desi efu report.doc

8/20/2019 desi efu report.doc

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CHAPTER 1

1. OVERVIEW OF THE ORGANIZATION

1.1 Brief History

1.2 Nature of the Ora!i"atio!

1.# Busi!ess Vo$u%e

1.& Pro'u(t )i!e

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1.1 Brief History

In the early 1930s, under the inspiration of the Quaid-e-Azam Mohammad Ali Jinnah,

there began to appear signs of eonomi renaissane of the Muslims of India! "hipping,

Airline, #an$ing and Insurane %ompanies made their debut!

&irst meeting of the sponsors '&( Insurane o!, )td! *as held in 1931 in )ondon!

)eft to right+ Abdur ehman "addiue, partner of aira .rading %o!,

Mr! #M %ollins of #M %ollins / %o! )td! )ondon! Mr! %h &alloon,

eneral Manager, Atlas Assurane %ompany, )ondon! Mr! &

aider, 2artner of aira reading %o!, )ondon!

In 193, in %alutta this ompany *as established *ith finanial

assistane form the Aga han and the 4a*ab of #hopal! .he

ompany *as named 'astern &ederal (nion Insurane %ompany! It

*as registered in %alutta and operated in undi5ided India and

#urma! Its business *as both eneral and )ife Insurane!

In 1967, on the birth of 2a$istan, '&( 8as the ompany *as alled found a ne* home in

a ne* ountry and rapidly established itself as a progressi5e and inno5ati5e insurer! It

ga5e the emerging insurane industry the leadership, the manpo*er and the dri5e needed

to gro* in a situation *here at the time foreign ompanies held three-fourths of

insurane!

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#y 19:1, '&( had beome the flag bearer of 2a$istan;s insurane industry in the *orld

stage, and the largest life ompany in Afro Asian %ountries 8e


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In 199, the o5ernment of 2a$istan opened up life insurane to the pri5ate setor and

'&( )ife Assurane )td *as inorporated in 199 as the first pri5ate setor life

insurane ompany!

.he third ompany in the '&( roup is Allianz '&( ealth Insurane )td, *hih is

dediated to pro5iding health insurane to indi5iduals and orporations! It is a =oint

5enture *ith Allianz of ermany, one of the largest insurane ompanies of the *orld!

Allianz '&( ealth is 2a$istans first speialized health insurane pro5ider!

'&( is the only insurane group in 2a$istan to pro5ide a full range of insurane ser5ies!

.his inludes life, health and general insurane! A pillar of '&(s strength lies in its lose

and long-term 8o5er C0 years relationship *ith its main reinsurer, Munih e of

ermany, one of the largest reinsurane ompanies in the *orld!

In 199, the )ife Industry *as opened to the pri5ate setor, and on +th No,e%-er12/

EF0 )ife *as the first life insurane ompany to be granted a liense! It started

operations in 1993 *ith roup )ife produts and in Marh 1996 launhed its indi5idual

)ife Insurane produts! '&( )ife entered the filed of life insurane *ith fous on the

hanging needs of the population! .he ompany is ommitted to pro5iding its

poliyholders *ith solutions for the problems of needs of the population! .he ompany is

ommitted to pro5iding its poliy holders *ith solutions for the problems of today;s

omple< and rapidly hanging finanial en5ironment by introduing inno5ati5e and

modern produts!

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.he %ompany has a gro*ing branh net*or$ of o5er 100 branhes

through out the ountry *ith employee strength of o5er ,000

personnel in its sales fore and around 1C0 personnel at its main

offies in arahi, )ahore and throughout the ountry! .he ompany

employs 6 full time atuaries and also has an ati5e in5ol5ement of

one of the leading atuarial firms in the ountry!

'&( )ife en=oys the distint reputation of being the largest pri5ate setor life assurane

ompany in 2a$istan! In a 5ery short span of time the ompany;s name has beome

synonymous *ith progress and prompt laim ser5ie!

