AN INTERNSHIP REPORT ON UNDERWRITING

DEPARTMENT OF SURYA LIFE INSURANCE

COMPANY LTD.

Submitted by:

Manastosh Karki

Exam Roll No: 19398/13

T.U. Regd. NO: 7-2-0469-0043-2013

Submitted To:

Office of Dean

Faculty of Management

Tribhuvan University

In the partial fulfilment of the requirement for degree of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Kathmandu, Nepal

August, 2022
RECOMMENDATION OF COLLEGE

i
RECOMMENDATION OF THE ORGANIZATION

ii
 DECLARATION

I hereby declare that the internship report entitled, An Internship Report on

“Underwriting Department of Surya Life Insurance Co. Ltd” submitted to Nepal
Commerce Campus, Office of the Dean, Faculty of Management, Tribhuvan
University is my original work done in the partial fulfillment of the requirement of
Bachelor of Business Administration (BBA) under the supervision and guidance of
Dr. Bashu Neupane.

……………………...

Manastosh Karki

September, 2017

iii
 ACKNOWLEDGEMENTS

I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals. I would like to extend my sincere
thanks to all of them.
I would like to express my sincere gratitude to our BBA Director Dr. Rajesh Gurung
for all the guidelines and help since the initial phase of this project, without his
support and guidance this report was not possible. I am highly indebted to Dr. Bashu
Neupane for his guidance and constant supervision as well as for providing necessary
information regarding the project & also for his support in completing the internship
report.
I would like to express my special gratitude and thanks to Nepal Commerce Campus
for encouraging and providing me with all the help for this project.
The report would not have been possible without the opportunity given by Surya Life
Insurance Company Pvt. Ltd. My heartfelt gratitude goes to Mr. Abhijeet Kc
(Marketing Executive), Mrs., Mona Chitrakar (Human Resource Officer), Mrs
Menuka Paudel ( Renewal Officer ), Shrijana Kayastha ( Renewal Officer), Alisha
sharma (Renewal Officer), Vijaya Dahal (RI Manager) , Sartha Raj Pandey (Cattel
and Agriculture Insurance officer) for their continuous guidance throughout this
project and the internship period of 8 weeks despite of their heavy work flow.

My sincere thanks and appreciations also go to my faculties, friends and people who
have willingly helped me out with their abilities for the completion of this project.

Manastosh Karki
Exam Roll no: 12172/13
T.U. Registration No: 7-2-469-43-2013
April, 2017

iv
 TABLE OF CONTENTS

RECOMMENDATION OF COLLEGE .........................................................................i

RECOMMENDATION OF THE ORGANIZATION .................................................. ii

DECLARATION ......................................................................................................... iii

ACKNOWLEDGEMENTS ..........................................................................................iv

TABLE OF CONTENTS ............................................................................................... v

LIST OF TABLES ..................................................................................................... viii

LIST OF FIGURES ......................................................................................................ix

LIST OF ABBREVIATIONS ........................................................................................ x

Chapter One ................................................................................................................... 1

INTRODUCTION ..................................................................................................................... 1

1.1 Background.................................................................................................................. 1

1.2 Objectives .................................................................................................................... 2

1.3 Methodology ............................................................................................................... 2

1.4 Limitation of the Study ................................................................................................ 6

1.5 Organization of Study .................................................................................................. 6

Chapter Two................................................................................................................... 8

INTRODUCTION OF THE INSURANCE INDUSTRY................................................................... 8

2.1 Introduction of Insurance............................................................................................ 8

2.2 History of insurance ................................................................................................. 10

2.3 History of insurance in Nepal .................................................................................... 12

2.4 Types of Insurance .................................................................................................... 13

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 2.5 Functions of Insurance company .............................................................................. 14

2.6 Existing Problems for the growth of Neplaese Insurance Company ......................... 16

2.7 List of insurance companies in Nepal ........................................................................ 17

Chapter Three............................................................................................................... 18

INTRODUCTION OF SLIC....................................................................................................... 18

3.1 An Overview of Surya Life insurance company limited ............................................ 18

3.2 Major service provided by the SLIC ........................................................................... 20

3.3 Present scenario of SLIC ............................................................................................ 24

3.4 Organization Structure of SLIC .................................................................................. 26

3.5 Branches .................................................................................................................... 27

3.6 SLIC Products ............................................................................................................. 27

3.7 SWOT Analysis ........................................................................................................... 27

Chapter Four ................................................................................................................ 29

ANALYSIS OF ACTIVITIES DONE/ PROBLEMS SOLVED ......................................................... 29

4.1 Assigned Departments .............................................................................................. 29

4.2 Activities Performed in Renewal Department .......................................................... 29

4.3 Activities Performed in Reinsurance Department .................................................... 33

4.4 Problems Identified and Solved ................................................................................ 35

4.5 Observed Gap ............................................................................................................ 36

Chapter Five ................................................................................................................. 37

SUMMARY, LESSON LEARNT AND CONCLUSION................................................................. 37

5.1 Summary ................................................................................................................... 37

5.2 Lessons Learnt ........................................................................................................... 37

vi
 5.3 Conclusion ................................................................................................................. 38

BIBLIOGRAPHY ........................................................................................................ 38

APPENDICES .............................................................................................................. A

vii
 LIST OF TABLES

Table 1. 1 Placement Details……………………….………………………………….3

Table 1. 2 Duration Table…………………………………………………………......4

Table 1. 3 Task Performed. ………………………………………….………………..5

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 LIST OF FIGURES

Figure 3. 1 Structure of SLIC………. ……………………………………………….26

Figure 4. 1 Steps for Renewal Proposal Letter….……………………………………30

Figure 4.2 Steps for Assigning Batch Number………………………………………31

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 LIST OF ABBREVIATIONS

AGM : Assistant General Manager

BBA : Bachelor of Business Administration

BC : Before Christ

BOD : Board of Directors

B.S. : Bikram Sambat

CEO : Chief Executive Officer

CIT : Cash in Transit

CO. : Company

CSD : Customer Service Department

DAV : Daya Nanda Aglovedic Vidhyala

DGM : Deputy General Manager

HRD : Human Resource Department

LTD : Limited

NO. : Number

RI : Reinsuranc

SLIC : Surya Life Insurance Company Limited

SWOT : Strength Weakness Opportunities and Threats

TMI : Travel Medical Insurance

TU : Tribhuvan University

OC : Orginalcopy

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 Chapter One

INTRODUCTION

1.1 Background

The world we live in is full of uncertainties and risks. Individuals, families,

businesses, properties and assets are exposed to different types and levels of risks.
These include risk of losses of life, health, assets, property, etc. While it is not always
possible to prevent unwanted events from occurring, financial world has developed
products that protect individuals and businesses against such losses by compensating
them with financial resources. Insurance is a financial product that reduces or
eliminates the cost of loss or effect of loss caused by different types of risks.

Insurance has evolved as a process of safeguarding the interest of people from loss
and uncertainty. It may be described as a social device to reduce or eliminate risk of
loss to life and property. Insurance contributes a lot to the general economic growth of
the society by providing stability to the functioning process. The insurance industries
develop financial institutions and reduce uncertainties by improving financial
resources.

