1

[A REPORT ON STATE LIFE

INSURANCE CORPORATION]

[ANALYTICAL REPORT]

UNIVERSITY OF
GUJRAT
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[A REPORT ON STATE LIFE

INSURANCE CORPORATION]

[ANALYTICAL REPORT]

[PREPARED FOR]

Mr. Assam Iqbal

UNIVERSITY OF
GUJRAT

[PREPARED BY]

HASSAN ALI
UOG
MSC 2ND semester
16160819-036
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Letter of authorization

I am writing this report for the information of people to tell about life insurance and their different
policies especially for information of university of Gujarat students teacher and also the information of
other people. I also told the people about its benefits.
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Letter of acceptance

I am very thankful to my teacher, friends and family who helped me in preparing report. I am very
thankful to Mr. Amjad Hussain who asked me to prepare report. i am also thankful to those people who
tell me its benefits.
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Letter of transmitted
I am dedicated to this report for friends and family who helped me in different stages of report. I am
writing this report for the information of people according to benefits of life insurance policies.
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Table of contents

Sr. No Description Page No.

1 Acknowledgement 6
2 Executive summary 7
3 History of Insurance 8
4 What is insurance 9
5 Term 15
6 State life insurance corporation 16
7 History 17
8 Function 17
9 Organizational Structure 17
10 Terms relating insurance 20
11 Classes of insurance 22
12 Introduction of Organization 22
13 Objective, quality & mission 23
14 Collection of data 26
15 Data Analysis 27
16 Recommendation 30
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Acknowledgement

With the name of ALLAH the Most Beneficial and Merciful. I completed my Analytical report on State Life
Insurance Corporation of Pakistan. I am really pleased to have a professional learning experience in one
of leading insurance organizations of country. I worked in different departments and I am truly thankful
to all officers and staff who entirely give assistance to me.. The account of acknowledgement will remain
incomplete if I do not expressly sincere appreciation, indebtedness and gratitude to my parents and
siblings. They have always been a source of encouragement for me
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Executive Summary

I have recently completed my report on State Life Insurance Corporation OF Pakistan, in which I got
information from its different departments. The structure, the fashion of working & the dedication of the
employees in SLIC is really commendable. State Life Insurance Corporation OF Pakistan (SLIC) has a
solid foundation since 1972 in Pakistan, and main objective is to provide its customers with safe, secure
and trustworthy service through wide range of products. In this report I have given a very brief review of
Profile of State Life Insurance Corporation OF Pakistan, all the products provided by the SLIC and in this
regard I have tried to give all the information of SLIC. Then i have discussed about my learning in all
departments of State Life Insurance Corporation OF Pakistan. During my work I take interview of some
person that are the agent of state life insurance or those people who take life insurance policy. I
successfully completed the entire task that was assigned to me. I have made it possible to write each and
every thing that I have learnt there.
In todays corporate and competitive world, i find that insurance sector has the maximum growth and
potential as compared to the other sectors. This growth potential attracts me to enter in this sector and
state life insurance corporation of Pakistan has given me the opportunity to work and get experience in
highly competitive and enhancing sector. Agents are the only way for a company of insurance sector
through which policies and benefits of the company can be explained to the customer. The 17 private
insurers increased their market share from about 15% to about 19% in a year's time. Pakistan, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector and
snapping up the new innovative products on offer.
Then I have done a detailed Analytical report on state life insurance. Finally I have given some
recommendations about State Life Insurance Corporation OF Pakistan
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History of insurance