'&( )ife is headed by a team of professionals *ith e


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.he ommitment, dediation and e


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Mr! Mihael #ell, a 5ery eminent ( based atuary 8retired from >atson >yatt and

urrently %hairman of a large ( based life ompany, to arry out an annual re5ie* of

the ompanys poliies and operations! .his independent re5ie* enables the ompany to

$eep abreast of international hanges in the industry and ensures that the managements

adopt the best international praties!

1.1.1 EF0 'ea$s ith three 'iffere!t rou*s/ hi(h are

7

EATERN FE3ERA) 0NION 4EF05EATERN FE3ERA) 0NION 4EF05


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I fous on one aspet of insurane i!e! life insurane!

1.1.1.1 There are three -asi( for%s of )ife Assura!(e

1. Ter% Assura!(e

It guarantees to pay a lump sum only on death during a hosen termF it has no surrender

or maturity 5alue!

The ,ariatio!s of Ter% Assura!(e are as fo$$os6

8

)IFE A0RANCE)IFE A0RANCE

2. E!'o%e!tAssura!(e

2. E!'o%e!tAssura!(e #. Who$e of )ifeAssura!(e

#. Who$e of )ifeAssura!(e1. Ter%Assura!(e1. Ter%Assura!(e

TER7 A0RANCETER7 A0RANCE

-5. Co!,erti-$e

Ter% Assura!(e

-5. Co!,erti-$e

Ter% Assura!(e (5. 3e(reasi!

Ter% Assura!(e

(5. 3e(reasi!

Ter% Assura!(ea5. )e,e$ Ter%

Assura!(e

a5. )e,e$ Ter%

Assura!(e


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2. E!'o%e!t Assura!(e

It guarantees to pay a lump sum on death during a hosen term ho*e5er if the life assured

sur5i5es and ontinues to pay the premium regularly it also pay a lump sum at maturity of

the plan!

It is basially an in5estment poliy! .he premium ontains all three fators - Gprotetion;,

Ge


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"ine there is no need to fund at Duite so high a le5el *ith >hole )ife as there is *ith the

'ndo*ment, beause the sum assured is paid out on only one e5entuality and not t*o, the

in5estment element in the premium is less than in the 'ndo*ment premium!

.he 5ariations on >hole )ife are the same as on 'ndo*ment, i!e!

4a5 4on-2rofit

4-5 >ith-2rofit

4(5 (nit-)in$ed!

Visio!

.o ma$e '&( )ife the best Insurane %ompany, our %lients *ill be the fous of

e5erything that *e do! >e *ill *in their loyalty by aring, satisfying, and ser5ing them

beyond ee shall together build '&( )ife into a dynami and finanially sound institution by

>or$ing together as a team

%ontinually impro5ing our lient ser5ie

%reating an empo*ered and self fulfilling ulture

?e5eloping inno5ati5e produts

Adopting leading tehnology

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1.2 Nature of Ora!i"atio!

.he %ompany is engaged in life insurane business and *as inorporated in 2a$istan on

: Auust 12 as a publi limited ompany! .he shares of the %ompany are Duoted on

arahi "to$ '


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1.# Busi!ess Vo$u%e

ey &inanial ?ata for the )ast &i5e Hears

4Ru*ees ;:::52:: 2::+ 2::< 2::= 2::>

ross premium 7,:,B7: 7,C0,C09 6,B17,B76 3,33B,07B ,C00,09B

''M(' A%%@(4.