The internship project is for partial fulfillment of requirement of Bachelors in

Business Administration (BBA) program under Tribhuvan University. Students are
required to work as an intern in an organization for minimum of eight weeks’ period
to learn about the functioning of the organization and its management. Thus, this
report is prepared on the basis of eight weeks of internship at Surya Life Insurance
Company Pvt Ltd, Sano Gaucharan, Kathmandu. Surya Life Insurance was
established in 2004, March 28.

The internship program serves the purpose of acquainting the students with the
practice of knowledge of the discipline of an organization and helps the student to
understand corporate social responsibility, develop the corporate attitude and venture
entrepreneurship. It exposes students to industry environment and work culture
making it easier for them to transition from students to professionals. Industry gets a
chance to get some work done and test a student for an extended period before

1
making them a permanent employee. It has even shown them the wider exploration of
the career opportunities in management.

This internship program helps the student in gaining professional experience as an

employee in the reputed banks. Such program also helps students in developing
creativity and efficiency in dealing with various work related problems. Moreover, it
gives an opportunity to understand corporate cultures and build the level of
confidence required in the work arena.

1.2 Objectives

There is no meaning of the task done without any purpose, it is necessary to be clear
about the purpose before starting any task. The primary objective of the undertaken
project is to know about the functionality and various activities done under the
Underwriting Department. Besides that, other objectives of the study are:

 To gain the knowledge in real life situation in the organization.

 To learn the application of theoretical knowledge in practical life.

 To learn about the work challenges and develops skills to tackle those challenges.

 To acquire the knowledge of work process and products and services offered by
the organization.

1.3 Methodology

The internship report is prepared on the basis of 8 weeks’ internship experience at

Surya Life Insurance Co. Ltd. Direct observation, interactions and discussions with
the assigned supervisors, department heads, other employees and customers as well as
self-participation in the operations of the department provided major source of
primary data for the preparation of this report. Some of the secondary sources used for
the preparation of the report are corporate websites, brochures and annual report of
insurance, office records, and various articles published.

1.3.1 Organization Selection

Selection of organization for internship program is always a crucial task because

success in the fulfillment of the objectives of internship completely depends upon the

2
type of the organization that has been selected. In spite of being a student of BBA
with specialization in Marketing, I chose Surya Life Insurance for my internship.
There were many factors for the selection of organization to perform my internship.
Considering my area of interest and future career prospects, Insurance became my
foremost choice. After that, I selected Surya Life Insurance to pursue my internship
program because the company enjoys the status of one of the largest Nepalese sector
promoted life insurance company operating in Nepal.

1.3.2 Placement

During the internship, I was placed at head office of Surya Life Insurance located at
Sano Gaucharan and was placed in Underwriting Department. I worked at Renewal
and Reinsurance sub-department under the Underwriting Department. The supportive
and friendly environment in the organization helped me to complete the internship
period properly. Through their proper guidance, I was able to learn more about the
organization culture, work environment and work procedures.

Table 1.1
Placement Details

Name of the Organization Surya life Insurance Co. Ltd

Branch KL tower, Sano Gaucharan, Kathmandu

Position Intern

Department Underwriting
- Renewal
- Reinsurance

Working Duration 8 weeks

Name and Designation of - Abhijeet Kc

Internship Supervisor
-Mona Chitrakar

Source: Internship Details

3
1.3.3 Duration

As per the requirement of Tribhuvan University (T.U), BBA students are required to
do intern for 2 months or 8 weeks. So, as per the pre-determined time frame, my
internship was 8 weeks. The internship was great opportunity to learn and develop
administrative, interpersonal, managerial and behavioral skills in the real working
environment.

Table 1. 2

Duration Table
Departments/Weeks 1 2 3 4 5 6 7 8

Renewal    

Reinsurance    

Source: Internship Details

1.3.4 Nature and Sources of Data

The report has been prepared on the basis of 8 weeks’ internship experience.

 Primary Source

The primary source of the data for the preparation of report are self-observation,
interactions and discussions with the assigned supervisors, department heads, other
employees and customers as well as self-participation in the operation activities.

 Secondary Source

The secondary the secondary sources used for the preparation of the report are
corporate websites, brochures and annual report of company, office records, and
various articles published.

4
 Table 1.3 Task Performed

Surya Life Insurance Co. Ltd

Assigned Task done/Observed Supervised

Department by

Renewal - Filing and record maintenance.

- Preparation and Printing of Renewal
notice
- Assigning batch number and proposal Menuka
number to Policies. Paudel
- Checking the Claim.
- Calculating the Depreciation of the
Life Insurance.
- Calculating the Premium for the
policy renewal. (Manual)
- Checking the Premium Price through
the software.
- Preparing the renewal proposal letter.

Reinsurance - Maintaining Daily record of the Shrijana

Premium collected. Kayastha
- Accepting the co-insurance proposal
- Sending the co-insurance proposal
- Preparing co-insurance schedule
- Preparing co-insurance letter
- Maintaining and updating CIT policy
and available fund.

Source: Internship Details

5
1.4 Limitation of the Study

Despite most of the efforts undertaken to make the project more realistic, practicable
in terms of Nepalese context, there are certain limitations of the study:

 It was not possible to gather the information regarding the system more
specifically due to organizations privacy policy.

 Most of the information is collected through personal experience and

observation; the overall information may not be presented.

 The study may not be applicable to other organization of similar nature.

1.5 Organization of Study

The report has been organized into five chapters. The content of each chapter of the
report is briefly explained below.

Chapter One: Introduction

This section includes general background, objective, and methodology of the study,
organization selection, and placement of internship, duration of internship, activities
performed, limitation of the study and organization of the study.

Chapter Two: Introduction of Insurance Industry

It includes brief description about origin of insurance, history and present context of
insurance in Nepal, types of insurance, list of available insurance companies.

Chapter Three: Introduction of Surya Life Insurance Co. Ltd.

It includes the introduction of Surya Life Insurance Co. Ltd along with its
background, vision, mission, value, objectives, major service performed by
SLIC,present scenario of SLIC, organization chart, its branches, SLIC products and
SWOT analysis of the company

6
Chapter Four: Analysis of Activities Done

This chapter deals with operational activities of Surya Life Insurance Co. Ltd that
includes responsibilities and activities done in various department and in depth
description of job performed, problem identified, problem solved and observed gaps.

Chapter Five: Summary, Lesson Learnt and Conclusion.

This chapter deals with summary, lesson learnt and conclusion from internship.

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 Chapter Two

INTRODUCTION OF THE INSURANCE INDUSTRY

2.1 Introduction

Insurance is a means of protection from financial loss. It is a form of risk management

primarily used to hedge against the risk of a contingent, uncertain loss. For example,
in life insurance, the insurance company attempts to manage morality (death) rates
among its clients. The insurance company collects premium from policyholders,
invest the money (usually in low risk investments), and then reimburses this money
once the person passes away or the policy matures. (Joshi, 2001). A person called an
actuary constantly crunches demographic data to estimate the life of a person
policyholder must pay.

Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment. It is a form of risk management primarily used to hedge
against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a
company selling the insurance; the insured, or the policyholder, is the person or entity
buying the insurance policy. The amount of money to be charged for a certain amount
of insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insured in exchange for the insurer’s promise
to compensate (indemnify) the insured in the case of a financial (personal) loss. The
insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insured will be financially compensated.

