State Life Insurance
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106
We shall guide w
ho striv e in our
cause to the pa th leading to us. Sur el y ALLAH is with those w
ho do
well. (AL-ANKAB UT).
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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DED ICA TI ON . Dedica ted to m y belo ved countr y and to the people w
ho de vote d their
liv es f or the fr eedom of this countr
DEPARTMENT OF MANAGEMENT SCIENCES IUB
y.
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106
PR EFACE. T he c on tri bu tion o f t he ser vi ce to th e P akist ani ec on omy is in cr easing a t a n e xtr a or din ar y r ate an d th e pr ese nt fi na ncial se r vic es r evolu tion lo oks ce r tai n to r ein for ce th at tr end consi der abl y. T he co nt ext do es no t c laim to e xha ustiv e and the bal an ce mus t ine vi ta bl y be o pe n to c ri ticism, b ut in atte mp tin g to giv e a ge ne r al insig ht to th e cas ual inq uir er, the ne eds o f t hos e seeki ng in-d ep th
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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kn owled ge wi thi n par ticul ar a r eas m ust in evitabl y be sacri fic ed. T his r ep or t c over s a d et ail and anal ytical view of th e S ta te L if e Ins ur anc e Cor por ati on. As t he titl e th at this r epo r t is the essen ce o f t he har d w or ki ng w hi ch I ha ve do ne dur ing my in ter nship te nu r e. T his r epor t has b ee n wri tt en in t he hop e th at it will hel
p
any bo dy, w ho r ead it ca r efull y t o o bt ain a r eal un de r sta ndin g o f th e b asic str uct ur es, f un cti ons an d te chniq ues o f t he di f fer en t de par tme nts o f S ta te Lif e I nsur an ce Cor po r ation. T he rep or t is lo ng an d wor dy. I ho pe that the r epor t is r ela tiv el y f r ee of er r or s an d will a ppr ecia te i f er r or s ar e b r oug ht to atte nt ion.
UB AID -U R-R AHMAN .
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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ACK NOWL ED GME NT. I t ha nk all mig hty AL LAH, the be ne fic ent a nd th e me r ci ful, who gave me a chan ce a nd e no ug h po wer to wri te th is r ep or t. I w ant to expr ess my g rati tud e an d th an ks to t he Zon al Hea d Mr. T ufail Ahm ad C h. , Mr . Ish faq Ab basi D ep uty Ma na ge r PHS an d spe ciall y M r. Im tiaz Ali
for e na bli ng me t o
de vote p ar t t hei r pr eci ous tim e in th e pr ese nt atio n of th is r ep or t. I f eel it my bo un de d du ty to ac kn owle dge w ith d ee p g rati tud e an d in valuable hel p e xte nd ed t o me by my r esp ect ed t ea cher s an d fr ien ds. I am es pe ciall y g ratef ul to M r. Nazik Hussian f or his enc ou r a geme nt a nd g uid an ce to co mple te t his rep or t. All t he addi tion al typin g w as ele gan tl y ef fect ed by M r. Sh oib A kba r, who sho wed co nside r able c r upt og r aphic al e xp er tise, not to me ntio n imme nse pa ti enc e, in ma king som e sense ou t my un tidy an d mu ch ann ot ated scrip ts. To all th ese I ca n onl y say - T han k You. I ho pe th at th e en d pr od uc t is n ot t ot all y u nw or thy o f th e tim e and ef for ts th ey most g en er ousl y g ave.
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UB AID -UR -RA HM AN .
Table of Contents 1- Company
and it's Int
2- Mission and Objectiv
r oduction. es.
3- Or ganiza tional Str uctur e. 4- Divisions. 5- Depar tments. 6- File Mo vements. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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7- Customer and
P r oducts.
8- Bonuses. 9- Supplementa
r y Contr acts.
10- Basic Salar
y and Gr ading.
11- Calcula tions. 12- Mar keting Channel. 13- Selling Pr
ocess.
14- Mana gment St r eta gies. 15- SW OT Anal ys is. 16- Competitor
s.
17- Ra tio Anal ysis.
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IN TODUCT OIN Ins ur anc e. Ins ur anc e Com pa nies. Ins ur anc e Evalu ati on. Lif e I nsur an ce in P akist an. St ate Li fe in P akis ta n. St ate Li fe in B ah aw alp ur.
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INTRODUCTION Insurance Insurance
means
that
the
Probable
loss
occurring in future can be so shared that the overall
impacted
individual
or
of
total
section
of
loss the
to
any
society
is
mitigated. Insurance can be of life for the compensation in
case
of
normal
or
accidental
death
or
of
p r o p e r t y l i ke c a r, b u s s h i p , a i r p l a n e , e t c . i n case
of
loss
caused
ear thquakes
etc.
compensation
for
by
fire,
floods,
insurance the
loss
to
provides a
maximum
extent.
Histor y of Insurance: The
need
of
particularly
by
hundred-year remaining cargo
sea ago.
away
carried
sharing perils The
losses was
caused
left
several
merchant
for
months
with
them
with the
ships
valuable hope
of
mar keting profits upon their safe retur n. T he
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p e r i l s o f t h e s e a h ow eve r, i n f l i c t i n g ex t e n s i ve damage to the ships and the goods loaded on them
resulting
disaster those
in
sometimes
ultimately involved
caused
in
the
great
the
total
concern
business.
to
They
consequently jointed hand to the way out and thus
insurance
was
found
to
be
the
only
possible means to save individual from total d i s a s t e r. T h i s i d e a o r i g i n a t e d f r o m C h i n a a n d then
developed
by
European
countries.
merchants
used
to
England In sit
and
the
other
beginning
together
and
for
certain define amounts, members used to sign documents the
accepting
ships
or
arrangement skilled
cargo
their
share
carried.
of
risk
This
initial highly
finally
developed
to
most
scientific
ways
and
in
for
assessment of risk and underwriting and still countries. The persons signing in acceptance of their shares are called underwriters.
Life INSURANCE: Life
insurance
insure certain
is
promises premium,
DEPARTMENT OF MANAGEMENT SCIENCES IUB
a to the
contract
whereby
p a y,
exchange
sum
in
insured,
on
the of the
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106
completion death
of
of
a
the
difference
definite
insured
between
period,
person.
life
or
on
the
There
insurance
is
and
a
other
for ms of insur ance like fir e insur ance, marine insurance automobile insurance etc. covering immediate financial and economic losses. In life
insurance,
with
it
exactness
occur
due
values
to
the
of
never theless,
are
as
death
maintaining
life
to
extant.
In
not
he
but
either
the
dies
if
he
only
only
income
producing
the
important
part
f a m i l y,
for
insurance
short
is
income of
the takes
source f a m i l y, over
the
death,
great
extant
solution to
a a
for
maximum man
entire
dies,
source
responsible the
of in
The
possible
of
when
for
to
repercussions
a
income
possible
likel y
for
workable of
ascertain
person.
result
related
source
the
financial a
possible
to
impact
of
the
the
as
easy
total
on
anticipated
and
not
the
placed
assessment
is
family
income such
liability
for
case and
of for or the life the
responsibility of meeting family needs.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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BE NE FIT S OF LIFE IN SU RA NCE Finac ial Pr otect ion Nece ss ar y S aving Pr oper ty B ui ld ing Loan Faci li ty Educti on and Mar ria ge pl an Income T ax reba te Retir ement Fund ST ATUE UNDER WHICH CREA
TED:-
Li fe i ns ur ance (N ationa li za tion) or der , 1972
(Pr es ident ial O r der X of 1972)
Da te of i ncor por ation : No vember 01, 1972
Le ga l s ta tus : Autonomous copor ati on under the contr ol of the mi ni st r y of Com mer ce, Go vt . of Pak is tan.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Pr incipa l Of fice :
Sta te L if e Bu ild ing No .9 Dr. Ziaud din R oad Kar ac hi, P aki stan.
MISSI ON
OF
STATE
LIFE
INSU RAN CE
COR PO RATI ON
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
“ To
ensure
satisfaction
of
our
valued
policy
holder s in processing new business providing after sales ser vices and optimizing returns of life
fund
maintain
through our
quality
position
culture
at
the
and
leading
to life
insurer in Pakistan.” OBJECTIVES OF SLIC Following are the objectives: To
run
life
insurance
business
in
sound
lines, To
provide
more
efficient
ser vices
to
p o l i c y h o l d e r, To m a x i m i z e t h e r e t u r n t o p o l i c y h o l d e r s b y
economizing
on
expenses
and
increasing
the yield on investment, To
make
life
insurance
a
more
effective
means of mobilizing national savings, To
widen
the
area
insurance
and
making
large
a
section
possible,
to
operation it
the
more
to
population
into efficient
common
of
available
the
extending
comparatively society
of
of
man
from sections in
town
life as as the of and
villages,
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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To
use
th3e
policyholders
funds
in
the
w i d e r i n t e r e s t o f t h e c o m m u n i t y.
Histor y of Life insurance In Pakistan: Before par tition, there were only three major insurance companies named Christian Mutual, Muslim and easter n Federal Union transacting life
insurance
the
ears,
The
need
through
which for
their
ultimately
having
a
Head
Office
for med
in
Pakistan.
composite
insurance
company par ticularly for Muslims was felt by some
of
the
And
Eastern
Company struggle Muslim
eminent
was of
Muslim
Federal
Union
established
those
Muslim
Insurance
personalities.
in
Insurance by
the
personalities.
The
Company
1932
of
Pakistan
was
of
companies
established in 1949. Before 1972,
the
nationalization
there
was
a
big
competition
in
between
companies involved in life insurance business in
Pakistan
companies Upon
as
there
offering
were the
nationalization
business
in
Corporation
1972, was
DEPARTMENT OF MANAGEMENT SCIENCES IUB
more
than
insurance of
State
for med
thirty
f a c i l i t y.
life
insurance
Life
Insurance
to
take
entire
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106
liabilities and assets as they related to life insurance business. Starting with three units A,B and C, it was soon merger into a single cor poration. Now including Bahawalpur Zone, there
are
thirty
zone
of
Stat
Life
Insurance
Corporation are working in different par ts of the countr y with Head Office at Karachi. In
Pak
,
nationalized
life
by
insurance
Govt.,
business
Order
in
was
March
19,
1972 and in fact this was an impor tant step toward
economic
development
in
the
history
of Pak. The
nationalized
process
was
completed
in
two phases. In first phase (March 19, 1972), the Govt. has taken over the administration of 32 companies. After this, these were handed over to tr ustee and sub-tr ustee in accor dance to life insurance nationalization order 1972. In
the
second
(November having
1,
three
phase
1972) units,
a
of
nationalization
single
came
into
corporation, existence
by
the name of State Life Insurance Cor poration (SLIC) of Pakistan.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
These three units, constituted by merging of one
or
named
more as
A,B
and
C
of
the
life
impr ovement these
units
insurance
(A,B
companies, units.
For
business
were further
in
Pak,
& C) were merged together
and conver ted into zones. SLIC life
has
enjoyed
business
decided
to
a
till
open
complete
1990 it
to
monopoly
when
the
Govt,
local
private
the had
sector
insurers. At present , besides SLIC, there are four
other
life
insurers
operating
in
the
countr y including two foreign companies. The state Life Insurance Cor poration is reinsured by
foreign
insurance
“Swiss
RE”
(Switzerland).
REGIONAL & ZONAL OFFICES
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REGIONAL & ZONAL OFFICES Regional Of fice
Zonal Office Lahore (Central) Lahore (Wester n)
LAHORE Re gion
Faisal Abad Sargodha Gurjranwala Sialkot Karachi (Southern)
KARACHI Region
Karachi (Easter n) Karachi (Central) Hyderabad Mir Pur Khas Larkana Quetta Rawalpindi Mir Pur
RA WA LP IN DI R e g i o n
Islamabad Peshawar Abbottabad Swat Gujrat Multan Sahiwal
Multan Re gion DEPARTMENT OF MANAGEMENT SCIENCES IUB
R a h i m Ya r K h a n Dear Ghazi Khan Bahawal Pur
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106
DEP ARMENTS:-
1- Agenc y Adminstr ation Depar tment. 2- Human R esour ces De volpm ent Depar tment. 3- New Buisness Depar tment. 4- P olic y Holder Ser vice Depar tment. 5- Budget and Accuonts Depar tment. 6- P er sonal and Gener al Ser vices Depar tment. 7- Mar keting Depar tment. 8- A udit Depar tment.
N E W B U S I N E S S D E PA R T M E N T New Business (NB) is considered the soul of Insurance companies. Profitability and
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
sur vival
of
the
business
depends
on
the
NB.
FUNCTION OF NEW BUSINESS In
this
department,
new
contracts
and
Insurance
person
who
as
start
the
name
between
C o m p a n y.
applies
shows,
proposes
Proposes
for
the
is
a
insurance
protection. Main function of the NB is underwriting. This
department
processing
the
is
new
responsible
business
for
introduced
by the sales force right from receiving a proposal policy has
on
the
counter
document
various
to
the
section
to
mailing
p o l i c y h o l d e r. to
perfor m
the It the
different task relating to the acceptance or
rejection
of
risks
for
life
insurance,
the proposal are received and initially is checked in all respects i.e. completion of al
columns
underwriters they
have
and
then
processed
depending been
upon
introduced
by
the
whether
under
the
medical or non-medical scheme. The risk
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
is assessed keeping in view the following factors: •
Personal
data,
physical
and
health,
occupation,
social
family
features,
histor y
of
the
prospect. •
Moral
hazard,
nomination,
source
of
relationship
income, between
the nominee and the prospect. •
Previous life insurance histor y of t h e p r o s p e c t i f a n y.
•
Field
officer’s
representatives report
included
or
sale
confidential in
the
proposal
for m. •
Financial underwriting i.e. source of
i n co me , i ts l e g al i t y a n d p r oof,
relationship prospect’s
between income
the
and
sum
assure. In
case
of
non-medical
scheme,
the
prospects own statement and filed officers or sales
representative’s
reports
have
more
importance.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
After
this
assessment,
the
underwriting
decision is made which may be acceptance of a
risk
at
calling
ordinar y
rated
additional
or
with
evidences
loading,
relating
to
health or financial status of the prospecting for
a
define
declination.
periods
Premium
or
rates,
straight
way
installments
are
then checked and first premium receipts are issued
to
the
department
field
like
force,
and
concerned
commission
payments,
agency administration, computer division and mar keting. function This
This
on
is
the
also
is
brief
new a
terms
business
key
are
the
department.
function
as
the
underwriters are responsible for the financial health god
of
the
risks
growth
life
they
which
institution. promote
help
in
By
accepting
profitability
meeting
the
and
financial
obligations of the life institution towards the policyholders,
its
employees
and
the
gover nment.
WORKING OF NEW BUSINESS
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
The precise working of NB depar tment is as follows:
PROPOSAL NUMBER In order to
fulfill
the
recognition of
the
i n s u r a n c e p o l i c y, N B d e p a r t m e n t a l l o c a t e s a
number
t
each
insurance
policy
for
future references. NB depar tment verifies whether the client is a new customer or a p a s t c u s t o m e r.
UNDERWRITING Underwriting which
the
is
the
process
underwriter
associated
with
Underwriter
the
through
assesses
Insurance
verifies
the
risk
Proposal.
the
personal
infor mation provided in the Proposal for m (See annex. No.1). If he feels that client should have a medical checkup then SLIC has
its
own
penal
of
doctors
to
pr ovide
medical assistance.
P R E M I U M C A L C U L AT I O N After
underwriting
Assured
is
the
calculated
premium in
of
Policy
Sum Brief
Sheet (see annex No.2) in according with the rate book provided by the SLIC. The DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
policy fee is charged of Rs. 100 or Rs 2.5 per
thousands
is
less.
of
sum
assured
Further
supplementar y
the
contracts
whichever rates
are
of
added
in
premium.
POLICY ISSUE SECTION After
premium
calculation
the
insurance
and revenue stamps are embossed on the policy bond and the policy d documents is sent to client (See annex No.3) one copy of
policy
document
is
sent
of
(PHS)
department of record purpose.
UNDERWRITING GUIDELINES •
Tak in g of Au th en tic A ge P r oo f
•
Verifi cati on on N omi nee Relati on with Policyholder
•
Analyzing
of
health
and
financial
s t a t u s o f P r o s p e r. •
Verifi cati on
of
stated
infor mation
on
Pr oposal For m. •
Requirement
of
Medical
Repor ts
and
Te s t s . •
Analyses
of
Medical
Repor ts
and
Te s t s .
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
•
Analysis of health histor y and family background.
•
Others requirements.
BUDGET
&
ACCOUNTS
D E PA R T M E N T This department deals in: •
Cash Collection
•
Cash Disbursement
•
Salar y Preparation
•
Budget Preparation
•
I nte r- Zo n e Tr a ns a c ti on
•
Agents Commission
•
Imprest
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 CAS H CO LL ECT IO N:
T here are two mo de of cash coll ec tio n i. e., by Cas h and by Che que. T he col le ct io n is mad e for II Ren ewal Prem iu m an d I .The pr em iu m is pa id by ca sh in SL IC , and it is als o pai d by che que . These cheq ues ar e sent to th e de par tm ent . T hes e chequ es are attac hed al on g wi th “ da il y coll ec tio n sh eet” (D CS ) wi th full detail i.e. Ban ker’ s na me, loc atio n, da te of is su e etc. an d this shee t is sen t to the SLI C’ s au thor iz ed bank (U BL ) in Bah awalp ur for c oll ec tio n.
CASH DISBURSEMENT: For
cash
disbursement,
first
the
voucher
is
prepared, singed and prepared by authorized o f f i c e r, f o r t h e p e r s o n t o w h o m t h e p a y m e n t is
made.
This
voucher
having
the
these
voucher
c o m p u t e r.
amount
in
are
Voucher
is
audited
excess punched
listings
in
of
case
Rs.10000.
(feeding)
are
of
in
maintained,
cheques are prepared, and these cheques are sent
to
concerned
prepared regarding cheques banks
by
daily
total i.e.
p a r t y. the
Bank
authorized
coactions
realization
Statements
DEPARTMENT OF MANAGEMENT SCIENCES IUB
are
Statement
of
and
bankers
payments
cheques.
punched
is
of
These
into
the
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106
c o m p u t e r. T h e d a t a i n f l o p p y r e g a r d i n g C a s h Book and Bank Statement is sent to Principle Office
(PO)
prepared
Karachi.
in
Bahawalpur
P. O
and
Zone
Different these
for
are
further
lodgers sent
to
are SLIC
reconciliation.
Errors and commissions are corrected. Following list are prepared by this section: Data
Wise
To t a l
List
of
Cheques
Encased. List of Cheques Issued (Cash Book) List
of
Unmatched
Cheques
of
Bank
&
lists,
a
Cash Book Files. Along “Daily
with
the
Cheques
above
mentioned
Realization
prepared in the following
Repor t”
manner:
To t a l N o . O f C h e q u e s D e p o s i t e d i n D e c . 19— To t a l
Amount
of
Cheques
Deposited
in
dec, 19--To t a l N o . O f C h e q u e s R e a l i z e d t o d a y To t a l
Amount
of
M o n t h To d a t e ( M T D ) To t a l Amount of (MTD) Realization Ratio
DEPARTMENT OF MANAGEMENT SCIENCES IUB
is
Cheques Cheques
Realized Realized
*** ** ** ** ** **
*** *** *** *** ***
27
106
**
S A L A R Y P R E PA R A T I O N : In B&A Depar tment Salar y of the employees is calculated.
Different
allowances
are
offered
to the employees. Loan facilities are availed for
the
employees.
Tax
is
deducted
from
S a l a r y. A p r o v i s i o n o f r e c o v e r i e s o f t h e l o a n is made.
Following
are
the
addition
to
the
salar y
of the employees: (see Annex No.) B a s i c P a y. S p e c i a l / Te c h n i c a l P a y House
Rent
Basic
Allowance
Pay
for
@80%
staff
and
and
75%
of
officer
r e s p e c t i v e l y. Conveyance
Allowance
@Rs.
600
and
Rs.
5 0 0 p . m . f o r o f f i c e r & s t a f f r e s p e c t i v e l y. Car maintenance Allowance @ Rs.550 and Rs.
750
f o r,
only
s ta f f,
unmarried
and
m a r r i e d r e s p e c t i v e l y. T e a E x p e n s e s @ 7 % o f B a s i c P a y.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
The
deductions
from
salar y
are
as
follows: Provident Fund (PF) Contribution @ 1/12 th o f t h e B a s i c P a y. Union Subscription @ Rs. 50 and Rs. 30 for o f f i c e r & s t a f f r e s p e c t i v e l y. Salary
Advance
Repayment
(24
monthly
installments). PF
Loan
Installement-2
(50
monthly
Installement-1
(26
monthly
(40
monthly
installments). Pf
Loan
installments). Convince
Loan
Recover y
installments). House Building Loan Installments. House
Rent
Installment
(18
monthly
installments). Following are the dif ferent types of loans, which
can
be
availed
by
employees
of
SLIC managed by salary section: T w o - M o n t h A d v a n c e S a l a r y. Loan-I against PF (3 Basic Pay).
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Loan-2 against PF (12 Basic Pay or 90% of Pf
employee own contribution, whichever
is less). Conveyance
Loan
@
Rs.
55000
and
Rs.
1 5 0 0 0 0 f o r s t a f f & o f f i c e r r e s p e c t i v e l y. House Building Loan. After
preparation
(Additional purchased database. prepared
&
of
salary
Deduction)
(feeding) Different such
as
payable
the
data
into
the
computer
types
of
total
is
lists
loan
are
payment,
allowances etc.
B U D G E T P R E PA R A T I O N : B u d g e t i s p r e p a r e d a n n u a l l y. P r o p o s e d B u d g e t is sent to PO. T he funds of different heads of proposed Office
budget
are
Bahawalpur
assumed
that
each
transfer red
wholly
or
year
First
to
p a r t i a l l y. Ye a r
Zonal It
is
Premium
(FYP) is increased by 25%. According to this
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
base
the
commission
of
the
agents
are
calculated and budgeted. Following are the main types of budget: Income Budget Claim Budget Commission Budget Admin, Expenses Budget Admin
&
Claim
considering Zonal
&
previous
Regional
budgets. Karachi
Budget
If are
the
funds
whenever
required. in
is
credited.
No
the
The
by
expenses.
have
separate
transfer red
are
from
proposed
PO
budget,
acquired
from
PO
Budget
Re gister
is
the
employee/par ty/expense
estimated
actual
Offices
than
additional
maintained
year
funds
less
is
department is
additional
debited expense
for
and
cash
is
made
when the budget is in short.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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INTER-ZONE TRANSACTION: There is separate section for inter-zone transaction in budget and accounts. Whenever any expense is made on behalf zone,
the
debit
concerned other
zone
zone
note
for
that
can
Employee
is
1,2,3 4 to 7 7 & onward
expense.
issue
debit
(or
30
Pay
whichever
to
the
S i m i l a r l y, note
%
Rs. 150000 Rs. 200000 Rs. 2155000
Bahawalpur
any other
issued
Loan
Grade
of
age
to
Rate
(interest) 6 6 10
Basic
is high) Zone is they
have
occurred
the
expenses on behalf of Bahawalpur Zone. T he expense incur red on behalf of other zone can
be
claimed,
investigation expense,
s a l a r y,
expense,
TA / DA ,
u t i l i t y,
entertainment,
claim Meeting
repair
&
maintenance, rent, Medical expense etc.
COMMISSION SECTION:In Section
B&A
Department,
calculates
DEPARTMENT OF MANAGEMENT SCIENCES IUB
the
the
commission
commission.
First
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106
Premium New
Receipt
(FPR)
Business
Commission
is
prepared
Department
Section
to
is
by
the
sent
to
calculate
the
commission of agent. It has four copies, one for
commission
section
and
other
three
for
agents (SR,SO,SM). The commission rates var y with the amount of F Y P a n d t e r m o f t h e p o l i c y. T h e M o d e B o n u s is given to SR if
the premium installment is
a n n u a l l y,
of
@1.5%
F Y P.