In some sense we can say that insurance appears simultaneously with the appearance of human society.
We know of two types of economies inhuman societies: natural or non-monetary economies (using
barter and trade with no centralized nor standardized set of financial instruments) and more modern
monetary economies (with markets, currency, financial instruments and so on). The former is more
primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is
Destroyed the neighbors are committed to help rebuild. Granaries housed another primitive form of
insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs,
this type of insurance has survived to the present day in some countries where modern money economy
with its financial instruments is not widespread. In the late 1680s, Edward Lloyd opened a coffee house
that became a popular haunt of ship owners, merchants, and ships' captains, and thereby reliable source
of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships,
and those willing to underwrite such ventures.
Today, Lloyd's of London remains the leading market (note that it is an insurance market rather than a
company) for marine and other specialist types of insurance, but it operates rather differently than the
more familiar kinds of insurance. Insurance as we know it today can be traced to the Great Fire of
London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted
the development of insurance "from a matter of convenience intoone of urgency, a change of opinion
reflected in Sir Christopher Wrens inclusion of a site for 'the Insurance Office' in his new plan for London
in1667."A number of attempted fire insurance schemes came to nothing, but in 1681Nicholas
Barbon,and eleven associates, established England's first fire insurance company, the 'Insurance Office
for Houses', at the back of the Royal Exchange. Initially, 5,000 homes were insured by Barbons Insurance
Office
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WHAT INSURANCE IS ?
A promise of compensation for specific potential future losses in exchange for a periodic payment.
Insurance is designed to protect the financial well- being of an individual, company or other entity in the
case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing
to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange
for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of
money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss
(called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance,
disability insurance, life insurance, and business insurance. The transaction involves the insured
assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange
for the insurer's promise to compensate(indemnify)the insured in the case of a financial (personal) loss.
The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insured will be financially compensated.

TERMS RELATING INSURANCE

SUM ASSURED
An amount payable to the assured (agreed in advance),at an agreed time.

LIMIT OF INDEMNITY
An amount payable to the insured, commence rating with his loss or damage subject to the maximum limit
agreed in advance.

INTERMIDIARY/BROKER
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A person or firm who arranges a cover with the Insurer/Assurer on behalf of the Insured/Asssured,In
consideration of a commision,payable by the Insurer/Assurer.

POLICY
Policy is a document which shows that a contract has been made between the Insurer/Assurer and
Insured/Assured. It is not called a contract in itself.

PROPOSAL FORM
Through Proposal Form Insured/Assured presents various type of information to the Insurer/Assurer for
obtaining a cover for risk. There is other method adopted in the market also to present the risk such as
representation by the agent/broker or surveys in case of complex nature of general insurance risks.

PREMIUM
An amount paid by the insured/assured in consideration of accepting the risk by the insurer/assurer.
Premium includes, pure premium, commission paid to the agent/broker, administrative expenses and
profit.

UNDERWRITER
Underwriter is a person working in an insurance company, who evaluate the risk presented by the
insured/assured as to whether to accept or reject the risk and if it is accepted on what premium and terms
and conditions

.
CLAIMS MANAGER
Claims manager is called the watch dog of the funds of the policy holders being managed by the insurance
company. In case of claim he has to assess whether the claim is payable under the terms and conditions of
the policy or not and if payable what should be the quantum of the claim.

ARBITRATOR
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Arbitrator is a person who resolves dispute if arising between the insurer/assurer and insured/assured .Its
decision is final and binding under the law.

RE-INSURANCE COMPANY
A company from where insurer/assurer seeks cover over and above the amount which he can bear in case
of claims as per resources available with him.

CLAIM
An occasion which on trigging the operative clause of the policy, is notified by the insured/assured to the
insurer/assurer for payment of agreed sum assured or indemnity according to loss sustained.

ABSOLUTE LIABILITY
A legal doctrine causing one party always to be responsible for payment of damage claims, regardless of
circumstances causing the loss. This doctrine has been applied to those using explosive or keeping
dangerous animals as pets.

ACTUARY

An insurance company mathematician, who compiles statistics of losses, develops insurance rates
calculates dividends, and evaluates the financial standing of insurance company.

CAPTIVE INSURANCE
An insurance company operated by a main company or group of companies, to insure its own risks. A part
of self insurance plan.

ASH VALUE
The saving feature associated with permanent life insurance. The result of a initial period when premium
payments exceed mortality and other charges.
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INSURABLE INTEREST
The ability to demonstrate that the insured event is capable of causing a financial loss to the person owing
the insurance. To collect from a property insurance contract, the insurable interest must be demonstrated at
the time of the loss. In life insurance the insurable interest must exist when the policy is begun.