Insurance companies are non-depositary financial institutions and significant role in

mobilizing funds. Insurance companies are also known as contractual saving financial
institutions. Insurance is the contract between general people & insurance company
through which insurance company protects to general people from future financial
losses against taking premium. In insurance, people deposit their money as premium
in the insurance company & insurance company assures to protect them in the case of
financial losses. Insurance companies issue life insurance policy as well as non-life

8
insurance policies. The life insurance companies provide the economic safety towards
the illness, supporting in old age and unexpected deaths whereas non-life insurance
companies provide economic safety towards damage, fire, business failure, theft and
third party losses. The insurance is the agreement through which a company gives
financial protection to policy holder. In other word it is the co-operative and
protective task which also helps in transferring funds in productive sector. Thus
insurance can be defined as the sharing of risk (through depositing premium) between
several people through insurance company.

Insurance is a financial topic of paramount importance for every individual. Insurance

is designed to protect the financial well-being of you and your dependents in the case
of unexpected loss (Thapa & Parajuli, 2013).Some forms of insurance are required by
law, while others are optional. Agreeing to the terms of an insurance policy creates a
contract between you and the insurance company. In exchange for payments from you
(called premiums), the insurance company agrees to pay you a sum of money upon
the occurrence of a specific event. That event may be as mundane as a visit to the
doctor or as serious as a car crash, depending on type of insurance.

After contacting an insurance company about entering into a policy, you will receive
a quote, which is the total amount of money you will need to pay over the term of the
insurance policy in exchange for coverage.

When you have agreed to pay this amount and the insurance company has agreed to
insure you, you will receive a copy of the policy detailing the terms and conditions of
your policy.

If an insured incident occurs, you will make a claim for payment from the insurance
company. You will receive the amount you are insured for in the case of the specific
incident minus a deductible that you must pay for each claim. Higher deductibles are
associated with lower premiums and vice versa. Therefore, for claims that are likely
to be made, it may be in your best interest to pay a higher premium in exchange for a
lower deductible.

Given the importance of insurance, it is essential to make sure that your coverage is
sufficient. However, paying for too much insurance or insurance that you don't need
can be a significant drain on your finances. Investigate all potential insurance policies

9
carefully in terms of your own needs at the time of purchase and throughout the term
of the policy.

2.2 History of Insurance

The history of Insurance- Risk comes through the ages. An industry is a collection of
firms that produces similar types of products and services but may differ in terms of
size, shape and location usually within one country. Insurance industry is a collection
of firms that sell insurance policies. The insurance industry consists of two distinct
types of firms i.e. life insurance companies and general or non-life insurance
companies.

Insurance is a financial arrangement that redistributes the costs of unexpected losses.

Insurance involves the transfer of potential losses to an insurance pool. The pool
combines all the potential losses and then transfers the cost of predicted losses back to
the exposed. Thus, insurance involves the transfer of loss exposure to an insurance
pool, and then redistribution of the losses among the member of the pool. Legally,
insurance is a contractual arrangement whereby one party agrees to compensate the
other party for losses. We call the party agreeing to pay for the losses the insurer. We
call the party whose losses causes the insurer to make claims payment the insured.

Insurance is one of those things we tend to take for granted. It just seems to have
always been there. The history of insurance is an interesting one, but the basic idea
has always been the same. The Merriam-Webster dictionary describes insurance as
“coverage by contract whereby one party undertakes to indemnify or guarantee
another against loss by a specified contingency or peril”. So the basis of insurance is
“guarantee against loss”.

Shipping/transportation insurance – the first guarantee against loss

We look back in history at who first felt the need for a guarantee against loss, and
who gave them that guarantee. Way back in Babylonian times, around 2100 B.C. The
code of Hammurabi was first basic insurance policy. This policy was paid by the
traders in the form of a loan to guarantee the safe arrival of their goods by caravan of
course, caravan faced the same kind of perils our transportation industry faced today-
like robbery, bad weather and breakdowns.

10
As history progresses, the needs for the insurance increased. The Phoenicians and the
Greeks wanted the same type of insurance with their seaborne commerce. The
Romans were the first to have burial insurance –people joined burial clubs, which
paid funeral expenses to surviving family members. In medieval times, the guilds
protected their members from loss by fire and shipwreck, paid ransoms to pirates, and
provided respectable burials as well as support in times of sickness and poverty.

As commerce grew- so did the need for insurance

In the 17th and 18th centuries, British commerce was rapidly growing. As commerce
grew, risk increased. In a way, progress was actually working against the insurance
industry- there were more and more ways of goods being damaged or lost, as goods
were shipped greater distances and by more advanced methods. Therefore, there were
higher payouts for claims.
The members of stock companies saw an opportunity for a profitable business here.
They were chartered in the insurance business in England in 1720, and in 1735. The
first American insurance company was founded in the British colony of Charleston,
SC. In 1787 and 1794 respectively, the first fire insurance companies were formed in
New York City and Philadelphia. The first American insurance was sponsored by a
church –The Presbyterian Synod of Philadelphia- for their ministers and their
dependents. Although there was religious prejudice against the practice of insurance
by a church, after 1840 it declined and life insurance boomed.

Preparing for large losses

So everybody was getting into swings of insurance. People accepted the fact that they
needed to pay premium to protect themselves and their loved ones in case of loss,
including major losses like fires. The insurance companies had a rude awakening to
this fact in 1835 when the New York fire struck. The losses were unexpectedly high
and they had no reserves prepared for such a situation. As a result of this,
Massachusetts leads the states in 1837 by passing a law that required insurance
companies to maintain such reserves. The great Chicago fire in 1871 reiterated the
need for these reserves, especially in large dense cities.

Insurance companies had to work together to find a solution to the challenge of large
losses. So they got together and devised a system called reinsurance whereby losses

11
were distributed among many companies. This system is now commonly used in all
types of insurance.

2.3 History of Insurance in Nepal

The insurance business in Nepal has by now become an industry with lucrative
returns. This is supported by the fact that big business houses are either already into
business or are planning to do so. There has been an exponential growth in a number
of insurance companies operating in Nepal. For insurance, in FY2004/05; there were
only 18 insurance companies, life and non- life combined, in Nepal. The number
stands at 27 among them 8 companies provide life insurance and 17 provided non-
life insurance services .Over a dozen more companies are seeking permission from
insurance board to start their operation.
The history of insurance in Nepal seems to be a very traditional in the form of Guthi
System prevailing from immemorial time in Nepal. Nepal being a predominantly an
agricultural culture the need of insurance was limited. There were a few industries
and those were insured by Indian Insurance Companies. Nepal Insurance Company
was the first insurance company established in Nepal in 2004/06/08 B.S. in a captive
insurance company of Nepal Bank Ltd.

Rastriya Beema Sansthan was established in 1967 A.D. which brought big change in
the insurance industry of Nepal. National Life and General Insurance Company was
the first insurance established in private sector in Nepal.

