INTERNSHIP REPORT

STATE LIFE INSURANCE CORPORATION

Submitted By
Muhammad Talha Irshad
Roll No. 375(R2
BBA (Hons)

Submitted To
Mam Tabinda Kiran

Department of Management Sciences

The Islamia University of Bahawalpur
pg. 1
 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. 2
 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 haslearned 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
Different websites

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

pg. 3
 CONTENTS

Sr. No Page No.

Description

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
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

pg. 4
 INTRODUCTION OF STATE LIFE

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

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 Policyholder’s Services

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

pg. 5
PRINCIPAL OFFICE:
The principal office, based at Karachi, is responsible for corporate activities such
as investment, real estate, actuarial, overseas operation, etc.

pg. 6
 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

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 2.895 million

Under group life insurance 3.754 million

pg. 7
 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

pg. 8
 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:
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.

pg. 9
 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:

CHAIRMAN

EXECUTIVE
DIRECTOR

DIVISIONAL HEADS

REGIONAL HEADS

ZONAL HEADS

DEPARTMENTAL
HEADS

pg. 10
ORGANOGRAM:
CHAIRMAN

EXECUTIOVE DIVISONAL HEAD

DIRECTOR

ZONAL HEAD

DEPUTY GENERAL ASST GENERAL

MANAGER MANAGER
MANAGER

DEPUTY
ASST MANAGER
MANAGER

EXECUTIVE
OFFICER

ASST
SUPERINTENDENT
SUPERINTENDENT

SENIOR OFFICE
OFFICE ASST
ASST

RECORD

NAB QUASID

QUASID

pg. 11
 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. SpentaKandawalla DIRECTOR
Mr. Aslam Faruque DIRECTOR
Mr. Amin Qasim Dada DIRECTOR
Mr. Rasheed Y.Chinoy DIRECTOR
Syed A. Wahab Mehdi DIRECTOR
Syed HurRiahiGardezi 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. NargisGhaloo
Mr. Mohammad Yahya
Mr. Allah RakhaAasi

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

pg. 12
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,
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

pg. 13
 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. 14
 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. 15
 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:

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

pg. 16
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.

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.

pg. 17
 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.
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.

pg. 18
 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 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

pg. 19
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 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.

pg. 20
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 ofinsurability. 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:

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.

pg. 21
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. 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

pg. 22
  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.

pg. 23
 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.
 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

pg. 24
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

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.

pg. 25
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

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.

pg. 26
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 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
pg. 27
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
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.

pg. 28
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. 29
 INTRODUCTION OF STATE LIFE

INTERNEE WORK:

WORK DONE BY ME
WEEKLY TIME TABLE:
Monday to Friday 09:00am to05:00pm

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,BusinessDepartment,AgencyDepartment.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 Department
First three week
First three weeks I learn these things explained below:

pg. 30
 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 cheque
3. Claim cheque
4. 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 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.

pg. 31
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 syedhaiderali 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:

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,

pg. 32
  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

 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:

pg. 33
First year premium QUARTER BONUS
SR-------- 35% 2.5%
SO------- 15% 2.5%
SM------ 8% 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 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.

pg. 34
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 qaisernawaz 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 course
3. Marketing management skill course

pg. 35
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. 36
 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
 Service e.g canteen security and cleanliness

pg. 37
SECTIONS:
Personnel Section:
All the employeesengagement, 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.
 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 .

pg. 38
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:
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.

pg. 39
 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.

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.

pg. 40
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:

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.

pg. 41
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

 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

pg. 42
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.

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. 43
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:

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.

pg. 44
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.

pg. 45
 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
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

 Then sale rap fills proposal form for that customer

pg. 46
  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.

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 thingsthan recorded
into the ledger.

pg. 47
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:
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 DrSaira 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

pg. 48
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

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

pg. 49
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

 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. Shakeelansari 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.

pg. 50
  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:
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.

pg. 51
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) = Rs 50

SR (renewal of license) = Rs 150
SR (renewal with late fee) = Rs 250
SO/SM (renewal of license) = Rs 250
SO/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

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Recommendation & Conclusion

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 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

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.businessplus.com

www.iap.gov.pk www.kse.com

www.secp.gov.pk

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