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8/10/2019 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
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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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