STATELIFE

INSURANCE

CORPORATION

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INTERNSHIPREPORTPRESENTED BY:

4TH SEMESTER

UNIVERSITY OF GUJRATpg. 2

ACKNOWLEDGEMENTAll gratefulness and thanks to almighty “ALLAH” the Gracious, The Most merciful and Beneficent who gave me courage to undertake and complete this task. I am very much obliged to my ever caring and loving parents whose prayers have enabled to reach this stage.

I am grateful to almighty ALLAH who made me able to complete the work presented in this report. It is due to HIS unending mercy that this work moved towards success.

I am highly indebted to my UOG management for providing me an opportunity to learn about the insurance system of Pakistan which is vital ingredient of MBA program. I am very great full to officers of STATE LIFE for providing me guideline for the completion of this report.

I feel great pride and pleasure on the accomplishment of this report.

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EXECUTIVE SUMMARYI started my internship in state life insurance corporation of Pakistan at GUJRAT ZONE 22 July 2013.

I worked for six weeks there and it gives me a lot of practical knowledge about the operation of an insurance company .I has learned many things in this duration. In the following pages I have summarized my experience, observations and working activities which I observed in my six week internship. This report will discuss internship with state life .It will outline following.

HistoryDepartmentsSwot analysis

The source of information used during the preparation of this report includes

Personal observationsDiscussions with staff & managementAnnual reportsHandoutsDifferent websites

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Report is based on my personal experience & observations about insurance sector which I gain during my internship in state life.

CONTENTS

Sr. No Description Page No.

1. INTRODUCTION OF STATE LIFE 06

2. History 06

3. Functions 07

4. Achievements 08

5. Core Values 10

6. Organizational Structure 11

7. PRODUCTS 16

8. Individual Life Products 17

9. Group life Insurance Products 25

10. DEPARTMENTS 32

11. FINANCE&ACCOUNTS 34

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12. FMD DEPARTMENT 39

13. P&GS 41

14. AUDIT DEPATMENT 44

15. PH&S 47

16. NEW BUSINESS 50

17. AGENCY 55

18. RECOMMENDATION 59

19. CONCLUSION 59

20. REFERENCES 60

Part: 1

INTRODUCTION OF

STATE LIFE

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BRIEF HISTORYThe Life Insurance Business in Pakistan was nationalized during March 1972. Initially Life Insurance business of 32 Insurance Companies was merged and placed under three Beema Units named “A”, “B” and “C” Beema Units. However, later these Beema Units were merged and effective November 1, 1972 the Management of the Life Insurance Business was consolidated and entrusted to the State Life Insurance Corporation of Pakistan. State Life Insurance Corporation of Pakistan is headed by a Chairman and assisted by the Executive Directors appointed by Federal Government. Up to July 2000 the Corporation was run by Board of Directors constituted under Life Insurance (Nationalization) Order 1972. In July 2000, under Insurance Ordinance 2000, the Federal Government reconstituted the Board of Directors of State Life which runs the affair of this Corporation.

The basic structure of the Corporation for Individual Life Insurance consists of

Four Regional OfficesTwenty-Six Zonal OfficesFew Sub-Zonal Offices111 Sector Offices461 Area Offices

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For Group & Pension there are

Four Zonal Offices6 Sector Offices20 Sector Heads

FUNCTIONS PERFORMED BY OFFICES

Zonal Offices:The Zonal Offices deal exclusively with Sales and Marketing Underwriting of Life Insurance Policies and the Policyholder’s Services

Regional Offices:Regional Offices, each headed by a Regional Chief, supervise business activities of the Zones functioning under them.

Principal Office:The principal office, based at Karachi, is responsible for corporate activities such as investment, real estate, actuarial, overseas operation, etc.

MAJOR ACHIEVEMENTSThe major function of the State Life Insurance Corporation of Pakistan is to carry out Life Insurance Business; however, it is also involved in the other related business activities such as

Investment of policyholders’ fund in Government securitiesStock marketReal Estate

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The major achievements of State Life are as under:

1. The Corporation has reduced up to33% in the premiums on the past and potential Life Policies for the benefit of the Policyholders.

2. It is a profitable organization and it paid Rs.2.657 billion as dividend to the Government of Pakistan since its inception in 1972.

3. State Life has played very vital role in the economy by providing employment to the people of the country

As permanent employeesAs part of its marketing forceInvesting the huge funds in different sectors of the economy.

4. . The Investment Portfolio of State Life as at 31.12.2010 stands at Rs.191.445 billions.

5. Investment portfolio also includes investment in Real Estate which stands at

Book value Rs.2.538 billion as at 31.12.20106. Whereas

Fair value is Rs.21.681 billion as at 31.12.20107. The Paid up Capital increased from Rs.10 million in 1972 to Rs.1,

100 million in 2010. 8. The Premium income increased from Rs.0.317 billion in 1972 to

28.367billion in 2010.9. Similarly Investment income including rental income increased from

Rs.0.81 billion in 1972 to 274.152 billion in 2010.10. Total statutory fund of State Life stands at Rs.199.445 billion in

2010 as against Rs.1.494 billion in 1972. 11. State Life is smoothly striving towards its objective of making

life insurance available to large section of the society by extending it to common man.

As at December, 2010 the total number of policies in force

Under individual life 2.895 million

Under group life insurance 3.754 million

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CHRONOLOGY OF EVENTSTaking over of management of life insurance companies 19 March 1972

Establishment of state life insurance corporation 1st Nov, 1972

Reduction of premium rates on new policies 1st Nov, 1972

Reduction of premium rates on old policies 1st Jan, 1973

Establishment of UK branch 1st Jan, 1974

Merger of units and formation of zones 1st Oct, 1975

Establishment of branch office in Dubai July 1978

Establishment of agency office in Kuwait May, 1983

Establishment of Multan zone 1st Oct, 1985

Establishment of Faisalabad zone 1st march, 1986

Establishment of Gujranwala zone 1st July 1986

Establishment of Sucker zone 1st April, 1990

Establishment of branch office in Pakistan May, 1992

CORE VALUES

MISSION:“To remain the leading insurer in the country by extending the benefits of insurance to all sections of society and meeting our commitments to our policy holders and the nation.”

QUALITY POLICY:

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To ensure satisfaction of our valued policyholders in processing new business, providing after sales service and optimizing return on Life Fund through a quality culture and to maintain ourselves leading life insurer in Pakistan

OBJECTIVES:To run life insurance business on sound line. To run life insurance business on sound line. To provide more efficient service to the policyholders. To maximize the return to the policyholders by 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 of operation of life insurance and making it available to as large a section of the population as possible, extending it from the comparatively more affluent sections of society to the common man in towns and villages. To use the policyholders fund in the wider interest of the community.