CLASSES OF INSURANCE
The insurance is mainly divided in following two major classes of business.

GENERAL INSURANCE
General insurance or non-life insurance policies, including automobile andhomeowners policies, provide
payments depending on the loss from aparticular financial event. General insurance typically comprises
anyinsurance that is not determined to be life insurancegeneral insurance means managing risk against
financial loss arising dueto fire, marine or miscellaneous events as a result of contingencies, which
May or may not occur. General Insurance means to Cover the risk of the
Financial loss from any natural calamities viz. Flood, Fire, Earthquake,Burglary, etc.. I.e. The events which
are beyond the control of the owner ofthe goods for the things having insurable interest with the utmost
goodfaith by declaring the facts about the circumstances and the products bypaying the stipulated sum ,
a premium and not having a motive of making
Profit from the insurance contract.
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Some of the General Rules:

1. Mis-description:
The insurance policy shall be void and all the premiums paid by insured may be forfeited by the insurance
company in the event of mis-presentation or mis-declaration and/or non-disclosure of any material
facts.2.
2. Reasonable care:
The insured shall take all reasonable steps to safeguard the property insured against any loss or damage.
Insured shall exercise reasonable care that only competent employees are employed and shall take all
reasonable precautions to prevent all accidents and shall comply with all statuary or other regulations .
3. Fraud:
If any claim under the policy may be in any respect fraudulent or if any fraudulent means or device are
used by the
Insured or any one acting on the insureds behalf to obtain any benefit under the insurance policy, all the
benefits under the insurance policy may be forfeited.
LIFE ASSURANCE
Life assurance is a contract between the policy holder and the insurer, where the insurer promises to pay
a designated beneficiary a sum of money (the "benefits") upon the death of the insured person.
Depending on the contract, other events such as terminal illness or critical illness may also trigger
payment. In return, the policy holder agrees to pay a stipulated amount (the "premium") at regular
intervals or in lump sums. In some countries, death expenses such as funerals are included in the
premium; however, in the United States the predominant form simply specifies a lump sum to be paid on
the insured's demise. The value for the policy owner is the 'Peace of mind' in knowing that the death of
the insured person or if he lives too long, or if he becomes disabled, will not result in financial hardship.
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Life policies are legal contracts and the terms of the contract describe the limitations of the insured
events. Specific exclusions are often written into the contract to limit the liability of the insurer; common
examples are claims relating to suicide, fraud, war, riot and civil commotion.
ORIGION OF LIFE ASSURANCE
Risk protection has been a primary goal of humans and institutions throughout history. Protecting against
risk is what insurance is all about. Life insurance came about a little later in ancient Rome, where burial
clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily.
With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it
did continue through the Middle Ages, particularly with merchant and artisan guilds.
However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing
opposition from religious groups.
LIFE-BASED CONTRACTS

Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit in the event of specified event, typically a lump sum
payment. A common form of this design is term insurance.
Investment policies where the main objective is to facilitate the growth of capital by regular or single
premiums. Common forms (in the US) are whole life, universal life and variable life policies.
INSURANCE VS ASSURANCE
The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in
jurisdictions where both terms are used," insurance" refers to providing cover for an event that might
happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to
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happen. In the PAKISTAN both forms of coverage are called "insurance", principally due to many
companies offering both types of policy, and rather than refer to themselves using both insurance and
assurance titles, they instead use just one

Introduction of organization

State life insurance corporation of Pakistan

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.
The basic structure of the corporation consists of six regional offices, thirty two zonal offices, a few sub-
zonal offices, 180 sector offices, and a network of 1073 area offices across the country for individual life
insurance; four zonal offices and 6 sector offices with 21 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. Under writing of life insurance policies and the
policy holder'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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Objectives, mission & quality policy

Objectives
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.
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.