Allied
is
Bonus
g i v e n t o S O , S R @ 4 . 3 5 % o f F Y P P. A . , p a i d by
monthly
if
they
have
72%
of
II
year
p e r s i s t e n c y, 9 0 % r e n e w a l p e r s i s t e n c y, 1 0 S R S and last year FYP of Rs.120000 and Rs.150000 r e s p e c t i v e l y. P r o d u c t i o n B o n u s i s g i v e n S R , S O &
SM
if
they
have
Rs.6000,Rs.15000, have
minimum
Further
the
commission In
tax
commission
loans
are
Rs.50000
70%
from
of is
the
and
DEPARTMENT OF MANAGEMENT SCIENCES IUB
on
II
year
year
@10% of
different
fulfillment to
of and
p e r s i s t e n c y.
commission
targets
FYP
respectively
deducted
section
given
requirements
last
agents.
types of
of
of
certain
agent
i.e.
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106
Emer gency Advance, Eid Advance, Conveyance Loan, House Building Loan.
C O M M I S S I O N R AT E S
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
F i r s t Ye a r R a t e For Sales Representative Premium
Te r m
Prod.
( Ye a r )
20
Bonus
14-Oct
15-19
Above
Rs. 1-3999
25%
30%
35%
--
4000-5999
25%
30%
35%
2.00
6000-7999
25%
30%
35%
2.50
8000-9999
25%
30%
35%
3.0
10000 above
25%
30%
35%
3.5
FOR SALES OFFICER Premium
Te r m ( Ye a r )
20
10 To 14
15-19
1-19999
13.13%
14.88% 17.50%
20000-34999
15
17
20
35000-49999
16.88
19.12
22.5
50000-74999
18.75
21.25
25
75000-above
19.5
22.1
26
FOR SALES MANAGER Premium
Above
Te r m ( Ye a r )
20
10 To 14
15-19
Above
1-49999
4.50%
5.10%
6.00%
50000-99999
6
6.8
8
100000-1490000
7.5
8.5
10
150000-199999
8.25
9.35
11
200000-above
9
10.2
12
S E C O N D & O N W A R D Y E A R S R AT E S FOR SALES MANAGER SR
SO
SM
I I Ye a r
10.00%
2.00%
1.00%
Onward
5
1
0.50%
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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DEPARTMENT OF MANAGEMENT SCIENCES IUB
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C O M M I S S I O N PAY M E N T P R O C E D U R E : Following ar e thr ee methods used by SLIC for payment of commission to agents:
In
•
Payment by cheques
•
Authority Card.
•
Payment by Post. first
method,
the
payment
is
directly
made to the agent by cheques. In the second method, person
the
payment
authorized
by
is
made
agent
by
to
other
signing
the
“A u t h o r i z e d C a r d ” ( S e e A n n e x N O 0 . 5 ) i n t h e third method the commission is paid by post to his postal address on his direction.
PRIZE AND AWARD:The prize and award are given to field force who
are
achieved
the
highest
FYP
at
any
time announced by SLIC.
E M E RG E N C Y A DVA N C E : It
is
given
earning
on
to
SO,SM
the
on
renewal
the
previous
premium.
For
year SR
previous 2 year ear ning become entitlement of loan.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
E I D A DVA N C E : Previous year total ear ning of SR,SO and SM becomes entitlement.
C O N V E YA N C E L O A N : It is given to SO,SM only on the condition of having 5 year ser vice association with SLIC and two guar antor s. T he loan can be taken up Rs.40000.
HOUSE BUILDING LOAN: To o b t a i n t o t h i s l o a n m i n i m u m a s s o c i a t i o n with
SLIC
is
15
years
and
per vious
year
renewal premium becomes entitlement.
IMPREST SECTION: Imprest is the additional privileges given to the
employees
(Area
Managers).
A n n u a l l y,
the Imprest Entitlement is made for the AM by considering the previous progress in the business. Different Circulars ar rive from PO to Bahawalpur Zone mentioning the different type of privileges on different FYP targets. These privileges are free petrol, telephone, e l e c t r i c i t y, c l e r k w a g e ,
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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stationar y and other facilities etc.
PO LICY HOL DER SER VICE DEPARTM EN T PHS is t he ab biva tio n of "P olic y Hold er's Se r vic e" de par tme nt. As th e na me in dic atin g th at all th e se r vices f or poli cy h old er a r e p er for me d he r e. We can also call t hes e ser vi ces, aft er sale se vic es. It is t he m ost busy d ep ar tm en t of SL IC in e ac h z one. Ev er y se r vice p r ocess w as ta ken v er y c ar ef ull y in th e last c on fer enc e o f SL IC . It w as an no unc ed t ha t ever y ser vi ce w oul d be c om plet ed wi thin 1 5 da ys. Oth er wise St ate Li fe p ays rest ric tion pl en ty to t he poli cy hol der . T he he ad o f PH S is also sit ting in P .O , Kar ac hi. His pos t is G .M, the n ea ch r e gion c on tai ns D.G .M lastl y t he hea d o f PH S dep tt. i n eac h z one is de pu ty man a ger. Follo win gs a r e t he fun ct ions pe rfor me d in PHS de pt t.
DE ATH CL AI M
W he n a pe r so n dies, his r ela tiv es o r hei r s t ell SL IC a gen t or dir ec tl y to the z onal of fic e. S LI C de ma nds cer tai n doc um en ts li ke 1. A ppli ca tion f or dise ase. 2- NIC . 3- Disease a nd nomi na tor s a r e a tt est ed. 4- De ath ce r tifi ca te f r om uni on co un cil. 5- Origi nal do cu men ts (ORs). Fir stl y de pt t. ma na ger o r his collig ue is appoin te d f or t he i nvestig atio n o f th is c ase. He also DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
chec ks FI R fr om t he nea r es t T ha na. I f c ase is c le ar , th en S LI C tri es h is b est t o giv e claim as so on as possibl e. In cas e of ac cid ent, sam e pr oc ess a nd w ay o f in vestig ati on is pe rf or med. T he pl ac e of in vestig ati on is also c hec ked by the in vestig ator s seri ousl y. SURRENDER
An ot her se r vic e o f th is d ep tt. is sur rend eri ng. If a po lic y hol de r w ant s to f inish his poli cy due his cu mp olsar y n ee d of mo ney . T he n he has t wo op tio ns. Fi r stl y, he ca n ta ke loa n, fr om his o wn pr op er ty. Af te r r equi r em en t's com ple tion h e pays 13 % int er est an d co nti nu es his po lic y. Se co ndl y, i f his ne ed is not ful filled w ith t his am oun t th en he ca n sur ren de r his p olic y. B ut he ca n't g ain all his am ou nt be ca use he is b r eakin g th e co nt r act. Follo win gs a r e t he req uir ed do cu me nts. 1- A ppli ca tion. 2- NIC & a ttes ta tio n. 3- Origi nal r ecei pts. Af te r all th ese co mpl etio ns sur r end er valu e is bas ed on y ou r cas h value. AL TERA TION
W he n poli cy hold er w ants som e c han gin g in his te r m, sum assur ed t he n this c ha ngi ng is c alle d Alt er atio n of poli cy. e.g. A po lic y hol de r has a p olic y o f su m assur ed 2,0 0,00 0 an d he is no t sa tisfie d to this. He w an ts to inc r ease it. T his is call ed Alt er atio n.
TER M CHANGING
–
A poli cy c on tai ns 2 0 y ear s to b e ma tu r ed, bu t poli cy hol der w ants t o de cr eas e it. He thi nks th at af te r 15 y ea r s h e w oul d ne ed t his amo un t. T his is an ot he r typ e of Alt er atio n. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
123456-
Follo win gs a r e t he req uir eme nts f or Al ter ati on. Origi nal r ecei pts. Alt er atio n f ee = 2 5 Rs. Alt er atio n pe rf or ma. F or m. A ppli ca tion. I. D. c ar d.
NOMIN ATION CH ANGE
3r d kin d of al ter ati on is n omi na tion c ha ng e. Fir st a poli cy h old er n omin ated his wi fe but af te r some t ime h e ga ve div or ce to he r wi fe a nd n ow he wan ts an ot he r pe r son f or no mina tio n. FILE TRANSF ER
If y our p olic y r ec or d is in Mul ta n z one an d n ow you ar e in Bah aw al pur . T hen y ou ca n tr an fer he r e by applica tio n. MATURITY CLAIM
W he n a po lic y go es to i ts m aturi ty, i t mea ns th at its ter m is co mpl ete d. SL IC sen ds a let te r to i ts poli cy hol der .If do cu men ts, o rigi nal r ecei pts, all pr emiu ms a r e r igh t, th en a heal thy am ou nt wi th bo nus es g oes to poli cy hol der 's a cc ou nt. Ot her wise if you h ad t ak en loa n and co uld no t r et ur n 1 3% int er est an d ha ving c er tain c ash valu e in y ou r poli cy, the n th is l oan pl us int er es t of th at pe rio d woul d be d ed uc ted. All ma tu rity c laims goes t o y our ac co un t. LOANING
Oth er f ac ility of SL IC is l oani ng. Y ou ca n ge t loa n fr om y our a cc ou nt. Mo st o f t he p eo ple a r e allo wed 7 0% lo an fr om the ir o wn acc ou nts. In cas e of se rious ne ed 80% is allo wed t o be ta ken as lo an. Bu t wit h an e me r ge nc y c ase an d wi th t he h elp o f an au th ori ty y ou w oul d be a war de d 90%.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Bu t it is b en efi cial f or p olic y ho lde r s t o ta ke a minim um loa n fr om th ei r acc ou nt. e.g - if y ou t ak e 7 0% lo an, th en 30% w ill r emai n in your ac co un t an d its cas h value w ill r emai n ta ke it inf or ce f or mo r e tim e. I f y ou ta ke 90 % loa n, t he n onl y 10 % will rem ain in y our a cc ou nt an d it w ill co ver less time t o ta ke po lic y inf or ce d. No de du cti on o f Z ak at f r om de ath c laim. W hile Za ka t is c ha r ged f r om bot h sur r en de r an d ma tu rity claim. REVIV AL
Ch ar gi ng o f l ate f ee or e xtr a f ee is call ed Revival, i f th e giv en pr emi um da te has be en p assed. T he n till 30 d ays t he r e is no e xt r a fee, be ca use th ese 3 0 days pe rio d is c alled g r ac e pe rio d. T hen fr om 3 0 to 90 d ays whe n y ou go t o sub mit pr emiu m wi tho ut l ate fee, th en i t may be d em an de "DGH" (D ec lar atio n o f Go od He alth ) by th e he ad of this de par tme nt. B ut fr om 9 0 da ys l ate fee will star t. At this ti me PS ( Per so nal St atem ent ) ca n also b e de ma nde d. T hese all ar e t he b en efi ts of suspe nse ac co un ts. B ut th e loss o f susp ense a cc ou nt is, p ar ty will ne ver ge t th e c laim. Bec ause i t is no n-cr edi t in ac co un t. Ano th er te r m is S pe cial R evival, w hic h me ans if you h ave for got te d you r poli cy aft er payin g at leas t two pr emi ums and the n wi thi n 5 y ea r s i t r emains in for ce, t he n poli cy hol de r has th e c ha nc e
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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to ren ew it, e.g., he is un
able t o pa y the r emainin g
pr emiu ms pl us the ir la te f ee . T hen h e ca n r en ew it by th e st ar tin g of r unnig y ea r. I n o th er w or ds if y ou go t y our p olic y in 97 , the n n ow it will skip to 200 2. CONSTI TUTION OF CLAIM COM
MI TTE E
T he c laims co mmit te e of pri ncip al of fic e for ta kin g de cisions on a
ll t he dea th & inj ur ed c laims
r efer s to the pri ncip al of fice is r eco nstit ut ed as follo ws. 1:- D .G .M (PHS ) P.O.
Co nvey or.
2:- Ma na ge r (PHS ) P.O
Se cr et ar y.
3:- Ma na ge r (PHS ) P.O
Me mb er.
4:- Ma na ge r (Ov er sees )
Me mb er.
5:- Ma na ge r (C& P) Division.
PERSONAL
Me mb er.
&
GENERAL
SERVICE D E PA R T M E N T ( P & G S ) The office & general matters are dealt in P&G Department.
This
DEPARTMENT OF MANAGEMENT SCIENCES IUB
department
has
the
sole
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106
responsibility
and
disciplinar y Selection,
authority
action
of
recruitment,
the
of
the
employees.
termination
of
the
employees is the main functions of
the P&G
Department.
deals
medical leaves The this
This
facility and
daily
department to
similar
the
office
other
is
Following
in
employees,
general
correspondence
department.
also
ser vices.
dispatched are
the
in
main
section of this department:
MEDICAL SECTION: All this hospitalization expenses are beard by SLIC
pr ovided
that
these
are
incurred
in
approved hospital. T he expenses of medicine are
reimbursed.
The
reimbursement
of
medicine is not allowed to staff (having grade 1
to18)
but
they
are
given
Rs.600
p.a.
in
shape of salar y as medical allowance.
RENT SECTION: When sale Manager (SM) is promoted to Area Manager (AM),he is categorized as A,B,C and he has entitle to have his own office at choice location
at
the is
expense
selected
DEPARTMENT OF MANAGEMENT SCIENCES IUB
by
of
SLIC. the
A
A.M.
his good after
44
106
selection
of
place,
Zonal
Head
is
infor med
about the location, by application written by A.M. this application is transferred to P&GS Depar tment for the analysis of location of the office.
The
annualizes
Zonal
this
Rent
location.
Committee A
lease
(ZRC)
agreement
is made with the landlord after analyzing the approved
map
for
the
location
and
property
registration for m. The office rent entitlement for the categories of A,B,C of Am is Rs.2000, Rs.2000, & Rs.1000 P. M r e s p e c t i v e l y .
C A P I TA L S E C T I O N : This
section
responsible
and
maintenance
of
equipment
etc.
a
Committee
(ZPC)
is
for
purchase,
furniture Zonal
&
sale
fixture,
Procurement
constituted
for
the
purchase of assets. The assets are purchased from
the
analyzing
suitable the
supplier
quotation
after
offered
by
critically different
venders. Each
year
assets
are
depreciated
@10%
p.a.
the entr y for the purchased assets is made in
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
the
Register
for
Fixed
Assets.
Each
ear
the
closing balance is intimated to PO Karachi.
S TAT I O N A RY S E C T I O N : This section maintains the record of s t at i o n a r y s u c h a s p a p e r, p e n c i l , e nve l o p s , printed letters, for m, calculators, dustbin, etc. whenever any depar tment requires the s t a t i o n a r y, t h e c o n c e r n e d d e p a r t m e n t f i l l s a Requisition Slip. The stationar y is issued to the concerned department and it is recorded i n t h e r e g i s t e r.
L E AV E S E C T I O N : Following ar e the main two types of leaves: •
Casual Leave
•
Medical Leave 20 days casual leaves are allowed to all
employees
in
a
y e a r.
The
medical
leave
or
application leave is allowed for 48 days in a y e a r.
Unused
leaves
are
accumulated
and
after two years these leaves in excess of 180 das
can
be
encased.
In
case
of
death
all
leaves, not utilized, can be encased.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
PERSONAL SECTION: All
the
employee
matter
such
as
appointed,
promotion, demotion, transfer and allowances are
dealt
by
personal
section.
Annual
Confidential Repor t-ACR (see annex N. 10 for ACR) the
employees
super vision
of
are
prepared, under the
this
section,
by
the
departmental heads. For
the
appointment
of
the
st a f f,
an
a d v e r t i s e m e n t i s i n i t i a t e d i n t h e N e w s p a p e r. Zonal
Head
is
appointment of office
(PO)
Selection
computer
authority
for
this
officers is done by Principle
Karachi
Committee
or
Re gional
constituted
by
Office. Zonal
H e a d c o n d u c t s a t e s t a n d i n t e r v i e w. For promotion of the employees, there ACR’s are
necessar y
and
minimum
three
years
are
required to remain in one cadre. Each year he employees
are
instructions
promoted
set
by
by
PO
the
criteria
Karachi.
and
PO
or
Regional Office does promotion of officers.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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A G E N C Y D E PA R T M E N T Ser vice
provided
by
the
SLIC
is
intangibles and therefore are not acquired at the counter by the people, who need it, so it must
be
sold
them
through
persuasive
method. Field force of SLIC plays an effective role
in
selling
(Insurance record was
of
of
Plans). the
field
established.
department
In
tangibles order
force
The
includes
to
maintain
agency
main
products
department
function
recruitment,
the
of
this
promotion,
and ter mination of the field force, allied and medical
facility
for
field
force.
This
depar tment is also responsible for insurance and renewal of license to the field force.
RECRUITMENT: T he Sales Representative (SR) is appointed by SO/SM.
The
requirement
and
conditions
for
the appointment of SR is as follows: •
Minimum
qualification
is
required
metric. •
Age at entr y must be than 18 years.
•
Annual quota for SR is Rs. 10000.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Application for the insurance of license
•
is
necessar y
and
it
is
renewed
after
each 3 years. An
application
Rs.
50,
and
For m,
attested
Nomination
along
with
photocopies For m
is
license
of
fee
documents
submitted
to
the
agency depar tment. A code number is allotted at the submission of application to SR and he can
start
working
as
agent
of
the
SLIC
of
Pakistan.
PROMOTION: SR
is
term
promoted, and
business
upon
condition targets,
fulfillment
and to
on
SO.
of
certain
achievement Similarly
SO
of is
promoted to SM and SM to A.M. following is the criteria:
FROM SR TO SM: •
Two years wor king as SR:
•
Must have secured minimum Rs. 75000 FY
during
years,
but
immediate
preceding
in
calendar
any
one
two y e a r,
the FYP should be less than Rs. 25000. •
Must have at least 20 policies in force on different lives.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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•
Must
have
a
achieved
a
minimum
S e c o n d Ye a r P e r s i s t e n c y o f 7 0 % i n t h e i m m e d i a t e p r e c e d i n g y e a r. •
Must
have
Renewal
achieved
Persistency
a
of
minimum
90%
in
the
i m m e d i a t e p r o c e e d i n g y e a r.
FROM SO TO SM: •
Must
have
working
of
minimum
2
year s as SO. •
Mush
have
Rs.250000
secured
FYP
in
the
minimum immediate
proceeding two calendar years, but the
FYP
in
any
one
calendar
year
must not be less than Rs.60000. •
Must
have
at
least
80
policies
in
force in his/her organization; •
Must
have
minimum
Second
Ye a r
Persistency of 70% in the immediate p r o c e e d i n g Ye a r ; •
Must
have
minimum
renewal
persistency of 90% in the immediate proceeding year; •
Must have minimum 4 productive SR.
FROM SM TO AM: DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
•
Must
have
working
at
least
for
3
years as SM; •
Must
have
secured
the
following
total FYP for categor y A&B: A= Rs.45,00,000 B= Rs.36,00,000 And last year FYP must not be than: A= Rs. 20,00,000 B= Rs. 15,00,000
•
Number
of
policies
in
the
last
year
must not be less than: A= Rs.200 B= Rs. 150 •
Must
have
minimum
Persistency of
Second
Ye a r
70% in the immediate
proceeding year and minimum second year
persistency
previous
year
of
of
65% the
of
the
immediate
preceding year ; •
Minimum 2 SO should be qualified to sum;
•
Annual quota must have: A= Rs. 30,00,000
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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B= Rs.18,00,000
T E R M I N AT I O N & D E M O T I O N : Any
agent
violates
of
the
SLIC, rules
who &
behave
n e g a t i v e l y,
regulation
or
indulge
fraud or mal-practice, can be ter mination by the Zonal Head. Any agent who fails to meet the
annual
quota
of
FYP
is
demoted
to
immediate lower rank of the field force.
LICENSE: The
license
issued
by
Karachi. field
to
Insurance license.
the
At
force
work
of
list
for of
new
for
of
time,
transfer red
Karachi The
agent
Controller
specific is
as
to
a
is
Insurance list
of
controller
and
license
SLIC
renewal
fee
is
the of of
given
below: SR (New License
Rs.
f o r I s t Ye a r ) SR (Renewal of
59 Rs.
License) SR (Renewal with
70 Rs.
late fee) SR/SM (Renewal of
125 Rs.15
License) SO/SM (Renewal
0 Rs.20
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
with late fee)
0
List of Field For ce in Bahawalpur Zone Field Cadre SR SO SM AM
No. Agent 571 189 73 11
HRD DE PARTMEN T HRD is th e abr eva tion o f " Huma n R es our ce
De volpm en t ". T his d ep t. tr ai ne d th e fi eld f or ce to inh an ce th e p eo ple. It te ac hes th r oug ho ut t he Ma r keti ng c ha nn el wit h th eir sp ecial co ur ses. Follo win gs a r e t he cou r ses f or f ield f or ces, be ca use th is t ea m is a f r ont lin e o f SL IC . Co ur ses
Ma r keti ng
BT C
IS R
BT C
SO
ADP
IS R
MOP
SM , AM
MOS L
SO , S M
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MM S
AM,S M
I h ave a tte nd ed t he B TC co ur se. F oll owi ng is t he d et ail. Tr aini ng an d c ou r ses g iv e th e f oll owin g be nfi ts:1:-
Pr ofessionali ty.
2:- Se r vic e Upg r adin g. 3:- Liklih oo d habi ts. 4:- Pla nnin g. Tar ge t attai ning:Time. In co me. Pla ce. Follo win g thi ngs ar e th e k ey te r ms f or a mar keto r. Be for e g oin g int o a ma r ket.
ACT IO N A = Ac tiv e.
C = Co nfi den ce.
T=
O = Or ga niz ed.
N
T ha nk ful. I = I nt ellig ent. = No ble.
K AS H
CA SH
K = Kno wle dg e. A = At tit ude.
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S = Skill. H = Ha bit. You ca n ge t all wish es w ith t he hel p of th ese t er ms an d th en you c an c ash e ver yt hing. I f you ar e unable to
hol d it th en this En gli sh " C ash "
will c han ge in to Ur du " Kash ". Y our b asic ta r get is
SALE .
S = Smile. A = At tit ude. L = L ove. E = Eval ua tion.
BUDGETING (PRA
CTIC AL PLANNIG)
Monthl y Expenditur es. For ec asti ng.
Ho use r ent
3000
Utility bills
10 00
Food , D r essing
30 00
Tr anspor ta tio n
10 00
Cust ome r de alin g
12 00
Oth er e xp ens es
800
Total.
1 0,0 00.0 0
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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To c over t hes e expe nses y ou h ave to inc ome th r oug h this f or ec astin g.
MONTHL Y INCO ME FO RECASTING In co me
10, 00 0
Pr emium
25, 00 0
Policies
10
Me eti ng
10 0
Nam e obt ain ed Wor kin g days Me eti ng / da y
20 0 20 5
T he m ain pu r pos e of th e co ur se is " T o t hin k in adv an ce " an d th is is th e basi c pla nnin g.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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I N T E R N A L A U D I T D E PA R T M E N T This department plays a super visor y role of all of the all the other departments by checking
and
verification
done
the
departments
by
of
all
the
according
working to
the
r ules and r e gulations pr ovided b PO Kar achi time to time. These r ules and regulation are provided to all the Zone through Pakistan in shape
of
c i r c u l a r.
These
circulars
are
attached in the book, which is called “Key to PO
Circular
departments
Vo l u m e ” . are
DEPARTMENT OF MANAGEMENT SCIENCES IUB
All
working
verification
of
according
the to
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106
t h i s b o o k . I n t h i s w a y, t h e f r a u d s , e r r o r s , a n d omission are detected.
TYPE OF AUDIT: •
Pre-Audit
•
Post-Audit
When
the
payments, conducted
audit it
is
is
after
done
called
making
before
making
pre-audit.
payments
is
Audit called
post Audit. Pre audit is conducted for all the big
payments
payment
at
such
maturity
as
purchase
of
p o l i c y,
of
assets,
payment
on
death claim etc. Post audit is conducted for all-to-day
expenses
such
as
traveling
expenses, stationar y etc.
CUS TOMERS OF S TATE LIFE
1- EXTE RN AL CUST OMERS Ex ter nal cus tom er s ar e th ose w ho h ave no lin k wi th SL IC . T hey ar e th e co mm on pe opl e w hi ch ar e th e mai n ta r get o f sal es f or ce.
2- INTERN AL CUST OMERS In te r nal cus tom er s ar e inf ec t thos e peo ple who ha ve dir ec t or in dir ect
link
wit h SLIC . T hese
ar e
em plo yees o f th e c or por atio n an d th eir r ela tiv es.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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MAR KE TIN G PR OD UC TS Table
Name
01-
W hol e Lif e Assur anc e.
03-
En do wm en t Assu r an ce.
04-
Pr og ress iv e P r emi um.
