State Life Insurance Corporation

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STATE LIFE

INSURANCE CORPORATION

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Presented to:

Sir Mirza Nadeem Baig.

PRESENTED BY:

Hamza Butt Roll No.03

Shahzaib Hussain Roll No.13

Tehseen Ahmed Roll No.47

Hafiza Azra Tahir Roll No.48

Abbas Liaqat Roll No. 49

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LEAF REPRESENTS Three Bema Units

STAR REPRESENTS Five Zones

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Blue White

SKY

PROTECTION

UMBRELLA

SHELTER

Peace

Brotherhood

Humbleness

Purity

Truth


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Mr. Shahid Aziz Siddiqi is presently Chairman

State Life Insurance Corporation of Pakistan. Mr.

Siddiqi holds a Master Degree from the KarachiUniversity and a Post Graduate Diploma in

Development Studies from the University of

Cambridge UK.

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Other Top Management

Regional Chief Multan:

Mr.Iftikhar Ahmed.

Zonal Head in Multan:

Mr. Muhammad Ramzan Shahid

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HISTORY

The Life Insurance Business in Pakistan was

nationalized during March 1972.

Initially Life Insurance business of 32 InsuranceCompanies was merged and placed under three Beema

Units named A, B and C Beema Units.

However, later these Beema Units were merged andeffective November 1, 1972 the Management of the Life

Insurance Business was consolidated and entrusted to the

State Life Insurance Corporation of Pakistan.

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State Life Insurance Corporation of Pakistan is headed bya Chairman and assisted by the Executive Directors

appointed by Federal Government.

Up to July 2000 the Corporation was run by Board ofDirectors constituted under Life Insurance (Nationalization)

Order 1972.

In July 2000, under Insurance Ordinance 2000, theFederal Government reconstituted the Board of Directors of

State Life which runs the affair of this Corporation

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Mission

To remain the leading insurer in the country byextending the benefits of insurance to all

sections of society and meeting ourcommitments to our policy holders and thenation

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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.

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Objectives

To run life insurance business on sound line.

To provide more efficient service to the

policyholders.

To make life insurance a more effective means of

mobilizing national savings.

To use the policyholders fund in the wider interest of

the community.

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ORGANIZATIONHIERARCHY

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STRUCTURE OF CORPORATION

Seven Board of directors.

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;15


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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.

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MAJOR ACHIVEMENTS

The major function of the State Life Insurance

Corporation of Pakistan is to carry out Life InsuranceBusiness; however, it is also involved in the otherrelated business activities such as investment ofpolicyholders fund in Government securities, Stock

market, Real Estate etc.

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The major achievements of State life insurance are

State Life is profitable organization and it paid Rs.3.473 billionas dividend to the Government of Pakistan since its inception in

1972.

State Life has played very vital role in the economy byproviding employment to the people of the country as

permanent employees and as part of its marketing force and by

investing the huge funds in different sectors of the economy.

The Investment Portfolio of State Life as at 31.12.2011 stands

at Rs.275.11 billions.

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Investment portfolio also includes investment in Real

Estate which stands at a book value of Rs.2.538 billionas at 31.12.2011 whereas it fair value is around

Rs.21.622 billion in the same period.

The Paid up Capital increased from Rs.10 million in1972 to Rs.1,100 million in 2011.

Total statutory fund of State Life stands at Rs.268.60billion in 2011 as against Rs.1.494 billion in 1972

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InvestmentsState Life Insurance Corporation of Pakistan invests its funds inaccordance with the provisions contained in Insurance Ordinance

2000, Insurance Rules 2002 and SRO(309) K of 1970 as amendedto date by the Government of Pakistan.

Govt. Securities

These include instruments issued by Government of Pakistan suchas Treasury bills, Pakistan Investment Bonds etc.

Approved Govt. Securities

These include instruments as Wapda Bonds, ProvincialSecurities/TFCs etc.

Loans

These include loans in the form of Term finance certificates etc.Equities

These include shares of listed and unlisted companies.

Immovable Property

These include buildings, plots etc.

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Investment portfolio 2011

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Total investment in millions in 2011 was 275110


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Investment income in 2011

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Income from the respective investment in 2011 in millions 31175


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Products

Whole Life Assurance

Endowment Assurance

Three term plan

Jeevan Sathi Assurance

Child Protection Assurance 24


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Whole Life Assurance

It is a unique saving plan for whole life ateconomical premium.