Insurance is newly emerging business in Nepal. Therefore, the history of insurance

business is definitively very short in Nepal. As the first insurance company Nepal mal
chalani tatha bima company ltd. was established in 2004 B.S. This insurance company
can be taken as the first step or milestone of Nepalese insurance history, with
authorized capital of five lakhs. As a private insurance company with limited capital,
the Nepal mal chalani tatha bima company ltd. was not successful to provide all types
of insurance facilities all over the country. Foreign large insurance companies were
doing well business in Nepal through agents; Unite India Insurance, Hindustan
General Insurance, Starling Insurance, Ruby General Insurance, Oriental Fire
Insurance had branches in Nepal to provide insurance facilities until 2024 B.S.

12
There is no denying the fact that insurance companies have been successful in
increasing the awareness level among Nepalese about the merits of an insurance
policy. However, the insurance penetration into deed and wide corners of the country
is still very low. For example, according to one widely accepted data, only four
percent of the country’s population has life insurance policies. And, this too limited to
the big cities only. But given the fact that insurance companies report good earning
even with such minimal market penetration, one can only imagine the scale to which
the business can grow.

2.4 Types of Insurance

All the insurance companies provided certainty against the risk. When they could
define in the generic concept, it will take the form like social insurance and private
insurance. But, we have divided the insurance in two parts as life insurance and
general insurance. Life insurance may be defined as the creation sum of the money
either on the death of the insured or on the expiry of a fixed period. Life insurance is
concerned all insurance expected life insurance. Some of exports and writers
separator the insurance in different viewpoint i.e. forms the potential insurers view
and other. When viewed from professional use insurance will take two board forms as
life and non- life insurance.

2.4.1 Life Insurance

Life insurance provides sum of amount against the various risks relating to the human
being body through issuing different policies. Life insurance is a financial instrument
for providing post death resources to support survivors or pay obligations of the estate
of the decreased. Life insurance contract may be defined as the contract, where by the
insurer, in consideration of a premium undertakes, to pay a certain sum of money
either on the death of the insured or on the expiry of a fixed period. It is particularly
concerned with that aspect of human life. It never fulfill losses of human life, it
measures in amount of various risk and provide sum of amount in accordance to
policy. It plays a vital role in the society. Therefore, it is also known as social
insurance too.

13
The scope of life insurance business is seen to be bringing because of its nature and
popularity. Therefore, the various investors are interested to invest in life insurance
business, although having restriction of government and challenge of other affecting
factors.
2.4.2 Non-life Insurance

Non-life insurance is also known as general insurance. It is a pure insurance because

it can measure any risk in terms of money. General insurance is the insurance of
property and liabilities risk of insured against some specified cost i.e. the premium. It
includes property insurance, liability insurance and other forms of insurance. General
insurance considers all the risks and it provides certainty against the risk through
certain sum of money. General insurance is responsible to payment of an amount to
insured. When the accident is held by negligence of insured, the insurer is not
responsible to pay any amount against the risk transfer through the assurance. But the
coverage written by the property and liability insurance insurers may be divided into
five types, physical damage or loss, loss of income and extra expenses resulting from
physical damage to property, liabilities, health and collateral.

2.5 Functions of Insurance Companies

The main function of insurance companies are to collecting surplus as premium and
distributing in productive ways as well as providing benefits to the insurance policy
holders in the case of financial difficulties. The insurance companies also build up the
economic confidence of publics through sharing risk and generating income schemes
(Shrestha & Bhandari, 2007).The functions can be described as below in brief.

Premium collection
The insurance companies collect premiums in many ways like; installment basis or
lump sum basis which insures to provide benefit in the case of future financial losses.
Collecting premium is the task of capital formation to mobilize in needy sectors.

Distributing risk
The insurance companies distribute risk among several peoples and diversify their
risks by investing in different portfolios as well as in reinsurance.

14
Protection

The insurance companies protect from falling financial status in the society in the case
of unexpected losses. The protection refers safety as in existing situation and
encouraging for more and more business activities.

Settlement of claim

Insurance companies provide the claim amount of policy holder in the case of actual
financial losses through proper evaluation process.

Making portfolios
The insurance companies are professional legal entities for making investment
portfolios thorough which they can able to provide the claim and other bonus
packages to the policy holders. Furthermore, insurance companies diversify their risk
of investment to enhance profitability.

Matching risk and return

The insurance companies are professional for matching risk and returns through
diversifying risk and increasing the benefits. They match risk & return by making
available fund in the case of risk appear and creating revenues by making appropriate
portfolios.

Investment in productive sector

The insurance companies have important role in mobilizing funds in productive areas
or big projects of the economy which ultimately contribute in economic development.

Benefit to society

The insurance companies provide benefit to society through accepting risk by taking
small premiums. Besides that they provide benefit as an investment return, larger
financial support to nominees, transferring risk of investment, employment
opportunity creation.

15
2.6 Existing problems for the growth of Nepalese Insurance
Companies

It is no doubt, obvious to have progressive approach by any institution. If the different

circumstances come to play anti role for their healthy growth, the unpleasant
condition comes (Shrestha & Bhandari, 2007). As far as the problems for the growth
of Nepalese insurance companies are concerned, it comes to be necessary to cite some
points in this context.

a) Limited scope for business: the volume of business is, undoubtedly, one of
the key factors to check about any company’s economic condition. The
limited resources, land locked background, inefficient utilization of exited
resources and political unsuitability etc. are seemed responsible for playing
anti- role in the context of not getting proper opportunity for increasing
business activities in the insurance field.
b) Great competition among existed companies: The interest of getting
business of the present existed so many general insurance companies comes to
meet with each other due to lack of volume of insurance business in the
market. The popular sentence that one’s gain is others loss come to be suitable
in Nepalese Insurance Field.
c) Lack of awareness: The backbone of development of insurance field is
awareness about the importance of its coverage. In Nepalese context, it is seen
that people get their property insured only coming under bank or other
financial institution’s compulsion. As far as getting their personal property
insured is concerned they show their passive reaction about that. Only, the
nominal case comes to be seen in that case.
d) One sided economic condition: The paradox of Nepalese economic condition
is to be one sided in nature. In spite of being maximum part of Nepal “rural”,
the economic condition is found centered on limited town. Naturally, the
existed insurance companies in town are facing tight competition as well as
unhealthy.

In this way, these sorts of problems are generally seen in Nepalese Insurance Market
Field. For the long lasting growth and development of insurance companies all sectors
should work together and try to overcome problems.

16
2.7 List of insurance companies in Nepal

At present 26 insurance companies are providing insurance service in Nepal. Among

the 26 insurance companies 2 are composite office providing both life and general
insurance, 8 are specialized in life insurance whereas 16 are general insurance
companies (Dev, 2015). They are:

 Surya Life Insurance Company Limited

 Prime Life Insurance Co. Ltd.
 Nepal Life Insurance Co. Ltd.
 National Life Insurance Co. Ltd.
 Life Insurance Corporation (Nepal) Ltd.
 Gurans Life Insurance Co. Ltd.
 Asian Life Insurance Co.
 American Life Insurance Co. Ltd. (ALICO)
 Non- life Insurance company
 Alliance Co. Ltd.
 Deposit Insurance and Credit Guarantee Corporation
 Everest Insurance Co. Ltd.
 Himalayan General Insurance Co. Ltd.
 Lumbini General Insurance Co. Ltd.
 National Insurance Co. Ltd.
 NB Insurance Co. Ltd.
 Premier Insurance Co. Ltd.
 Prudential Insurance Co. Ltd.
 Sagarmatha Insurance Co. Ltd.
 Surya Life Insurance Co. Ltd.
 Siddhartha Insurance Co. Ltd.
 Oriental Insurance Co. Ltd.
 Rastriya Beema Sansthan (RBS)
 National life and General Insurance Co. Ltd.
 NLG Insurance Co. Ltd.
 United Insurance Co. (Nepal) Ltd.