Product offered to customer by state life insurance

Individual life plans

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Whole life assurance

Endowment assurance
Sadabahar plan
Anticipated endowment assurance
Shadabad assurance
Jeevan saathi assurance
Child education and marriage assurance
Child protection assurance

Group life & pension plans

Term insurance scheme
Provident fund insurance scheme
House building & perquisites insurance scheme
Pay continuation scheme
Group endowment insurance scheme
Group pension scheme
Private education
Collection of data

Observational design relates to the condition under which the observations are to be made observational
design in respect to research. There are several ways of collecting the appropriate data, which differ
considerably in context of money, time, cost & other resources at the disposal of the researcher. Data can
be obtained from two important resources:

1. Primary data
2. Secondary data

Primary data
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Primary data are the data that are collected afresh & for the first time. Thus happens tobe in character.
Primary data are collected by the following ways:

Observations
Interview
Questionnaire

Secondary data

Secondary data are the data that are collected & are already collected & are only analyzed by different
sources. These are as follows:
Manuals of various companies
Internet

I collected the secondary data from internet, mainly from state life insurance books.

Data analysis & interpretation

1). Data gives preference of respondents of insurance companies

Company name No. Of Respondent (%)

State life insurance
Efu life assurance ltd
New jubilee life insurance
Others
Total
5 50%
3 30%
0 0.0%
2 20%
10 100%
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State life Insurance

EFU life Insurance
New jubilee life Insurance
Others

Interpretation
50% of the people contacted prefer state life policy to any other and therefore it is ranked no.1 by that
percent of respondents.

2). Data gives benefits of insurance perceived by respondents

Benefits No. Of respondents (%)

A tool to protect 6 54%

your family
A tax saving device 2 25%
A saving tool 2 20%

Total 10 100%
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A tool to protect your family

A tax saving device
A saving tool

Interpretation
60% of the respondents have perception of insurance being a tool to protect your family and 20% of the
respondents have perception of insurance being a saving tool but 20% of the respondents are with the view
that insurance is a tax saving too.

3).Data shows peoples having insurance

Response No. Of respondents Share (%)

Yes 17 55%
No 13 45%
Total 30 100%
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Customer approached company

Company approached customer

Interpretation
Of the sample size of 30 surveyed respondents 55% of the respondents are having insurance policy.45% of
the respondents are either not having any insurance policy at present or their policy is already matured.

4).Data shows buying process of the people

Buying process No. Of respondents (%)

Insurance Company 6 60%
approached customer
Customer approached 4 40%
insurance company
Total 10 100%
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Satisfied
Not satisfied

Interpretation
60% of the respondents approached the insurance company / agent. Whereas, 40% of the respondents were
approached by the company /agent
.

5).Data shows reasons behind for insurance

Response No. Respondents (%)

Tax saving 3 15%
Saving / investment 4 20%
Family protection 13 65%

Interpretation
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15% of the respondents opted for insurance for tax saving benefits.20.71% of the respondents opted for
saving / investments. but all of them, i.e. 65% of the respondents have opted for insurance for their family
protection.

6). Data shows satisfaction of respondents with respect to policy

Response No. Of respondents Share (%)

Satisfied 10 100%
Not satisfied 0 0.0%
Not responded 0 0.0%
Total 10 100

Satisfied
Not satisfied
Not responded

Interpretation
60% of the respondents are more or less satisfied with their existing policy.40% of the respondents are not
satisfied with their existing policy .in this case all of those who have taken a policy have responded.
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RECOMMENDATIONS
The state life Insurance Corporation has a monopoly in the life insurance business. The only one
competitor is postal life insurance. But as whole the market is monopolized by SLIC and market share of
SLIC is about 80%.For the promotion development of the business of the corporation the following
suggestions and recommendation is given.

I). As the union in SLIC is very strong, so many time it interfere in the working of SLIC specially in the
recruiting low level employees from grade 1 to 8. Because employees of these grade are appointed
according to wishes of union. This often leads to recruitment of incompetent people, which may affect
the efficiency of SLIC. So the role union should be minimized.