ORGANIZATIONAL STRUCTUREIt is headed by chairman Mr. Shahid Aziz Siddiqi who is a CHIEF EXECUTIVE of the corporation and appointed by the government the other administrative level and authorities is given below

MANAGEMENT HIERARCHY:

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CHAIRMAN

EXECUTIVEDIRECTOR

DIVISIONAL HEADS

REGIONAL HEADS

ZONAL HEADS

DEPARTMENTAL HEADS

ORGANOGRAM:

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CHAIRMAN

EXECUTIOVE DIRECTOR

DIVISONAL HEAD

ZONAL HEAD

DEPUTY GENERAL MANAGER

ASST GENERAL MANAGER MANAGER

DEPUTY MANAGER ASST MANAGER

EXECUTIVE OFFICER

ASST SUPERINTENDENT

OFFICE ASST

RECORD

NAB QUASID

QUASID

SUPERINTENDENT

SENIOR OFFICE ASST

Board of Directors:It comprises of 7 directors, chairman and secretary board who are responsible for making plans and policies to achieve the set goals of the organization. Mr. Shahid Aziz Siddiqi CHAIRMANMr. Qamar Zaman Chaudhry DIRECTORMrs. Spenta Kandawalla DIRECTORMr. Aslam Faruque DIRECTORMr. Amin Qasim Dada DIRECTORMr. Rasheed Y.Chinoy DIRECTORSyed A. Wahab Mehdi DIRECTORSyed Hur Riahi Gardezi DIRECTORMr. Akbar Ali Hussain SECRETARY BOARD

Executive Directors: It comprises of 4 members responsible for implementation of policies and directives of the board of directors. Syed Arshad AliMs. Nargis GhalooMr. Mohammad YahyaMr. Allah Rakha Aasi

Regions:There are 4 regions in Pakistan headed by regional chiefs responsible for looking after all the zones under his administration. These regions are;

Southern Region Central Region Multan Region North Region

Zones:There are 26 zones in Pakistan headed by the zonal head responsible for procurement of business to achieve the set business target of the organization. The basic structure of the Corporation consists of: Four Regional Offices,Twenty-Six Zonal Offices,

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A few Sub-Zonal Offices, 111 Sector Offices, A network of 461 Area Offices across the country for Individual Life Insurance; Four Zonal Offices, 6 Sector Offices with 20 Sector Heads for Group & Pension are involved in the Marketing of Life Insurance Plans policies and products offered by State Life and a Principal Office. The Zonal Offices deal exclusively with Sales and Marketing. Underwriting of Life Insurance Policies and the Policyholder’s Services. Regional Offices, each headed by a Regional Chief, supervise business activities of the Zones functioning under them. The Principal Office, based at Karachi, is responsible for corporate activities such as investment, real estate, actuarial, overseas operations, etc.

Karachi (Southern) Zone Karachi (Central) Zone Karachi (Eastern) Zone Hyderabad Zone Quetta Zone Sukkur Zone Mirpurkhas Zone Larkana Zone Lahore Central Zone Lahore Western Zone Gujranwala Zone Faisalabad Zone Sargodha Zone Sialkot Zone Multan Zone Sahiwal Zone RahimYar Khan Zone Dera Ghazi Khan Zone Bahawalpur Zone Peshawar Zone Rawalpindi Zone Abbottabad Zone Gujrat Zone Islamabad Zone Mirpur (AK) Zone Swat Zone

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Group and Pension:There are 4 zonal offices of Group &Pension and under these zones there are many sector offices;

Group and Pension Rawalpindi Zone Group and Pension Peshawer Zone Group and Pension Karachi Zone Group and Pension Lahore Zone

PRODUCTSpg. 16

As we know that SLIC has dominated life insurance market and it acquires about 90% market share of life insurance. So it has introduced a great number of products and it is offering products appropriate for every inhabitant of Pakistan

SLIC offers different products for Individual life

Group life insurance

INDIVIDUAL LIFE PRODUCTS

Whole Life Assurance:

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It is a unique combination of protection and savings at a very economical premium. Death at any time before age 85 years terminates payment of premiums and the sum insured and attached bonuses become payable. In the event the insured survives to the policy anniversary at age 85 years, the policy matures and the sum insured plus bonuses become payable. Under this plan the rates of bonuses are usually much higher than the other plans and they help in increasing not only protection but also the investment element of the policy substantially. This plan is best suited for youngsters who have at initial stages of their careers and cannot afford to pay high premiums. Individuals who anticipate requirement of a lump sum in far future can also this plan

Endowment Assurance:It’s a safest and surest method of guaranteed cash provision either at a specified time or at death (Allah forbid). Under these policies, the sum insured plus bonuses are payable at the end of the specified number of years or at death of the life insured if earlier. Premiums are payable for the specified number of years or till death, if earlier. The benefits under the plan can be further increased by attaching supplementary covers. The plan serves the requirements of a family in various shapes by way of financial help at retirement, education of children or provision of capital for business.

Anticipated Endowment Assurance:This is a modified form of endowment assurance and is also called ‘Three Payment Plan’. Besides fulfilling the long-term financial needs, it also helps in meeting the short-term financial exigencies. As the name suggests, the plan offers three payments throughout term of the policy. The plan offers survival benefits equal to 25% of sum insured on completion of 1/3rd and 2/3rd term of the policy. If the policyholder does not withdraw the survival benefits, a very attractive special reversionary bonus is available. On completion of term of the policy, the remaining 50% sum insured plus accrued bonuses shall be payable. If the life insured expires during term of the policy, sum insured, accrued bonuses, unclaimed survival benefits and special reversionary bonuses are payable. The plan is suitable for the individuals who have long-term financial needs but also anticipate requirement of money relatively earlier. Three Payment Plans helps fulfilling these short-term financial needs without terminating the actual contract.

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Sadabahar Plan:Sadabahar is an anticipated endowment type with-profit plan that provides lump sum benefit at certain stages during the premium-paying term or on earlier death. In addition, this plan has a built-in Accidental Death Benefit (ADB) rider so that the policyholder gets an additional sum assured in case of death due to an accident. This plan is a safe instrument for cash provision at the time of need. With this plan, the policyholder can secure greater protection and continued prosperity for the family at affordable cost affordable cost.

Admissible Ages and Terms this plan is available to all members of the general public, aged from 20 to 60 years nearest birthday. Both males and females may purchase this plan. Terms offered under this plan are 12, 15, 18, 21, 24, 27 and 30 years.

Survival Benefits:

On completion of one-third of the policy term, 20% of basic sum assured can be taken by the policyholder. Another 20% of the sum assured can be taken on completion of two-third of the policy term and the remaining 60% of basic sum assured plus accrued bonuses (if any) shall be payable at the end of the policy term in the event of survival of the assured.