17
 Chapter Three

INTRODUCTION OF SURYA LIFE INSURANCE

COMPANY LTD

3.1 An Overview of Surya Life Insurance Co. Ltd

Insurance Company promoted by a young team of reputed industrial and business

houses involved in various fields like Aviation, banking, manufacturing, travel trade,
media house etc. Surya Life Insurance Co. Ltd (SLIC) is an established general
insurance company which was registered in company registrar’s office on 2063 BS
and got the authority to work in the insurance industry from regulatory board (Beema
Samiti) on 2064/12/06. It was registered as private sector promoted public limited
company with paid up capital of NRs 125,000,000. The insurance company enjoys the
status of one of the largest Nepalese private sector promoted non life insurance
company currently operating in Nepal.
SLIC is promoted by the young team of individuals having vast experience and
excellent leadership that has steered their respective companies through the years.
They reperesent the various walks of life.
This insurance company has head office at Sano Gaucharan, Kathmandu. SLIC have
149 Branches at Sano Gaucharan, Ekantakuna, Satdobato, New Road (Ktm),
Biratnagar, Birganj, Pokhara, Nepalgunj, Butwal, Narayangadh, Hetauda, Itahari,
Birtamod, Dhangadhi, Dang and Lahan along with Bancassurance in Kumari Bank
and Global IME Bank, and regional offices at Biratnagar and Hetauda.

3.1.1 Surya Life’s Vision and Mission

Vision

The Vision of Surya Life Insurance Co. Nepal Ltd. is to be amongst the leading
insurance company of the country with the clear perception of upholding the
principles of corporate governance and making SLIC a profitable and growth oriented
insurance company while creating insurance awareness and culture. SLIC believes in
the phrase “in customer we believe”.

18
SIC objective is to please their customers by fulfilling the insurance needs as best as
possible. The main objective of Surya Life Insurance is to set the standard for the
insurance industry by providing quality service that exceeds customer expectation.

They believe in placing the client at the center of business and all of the products and
services. Service excellence is one of the objectives of SIC. SIC strives continually on
the development of new areas of activities to distinguish itself in the marketplace
along with traditional insurance company’s activities. SIC’s Training and
Development program of its employees is aimed at developing skills of its employees.
It makes positive contribution to the service culture of the insurance system as a
whole.

Mission

The company’s mission statement is: “Guarantees to provide its policy holders the
best available insurance protection and prompt settlement of claims when needed”

3.1.2 Objectives of the SLIC

SIC objective is to please their customers by fulfilling the insurance needs as best as
possible. The main objective of Surya Life Insurance is to set the standard for the
insurance industry by providing quality service that exceeds customer expectation.

They believe in placing the client at the center of business and all of the products and
services. Service excellence is one of the objectives of SIC. SIC strives continually on
the development of new areas of activities to distinguish itself in the marketplace
along with traditional insurance company’s activities. SIC’s Training and
Development program of its employees is aimed at developing skills of its employees.
It makes positive contribution to the service culture of the insurance system as a
whole.

19
3.2 Major Services Provided by Surya Life Insurance Co. Ltd

 Help beneficiaries pay off a mortgage

 Household Effects Insurance
 Help Retirement Fund
 Personal Accident Insurance
 Handling Self Insurance Programs
 Cash-In Transit & In Safe Insurance
 Banker Blanket Indemnity Insurance
 Burglary & House- Breaking Insurance
 Fidelity Guarantee Insurance
 International Travelers Medical Insurance
 Group cum Family Hospitalization Insurance
 Electronic All Risk Insurance
 Golfer’s Insurance
 Students Safety Insurance
 Medical Practitioners Indemnity Insurance
 Lift (third Party liability) Insurance
 Contractor all risk i.e.

Some of the major services provided are described in detail below:

Fire Insurance: The subject matter of fire insurance may be any kind of movable or
immovable property having pecuniary value; some of the example is building, plant
machinery, furniture, fixture and fittings, household articles, stocks and merchandise
etc. Fire policy can be extended to cover the following additional risks:
 Earthquake ( Fire and Shock)
 Riot and Strike Damage
 Malicious Damage/Terrorism
 Storm, Tempest, Hurricane, Flood and Inundation
 Aircraft Damage or Articles dropped there from
 Explosion
 Impact damage and Landslide

20
Household Insurance: Under this insurance the Company will indemnify the Insured
against loss or damage to the Private Dwelling House and the Household contents
there in, various perils without an extra premium. The main objective of this
insurance is to protect the material interest of the service-holders on their residential
building of RCC/RBC construction and the house-hold there-in up to the sum insured
of Rs. 40, 00,000.00 or may be extended as per individual.

Motor Insurance: Covers the vehicle comprehensively against all types of losses and
damages including liability to third parties in respect of bodily injury, death or
property damage.

1.Third party liability : Limited to the risk of the third party.

2. Comprehensive policy includes own damages in addition to Third Party Liability

by :

 Accidental External means

 Fire, external explosion, self-ignition, lightning, burglary, house-breaking or
theft.
 Malicious act.
 (i) Whilst in transit by road, rail, inland waterway, lift or elevator and; (ii) the
insured's liability to third party both in respect of bodily injury and properties
of the third party.

The policy can be extended to cover the following perils on payment of additional
premium: Flood, Earthquake, Strike and Riot Damage and Terrorism etc.

Marine Cargo Insurance: The Company provides Marine Cargo Insurance overseas
and inland transit for goods whilst in transit by Ship, Air, Rail or Road. This
insurance can also be extended to cover all risks of loss of or damage to the goods
insured and also caused by War, Strikes or Malicious act as per the Institute Cargo
Clause.

Personal Accident Insurance: This policy covers financial loss that may arises as a
result of accident caused by external violent and visible means causing death or

21
disablement by bodily injury. In the case of Comprehensive Personal Accident
Insurance it covers Temporary Total Disablement and Medical Expenses up to fixed
limits. Besides, the policy is extended to cover the risk of Trekking, Mountaineering,
Expeditions, Rafting, and Commercial Flights etc. But this policy does not cover the
chartered-flights, unless rescue is covered.

Cash in Transit Insurance: This cover provides an indemnity in respect of loss of

money carried by authorized messengers whilst in transit from one place to another,
specified in the policy due to robbery, loss caused by the accident of vehicles and
airplane. This insurance is intended for banks, industrial, manufacturing and business
concerns that periodically draw from banks or other sources large sums of money for
payments of salaries and for other day-to-day transactions.

Burglary Insurance: This insurance is intended to cover contents of premises against

loss or damage by burglary and/or house-breaking. Here the burglary and house-
breaking are defined as theft, involving entry to or exit from the insured premises by
forcible and violent means. It is a general condition of this policy that a watchman or
a security guard is available in the premises on a 24 hours basis.

