STATELIFE

INSURANC
E
CORPORAT
ION
pg. 1

INTERNSHIPREP
ORT
PRESENTED BY:
4TH SEMESTER

UNIVERSITY OF GUJRAT
pg. 2

ACKNOWLEDGEMENT
All 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.

pg. 3

EXECUTIVE SUMMARY
I 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.
History
Departments
Swot analysis
The source of information used during the preparation of this report
includes

Personal observations
Discussions with staff & management
Annual reports
Handouts
pg. 4

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

CONTENTS
Sr. No
1.

Page No.

Description
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
pg. 5

10.

DEPARTMENTS

32

11.
12.

FINANCE&ACCOUNTS
FMD DEPARTMENT

34
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

pg. 6

BRIEF HISTORY
The 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 Offices
Twenty-Six Zonal Offices
Few Sub-Zonal Offices
111 Sector Offices
461 Area Offices

pg. 7

For Group & Pension there are

Four Zonal Offices
6 Sector Offices
20 Sector Heads

FUNCTIONS PERFORMED BY OFFICES

Zonal Offices:
The Zonal Offices deal exclusively with Sales and Marketing Underwriting
of Life Insurance Policies and the Policyholders 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 ACHIEVEMENTS
The 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 securities
Stock market
Real Estate
pg. 8

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 employees
As part of its marketing force
Investing 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 31.12.2010
6. Whereas
Fair value is Rs.21.681 billion as at 31.12.2010
7. 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
Under group life insurance

2.895 million
3.754 million
pg. 9

CHRONOLOGY OF EVENTS
Taking 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:
pg. 10

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 STRUCTURE
It 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:

pg. 11

CHAIRMAN
CHAIRMAN

EXECUTIVE
DIRECTOR

DIVISIONAL
HEADS

REGIONAL
HEADS
HEADS

ZONAL
ZONAL

HEADS
HEADS

DEPARTMENTAL
HEADS

pg. 12

ORGANOGRAM:
CHAIRMAN
CHAIRMAN

EXECUTIOVE
DIRECTOR

DIVISONAL
DIVISONAL
HEAD

ZONAL HEAD

DEPUTY
GENERAL
MANAGER

ASST
ASST
GENERAL
GENERAL
MANAGER

MANAGER
MANAGER

DEPUTY
DEPUTY
MANAGER

ASST
MANAGER

EXECUTIVE
EXECUTIVE
OFFICER

ASST
SUPERINTEN
SUPERINTEN
DENT

OFFICE ASST

SUPERINTEN
SUPERINTEN
DENT
DENT

SENIOR
SENIOR
OFFICE
OFFICE ASST
ASST

RECORD

NAB QUASID
QUASID
NAB

QUASID
QUASID

pg. 13

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
CHAIRMAN
Mr. Qamar Zaman Chaudhry
DIRECTOR
Mrs. Spenta Kandawalla
DIRECTOR
Mr. Aslam Faruque
DIRECTOR
Mr. Amin Qasim Dada
DIRECTOR
Mr. Rasheed Y.Chinoy
DIRECTOR
Syed A. Wahab Mehdi
DIRECTOR
Syed Hur Riahi Gardezi
DIRECTOR
Mr. 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 Ali
Ms. Nargis Ghaloo
Mr. Mohammad Yahya
Mr. 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,
pg. 14

Twenty-Six Zonal Offices,

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 Policyholders 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
pg. 15

Abbottabad Zone
Gujrat Zone
Islamabad Zone
Mirpur (AK) Zone
Swat Zone

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

pg. 16

PRODUCTS
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

pg. 17

INDIVIDUAL LIFE PRODUCTS

Whole Life Assurance:
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:
Its 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
pg. 18

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.

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.

pg. 19

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)
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 Lifes 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 Lifes surplus. Rates of bonus applicable
will be 25% higher than those on anticipated endowment plan.
Under endowment insurance these plans are available.
pg. 20

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.
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 childs
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 Lifes 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.
ii.
iii.

Continue the policy in the same manner as earlier by switching the plan
for the benefit of another child.
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.
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.
pg. 21

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
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
pg. 22

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
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
pg. 23

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:

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:
pg. 24

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.
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 childrens 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
pg. 25

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
Lifes 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.

GROUP LIFE INSURANCE

PRODUCTS
These includes

Term Insurance Scheme

House Building & perquisites Insurance Scheme
Pay Continuation Scheme
Group Endowment Insurance Scheme
Group 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.

pg. 26

 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
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:

pg. 27

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

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
Scheme:

&

Perquisites

Insurance

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
pg. 28

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
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 is
PTD (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
pg. 29

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
employees 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
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 employees family during his working life.
The familys 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 employees
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.
pg. 30

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
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

pg. 31

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
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.

pg. 32

Part: 2

INTRODUCTION OF
STATE LIFE
INTERNEE WORK

pg. 33

Work done by me
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
pg. 34

 New Business Department

Agency Department
F M D Department

First three week

First three weeks I learn these things explained below:

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.
2.
3.
4.

Loan cheque
Maturity cheque
Claim cheque
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:

pg. 35

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

Vouchering Record:
T he 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.
pg. 36

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:

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

pg. 37

 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
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.

pg. 38

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

SR-------- 35%
SO------- 15%
SM------ 8%

QUARTER BONUS
2.5%
2.5%
2%

Persistency bonus:
It gives on the persistency of the last year business.
On 80% business the commission is 1.1 percent. On 81, it is 1.2 and
onward.

Second year premium

SR
SO
SM
THIRD YEAR PREMIUM
SR
SO
SM

10%
2%
1%
5%
1%
0.5%

SALARY & LOAN:

pg. 39

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.

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.
pg. 40

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 course
3. Marketing management skill course

Foundation advance course

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
pg. 42

 Purchase of goods and services

Uniforms
Communication
Other services
Maintenance

Office machines & equipment

Furniture & fixture
Transport & conveyance
Receipt and dispatch
Assets register
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 ACRS 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
pg. 43

 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.
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.
pg. 44

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:
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 DEPARTMENT
it 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.

pg. 45

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:

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:

pg. 46

 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:

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:

pg. 47

 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 officers entertainment and newspapers
Monthly car rental to officers
Monthly tea expenses to staff
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
pg. 48

 Payment of injury claims

Renewal or Revival of Policies:

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

pg. 49

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

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
pg. 50

 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:

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
pg. 51

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 DEPARTMENT

Dr. 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 :

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 officers or
sale representative confidential report included in the proposal from,
Financial underwriting i.e. Source of income, its legality and proof,
relationship between the prospects income and sum assure .in case
of field officers or sale representatives reports have more
importance.

pg. 52

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
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
pg. 53

 Computer section

Proposal Section:
Proposal section policy number allot to a new customers proposal for
future reference.
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:
pg. 54

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:
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.

Doctors 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.
pg. 55

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

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 5
Table 7
Table 12
Table 18
Table 19

Policy issue section:

pg. 56

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
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:

pg. 57

 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:

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:
pg. 58

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.

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)

SR (renewal of license)
SR (renewal with late fee)
SO/SM (renewal of license)
SO/SM (renewal with late fee)

= Rs 50
= Rs 150
= Rs 250
= Rs 250
= 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.
pg. 61

 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

CONCLUSION
As 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.
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
pg. 62

www.businessplus.com

pg. 63