1. If the option to withdraw an installment of 20% sum assured is not exercised on the due date or within 6 months after the due date, a special bonus will automatically be added to the policy at the end of 6 months. In this event:

2. On death of the assured while the policy is in force, the special bonus will be payable in addition to (1) Basic Sum Assured (2)

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Other Reversionary Bonuses accrued on the policy and (3) the amount of any installment left with State Life.

3. On the maturity date, the special bonus will be payable together with all the installments of the sum assured remaining with State Life, in addition to regular reversionary bonuses accrued on the policy.

4. So long as the policy remains in force, the policyholder may surrender the unclaimed installment of sum assured together with the related special bonus. The aggregate cash surrender value of the two shall not be less than the amount of the said unclaimed installment.

5. The reversionary bonuses as per usual practice will continue to be allotted each year on the basic sum assured (if in force) as and when Actuarial Surplus is declared. However the unclaimed installments of the sum assured and related special bonus will not participate in State Life’s Actuarial Surplus.

Death Benefits:

The full basic sum insured plus accrued bonuses are payable on death of insured any time while the policy is in force. In addition, if death occurs as a result of an accident, additional amount equal to one basic sum assured, subject to maximum limit, will be paid. The usual maximum on the ADB of Rs. 4 million will apply and premium will be calculated accordingly

Bonuses:

This policy will participate in State Life’s surplus. Rates of bonus applicable will be 25% higher than those on anticipated endowment plan.Under endowment insurance these plans are available.

Shad Abad Assurance:Shad Abad Plan is an extended form of endowment assurance. The benefits under the policy increase manifold in the event of death of the life insured.

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On completion of term of policy, sum insured plus bonuses attached to the policy are payable. However, on death during the policy term, the death benefit consists of double of sum insured with accrued bonuses. In case of death due to accident, the death benefit consists of four times the sum insured plus bonuses. The coverage can be further widened by attaching supplementary covers with the policy. This plan meets the requirements of those who appreciate the basic savings purpose of endowment assurance but also like some additional cover to protect loved ones in case they die, Allah forbid, before maturity.

Child Education & Marriage Assurance:Child Education & Marriage Assurance is a plan for the protection of child’s future. It provides a lump sum benefit for the child at the completion of the policy term. On completion of term of the policy, full sum insured together with the accrued bonuses become payable to the policyholder. If the policyholder dies (Allah forbid) before completion of the term, a family income benefit of Rs 240 per 1000 sum insured per annum is paid to the child until the completion of policy term. Further, future premiums under the policy are waived and policy remains in force with full sum insured and continues to participate in State Life’s surplus and receive bonuses. Upon the completion of policy term, the child gets two options of either getting the proceeds in a lump sum or in five equal installments.

i. Continue the policy in the same manner as earlier by switching the plan for the benefit of another child.

ii. Get a refund of all the previous premiums paid till the death of the child or the cash value of the policy, whichever is higher and terminate the contract.

iii. Continue the policy without naming another child in which case the benefit of Refund of Premium [as provided above under condition (b)] will not be available. Child Education & Marriage Plan is suited for the parents who are conscious about the future of their children. The term of the plan is such that the lump sum benefit becomes payable when the child attains a predetermined age of 18, 21 or 25 years. These ages may be selected considering the occasion at which children generally need financial assistance for higher education, marriage, or setting up business. Depending upon your individual needs, the plan is available in two separate versions of with and without built-in family income benefit. In

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addition to parent, this plan can also be affected by grandparents, uncles, aunts or any other person who is paying for the maintenance of the child

JeevanSathi Assurance:This is a joint life plan and covers lives of two partners say husband and wife simultaneously. Premiums are payable till the end of the specified term or till death of either of the insured persons, if earlier. The plan contains extensive benefits; an overview of which appears as under:On the death of the first life, the sum insured will be paid to the survivor. Further premiums under the policy will be waived, but the insurance protection of the second life will continue. Also, the policy will continue to participate in profits of the Corporation. On death of the second life, again the sum insured will be paid together with the attaching bonuses. In this event the policy will terminate.If the second life survives the term of the policy, he or she will be paid sum insured together with the attached bonuses, even though the sum insured has been paid once, on the death of the first life. If both the lives survive the term of the policy, the sum insured will be paid to them jointly, only once, together with the attached bonuses. Different supplementary covers are also available for increasing coverage under the policy.

Child Protection Assurance:This is a joint life assurance and covers the lives of child and either of the parents. If the policyholder and the child both survive full term of the policy, sum insured and accrued bonuses become payable. If the policyholder dies before completion of term of the policy the payment of premiums ceases

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and the child is paid an income of Rs 100/- per thousand sum insured per annum till the completion of the policy term. On completion of policy term, sum insured inclusive of bonuses accrued till the death of the policyholder is paid to the child. If the child dies (Allah forbid) before maturity of the policy and during lifetime of the policyholder, the death claim payable to the policyholder depends on the age at death of the child. As the name suggests, the plan is suitable for parents who want to cater future financial needs of their children in case of death of the breadwinner of the family. The plan has a unique feature of providing coverage on the life of child. The coverage of the policy can further be widened by attaching supplementary covers.

Sunehri Policy:Sunehri Policy is an innovative life insurance product. It is flexible, secure and meets the challenges of inflation quite economically. Under a special feature of this plan, from third policy year onwards, sum insured under the policy and premium will increase by 6% per annum without providing any evidence of insurability. From the third policy year onward, the policyholder is provided with a statement showing the buildup of cash value of the policy and sum insured for the year. The policy also participates in the surplus of State Life and currently the rate of bonus is Rs 105 per thousand per annum of the adjusted opening cash value.

Optional Maturity Endowment:

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It is an endowment assurance with a built in option to mature early. The plan is available for individuals aged 20 to 45 years. The policyholder has following options regarding maturity of this plan.

After the policy has been in force for 20 years or more, the policyholder gets an option to mature the policy for a proportionately reduced sum insured. After the policy has been in force for 20 years or more, the policyholder, depending on his or her needs, can mature the policy in parts. Let the policy mature at originally selected term. In this case the policyholder gets an additional bonus.

The policy participates in bonuses declared by State Life from time to time. Please click here for details of bonuses currently available for this plan. Coverage under the policy can also be enhanced by attaching supplementary covers.

Nigehban Plan:This plan provides term insurance cover for a period ranging from 5 to 10 years.

As the name suggests, this plan is meant to provide protection during the term of the policy only i.e. sum insured is payable on death if it occurs during the term of insurance while the policy is in force. The plan does not carry any survival benefits, maturity benefits, surrender values, loan values etc. The policies will be without profits. The plan is available in two versions namely, with single premium and with annual premiums. Attaching certain supplementary covers can widen the coverage under the plan.

