.

(Main Cover)
The Banker's Blanket Bond is a "blanket cover" protecting financial institute in question against variety of
different perils.
Following policies are issued against these perils:

▪ Fidelity Guarantee Insurance Policy

▪ Cash in Transit Insurance Policy
▪ Cash in Safe/ Burglary Insurance Policy
Fidelity Guarantee Insurance Policy:
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.
Cash in Transit Insurance policy:
Company will indemnify the insured against:
Loss of Money i.e. Cash, Bank Notes, Currency Notes, Cheques, Postal Order or Money Order by
forcible, violent, external and visible means in the circumstances or situation described in the
Schedule, within the policy period.
Burglary Insurance Policy:
Company will provide protection to the insured:
▪ Loss or damage to the extent of the market value at the time of loss and/ or
▪ Net cost of repairing such damage but not exceeding in respect of any one item specified
in the Schedule be sum any one period of insurance such Total sum insured.
Salient Feature:
▪ 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
42
 ▪ 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

(II) Liability Line Insurance

Workmen Public Liability

Compensation/Emplo Insurance/Third Products Liability
yer Liability party Liability Policy
Insurance Insurance
This policy provides This policy provides Adamjee Insurance offer
coverage for any coverage against a legal liability policy,
legal liabilities of which provides financial
legal liability to pay compensation to insured
the employers for death and/or for his legal liability
arising out of and in bodily injury to any towards illness, injury,
the course of person and/or direct loss and damage to third
employment as per party caused by anything
damage to the harmful or defective in
Workmen property arising due goods supplied by the
Compensation Act, to accident. insured. This policy is
Fatal Accident Act, most suitable for
or at Common Law. manufacturer of
consumer goods.

43
 (III) Personal Accidental 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 also 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:
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)

44
 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:
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)

WINDOW TAKAFUL OPERATIONS

History:
The Company was granted authorization on 23 December 2015 under Rule 6 of the Takaful Rules,
2012 to undertake Window Takaful Operations in respect of general takaful products by Securities
and Exchange Commission of Pakistan (SECP) and commenced Window Takaful Operations on
01 January 2016.
The Holding Company was granted authorization on 23 December 2015 under Rule 6 of the
Takaful Rules, 2012 to undertake Window Takaful Operations in respect of general takaful
products by Securities and Exchange Commission of Pakistan (SECP) and commenced Window
Takaful Operations on 01 January 2016.
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 outlaw’s 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).
Growth:
Company’s Window Takaful Operations (WTO) have completed its second year of operations
with a substantial growth in gross written contribution of Rs. 743 million as compared to Rs. 187
million in the year 2016 showing an increase of 297% year-on-year and has made a profit after tax
of Rs. 47 million as compared to profit of Rs. 2.8 million last year.

45
Window Takaful Operations have shown promising growth and results in 2017. It is anticipated
that the demand for Shariah compliant products will widely increase in most lines of business,
especially, in Motor and Health.
Some of their partner banks of Window Takaful branch are:
▪ Faisal Bank
▪ Dubai Islamic Bank

46
 CHAPTER # 4
FINANCIAL ANALYSIS

47
 FINANCIAL ANALYSIS OF ADAMJEE INSURANCE COMPANYY LIMITED

Balance Sheet
2017 2016
Share Capital and reserves

Authorized share capital 375,000,000 ordinary shares of Rs. 10 each 3,750,000 3,750,000

Issued, subscribed and paid up capital 3,500,000 3,500,000

1,430,223 1,406,834
Reserves

Retained Earnings 11,634,582 11,797,814

16,564,805 16,704,648

Deferred Taxation 30,218 -

Underwriting provisions
Provision for outstanding claims (including IBNR) 11,844,834 9,714,070
8,912,498 7,349,511
Provision for unearned premium
-
Premium deficiency reserve 121,553
240,306 236,890
Commission income unearned

Total underwriting provisions

20,997,638 17,422,024

Deferred liabilities
Staff retirement benefits 185,903 95,761

Creditors and accruals

Premiums received in advance 576,616 410,443
Amounts due to other insurers / reinsurers 1,681,093 1,598,811
Taxation - provision less payments - -