2remium-net of reinsurane :,7:9,079 :,B07,131 6,631,C6: 3,06,31: ,C7,B7

Interest and other inome 1,:06,B:6 ,00C,337 1,BB,9B7 717,BB 6:9,B16

B,373,963 B,B1,6:B :,316,C33 3,7C9,:06 ,77,:61

%laims less reinsurane 1,99,B:1 1,97,:C9 BB7,393 7CB,9B0 :,1:9

%ommission and erite ba$ 2ro5ision fordoubtful debts on a5ailable for

sale fi


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1.& Pro'u(t $i!e

'&( )ife has a omprehensi5e range of produts, *hih has been de5eloped after

e. Islami &und 2roduts

'&( )ife;s produt range is the most ompetiti5e in the mar$et in terms of 5alue for

money! .he %ompany ontinuously re5ie*s its produt range to ensure that it remains at

the leading edge!

1. 0!it8)i!9e' Pro'u(ts

a 2rosperity for )ife

b 'duation 2lan

%apital ro*th 2lan

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d "a5ing 2lan

e 'ai5er-of-2remium 8>@2

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4(5. Ca*ita$ Groth Bo!'

It is a unit lin$ed single premium plan *ith no minimum fi


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A''itio!a$ Be!efits

.he additional benefit riders a5ailable *ith the '&( "a5ings 2lan are as follo*s+

• )ife are #enefit

• )ife are #enefit 2lus

• Additional .erm Assurane

• &amily Inome #enefit 8&I#

• ospital are

• >ai5er of 2remium #enefit 8>@2

• Medial eo5ery #enefit

• Inflation 2rotetion 8I2

4e5. E?e(uti,e Pe!sio! P$a!

It is a regular premium, (nit )in$ed 'ndo*ment 2oliy *here the

benefits are largely lin$ed to the 5alue to of the in5estment of the '&( Managed ro*th

&und in *hih a proportion of the premium is in5ested!

'nsuring that retirement is planned for is 5ital, espeially for those *ho are self-

employed or are *or$ing in a ompany that does not pro5ide a pension! @ther*ise, they

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*ill end up beoming one of the 5ast numbers of people *ho annot maintain a deent

standard of li5ing in retirement, thus negating a lifetime;s *or$!

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A''itio!a$ Be!efits

.his 2lan offers a range of additional benefits to help you tailor the plan to suit your

partiular needs!

• Inome #enefit 8I#

• Aidental .erm Assurane 8A.A


• >ai5er of premium benefit 8>@2

2. Ter% Assura!(e P$a!

.here are t*o types of .erm Assurane 2lan

a "eurity 2lan

b )oan 2rotetion 2alm

4a5. e(urity P$a!

.he plan is the ideal *ay of pro5iding a substantial amount of life o5er at

the lo*est possible ost for a speified period!

'&( "eurity 2lan is a term assurane ontrat, *hih allo*s you to pro5ide protetion

against the finanial onseDuenes of death at a 5ery lo* ost!

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A''itio!a$ Be!efits

• Inome #enefit 8I#

• Aidental ?eath and ?isability #enefit 8A??# or A??# plus



4-5. )oa! Prote(tio! P$a!

2robably the biggest finanial ommitment most of us underta$e is a

house or a business loan! #ut ho* is this loan going to be ser5ied if the inome flo*

stops or redues drastially should you die or suffer from a ritial illness Hour assets,

*hih you ha5e spent years, building up, may ha5e to be sold foribly to repay your loan!

.he '&( )oan 2rotetion 2lan, by pro5iding a apital sum on death and ritial illness,

an ensure that your loan *ill be repaid lea5ing your assets unenumbered!

A''itio!a$ Be!efits

.he follo*ing riders an be added to the main plan+

• )ife are #enefit

• )ife are #enefit 2lus

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http://www.efulife.com/products/riders.asphttp://www.efulife.com/products/riders.asp


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#. Criti(a$ I$$!ess Pro'u(ts

A((i'e!t a!' Hos*ita$i"atio! P$a!

.here is absolutely nothing better then being blessed *ith good health! o*e5er,

4o one an predit the future!

What ou$' ha**e! to you if you suffere' a! a((i'e!t or ha' to -e hos*ita$i"e'@

.he li$elihood is that you and your dependents *ould be ad5ersely affeted!