MuhafazPlus Assurance:Muhafaz Plus provides a substantial sum of money on maturity or earlier death (Allah forbid) of the life insured. On maturity, the policyholder will receive sum insured plus bonuses attached with the policy.

However if the life insured dies before completion of term of the policy, basic sum insured plus attached bonuses will be paid to the dependants immediately. In case of death due to accident, the double of the sum insured is paid. In addition, the dependents will also be paid an income of Rs 240 per thousand sum insured per annum for a fixed period of 15 years.

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The first payment will fall due on the policy anniversary immediately after the death of the life insured.

SHEHNAI POLICY:

Features:

Shehnai Policy is an innovative life insurance product. It provides a solution to the problems of many concerned parents who want to save now in order to provide for their children’s higher education, marriage and other expenses when the need arises. The term of the plan is such that the lump sum benefit becomes payable as the child attains the age of 25 years. Shehnai Policy also caters from the ravages of inflation. This is done by the option of automatic increase of 6% per annum in sum insured and premium from third policy year onward. From the fourth policy year onward, the policyholder is provided with a statement showing the buildup of cash value of the policy and sum insured for the year. The policy also participates in the surplus of State Life and currently the rate of bonus is Rs 105 per thousand per annum of the adjusted opening cash value

Maturity Benefit:

The policy matures when the child attains age 25 years. At maturity the cash value of the policy is paid to the child. The cash value includes all the bonuses attached with the policy.

Death Benefit:

If the life insured dies during term of the policy, premium payments stop and the sum insured applicable to the policy year of death is deferred to be payable when the child attains age of 25. At the time of death of the life insured, the said sum insured is added to the „adjusted opening cash value‟ to be called the „enhanced cash value‟ and participates in State Life’s surplus until it is paid out to the child when he or she attains the age of 25

Years. The child will have an option of either collecting the benefit in a lump Sum or in five equal annual installments.

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GROUP LIFE INSURANCE PRODUCTSThese includes

Term Insurance SchemeHouse Building & perquisites Insurance SchemePay Continuation SchemeGroup Endowment Insurance SchemeGroup Pension Scheme

Term Insurance Scheme:

Group Term Insurance Plan provides life insurance coverage to the member of a group, such as the employees of an employer. The amount of coverage of each member is determined with reference to either his designation or salary or employment category or some other similar variable.

This plan provides insurance protection to the members of a group at a very affordable minimum possible cost, 24 hours coverage around the world.

By promoting a sense of financial security amongst the employees it contributes to improving the working environment for the employer resulting in higher productivity.

In most cases the employer is legally obliged to provide insurance cover to his employees. This plan helps the employer to fulfill this requirement.

Premiums are tax-deductible for the employer. Total premium under group term insurance is lower as compared to sum of premium of all policies if issued individually to each life, due to savings in expenses.

On death of any insured member the sum assured on his life is paid for the benefit of his surviving family. This benefit is payable regardless of the total number of the deaths even if the total amount paid out exceeds the total premiums received under the policy.

However, if in any three-year period State Life earns a net profit on any policy, then some share in the profit is passed on to the policyholder, depending upon the total number of members in the

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scheme. This share can go up to 90% in case of large sized schemes.

The supplementary contracts or riders which can be attached with this scheme are:

PTD (Accident) Rider:

Under this rider the insured member is entitled to payment of the sum assured in case of any accident causing permanent and total disability, which includes loss of two limbs or two eyes or loss of hearing in both ears or severe facial disfigurement. If the disability is permanent but not total then some percentage of the sum assured is payable depending upon the severity of the disability. In this regards the same schedule of disabilities is applicable as is prescribed under the labor laws. In case of a temporary accidental disability causing absence from work a fortnightly benefit calculated at the rate of Rs. 3,000 per month or the monthly salary whichever is less is payable.

A.D.B. Rider:

Under this rider the death benefit of an insured member is doubled if the death was caused by an accident.

Natural Disability Rider:

Under this Rider if an, insured member is rendered incapable of pursuing any occupation or vocation for gainful employment due to permanent disability caused by disease or sickness then he is entitled to the sum assured as benefit.

Critical Illness Rider:

If an employee contracts any of the following critical illnesses while insured under this rider then he is entitled to the rider sum assured as benefit. Covered critical illnesses include.

Heart attack Coronary Artery by-pass surgery Stroke Cancer Kidney Failure Major organ transplant such as heart, kidney or liver

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The insured member must survive for at least 31 days after contracting the illness to become eligible for his benefit. Some restrictions apply during the first two years of coverage.

Suitable For:

The plan is suitable for employers who desire to provide financial security to their employees by means of insurance coverage or for members of a professional body or association or some welfare association or a social club who desire to avail insurance protection on their life.

House building & Perquisites Insurance Scheme:Under this plan each member of the group is insured for the total amount of loan outstanding against him inclusive of accumulated interest. The amount of Insurance is the actual amount of loan outstanding on the date of death whereas the premium is charged on the average loan outstanding over the whole policy year.

It provides financial security to employers and financial institutions against the risk of untimely death of any of their indebted employee or client. Very often the family of the deceased person is not is a position to repay the loans taken out by him, especially if the deceased person was the sole breadwinning member of the family. In such a case the insurance coverage provides an assurance to the creditor that he would be able to recover his capital without causing hardship to the distressed family.The creditor is also protected from the headache of constantly monitoring cases of delayed repayments of loan in hardship cases caused by unforeseen death of a bread winning family member. The premium due under this policy may be recovered by the creditor from the borrowers along with the loan repayment installments.

Benefits:

Benefits of this plan are

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In case of death of an insured member of the scheme the total amount of the loan outstanding against him including accumulated interest is payable to the policyholder. In case State Life earns a profit on any policy during a 3-year period, the policyholder is also entitled to some share in the profits depending upon the size of the group.Riders or supplementary contract that can be attach with this plan isPTD (Accident) and NDB rider may be attached with this plan. These riders provide insurance cover against permanent disability due to accidental and natural causes rendering the insured member unable to earn a livelihood for himself and his family.In such a case the attaching riders can facilitate the creditor in recovering the outstanding amount of loan.This plan is suitable for employers who have a scheme for providing loans to their employees for house building, purchases of conveyance or any other goods of household use. It is also suitable for banks that are in the business of granting loans to their clients for purchase of house or conveyance or for some business venture. Similarly leasing companies and other financial institutions with similar facility may find this plan quite attractive.