Ii).Recruitment problem also face by SLIC at managers level. For the manager level posts relevant
qualified people should be appointed e.g. MBAs will be suitable for such type of job, but they also
appointed lawyer which is totally irrelevant for the job they perform.

Iii). There is also found the lack of proper and channelized communication among the different
deportment of SLIC. The communication should be properly channelized and should not be so much
complicated.

Iv).As it is accepted that field workers are very essential factor in bringing business. So turnover of sale
force is other sever problem of SLIC. To reduce turn over and retain experience and competent field
workers their commission rate should beincrease, in order to motivate them for better performance.

V).SLIC also adopted a procedure for promotion of their employees in which includes their performance
and passing of FLMI test. This is conducted by an American institute, it consists of 10 papers, and cost of
each paper is from Rs.5000 to 6000. So this is very expensive test. And this may effect a person who
incompetent but cant offered this expenses. So SLIC should reduce this cost or should help the
competent employees in monitory terms.
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Vi).As the field workers are commission based so they are not considered the permanent employees of
the organization, there for they have no role in policymaking while they face the real problem on ground,
so they must include members of field force when they making policy for them.

Vii).So many policy holders are facing problems and depositing their premium, especially people of rural
area. Because most of the cash counter are situated in district cities which are far away from the side
area of district. So SLIC should open cash counter in side areas also, this will make the people to deposit
their premium easily.

Viii).Surrender of policy means the end of policy. So many people surrender their policy because of less
saving they cant deposit their premium. So to stop the surrender of policy the SLIC should increase the
time period for revival of policy. This will give extra time to policy holder to continue their policy if they
want.

Ix).Lapses in policies should also be reduce, and this can be done by continuous motivating of
policyholder to deposit their premium regularly. This will also help them to attain persistency.

X).State life insurance has more than 52 building throughout the country. And most of the position of the
building has given on rent. But when there is recession in economy most of the companies leave the
offices in state life building because of its high rent, which leads to reduction in net income. So the state
life should facilitate the rent of offices according economic condition.
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CONCLUSION
It is concluded from the report and other documents which were consulted for the completion of this
repot, that State Life Insurance Corporation is one of the leading corporations of the country. It has
provided a life Security Protection to about 5.00million person of the country. Apart from this it provides
self finance jobs to thousands of the countrymen, and mobilized the country economic and financial
resources, and also contributes a lot to Government in terms of providing funds. We hope that the
corporation will play its important role in the development of National Economy.

Questionnaire

2. Do you have any insurance policy?

(a) Yes
(b) No

3. Which insurance policy do you have?

(a) Life (b) non-life (c) both

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4. Which companys insurance policy you prefer the most?

(a) State life insurance

(b) EFU life assurance ltd
(c) New jubilee life insurance
(d) Any other _______________ (specify)

5. For how many years do you have insurance policy?

A) 5yrs
B) 5-10 yrs
C) 10-15 yrs
D) Any other________________(specify)

6. What do you think are the benefits of insurance recover?

(a) Cover future
(b) Uncertainty
(c) Tax deductions
(d) Future investment
(e) Any other________________(specify)

7. Which feature of your policy attracted you to buy it?

A) Low premium
B) Larger risk covariance
C) Money back guarantee
D) Reputation of company
E) Easy access to agents
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4. Do you really think insurance policy cover in today scenarios is not essential?

5. What is your perception about insurance?

A) A saving tool
B) A tax saving device
C) A tool to protect future

6. How would you buy insurance?

A) Customer approached insurance
B) Insurance approached customer

7. Are you satisfied with the policy?

A) Satisfied
B) Not satisfied
C) Not responding

9. Do you pay taxes?

(a) Yes
(b) No

16.would you go for insurance if a service provider awayfrom the city offers better service & products?
A) yes B) no c) uncertain

Name: _________________________
Address: ______________________ ______________________________
Occupation:___________________
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Bibliography

Annual report of Life insurance from 2017

Internet portal

Www.statelife.com

Www.google.com