05-
T hr ee P ayme nt Pla n.
06-
Join t Lif e.
07-
Child P r ote ctio n.
09-
Sing le Pr emium En do wm en t.
17-
Optim al Ma tu rity .
18-
Rur al Li fe.
19-
Jeevan S athi.
36-
Sh ad A bad.
73-
Su neh ri P oli cy.
75-
Child E du ca tion a nd Mar ria ge( built in )
76-
Child E du ca tion a nd Mar ria ge(N on bu ilt
in). N.D .SCHEM E Polic y f ee is no t c har ge d on t hes e pla ns. 18, 71,7 2,73, 77. If p olic y sum assu med is 30 0,0 00 or mo r e 50 pais a is r eba te on basic r ate.
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T he r e is a 8% r ebate f or sta f f empl oyees o n pla nes. 0 1 to 07 . 5 1 to 57 . T hese a ll pl ans ar e fi nishe d fr om J ul y 2 00 2. 02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62.
01:- W hol e Lif e Ass ur an ce Ag e limi t = 10-6 5 y ear s. Minim um pr emi um. T his is f or l ow in com e pe opl e. Bo nus r ate is Ma ximu m 50 p asia is r ebate o n fact or w hi ch st ar ts fr om t hr ee la ck sum assur ed. e.g. A ge Ma tu rity
= 3 4 y ear s. = 85 y ear s.
Pr emium p aid = 51
yea r s.
= 500, 00 0 23. 49 - 0.5 0 = 22. 99 22.9 9 + 4 A TB = 26. 99 2 6.9 9*50 0 = 11 49 5 *10 0 P r emi um. = 11 5 Ma tu ri ty Cl aim:R e gula r Bon us 56*5* 50 0 = 14 0,00 0.
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10 2*4 7*50 0 = 23 4,6 00. T er mina te d
30* 20*5 00 = 3 00, 00 0. = 32,8 6,0 00.
De ath Claim S.A. = 50
0,0 00.
Acc ed en tal c laim = 50 0,0 00. A ge a t Ac cid ent = 55 y ear s. R e gula r Bo nus = 50 0*5* 56 = 1 40, 000. 50 0*1 6*10 2 = 8,1 6,00 0. Ter min ted:5 00* 11*3 0 = 1,6 5,0 00. = 21,2 1,0 00. AIB
adde d 2 ,85, 495
Rs.
03:- End owm en t Assu ranc e A ge te r m = 2 0-65 year s. Matu rity a ge = 7 5 y ear s. It 's ben ef it is t ha t t ime du r atio n is o n y our wish. T his p olic y h as a sing le no min ee. Ag e = 37 y ear s. Ter m = 20 y ea r s.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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FI B = 15 % ADB = 1. 25 % 59. 86 F ac to r + 1. 25 ADB = 6 1.1 1 61. 11+ 10 0 Poli cy fee = 6 2.1 1 Pr emium.
04:- Pr og ressiv e Pr emium Ma tu ri ty Cl aim:S.A = 10 Re gula r Bo nus =
0,0 00
100* 5*4 8 = 24, 000 10 0*1 5*94 = 1 ,41, 000
Ter mi na te d 100* 10* 30 = 30 ,00 0 = 1,9 5,00 0. 1, 00,0 00 will also b T his w ill b ec ome
e adde d.
2,9 5,00 0.
Spec ial te r mi na ted Bonus :10* 10*1 00 = 1, 00,0 00 = 3,05, 00 0 Rs.
Dea th Cla im :-
I f d ea th 2nd yea r
= 1, 00,0 00 A cc ede nt al Cl aim = 1,0 0,00 0 R e gula r Bon us = 48* 1*10 0 = 2, 04,8 00. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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05:- T hr ee P ayme nt Plan T his is spe cial f or b uisness ma n pe opl e. Ter m = 18 -30 y ear s. Ter ms:-
18, 21,2 4,27, 30 y ear s.
Ma tu ri ty w ill o n e ver y 6th y ea r if ter m is 18 yea r s. e.g. 25 % claim w ill b e pai d af te r 06 y ea r s. 25 % claim w ill b e pai d af te r 12 y ea r s. 50 % claim w ill b e pai d on m aturi ty per iod.
Be st Use :W he n y ou g ot 25% c laim y ou ca n fi x it in ba nk s che me, af te r 10 y ea r s t his am oun t will be 4 tim es. Age =
Pr emiu m: 42 y ear s
S. A = 50, 000 T er m = 21 y ear s. 61. 09*5 0 = 30 54. 5 30 54. 5 + 10 0 = 31 54
`
07:- Child
Pr ot ec tio n
Child a ge = 6-1 5 y ear s Don ar a ge = 20-5 0 y ear s
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Child r en have no allot ed a ny suplime nt ar y co nt r act be for e 5 y ear s old. Af te r 5 y ear s a ge ADB ca n be added. If S.A is g r eater tha n 1, 50,0 00 th en un de r wri te r ca n de ma nd " R ej ec t Me dic al Test ". If F ath er Di ed . Pr emium p ayme nt st ops. Till
m aturi ty 10%
sc holar ship an uu al y go es to childr en. At m aturi ty date c laim pl us b on uses will go to c hild r en. If C hildr en Die d . If c hild di ed a ft er 1s t y ear o f p olic y th en 10 % of S.A + 10 % o f B onus will be. I
f af te r 2 y ear s of
poli cy the n 2 0% o f S.A + 2 0% o f b on us will g o to fathe r. Af te r 10 th p r emium co mpl ete S.A + bo nus will go
c om plet e
in ea ch c ase.
18:- R ural Lif e Ag e = 20-5 5 y ear s T er m = 15 or 2 0 y ear s In ac cide nt al case 3 times c laim will pai
d.
In ac cide nt al case b ut wit h any c laim will be pai d.
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T he o th er f ac ility for p olic y hol de r is t ha t no la te f ee will b e c ha r ged
wit hin 8 m on ths af te r
pr emiu m paid d ate. T his p olic y is fr ee f r om poli cy f ee.
Pr emiu m: T er m = 2 0 y ear s A ge = 2 1 y ear s S.A = 1, 00, 000 5 9.1 2*10 0 = 59 12 591 2 + 1 00 = 6 11 2
19:- J ee va n Sa thi Pr emium sing le Pr ot ec tion d ou ble If a ny on e dies, th e ot he r pa r tne r get s claim. If th e ot he r also d ies, the n th e c laim go es to th e Hea ris. Is ola te d me dical f or bot h p ar tner s. Se par ated f illing o f p r opose d f or ms. Eac h c an t ak e supl eme nto r y co nt r act. Table 1 9 = WP +
TIR + 03
Eq ual a ge co nsid er atio n. W ome n age = 24 y ear s - 2 = 2 2 y ear s M an's a ge = 3 4 y ear s DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Dif fer en ce 34 - 22 = 12 y ear s T his d if fer en ce will see i
n the 4 will de du ct
fr om t he e lde r a ge. Me dic al will b e de ma nd ed if FIB si mo r e t ha n 25 %
Ma n = 3 4 y ear s W oma n = 24 yea r s Ter m = 20 y ea r s S.A = 1, 50,0 00 ASB = 1 .25 Rs FI B = 15 % 56. 32 + 8. 22 ( 15 % FI B) = 6 4.5 4 64. 54 + 1. 25 ( ADB) = 65. 79 65. 79*1 50 ( S.A) = 986 8.5 98 68. 5 + 10 0 (p r emium f ee ) = 9 96 8.5
36:- Sha d A ba d Ag e limi t = 20-6 0 y ear s T er m = 10, 15,2 0,25 In cas e of ma tu r ed dea th 2 tim es claim w illl be pai d. In cas e of ac cid ent al de ath 4 ti mes c laim will b e pai d. If AI B added t he n 5 tim es claim w ill b e pai d in
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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cas e of de ath. FI B & A IB ca n also b e adde d wit h th e wish es o f und er wri te r. T-36 = ADB + TI R + 03 Pr emium. S. A = 2,0 0,00 0 Ag e = 25 yea r s Ter m = 2 0 y ear s 53. 45*2 00 = 1 0,6 90 10,6 90 + 1 00 = 10, 790
73:- Sun eh ri P olic y Bo nus r ate = 115 /1 000 It is sam e o f lo ng lif e, plan,s aving an d p r ote ctio n. Ag e limi t = 20-6 0 y ear s A ge = 3 4 y ear s S.A = 1, 00, 000 He w an ts no incr ease i n 6% th en this will pr oc ee d li ke o th er p olicies. If h e w an ts to ren ew 6% th en medi cal will be de ma nde d. No poli cy f ee, no r ebate. S uple men to r y co nt r acts.F IB , ADB , TI R. Co ntr ac ts a nd ben efi t o f su pleme nt or y c on tr ac t star ts fr om 3r d pr emiu m.
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75:- Child
Edu ca tio n and
Mar ria ge Ev er y pe r so n can ge t this f or his nep he w, son e tc. I n cas e of poli cy hol de r's d ea th 24% F IB s chol ar ship go es to c hild r en. But bir th c er tific ate will be de ma nde da t ma tu rity or de ath. In cas e of also child's de ath th e c laim go es to hea ris. Cash valu e ca n ge t no suple men to r y co nt r act a dde d to chil dr en. Ter m = 18,2 1,2 4 FIB = 24%
N'D S cheme For m en tal, a bon or mal, hal fse t peo ple + a ge d pe opl e + un fi t peo ple. Bu t ma n get th r oug h 03 o r 05. A ge limit = 2
0-58 yea r s
T er m for 03 = 10, 15, 20 T able 0 5 T er m = 18, 21 y ear s No supl eme nt or y c on tr act. Claim w ill o nl y in c ase of ac ce nd en tal de ath in fi r st
two y ear s. If af te r 2 nd
year , na tu r al de ath h appen ed. T he n on e y ear's c laim
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ba ck aft er 3r d pr emium, c om plet e am oun t r eceiv ed. Not hin g shoul d be r eq uir ed in th is s che me.
BONUSES Routi ne. Ter mi nal. Sp ecial T er minal. In te r r um B on us. R e gula
r ( Rou tine ) Bonuses :_
Ti me
Fir st Fi ve Y ear s
<2 0
56
10 2
20 >
48
94
After Fi ve Year s
01-E nd owme nt.
15-1 9
35
81
10-1 4
20
60
20 <
15-1 9
35
09
25
59
19
53
02-P ayme nt
pla n 10-1 4
TER MIN AL BONUSES
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At t he m aturi ty time o r a t th e d ea th time i f th e poli cy inf or ced t ill a ft er 4 y ea r s. A ft er t he 1 0t h pr emiu m, t er mi nal bo nus st ar ts. T his b on us is 30 Rs. / 1 00 0 a t th e pr emiu m, w hic h is m axim um a t 60 0 Rs. p er tho usa nd. e.g.
t-03 S.A = 10 0,0 00 Ter m = 25 y ear s Pr emium =
500 0
10 0 (S.A )*1 5(Y r s. r emai ning )*3 0(R ate) = 450 00
SPECI AL T ER MIN AL BONS UES In cas e of FI B y ea r in 20 02 a t p olic y ma tu rity , th is b on us will b e giv en to y ou. T his will be giv en to y ou a t ea ch last 10
y ea r s p r emium wi th
th e r ate of 10 / 100 0 w hi ch is ma ximum. 20 0 / 10 00 e.g.
t-03 S.A = 10 0,0 00 Ter m = 30 y ear s
FI B
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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10 0( S.A)* 20( Yr s. r em ainin g)*2 0( Ra te ) = 20 00 INT ERR UN BONUS
T his is giv en as int er r um bon us, w hi ch is giv en at te r minal b on us. e.g. Sp ecial b on us is giv en in 20 02, b ut it do es not go es to p olic y h old er an d PH di ed. In this cas e th e bo nus w hi ch is deli ever ed in 20 03, will also b
e giv en
to poli cy h old er. e.g. Du ring 2 00 2 a te r min al bon us is giv en t o Ubai d. Bu t th e bo nus ce r ti fica te does n ot fin d to Ub aid, an d suc h a mist ak e happ ene d. T he n this will go t
o
Ubai d's c laim as in ter r um bo nus. SP ECIAL BONUS
Co nditi on = P olic y sh ould b e inf or ce d w hen th is bo nus is ann ou nc ed. e.g. pr emiu m of 94 w ill b e pai d in 95 's p r emium da te . SUPP LEM ENT AR Y CONTR ACT ADB . AIB . FI B. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
TI R. WP. SW P.
SUP LEM EN TOR Y C ON TR ACT S AD B
Do uble c laim pa id fr om 5 -55 y ear s. ADB be co me 4 tim es in S ha dBa d au tom ati call y. In t abl e 18 t his is 3 tim es, b ut in c ase o f injur y or d ea th wit h a gricul tur al too l this will pai
d 5 tim es. No n e xte r nal
or int etr nal inju r y ef fect the de man d o f ADB c laim. Noti ce o f c laim is
atta ched t o t he d oc ume nts w hen
this c on tr act st ar ts. T his con tr ac t is c he cked wit hin 90 days of de ath. has t he r igh t to e xami ne th e bo dy at any d ate. T er mi na tio n in case o f de ath c laim, or if goes t o sixty y ear s a ge. I f y ou w an t to inc lud e it in cas e o f r evival the n t his will h appen a cc or ding t o th e r ul es o f. Risks
whic h ar e e xclu de d in this
co nt r act ar e in m ur der , he at str ok e, in ar restin g, ga mes, pr a g r enc y, a ny ef fect f r om alc oh ol d r ug etc .
AIB
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In cas e of de ath, do ubl e claim w ill g o to par ty. In ac cid en t, i f t wo main o r gans, two ar ms, t wo le gs, tw o e yes or one ar m, le g or ey e died t he n co mpl ete claim will
be c ha r ged an d all th e p r emi um lif e and
on maturi ty. Sam e Assur ed + Bo nuses o f P r emium pai d. But i f on e m ain or ga n des tr oys e.g. On e ar m or on e le g de ma ge th en hal f o f t he claim will
be p aid bu t n o r eba te in pr emiu m.
cas e of on e ey e 1/3 o f S.A will
In
reci eved. Fin ge r of
Sh ah ad at o r th um b des tr oy, t he n 1/ 4 of S.A will r ecie ved, n o r eba te in pr emiu m. I f th er e is a ny seri ous inju r y th en 5 /1 000 r eci eved f or 52 w ee ks. If inju r y is m or e tha n 15 days. Bu t af te r 52 weeks 1 00 /10 00 f or 10 year s will be r ecie ved. Ter m = 20-5 5 y ear s
FI B It 's limi t star ts f r om 10-5 0% a nd 1 0-25 % . No me dical c ha r ge but af te r 25 % FI B me dicall y y ou will chec ked. I n cas e o f de ath m on thl y s cholar ship pai d.I t's ter m is fr om 1 0-45 yea r s. Ag e limit is
f r om
20-5 0 y ear s. Pr ot ec tion o f con tr ac t will rem ain a t
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65 year s a ge. T his con tr ac t te r mina tes o n Ex pir y da te , if t he p olic y la ps e, sur r ende r or on a ny poli cy an niv er sor y a t p rio r no tic e by th e poli cy hol der . I f your po lic y is o n R evival t he n of fc ou r sty it's amo un t will be a dded.
TIR Frie nd go es to Dub ai, for t wo or t hr ee y ear s an d gai ne d a co nt r act. T ha t if y ou r ac cid en t happe ned at any pl ac e the n it's e qu al amo un t go es to y our ac co un t. Ter m is fr om 1 0-25 year s. Ag e limi t is fr om 2 0-60 y ea r s. Ma ximu m rate o f TIR is 3 tim es. I t's pr ot ec tio n r emains a t 70 y ea r s a ge. Be caus e the se co nt r acts ar e o f 2 o r 3 y ear s, so mos tl y f act or y ho no ur s, driv er p eo ple ge t t his.
SU PLEM ENT OR Y CO NT RA CT R ATE S Cl er k, Pr of es siona ls etc . AIB = 4 Rs ADB = 1. 25 Rs
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Buisn ess ma n ADB = 1. 5 Rs AIB = 5 Rs
For mer ADB = 1. 88 Rs AIB = 6 Rs
La bo ur ADB = 2. 5 Rs AIB = 6 + 2 = 8
Rs
FI B is o n th e wish o f poli cy h old er. Follo win gs a r e t he plans w hic h ar e of f f r om J ul y 20 02. 02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62
SA LAR Y A ND GRA DI NG Gr ad e
In it ia l Pay
1
15 45
80
34 56
2
17 88
10 0
38 68
3
18 49
10 2
39 91
4
20 37
11 8
45 15
5
21 05
13 3
48 98
6
26 52
14 9
57 81
DEPARTMENT OF MANAGEMENT SCIENCES IUB
Inc r emen t
Max. P ay
75
106
7
33 74
28 8
13 45 4
8
49 90
35 0
11 99 0
9
72 00
49 0
15 53 0
10
89 70
61 0
18 12 0
11
12 63 0
64 0
22 23 0
12
13 66 0
68 0
23 86 0
13
15 92 0
71 0
26 62 0
14
18 42 0
90 0
30 12 0.
SW OT AN ALYSIS St r eng th. Weak ness. Opp or tuniti es. T hr ea ts.
SWOT A N A LY S I S “T her e is an old Spa in s ay ing th at to be a DEPARTMENT OF MANAGEMENT SCIENCES IUB
76
106
bullfighter you must first Lear to be a bull”. SWOT
stand
Opportunities this
for and
analysis
which
is
the
organization
strength,
Threats. to
identify
current and
The
its
Weakness, main
the
strategy
more
specific
aim
of
extent of
to the
changing
taking place in the business environment. The idea of
SWOT analysis is to under take a more
structured yield
analysis
finding,
so
which
as
to
can
yield
so
as
contribute
to the
f o r m u l a t i o n o f s t r a t e g y.
STRENGTHS SWOT Analysis of SLIC is as follows: Field force Management Good image Excellent set up Real estate division (investment por tfolio) Training academies & tr aining center s Mar keting division Adver tising & Sales promotion Computerization Mar ket leader
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Retur n (bonus to policyholder) Gover nment security
FIELD FORCE MANAGEMENT: SLIC
has
Offices
ful-fledge
organized
HRDD
by
in
most
qualified
ZONAL
trainers
and
equipped by modern equipment to mange and train field force.
GOOD IMAGE: SLIC is an old insurance company operating in the Pakistan and has created the good image and good will in the eyes of
general public.
This is the strength of SLIC.
EXCELLENT SETUP: SLIC
is
a
Pakistan
large and
Life
have
Insurance
27
Zonal
Company
Offices
and
in 5
R e g i o n a l O f f i c e s t h r o u g h o u t t h e c o u n t r y.
R E A L E S TAT E D I V I S I O N ( I N V E S T M E N T PROTFOLO): SLIC Real
has Estate
well-equipped Division
in
and
computerized
principal
office
(PO)
K a r a chi su p e r vi se d b y hi gh l y q u al i f i ed s t af f, engineer s and investment anal ysts.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
TRAINING ACADEMIES & TRAINING CENTERS: SLIC
has
Lahore
3
training
and
Centers
in
courses
and
Academies
Rawalpindi zonal
and
offices.
seminars,
at
Karachi,
26
In
Training
1998,
1946
from
Basic
ranging
C o u r s e s t o a d v a n c e d P r o g r a m s l i k e A D P, M O P and MMS of LIMRA (USA) had conducted.
MARKETING DIVISION: This
division
is
backbone
of
SLIC.
During
1998, 25486 young and educated people were inducted as SR in the sale force, this raising its strength to 256,814, inclusive of SO & SM.
ADVERTISING & SALES PROMOTION: During 1998, a new penal of four adver tising agencies such
as
display other
of
was
selected.
installation commercials
Outdoor
of
adver tising
Unipole
in
PTV
publicity materials such
is as
Hoarding done
and
Calendars,
Sticker s, Eid Cards, and Poster s are produced to boost business activities.
C O M P U T E R I Z AT I O N :
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
About The
2/3
plan
working to
is
computerized
computerized
total
in
SLIC.
working
is
u n d e r r e v i e w.
RETURN (BONUS TO POLICYHOLDER): SLIC
pr ovides
R e v e r s i o n a r y,
different
types
Te r m i n a l ,
of
Interim,
bonuses One
as
time,
Golden and Special Rever sionar y Bonus to the p o l i c y h o l d e r.
G OV E R N M E N T S E C U R I T Y: It is the main strength of f a c t o r,
the
image
and
SLIC. Due to this
good
will
for
SLIC
is
further enhanced:
OTHERS: ♦ It is old and most experienced organization. ♦ PO
conducts
mar keting
sur vey
to
analyze
environment and develop new plans. ♦ Employees are fully devoted and highl y paid
wor kers as compare to other or ganization. ♦ It has highest paid up capital. ♦ It
is
reinsured
by
Swiss
Re
(Insurance
Company Switzerland).
WEAKNESSES
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Incompetent field force Internal setting & culture Centralized Decision Making Inter nal depar tment inefficiency Selection & recruitment Feed back
INCOMENTENT FIELD FORCE: I n t e r m o f q u a n t i t y, i t i s s t r e n g t h b u t i n t e r m of not
quality
it
highly
is
weakness.
educated.
Most
wor ker s
are
promoted
They
are by
fulfilling targets.
I N T E R N A L S E T T I N G & C U LT U R E : Internal office setting and arrangement is not satisfactor y Dominant but
sub
as
compare
Culture
culture
needs
(i.e
to
its
competitors.
further
improvement
HRDD,
Group
Insurance)
o f s o m e d e p a r t m e n t i s s t a t i o n e r y. Y e t t h e r e i s need of fur ther impr ovement.
CENTRALIZED DECISION MARKETING: Managerial
decision-making
is
totally
centralized in the PO Karachi, Zonal Offices follow the instruction and rules & regulations provided by PO. Sometimes decisions is taken by PO is not strategic and adjustable in the DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
local
environment.
For
prosperity
&
survival
of the organization, decentralization (to some e x t e n t ) i s n e c e s s a r y.
I N T E R N A L D E PA R T M E N T INEFFICIENCY: ♦ Underwriting
takes
process
longer
time
(in
NB
period,
Department)
which
irritates
the prospects. ♦ Loan section takes 10 days to process. ♦ Normally
1
to
2
months
is
required
to
sur render the policy and take the Sur vival Benefit, which is not justified.
SELECTION & RECRUITMENT: SR
are
selected
ir respective
of
and their
recruited
by
education
SO
and
&
SM
unique
inter nal attributes.
FEED BACK: T he Cor poration does not have any ef fectives and
efficient
feed
back
channel
to
disseminate sales force suggestions to upper management.
F u r t h e r,
well
system
organize
DEPARTMENT OF MANAGEMENT SCIENCES IUB
organization for
feed
back
has
no
between
82
106
o f f i c e e m p l oy e e s a n d m a n a g e r, m a n a g e r s a n d Board of Directors.
OTHERS: ♦ Frauds done by some deceives field wor kers
who
deteriorate
the
good
will
&
image
of
the organization. ♦ Ineffective
downward
and
upward
communication channels.
OPPORTUNITIES P E R - C A P I TA P R E M I U M In
Pakistan
per
capita
premium
payment
is
1.5 and $1.7 only for life & general insurance r e s p e c t i v e l y. enhance
this
There
is
nominal
an
opportunity
rate.
In
Japan
to per
capita premium for life insurance is $3810.
P O P U L AT I O N G R O W T H R AT E : In
Pakistan,
approximatel y
population 3%.
It
is
a
growth great
rate
is
opportunity
f o r i n s u r a n c e s e c t o r.
I N S U R E D P O P U L AT I O N :
DEPARTMENT OF MANAGEMENT SCIENCES IUB
83
106
In
Pakistan
while
2%
rest
opportunity
to
of to
3%
population
the life
is
population
insurances
to
insured provides enhance
their business.
G OV E R N M E N T R E G U L AT I O N : Section
10-B
Industrial the
of
Pakistan
Standing
compulsor y
employees
of
Commercial
Ordinance insurance
the
1968 of
organization
and
provides all
the
(whether
private or Govt.). So it is a great oppor tunity to SLIC.
E NT E RY BAR R IER S To
enter
in
the
investment
is
required.
premium
is
insurances,
insurance
compulsor y to
cede
Further for
to
Pakistan security purpose
business
the
40%
he of
private
Gover nment
of
creating the entr y
b a r r i e r.