Pay Continuation Scheme:1. Manpower is still considered as one of the most important elements

of productions in spite of the dramatic growth of microchip based automation in all walks of life, especially in commerce and industry. The overall efficiency of an organization therefore depends upon the quality of the manpower of its employees. The more devoted, hardworking and loyal the employees the higher the reward to the employer in the form of greater efficiency and profitability. Quality manpower can be attracted by offering a good employee benefits package based on ensuring security and peace of mind of the workforce so that a greater commitment is obtained from them. This is why the enlightened employer pays particular attention to the welfare and well being of their workforce through various employee benefits scheme.

2. One of the functions of such schemes is to provide protection to the employee’s dependants in the event of his death. Progressive employers do provide group insurance which pays a lump sum to the dependants. This however does not last long. What is required in

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addition is a regular monthly income for a period of time. To meet this Requirement State Life proudly presents a plan, which offers invaluable protection to the employee’s family during his working life. The family’s regular monthly income is protected for 15 years or until age 60 whichever is earlier. In this way coverage is provided for pay upon the death of the employee. This is illustrated by the following example:

a. If death takes place at age 35 then the benefit payable will be 2,000/- per month for a period of 15 years. Total amount payable Rs. 3,60,000/-

3. Annual premiums will be calculated on the basis of the employee’s pay and his age and will be payable at the beginning of each scheme year. If this policy qualify for profit commission it will be payable in accordance with the rules at the end of 3 years.

4. “Cover without medical evidence” is allowed on the same basis as group term with the monthly benefits being converted into a lump sum equivalent. The total of the benefits so arrived at should, however not the maximum allowable under the policy exceed.

Group Endowment Insurance Scheme:Group Endowment Scheme is a unique saving and protection scheme through which the employees of an employer can enjoy insurance protection throughout their service and also get a lump sum cash amount upon their retirement if they survive up to retirement.

In Pakistan most employers do not operate any pension scheme for their employees although some employers may have a provident fund scheme or a gratuity scheme. The expected benefits at retirement under a typical provident fund scheme and gratuity scheme combined are woefully inadequate for a retiring employee for maintaining his standard of living after retirement unless he supplements these benefits with his own personal savings. Keeping this in view some employers may wish to encourage a habit of saving amongst their employees for their own welfare. Group Endowment Insurance Scheme can be a means of introducing a compulsory saving scheme for the employees under the sponsorship of the employer. Participation in the scheme is usually compulsory. However, if

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participation in the scheme is voluntary, at least 75% of eligible employees must participate.

Benefits:

Under this scheme each employee is provided insurance protection for an amount which may be flat or depends upon the designation or salary of the employee. The amount of insurance is payable on maturity or death if it occurs earlier. In most cases the term of the endowment insurance for each employee is determined in such a way that the policy matures at or near his retirement date.

This enables the maturity proceeds to coincide with retirement and supplement the retirement benefits.

Profit Participation:

The endowment insurance is issued on a with profits basis. The same bonus rate is applicable as for the corresponding individual endowment insurance policies.

Premium Rates

The same premium rates are applicable as for individual endowment policy but with the added attraction that in group form some volume discounts are also applicable depending upon the size of the annual premium.

Surrender Value

The policy acquires Surrender Value in respect of a member after insurance cover has been in force for at least two years on that member and no premiums are in default.

Loan Facility

Under this scheme if the member needs immediate liquidity and a policy has acquired Surrender Value in respect of member, he/she can avail a maximum loan of 80% of the net surrender value of the policy.

Continuation Privileges :

If an employee leaves the service of the employer, he can surrender his policy against the Net Surrender Value. He is also provided with the option of continuing his endowment insurance coverage in an individual capacity

pg. 31

without any evidence of good health, for the same sum assured and term as he was enjoying during his service. The premium rates applicable to the policy are the same as are generally applicable to the same class of business in and individual capacity.

The ADB, PTD (Accident) and NDB can be added to this policy if desired.

Suitable For:

This plan is suitable for employers who desire to inculcate a habit of saving amongst their employees in addition to providing them insurance against premature death.

Part: 2

pg. 32

INTRODUCTION OF

STATE LIFE

INTERNEE WORK

Work done by mepg. 33

Weekly time table: Monday to Friday 09:00am to 05:00pm

Saturday to Sunday SLIC are closed

Introduction:I done my six week internship in state life insurance Pakistan in G.T Road Gujrat. My internship duration is ………to………. First three weeks I perform my duties in Personnel & General Service Department, Audit Department, Finance &Accounting Department and last three week I done my work in Policyholder Service DepartmentNew,Business Department,Agency Department.All the staff of company support me i learned many things in this six week internship duration.

SLIC has following departments which performs the different functions of SLIC. These departments are;

Personnel&General Service Department

Audit Department

Finance &Accounting Department

Policyholder Service Department

New Business Department

Agency Department

F M D DepartmentFirst three week

First three weeks I learn these things explained below:

pg. 34

FINANCIAL AND ACCOUNT DEPARTMENT In the area of finance and account department, l done my work in this department of three weeks. l went to sir lrfan sahib who was head of the finance and account department. First of all he told me about cheque issuance. How a cheque issue? There are four types.

1. Loan cheque 2. Maturity cheque3. Claim cheque4. Surrender cheque

Loan cheque:

Loan cheque are those cheques that are issued to the policy holders. In this if there are 3ooooo rupees that exist in our company. So it is our policy to offer the loan to policy holder less than 300000. We do not concern his monthly installment if it is 30000 or 20000 etc.

Maturity cheque:

Maturity cheques are those cheques whose are issued after completion of the agreement.

Claim cheques:

Claim cheque in those cheques that are issued after the inquiry of the policy holder that how the policy holder dead and why it did? It issued to those people who are the eligible and heritage holder of the cash etc.

Surrender cheques:

Surrender cheques are those cheques which are issued to policy holder when he disappointed due to any reason. May be unemployment or inflation he went to restrict to join the policy as per agreement so he

pg. 35

request to company that stop my policy and return me my amount that you have.

Vouchering Record:

The working of vouchering record, l done my working of this area only three days. The record vouchering is maintained in a proper register and four types of the cheques. How to make a voucher, the name of policy holder, address, amount of policy and cheques issuance record etc.

Data entry in computer:

I done the working in data entry in computer only 3 days. The policy holder and their cheques record maintain on it. L take help form senior head that name was syed haider ali shah. In this I learn how a debit and credit amount record and their policy record etc. ln debit we record the amount of the policy holder that he withdraw his amount. For example zakat , late fees, loan cheques etc.

In the credit we record the amount of the policy holder that he deposit in the company.

The software that a company of state life insurance corporation of Pakistan used, it is older and not satisfactory. It should be modern because often time the data entry problems exist and not favorable for employee and customer disappointed.