Death at any time before age 85 years ,theinsurance company will give the sum insured

amount with bonus to the beneficiary and nofuture premium will be paid...

In case if the policy holder remains alive formore than 85 years ,he will be given the sum

insured plus bonus at maturity. Under this planthe rates of bonuses are usually much higherthan the

other plans

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ENDOWMENT ASSURANCE


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ENDOWMENT ASSURANCE

It's a safest and surest method of guaranteed

cash provision either at a specified time or atdeath (Allah forbid).

It serves the retirement of the family in various

shapes by the way of financial help atretirement, education of child ,capital forbusiness . Premium rate is less than whole lifeinsurance

The difference between the endowment andwhole life is that the endowment is based onspecified number of years say 20 or 15.

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Th t l


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Three payment plan

This plan is basically design for the business man therates are High..

1- The benefit is that the policy holder can get the

sum insured amount in three phases e.g. the policy

term is 21 years & sum insured is 1 million then thepolicy holder can get the amount as follow

25% of sum insured after 7 years.

25% of sum insured after 14 years.50% of sum insured after 21 Years maturity time.

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JEEVAN SATHI ASSURANCE


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JEEVAN SATHI ASSURANCE

Its is a product that is suitable for the couple

husband & wife.

The premier rate is high other products.

The benefit is that the Two persons are

insured in one policy ..

In case of death any one 1 partner the otherwill be claimed by the sum insured plus

bonuses ..

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Child Protection Assurance

The policy are issued jointly on life's of the child andfatherThis plan is concerned in order to secure the futureof the ChildThe policy can be taken by the mother or father

If both payer & child both survive till maturity thesum insured plus bonuses become payable ..If the payer die before maturity following arebenefits..

An income of 100 per thousand of sum insured willgiven.At expiry the full sum insured will be payed.

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Transfer of Amount to Other Zone

Surrender (Contract cancel)

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Transfer of Amount to Other Zone:

State Life Insurance Corporation ofPakistan offers this important service to

their clients. When a person want to

transfer his installment to onezone(Lahore) to another zone(Multan)

SLICP enables this transfer through

checks.

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Surrender (Contract cancel)

State life also offers this service thatany person can easily cancel hisaccount or can surrender form hispolicy.

After 1stinstallment person cantsurrender his plan. He can surrenderafter 3 years.

If he surrender after 2nd

installmentthen get minimum amount.

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As SLIC is Government organization, it hascomplete government support to organization which

also increase its, stability and Goodwill.

SLIC has dominated in life insurance market

although there are also other companies operating

but SLIC has more than 80% market share.

All other GOVT institutions are insured with SLIC.

Such as Railway, PIA and Police these institutionshave thousands of

employees. These things make monopoly of SLIC in

market


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There is complicated and a long process of

claims paymentsOut dated IT system in SLIC all data in SLIC is

maintained handily.

SLIC offers only Life insurance not the

general insurance.

Not well dressed staff.

Low attention with their clients not efficient

staff dealing with their clients. Short training programs up to 5 days or 15

days only.

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As SLIC is providing services in just only inlife insurance, it can also start general

insurance, like the insurance of property

etc.

SLIC also bring so many innovations in

their present product, like they decrease the

maturity duration of policy.

Implement of modern IT system in the SLICwhich is completely secure.

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Many organization are coming to insurance

business, so there will be tuff competition forSLIC to face in future.

Recession in economy can effect its performance

by increasing the surrender rate of policy by

policy holder.

Pakistan is under severe catastrophic and in last

few years GOVT organizations and are target of

these attacks. It could not only cause damage toSLIC but it can also increase claims ratio with

these catastrophic attacks.

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RECOMMENDATIONS


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RECOMMENDATIONS

Better training courses should bearranged for the up lifting and

improving the quality of work of

employees.There is also a problem of work

overload for the employees and it

should be control properly so that theemployees are motivated.

IT draw backs should be improved.

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RECOMMENDATIONS

SLIC is advertising only on Pakistan TV andRadio Pakistan but now there areuncountable private channels where SLICis not giving advertisement. It should

properly advertise and Communicate topublic about the products provided by it, sothat more customers will be attracted.

Islamic mode of insurance is emerging

rapidly so SLIC should introduce some pureIslamic products or invest only in interestfree business.

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State Life Insurance Corporation

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