'&(;s Aident / ospitalization 2lan *ill help guarantee your finanial *ell being! .he

2lan *ill pay out ash on death, disablement or prolonged absene from *or$ as a result

of an aident or hospitalization due to an aident!

.he 2lan pro5ides a omprehensi5e range of benefits from *hih you an hoose! Hou

an also tailor the le5el of payments to your needs by being able to hoose up to 10 (nits

of #enefits!

3eath

>ith this plan, you an guarantee that your family reei5es a substantial lump

sum on your aidental death to help them maintain their standard of li5ing!

3ou-$e I!'e%!ity

If death ours as a result of an aident *hilst you are tra5eling as a fare-paying

passenger on a liensed publi on5eyane or on a ommerial airline, that

standard lump sum payment is doubled!

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Per%a!e!t Partia$ 3isa-i$ity

If you beome disabled as a result of an aident, ash *ill be paid to you

e


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&. Grou* P$a!

Although e5eryone has a need for life insurane, people in different life

stages may ha5e different needs! 'mployees *ant to ensure *hether

their families *ill be able to meet any finanial obligations and arry

out basi li5ing e. Is$a%i( Fo!' Pro'u(t

a 4oor 2lan

b Asasa 2lan

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4a5. Noor P$a!

%hildren are a blessing from the Almighty and mean a *orld to you!

'5ery parent *ants to gi5e their lo5ed ones a seure future and a life that is least

disturbed by finanial onstraints! Hou, as a aring parent need to hoose an in5estment

and protetion pa$age that an ater to all your reDuirements and an at as a smart

finanial tool no matter *hat unertainties life unfolds for you!

'&( )ife brings you N4oorN - a omplete finanial planning solution for you to plan

for your hildrens future eduation and marriage! .he plan helps you aumulate a fund

o5er a sa5ings period *hih an be used to finane your hildrens ollege or uni5ersity

eduation, or marriage e


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lients in the form of N#onus (nitsN! .hese #onus (nits *ill be redited

to the '&( Aitemad ro*th &und to enhane the ash 5alue of the plan!

As a ser5ie to soiety, you may also instrut '&( )ife to utilize your

share of the surplus for a soial ause and donate it to a haritable

institution!

4-5. Asasa P$a!

)ife is the greatest di5ine gift and gi5es you the opportunity to li5e it by fulfilling your

dreams! .hese dreams are your assets and dri5e you to plan aordingly! >hether it is

your areer, marriage, hildrens eduation or your retirement, planning for

the future is the $ey to suess! At eah step in life you reDuire a finanial

planning tool that an fulfill your and your familys needs *ith ertainty!

'&( )ife brings you NAsasaN - a high 5alue sa5ings and protetion produt

that ensures you ahie5e your dreams for your lo5ed ones!

The to 'isti!uishi! features of the *$a! are6

i! 4e* unit lin$ed fund *ith Ninterst free in5estmentsN! .he in5estments

inlude Islami mutual funds, appro5ed eDuities, term deposits in Islami

#an$s and "u$u$ #onds! .his ne* fund has been named N'&(

Aitemad ro*th &undN 8A&! As the name suggests, Aitemad 8meaning

Trust outlines the basi philosophy of '&( )ifes business and all its

finanial planning solutions!