T H R E AT S
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
COMPETITORS: The
existence
of
local
and
gover nment
insures such as EFU, CU, Metropolitan. ALICO etc. is threat to the sur vival of SLIC.
P O L I T C A L I N S TA B I L I T Y : Political instability looses the confidence of the
policyholders.
regulations
of
Further
gover nment
are
rules
and
subject
to
change creating threat to insurance business.
FEAR OF WAR The relationships of not
satisfactor y
Pakistan with India are
due
to
Kashmir
dispute.
There is always a fear war creating the threat to corporation and policyholders.
I N V E S T M E N T C L I M AT E : Due
to
the
gover nment
political
changeover
instability the
and
investment
c l i m a t e s a r e n o t s a t i s f a c t o r y i n t h e c o u n t r y. So
the
return
from
real
estates
and
other
activities is deteriorated. Competors
DEPARTMENT OF MANAGEMENT SCIENCES IUB
85
106
ALICO EFU METRO POLETON COMERCIAL LIFE P O S TA L L I F E
AD AM JE E
T he main C omp eti tor s o f S LIC a re: Easter n Federal Union (EFU) Commercial Insurance Company Metropolitan Insurance Company American Life Insurance Company (ALICO)
SLIC
has
enjoyed
a
complete
monopoly
till
1990 when the Govt. has decided to allow the private After
insurers 1990
declining. mar ket
the But
share
to
operate
mar ket yet
in
life
SLIC
in
share has
insurance
the of
Pakistan. SLIC
enjoyed business
is the of
91.4 on the basis of total premium written off in 1997. The
year
of
establishment
of
the
life
insurance companies are as follows:
DEPARTMENT OF MANAGEMENT SCIENCES IUB
86
106
EFU
and
EFU CU
1992 July
ALICO
1996 May
Metropol
1995 Febr ua
itan
ry
SLIC
1993 1972
CU
have
adopted
the
Unit
Link
System. W henever the policyholder takes the i n s u r a n c e p o l i c y, h e i n d i r e c t l y p u r c h a s e s t h e units of
the EFU and CU. T he values if
this
u n i t i s a n n o u n c e d d a i l y i n t h e n e w s p a p e r. The
strategic
analysis
of
SLIC
is
confined
only 5 years star ting from 1994 to 1998.The main
objective
financial
status
of
this
and
analysis
competitive
to
know
position
the of
SLIC keeping in view dif ferent factor s such as total business in force, life fund, investment por tfolio, total income, FYP etc. first, I star t from premium Income of SLIC. STATE LIFE I NSURAN CE CORPORA TION OF P AKI ST AN SUMM ARIZED INCOME
DEPARTMENT OF MANAGEMENT SCIENCES IUB
87
106 ST ATEMEN T FOR TH E YEA R ENDED ON 31 DECEMBER- -----------1997 1998 1999 2000 2001 Total Income First year premium 1,487, 1,293, 1,258, 1,033, 1,121, 409 756 084 522 142 Renewal premium 4,363, 4,413, 4,311, 4,537, 4,564, 671 159 467 853 562 Single premium 2, 2,2 65 561 323 48 37 Group premium 1,412, 1,244, 1,250, 1,101, 1,256, 867 368 941 959 481 Annunities 2, 11, 15, 4,8 2,5 165 754 030 90 08 Interest, Dividend,Rents 5,791, 5,866, 8,372, 7,791, 8,355, 018 708 300 677 685 Profit on sale of Investment 109, 128, 32, 80,8 51,1 293 692 962 44 58 Profit on sale f assets 1, 7 1,0 630 549 200 36 28 Miscallaneous income 9, 15, 41, 38,4 8,3 934 923 315 72 59 Total Income 13,177, 12,975, 15,285, 14,592, 15,360, 052 470 622 201 960 Oper ating E xpense s Claims & Policies paid 4,341, 4,714, 4,904, 5,136, 5,572, 069 853 083 130 197 Management Expenses 1,599, 1,381, 1,303, 1,132, 1,213, 135 227 398 029 747 Payment to Field workers 964, 939, 1,214, 1,081, 939, 867 710 557 302 660 Rent for offices 101, 1, 137, 141, 134, 729 325 893 985 382 Staff Gratuity & Pesion 57, 867, 92, 57,2 53,9 349 635 727 22 21 Provision for bad debts 7, 12,6 317 814 10 DEPARTMENT OF MANAGEMENT SCIENCES IUB
88
106 Depreciation Other Expenses
38, 843 373, 271
41, 382 504, 454
39, 332 359, 737
7,476, 580 5,700, 472 66, 172 206, 201 272, 373 5,428, 099
8,450, 586 4,524, 884 75, 260
75, 260 4,449, 624
8,059, 541 7,226, 081 45, 641 155, 775 201, 416 7,024, 665
1997 41% 43%
1998 34% 35%
1999 46% 47%
Voluntery retirment Scheme Total Operating Expenses Oper ating pr ofit Provision for Taxation Federal Govt Share Total Net pr ofit
Net Profit margin Operatiang profit margin
35,7 59 401, 441 759, 501 8,745, 369 5,846, 832 204, 036
204, 036 5,642, 796
8,267, 053 7,093, 907 159, 974 242, 418 402, 392 6,691, 515
2000 39% 40%
2001 44% 46%
ATIO ANALYSIS Net Profit Margin Ne t Pr ofi t/ Tota l Inco me DEPARTMENT OF MANAGEMENT SCIENCES IUB
68,0 60 272, 476
89
106
Year Net margin
Profit
1997
1998
1999
2000
2001
41%
34%
46%
39%
44%
The net profit margin of the company is very good. It clustering round 40% that is very good. The net profit margin of the corporation dropped down to 34% in year 1998 from 41% in year 1997.
In year 2001 that net
profit margin of the corporation is 44% that is 3% higher than the profit ratio of 1997 i.e. 41%.
Operating Profit Margin Operating Profit / Total Income
Year Operating margin
1997
1998
1999
2000
2001
43%
35%
47%
40%
46%
profit
The operating profit margin has increased from 43% in year 1997 to 46% in year 2001. This thing shows that the management has taken some encouraging actions to reduce the operating expenses of the cor poration.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Liabilities Year Current Ratio
Cur r ent Ra tio Current Assets / Current 1997
1998
1224%
1066%
1999
2000
2001 1300 1160% 1399% %
T he company has kept the majority of its sources in the current assets. The ratio of the c u r r e n t a s s e t s i s i n c r e a s i n g o v e r t h e y e a r. T h e ratio of current assets to current liabilities has increased from 1224% in year 1997 to 1300% in year 2001.
De bt R ati o
Total Liabilities / Total Assets
Year Debt Ratio
1997 99%
1998 99%
1999 99%
2000 99%
2 001 98%
As the company acquires funds from the general public it has huge amount of exter nal sources. T hey have remained almost 99% t h r o u g h o u t t h e s e y e a r.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
91
106
In vestment to T otal Assets Investments / Total Assets Year Investments assets
to
1997
1998
1999
2000
2001
65%
65%
68%
59%
67%
total
T he cor poration has kept majority of its assets in the investment of various types. T he por tion of investment in the total assets of the company is increasing. It has fallen down to 68% in year 1999 but again increased to 67% in year 2001.
Loans to T otal Assets Loans / Total Assets Year Loans to Total Assets
1997 7%
1998 6%
1999 6%
2000 5%
2001 5%
The portion of the loan to total assets has remained constant from 5% to 7% in these five y e a r. I n y e a r 1 9 9 7 i t w a s 7 % t h a t h a s f a l l e n down to 5% in 2001.
Local In vestments to Total Assets
Local Investment / Total Assets
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Year
1997
1998
1999
2000
2001
Local Investment to total assets
8%
8%
7%
6%
6%
The
portion
of
the
local
investment
in
total assets has been decr easing over the years.
It has fallen from 8% in year 1997
to 6% in year 2001.
Investment to Gover nment Securities
Investment in Govt. Securities / Total Assets
Year s
1997
1998
1999
Investment in govt securities to assets 65%
67%
68%
2000 2001 58%
T he cor poration has kept majority of its cur rent assets in the gover nment securities. T he por tion of the gover nment securities in total assets has also remained constant around 65%. It has increased from 65% in year 1997 to 67% in year 2001.
STATE LIFE I NSURAN CE CORPOR ATION OF P AKIS TAN SUMM ARIZED BAL ANCE SHE ET
DEPARTMENT OF MANAGEMENT SCIENCES IUB
93
67%
106 AS ON 31 DECEMBER- ------1997
1998
1999
1,969, 077 17, 874 1,200, 214 480, 260 1,391, 699 2,014, 286 5, 734 56, 008 64, 896
2,419, 961 24, 719 1,455, 617 482, 410 1,516, 051 2,419, 718 2,7 36 56, 008 55, 339
1,476, 142 25, 728 2,038, 001 443, 830 1,702, 212 3,037, 760 14, 893 56, 008 55, 283
8,694 ,277 23, 337 2,861 ,545 1,292 ,532 1,189 ,107 2,886 ,969 1, 144 56, 008 54, 133
3,211 ,165 23, 241 2,781 ,446 885, 952 886, 587 3,250 ,337 13, 768 56, 008 42, 167
35,709, 40,477, 618 219
46,220, 194
42,526 ,450
54,889 ,017
120, 90, 58, 800 282 870 1, 1,0 1,0 000 00 00 4, 4,7 4,7 750 50 50 47, 929, 111, 296 239 648 35,788, 39,644, 46,173, 872 012 166
729, 743 1, 000 4, 750 177, 791 43,084 ,152
517, 212
ASSE TS CUR RENT AS SET S Cash Stores & Spares ( stationery) Income Tax Refundable Sudary Debtors Outstanding Premium Interest, Dividends, and Rents Amount Due from other persons Balance Of Compensation Agents Balances
In vestment s Govt Securities
TFCs Certificate of Investments Preferred Stocks (-) Diminution in Value of Investments Total Investments (net)
PKR(000) 2000 2001
DEPARTMENT OF MANAGEMENT SCIENCES IUB
4, 011 783, 083 54,627 ,157
94
106 Total Current Assets
42,988, 48,076, 920 571
55,023, 023
60,143 ,204
65,777 ,828
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 51, 397 62, 950 9,410, 326
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 51, 397 62, 950 9,410, 326
3,828 ,072 600, 000 243, 684 10, 000 4,614 ,223 51, 397 62, 950 9,410 ,326
3,828 ,072 600, 000 243, 684 10, 000 4,614 ,223 51, 397 62, 950 9,410 ,326
2,430, 2,910, 961 162 168, 164, 663 141 23, 13, 081 218 2,622, 3,087, 705 521 55,034, 60,574, 182 418
2,708, 779 1,044, 121 5,4 79 3,758, 379 68,191, 728
2,664 ,205 1,265 ,236 1, 086 3,930 ,527 73,484 ,057
4,363 ,420 1,835 ,781
1,468, 368 303, 793 101,
657, 471 353, 275 262,
494, 078 374, 461 279,
Non Cur rent As sets Loans
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 63, 628 62, 950 9,422, 557
Wapda Bonds U.K Govt Securities Bonds, Debentures, Stocks Ordinary Stock In Pakistan Ordinary Stock Outside Pakistan Holding Subsidiaries Cos. Total Non-Cur ren t As sets FIXED ASSE TS Hourse Property (net) Furniture, Fixture and Equipment(net) Vehicles Total Fixed Assets Total Assets EQUI TIE S & LIABILIT IES Cur rent Lia bilitie s Sundry Creditors premium and Other Deposits Agent's balances DEPARTMENT OF MANAGEMENT SCIENCES IUB
776, 104 242, 648 232,
1,507, 821 269, 508 183,
86 6,199 ,287 81,387 ,441
95
106 264 Balance of compensation Payable Amount Due to other persons outstanding Claims
357 5
Pr ovision s Loans
Total Long T er m Lia bilitie s Equity Paid Up capital
591 17,
31,
730 2,970 ,182
389 3,631 ,464
3,
2,8
2,6
2,
1,
59 7
6
242
918
680
60 10, 333 4,509, 430
37,
452 4,299 ,331
663 246, 148 248, 729 5,059 ,877
50,730, 55,126, 167 729 279, 332, 699 846 33, 94, 325 597 51,043, 55,554, 191 172
62,122, 449 361, 791 118, 307 62,602, 547
67,713 ,960 413, 076 107, 029 68,234 ,065
74,416 ,031 402, 520 131, 428 74,949 ,979
Rese r ves General Reserve Exchange Fluctuation Reserve DEPARTMENT OF MANAGEMENT SCIENCES IUB
14
95 97 34, 477 37, 869 4,742, 340
Total current liabilities
Provision for Gratuity
591
91 58, 110 2,771, 825
78 13, 866 18, 529 3,513, 122
total provisions
Outside Pakistan
5
165
91 39, 416 2,498, 404
8
Other receivables
LONG TERM LIABILIT ES Balance o f Lif e Insur ance Fund Within Pakistan
5
630
91 19, 546 2,223, 440
785 House Property
784
6,7
34, 530
100, 000
100, 000
350, 000
350, 000
750, 000
18, 808 359, 061
18, 808 392, 008
18, 808 478, 033
18,
18,
808 581, 853
808 608, 777
96
106 total reserves Total Equity Total Lia bilities Equities
&
Current Assets Debt Ratio Investments to total assets Loans to Total Assets Local Investment to total assets Investment in govt securities to assets
377, 410, 869 816 477, 510, 869 816 55,034, 60,574, 182 418
496, 841 846, 841 68,191, 728
600, 661 950, 661 73,484 ,057
627, 585 1,377 ,585 81,387 ,441
1997 1224% 99% 65%
1998 1066% 99% 65%
1999 1160% 99% 68%
2000 1399% 99% 59%
2001 1300% 98% 67%
7% 8%
6% 8%
6% 7%
5% 6%
5% 6%
65%
67%
68%
58%
67%
RE CO MME ND ATION S FO R OFF ICE FOR CE T he r e is muc h nu mb er o f o f fi ce st af f. T her e ar e fiv e dep ar tme nts an d eig hty-fiv e pe r sons ar e wor ki ng in e ac h de par tm ent.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
T he sal ar y is low, so as t he investme nt. T he r e gular w or kin g hou r s ar e mu ch a nd als o the over time r ate is lo w. At ta chm en t an d de ta chme nt ar e no t o n me rit basis, th ey shoul d be o n me rit a nd r ec r uit men t of fic er s giv e m uc h f aciliti es t o th ei r rel ativ es a nd fr ien ds, e .g., SLI C pr ovid es a n A.C an d ca r pet to de pu ty man a ge's r oo m bu t of fic er s ha ve giv en th em t o assista nt ma na ge r. Of fi cer s do n' t lik e to m ove the c laim files an d pu blic ha ve t o m ove ar oun d th e of fic e ma ny t imes. No w it has b ee n sug gest ed th at a pe r so n shoul d just as k for t he c laim o nl y o nc e an d ge t his r ecei pt. No w af te r th ir ty days, la te f ee c har ges will ge t inc r em en te d as the days pass an d co r r es pon ding o f fi ce r will be r esp onsible f or th at. Of fi cer s c laim a bou t mar keto r s t ha t t hey h ave go t mu ch h olid ays an d mo ve abo ut t o th eir w ill. T hen it is su gges te d tha t S atur day's holi day sho uld be r oun de d. Ma nu al w or k t ak es mu ch time so e ver y of fic e sho uld be provid ed wi th a c om put er. Of fi cer s h ave r ud e be ha vi our t owar ds g en er al pu blic, this sh ould b e ca r ed. Of fi cer s h ave not go t qu alifie d do ct or s, th ese do ct or s ha ve n ot a ny cri te ria to be ful filled. T he r efor e m any pr obl ems a rise a ft er d ea th c laims.
FO R MA RKETETING
FO RCE
Sel ec tion is not ide al. A t leas t, mi nimum qu alific ati on f or sele ctio n sho uld be g r ad ua te. T he r e sh ould f r ami ng co ur ses a ft er selec tion f or mar keto r s.T hey sho uld no t onl y be tol d th e w ays
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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to im pr ove the ir in com e but also imp r ove th ei r atti tu de an d be ha viou r. At te ndin g th e co ur ses sh ould b e mus t. T her e sho uld be four cou r ses ea ch yea r an d a tte ndi ng th e t wo cou r ses sho uld be must f or e ver yone. T he c rit eri a for pr om oti on sho uld no t o nl y b ased up on b uisness bu t pe r so nal skills sh ould also b e co nside r ed. Ma r ket or s ha ve g ot the ir co mmision in t he fir st pr emiu m the r efor e the y ar e exci ted a t f ir st pr emiu m's p ayme nt b ut a ft er th at the y does n't p ay atte nt ion t owar ds t he r est o f poli cy's p ayme nt an d or ga niza tion h as to b ea r th e he avy loss. T he r efor e t hei r pay sh ould b e bas ed up on pe r sisten cy an d r ene wal. Besid es t his e ver y p er son is e ar ni ng 9-1 5 th ous and p er mon th, t he r efor e h e sho uld ge t f ull tim e job r ath er th an p ar t t ime. T he r e sh ould b e a fi xed am ou nt on a pa r tic ula r nu mb er o f p olicies. An d ano th er im por ta nt f ac t:Quali ty: - No ma tt er that poli cy h old er s ar e less bu t th ey sho uld be of lon g du r atio n. I t m ay be t ha t mu ch p eo ple ge t ins ur ed be ca use o f th ei r r efer enc e. Qua nti ty:- T he r e sh ould b e a m uc h nu mbe r of poli cy hol der s be ca use e ver y pe r son g ets ri d af te r th e fi r st tim e. Ma r ket or s sho uld gu ide abo ut e ver y asp ec t of claim th at af fects th e p olic y, so th at poli cy hol der do esn' t e ven t hin k of sur ren der . So metim es mar keto r s g et all t he amo un t o f po lic y by fr au d, the r efor e ar rang men ts sho uld be m ad e th at a po lic y hol de r himsel f ge ts his pr emium pai d.
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FO R ST ATE LI FE INSURANCE CORPOR ATION: T he bills o f ar ea man a ger ge t w as te d. T he n am e "Lif e In sur an ce" is not a ppr opri ate be ca use it do esn' t onl y in clud e lif e buisn ess. T he co r r ect n am e shoul d be " In com e Ins ur anc e". So me de par tm ents h aven' t got pa ds. T hey ar en' t dir ec tl y link ed to z on al h ea d. T he pr obl em cr ea tes w hen z onal h ea d ge ts his ille gal wor ks do ne a nd th er e is n o c hec k a nd b ala nc e the r e. S o e ver y de par tme nt sh ould h ave its o wn p ad t o pr even t this m alfu nc tion. It is t he P akis tan 's bi gges t fin an cial instit utio n bu t till no w i t hasn' t co mple te d its o wn w eb site. So i t shoul d com ple te its w eb site t o ge t pe opl e inf or med abou t its w or ki ng. Adv er tisem en t sho uld be i n thos e ar eas w her e pe opl e know li ttle abo ut SL IC .
FUTU RE P LA NS T he c or por atio n aims a t co nsolid ati ng its buis ness i n fut ur e y ear s. To giv e spe cial a tte nti on t o c hec k in fla tio na r y pr essur es o n e xp ens e par ticul ar ly sala ries, utili ties, c omm uni ca tions et c., by capit
aliz in g on
ne w bu isness gr owt h, imp r ovin g poli cy hol der s ser vice a nd r ed ucin g a voidable e xpe nses.
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To id en tify an d utiliz e the r es our ces in r ur al ar eas in or de r to incr ease a nd mobiliz e s avings fr om th ese a r eas. To st r eamline a nd e xp an d tr ainin g f aciliti es. To lay g rea te r str ess o n r eal in vestm en ts i n suitable pr op er ty a nd o r din ar y shar es, t o en sur e be tt er r et ur n t o t he p olic y ho lde r s. To imp r ove o ver seas buis ness by ope nin g br an ches i n Mid dl e- East.
GL OS SAR Y ACT UAR Y:-
Ac tu ar y is a pe r son e mpl oyed by the
insur an ce co mp any w ho cal cu altes risk i
nvolv e in
insur an ce th er ef or e also c alc ula tes th e pr emi um pa yable by ins ur er. ANNUITY :- An an nui ty is a p eri odic p ayme nt m ad e by lif e insur anc e co mpa ny to a n an nui ta nt. T he paym en t is m ade by t he com pa ny i n ret ur n for pr emiu m whic h is p aid ei th er in a
lump o r as a
seri es o f per iodi c paym en ts. BUDGE T:- Es tima te o f f ut ur e e xpe ndi tu r es in r el ati on o f t he inc ome.
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CAP IT AL M ARKET :- A ma r ket w he r e y ou ca n bo r row or len d mon ey in lon g ter m b asis. INSURANC E:- I nsur an ce is one of th e d evice by w hi ch ris k may be r ed uc ed o r elimin ated in excha ng e f or p r emium. INSUR ER OR A SSURER:-
T he pa r ty w hi ch p r ote cts
an ot he r a gainst t he va rio us r isks. INSUR ED OF ASSURED:-
T he per son or pa r ty w ho is
saf e gu ar de d a gainst t he r isk in e xcha ng e of pr emiu m. INVE STM ENT :- Assets, ge ne r all y o f a lon g ter m na tu r e, t ha t a r e n ot used in n or mal ope r atio n of a buis ness a nd tha t m an a gm en t does n ot int end t o co nver t t o c ash wi thin t he next y ea r. MONEY M ARKET :- I t is a mar ket w her e y ou can bo r r ow o r len d mo ney in shor t-te r m buisn ess. PRE MIU M:- I t is a pe rio dic paym en t pai d by th e insu r ed t o th e ins ur er a gainst t he risk be ari ng. SA VING:- E xcess o f inco me a gains t expe nses. SA VINGS:- W eal th ga ine d th r oug h sa ving.
SKE TCH OF RE POR T
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Introduction
Bonuses
SWOT Analysis
Insurance Companies Insurance Evaluation Insurance in Pakistan Life Insurance in Pakistan State Life Insurance in Pakistan State Life Insurance in Bwp.
Routine Bonuses Terminal Bonuses Special Bonuses Interim Bonuses
Strengths Weakness Opportunities Threats
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 Departments
Marketing Products
Agency Department HRD Department New Business Department PHS Department P&GS Department Audit Department B&A Department
01-
Supplementary Contracts
ADB AIB FIB TIR WP SWP
Competitors
Whole
Life ALICO. EFU Assurance. Metropolitan 03Endowment Commercial Postal Life Assurance. Adamjee 04Progressive Premium. 05- Three Payment Plan. Performance Analysis Investment Portfolio 06- Joint Life. Income Analysis Outgo 07- Child Protection. Life Fund 09- Single Premium End. Ratio Analysis
17- Optimal Maturity.
Liquidity Ratio Activity Ratio Profit Ratio Solvency Ratio
18- Rural Life.
Calculation Overtime Persistency Premium Late Fee. Loan Fee.
19- Jeevan Sathi. 36- Shad Abad. 73- Sunehri Policy. 75-
Child
Edu.
&
Marr.(built in) 76- (Non built in). N.D.SCHEME
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Int er nshi p Pr oce du r e Pl an s r.. #
head
points of
concidr ation ho total ur s no of
depar tm ent
hour s 1 Ch. M.Shubbir marketing management stretigies products(plans) supplimentry contracts Mk.channels 2 Mr.Ishfaq Calculations, loan,maturityclaims deathcliams, surrenders survival,altration 3 Mr.Rafiq under writing policy case allotment 4 Mr.Imtiyaz Organizational stucture Histotry and introduction Division Auditing Competetors 5 Mr. Basic training course
DEPARTMENT OF MANAGEMENT SCIENCES IUB
9
Marketin g
7 8 10 10 10 10 10 9 9 10 9 8 7 6
PHS
30 New busniss 19
Auditing
43 HRD
105
106 Hashmi
6 Mr.Tufail
7 Mr.Freed
8 Mr Asad
Bounuses benefits of life insurance Selling process Organizational stucture Mission and objuctives Strategies, agency department head Future plans payroll, reconsilation Comission,disbursment costing policy holders payments basic salary and grading Office transfer.promotions purchasing ,advertizing Distribution,facilitation
8 7 7 6 7 8 9 9 8 10 7 8 10 9 9
35 Agency
24 B&A
42
P&Gs
28
Total # o f hour s = 246 hour s No of days =36(estima ted) No o f w eeks =6 w eeks
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We shall guide w
ho striv e in our
cause to the pa th leading to us. Sur el y ALLAH is with those w
ho do
well. (AL-ANKAB UT).