Strik in state life insurance corporation of Pakistan:

One week strike of the insurance company due to bounces of eid. And it did in the month of ramzan. Due to this all working activity were shut down and customer are dishoard and disappointed. The customer cheques block and customer got no loan from the company.

I observe that the unity exist in the company. It is very good thing to achieve all the activity and improvement. It done through minister and they accept the bonuses give to the employee of the company. Because the company of the government and so do to it.

Bank reconciliation statement:

pg. 36

The head of department told me that you done other work in this area the one week. And they refer to the sir asad that was deputy manager of the accounting and finance department.

First of all amount statement of company and the statement of the bank check that and tell that the balance of both statement are equally and balanced. If there was problem in cheques stopper payment and other issues toward the statement.

I do the work of tell the bank reconciliation statement in two days. After the work of it. I found that there are two to three things are incorrectly typed by the bank and told to head of the department. In the working my boss appreciate me on my well working.

Un presented cheque statement:

The head of the department told me that why the cheques were unpresented and when. I observe that there are following reasons of the unpresented cheques due to time, incorrect name and address etc.

After the unpresented cheque, the cheques return to policy holder and or company. The company after this un presented, the issuance of cheques are reissue and do work on to present the cheques,

Maintains the records of cash transactions.

Prepares payroll for the regular employees

Takes care of the fringe benefit (medical facilities)

Commission paid to SR, SO and SM are also calculated and paid through this department.

keep the corporation on financial track balance sheets and income statement also prepared on annually, monthly and weekly basis. The principal office sends annual budget to the department and department is responsible for proper utilization of cash disbursements. The department also send budget forecast for new budget proposal.

This department consists of following section:

Commission

pg. 37

Salary

Disbursement

Loan

Cash counter

COMMISSION:

Commission department facilitates the field force by offering commission and due bonuses .The department is directed to calculate and analyze the earning of last year, providing advances and loans to field force and offer other fringe benefits to motivates the field force.

Commission is only give to commission based persons who are SM, SO AND SR.

Commission is calculated from the premium after subtracting the tax. Then check that SM not takes any advanced loan and any claim from zonal, regional.

Structure of commission:

First year premium QUARTER BONUSSR-------- 35% 2.5%SO------- 15% 2.5%SM------ 8% 2%

Persistency bonus:

It gives on the persistency of the last year business.

pg. 38

On 80% business the commission is 1.1 percent. On 81, it is 1.2 and onward.

Second year premium

SR 10%SO 2%SM 1%THIRD YEAR PREMIUM

SR 5%SO 1%SM 0.5%

SALARY & LOAN:

According to their category the benefits, funds and salary are gives to employees. Application and salary form are filled here related their category and then according to that make the voucher slip and passed by the officer.

CASH COUNTER:

In cash counter premium and loan amount is submitted .There is two accounts for policy holders.

First year accounting. 1173 A/C

Renewal A/C

1089 A/C is account no of renewal account.

pg. 39

Collection is done in two ways:

Cash

Cheque

FMD department(field man power development): I done the working in the f m d department of 4 days. The department do with for new employee or their old employee for promotion the company do for them.

When l went to their department. I saw that their was same as in our class and same environment as well as same in our class same in university.

The department head qaiser nawaz take class of sale represent. The companies of insurance life hold their own company book. They define 75 tables that describe the child education and marriage. I took two classes that timing 9:00 am to 12.

They told that how a department work and do their jobs. Their under 3 employees. We done the 3 type of course as follow.

1. Foundation advance course 2. Per motive management orientation course3. Marketing management skill course

Foundation advance course

pg. 40

This course done for new sale representers. In which new skill promote and attractive information given to them. In their course the head of course adios told them about marketing, history of company, assets of the company, product of company and information of all the department.

Promotive management oriented

This course done by sales officers and done in five days and after five days exams will be conducted. In this course, the course advisors told and reach the about recruitment, selection, supervision and training etc.

Marketing management skill

It had done the course for sale managers to area managers. It describes to 15 days course. In which, marketing, selection, supervision and training the working of the company.

During my internship the paper of foundation advance are conducted. It is held on Friday and two hours duration and paper exist on book of the insurance co. the first position holder take advantage of the trophy and prize.

pg. 41

PERSONNEL & GENERAL SERVICE DEPARTMENT:There are two functions:

Personnel management

General services

FUNCTIONS:

Personal Management

Personnel policies, motivation, incentive and implementation of service regulations

Office management development

Personnel management

General Services:

Procurement

Purchase of goods and services Uniforms Communication Other services

Maintenance

Office machines & equipment Furniture & fixture Transport & conveyance Receipt and dispatch Assets register

pg. 42

Service e.g canteen security and cleanliness

SECTIONS:

Personnel Section:

All the employees engagement, promotion, demotion, shift and allowances are dealt by personnel section. yearly classified reports- ACR the employees are set up, under the control of this section, by the departmental heads.

For the appointment of the staff, an advertisement is initiated in the newspaper. Zonal head is competent authority for this appointment.

For promotion of the employees ACR’S are necessary

Minimum three years are required to remain in one cadre

Each employee is promoted by the criteria

These instructions set by principal office

Regional office does promotion of officers.

In Lahore 362 office employees, 9 sector head and 43 area managers

Sub Sections:

1. Medical Section:

Medical expenses are beard by SLIC provided that these are incurred in approved hospital.

pg. 43

The reimbursement of medicine is not allowed to staff (having grade 1 to 8) but they are given Rs 1500 per month in shape of salary as medicine allowance.

2. Leave Section:

There are two types of casual leaves:

Casual leave Medical leave

18 days casual leaves are allowed to all employees in a year .The medical leave or application leave is allowed for 48 days in a year .

3. Rent Section:

When sale manager is promote to area manager he is categorized as A, B, C, and he is unrestricted to his own office at his own choice at the expenses of state life .a good location is selected by AM. After selection of place, zonal head is informed about the location, by application written by AM. This application is transfer to P&GS department for the analysis of location of the office. This location is analyzed by zonal rent committee (ZRC).

A lease agreement is made with the landlord after analyzing the approved map for the location and property registration form.

4. Stationary Section:

This section maintain the record of stationary such as paper, pencil, envelops printed letters, forms, calculators, etc .when ever any department requires the stationary ,the concerned department fills a requisition slip. The stationary is issued to concerned department and is recorded in the register.

5. Capital Section:

This section is responsible for purchase, sale and maintenance of furniture & fixture; equipment etc .a zonal procurement committee is constituted for purchase of assets. The assets are purchased from suitable supplier after critically analyzed the quotation offered by different venders.

6. Daily Attendance:

pg. 44

All the employees of Group and pension call their attendance before starting their duty. If any employee is not at time than he will call late attendance and three late attendances will be considered a casual leave.