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ii! Alloation of #onus (nits based on e


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CHAPTER 2

2. ORGANIZATIONA) TR0CT0RE

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CHAPTER #

#. TR0CT0RE OF THE 7ARETING 3EPART7ENT

#.1 Nu%-er of the e%*$oyees or9i! i! the %ar9eti! 'e*art%e!t

#.2 7ar9eti! O*eratio!s

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#. TR0CT0RE OF THE 7ARETING 3EPART7ENT

31

F i e $ ' F o r ( e 7 a ! a e % e ! t

CHAIR7ANCHAIR7AN

"enior #ranh Manager

"enior #ranh Manager

"enior "ales %onsultant"enior "ales %onsultant

Assistant #ranh

Manager Assistant #ranh

Manager

#ranh Manager #ranh Manager

7a!ai! 3ire(tor Chief

E?e(uti,e7a!ai! 3ire(tor Chief

E?e(uti,e

Natio!a$ a$es

3ire(torNatio!a$ a$es

3ire(tor

(nit Manager (nit Manager 2roessor 2roessor

%ashier %ashier

elperselpers

roup Manager roup Manager

"enior egional

Manager "enior egional

Manager

Area 3ire(torArea 3ire(tor

egional Manager egional Manager

"ales %onsultant"ales %onsultant


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#.1 Nu%-er of E%*$oyees Wor9i! i! the 7ar9eti! 3e*art%e!t

.here are o5er 100 employees *or$ing in the mar$eting department in Multan! .he posts,

*hih are mentioned here, are needed the sales fores, *hih are *or$ing in the field!

r.

No

3esi!atio! No of a$es For(e

Reuire'

Tarets Per

Duarter

1. "#M CC C la

2. #M 3: 1 la

#. A#M 6 1: la

&. (M 16 09 la

There is fo$$oi! offi(ers are or9i! i! 7ar9eti! 7a!ae%e!t 3e*art%e!t

4umber of "!#!M +

4umber of #!M + 1

4umber of A!#!M + C

4umber of (!M + :

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#.2 7ar9et O*eratio!s

7ar9eti! O*eratio!s Hierar(hy

33

Re*ort to Hea' Offi(e

ara(hi.

Re*ort to Hea' Offi(e

ara(hi.

7u$ta!

City

7u$ta!

City7u$ta!

a!

7u$ta!

a!7u$ta!

Pio!eer

7u$ta!

Pio!eer ahia$ahia$ 7u$ta!

Ca!tt.

7u$ta!

Ca!tt. 7u$ta!

Fort

7u$ta!

Fort

e!ior Bra!(h 7a!aer

4B75

e!ior Bra!(h 7a!aer

4B75e!ior Bra!(h 7a!aer

4B75

e!ior Bra!(h 7a!aer

4B75

0.70.7

A.B.7A.B.7

A.B.7A.B.7

0.70.7

0.70.7

0.70.7

B.7B.7

A.B.7A.B.7

A.B.7A.B.7

0.70.7

0.70.7

A.B.7A.B.7


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CHAPTER &

&. F0NCTION OF THE 7ARETING 3EPART7ENT

&.1 7ar9eti! tratey

&.2 Pro'u(t tratey

&.# Pri(i! tratey

&.& 3istri-utio! tratey

&.> Pro%otio! tratey

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&.17ar9eti! tratey

.here are t*o types of mar$eting strategies, *hih are used in '&( )ife )td!

1. eneral mar$eting strategies

2. "peifi mar$et strategies

1. Ge!era$ 7ar9eti! trateies

A general desription of the type of mar$eting strategy the organization intends to

employ! .here are four steps in5ol5ing in the general mar$eting strategies!

a 2ositioning strategies

b 2rodut differentiation strategy

2rie Duality differentiation strategy

d Mission mar$eting strategy

2. *e(ifi( 7ar9et trateies

A detailed desription of the mar$eting mi


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iii. ?iret mar$eting

i,. "ales promotion

,. 2ubli relations

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&.2Pro'u(t tratey

Pro'u(t P$a!!i!/ 3e,e$o*%e!t 7a!ae%e!t

2rodut de5elopment is a strategy that see$s inreased sales by impro5ing or modifying

present produts or ser5ies! 2rodut de5elopment usually entails large researh and

de5elopment ehen an organization has suessful produts that are in the maturity stage of the

produt life yleF the idea here is to attrat satisfied ustomers to try ne*

8impro5ed produts as a result of their positi5e ehen an organization ompetes in an industry that is haraterized by rapid

tehnologial de5elopments!