Fidelity Guarantee: This insurance is intended to provide an indemnity to the

employer for financial loss sustained as a result of forgery, embezzlement, larceny of
fraudulent conversion of money of the employer committed by salaried employees in
the course of performance of their duties. The maximum liability under the policy will
be the amount of guarantee.

Bankers Indemnity Insurance: This Insurance provides an indemnity to the Banks

in respect of the following risks:
i. Loss of money or securities by fire, riot and strike, burglary house-
breaking, theft, robbery or holdup.
ii. Loss of money or securities in transit.
iii. Payment of forged or raised Cheques, Drafts and Fixed Deposit Receipts.
iv. Dishonest Acts of employees in respect of money and securities.
v. Dishonest Acts of employees in respect of hypothecated of pledged goods.

22
Group/Family Hospitalization: This scheme is introduced on the occasion of its
10th anniversary in view of the increasing need of Health insurance with wide
coverage at economical premium rate. The range of covers and arrangements are:
In the event of any claim becoming admissible under Hospitalization Insurance, the
company will pay to the insured person(s) 85% of the amount of such expenses which
are actually and necessarily incurred in respect thereof anywhere in Nepal or on
behalf of such insured person(s) but not exceeding in any one period of insurance
amounts mentioned under the category in the Table of Benefits. Hospitalization
expenses for such illness/disease/injury which is in the normal course could require
care and treatment at hospital/nursing home only. This insurance is available to
persons between the age of 6 and 60 years and cover may be taken for spouse and
dependent children (2 nos. only) and/or dependant parents. Premium rate per annum
will be 1.5% of Sum to be insured.

Medi-claim Insurance: SIC has introduced "International Travelers Medi-claim

Policy" with wide coverage at moderate premium rate. The range of covers and
arrangement has been briefed for the information. It covers:
 Personal Accident
 Emergency Medical and Air Ambulance Expenses
 Hospital Benefit
 Loss of Checked Baggage
 Delay of Checked Baggage
 Loss of Passport
 Personal Liability

23
3.3 Present Scenario of SLIC

Among the leading insurance companies, the company stands as the:

 Leading Companies in terms of premium collection.

 Among the companies with the highest paid up capital in the country
 Allocated shares of 25000000 to the general public which was oversubscribed
by 44 times.
 Among the companies having the best available manpower in the country
along with in-house developed young team of professionals.
 Ready to implement an integrated software first of its kind in the country.

3.4 Organization Structure of SLIC

The organizational structure had the chairman or BOD at the top level. CEO is under
the chairman. The AGM and DGM are held responsible under the CEO. There are
departments divided on the basis of jobs done i.e. Accounts, Underwriting, Claim,
Marketing, and Human Resource. Every department has its own manager who took
responsibility of all works regarding his department. The officers worked under the
managers and assistants worked under the officers.

24
 Figure 3. 1
Structure of SLIC

BOD

CEO

Management

DGM AGM

Departmetnt

Underwriting Human
Accounts Claim Marketing
Resource

Manager

Officer

Assitant

Source: Internship Details

25
3.5 Branches

In order to serve its customers, SLIC has set up its branches at various places of Nepal
which are strategically important in business perspectives, availing SLIC’s services to
the general public and at the same time proving to be profitable to the bank itself.

SLIC have 149 Branches at Sano Gaucharan, Ekantakuna, Satdobato, New Road
(Ktm), Biratnagar, Birganj, Pokhara, Nepalgunj, Butwal, Narayangadh, Hetauda,
Itahari, Birtamod, Dhangadhi, Dang and Lahan along with Bancassurance in Kumari
Bank and Global IME Bank, and regional offices at Biratnagar and Hetauda.

3.6 SLIC Products

The main function of the Insurance Company is creating and selling Insurance
policies. To create and sale the insurance policies, insurance companies require to
perform various sub functions. The product bears certain price to charge its
customers. Insurance Company requires performing various activities from the time
of product sales to settlements of claims. Like Surya Life Insurance also provides
product like

 Proposal Forms
 Annual Reports
 AGM Minute
 KYC Forms
 Our Network
 Seminar Workshop
 “Hole In One” Insurance

3.7 SWOT Analysis of SLIC

SWOT analysis is done to find out the strength, weakness, opportunities, and the
weakness of the organization. The strength and weakness points out what the
organization can do good and what it cannot do. The opportunities shows the
possibilities in future and threats show from what the organization must be careful of.

26
3.7.1 Strength

 Young and enthusiastic founder

 Experienced and skilled employees.
 Centrally located company and the branches
 Continuous training to the employee.
 Compassionate Customer Service
 High Goodwill and Trust
 Computerized Information System

3.7.2 Weakness

 Lack of advertisement
 Improper distribution of work
 Rigid with rules and regulation

3.7.3 Opportunities

 Growth in investment in the country

 Global and local economic growth
 Increased awareness about the importance of insurance after the massive
earthquake 2071
 Increased Scope of the insurance

3.7.4 Threats

 Political uncertainties
 Unhealthy competitions
 Lack of social Security

The SWOT analysis of the SLIC signifies that its strengths overcome its weaknesses
and its opportunities are more than its threats. This is a positive sign for any
organization.

27
 Chapter Four

ANALYSIS OF ACTIVITIES DONE/ PROBLEMS

SOLVED

4.1 Assigned Departments

The main objective of internship program was to learn the works that takes place
every day in the insurance sector. The insurance has different departments and the
works to be carried out in these departments also vary in nature. Though the works
are varied in these different departments, but these departments are linked to each
other in some way or the other. During the period of internship i.e. 8 weeks I got an
opportunity to work in underwriting department of SLIC, and the sub departments,
that I was assigned during my internship were:

 Renewal Department

 Reinsurance Department

4.2 Activities Performed in Renewal Department

Renewal department is the sub department of the Underwriting department of an

insurance company where all the issued policies are renewed after its expiry. Usually
non-life insurance have a one year time period and after that the insurers needs to
renew their policy to reduce the risk. The renewal department deals with the various
renewal function performed by the company, which are explained below :

4.2.1 Renewal Proposal letter

Usually the non-life insurance policy expires within a year. The client needs to renew
his or her policy after the completion of insured time frame. The company issue the
letter to client whose policy is about to expiry and inform him/her. It is a proposal
letter where the company offers the clients to renew their policy.

Renewal Proposal Letter Procedure in SLIC

Proposal letter offers the clients to renew their soon to be expiring policy. The
procedures for Renewal proposal letter is:

28
 Figure 4. 1
Steps for Renewal Proposal Letter

Finding out the policy which is going to expire

Enter policy number, name, address etc in a format

Verify the policy number

Print the letter

Attach the proposal letter with Policy copy

Source: Internship details

 The policy which is going to be expired soon is located.

 The Policy number, date of issue, date of expiry, insurer name, address etc is
enter in the specific format.

 Policy number is very important in insurance, so the policy number is verified

again to increase the work accuracy.

 The proposal letter is printed

 The copy of policy is attached with the proposal letter to send to the client.