48
Accrued expenses 141,691 145,139
Other creditors and accruals 2,911,360 2,659,887
5,310,760 4,814,280
Other liabilities
Unclaimed dividends 106,214 88,969
26,600,515 22,421,034

Total liabilities of Window Takaful Operations - Operator's Fund 141,312 46,366

Contingencies and Commitments

TOTAL EQUITY AND LIABILITIES 71,050,513 61,397,419

ASSETS

CASH AND BANK DEPOSITS

Cash and other equivalents 22,021 16,604

Current and other accounts 3,608,227 5,472,478

Deposits maturing within 12 months 525,059 826,330

12,645,494 6,025,059

Loans - secured, considered good

To employees 27,055 18,369

Investments 31,578,632 30,639,677

Investment property 637,981 -

Current assets – others

Premiums due but unpaid 5,843,197 5,099,091

Amounts due from other insurers / reinsurers 1,002,894 1,062,271

Salvage recoveries accrued 347,289 336,163
Premium and claim reserves retained by cedants

Accrued investment income 202,838 251,893

49
Reinsurance recoveries against outstanding claims 7,709,161 6,279,433
Taxation - payments less provision 212,748 75,938

Deferred commission expense 733,631 737,281

Prepayments 2,552,498 2,479,305
Sundry receivables 821,254 1,400,454
19,425,510 17,721,829

Operating fixed assets - Tangible & intangible

Owned
Land and buildings 1,588,194 568,644
Furniture and fixtures 145,713 117,983
Motor vehicles 323,878 290,042
Machinery and equipment 101,377 89,297

Computers and related accessories 75,419 76,910

Leasehold improvements 38,503 7,482
Intangible asset - computer software 97,760 102,565
Capital work in progress 462,458 122,705
2,833,302 1,375,628
Total assets of Window Takaful Operations - Operator's Fund (Holding 241,121 99,157
Company)

Total Assets 71,050,513 61,397,419

PROFIT & LOSS STATEMENT

Rs. 000s

Marine
Fire & Aviation &
Property transport Accident Aggregate Aggregate
damage Motor & health Miscellaneous Treaty 2017 2016
Revenue account

Net premium 941,322 701,652 7,399,017 1,665,047 827,961

revenue - 11534999 9,615,381
(407,645) (183,349) (5,079,861) (1,407,619) (355,354) (7433828) 6,210,499
Net claims -

50
 (318,898) (214,983) (1,056,043) (100,794) (202,642) (1893360) (1,614,629)
Expenses -
Net commission (70,808) (123,411) (885,027) (56,458) 45,652
- (1090052) (762,579)
Premium
deficiency reserve
- - - - - - 50,313
Underwriting
1,077,987
Results 143,971 179,909 499,639 100,176 315,617 - 1239312

Investment 1,499,064 3,525,673

income
Rental income 8,564 6,447
Other income 108,631 186,659
General and (772,207) (660,766)
administration
expenses
Exchange gain / 5,133 (1,673)
(loss)
Workers' welfare (63,274) (82,768)
fund
(830,348) (745,207)
Profit before tax 66,598 4,038
from takaful
operations -
operator's fund
Profit before tax 2,091,821 4,055,597
Provision for (891,980) (561,476)
taxation
Profit after tax 1,199,841 3,494,121

CASH FLOW STATEMENT

Rs. 000’s
2017 2016
Operating Activities
a) Underwriting activities
Premium received 31,883,759 27,006,818
Reinsurance premium paid (5,555,264) (5,885,679)
Claims paid (15,331,767) (13,024,597)
Surrenders paid (159,482) (8,863)
Reinsurance and other recoveries received 3,731,743 3,520,070

51
Commissions paid (3,305,296) (2,795,094)
Commissions received 588,147 600,040
Other Underwriting payments (1,516,192) (1,587,049)
Net cash generated from underwriting activities 10,335,648 7,825,646

b) Other Operating activities

Income tax paid (1,087,044) (555,633)
General and management expenses paid (1,230,221) (2,425,489)
Loans disbursed (59,240) (50,433)
Loans repayments received 54,994 50,487

Other receipts 19,557

9,765
Net Cash used in other operating activities (2,301,954) (2,971,303)