3! >hen ma=or ompetitors offers better Duality produts at omparable pries!

6! >hen an organization ompetes in a high gro*th industry!

C! >hen an organization has espeially strong researh and de5elopment

apabilities!

"ee$ing inreased sales by impro5ing present produts or ser5ies or de5eloping ne*

ones! Inreased ompetition amongst proessors for supermar$et tender and also to

ompete *ith supermar$ets Go*n produt; has resulted in inreased produt inno5ation

and introdution of ne* produt!

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'&( )ife )td! is a traditional ompetitor in the insurane industry is an emerging mar$et

in 2a$istan! %onsumers ha5e signaled that they are interested in produt of life insurane

as they are prepared to pay premium for modified produts!

Management at all le5els *ithin an organization must reate their o*n plans utilizing

their o*n proesses to do so! &our types of planning are typially aomplished *ithin an

organization by different le5els of managementF these inlude "trategially, .atial,

@perational and %ontingeny 2lanning!

In '&( )ife )td! "enior '


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ii! .he analysis of e


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&.#Pri(i! tratey

'&( )ife deals indi5idually for all the ustomerslients! Mortality harges or ris$ rates

are ad=usted after the obser5ation and he$ing the doumentation! .he minimum

ontributions annual premium of all produts is s!1C000- e


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.here are three main elements of in5estment premium '&( )ife Assurane )td! that are

2 O 2rotetion

I O In5estment

' O '


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&.&3istri-utio! tratey

.here are se5en steps in5ol5es in the produt distribution strategy! .hese are

i! 2rospeting

ii! 2re-Approah

iii! Approah

i5! &at-finding

5! "olution design / presentation

5i! andling the ob=etions

5ii! %losing

4i5. Pros*e(ti!

.he name of people on their o*n are not 2rospets! Although names from the basis form

*hih 2rospets an be found, they are really only suspets until suffiient information

has been obtained to Dualify them as 2rospets! 2rospeting is the proess of identifying

people to *hom to offer our produts and ha5ing the harateristis!

2erson needs our plans

2erson afford it

'ligible for plans 8age limit 1B years to :0 years

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Medially fit

'asily reahable

4ii5. Pre8A**roa(h

.he aim of the pre-approah is not to sell anything! .he ahie5able goal in this stage is to

reate interest and to arrange an appointment *ith the prospet!

4iii5. A**roa(h

.he approah is the first inter5ie* *ith the prospet! Hou should normally ha5e made an

appointment for this inter5ie* during the pre-Approah phase! .he goals of the first

inter5ie* are

.o de5elop a good, professional relationship

.o e


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2ersonal and &amily details

@upation and 'arnings

etirement planning

%urrent in5estment and sa5ing 8if any

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4,5. o$utio! 3esi! Prese!tatio!

After highlighting the needs then their solution is present!

4,i5. Ha!'$i! the O-e(tio!s

)isten arefully if the lient as$s Duestion, be sinere and gi5e the proper ans*er

aording to your ompany guideline!

4,ii5. C$osi!

.he logial time to attempt to lose *ould be right after you ha5e presented your solution

to the prospet and you ha5e determined that the prospet a$no*ledges those needs and

understandings and agrees *ith your solution!

The fo$$oi! ee9$y 'istri-utio! a!' *ro%otio! a(ti,ity is re(o%%e!'e'.

&ield hours &+

%alls =: 8of *hih 3: ne* alls

Appointment 1+

%losing inter5ie* 12

2roposals submitted :2

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4e* referene 2&

&.>Pro%otio! tratey

.o reah a target mar$et, the mar$eter uses three $inds of promotion tools!