4.2.2 Assigning the Batch Number to the policy

There are numerous policy issued per day in Surya Life insurance of different types,
different people for different time frame. But there are also policies issued by the
same person under different types. The each policy needs to be identified with unique
number which differentiates it from one another, for storing the overall information
about the client, policy, insured things etc. The batch number is assigned with the help
of the Premia Software. Assigning the batch number is very crucial for over all
storage of the information. This process follows, following steps :

29
 Figure 4. 2
Assigning Batch number

Login the Premia software

Enter the Underwriting section ; Renewal

Enter the policy number and toggle

Enter the necessary information in specific format

Record the unique batch number in OC

Process again for the unique proposal number

Source: Internship details

Assigning the batch number is the crucial task for the renewal department. The batch
number provides the unique identity and helps in storing the information about the
insurer and the insured things. At first, the Premia software is logged in with the
unique id and password assign to the employee. There are numerous section of
Premia, representing various department, under this renewal is selected and the
required information about the client from the OC of the policy is entered in specific
format and the unique batch number is generated through the help of the software.
The unique number is recorded in the OC of the policy. The batch number is renewed
every year with renew of the policy. After the unique number, the software also helps
to generate the unique proposal number.

4.2.3 Calculation of Depreciation

Before assigning the renewal proposal letter the premium amount is to be calculated
which is based on the depreciated value. Each year the, value of the insured object

30
depreciate so does the premium value. The value is depreciated at 10% annually if
there is no depreciation rate assigned by the insurance Act and the value below the
100000 is not depreciated.

4.2.4 Checking Claim

The next task performed by the intern is checking claim. The premium price for the
policy varies as per the previous claim made by the client. If there is no claim made
within 5 years the no claim discount in premium will be 25%, within 4 year 20%,
within 3 years 15% and within 2 years 10%. The claim data are recorded by the Claim
department and checked by the renewal with the help of OC.

4.2.5 Calculation of the Premium Amount (Manual and Software)

The premium amount is calculated with the use of pre determined schedule in the
manual process. The premium amount is calculated by entering the following data:

 Cubic Capacity
 Age of Vehicle
 Sum Insured
 EOD Amount
 No claim Discount
 Direct Business discount

After the premium is calculated manually the schedule is printed. After the manual
calculation the amount needs to be verified by calculating the amount through the
Premia software. The necessary information is entered in the software and the
calculation is done by the software after following series of steps. The renewal notice
can only be printed after the premium calculated is verified in the Premia Software.

4.2.6 Renewal Notice

The renewal notice is printed with the help of the Premia software. After the premium
amount is calculated by the Software, the batch number of the policy is entered by
logging in Premia. The policy number, name, address and amount is verified and the
notice is printed. The Premium calculation and renewal notice ; one copy is sent to the
client whereas another copy is attached with the OC.

31
4.2.7 Others

There were many other tasks performed which are listed below:

 Record maintenance
 Filing
 Searching of the required files for CSD

4.3 Activities Performed in Reinsurance Department

Insurance companies often purchase insurance to cover their own exposure to loss.
This is called reinsurance. Reinsurance helps protect insurance companies from
catastrophic losses and from wild fluctuations in underwriting results. This coverage
can be obtained on a policy-by-policy basis or on the basis of a whole block of
policies. The reinsurance can cover the initial insurer for losses above a certain
amount or can call for losses to be shared on a pro rata basis.

4.3.1 Calculation Daily Collected Premium

The main source of income for an insurance company is from premium. The SLIC
maintains the daily record of the total amount collected in excel. This is the most
important work for the SLIC, where the data is store in computerized form and is
extracted by various departments. The systematic storage of the data is done under
various heading like Policy no. , Name, Address, class, premium amount, bills no etc.
The daily amount of premium collected is then stored in a master file where the total
amount of the year is stored which shows the premium collected from various types
of insurance. At the end of the amount collected from premium deducting the refund
is communicated to the CEO.

4.3.2 Updating Marine Cargo

The Company provides Marine Cargo Insurance overseas and inland transit for goods
whilst in transit by Ship, Air, Rail or Road. This insurance can also be extended to
cover all risks of loss of or damage to the goods insured and also caused by War,
Strikes or Malicious act as per the Institute Cargo Clause.

32
The insurer already had a certain amount fixed in the SLIC accounts, and used to send
the amount of insurance proposal on daily basis. The SLIC needed to record the daily
proposal amount and match with the balance and be careful the insured amount does
not exceed the balance amount.

4.3.3 Co-insurance Proposal

The SLIC does not do the insurance exceeding the amount more than 7000000 so it
needs to offer the remaining price to insurance, for that purpose, co-insurance
proposal is prepared. The letter is prepared offering the remaining amount attached
with the original OC via email and postal mail.

4.3.4 Co-insurance Schedule

After the co-insurance proposal is accepted by the other insurance company, the
proposer needs to make a co-insurance schedule, with the detail information of their
own share, the co-insurer share, agent commission, total amount insured etc. So, that
the co-insurers will have a detail information about the co-insured policy and their
share of risk and premium.

4.3.5 Co-insurance Letter

The letter needs to be sent to the co-insurer with the co-insurance schedule as the
assurance of the offer. The letter is attached with the co-insurance schedule and sent
to the co-insurer office.

4.3.6 Other Activities

The other activities performed under the RI department are:

 Updating CIT
 Recording the information of the TMI for Reinsurance.
 Checking balance with the accounts, co-coordinating with accounts
department for co-insurance payment.
 Adding the balance of the client under various Policy deposit.
 Maintaining travel policy records and updating the Travel Insurance.
 Writing the proposal mail to other insurance company.
 Responding to the co-insurer mails.

33
4.4 Problems Identified and Solved

During the internship period there arose several problems that had affected the
insurance environment severely which was solved with various applied techniques.
The problems identified and solved by the intern have been listed below:

 Unclear Document

While preparing the renewal calculation the information were not clear or insufficient
so the intern consulted the authority and cleared the doubts and move forward towards
the procedure.

 Unable to Contact the Customer

During the preparation of the renewal proposal, it was difficult to reach to the
customers due to wrong contact number provided by the customer. Some of the
customers even did not pick the call or the number provided to the insurance was not
valid either. So the supervisors had to mail the customers, whom they could not
personally contact asking them to provide their proper contact details as soon as
possible and as per their feasibility.

 Systematization of the Documents and Batch entry

Renewal department had the largest number of files for storage, where each files
needs to be organized in systematic order and a unique batch number is to be assigned
to each policy every year. Being in a large number it was very difficult to arrange
them manually and assigning the batch number was very tough and difficult lengthy
process

The intern solved the problem with the regular practice and continuous guidance from
the supervisor. The intern jotted down the steps and looked at the sequential steps at
the time of confusion.

34
  Difficult to prepare and issue proposal

As all these process were very new to the intern, it was difficult at the initial phase to
understand the proposal writing steps, and ways of issuing it. The variety of the
format created the difficulties in understanding and learning the process.

The problem was solved by in depth study of the previous proposal and continuous
communication with the supervisor helped to solve this problem and be more perfect
in the work assigned.

4.5 Observed Gap

An internship has the dual role of providing a means for students to put into practice
the range of techniques employed within constructive theory and understand the
relevant problems associated with in practical application of such measures. In
addition, work experience placements and internships can help the intern acquire the
necessary communication and intra personal skills that are required these days in
order to compete in struggling economic situation. The internship at a reputed
insurance of Nepal allowed the intern to learn about the variances between the
theoretical knowledge and prevailing practices in the insurance, which are as follows:

 The entire activities are interconnected through computer network, any glitch in
the system within the network causes the delay in work which also leads to
dissatisfaction in customers.
 There are no particular theory regarding how to deal with the customer behaviour,
because each of them have different perception and attitude towards services the
bank provides.
 The job description of personnel does not restrict them from performing other
related task as per the requirement. For example, a staff at underwriting might as
well move to renewal to perform related task if needed.
 The insurance holds large amount of financial documents and records of its
customer. As the records get stacked and old, these data are not maintained in
systematic order which eventually leads to loss of important information.