Total cash generated from all operating activities 8,033,694 4,854,343

Cash Flow from Investing activities

Profit/return received on bank deposits 730,097 1,137,250

Return on Pakistan Investment bonds 27,153 33,879

Income received from TFCs 4,782 4,550

Income from Treasury bills 17,990 10,760

Dividend received 1,950,344 1,290,015

Rentals received 6,752 5,474

Payments for investments (19,181)

-
Payments from disposal of investments (8,529) 10,626

Fixed capital expenditure- tangible assets (108,509,539) (73,456,418)

Fixed capital expenditure- intangible assets (2,973) (43,066)

Proceeds from dispose of operating fixed assets 20,669 292,380

Total cash generated from investing activities (1,960,263) 3,431,446

52
Cash flows from financing activities

Finance lease rentals paid - -

Dividends paid (1,382,755) (1,035,824)

Net cash used in financing activities (1,382,755) (1,035,824)

Net cash generated from all activities 4,690,676 7,249,965

Cash at the beginning of the year 11,478,816 4,228,851

Cash at the end of the year 16,169,492 11,478,816

HORIZONT ALANALYSIS
Profit & Loss Statement

Particulars 2017 2016 Variance Percentage

(Rupees in (Rupees in (Rupees in (increase/
Millions) Millions) Millions) Decrease)
In 2017
Net premium revenue 11,535 9,615 1920 20.0%
Net Claims 7,434 6,210 1224 19.7%
Underwriting Expenses 1,893 1,615 278 17.2%
Net Commission 1,090 763 327 42.9%
Unexpired risk reserve (122) (50) (72) 141.5%
Underwriting results 1239 1,078 161 15.0%

53
Investment Income 1,482 3,502 (2020) (57.7) %
Rental income 9 6 3 31.8%
Other Incomes 108 178 (70) (39.1) %
General and Admin. Expenses 726 630 96 15.2%
Exchange gain/ loss 5 (2) 3 412.5%
Workers Welfare Fund 63 83 (20) (23.6) %
Profit before tax from takaful 67 4 63 1,546.9 %
Profit before tax 2,121 4,054 (1933) (47.7) %
Provision for taxation 900 561 339 60.4%
Profit after tax 1,221 3,493 (2272) (65.0) %

Interpretations
Horizontal Analysis of profit and loss account shows the net premium revenue is increased by
20.0% which means more policies are underwritten therefore underwriting expenses are also
increased from the underwriting expenses.
The 42.9% 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 a decline of 57.7% in investment.
Income which means Adamjee investments increased in the previous year and decrease in 2017
may be the is planning to make huge investment in future year.
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 15.2% 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 decreased by 23.6% which is not in the favor of Employees
of Adamjee.
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 a decline in the profit before tax 47.7%.

54
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 has to 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
60.4%
Company experienced decreased in Net profit of 65.0% because taxes are deducted.
Balance Sheet

Particulars 2017 2016 Variance Percentage

(Rupees in (Rupees in (Rupees in (increase/decrease)
Millions) Millions) Millions) In 2017

Cash and bank deposit 4,299 4,336 (37) % (0.9) %

Loans to employees 18 18 - -
Investments 16,619 16,738 (119) (0.7) %
Deferred taxation - - - -
Current Assets-others 18,491 16,138 2,353 14.6 %
Fixed Assets 2,620 1250 1370 109.6 %
Total assets of window 241 99 142 143.0 %
takaful

Total Assets 42,287 38580 3707 9.6 %

Total Equity 16,794 17,001 (207) % (1.2) %

Underwriting provision 20,639 17,184 3455 20.1 %
Deferred taxation 37 35 2 6.6 %
Deferred Liabilities 154 81 73 89.7 %
Creditor and Accruals 4,415 4,144 271 6.5 %
Other Liabilities Tot. 106 89 17 19.1 %
liabilities of window 141 46 95 204.7 %
takaful

Total Equity and 42,287 38,580 3707 9.6 %

Liabilities

Interpretation

Cash and bank deposits in 2017 decreased by 0.9%. 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

55
to Employees which remains same in 2017 which means company provide no more loan in this
years.

Company’s investment income decreased by 0.7% in 2017 maybe Adamjee is planning to invest
in various companies to earn profit.

An increase in current Assets by 14.6% in 2017 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 increased by 109.6% in 2017.

The increase in all class of assets that may be liquid, current or fixed assets it results in cumulative
increase in Assets by 9.6 % in 2017 it means Adamjee can work as a growing.