1 %ommuniation hannels

?ialogue hannels

3 Monologue hannels

1. Co%%u!i(atio! Too$s

.he mar$eter uses ommuniation tools to deli5er and reei5e message from target

buyers! .hey inlude

8i! 4e*s letters 8ii! Magazines 8iii! adio

8i5! .elephone 85! Internets 85i! 2osters

85ii! "ales staff 85iii! reeting ards

2. 3ia$oue Too$s

8i! '-mail 8infoPefulife!om

8ii! .oll free numbers 80B00-33B00

#. 7o!o$oue Too$s

8i! %ommerial ad5ertisement on .ele5ision

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CHAPTER >

> Criti(a$ A!a$ysis

>.1 u((ess a!' Fai$ure of 3iffere!t Pro'u(ts of the

Ora!i"atio! i! the 7ar9et

>.2 7aor Co%*etitors of the Ora!i"atio!s

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> Criti(a$ A!a$ysis

.he Mar$eting ?epartment of '&( )ife is playing 5ery important role in the eonomy of

'&( )ife )td! Mar$eting department is a ba$bone of '&( )ife! )ot of "% 8"ales

%onsultant, (M 8(nit Manager, A#M 8Assistant #ranh Manager and #M 8#ranh

Manager are doing *or$ on salary / ommission basses! %urrently, in 009, 1C "%

Dualify the M?. in Multan roup! In 199 to 009, thousands "% *ere doing *or$ for

'&( )ife! .hey are pro5ided e


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.o reruit, super5isor and train eduated and dynami young persons as sales

onsultant from all *al$ of life!

.o $eep the osts *ithin reasonable limits!

Ho to Attra(t Ne Custo%ers

It is 5ery easy to attrat ne* ustomers if *e ha5e tangible produt in hand beause *e

an tell its tangible benefitsattributes to people! #ut in ase of '&( )ife Assurane )td!

mar$eting e


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>.1 u((ess Fai$ure of 3iffere!t Pro'u(ts of the Ora!i"atio! i! the

7ar9et

All the produts of '&( )ife )td! are suessful beause they are aording to the

reDuirements and needs of the people! .hey ha5e been designed by $eeping in 5ie* the

future needs of the people!

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>.2 7aor Co%*etitors of the Ora!i"atio!

.here are fe* ompanies *or$ing in the field of )ife Insurane in 2a$istan and these

ompanies are running in one of the system i!e!

1. Co!,e!tio!a$ yste%

2. 0!it )i!9e' yste%

i5 ".A.' )I&'

ii5 A)I%@ 8Amerian )ife Insurane %ompany

iii5 M'.@2@)I.@4

i,5 2AI".A4 2@".A) )I&'

2. 0NIT )INE3 TE7

i5. '&( )I&' A""(A4%'

ii5. 4JI 84e* Jubilee )ife Insurane

.here is another #ig roup is launhing in the field of Insurane %ompany is Pa98Datar

Fa%i$y Ta9afu$ )t'. .his ompany has already adopted the (nit )in$ed "ystem!

51

1. CONVENTIONA) TE71. CONVENTIONA) TE7


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Co!,e!tio!a$ yste%

.his system is onsist of

i! >ith 2rofit

ii! >ithout 2rofit >hole of )ife

iii! 'ndo*ment Assurane

2. 0!it )i!9e' yste%

'&( )ife introdued this system in 1996 in 2a$istan! RIt is an 'ndo*ment Assurane!

.his is transparent and digital system! In this system units are alloated to the life assured

as per urrent unit offer prie!S After that this system *as adopted by 4JI in 1997 and is

*or$ing under this system till date!

Offer Pri(e

.he prie at *hih poliyholder buys the units from the ompany is alled offer prie!

Bi' Pri(e

.he prie at *hih poliyholder sells the units to the ompany are alled bid prie!

Bi' Offer *rea'

R.he differene bet*een offering prie and bid prie is alled bid offer spread!S .he bid

offer differene is CE!