35
 Chapter Five

SUMMARY, LESSON LEARNT AND CONCLUSION

5.1 Summary

Internship is a short period training for educational fulfillment which is usually

performed by college or university students as per the demand of the course. At the
end of the internship, it helps the student to develop their area if interest in a related
field. It gives the practical knowledge and experience on the related field.

SLIC is one of the prominent and successful insurance of Nepal and which has been
rendering its service to people in different parts of the country by reducing the risk
and uncertainties. The SLIC was established on 2004 by the young team of reputed
industrial and business houses. The company uses the Premia software to perform its
day to day activities. The company gives the major focus on delivering value to the
customer through prompt, convenience and customer friendly system. With the most
dedicated top management and hardworking employees, the SLIC have been able to
establish itself as one of the leading insurance company with highest paid up capital.

The internship report is designed to provide information on various aspects of

insurance, to study the different products and services offered and apply the acquired
theoretical knowledge in real working life through observation, participation and
interaction. From this internship the intern understood the value of team work,
interpersonal communication, importance of personal and public relation etc. The
intern also got opportunity to know about the work environment as well as the
functioning of the insurance.

5.2 Lessons Learnt

The duration of internship lasted for 8 weeks and during the course of the internship
there were various lessons that I was able to learn. This internship was a great
opportunity for me to face real-life work scenarios after four years in the classroom,
and it must be said that it was a great learning experience for me. Some of the lessons
I learnt during the time as an intern at SLIC could be summarized as follows:

 The day to day operation of Renewal Department and the process involved with it.

36
 Coordination of workforce and the various activities for the smooth operation of
the company.

 The importance of time management and punctuality in real work life.

 The importance of interpersonal communication skills in professional life.

 Use and operate various machinery, equipment, and systems.

 Work under pressure.

It was a great opportunity to be a part of SLIC and learn during the eight weeks’
internship programme. This has given me adequate feedback on how to face
challenges in practical terms and mix up with the organization culture giving me best
for the betterment of individual as well as organization’s career.

5.3 Conclusion

The objectives set and the outcome of the intern program was converging and even
the achievement was more than it was expected. The intern was placed in the
organization to attain the objectives set by the Tribhuwan University, DAV college of
management, SLIC and the intern herself.

During the internship, the intern was benefited from the exposures and knowledge of
the real business situations. Before this experience my knowledge of organization
(insurance) was very little and limited to books only. But from beginning to end of
my internship I got a practical acquaintance of the bank and the corporate culture.At
Sanima, I was cooperatively guided by all the banking personnel who helped me in
acquiring the in-depth banking knowledge.

An internship at Sanima not only helped in learning the automated systems, but also
the manual process of doing works in the bank. It helped gain tremendous knowledge
and experience with different departments as well as working principles of
commercial banks.The intern observed various activities performed at customer
service department and also performed variety of tasks by himself. Moreover, the
intern also got the opportunity to be involved in HRD of bank and learnt about the
recruitment process of employees which is one one of the major functioning part of
HRD.

37
Finally, the outcome of this internship program is that the intern has built up enough
confidence and knowledge about the banking sector, and can contribute the learnt
abilities to businesses with high efficiency and diligence.

38
 Refrences

Dev. (2015, August 11). oneclicknepal. Retrieved from http://oneclicknepal.com/list-

of-all-insurance-companies-in-nepal-with-telephone-number/

Joshi, P. R. (2001). Research Methodology(led). Kathmandu: Buddha Academic

publishers and distributors pvt. ltd.

Shrestha, M. K., & Bhandari, D. B. (2007). Financial Markets and Institutions (2ED).
Kathmandu: Asmita Publications.

Surya Life Insurance Company Limited. (2017, July). Surya Life Insurance.

Retrieved from Surya Life Insurance : www.Surya Lifeinsurance.com

Thapa, K., & Parajuli, B. (2013). Fianancial Institutions and Markets.

Kathmandu: Januka Publications.

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 APPENDICES

APPENDIX- I

List of Board of Directors

Name Position

Mr. Rajendra Prasad Sharma Chairman

Mr. Ang Tshiring Sherpa Director

Mr. Ramesh Kumar Luitel Director

Mr. Skand Amatya Director

Mr. Saurav J.B Rana Director

Mr. Dinesh Bajra Bajracharya Director, Public Share holdera

Source: Website of SLIC

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 APPENDIX-II

List of Management Team

Management Team Designation

Mr. Dip Prakash Pandey Chief Executive Officer

Mr. Bimal Raj Nepal General Manager-Claims

Mr. Puskar Mahat General Manager-Marketing

Mrs. Sabita Maskay Deputy General Manager

Mr. Udit Prasad Kafle Assistant General Manager

Mrs. Barishma Acharya ( Saud) Assistant General Manager

Mr. Prajwol Acharya Assistant General Manager

Mr. Suraj Rajbahak Manager / Company Secretary

Source: Website of SLIC

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 APPENDIX-III

Major Clients
S. No. Name

1 Goma Air

2 Air Kasthamandap

3 Simrik Air

4 Avia Club Nepal

5 Makalu Air

6 Dhulikhel Lodge Resort

7 Hotel Himalaya

8 Crowne Plaza hotels and resorts

9 Godavari Village Resort

10 Pokhara Grande

11 Siddhartha Bank

12 Himalayan Bank Ltd

13 Civil Bank Ltd

14 Global IME Bank

15 Mega Bank Nepal Ltd

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16 Nepal Investment Bank Ltd

17 Sunrise Bank Ltd

18 Century Bank

19 Laxmi Interncontinental

20 United Traders Syndicate

21 Continental

22 Sipradi

23 Mercantile Communication Pvt.

Ltd

24 Vianet

25 Worldlink

26 Huawei

27 Image channel

28 Subisu cable net

29 Ncell

30 Nepal Telecom

31 Norvic International Hospital

32 HAMS Hospital

33 Bhatbhateni Supermarket

34 Little Angels School

35 Ullens School

36 St. Mary’s School

37 St. Xavier school, Jawlakhel

38 Natraj Tours and Travels

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 39 President Group of companies

40 Etihad Airways

41 Greenline

42 World Vision

43 Habitat for Humanity

44 ICTJ

45 ICRC

46 AMBE Residency

47 Rule of Law Initative

48 Hello Nepal

49 APCA Nepal

50 ACE Development Bank Ltd

Source: Website of SLIC

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 APPENDIX-IV

Reinsurer
S. No. Name

1 General Insurance Corporation, India

2 Tokio Marine Global Re,Luban

3 African Re, Mauritius

4 ICIC Lombard

5 Sirius International, UK Branch

6 New India Assurance Lts

7 Iffco Tokio, India

8 Best Re

9 Various Lioyds Syndicate

10 Malaysian Re

Source: Website of SLIC

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H