Equity consist of paid-up capital, shareholder’s equity, Reserves and investments a decrease of
1.2% in Adamjee Equity in 2017.

Underwriting provision is increased by 20.1% in 2017 which means company seems to enhance
the underwriting business

Creditors and Accruals increased by 6.5%. total equity & liabilities increased by 9.6% overall.

VERTICAL ANALYSIS
Balance Sheet

2017 Rupee in million %

Assets
Cash and Bank 4299 10.2%
Loans to Employees 18 18%
Investments 16619 39.3%
Deferred Taxation - -
Current Assets – others 18491 43.7%
Fixed Assets 2620 6.2%
Tot. assets of window takaful 241 0.6%
Total Assets 42287 100%
Total Equity 16794 39.7%

56
Underwriting Provisions 20639 48.8%
Deferred taxation
37 0.1%
Deferred Liabilities Creditors
and Accruals 154 0.4%

Other Liabilities 4415 10.4%

Tot. liabilities of window 106 0.3%

takaful 141 0.3%
Total Equity and Liabilities 42287 100%

Profit & Loss Statement

2017 Rupee in million %

Profit and Loss Account
Revenue account
Net Premium Revenue 11535 100%
Net Claims 7434 64.4%
Underwriting Expenses. 1893 16.4%
Net Commission 1090 9.4%
Unexpired risk reserve. (122) (1.1) %
Underwriting Result 1239 10.7%
Investment Income 1482 12.8%
Rental Income 9 0.1%
Other Income 108 0.9%
General and Administration 726 6.3%
Expenses
5
Exchange Gain / (Loss)
- 0.0%
Finance Charges on Lease
Liabilities 63 0.5%

Workers’ Welfare Fund 67 0.6%

Profit Before Tax from takaful 2121 18.4%

Profit before tax

57
 Provision for Taxation 900 7.8%
Profit After Tax 1221 10.6%

Interpretation
Balance Sheet
Starting from assets side we found that current assets i.e. prepayments, premiums
due but not paid, recoveries from insurers/reinsurers highly contributed with 43.7%
of total assets. Cash and bank deposits are 10.2% of total assets. Other fixed assets
(tangible and intangible), remained approximately 6.2% of total assets. Investments
were approximately 39.3% of total assets.
Equity and liabilities side, we can see that Share capital and reserves of AICL are
approximately 52% of total funds.
Total liabilities are approximately 48% of total funds. Underwriting provisions
remained 48.8% during the year. Creditors and accruals were decreased by 0.4%,
deferred liabilities which were deferred taxation decreased by 30.1%. Other
liabilities such as deposits and unclaimed dividends remained 10.4%.
Income Statement
Net claims expenses were 64.4%, management/ general administrative expenses
were 16.4% and commission expenses were 9.4% during the year.
Investment Income remained approximately 12.8% during the Financial Year.
Profit before tax was 18.4% during the FY. due to good underwriting result but due
to heavy tax expenses this year (which were approximately 106.2%), profit after tax
of 79.9% was lower as well as compared to previous year.

Ratio Analysis of Adamjee Insurance Company

Claims ratio:

Formula:

Claims ratio=Net claims/Net premium

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Claims 2017 2016 2015 2014 2013 2012
ratio 64.4% 64.6% 67.4% 64.9% 63.3% 73.0%

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 2017 2016 2015 2014 2013 2012

profit ratio 10.6% 36.2% 25.1% 28.9% 25.7% 11.1%

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 2017 2016 2015 2014 2013 2012

ratio 10.7% 11.2% 3.1% 5.9% 2.5% (7.3) %

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.

59
Commission ratio:

Formula:

Commission ratio = Net commission/Net premium

Commission 2017 2016 2015 2014 2013 2012

ratio 9.4% 7.9% 7.2% 5.7% 6.3% 6.3%

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 2017 2016 2015 2014 2013 2012

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.