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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DED ICA TI ON . Dedica ted to m y belo ved countr y and to the people w
ho de vote d their
liv es f or the fr eedom of this countr
DEPARTMENT OF MANAGEMENT SCIENCES IUB
y.
2
106
PR EFACE. T he c on tri bu tion o f t he ser vi ce to th e P akist ani ec on omy is in cr easing a t a n e xtr a or din ar y r ate an d th e pr ese nt fi na ncial se r vic es r evolu tion lo oks ce r tai n to r ein for ce th at tr end consi der abl y. T he co nt ext do es no t c laim to e xha ustiv e and the bal an ce mus t ine vi ta bl y be o pe n to c ri ticism, b ut in atte mp tin g to giv e a ge ne r al insig ht to th e cas ual inq uir er, the ne eds o f t hos e seeki ng in-d ep th
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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kn owled ge wi thi n par ticul ar a r eas m ust in evitabl y be sacri fic ed. T his r ep or t c over s a d et ail and anal ytical view of th e S ta te L if e Ins ur anc e Cor por ati on. As t he titl e th at this r epo r t is the essen ce o f t he har d w or ki ng w hi ch I ha ve do ne dur ing my in ter nship te nu r e. T his r epor t has b ee n wri tt en in t he hop e th at it will hel
p
any bo dy, w ho r ead it ca r efull y t o o bt ain a r eal un de r sta ndin g o f th e b asic str uct ur es, f un cti ons an d te chniq ues o f t he di f fer en t de par tme nts o f S ta te Lif e I nsur an ce Cor po r ation. T he rep or t is lo ng an d wor dy. I ho pe that the r epor t is r ela tiv el y f r ee of er r or s an d will a ppr ecia te i f er r or s ar e b r oug ht to atte nt ion.
UB AID -U R-R AHMAN .
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106
ACK NOWL ED GME NT. I t ha nk all mig hty AL LAH, the be ne fic ent a nd th e me r ci ful, who gave me a chan ce a nd e no ug h po wer to wri te th is r ep or t. I w ant to expr ess my g rati tud e an d th an ks to t he Zon al Hea d Mr. T ufail Ahm ad C h. , Mr . Ish faq Ab basi D ep uty Ma na ge r PHS an d spe ciall y M r. Im tiaz Ali
for e na bli ng me t o
de vote p ar t t hei r pr eci ous tim e in th e pr ese nt atio n of th is r ep or t. I f eel it my bo un de d du ty to ac kn owle dge w ith d ee p g rati tud e an d in valuable hel p e xte nd ed t o me by my r esp ect ed t ea cher s an d fr ien ds. I am es pe ciall y g ratef ul to M r. Nazik Hussian f or his enc ou r a geme nt a nd g uid an ce to co mple te t his rep or t. All t he addi tion al typin g w as ele gan tl y ef fect ed by M r. Sh oib A kba r, who sho wed co nside r able c r upt og r aphic al e xp er tise, not to me ntio n imme nse pa ti enc e, in ma king som e sense ou t my un tidy an d mu ch ann ot ated scrip ts. To all th ese I ca n onl y say - T han k You. I ho pe th at th e en d pr od uc t is n ot t ot all y u nw or thy o f th e tim e and ef for ts th ey most g en er ousl y g ave.
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106
UB AID -UR -RA HM AN .
Table of Contents 1- Company
and it's Int
2- Mission and Objectiv
r oduction. es.
3- Or ganiza tional Str uctur e. 4- Divisions. 5- Depar tments. 6- File Mo vements. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
7- Customer and
P r oducts.
8- Bonuses. 9- Supplementa
r y Contr acts.
10- Basic Salar
y and Gr ading.
11- Calcula tions. 12- Mar keting Channel. 13- Selling Pr
ocess.
14- Mana gment St r eta gies. 15- SW OT Anal ys is. 16- Competitor
s.
17- Ra tio Anal ysis.
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IN TODUCT OIN Ins ur anc e. Ins ur anc e Com pa nies. Ins ur anc e Evalu ati on. Lif e I nsur an ce in P akist an. St ate Li fe in P akis ta n. St ate Li fe in B ah aw alp ur.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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INTRODUCTION Insurance Insurance
means
that
the
Probable
loss
occurring in future can be so shared that the overall
impacted
individual
or
of
total
section
of
loss the
to
any
society
is
mitigated. Insurance can be of life for the compensation in
case
of
normal
or
accidental
death
or
of
p r o p e r t y l i ke c a r, b u s s h i p , a i r p l a n e , e t c . i n case
of
loss
caused
ear thquakes
etc.
compensation
for
by
fire,
floods,
insurance the
loss
to
provides a
maximum
extent.
Histor y of Insurance: The
need
of
particularly
by
hundred-year remaining cargo
sea ago.
away
carried
sharing perils The
losses was
caused
left
several
merchant
for
months
with
them
with the
ships
valuable hope
of
mar keting profits upon their safe retur n. T he
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106
p e r i l s o f t h e s e a h ow eve r, i n f l i c t i n g ex t e n s i ve damage to the ships and the goods loaded on them
resulting
disaster those
in
sometimes
ultimately involved
caused
in
the
great
the
total
concern
business.
to
They
consequently jointed hand to the way out and thus
insurance
was
found
to
be
the
only
possible means to save individual from total d i s a s t e r. T h i s i d e a o r i g i n a t e d f r o m C h i n a a n d then
developed
by
European
countries.
merchants
used
to
England In sit
and
the
other
beginning
together
and
for
certain define amounts, members used to sign documents the
accepting
ships
or
arrangement skilled
cargo
their
share
carried.
of
risk
This
initial highly
finally
developed
to
most
scientific
ways
and
in
for
assessment of risk and underwriting and still countries. The persons signing in acceptance of their shares are called underwriters.
Life INSURANCE: Life
insurance
insure certain
is
promises premium,
DEPARTMENT OF MANAGEMENT SCIENCES IUB
a to the
contract
whereby
p a y,
exchange
sum
in
insured,
on
the of the
10
106
completion death
of
of
a
the
difference
definite
insured
between
period,
person.
life
or
on
the
There
insurance
is
and
a
other
for ms of insur ance like fir e insur ance, marine insurance automobile insurance etc. covering immediate financial and economic losses. In life
insurance,
with
it
exactness
occur
due
values
to
the
of
never theless,
are
as
death
maintaining
life
to
extant.
In
not
he
but
either
the
dies
if
he
only
only
income
producing
the
important
part
f a m i l y,
for
insurance
short
is
income of
the takes
source f a m i l y, over
the
death,
great
extant
solution to
a a
for
maximum man
entire
dies,
source
responsible the
of in
The
possible
of
when
for
to
repercussions
a
income
possible
likel y
for
workable of
ascertain
person.
result
related
source
the
financial a
possible
to
impact
of
the
the
as
easy
total
on
anticipated
and
not
the
placed
assessment
is
family
income such
liability
for
case and
of for or the life the
responsibility of meeting family needs.
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BE NE FIT S OF LIFE IN SU RA NCE Finac ial Pr otect ion Nece ss ar y S aving Pr oper ty B ui ld ing Loan Faci li ty Educti on and Mar ria ge pl an Income T ax reba te Retir ement Fund ST ATUE UNDER WHICH CREA
TED:-
Li fe i ns ur ance (N ationa li za tion) or der , 1972
(Pr es ident ial O r der X of 1972)
Da te of i ncor por ation : No vember 01, 1972
Le ga l s ta tus : Autonomous copor ati on under the contr ol of the mi ni st r y of Com mer ce, Go vt . of Pak is tan.
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106
Pr incipa l Of fice :
Sta te L if e Bu ild ing No .9 Dr. Ziaud din R oad Kar ac hi, P aki stan.
MISSI ON
OF
STATE
LIFE
INSU RAN CE
COR PO RATI ON
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
“ To
ensure
satisfaction
of
our
valued
policy
holder s in processing new business providing after sales ser vices and optimizing returns of life
fund
maintain
through our
quality
position
culture
at
the
and
leading
to life
insurer in Pakistan.” OBJECTIVES OF SLIC Following are the objectives: To
run
life
insurance
business
in
sound
lines, To
provide
more
efficient
ser vices
to
p o l i c y h o l d e r, To m a x i m i z e t h e r e t u r n t o p o l i c y h o l d e r s b y
economizing
on
expenses
and
increasing
the yield on investment, To
make
life
insurance
a
more
effective
means of mobilizing national savings, To
widen
the
area
insurance
and
making
large
a
section
possible,
to
operation it
the
more
to
population
into efficient
common
of
available
the
extending
comparatively society
of
of
man
from sections in
town
life as as the of and
villages,
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106
To
use
th3e
policyholders
funds
in
the
w i d e r i n t e r e s t o f t h e c o m m u n i t y.
Histor y of Life insurance In Pakistan: Before par tition, there were only three major insurance companies named Christian Mutual, Muslim and easter n Federal Union transacting life
insurance
the
ears,
The
need
through
which for
their
ultimately
having
a
Head
Office
for med
in
Pakistan.
composite
insurance
company par ticularly for Muslims was felt by some
of
the
And
Eastern
Company struggle Muslim
eminent
was of
Muslim
Federal
Union
established
those
Muslim
Insurance
personalities.
in
Insurance by
the
personalities.
The
Company
1932
of
Pakistan
was
of
companies
established in 1949. Before 1972,
the
nationalization
there
was
a
big
competition
in
between
companies involved in life insurance business in
Pakistan
companies Upon
as
there
offering
were the
nationalization
business
in
Corporation
1972, was
DEPARTMENT OF MANAGEMENT SCIENCES IUB
more
than
insurance of
State
for med
thirty
f a c i l i t y.
life
insurance
Life
Insurance
to
take
entire
15
106
liabilities and assets as they related to life insurance business. Starting with three units A,B and C, it was soon merger into a single cor poration. Now including Bahawalpur Zone, there
are
thirty
zone
of
Stat
Life
Insurance
Corporation are working in different par ts of the countr y with Head Office at Karachi. In
Pak
,
nationalized
life
by
insurance
Govt.,
business
Order
in
was
March
19,
1972 and in fact this was an impor tant step toward
economic
development
in
the
history
of Pak. The
nationalized
process
was
completed
in
two phases. In first phase (March 19, 1972), the Govt. has taken over the administration of 32 companies. After this, these were handed over to tr ustee and sub-tr ustee in accor dance to life insurance nationalization order 1972. In
the
second
(November having
1,
three
phase
1972) units,
a
of
nationalization
single
came
into
corporation, existence
by
the name of State Life Insurance Cor poration (SLIC) of Pakistan.
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106
These three units, constituted by merging of one
or
named
more as
A,B
and
C
of
the
life
impr ovement these
units
insurance
(A,B
companies, units.
For
business
were further
in
Pak,
& C) were merged together
and conver ted into zones. SLIC life
has
enjoyed
business
decided
to
a
till
open
complete
1990 it
to
monopoly
when
the
Govt,
local
private
the had
sector
insurers. At present , besides SLIC, there are four
other
life
insurers
operating
in
the
countr y including two foreign companies. The state Life Insurance Cor poration is reinsured by
foreign
insurance
“Swiss
RE”
(Switzerland).
REGIONAL & ZONAL OFFICES
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REGIONAL & ZONAL OFFICES Regional Of fice
Zonal Office Lahore (Central) Lahore (Wester n)
LAHORE Re gion
Faisal Abad Sargodha Gurjranwala Sialkot Karachi (Southern)
KARACHI Region
Karachi (Easter n) Karachi (Central) Hyderabad Mir Pur Khas Larkana Quetta Rawalpindi Mir Pur
RA WA LP IN DI R e g i o n
Islamabad Peshawar Abbottabad Swat Gujrat Multan Sahiwal
Multan Re gion DEPARTMENT OF MANAGEMENT SCIENCES IUB
R a h i m Ya r K h a n Dear Ghazi Khan Bahawal Pur
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106
DEP ARMENTS:-
1- Agenc y Adminstr ation Depar tment. 2- Human R esour ces De volpm ent Depar tment. 3- New Buisness Depar tment. 4- P olic y Holder Ser vice Depar tment. 5- Budget and Accuonts Depar tment. 6- P er sonal and Gener al Ser vices Depar tment. 7- Mar keting Depar tment. 8- A udit Depar tment.
N E W B U S I N E S S D E PA R T M E N T New Business (NB) is considered the soul of Insurance companies. Profitability and
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
sur vival
of
the
business
depends
on
the
NB.
FUNCTION OF NEW BUSINESS In
this
department,
new
contracts
and
Insurance
person
who
as
start
the
name
between
C o m p a n y.
applies
shows,
proposes
Proposes
for
the
is
a
insurance
protection. Main function of the NB is underwriting. This
department
processing
the
is
new
responsible
business
for
introduced
by the sales force right from receiving a proposal policy has
on
the
counter
document
various
to
the
section
to
mailing
p o l i c y h o l d e r. to
perfor m
the It the
different task relating to the acceptance or
rejection
of
risks
for
life
insurance,
the proposal are received and initially is checked in all respects i.e. completion of al
columns
underwriters they
have
and
then
processed
depending been
upon
introduced
by
the
whether
under
the
medical or non-medical scheme. The risk
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
is assessed keeping in view the following factors: •
Personal
data,
physical
and
health,
occupation,
social
family
features,
histor y
of
the
prospect. •
Moral
hazard,
nomination,
source
of
relationship
income, between
the nominee and the prospect. •
Previous life insurance histor y of t h e p r o s p e c t i f a n y.
•
Field
officer’s
representatives report
included
or
sale
confidential in
the
proposal
for m. •
Financial underwriting i.e. source of
i n co me , i ts l e g al i t y a n d p r oof,
relationship prospect’s
between income
the
and
sum
assure. In
case
of
non-medical
scheme,
the
prospects own statement and filed officers or sales
representative’s
reports
have
more
importance.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
After
this
assessment,
the
underwriting
decision is made which may be acceptance of a
risk
at
calling
ordinar y
rated
additional
or
with
evidences
loading,
relating
to
health or financial status of the prospecting for
a
define
declination.
periods
Premium
or
rates,
straight
way
installments
are
then checked and first premium receipts are issued
to
the
department
field
like
force,
and
concerned
commission
payments,
agency administration, computer division and mar keting. function This
This
on
is
the
also
is
brief
new a
terms
business
key
are
the
department.
function
as
the
underwriters are responsible for the financial health god
of
the
risks
growth
life
they
which
institution. promote
help
in
By
accepting
profitability
meeting
the
and
financial
obligations of the life institution towards the policyholders,
its
employees
and
the
gover nment.
WORKING OF NEW BUSINESS
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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The precise working of NB depar tment is as follows:
PROPOSAL NUMBER In order to
fulfill
the
recognition of
the
i n s u r a n c e p o l i c y, N B d e p a r t m e n t a l l o c a t e s a
number
t
each
insurance
policy
for
future references. NB depar tment verifies whether the client is a new customer or a p a s t c u s t o m e r.
UNDERWRITING Underwriting which
the
is
the
process
underwriter
associated
with
Underwriter
the
through
assesses
Insurance
verifies
the
risk
Proposal.
the
personal
infor mation provided in the Proposal for m (See annex. No.1). If he feels that client should have a medical checkup then SLIC has
its
own
penal
of
doctors
to
pr ovide
medical assistance.
P R E M I U M C A L C U L AT I O N After
underwriting
Assured
is
the
calculated
premium in
of
Policy
Sum Brief
Sheet (see annex No.2) in according with the rate book provided by the SLIC. The DEPARTMENT OF MANAGEMENT SCIENCES IUB
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policy fee is charged of Rs. 100 or Rs 2.5 per
thousands
is
less.
of
sum
assured
Further
supplementar y
the
contracts
whichever rates
are
of
added
in
premium.
POLICY ISSUE SECTION After
premium
calculation
the
insurance
and revenue stamps are embossed on the policy bond and the policy d documents is sent to client (See annex No.3) one copy of
policy
document
is
sent
of
(PHS)
department of record purpose.
UNDERWRITING GUIDELINES •
Tak in g of Au th en tic A ge P r oo f
•
Verifi cati on on N omi nee Relati on with Policyholder
•
Analyzing
of
health
and
financial
s t a t u s o f P r o s p e r. •
Verifi cati on
of
stated
infor mation
on
Pr oposal For m. •
Requirement
of
Medical
Repor ts
and
Te s t s . •
Analyses
of
Medical
Repor ts
and
Te s t s .
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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•
Analysis of health histor y and family background.
•
Others requirements.
BUDGET
&
ACCOUNTS
D E PA R T M E N T This department deals in: •
Cash Collection
•
Cash Disbursement
•
Salar y Preparation
•
Budget Preparation
•
I nte r- Zo n e Tr a ns a c ti on
•
Agents Commission
•
Imprest
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 CAS H CO LL ECT IO N:
T here are two mo de of cash coll ec tio n i. e., by Cas h and by Che que. T he col le ct io n is mad e for II Ren ewal Prem iu m an d I .The pr em iu m is pa id by ca sh in SL IC , and it is als o pai d by che que . These cheq ues ar e sent to th e de par tm ent . T hes e chequ es are attac hed al on g wi th “ da il y coll ec tio n sh eet” (D CS ) wi th full detail i.e. Ban ker’ s na me, loc atio n, da te of is su e etc. an d this shee t is sen t to the SLI C’ s au thor iz ed bank (U BL ) in Bah awalp ur for c oll ec tio n.
CASH DISBURSEMENT: For
cash
disbursement,
first
the
voucher
is
prepared, singed and prepared by authorized o f f i c e r, f o r t h e p e r s o n t o w h o m t h e p a y m e n t is
made.
This
voucher
having
the
these
voucher
c o m p u t e r.
amount
in
are
Voucher
is
audited
excess punched
listings
in
of
case
Rs.10000.
(feeding)
are
of
in
maintained,
cheques are prepared, and these cheques are sent
to
concerned
prepared regarding cheques banks
by
daily
total i.e.
p a r t y. the
Bank
authorized
coactions
realization
Statements
DEPARTMENT OF MANAGEMENT SCIENCES IUB
are
Statement
of
and
bankers
payments
cheques.
punched
is
of
These
into
the
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106
c o m p u t e r. T h e d a t a i n f l o p p y r e g a r d i n g C a s h Book and Bank Statement is sent to Principle Office
(PO)
prepared
Karachi.
in
Bahawalpur
P. O
and
Zone
Different these
for
are
further
lodgers sent
to
are SLIC
reconciliation.
Errors and commissions are corrected. Following list are prepared by this section: Data
Wise
To t a l
List
of
Cheques
Encased. List of Cheques Issued (Cash Book) List
of
Unmatched
Cheques
of
Bank
&
lists,
a
Cash Book Files. Along “Daily
with
the
Cheques
above
mentioned
Realization
prepared in the following
Repor t”
manner:
To t a l N o . O f C h e q u e s D e p o s i t e d i n D e c . 19— To t a l
Amount
of
Cheques
Deposited
in
dec, 19--To t a l N o . O f C h e q u e s R e a l i z e d t o d a y To t a l
Amount
of
M o n t h To d a t e ( M T D ) To t a l Amount of (MTD) Realization Ratio
DEPARTMENT OF MANAGEMENT SCIENCES IUB
is
Cheques Cheques
Realized Realized
*** ** ** ** ** **
*** *** *** *** ***
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106
**
S A L A R Y P R E PA R A T I O N : In B&A Depar tment Salar y of the employees is calculated.
Different
allowances
are
offered
to the employees. Loan facilities are availed for
the
employees.
Tax
is
deducted
from
S a l a r y. A p r o v i s i o n o f r e c o v e r i e s o f t h e l o a n is made.
Following
are
the
addition
to
the
salar y
of the employees: (see Annex No.) B a s i c P a y. S p e c i a l / Te c h n i c a l P a y House
Rent
Basic
Allowance
Pay
for
@80%
staff
and
and
75%
of
officer
r e s p e c t i v e l y. Conveyance
Allowance
@Rs.
600
and
Rs.
5 0 0 p . m . f o r o f f i c e r & s t a f f r e s p e c t i v e l y. Car maintenance Allowance @ Rs.550 and Rs.
750
f o r,
only
s ta f f,
unmarried
and
m a r r i e d r e s p e c t i v e l y. T e a E x p e n s e s @ 7 % o f B a s i c P a y.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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The
deductions
from
salar y
are
as
follows: Provident Fund (PF) Contribution @ 1/12 th o f t h e B a s i c P a y. Union Subscription @ Rs. 50 and Rs. 30 for o f f i c e r & s t a f f r e s p e c t i v e l y. Salary
Advance
Repayment
(24
monthly
installments). PF
Loan
Installement-2
(50
monthly
Installement-1
(26
monthly
(40
monthly
installments). Pf
Loan
installments). Convince
Loan
Recover y
installments). House Building Loan Installments. House
Rent
Installment
(18
monthly
installments). Following are the dif ferent types of loans, which
can
be
availed
by
employees
of
SLIC managed by salary section: T w o - M o n t h A d v a n c e S a l a r y. Loan-I against PF (3 Basic Pay).
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Loan-2 against PF (12 Basic Pay or 90% of Pf
employee own contribution, whichever
is less). Conveyance
Loan
@
Rs.
55000
and
Rs.
1 5 0 0 0 0 f o r s t a f f & o f f i c e r r e s p e c t i v e l y. House Building Loan. After
preparation
(Additional purchased database. prepared
&
of
salary
Deduction)
(feeding) Different such
as
payable
the
data
into
the
computer
types
of
total
is
lists
loan
are
payment,
allowances etc.
B U D G E T P R E PA R A T I O N : B u d g e t i s p r e p a r e d a n n u a l l y. P r o p o s e d B u d g e t is sent to PO. T he funds of different heads of proposed Office
budget
are
Bahawalpur
assumed
that
each
transfer red
wholly
or
year
First
to
p a r t i a l l y. Ye a r
Zonal It
is
Premium
(FYP) is increased by 25%. According to this
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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base
the
commission
of
the
agents
are
calculated and budgeted. Following are the main types of budget: Income Budget Claim Budget Commission Budget Admin, Expenses Budget Admin
&
Claim
considering Zonal
&
previous
Regional
budgets. Karachi
Budget
If are
the
funds
whenever
required. in
is
credited.
No
the
The
by
expenses.
have
separate
transfer red
are
from
proposed
PO
budget,
acquired
from
PO
Budget
Re gister
is
the
employee/par ty/expense
estimated
actual
Offices
than
additional
maintained
year
funds
less
is
department is
additional
debited expense
for
and
cash
is
made
when the budget is in short.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
INTER-ZONE TRANSACTION: There is separate section for inter-zone transaction in budget and accounts. Whenever any expense is made on behalf zone,
the
debit
concerned other
zone
zone
note
for
that
can
Employee
is
1,2,3 4 to 7 7 & onward
expense.
issue
debit
(or
30
Pay
whichever
to
the
S i m i l a r l y, note
%
Rs. 150000 Rs. 200000 Rs. 2155000
Bahawalpur
any other
issued
Loan
Grade
of
age
to
Rate
(interest) 6 6 10
Basic
is high) Zone is they
have
occurred
the
expenses on behalf of Bahawalpur Zone. T he expense incur red on behalf of other zone can
be
claimed,
investigation expense,
s a l a r y,
expense,
TA / DA ,
u t i l i t y,
entertainment,
claim Meeting
repair
&
maintenance, rent, Medical expense etc.
COMMISSION SECTION:In Section
B&A
Department,
calculates
DEPARTMENT OF MANAGEMENT SCIENCES IUB
the
the
commission
commission.
First
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106
Premium New
Receipt
(FPR)
Business
Commission
is
prepared
Department
Section
to
is
by
the
sent
to
calculate
the
commission of agent. It has four copies, one for
commission
section
and
other
three
for
agents (SR,SO,SM). The commission rates var y with the amount of F Y P a n d t e r m o f t h e p o l i c y. T h e M o d e B o n u s is given to SR if
the premium installment is
a n n u a l l y,
of
@1.5%
F Y P.