7. Record of Employees:

There is complete record of employees who are at work or have retired. And all necessary data is maintained about every employee as date of appointment, date of retirement, promotions, medical services and all other data.

AUDIT DEPARTMENTit is a internal audit transaction system which base on daily work. Management is responsible for ensuring that proper accounting records are kept and its assets are safeguard. The whole system is relay on production of reliable management information and the financial accounts , and to prevent errors, fraud and loss of assets. Actually internal audit is a essential part of internal control.

Internal Control:

The internal control goes beyond financial and accounting matters and the custody of organization assets to include controls designed to improve operational efficiency and adherence to organization policies.

Objects of Internal Audit:

pg. 45

This is an independent appraisal function. Internal audit is to assist member of the organization is effective discharge of their responsibilities. To this end internal auditing furnishing those with analyses, appraisal, recommendations, counsel, and information concerning the activities are viewed.

Internal auditor should:

Review the system to ensure compliance with those policies, plans, procedures, laws and regulations which could have a significant impact on operations and report

Review the means of safeguard assets and as appropriate verify the existence of such assets

Appraise the economy and efficiency with which resources are employed.

Internal auditor should be independent of the activities they audit Internal auditors are independent when they can carry out their work freely and objectively.

TYPES OF INTERNAL AUDIT:

Pre- audit(Audit before making payment )

Post- audit:(Audit after making payment is e.g groups and pension)

External-audit(Audit which is done through external parties like chartered firms, GOVT organization audit)

Objectives of Internal Accounting Controls:

pg. 46

SLIC receives and enters its accounting records, all the income and revenue to which it is entitled.

Expenditure is properly authorized.

Assets are properly recorded and safeguard.

Liabilities are properly recorded and provision is made for known or expected losses.

Accounting records provide a reliable basis for the preparation of accounts.

Internal Audit Role in State Life:

Right information is one of the essential factors in the process of decision making. In the absence of accurate and dependable information management, board of directors are unable to make policy and management decisions. In state life some items are subject to pre-audit while some are subject to post-audit.

List of payment subject to post audit:

Payment and vouchers of salaries, except Dec, Jan do changes

Every month fixed overtime to staff

Entertainment to officers for sitting late night

Every month officer’s entertainment and newspapers

Monthly car rental to officers

Monthly tea expenses to staff

pg. 47

Air ticket

Air insurance

Telephone antiseptic bills

Labor charges

Office telephones

Current t monthly salary advances

POLICYHOLDER & SERVICE DEPARTMENT

PHS department performs these functions:

Renewal or revival of policies

Alteration in the policy

Payments of death claims

Payment of maturity claims

Payment of injury claims

Renewal or Revival of Policies:

When policy holder want to renew the policy when existing policy time is over.

Alteration:

pg. 48

Kinds of alteration

Calculated alteration

Contractual alteration

Calculated alteration

This alteration includes following things:

Sum insured

Table & term

Load

After revival term & condition

Special revival after revival

Change in terms & conditions

Contractual alteration

Legal point of view this alteration is called contractual alteration.

For specified period for alteration in the policies e.g anticipated policies before the 4 year of term of policy alteration can be made.

For this policy the evaluation will be on:

Financial aspect

Physical aspect

Moral aspect

pg. 49

Mode of payment is usually yearly then policy holder in the time on need say to change it in the monthly, quarterly, half yearly. Excess is charged for this purpose.

Half yearly 52 % of annual premium

Quarterly 27 % annual premium

Monthly 9% of annual premium

Procedure for Maturity Claims:

Letter is send to policyholder which provide following information.

It is a matter of great pleasure that your policy has matured. It is a time to fulfill the goals that you had set years back. For collecting maturity benefits, please send a written request along with following documents to your servicing State Life zonal office:

Original policy document

Copy of National Identity Card

Maturity discharge voucher duly verified by your bank

If your signature has changed over the years, please send us your three specimen signatures of old and new styles.

Immediately on receipt of above documents, we will process the case further for payment of amount due, if any, against maturity claim under above policy.

Procedure for Death Claim:

pg. 50

State Life insurance policies provide wide range of benefits in case of death of the persons covered against them.

Survival Benefit Claim:

If Anticipated Endowment Assurance policy has completed 1/3rd or 2/3rd term of the policy, it can withdraw a sum equal to 25% of the sum insured of policy.

For withdrawal of Survival Benefit, send a written request along with following documents to the servicing State Life zonal office:

Original policy document

Copy of National Identity Card

Survival Benefit discharge voucher duly verified by your bank

If the signature of persons has changed over the years, then are need to send three specimen signatures of old and new styles

Immediately on receipt of above documents, state life will process the case for payment of amount due, if any, against survival benefit claim under above policy.

Injury Claim:

If State Life insurance policy contains an Accidental Death & Indemnity Benefit (AIB) supplementary cover, and the insured have sustained an injury as specified in the contract, he can apply to state life for an injury claim within 20 days of sustaining the accident.

NEW BUSINESS DEPARTMENTDr. Nisaar Ahmed Shah is the in charge of new business department. In this department as the name shows, new contracts start between proposes and insurance company.

Proposer is a person who applies for the insurance protection:

pg. 51

Function of NB is underwriting

Department is responsible for processing the new business introduced by the sales force right from receiving a proposal on the counter to mailing the policy document to the policy holder

Various sections to perform the different task relating to the acceptance or rejection of risks for life insurance.

Completion of all columns and then processed by the underwriters depending upon whether they have been introduced under the medical or non medical scheme. The risk is assessed keeping in view the following factors

personal data , occupation ,physical and social features , health , family history of the prospect , moral hazard , source of income , nomination , relationship between the nominee and the prospect . Previous life insurance history of the prospect if any, field officer’s or sale representative confidential report included in the proposal from,

Financial underwriting i.e. Source of income, its legality and proof, relationship between the prospect’s income and sum assure .in case of field officers or sale representative’s reports have more importance.

Policy contract are issued under intimation to the field force, and concerned department i.e commission payment, agency administration, computer division and marketing. This in brief terms is the function on new business department. That play key function as the underwriters are responsible for the financial health of life institution. By accepting good risks they promote profitability and growth, which helps in meeting the financial obligations of the life institutions towards the policyholders, its employees and government.

Process of dealing with new customer

First of all sale rap motivate the customer to take policy

pg. 52

Then sale rap fills proposal form for that customer

Then sale rap takes Rs 500 as token money as underwriting fee for customer.

Then proposal form come in new business for allotment of proposal number where proposal number for a particular customer is allotted.

Then process of underwriting is done. If the customer fulfills the requirements of underwriting then further process continues otherwise request is rejected and underwriter suggests some other alternative.

If underwriter accepts the proposal then calculation of premium is done.