II. Return on Assets (ROA):

Formula:
Return on Assets = (Net Operating Income / total Assets)

60
 Return on 2017 2016 2015 2014 2013 2012
Assets
12.6 23.8 15.2 14.4 16.9 5.8

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 2017 2016 2015 2014 2013 2012

Income 12.8% 31.4% 31.0% 32.7% 43.8% 23.5%

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)

EPS 2017 2016 2015 2014 2013 2012

61
 Rs3.49 Rs 9.98 Rs 5.5 Rs 5.4 Rs 5.6 Rs 5.1

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 ratio 2017 2016 2015 2014 2013 2012

14.9 7.4 times 10.2 9.2 times 6.7 times 13.4 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 2017 2016 2015 2014 2013 2012

payout ratio 86.0 30.1 54.1 41.9 62.3 29.5

62
Comment

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 2017 2016 2015 2014 2013 2012

Cover ratio 1.4 times 3.3 times 1.9 times 2.4 times 4.5 times 3.4 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 2017 2016 2015 2014 2013 2012

yield 5.8 4.0 5.3 4.6 9.4 2.2

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:
63
 I. Liquid ratio:

Formula:

Liquid ratio = (Liquid Assets/Liquid Liabilities)

Liquidity 2017 2016 2015 2014 2013 2012

ratio 0.8 times 1.0 times 1.0 times 1.1 times 1.0 times 1.0 times

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 ratio 2017 2016 2015 2014 2013 2012

1.6 times 1.7 times 1.8 times 1.8 times 1.8 times 1.8 times

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

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Combined 2017 2016 2015 2014 2013 2012
operating 89.3 88.8 96.9 94.1 97.5 107.3
ratio

Comment:

COR of Adamjee shows its steady flow. Adamjee daily operations are working with more or less
than 80% 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.

Shareholders Equity Ratio:

Formula:

Equity ratio= Shareholder Equity / Total Assets

Equity ratio 2017 2016 2015 2014 2013 2012

39.7 44.1 45.0 47.2 48.0 46.7

Comment

It represents the about 46% of assets on which shareholders of Adamjee have a remaining claim
level of influence used by a company.

65
SWOT ANALYSIS

PRISING
POWER

COST
INNOVAT ADVANT
IVE STRENGTH AGE /
CULTURE BRAND
NAME

FINANCIA
L
LEVERAG
E

WEAK
R&D

WORK
LACK OF
EFFICIEN WEAKNESSESS
SALES
CY

WEAK
SUPINPY
CHAIN

66
 ONLINE
MARKET

INNOVATION NEW MARKET

OPPORTUNITIES

EMERGING
NEW SERVICES
MARKET

NEW
TECHNOLOGY

BAD
ECONOMY

INTENSE SUBSITUTED
GOVERNMENT PRODUCTS

THREATS

GOVERNMENT POLITICAL
REGULATION RISKS

CHANGE IN
CUSTOMER
TASTE

67
 CHAPTER # 5
PLACE OF WORK &
ASSIGNMENTS I HANDELED

68
First day at Adamjee Insurance Company Limited, Sir Hammad (senior officer HR department)
welcomed all the interns in the company. We are total 10, after our introduction Sir Hammad
handed over our letters in which different department names are written division wise, such as
Health department, Agricultural department, Fire department, Miscellaneous department
Engineering department, Motor department and Marine department etc.
I was assigned to work in Lahore Main Division that contain significant importance in Adamjee
Insurance Company because it’s a crucial source of generating business and achieving yearly
targets in a timely manner for the company’s growth.
I spend my whole internship time to work in the following departments:

Miscellaneous (1st week)

At the first day my supervisor Ma’am Ambreen Ashraf gave me company’s underwriting manual
of Causality Insurance (Miscellaneous Insurance) in which a detail information regarding the
underwriting procedures (basic coverage, extensions and exclusions etc.) is written about each
policy that fall under the miscellaneous Insurance, must be followed while underwriting any
miscellaneous policy of the company.
Fidelity guarantee Insurance, Cash in safe policy, Cash in transit policy, worker’s compensation,
CRT (contractors all risk) are some policies that are mostly purchased by the clients.
As SECP has issued insurance Rules 2017- SOR 89(I)/ 2017- POLICY TO BE ISSUED ONLY
ON RECEIPT OF PREMIUM, Adamjee insurance company comply with this rule and issue
cover note before the issuance of original policy document. This cover is usually of 30 days in
non-motor insurance and 7 days in motor insurance. If the insured is satisfied with the rate of
premium, sum assured value and terms and condition and paid the relevant premium within the
time limit insurance company will issue the original policy documents plus insurance company
still issue proposal form.
Renewed Workmen compensation policies, Cash in transit policies and Cash in save polices and
made changes in the cover note or proposal as suggested by clients.