Allied
is
Bonus
g i v e n t o S O , S R @ 4 . 3 5 % o f F Y P P. A . , p a i d by
monthly
if
they
have
72%
of
II
year
p e r s i s t e n c y, 9 0 % r e n e w a l p e r s i s t e n c y, 1 0 S R S and last year FYP of Rs.120000 and Rs.150000 r e s p e c t i v e l y. P r o d u c t i o n B o n u s i s g i v e n S R , S O &
SM
if
they
have
Rs.6000,Rs.15000, have
minimum
Further
the
commission In
tax
commission
loans
are
Rs.50000
70%
from
of is
the
and
DEPARTMENT OF MANAGEMENT SCIENCES IUB
on
II
year
year
@10% of
different
fulfillment to
of and
p e r s i s t e n c y.
commission
targets
FYP
respectively
deducted
section
given
requirements
last
agents.
types of
of
of
certain
agent
i.e.
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106
Emer gency Advance, Eid Advance, Conveyance Loan, House Building Loan.
C O M M I S S I O N R AT E S
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
F i r s t Ye a r R a t e For Sales Representative Premium
Te r m
Prod.
( Ye a r )
20
Bonus
14-Oct
15-19
Above
Rs. 1-3999
25%
30%
35%
--
4000-5999
25%
30%
35%
2.00
6000-7999
25%
30%
35%
2.50
8000-9999
25%
30%
35%
3.0
10000 above
25%
30%
35%
3.5
FOR SALES OFFICER Premium
Te r m ( Ye a r )
20
10 To 14
15-19
1-19999
13.13%
14.88% 17.50%
20000-34999
15
17
20
35000-49999
16.88
19.12
22.5
50000-74999
18.75
21.25
25
75000-above
19.5
22.1
26
FOR SALES MANAGER Premium
Above
Te r m ( Ye a r )
20
10 To 14
15-19
Above
1-49999
4.50%
5.10%
6.00%
50000-99999
6
6.8
8
100000-1490000
7.5
8.5
10
150000-199999
8.25
9.35
11
200000-above
9
10.2
12
S E C O N D & O N W A R D Y E A R S R AT E S FOR SALES MANAGER SR
SO
SM
I I Ye a r
10.00%
2.00%
1.00%
Onward
5
1
0.50%
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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DEPARTMENT OF MANAGEMENT SCIENCES IUB
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C O M M I S S I O N PAY M E N T P R O C E D U R E : Following ar e thr ee methods used by SLIC for payment of commission to agents:
In
•
Payment by cheques
•
Authority Card.
•
Payment by Post. first
method,
the
payment
is
directly
made to the agent by cheques. In the second method, person
the
payment
authorized
by
is
made
agent
by
to
other
signing
the
“A u t h o r i z e d C a r d ” ( S e e A n n e x N O 0 . 5 ) i n t h e third method the commission is paid by post to his postal address on his direction.
PRIZE AND AWARD:The prize and award are given to field force who
are
achieved
the
highest
FYP
at
any
time announced by SLIC.
E M E RG E N C Y A DVA N C E : It
is
given
earning
on
to
SO,SM
the
on
renewal
the
previous
premium.
For
year SR
previous 2 year ear ning become entitlement of loan.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
E I D A DVA N C E : Previous year total ear ning of SR,SO and SM becomes entitlement.
C O N V E YA N C E L O A N : It is given to SO,SM only on the condition of having 5 year ser vice association with SLIC and two guar antor s. T he loan can be taken up Rs.40000.
HOUSE BUILDING LOAN: To o b t a i n t o t h i s l o a n m i n i m u m a s s o c i a t i o n with
SLIC
is
15
years
and
per vious
year
renewal premium becomes entitlement.
IMPREST SECTION: Imprest is the additional privileges given to the
employees
(Area
Managers).
A n n u a l l y,
the Imprest Entitlement is made for the AM by considering the previous progress in the business. Different Circulars ar rive from PO to Bahawalpur Zone mentioning the different type of privileges on different FYP targets. These privileges are free petrol, telephone, e l e c t r i c i t y, c l e r k w a g e ,
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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stationar y and other facilities etc.
PO LICY HOL DER SER VICE DEPARTM EN T PHS is t he ab biva tio n of "P olic y Hold er's Se r vic e" de par tme nt. As th e na me in dic atin g th at all th e se r vices f or poli cy h old er a r e p er for me d he r e. We can also call t hes e ser vi ces, aft er sale se vic es. It is t he m ost busy d ep ar tm en t of SL IC in e ac h z one. Ev er y se r vice p r ocess w as ta ken v er y c ar ef ull y in th e last c on fer enc e o f SL IC . It w as an no unc ed t ha t ever y ser vi ce w oul d be c om plet ed wi thin 1 5 da ys. Oth er wise St ate Li fe p ays rest ric tion pl en ty to t he poli cy hol der . T he he ad o f PH S is also sit ting in P .O , Kar ac hi. His pos t is G .M, the n ea ch r e gion c on tai ns D.G .M lastl y t he hea d o f PH S dep tt. i n eac h z one is de pu ty man a ger. Follo win gs a r e t he fun ct ions pe rfor me d in PHS de pt t.
DE ATH CL AI M
W he n a pe r so n dies, his r ela tiv es o r hei r s t ell SL IC a gen t or dir ec tl y to the z onal of fic e. S LI C de ma nds cer tai n doc um en ts li ke 1. A ppli ca tion f or dise ase. 2- NIC . 3- Disease a nd nomi na tor s a r e a tt est ed. 4- De ath ce r tifi ca te f r om uni on co un cil. 5- Origi nal do cu men ts (ORs). Fir stl y de pt t. ma na ger o r his collig ue is appoin te d f or t he i nvestig atio n o f th is c ase. He also DEPARTMENT OF MANAGEMENT SCIENCES IUB
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chec ks FI R fr om t he nea r es t T ha na. I f c ase is c le ar , th en S LI C tri es h is b est t o giv e claim as so on as possibl e. In cas e of ac cid ent, sam e pr oc ess a nd w ay o f in vestig ati on is pe rf or med. T he pl ac e of in vestig ati on is also c hec ked by the in vestig ator s seri ousl y. SURRENDER
An ot her se r vic e o f th is d ep tt. is sur rend eri ng. If a po lic y hol de r w ant s to f inish his poli cy due his cu mp olsar y n ee d of mo ney . T he n he has t wo op tio ns. Fi r stl y, he ca n ta ke loa n, fr om his o wn pr op er ty. Af te r r equi r em en t's com ple tion h e pays 13 % int er est an d co nti nu es his po lic y. Se co ndl y, i f his ne ed is not ful filled w ith t his am oun t th en he ca n sur ren de r his p olic y. B ut he ca n't g ain all his am ou nt be ca use he is b r eakin g th e co nt r act. Follo win gs a r e t he req uir ed do cu me nts. 1- A ppli ca tion. 2- NIC & a ttes ta tio n. 3- Origi nal r ecei pts. Af te r all th ese co mpl etio ns sur r end er valu e is bas ed on y ou r cas h value. AL TERA TION
W he n poli cy hold er w ants som e c han gin g in his te r m, sum assur ed t he n this c ha ngi ng is c alle d Alt er atio n of poli cy. e.g. A po lic y hol de r has a p olic y o f su m assur ed 2,0 0,00 0 an d he is no t sa tisfie d to this. He w an ts to inc r ease it. T his is call ed Alt er atio n.
TER M CHANGING
–
A poli cy c on tai ns 2 0 y ear s to b e ma tu r ed, bu t poli cy hol der w ants t o de cr eas e it. He thi nks th at af te r 15 y ea r s h e w oul d ne ed t his amo un t. T his is an ot he r typ e of Alt er atio n. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
123456-
Follo win gs a r e t he req uir eme nts f or Al ter ati on. Origi nal r ecei pts. Alt er atio n f ee = 2 5 Rs. Alt er atio n pe rf or ma. F or m. A ppli ca tion. I. D. c ar d.
NOMIN ATION CH ANGE
3r d kin d of al ter ati on is n omi na tion c ha ng e. Fir st a poli cy h old er n omin ated his wi fe but af te r some t ime h e ga ve div or ce to he r wi fe a nd n ow he wan ts an ot he r pe r son f or no mina tio n. FILE TRANSF ER
If y our p olic y r ec or d is in Mul ta n z one an d n ow you ar e in Bah aw al pur . T hen y ou ca n tr an fer he r e by applica tio n. MATURITY CLAIM
W he n a po lic y go es to i ts m aturi ty, i t mea ns th at its ter m is co mpl ete d. SL IC sen ds a let te r to i ts poli cy hol der .If do cu men ts, o rigi nal r ecei pts, all pr emiu ms a r e r igh t, th en a heal thy am ou nt wi th bo nus es g oes to poli cy hol der 's a cc ou nt. Ot her wise if you h ad t ak en loa n and co uld no t r et ur n 1 3% int er est an d ha ving c er tain c ash valu e in y ou r poli cy, the n th is l oan pl us int er es t of th at pe rio d woul d be d ed uc ted. All ma tu rity c laims goes t o y our ac co un t. LOANING
Oth er f ac ility of SL IC is l oani ng. Y ou ca n ge t loa n fr om y our a cc ou nt. Mo st o f t he p eo ple a r e allo wed 7 0% lo an fr om the ir o wn acc ou nts. In cas e of se rious ne ed 80% is allo wed t o be ta ken as lo an. Bu t wit h an e me r ge nc y c ase an d wi th t he h elp o f an au th ori ty y ou w oul d be a war de d 90%.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Bu t it is b en efi cial f or p olic y ho lde r s t o ta ke a minim um loa n fr om th ei r acc ou nt. e.g - if y ou t ak e 7 0% lo an, th en 30% w ill r emai n in your ac co un t an d its cas h value w ill r emai n ta ke it inf or ce f or mo r e tim e. I f y ou ta ke 90 % loa n, t he n onl y 10 % will rem ain in y our a cc ou nt an d it w ill co ver less time t o ta ke po lic y inf or ce d. No de du cti on o f Z ak at f r om de ath c laim. W hile Za ka t is c ha r ged f r om bot h sur r en de r an d ma tu rity claim. REVIV AL
Ch ar gi ng o f l ate f ee or e xtr a f ee is call ed Revival, i f th e giv en pr emi um da te has be en p assed. T he n till 30 d ays t he r e is no e xt r a fee, be ca use th ese 3 0 days pe rio d is c alled g r ac e pe rio d. T hen fr om 3 0 to 90 d ays whe n y ou go t o sub mit pr emiu m wi tho ut l ate fee, th en i t may be d em an de "DGH" (D ec lar atio n o f Go od He alth ) by th e he ad of this de par tme nt. B ut fr om 9 0 da ys l ate fee will star t. At this ti me PS ( Per so nal St atem ent ) ca n also b e de ma nde d. T hese all ar e t he b en efi ts of suspe nse ac co un ts. B ut th e loss o f susp ense a cc ou nt is, p ar ty will ne ver ge t th e c laim. Bec ause i t is no n-cr edi t in ac co un t. Ano th er te r m is S pe cial R evival, w hic h me ans if you h ave for got te d you r poli cy aft er payin g at leas t two pr emi ums and the n wi thi n 5 y ea r s i t r emains in for ce, t he n poli cy hol de r has th e c ha nc e
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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to ren ew it, e.g., he is un
able t o pa y the r emainin g
pr emiu ms pl us the ir la te f ee . T hen h e ca n r en ew it by th e st ar tin g of r unnig y ea r. I n o th er w or ds if y ou go t y our p olic y in 97 , the n n ow it will skip to 200 2. CONSTI TUTION OF CLAIM COM
MI TTE E
T he c laims co mmit te e of pri ncip al of fic e for ta kin g de cisions on a
ll t he dea th & inj ur ed c laims
r efer s to the pri ncip al of fice is r eco nstit ut ed as follo ws. 1:- D .G .M (PHS ) P.O.
Co nvey or.
2:- Ma na ge r (PHS ) P.O
Se cr et ar y.
3:- Ma na ge r (PHS ) P.O
Me mb er.
4:- Ma na ge r (Ov er sees )
Me mb er.
5:- Ma na ge r (C& P) Division.
PERSONAL
Me mb er.
&
GENERAL
SERVICE D E PA R T M E N T ( P & G S ) The office & general matters are dealt in P&G Department.
This
DEPARTMENT OF MANAGEMENT SCIENCES IUB
department
has
the
sole
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106
responsibility
and
disciplinar y Selection,
authority
action
of
recruitment,
the
of
the
employees.
termination
of
the
employees is the main functions of
the P&G
Department.
deals
medical leaves The this
This
facility and
daily
department to
similar
the
office
other
is
Following
in
employees,
general
correspondence
department.
also
ser vices.
dispatched are
the
in
main
section of this department:
MEDICAL SECTION: All this hospitalization expenses are beard by SLIC
pr ovided
that
these
are
incurred
in
approved hospital. T he expenses of medicine are
reimbursed.
The
reimbursement
of
medicine is not allowed to staff (having grade 1
to18)
but
they
are
given
Rs.600
p.a.
in
shape of salar y as medical allowance.
RENT SECTION: When sale Manager (SM) is promoted to Area Manager (AM),he is categorized as A,B,C and he has entitle to have his own office at choice location
at
the is
expense
selected
DEPARTMENT OF MANAGEMENT SCIENCES IUB
by
of
SLIC. the
A
A.M.
his good after
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106
selection
of
place,
Zonal
Head
is
infor med
about the location, by application written by A.M. this application is transferred to P&GS Depar tment for the analysis of location of the office.
The
annualizes
Zonal
this
Rent
location.
Committee A
lease
(ZRC)
agreement
is made with the landlord after analyzing the approved
map
for
the
location
and
property
registration for m. The office rent entitlement for the categories of A,B,C of Am is Rs.2000, Rs.2000, & Rs.1000 P. M r e s p e c t i v e l y .
C A P I TA L S E C T I O N : This
section
responsible
and
maintenance
of
equipment
etc.
a
Committee
(ZPC)
is
for
purchase,
furniture Zonal
&
sale
fixture,
Procurement
constituted
for
the
purchase of assets. The assets are purchased from
the
analyzing
suitable the
supplier
quotation
after
offered
by
critically different
venders. Each
year
assets
are
depreciated
@10%
p.a.
the entr y for the purchased assets is made in
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
the
Register
for
Fixed
Assets.
Each
ear
the
closing balance is intimated to PO Karachi.
S TAT I O N A RY S E C T I O N : This section maintains the record of s t at i o n a r y s u c h a s p a p e r, p e n c i l , e nve l o p s , printed letters, for m, calculators, dustbin, etc. whenever any depar tment requires the s t a t i o n a r y, t h e c o n c e r n e d d e p a r t m e n t f i l l s a Requisition Slip. The stationar y is issued to the concerned department and it is recorded i n t h e r e g i s t e r.
L E AV E S E C T I O N : Following ar e the main two types of leaves: •
Casual Leave
•
Medical Leave 20 days casual leaves are allowed to all
employees
in
a
y e a r.
The
medical
leave
or
application leave is allowed for 48 days in a y e a r.
Unused
leaves
are
accumulated
and
after two years these leaves in excess of 180 das
can
be
encased.
In
case
of
death
all
leaves, not utilized, can be encased.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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PERSONAL SECTION: All
the
employee
matter
such
as
appointed,
promotion, demotion, transfer and allowances are
dealt
by
personal
section.
Annual
Confidential Repor t-ACR (see annex N. 10 for ACR) the
employees
super vision
of
are
prepared, under the
this
section,
by
the
departmental heads. For
the
appointment
of
the
st a f f,
an
a d v e r t i s e m e n t i s i n i t i a t e d i n t h e N e w s p a p e r. Zonal
Head
is
appointment of office
(PO)
Selection
computer
authority
for
this
officers is done by Principle
Karachi
Committee
or
Re gional
constituted
by
Office. Zonal
H e a d c o n d u c t s a t e s t a n d i n t e r v i e w. For promotion of the employees, there ACR’s are
necessar y
and
minimum
three
years
are
required to remain in one cadre. Each year he employees
are
instructions
promoted
set
by
by
PO
the
criteria
Karachi.
and
PO
or
Regional Office does promotion of officers.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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A G E N C Y D E PA R T M E N T Ser vice
provided
by
the
SLIC
is
intangibles and therefore are not acquired at the counter by the people, who need it, so it must
be
sold
them
through
persuasive
method. Field force of SLIC plays an effective role
in
selling
(Insurance record was
of
of
Plans). the
field
established.
department
In
tangibles order
force
The
includes
to
maintain
agency
main
products
department
function
recruitment,
the
of
this
promotion,
and ter mination of the field force, allied and medical
facility
for
field
force.
This
depar tment is also responsible for insurance and renewal of license to the field force.
RECRUITMENT: T he Sales Representative (SR) is appointed by SO/SM.
The
requirement
and
conditions
for
the appointment of SR is as follows: •
Minimum
qualification
is
required
metric. •
Age at entr y must be than 18 years.
•
Annual quota for SR is Rs. 10000.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Application for the insurance of license
•
is
necessar y
and
it
is
renewed
after
each 3 years. An
application
Rs.
50,
and
For m,
attested
Nomination
along
with
photocopies For m
is
license
of
fee
documents
submitted
to
the
agency depar tment. A code number is allotted at the submission of application to SR and he can
start
working
as
agent
of
the
SLIC
of
Pakistan.
PROMOTION: SR
is
term
promoted, and
business
upon
condition targets,
fulfillment
and to
on
SO.
of
certain
achievement Similarly
SO
of is
promoted to SM and SM to A.M. following is the criteria:
FROM SR TO SM: •
Two years wor king as SR:
•
Must have secured minimum Rs. 75000 FY
during
years,
but
immediate
preceding
in
calendar
any
one
two y e a r,
the FYP should be less than Rs. 25000. •
Must have at least 20 policies in force on different lives.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
•
Must
have
a
achieved
a
minimum
S e c o n d Ye a r P e r s i s t e n c y o f 7 0 % i n t h e i m m e d i a t e p r e c e d i n g y e a r. •
Must
have
Renewal
achieved
Persistency
a
of
minimum
90%
in
the
i m m e d i a t e p r o c e e d i n g y e a r.
FROM SO TO SM: •
Must
have
working
of
minimum
2
year s as SO. •
Mush
have
Rs.250000
secured
FYP
in
the
minimum immediate
proceeding two calendar years, but the
FYP
in
any
one
calendar
year
must not be less than Rs.60000. •
Must
have
at
least
80
policies
in
force in his/her organization; •
Must
have
minimum
Second
Ye a r
Persistency of 70% in the immediate p r o c e e d i n g Ye a r ; •
Must
have
minimum
renewal
persistency of 90% in the immediate proceeding year; •
Must have minimum 4 productive SR.
FROM SM TO AM: DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
•
Must
have
working
at
least
for
3
years as SM; •
Must
have
secured
the
following
total FYP for categor y A&B: A= Rs.45,00,000 B= Rs.36,00,000 And last year FYP must not be than: A= Rs. 20,00,000 B= Rs. 15,00,000
•
Number
of
policies
in
the
last
year
must not be less than: A= Rs.200 B= Rs. 150 •
Must
have
minimum
Persistency of
Second
Ye a r
70% in the immediate
proceeding year and minimum second year
persistency
previous
year
of
of
65% the
of
the
immediate
preceding year ; •
Minimum 2 SO should be qualified to sum;
•
Annual quota must have: A= Rs. 30,00,000
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
B= Rs.18,00,000
T E R M I N AT I O N & D E M O T I O N : Any
agent
violates
of
the
SLIC, rules
who &
behave
n e g a t i v e l y,
regulation
or
indulge
fraud or mal-practice, can be ter mination by the Zonal Head. Any agent who fails to meet the
annual
quota
of
FYP
is
demoted
to
immediate lower rank of the field force.
LICENSE: The
license
issued
by
Karachi. field
to
Insurance license.
the
At
force
work
of
list
for of
new
for
of
time,
transfer red
Karachi The
agent
Controller
specific is
as
to
a
is
Insurance list
of
controller
and
license
SLIC
renewal
fee
is
the of of
given
below: SR (New License
Rs.
f o r I s t Ye a r ) SR (Renewal of
59 Rs.
License) SR (Renewal with
70 Rs.
late fee) SR/SM (Renewal of
125 Rs.15
License) SO/SM (Renewal
0 Rs.20
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
with late fee)
0
List of Field For ce in Bahawalpur Zone Field Cadre SR SO SM AM
No. Agent 571 189 73 11
HRD DE PARTMEN T HRD is th e abr eva tion o f " Huma n R es our ce
De volpm en t ". T his d ep t. tr ai ne d th e fi eld f or ce to inh an ce th e p eo ple. It te ac hes th r oug ho ut t he Ma r keti ng c ha nn el wit h th eir sp ecial co ur ses. Follo win gs a r e t he cou r ses f or f ield f or ces, be ca use th is t ea m is a f r ont lin e o f SL IC . Co ur ses
Ma r keti ng
BT C
IS R
BT C
SO
ADP
IS R
MOP
SM , AM
MOS L
SO , S M
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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MM S
AM,S M
I h ave a tte nd ed t he B TC co ur se. F oll owi ng is t he d et ail. Tr aini ng an d c ou r ses g iv e th e f oll owin g be nfi ts:1:-
Pr ofessionali ty.
2:- Se r vic e Upg r adin g. 3:- Liklih oo d habi ts. 4:- Pla nnin g. Tar ge t attai ning:Time. In co me. Pla ce. Follo win g thi ngs ar e th e k ey te r ms f or a mar keto r. Be for e g oin g int o a ma r ket.
ACT IO N A = Ac tiv e.
C = Co nfi den ce.
T=
O = Or ga niz ed.
N
T ha nk ful. I = I nt ellig ent. = No ble.
K AS H
CA SH
K = Kno wle dg e. A = At tit ude.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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S = Skill. H = Ha bit. You ca n ge t all wish es w ith t he hel p of th ese t er ms an d th en you c an c ash e ver yt hing. I f you ar e unable to
hol d it th en this En gli sh " C ash "
will c han ge in to Ur du " Kash ". Y our b asic ta r get is
SALE .
S = Smile. A = At tit ude. L = L ove. E = Eval ua tion.
BUDGETING (PRA
CTIC AL PLANNIG)
Monthl y Expenditur es. For ec asti ng.
Ho use r ent
3000
Utility bills
10 00
Food , D r essing
30 00
Tr anspor ta tio n
10 00
Cust ome r de alin g
12 00
Oth er e xp ens es
800
Total.
1 0,0 00.0 0
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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To c over t hes e expe nses y ou h ave to inc ome th r oug h this f or ec astin g.
MONTHL Y INCO ME FO RECASTING In co me
10, 00 0
Pr emium
25, 00 0
Policies
10
Me eti ng
10 0
Nam e obt ain ed Wor kin g days Me eti ng / da y
20 0 20 5
T he m ain pu r pos e of th e co ur se is " T o t hin k in adv an ce " an d th is is th e basi c pla nnin g.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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I N T E R N A L A U D I T D E PA R T M E N T This department plays a super visor y role of all of the all the other departments by checking
and
verification
done
the
departments
by
of
all
the
according
working to
the
r ules and r e gulations pr ovided b PO Kar achi time to time. These r ules and regulation are provided to all the Zone through Pakistan in shape
of
c i r c u l a r.
These
circulars
are
attached in the book, which is called “Key to PO
Circular
departments
Vo l u m e ” . are
DEPARTMENT OF MANAGEMENT SCIENCES IUB
All
working
verification
of
according
the to
57
106
t h i s b o o k . I n t h i s w a y, t h e f r a u d s , e r r o r s , a n d omission are detected.
TYPE OF AUDIT: •
Pre-Audit
•
Post-Audit
When
the
payments, conducted
audit it
is
is
after
done
called
making
before
making
pre-audit.
payments
is
Audit called
post Audit. Pre audit is conducted for all the big
payments
payment
at
such
maturity
as
purchase
of
p o l i c y,
of
assets,
payment
on
death claim etc. Post audit is conducted for all-to-day
expenses
such
as
traveling
expenses, stationar y etc.
CUS TOMERS OF S TATE LIFE
1- EXTE RN AL CUST OMERS Ex ter nal cus tom er s ar e th ose w ho h ave no lin k wi th SL IC . T hey ar e th e co mm on pe opl e w hi ch ar e th e mai n ta r get o f sal es f or ce.
2- INTERN AL CUST OMERS In te r nal cus tom er s ar e inf ec t thos e peo ple who ha ve dir ec t or in dir ect
link
wit h SLIC . T hese
ar e
em plo yees o f th e c or por atio n an d th eir r ela tiv es.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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MAR KE TIN G PR OD UC TS Table
Name
01-
W hol e Lif e Assur anc e.