After the calculation of premium the policy number is allotted and policy bond is issued to customer.

Sections of New Business:

Proposal section

Underwriting section

Calculation section

Policy issue section

Computer section

Proposal Section:

Proposal section policy number allot to a new customer’s proposal for future reference.

pg. 53

Issued the proposal number and then record the proposal number, serial no, age, table & term and then SR, AR, PR no and the name of owner of policy form.

These form are send with attaching the balance statement to underwriting department.

Some other forms which have some objections after clearing these things than recorded into the ledger.

Underwriting Section:

Assesses the risk associated with the insurance proposal

Underwriter verifies the proposal

He feels that client should have a medical checkup than SLIC have its own panel of doctors to provide medical assistance.

Types of underwriting:

Lay underwriting

Final authority

Lay underwriting:

Junior underwriter who check all the documents of policyholder. If the documents are correct then he sends to final authority

Final authority:

person who check all the documents and decision of lay underwriter makes final decision.

Underwriting panel:

pg. 54

Underwriting specialist check the case thoroughly and check his name, NIC no, age, weight, height, nominee, name occupation and address. There is something wrong then they must be conscious and call medical report or other tests of medical.

Doctor’s panel:

The doctor panel head is known as CMA (CHIEF MEDICAL ADVISOR) i.e. Dr. Naeem and also authorized doctors Dr Saira who has recommended the case by underwriters for medical reports etc.

They must check the nominee name, NIC no and his occupational stress.If the policyholder has government employee then they can give the categories no 4 such as school teacher, doctor etc. but if they are carpenter, bricks holder then they can give 5,6.

There are basically three categories of female:

Government job and education

Private illiterate

Household

But the male have only one category:

If the case has 10, 00,000 then only one person sign but if they are Rs 20, 00,000 then they are Rs 30, 00,000 then three persons can check.

If the policyholder are smoker then they will allow only smoking daily 6 up to 10.but if they smoke 20 up to 25 then they are not capable to grant the policy.

Calculation section:

Calculation section calculation of premium is done. Premium can be pay in the following way:

Yearly

Half yearly

Quarterly

pg. 55

Monthly:

Rate of interest and premium rate is calculated.

Rate of premium depends upon the age of a person. If the age is higher, then more rates will be charged and if age is low then low rate will be charged. Rate also depends upon the maturity period.

Different tables are used for calculating the rate of premium.

Most commonly used table is:

Table 3

Table 5Table 7

Table 12Table 18

Table 19

Policy issue section:

After completing this section, Number is allotted to policy holder .In policy issue section, all the records are maintained in the policy register.

Computer section:

This department has its own computer section, which contains all the records of policy holders. The department is computerized in 1995.

AGENCY DEPARTMENT.The marketing force, usually known as field workers, is regulated through an important department which in insurance industry is called agency administration department

pg. 56

Agency administration results, trained, promote and provide services to its field workers so as to ensure them skilled profession, sound career, handsome

Field force of SLIC plays an effective role in selling of intangible and tangible products. In order to maintain record of the field force agency department was established.

Head of agency department is Mr. Shakeel ansari and executive officer Mr. Asif mir .Main function of this department includes recruitment, promotion, and termination of field force, allied and medical facility for field force and is also responsible for issuance and renewal of licenses to the field force.

State life has two levels of recruitment:

Recruitment:

Sale representative is appointed by SO/SM .The requirement and conditions for the appointment of SR are as follows. State life has two level of recruitment.

Regular sales representatives:

Minimum qualification required is matric

Age at entry must not be less than 18 years.

Annual quota for SR is Rs 10000

Application for the issuance of license is necessary and is renewed after each 3 years.

An application form, along with license fee Rs 50, attested photocopies of documents and nomination form is submitted to the agency department

Graduate sales representatives:

pg. 57

Must be graduate required

Less than 30 years of age having N.I.C.

They are paid stipend.

Both above type of sale representative are registered under insurance ordinance 2000 and insurance rules 2002.

Promotion:

SR is promoted, upon fulfillment of certain terms and conditions and on achievement of business targets.

Prize & Awards:

Awards and prize on annually, monthly achievements bases. Height of it is an annual convention which held at a prominent place of prestige in the country in which all the qualities around the country share their knowledge and experience, enjoy recreational activities and above all get benefit of company of successful seniors.

Other Benefits:

Maintained furnishes offices are provided and those who wish to open their officers according desire are paid cash compensation in lieu of an office to maintain their own offices.

Receive heavy sum of insurance against accident and death through variety of Group Insurance Policies.Company pays the premiums and for additional coverage subsidized rate of premium is charged which is deducted from their commission.

Termination and Demotion:

Any agent of SLIC, who behave negatively, violates the rules and regulation, can be terminated by the zonal head. Any agent who fails to meet the annual quota of FYP is demoted to immediate lower rank.

pg. 58

License:

License to work as agent for SLIC is issued by the controller of insurance Karachi. At specific interval of time, a list of the field force is transferred to controller of insurance Karachi for new and renewal of license.

The list of license fee is given below:

SR (new license for IST year) = Rs 50SR (renewal of license) = Rs 150SR (renewal with late fee) = Rs 250SO/SM (renewal of license) = Rs 250SO/SM (renewal with late fee) = Rs 400

The agency department is also involved in the following matters of field persons:

Medical of field persons

Rent

pg. 59

Recommendation & Conclusion

pg. 60

RECOMMENDATIONS:SLIC no doubt a positive contributor in economic as well as insurance industry growth. I am not able enough to make any suggestions about the competence and working of the company yet during my internship period I think there are some assured points adopting of which can serve more effectively and efficiently. These points are as under

It is practical that the employees were overburdened so they have work a lot. In this way their efficiency is artificial and hiring more employees can diminish their work.The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs. It means rotation of their jobs must be done.State life should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted.IT draw backs should be improved.Expenditures must be control, which are very high.

There is also a need of proper recruitment and selection program. New young talent should be introduced to inject the new ideas

CONCLUSIONAs of the above brief and wide discussion I have come to the point that SLIC insurance plays a vital role in present insurance market in Pakistan. The gross premium of the company is increasing.It was an interested experience to do internship in state life insurance corporation.The staff was highly cooperated and due to their help I learned big deal about insurance sector.

pg. 61

I suggest that such an internship program highly integrative for the students of management so that the students should be enquired with the knowledge of practice world .I do summarize that it would be a great help to me in selection of job or future field of work.

REFERENCES:In the preparation internship report me discussed various books economist newspapers and visited websites. Following are references from which I took assistance in preparation of my projects on State Life Insurance Corporation.

www.statelife.com.pk

www.kse.com

www.iap.gov.pk

www.secp.gov.pk

www.businessplus.com

pg. 62