Bonds (2nd week)

Sir Naveed Humayu (senior officer, bonds) & Ma’am Ambreen elaborated us that the Adamjee
insurance company also provide guarantee/ surety to its clients on legal paper/ stamp paper.
Company issued following types of bonds:
a) Bid bonds
b) Performance bond
c) Mobilization advanced bond
d) Retention money bond
The first two types of bonds are mostly issued by the company and the last one is issued rarely.
Following steps are followed by Adamjee Insurance Company while underwriting the Bonds:

69
 2- Collection of 3- Head office
1- Approvel from premium, cash confirm the
Head office margin amount, authenticity of the
undated cheque documents

4- Head office send

policy request plus
5- Bond is issued
documents check list
to the underwriter

➢ Printed and then attached premium bills and cash margin copies with copy of stamp
paper division/branch wise which will send to head office so that they will further send
those documents to reinsurer.
Premium bill is the document that contains all the details regarding premium calculation.
Cash margin is a security obtained by insurance company from contractor or insured while issuing
bonds, usually 10% of the guaranteed amount but may be less by taking special approval from
head office.
Stamp paper is a legal document on which Bond contracts are printed.
➢ Copied undated cheques that are obtained from the office files. Undated cheques are
obtained from the clients at the time of proving them guarantee on stamp paper so that
risk can be minimized. These undated cheques are returned to the clients after the
successful completion of the bond contract. The amount of undated cheques is equal to
the guaranteed value.

➢ Filed the office copies of bonds in their respective folders according to branch and
policy number.

➢ Some Bond documents along with client company’s profile are sent to the head office
at their maturity date for releasement of cash margin amount and undated cheque. After
the approval and investigation of the head office these documents are sent back to the
clients along with cash margin amount and undated cheque.

Fire (3rd week)

Sir Najam Mushtaq (Senior Officer, Fire and Travel Underwriting Department) taught me about
his department and he make me able to learn at my best.

➢ I started my learning to underwrite fire policy by understanding how it operate on

computer system. The company issue either the fresh policy or renewal.

70
 ➢ Renewal required approval from the head office. Renewal are of two kinds first the
policy is renewed as it is secondly renewal may contain changes that have been
made through endorsement. With the help of premia policy is renewed accordingly.
➢ Fire policy basically covers fire & lightning but additional coverage or the allied
perils may be covered by paying additional premium.
➢ Finalized policy jacket along with policy schedule and clauses of allied perils
(standard wording) which are duly signed and stamped are send to the client or the
mortgagee banks if any.
➢ Made confirmation letter that are requested by the bank to obtain surety that the
policy is taken by the client.
➢ Some clients also take terrorism policy/ coverage along with normal fire policy so
learned how its premium is calculated and deductible is applied. The procedure of
calculation is defied by the company.
➢ Made fresh fire cover note with the help of quotation, conditions and other details
given on the form.
➢ Made fresh fire policy of an already existing client on its request.
➢ Fire renewals with changed sum insured plus renewed terrorism policy.

Travel (4th week)

➢ Making travel policy on premia with the help of information provided by the clients. This
information is usually gathered through agents and send to the underwriter for underwriting
the risk and charging the premium accordingly.
➢ Individual & Family policy are usually come for underwriting. Although travel insurance
is providing but it is not the major source of generating business.
➢ I underwrite many policies and 9.5 out of 10 are taken by the Christian Community for the
purpose of pilgrim as they are going Ireland during that month.
➢ Different rates are applied according to different plans.
➢ Rates are also different for filer and non-filer clients.

Motor (5th week)

Not done practical work but Sir Bashir Maqsood (Head of Motor Department) told us about the
procedure they followed while underwriting different types of motor policies for different clients.

Customers of Adamjee motor insurance are:

1- Banks
2- Corporate entities
3- Individuals
4- Leasing companies etc.
Company usually issued three types of policies to cover private cars:
1- Act only (third part only): property damages, death and personal injury to third party only.