03-
En do wm en t Assu r an ce.
04-
Pr og ress iv e P r emi um.
05-
T hr ee P ayme nt Pla n.
06-
Join t Lif e.
07-
Child P r ote ctio n.
09-
Sing le Pr emium En do wm en t.
17-
Optim al Ma tu rity .
18-
Rur al Li fe.
19-
Jeevan S athi.
36-
Sh ad A bad.
73-
Su neh ri P oli cy.
75-
Child E du ca tion a nd Mar ria ge( built in )
76-
Child E du ca tion a nd Mar ria ge(N on bu ilt
in). N.D .SCHEM E Polic y f ee is no t c har ge d on t hes e pla ns. 18, 71,7 2,73, 77. If p olic y sum assu med is 30 0,0 00 or mo r e 50 pais a is r eba te on basic r ate.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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T he r e is a 8% r ebate f or sta f f empl oyees o n pla nes. 0 1 to 07 . 5 1 to 57 . T hese a ll pl ans ar e fi nishe d fr om J ul y 2 00 2. 02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62.
01:- W hol e Lif e Ass ur an ce Ag e limi t = 10-6 5 y ear s. Minim um pr emi um. T his is f or l ow in com e pe opl e. Bo nus r ate is Ma ximu m 50 p asia is r ebate o n fact or w hi ch st ar ts fr om t hr ee la ck sum assur ed. e.g. A ge Ma tu rity
= 3 4 y ear s. = 85 y ear s.
Pr emium p aid = 51
yea r s.
= 500, 00 0 23. 49 - 0.5 0 = 22. 99 22.9 9 + 4 A TB = 26. 99 2 6.9 9*50 0 = 11 49 5 *10 0 P r emi um. = 11 5 Ma tu ri ty Cl aim:R e gula r Bon us 56*5* 50 0 = 14 0,00 0.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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10 2*4 7*50 0 = 23 4,6 00. T er mina te d
30* 20*5 00 = 3 00, 00 0. = 32,8 6,0 00.
De ath Claim S.A. = 50
0,0 00.
Acc ed en tal c laim = 50 0,0 00. A ge a t Ac cid ent = 55 y ear s. R e gula r Bo nus = 50 0*5* 56 = 1 40, 000. 50 0*1 6*10 2 = 8,1 6,00 0. Ter min ted:5 00* 11*3 0 = 1,6 5,0 00. = 21,2 1,0 00. AIB
adde d 2 ,85, 495
Rs.
03:- End owm en t Assu ranc e A ge te r m = 2 0-65 year s. Matu rity a ge = 7 5 y ear s. It 's ben ef it is t ha t t ime du r atio n is o n y our wish. T his p olic y h as a sing le no min ee. Ag e = 37 y ear s. Ter m = 20 y ea r s.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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FI B = 15 % ADB = 1. 25 % 59. 86 F ac to r + 1. 25 ADB = 6 1.1 1 61. 11+ 10 0 Poli cy fee = 6 2.1 1 Pr emium.
04:- Pr og ressiv e Pr emium Ma tu ri ty Cl aim:S.A = 10 Re gula r Bo nus =
0,0 00
100* 5*4 8 = 24, 000 10 0*1 5*94 = 1 ,41, 000
Ter mi na te d 100* 10* 30 = 30 ,00 0 = 1,9 5,00 0. 1, 00,0 00 will also b T his w ill b ec ome
e adde d.
2,9 5,00 0.
Spec ial te r mi na ted Bonus :10* 10*1 00 = 1, 00,0 00 = 3,05, 00 0 Rs.
Dea th Cla im :-
I f d ea th 2nd yea r
= 1, 00,0 00 A cc ede nt al Cl aim = 1,0 0,00 0 R e gula r Bon us = 48* 1*10 0 = 2, 04,8 00. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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05:- T hr ee P ayme nt Plan T his is spe cial f or b uisness ma n pe opl e. Ter m = 18 -30 y ear s. Ter ms:-
18, 21,2 4,27, 30 y ear s.
Ma tu ri ty w ill o n e ver y 6th y ea r if ter m is 18 yea r s. e.g. 25 % claim w ill b e pai d af te r 06 y ea r s. 25 % claim w ill b e pai d af te r 12 y ea r s. 50 % claim w ill b e pai d on m aturi ty per iod.
Be st Use :W he n y ou g ot 25% c laim y ou ca n fi x it in ba nk s che me, af te r 10 y ea r s t his am oun t will be 4 tim es. Age =
Pr emiu m: 42 y ear s
S. A = 50, 000 T er m = 21 y ear s. 61. 09*5 0 = 30 54. 5 30 54. 5 + 10 0 = 31 54
`
07:- Child
Pr ot ec tio n
Child a ge = 6-1 5 y ear s Don ar a ge = 20-5 0 y ear s
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Child r en have no allot ed a ny suplime nt ar y co nt r act be for e 5 y ear s old. Af te r 5 y ear s a ge ADB ca n be added. If S.A is g r eater tha n 1, 50,0 00 th en un de r wri te r ca n de ma nd " R ej ec t Me dic al Test ". If F ath er Di ed . Pr emium p ayme nt st ops. Till
m aturi ty 10%
sc holar ship an uu al y go es to childr en. At m aturi ty date c laim pl us b on uses will go to c hild r en. If C hildr en Die d . If c hild di ed a ft er 1s t y ear o f p olic y th en 10 % of S.A + 10 % o f B onus will be. I
f af te r 2 y ear s of
poli cy the n 2 0% o f S.A + 2 0% o f b on us will g o to fathe r. Af te r 10 th p r emium co mpl ete S.A + bo nus will go
c om plet e
in ea ch c ase.
18:- R ural Lif e Ag e = 20-5 5 y ear s T er m = 15 or 2 0 y ear s In ac cide nt al case 3 times c laim will pai
d.
In ac cide nt al case b ut wit h any c laim will be pai d.
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T he o th er f ac ility for p olic y hol de r is t ha t no la te f ee will b e c ha r ged
wit hin 8 m on ths af te r
pr emiu m paid d ate. T his p olic y is fr ee f r om poli cy f ee.
Pr emiu m: T er m = 2 0 y ear s A ge = 2 1 y ear s S.A = 1, 00, 000 5 9.1 2*10 0 = 59 12 591 2 + 1 00 = 6 11 2
19:- J ee va n Sa thi Pr emium sing le Pr ot ec tion d ou ble If a ny on e dies, th e ot he r pa r tne r get s claim. If th e ot he r also d ies, the n th e c laim go es to th e Hea ris. Is ola te d me dical f or bot h p ar tner s. Se par ated f illing o f p r opose d f or ms. Eac h c an t ak e supl eme nto r y co nt r act. Table 1 9 = WP +
TIR + 03
Eq ual a ge co nsid er atio n. W ome n age = 24 y ear s - 2 = 2 2 y ear s M an's a ge = 3 4 y ear s DEPARTMENT OF MANAGEMENT SCIENCES IUB
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Dif fer en ce 34 - 22 = 12 y ear s T his d if fer en ce will see i
n the 4 will de du ct
fr om t he e lde r a ge. Me dic al will b e de ma nd ed if FIB si mo r e t ha n 25 %
Ma n = 3 4 y ear s W oma n = 24 yea r s Ter m = 20 y ea r s S.A = 1, 50,0 00 ASB = 1 .25 Rs FI B = 15 % 56. 32 + 8. 22 ( 15 % FI B) = 6 4.5 4 64. 54 + 1. 25 ( ADB) = 65. 79 65. 79*1 50 ( S.A) = 986 8.5 98 68. 5 + 10 0 (p r emium f ee ) = 9 96 8.5
36:- Sha d A ba d Ag e limi t = 20-6 0 y ear s T er m = 10, 15,2 0,25 In cas e of ma tu r ed dea th 2 tim es claim w illl be pai d. In cas e of ac cid ent al de ath 4 ti mes c laim will b e pai d. If AI B added t he n 5 tim es claim w ill b e pai d in
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cas e of de ath. FI B & A IB ca n also b e adde d wit h th e wish es o f und er wri te r. T-36 = ADB + TI R + 03 Pr emium. S. A = 2,0 0,00 0 Ag e = 25 yea r s Ter m = 2 0 y ear s 53. 45*2 00 = 1 0,6 90 10,6 90 + 1 00 = 10, 790
73:- Sun eh ri P olic y Bo nus r ate = 115 /1 000 It is sam e o f lo ng lif e, plan,s aving an d p r ote ctio n. Ag e limi t = 20-6 0 y ear s A ge = 3 4 y ear s S.A = 1, 00, 000 He w an ts no incr ease i n 6% th en this will pr oc ee d li ke o th er p olicies. If h e w an ts to ren ew 6% th en medi cal will be de ma nde d. No poli cy f ee, no r ebate. S uple men to r y co nt r acts.F IB , ADB , TI R. Co ntr ac ts a nd ben efi t o f su pleme nt or y c on tr ac t star ts fr om 3r d pr emiu m.
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75:- Child
Edu ca tio n and
Mar ria ge Ev er y pe r so n can ge t this f or his nep he w, son e tc. I n cas e of poli cy hol de r's d ea th 24% F IB s chol ar ship go es to c hild r en. But bir th c er tific ate will be de ma nde da t ma tu rity or de ath. In cas e of also child's de ath th e c laim go es to hea ris. Cash valu e ca n ge t no suple men to r y co nt r act a dde d to chil dr en. Ter m = 18,2 1,2 4 FIB = 24%
N'D S cheme For m en tal, a bon or mal, hal fse t peo ple + a ge d pe opl e + un fi t peo ple. Bu t ma n get th r oug h 03 o r 05. A ge limit = 2
0-58 yea r s
T er m for 03 = 10, 15, 20 T able 0 5 T er m = 18, 21 y ear s No supl eme nt or y c on tr act. Claim w ill o nl y in c ase of ac ce nd en tal de ath in fi r st
two y ear s. If af te r 2 nd
year , na tu r al de ath h appen ed. T he n on e y ear's c laim
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ba ck aft er 3r d pr emium, c om plet e am oun t r eceiv ed. Not hin g shoul d be r eq uir ed in th is s che me.
BONUSES Routi ne. Ter mi nal. Sp ecial T er minal. In te r r um B on us. R e gula
r ( Rou tine ) Bonuses :_
Ti me
Fir st Fi ve Y ear s
<2 0
56
10 2
20 >
48
94
After Fi ve Year s
01-E nd owme nt.
15-1 9
35
81
10-1 4
20
60
20 <
15-1 9
35
09
25
59
19
53
02-P ayme nt
pla n 10-1 4
TER MIN AL BONUSES
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At t he m aturi ty time o r a t th e d ea th time i f th e poli cy inf or ced t ill a ft er 4 y ea r s. A ft er t he 1 0t h pr emiu m, t er mi nal bo nus st ar ts. T his b on us is 30 Rs. / 1 00 0 a t th e pr emiu m, w hic h is m axim um a t 60 0 Rs. p er tho usa nd. e.g.
t-03 S.A = 10 0,0 00 Ter m = 25 y ear s Pr emium =
500 0
10 0 (S.A )*1 5(Y r s. r emai ning )*3 0(R ate) = 450 00
SPECI AL T ER MIN AL BONS UES In cas e of FI B y ea r in 20 02 a t p olic y ma tu rity , th is b on us will b e giv en to y ou. T his will be giv en to y ou a t ea ch last 10
y ea r s p r emium wi th
th e r ate of 10 / 100 0 w hi ch is ma ximum. 20 0 / 10 00 e.g.
t-03 S.A = 10 0,0 00 Ter m = 30 y ear s
FI B
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10 0( S.A)* 20( Yr s. r em ainin g)*2 0( Ra te ) = 20 00 INT ERR UN BONUS
T his is giv en as int er r um bon us, w hi ch is giv en at te r minal b on us. e.g. Sp ecial b on us is giv en in 20 02, b ut it do es not go es to p olic y h old er an d PH di ed. In this cas e th e bo nus w hi ch is deli ever ed in 20 03, will also b
e giv en
to poli cy h old er. e.g. Du ring 2 00 2 a te r min al bon us is giv en t o Ubai d. Bu t th e bo nus ce r ti fica te does n ot fin d to Ub aid, an d suc h a mist ak e happ ene d. T he n this will go t
o
Ubai d's c laim as in ter r um bo nus. SP ECIAL BONUS
Co nditi on = P olic y sh ould b e inf or ce d w hen th is bo nus is ann ou nc ed. e.g. pr emiu m of 94 w ill b e pai d in 95 's p r emium da te . SUPP LEM ENT AR Y CONTR ACT ADB . AIB . FI B. DEPARTMENT OF MANAGEMENT SCIENCES IUB
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TI R. WP. SW P.
SUP LEM EN TOR Y C ON TR ACT S AD B
Do uble c laim pa id fr om 5 -55 y ear s. ADB be co me 4 tim es in S ha dBa d au tom ati call y. In t abl e 18 t his is 3 tim es, b ut in c ase o f injur y or d ea th wit h a gricul tur al too l this will pai
d 5 tim es. No n e xte r nal
or int etr nal inju r y ef fect the de man d o f ADB c laim. Noti ce o f c laim is
atta ched t o t he d oc ume nts w hen
this c on tr act st ar ts. T his con tr ac t is c he cked wit hin 90 days of de ath. has t he r igh t to e xami ne th e bo dy at any d ate. T er mi na tio n in case o f de ath c laim, or if goes t o sixty y ear s a ge. I f y ou w an t to inc lud e it in cas e o f r evival the n t his will h appen a cc or ding t o th e r ul es o f. Risks
whic h ar e e xclu de d in this
co nt r act ar e in m ur der , he at str ok e, in ar restin g, ga mes, pr a g r enc y, a ny ef fect f r om alc oh ol d r ug etc .
AIB
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In cas e of de ath, do ubl e claim w ill g o to par ty. In ac cid en t, i f t wo main o r gans, two ar ms, t wo le gs, tw o e yes or one ar m, le g or ey e died t he n co mpl ete claim will
be c ha r ged an d all th e p r emi um lif e and
on maturi ty. Sam e Assur ed + Bo nuses o f P r emium pai d. But i f on e m ain or ga n des tr oys e.g. On e ar m or on e le g de ma ge th en hal f o f t he claim will
be p aid bu t n o r eba te in pr emiu m.
cas e of on e ey e 1/3 o f S.A will
In
reci eved. Fin ge r of
Sh ah ad at o r th um b des tr oy, t he n 1/ 4 of S.A will r ecie ved, n o r eba te in pr emiu m. I f th er e is a ny seri ous inju r y th en 5 /1 000 r eci eved f or 52 w ee ks. If inju r y is m or e tha n 15 days. Bu t af te r 52 weeks 1 00 /10 00 f or 10 year s will be r ecie ved. Ter m = 20-5 5 y ear s
FI B It 's limi t star ts f r om 10-5 0% a nd 1 0-25 % . No me dical c ha r ge but af te r 25 % FI B me dicall y y ou will chec ked. I n cas e o f de ath m on thl y s cholar ship pai d.I t's ter m is fr om 1 0-45 yea r s. Ag e limit is
f r om
20-5 0 y ear s. Pr ot ec tion o f con tr ac t will rem ain a t
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65 year s a ge. T his con tr ac t te r mina tes o n Ex pir y da te , if t he p olic y la ps e, sur r ende r or on a ny poli cy an niv er sor y a t p rio r no tic e by th e poli cy hol der . I f your po lic y is o n R evival t he n of fc ou r sty it's amo un t will be a dded.
TIR Frie nd go es to Dub ai, for t wo or t hr ee y ear s an d gai ne d a co nt r act. T ha t if y ou r ac cid en t happe ned at any pl ac e the n it's e qu al amo un t go es to y our ac co un t. Ter m is fr om 1 0-25 year s. Ag e limi t is fr om 2 0-60 y ea r s. Ma ximu m rate o f TIR is 3 tim es. I t's pr ot ec tio n r emains a t 70 y ea r s a ge. Be caus e the se co nt r acts ar e o f 2 o r 3 y ear s, so mos tl y f act or y ho no ur s, driv er p eo ple ge t t his.
SU PLEM ENT OR Y CO NT RA CT R ATE S Cl er k, Pr of es siona ls etc . AIB = 4 Rs ADB = 1. 25 Rs
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Buisn ess ma n ADB = 1. 5 Rs AIB = 5 Rs
For mer ADB = 1. 88 Rs AIB = 6 Rs
La bo ur ADB = 2. 5 Rs AIB = 6 + 2 = 8
Rs
FI B is o n th e wish o f poli cy h old er. Follo win gs a r e t he plans w hic h ar e of f f r om J ul y 20 02. 02, 21,5 1,5 2,53,5 4,5 5,56,5 8,5 9,62
SA LAR Y A ND GRA DI NG Gr ad e
In it ia l Pay
1
15 45
80
34 56
2
17 88
10 0
38 68
3
18 49
10 2
39 91
4
20 37
11 8
45 15
5
21 05
13 3
48 98
6
26 52
14 9
57 81
DEPARTMENT OF MANAGEMENT SCIENCES IUB
Inc r emen t
Max. P ay
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106
7
33 74
28 8
13 45 4
8
49 90
35 0
11 99 0
9
72 00
49 0
15 53 0
10
89 70
61 0
18 12 0
11
12 63 0
64 0
22 23 0
12
13 66 0
68 0
23 86 0
13
15 92 0
71 0
26 62 0
14
18 42 0
90 0
30 12 0.
SW OT AN ALYSIS St r eng th. Weak ness. Opp or tuniti es. T hr ea ts.
SWOT A N A LY S I S “T her e is an old Spa in s ay ing th at to be a DEPARTMENT OF MANAGEMENT SCIENCES IUB
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bullfighter you must first Lear to be a bull”. SWOT
stand
Opportunities this
for and
analysis
which
is
the
organization
strength,
Threats. to
identify
current and
The
its
Weakness, main
the
strategy
more
specific
aim
of
extent of
to the
changing
taking place in the business environment. The idea of
SWOT analysis is to under take a more
structured yield
analysis
finding,
so
which
as
to
can
yield
so
as
contribute
to the
f o r m u l a t i o n o f s t r a t e g y.
STRENGTHS SWOT Analysis of SLIC is as follows: Field force Management Good image Excellent set up Real estate division (investment por tfolio) Training academies & tr aining center s Mar keting division Adver tising & Sales promotion Computerization Mar ket leader
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Retur n (bonus to policyholder) Gover nment security
FIELD FORCE MANAGEMENT: SLIC
has
Offices
ful-fledge
organized
HRDD
by
in
most
qualified
ZONAL
trainers
and
equipped by modern equipment to mange and train field force.
GOOD IMAGE: SLIC is an old insurance company operating in the Pakistan and has created the good image and good will in the eyes of
general public.
This is the strength of SLIC.
EXCELLENT SETUP: SLIC
is
a
Pakistan
large and
Life
have
Insurance
27
Zonal
Company
Offices
and
in 5
R e g i o n a l O f f i c e s t h r o u g h o u t t h e c o u n t r y.
R E A L E S TAT E D I V I S I O N ( I N V E S T M E N T PROTFOLO): SLIC Real
has Estate
well-equipped Division
in
and
computerized
principal
office
(PO)
K a r a chi su p e r vi se d b y hi gh l y q u al i f i ed s t af f, engineer s and investment anal ysts.
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TRAINING ACADEMIES & TRAINING CENTERS: SLIC
has
Lahore
3
training
and
Centers
in
courses
and
Academies
Rawalpindi zonal
and
offices.
seminars,
at
Karachi,
26
In
Training
1998,
1946
from
Basic
ranging
C o u r s e s t o a d v a n c e d P r o g r a m s l i k e A D P, M O P and MMS of LIMRA (USA) had conducted.
MARKETING DIVISION: This
division
is
backbone
of
SLIC.
During
1998, 25486 young and educated people were inducted as SR in the sale force, this raising its strength to 256,814, inclusive of SO & SM.
ADVERTISING & SALES PROMOTION: During 1998, a new penal of four adver tising agencies such
as
display other
of
was
selected.
installation commercials
Outdoor
of
adver tising
Unipole
in
PTV
publicity materials such
is as
Hoarding done
and
Calendars,
Sticker s, Eid Cards, and Poster s are produced to boost business activities.
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About The
2/3
plan
working to
is
computerized
computerized
total
in
SLIC.
working
is
u n d e r r e v i e w.
RETURN (BONUS TO POLICYHOLDER): SLIC
pr ovides
R e v e r s i o n a r y,
different
types
Te r m i n a l ,
of
Interim,
bonuses One
as
time,
Golden and Special Rever sionar y Bonus to the p o l i c y h o l d e r.
G OV E R N M E N T S E C U R I T Y: It is the main strength of f a c t o r,
the
image
and
SLIC. Due to this
good
will
for
SLIC
is
further enhanced:
OTHERS: ♦ It is old and most experienced organization. ♦ PO
conducts
mar keting
sur vey
to
analyze
environment and develop new plans. ♦ Employees are fully devoted and highl y paid
wor kers as compare to other or ganization. ♦ It has highest paid up capital. ♦ It
is
reinsured
by
Swiss
Re
(Insurance
Company Switzerland).
WEAKNESSES
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Incompetent field force Internal setting & culture Centralized Decision Making Inter nal depar tment inefficiency Selection & recruitment Feed back
INCOMENTENT FIELD FORCE: I n t e r m o f q u a n t i t y, i t i s s t r e n g t h b u t i n t e r m of not
quality
it
highly
is
weakness.
educated.
Most
wor ker s
are
promoted
They
are by
fulfilling targets.
I N T E R N A L S E T T I N G & C U LT U R E : Internal office setting and arrangement is not satisfactor y Dominant but
sub
as
compare
Culture
culture
needs
(i.e
to
its
competitors.
further
improvement
HRDD,
Group
Insurance)
o f s o m e d e p a r t m e n t i s s t a t i o n e r y. Y e t t h e r e i s need of fur ther impr ovement.
CENTRALIZED DECISION MARKETING: Managerial
decision-making
is
totally
centralized in the PO Karachi, Zonal Offices follow the instruction and rules & regulations provided by PO. Sometimes decisions is taken by PO is not strategic and adjustable in the DEPARTMENT OF MANAGEMENT SCIENCES IUB
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local
environment.
For
prosperity
&
survival
of the organization, decentralization (to some e x t e n t ) i s n e c e s s a r y.
I N T E R N A L D E PA R T M E N T INEFFICIENCY: ♦ Underwriting
takes
process
longer
time
(in
NB
period,
Department)
which
irritates
the prospects. ♦ Loan section takes 10 days to process. ♦ Normally
1
to
2
months
is
required
to
sur render the policy and take the Sur vival Benefit, which is not justified.
SELECTION & RECRUITMENT: SR
are
selected
ir respective
of
and their
recruited
by
education
SO
and
&
SM
unique
inter nal attributes.
FEED BACK: T he Cor poration does not have any ef fectives and
efficient
feed
back
channel
to
disseminate sales force suggestions to upper management.
F u r t h e r,
well
system
organize
DEPARTMENT OF MANAGEMENT SCIENCES IUB
organization for
feed
back
has
no
between
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106
o f f i c e e m p l oy e e s a n d m a n a g e r, m a n a g e r s a n d Board of Directors.
OTHERS: ♦ Frauds done by some deceives field wor kers
who
deteriorate
the
good
will
&
image
of
the organization. ♦ Ineffective
downward
and
upward
communication channels.
OPPORTUNITIES P E R - C A P I TA P R E M I U M In
Pakistan
per
capita
premium
payment
is
1.5 and $1.7 only for life & general insurance r e s p e c t i v e l y. enhance
this
There
is
nominal
an
opportunity
rate.
In
Japan
to per
capita premium for life insurance is $3810.
P O P U L AT I O N G R O W T H R AT E : In
Pakistan,
approximatel y
population 3%.
It
is
a
growth great
rate
is
opportunity
f o r i n s u r a n c e s e c t o r.
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In
Pakistan
while
2%
rest
opportunity
to
of to
3%
population
the life
is
population
insurances
to
insured provides enhance
their business.
G OV E R N M E N T R E G U L AT I O N : Section
10-B
Industrial the
of
Pakistan
Standing
compulsor y
employees
of
Commercial
Ordinance insurance
the
1968 of
organization
and
provides all
the
(whether
private or Govt.). So it is a great oppor tunity to SLIC.