71
 2- Third party fire & theft insurance
3- Comprehensive coverage: cover third party damages, own damages, loss due to theft & fire
and other medical expenses.
In Pakistan roughly 30 – 40 companies are operating that provide motor insurance policies, due to
high competition following factors required great consideration:
1- Rate of coverage
2- Type of coverage
3- Claim service
Adamjee insurance company insure two types of vehicles:
1- Imported
2- Locally assembled
Adamjee insurance company right now charge same rate to both types of vehicles such as 2.5% of
the total value of vehicle now a day due to high competition in the market.
Underwriting procedure of individual motor insurance policies involves following steps:
1- Inspection (through independent surveyor)
2- Value confirmation i.e. invoice copies etc.
3- For Individual clients, CNIC copy
4- Check Filer / Non- Filer clients
Cover Note: In case of motor insurance cover note of 7 days is issued instead of 30 days.
In case the claim occurs within a cover note period company issue revise certificate of insurance
in two situations:
1- Insured must register the car first then claim is paid
2- Applied for vehicle
Endorsement: In case of endorsement in existing policy the motor underwriter analysis two types
of impact on the motor vehicle.
1- Financial impact i.e. invoices of luxuries installed etc.
2- Non- financial impact i.e. either car is registered or applied for etc.
Active tax payer client information is obtained from official FBR website. In case the client is not
active tax payer 4% of subtotal amount is added in the net premium.
Corporate clients:
In corporate customers government entities is not covered. If they want to underwrite their vehicle
from any private insurance company then prior approval from the National Insurance company
limited plus No objection certificate (NOC) from the concerned ministry.

72
Corporate clients require special consideration because they buy multiple coverages from the
insurance company.
Adamjee insurance company have centralized structure to avoid any type of problem or fraud.
Whenever the special rates are demanded by the clients a rough e-mail is draft by the underwriter
containing the suggested rate, send to the head office for approval.

Marine (6th week)

Made proposal form on premia that also include the shares of co-insurers.

Claim (6th week)

Studied settled claim file with consisted of quotation of loss, appointment of surveyor, surveyor
report, client’s own assessment, claim amount calculation and settlement cheque.

73
 CHAPTER # 6
RECOMMENDATIONS
&
CONCLUSIONS

74
Recommendations
No doubt Adamjee Insurance Company is one of the best insurance company operated in Pakistan
that provide highly friendly environment to its employees apart from few things that I feel should
improve are:
➢ Company’s hierarchy require enhancement so that freshers can easily make their position
in the company. It would also help to decrease workload on the existing employees.
➢ IT system needs improvement to avoid any inconvenience.
➢ Female employees should be provided with separate prayer room.
➢ Enough crocurry should be provided.
➢ The internees should be rotated in all departments to get the basic knowledge and expertise
of each department’s operations.

75
Conclusion
Adamjee’s internship program has offered me a great opportunity to grow and develop. It helped me to
overcome challenges and develop my career. I learnt how to work in a high pressure and managed all the
work with great competence. As I see multiple cases that come across to the underwriters. The program
has enhanced my critical thinking as well as improved my professional ability to work in an organization.

Working at Adamjee as an intern was not only an honor and privilege but a lifelong experience. I am very
thankful to all who helped me in my learning. I would like to work with them again whenever the
opportunity knocks my doors.

References:
▪ http://www.adamjeeinsurance.com/who_we_are/company_info.aspx
▪ http://www.adamjeeinsurance.com/Takaful/window_takaful_operations.aspx
▪ http://www.adamjeeinsurance.com/who_we_are/vision_values.aspx
▪ http://www.adamjeeinsurance.com/product_portfolio/product_portfolio.aspx
▪ http://www.adamjeeinsurance.com/financials/financial_reports.aspx
▪ http://www.adamjeeinsurance.com/who_we_are/committees.aspx
▪ http://www.adamjeeinsurance.com/who_we_are/board_directors.aspx
▪ http://www.adamjeeinsurance.com/financials/financial_reports.aspx
▪ http://www.adamjeeinsurance.com/downloads/pdf/annual_reports/2016/04_ann
ual_report2016/annual_report2016.pdf
▪ http://www.adamjeeinsurance.com/downloads/pdf/annual_reports/2017/04_ann
ual_report2017/annual_report2017.pdf
▪ Policy jackets of Adamjee
▪ Personal observation

76