E NT E RY BAR R IER S To
enter
in
the
investment
is
required.
premium
is
insurances,
insurance
compulsor y to
cede
Further for
to
Pakistan security purpose
business
the
40%
he of
private
Gover nment
of
creating the entr y
b a r r i e r.
T H R E AT S
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COMPETITORS: The
existence
of
local
and
gover nment
insures such as EFU, CU, Metropolitan. ALICO etc. is threat to the sur vival of SLIC.
P O L I T C A L I N S TA B I L I T Y : Political instability looses the confidence of the
policyholders.
regulations
of
Further
gover nment
are
rules
and
subject
to
change creating threat to insurance business.
FEAR OF WAR The relationships of not
satisfactor y
Pakistan with India are
due
to
Kashmir
dispute.
There is always a fear war creating the threat to corporation and policyholders.
I N V E S T M E N T C L I M AT E : Due
to
the
gover nment
political
changeover
instability the
and
investment
c l i m a t e s a r e n o t s a t i s f a c t o r y i n t h e c o u n t r y. So
the
return
from
real
estates
and
other
activities is deteriorated. Competors
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ALICO EFU METRO POLETON COMERCIAL LIFE P O S TA L L I F E
AD AM JE E
T he main C omp eti tor s o f S LIC a re: Easter n Federal Union (EFU) Commercial Insurance Company Metropolitan Insurance Company American Life Insurance Company (ALICO)
SLIC
has
enjoyed
a
complete
monopoly
till
1990 when the Govt. has decided to allow the private After
insurers 1990
declining. mar ket
the But
share
to
operate
mar ket yet
in
life
SLIC
in
share has
insurance
the of
Pakistan. SLIC
enjoyed business
is the of
91.4 on the basis of total premium written off in 1997. The
year
of
establishment
of
the
life
insurance companies are as follows:
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106
EFU
and
EFU CU
1992 July
ALICO
1996 May
Metropol
1995 Febr ua
itan
ry
SLIC
1993 1972
CU
have
adopted
the
Unit
Link
System. W henever the policyholder takes the i n s u r a n c e p o l i c y, h e i n d i r e c t l y p u r c h a s e s t h e units of
the EFU and CU. T he values if
this
u n i t i s a n n o u n c e d d a i l y i n t h e n e w s p a p e r. The
strategic
analysis
of
SLIC
is
confined
only 5 years star ting from 1994 to 1998.The main
objective
financial
status
of
this
and
analysis
competitive
to
know
position
the of
SLIC keeping in view dif ferent factor s such as total business in force, life fund, investment por tfolio, total income, FYP etc. first, I star t from premium Income of SLIC. STATE LIFE I NSURAN CE CORPORA TION OF P AKI ST AN SUMM ARIZED INCOME
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 ST ATEMEN T FOR TH E YEA R ENDED ON 31 DECEMBER- -----------1997 1998 1999 2000 2001 Total Income First year premium 1,487, 1,293, 1,258, 1,033, 1,121, 409 756 084 522 142 Renewal premium 4,363, 4,413, 4,311, 4,537, 4,564, 671 159 467 853 562 Single premium 2, 2,2 65 561 323 48 37 Group premium 1,412, 1,244, 1,250, 1,101, 1,256, 867 368 941 959 481 Annunities 2, 11, 15, 4,8 2,5 165 754 030 90 08 Interest, Dividend,Rents 5,791, 5,866, 8,372, 7,791, 8,355, 018 708 300 677 685 Profit on sale of Investment 109, 128, 32, 80,8 51,1 293 692 962 44 58 Profit on sale f assets 1, 7 1,0 630 549 200 36 28 Miscallaneous income 9, 15, 41, 38,4 8,3 934 923 315 72 59 Total Income 13,177, 12,975, 15,285, 14,592, 15,360, 052 470 622 201 960 Oper ating E xpense s Claims & Policies paid 4,341, 4,714, 4,904, 5,136, 5,572, 069 853 083 130 197 Management Expenses 1,599, 1,381, 1,303, 1,132, 1,213, 135 227 398 029 747 Payment to Field workers 964, 939, 1,214, 1,081, 939, 867 710 557 302 660 Rent for offices 101, 1, 137, 141, 134, 729 325 893 985 382 Staff Gratuity & Pesion 57, 867, 92, 57,2 53,9 349 635 727 22 21 Provision for bad debts 7, 12,6 317 814 10 DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 Depreciation Other Expenses
38, 843 373, 271
41, 382 504, 454
39, 332 359, 737
7,476, 580 5,700, 472 66, 172 206, 201 272, 373 5,428, 099
8,450, 586 4,524, 884 75, 260
75, 260 4,449, 624
8,059, 541 7,226, 081 45, 641 155, 775 201, 416 7,024, 665
1997 41% 43%
1998 34% 35%
1999 46% 47%
Voluntery retirment Scheme Total Operating Expenses Oper ating pr ofit Provision for Taxation Federal Govt Share Total Net pr ofit
Net Profit margin Operatiang profit margin
35,7 59 401, 441 759, 501 8,745, 369 5,846, 832 204, 036
204, 036 5,642, 796
8,267, 053 7,093, 907 159, 974 242, 418 402, 392 6,691, 515
2000 39% 40%
2001 44% 46%
ATIO ANALYSIS Net Profit Margin Ne t Pr ofi t/ Tota l Inco me DEPARTMENT OF MANAGEMENT SCIENCES IUB
68,0 60 272, 476
89
106
Year Net margin
Profit
1997
1998
1999
2000
2001
41%
34%
46%
39%
44%
The net profit margin of the company is very good. It clustering round 40% that is very good. The net profit margin of the corporation dropped down to 34% in year 1998 from 41% in year 1997.
In year 2001 that net
profit margin of the corporation is 44% that is 3% higher than the profit ratio of 1997 i.e. 41%.
Operating Profit Margin Operating Profit / Total Income
Year Operating margin
1997
1998
1999
2000
2001
43%
35%
47%
40%
46%
profit
The operating profit margin has increased from 43% in year 1997 to 46% in year 2001. This thing shows that the management has taken some encouraging actions to reduce the operating expenses of the cor poration.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Liabilities Year Current Ratio
Cur r ent Ra tio Current Assets / Current 1997
1998
1224%
1066%
1999
2000
2001 1300 1160% 1399% %
T he company has kept the majority of its sources in the current assets. The ratio of the c u r r e n t a s s e t s i s i n c r e a s i n g o v e r t h e y e a r. T h e ratio of current assets to current liabilities has increased from 1224% in year 1997 to 1300% in year 2001.
De bt R ati o
Total Liabilities / Total Assets
Year Debt Ratio
1997 99%
1998 99%
1999 99%
2000 99%
2 001 98%
As the company acquires funds from the general public it has huge amount of exter nal sources. T hey have remained almost 99% t h r o u g h o u t t h e s e y e a r.
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
In vestment to T otal Assets Investments / Total Assets Year Investments assets
to
1997
1998
1999
2000
2001
65%
65%
68%
59%
67%
total
T he cor poration has kept majority of its assets in the investment of various types. T he por tion of investment in the total assets of the company is increasing. It has fallen down to 68% in year 1999 but again increased to 67% in year 2001.
Loans to T otal Assets Loans / Total Assets Year Loans to Total Assets
1997 7%
1998 6%
1999 6%
2000 5%
2001 5%
The portion of the loan to total assets has remained constant from 5% to 7% in these five y e a r. I n y e a r 1 9 9 7 i t w a s 7 % t h a t h a s f a l l e n down to 5% in 2001.
Local In vestments to Total Assets
Local Investment / Total Assets
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106
Year
1997
1998
1999
2000
2001
Local Investment to total assets
8%
8%
7%
6%
6%
The
portion
of
the
local
investment
in
total assets has been decr easing over the years.
It has fallen from 8% in year 1997
to 6% in year 2001.
Investment to Gover nment Securities
Investment in Govt. Securities / Total Assets
Year s
1997
1998
1999
Investment in govt securities to assets 65%
67%
68%
2000 2001 58%
T he cor poration has kept majority of its cur rent assets in the gover nment securities. T he por tion of the gover nment securities in total assets has also remained constant around 65%. It has increased from 65% in year 1997 to 67% in year 2001.
STATE LIFE I NSURAN CE CORPOR ATION OF P AKIS TAN SUMM ARIZED BAL ANCE SHE ET
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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67%
106 AS ON 31 DECEMBER- ------1997
1998
1999
1,969, 077 17, 874 1,200, 214 480, 260 1,391, 699 2,014, 286 5, 734 56, 008 64, 896
2,419, 961 24, 719 1,455, 617 482, 410 1,516, 051 2,419, 718 2,7 36 56, 008 55, 339
1,476, 142 25, 728 2,038, 001 443, 830 1,702, 212 3,037, 760 14, 893 56, 008 55, 283
8,694 ,277 23, 337 2,861 ,545 1,292 ,532 1,189 ,107 2,886 ,969 1, 144 56, 008 54, 133
3,211 ,165 23, 241 2,781 ,446 885, 952 886, 587 3,250 ,337 13, 768 56, 008 42, 167
35,709, 40,477, 618 219
46,220, 194
42,526 ,450
54,889 ,017
120, 90, 58, 800 282 870 1, 1,0 1,0 000 00 00 4, 4,7 4,7 750 50 50 47, 929, 111, 296 239 648 35,788, 39,644, 46,173, 872 012 166
729, 743 1, 000 4, 750 177, 791 43,084 ,152
517, 212
ASSE TS CUR RENT AS SET S Cash Stores & Spares ( stationery) Income Tax Refundable Sudary Debtors Outstanding Premium Interest, Dividends, and Rents Amount Due from other persons Balance Of Compensation Agents Balances
In vestment s Govt Securities
TFCs Certificate of Investments Preferred Stocks (-) Diminution in Value of Investments Total Investments (net)
PKR(000) 2000 2001
DEPARTMENT OF MANAGEMENT SCIENCES IUB
4, 011 783, 083 54,627 ,157
94
106 Total Current Assets
42,988, 48,076, 920 571
55,023, 023
60,143 ,204
65,777 ,828
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 51, 397 62, 950 9,410, 326
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 51, 397 62, 950 9,410, 326
3,828 ,072 600, 000 243, 684 10, 000 4,614 ,223 51, 397 62, 950 9,410 ,326
3,828 ,072 600, 000 243, 684 10, 000 4,614 ,223 51, 397 62, 950 9,410 ,326
2,430, 2,910, 961 162 168, 164, 663 141 23, 13, 081 218 2,622, 3,087, 705 521 55,034, 60,574, 182 418
2,708, 779 1,044, 121 5,4 79 3,758, 379 68,191, 728
2,664 ,205 1,265 ,236 1, 086 3,930 ,527 73,484 ,057
4,363 ,420 1,835 ,781
1,468, 368 303, 793 101,
657, 471 353, 275 262,
494, 078 374, 461 279,
Non Cur rent As sets Loans
3,828, 072 600, 000 243, 684 10, 000 4,614, 223 63, 628 62, 950 9,422, 557
Wapda Bonds U.K Govt Securities Bonds, Debentures, Stocks Ordinary Stock In Pakistan Ordinary Stock Outside Pakistan Holding Subsidiaries Cos. Total Non-Cur ren t As sets FIXED ASSE TS Hourse Property (net) Furniture, Fixture and Equipment(net) Vehicles Total Fixed Assets Total Assets EQUI TIE S & LIABILIT IES Cur rent Lia bilitie s Sundry Creditors premium and Other Deposits Agent's balances DEPARTMENT OF MANAGEMENT SCIENCES IUB
776, 104 242, 648 232,
1,507, 821 269, 508 183,
86 6,199 ,287 81,387 ,441
95
106 264 Balance of compensation Payable Amount Due to other persons outstanding Claims
357 5
Pr ovision s Loans
Total Long T er m Lia bilitie s Equity Paid Up capital
591 17,
31,
730 2,970 ,182
389 3,631 ,464
3,
2,8
2,6
2,
1,
59 7
6
242
918
680
60 10, 333 4,509, 430
37,
452 4,299 ,331
663 246, 148 248, 729 5,059 ,877
50,730, 55,126, 167 729 279, 332, 699 846 33, 94, 325 597 51,043, 55,554, 191 172
62,122, 449 361, 791 118, 307 62,602, 547
67,713 ,960 413, 076 107, 029 68,234 ,065
74,416 ,031 402, 520 131, 428 74,949 ,979
Rese r ves General Reserve Exchange Fluctuation Reserve DEPARTMENT OF MANAGEMENT SCIENCES IUB
14
95 97 34, 477 37, 869 4,742, 340
Total current liabilities
Provision for Gratuity
591
91 58, 110 2,771, 825
78 13, 866 18, 529 3,513, 122
total provisions
Outside Pakistan
5
165
91 39, 416 2,498, 404
8
Other receivables
LONG TERM LIABILIT ES Balance o f Lif e Insur ance Fund Within Pakistan
5
630
91 19, 546 2,223, 440
785 House Property
784
6,7
34, 530
100, 000
100, 000
350, 000
350, 000
750, 000
18, 808 359, 061
18, 808 392, 008
18, 808 478, 033
18,
18,
808 581, 853
808 608, 777
96
106 total reserves Total Equity Total Lia bilities Equities
&
Current Assets Debt Ratio Investments to total assets Loans to Total Assets Local Investment to total assets Investment in govt securities to assets
377, 410, 869 816 477, 510, 869 816 55,034, 60,574, 182 418
496, 841 846, 841 68,191, 728
600, 661 950, 661 73,484 ,057
627, 585 1,377 ,585 81,387 ,441
1997 1224% 99% 65%
1998 1066% 99% 65%
1999 1160% 99% 68%
2000 1399% 99% 59%
2001 1300% 98% 67%
7% 8%
6% 8%
6% 7%
5% 6%
5% 6%
65%
67%
68%
58%
67%
RE CO MME ND ATION S FO R OFF ICE FOR CE T he r e is muc h nu mb er o f o f fi ce st af f. T her e ar e fiv e dep ar tme nts an d eig hty-fiv e pe r sons ar e wor ki ng in e ac h de par tm ent.
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106
T he sal ar y is low, so as t he investme nt. T he r e gular w or kin g hou r s ar e mu ch a nd als o the over time r ate is lo w. At ta chm en t an d de ta chme nt ar e no t o n me rit basis, th ey shoul d be o n me rit a nd r ec r uit men t of fic er s giv e m uc h f aciliti es t o th ei r rel ativ es a nd fr ien ds, e .g., SLI C pr ovid es a n A.C an d ca r pet to de pu ty man a ge's r oo m bu t of fic er s ha ve giv en th em t o assista nt ma na ge r. Of fi cer s do n' t lik e to m ove the c laim files an d pu blic ha ve t o m ove ar oun d th e of fic e ma ny t imes. No w it has b ee n sug gest ed th at a pe r so n shoul d just as k for t he c laim o nl y o nc e an d ge t his r ecei pt. No w af te r th ir ty days, la te f ee c har ges will ge t inc r em en te d as the days pass an d co r r es pon ding o f fi ce r will be r esp onsible f or th at. Of fi cer s c laim a bou t mar keto r s t ha t t hey h ave go t mu ch h olid ays an d mo ve abo ut t o th eir w ill. T hen it is su gges te d tha t S atur day's holi day sho uld be r oun de d. Ma nu al w or k t ak es mu ch time so e ver y of fic e sho uld be provid ed wi th a c om put er. Of fi cer s h ave r ud e be ha vi our t owar ds g en er al pu blic, this sh ould b e ca r ed. Of fi cer s h ave not go t qu alifie d do ct or s, th ese do ct or s ha ve n ot a ny cri te ria to be ful filled. T he r efor e m any pr obl ems a rise a ft er d ea th c laims.
FO R MA RKETETING
FO RCE
Sel ec tion is not ide al. A t leas t, mi nimum qu alific ati on f or sele ctio n sho uld be g r ad ua te. T he r e sh ould f r ami ng co ur ses a ft er selec tion f or mar keto r s.T hey sho uld no t onl y be tol d th e w ays
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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to im pr ove the ir in com e but also imp r ove th ei r atti tu de an d be ha viou r. At te ndin g th e co ur ses sh ould b e mus t. T her e sho uld be four cou r ses ea ch yea r an d a tte ndi ng th e t wo cou r ses sho uld be must f or e ver yone. T he c rit eri a for pr om oti on sho uld no t o nl y b ased up on b uisness bu t pe r so nal skills sh ould also b e co nside r ed. Ma r ket or s ha ve g ot the ir co mmision in t he fir st pr emiu m the r efor e the y ar e exci ted a t f ir st pr emiu m's p ayme nt b ut a ft er th at the y does n't p ay atte nt ion t owar ds t he r est o f poli cy's p ayme nt an d or ga niza tion h as to b ea r th e he avy loss. T he r efor e t hei r pay sh ould b e bas ed up on pe r sisten cy an d r ene wal. Besid es t his e ver y p er son is e ar ni ng 9-1 5 th ous and p er mon th, t he r efor e h e sho uld ge t f ull tim e job r ath er th an p ar t t ime. T he r e sh ould b e a fi xed am ou nt on a pa r tic ula r nu mb er o f p olicies. An d ano th er im por ta nt f ac t:Quali ty: - No ma tt er that poli cy h old er s ar e less bu t th ey sho uld be of lon g du r atio n. I t m ay be t ha t mu ch p eo ple ge t ins ur ed be ca use o f th ei r r efer enc e. Qua nti ty:- T he r e sh ould b e a m uc h nu mbe r of poli cy hol der s be ca use e ver y pe r son g ets ri d af te r th e fi r st tim e. Ma r ket or s sho uld gu ide abo ut e ver y asp ec t of claim th at af fects th e p olic y, so th at poli cy hol der do esn' t e ven t hin k of sur ren der . So metim es mar keto r s g et all t he amo un t o f po lic y by fr au d, the r efor e ar rang men ts sho uld be m ad e th at a po lic y hol de r himsel f ge ts his pr emium pai d.
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FO R ST ATE LI FE INSURANCE CORPOR ATION: T he bills o f ar ea man a ger ge t w as te d. T he n am e "Lif e In sur an ce" is not a ppr opri ate be ca use it do esn' t onl y in clud e lif e buisn ess. T he co r r ect n am e shoul d be " In com e Ins ur anc e". So me de par tm ents h aven' t got pa ds. T hey ar en' t dir ec tl y link ed to z on al h ea d. T he pr obl em cr ea tes w hen z onal h ea d ge ts his ille gal wor ks do ne a nd th er e is n o c hec k a nd b ala nc e the r e. S o e ver y de par tme nt sh ould h ave its o wn p ad t o pr even t this m alfu nc tion. It is t he P akis tan 's bi gges t fin an cial instit utio n bu t till no w i t hasn' t co mple te d its o wn w eb site. So i t shoul d com ple te its w eb site t o ge t pe opl e inf or med abou t its w or ki ng. Adv er tisem en t sho uld be i n thos e ar eas w her e pe opl e know li ttle abo ut SL IC .
FUTU RE P LA NS T he c or por atio n aims a t co nsolid ati ng its buis ness i n fut ur e y ear s. To giv e spe cial a tte nti on t o c hec k in fla tio na r y pr essur es o n e xp ens e par ticul ar ly sala ries, utili ties, c omm uni ca tions et c., by capit
aliz in g on
ne w bu isness gr owt h, imp r ovin g poli cy hol der s ser vice a nd r ed ucin g a voidable e xpe nses.
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106
To id en tify an d utiliz e the r es our ces in r ur al ar eas in or de r to incr ease a nd mobiliz e s avings fr om th ese a r eas. To st r eamline a nd e xp an d tr ainin g f aciliti es. To lay g rea te r str ess o n r eal in vestm en ts i n suitable pr op er ty a nd o r din ar y shar es, t o en sur e be tt er r et ur n t o t he p olic y ho lde r s. To imp r ove o ver seas buis ness by ope nin g br an ches i n Mid dl e- East.
GL OS SAR Y ACT UAR Y:-
Ac tu ar y is a pe r son e mpl oyed by the
insur an ce co mp any w ho cal cu altes risk i
nvolv e in
insur an ce th er ef or e also c alc ula tes th e pr emi um pa yable by ins ur er. ANNUITY :- An an nui ty is a p eri odic p ayme nt m ad e by lif e insur anc e co mpa ny to a n an nui ta nt. T he paym en t is m ade by t he com pa ny i n ret ur n for pr emiu m whic h is p aid ei th er in a
lump o r as a
seri es o f per iodi c paym en ts. BUDGE T:- Es tima te o f f ut ur e e xpe ndi tu r es in r el ati on o f t he inc ome.
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106
CAP IT AL M ARKET :- A ma r ket w he r e y ou ca n bo r row or len d mon ey in lon g ter m b asis. INSURANC E:- I nsur an ce is one of th e d evice by w hi ch ris k may be r ed uc ed o r elimin ated in excha ng e f or p r emium. INSUR ER OR A SSURER:-
T he pa r ty w hi ch p r ote cts
an ot he r a gainst t he va rio us r isks. INSUR ED OF ASSURED:-
T he per son or pa r ty w ho is
saf e gu ar de d a gainst t he r isk in e xcha ng e of pr emiu m. INVE STM ENT :- Assets, ge ne r all y o f a lon g ter m na tu r e, t ha t a r e n ot used in n or mal ope r atio n of a buis ness a nd tha t m an a gm en t does n ot int end t o co nver t t o c ash wi thin t he next y ea r. MONEY M ARKET :- I t is a mar ket w her e y ou can bo r r ow o r len d mo ney in shor t-te r m buisn ess. PRE MIU M:- I t is a pe rio dic paym en t pai d by th e insu r ed t o th e ins ur er a gainst t he risk be ari ng. SA VING:- E xcess o f inco me a gains t expe nses. SA VINGS:- W eal th ga ine d th r oug h sa ving.
SKE TCH OF RE POR T
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Introduction
Bonuses
SWOT Analysis
Insurance Companies Insurance Evaluation Insurance in Pakistan Life Insurance in Pakistan State Life Insurance in Pakistan State Life Insurance in Bwp.
Routine Bonuses Terminal Bonuses Special Bonuses Interim Bonuses
Strengths Weakness Opportunities Threats
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106 Departments
Marketing Products
Agency Department HRD Department New Business Department PHS Department P&GS Department Audit Department B&A Department
01-
Supplementary Contracts
ADB AIB FIB TIR WP SWP
Competitors
Whole
Life ALICO. EFU Assurance. Metropolitan 03Endowment Commercial Postal Life Assurance. Adamjee 04Progressive Premium. 05- Three Payment Plan. Performance Analysis Investment Portfolio 06- Joint Life. Income Analysis Outgo 07- Child Protection. Life Fund 09- Single Premium End. Ratio Analysis
17- Optimal Maturity.
Liquidity Ratio Activity Ratio Profit Ratio Solvency Ratio
18- Rural Life.
Calculation Overtime Persistency Premium Late Fee. Loan Fee.
19- Jeevan Sathi. 36- Shad Abad. 73- Sunehri Policy. 75-
Child
Edu.
&
Marr.(built in) 76- (Non built in). N.D.SCHEME
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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106
Int er nshi p Pr oce du r e Pl an s r.. #
head
points of
concidr ation ho total ur s no of
depar tm ent
hour s 1 Ch. M.Shubbir marketing management stretigies products(plans) supplimentry contracts Mk.channels 2 Mr.Ishfaq Calculations, loan,maturityclaims deathcliams, surrenders survival,altration 3 Mr.Rafiq under writing policy case allotment 4 Mr.Imtiyaz Organizational stucture Histotry and introduction Division Auditing Competetors 5 Mr. Basic training course
DEPARTMENT OF MANAGEMENT SCIENCES IUB
9
Marketin g
7 8 10 10 10 10 10 9 9 10 9 8 7 6
PHS
30 New busniss 19
Auditing
43 HRD
105
106 Hashmi
6 Mr.Tufail
7 Mr.Freed
8 Mr Asad
Bounuses benefits of life insurance Selling process Organizational stucture Mission and objuctives Strategies, agency department head Future plans payroll, reconsilation Comission,disbursment costing policy holders payments basic salary and grading Office transfer.promotions purchasing ,advertizing Distribution,facilitation
8 7 7 6 7 8 9 9 8 10 7 8 10 9 9
35 Agency
24 B&A
42
P&Gs
28
Total # o f hour s = 246 hour s No of days =36(estima ted) No o f w eeks =6 w eeks
DEPARTMENT OF MANAGEMENT SCIENCES IUB
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