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CHAPTER =

=.1 Wea9!esses of the 7ar9eti! 3e*art%e!t

=.2 Co!($usio!s Re(o%%e!'atio!s

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=.1 Wea9!esses of the 7ar9eti! 3e*art%e!t

Among the *ea$nesses are the go5ernment interferene in in5estment poliies,

860 Eof in5estment is $ept for the seurity in "tat #an$ of 2a$istan, it is diretly

under the ontrol of the ministry of ommere!

Another problem faed by the @rganization is non-professional attitude by the

employees high degree of entralization is also a *ea$ness for the organization!

.he ma=or problem of @rganization is the persisteny of insurane poliies, *hih

means la$ing the ability to $eep the issued insurane poliies enfore for the

long period! .he indi5idual life insurane poliies are issued for a period of 0C to

C0 years on a5erage! At the beginning of eah poliy ma


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=.2Re(o%%e!'atio!s Co!($usio!s

Merit ertifiate should be gi5en on ahie5ing the presribed 5olume of rene*al

premium!

Attrati5e brohures should be prepared desribing the disad5antages of

surrenderslaps and sent *ith seond year premium notie!

&ield *or$ers training are 5ital to impro5e performane! .raining must be

imparted to all the employees to inrease their performane! .he persistent efforts

are needed to impro5e effiieny and produti5ity of the employees at different

le5els of management and the moti5ations program be initiated to indue the

*illingness of the *or$ers to do their best! .hey should not simply repeat *hat

earlier generation has done before! 'arlier generation has pro5ide them the

run*ay, no* the ne* generation should ta$e off *ith only the s$y as the limit and

s$y has no limits!

As '&( is introduing ne* produts $eeping in 5ie* the needs of the ustomers

so '&( )ife should gi5e speial attention to ustomer satisfation!

.he ompany must use national and pro5inial languages to inform and eduate

the people to realize the importane of insurane o5erage!

.o ma


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irresponsible attitude of the insurane personnel is the other ause that does not

allo* settlement of laims! .here is a nee to ontrol the system!

'&( )ife an play a 5ital role to de5elop insurane ideas through ad5ertisement

on the eletroni media or targeting the publi large!

.he role of information tehnology is 5ery important or the ompetiti5e edge of

any business but '&( )ife is not fully utilizing the I. resoures effiiently, so the

ompany has to ma$e strong net*or$ of omputer bet*een the prinipal offies

all o5er the ountry!

.he team onept should be adopted by the organization or effiient result in the

business and to inrease the o5er all performane of employees!

.he suggestion plan should be introdued by initing the employees and offies to

gi5e suggestion and ne* ideas! 'ah suggestion to be a$no*ledged and some

prize should be gi5en to enourage the ne* ideas! It is reommended that the

suggestion plan may be introdued at one le5el and they are authorized to gi5e

prize up to speified 5alue depending on any suggestion *hih redue osts and

impro5e effiieny, fae lifting et! be gi5en a to$en prize!

Insurane must be inluding as a sub=et at seondary and intermediate le5el

throughout the ountry in shools and olleges! It should be ompulsory sub=et at

#!%om and ##A le5el and the uni5ersities should pro5ide opportunities for

speialization in the field of insurane in M!%om and M#A li$e speialization in

the field of MI", Mar$eting, &inane and #an$ing!

As rural population onstitute 70E of the total population, so a good member of

the representati5es should be roam the rural areas and they must be trained *ith

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ad5ane ourses seminars and field assignments, beause they are ba$bone of the

insurane business!

In house ourses to impro5e the super5isory s$ills of deputy manager should be

onduted!

(rdu translation of the terms and onditions on the poliy

doumentssupplementary ontrats is inorporated!

.here is entralization of authority! .he diretors ta$e all the deisions only! '5en

managers on their on behalf annot ta$e the deision! #eause delegation of

authority reates responsibility! If the management *ill delegate some authority

than managers *ould feel themsel5es responsible so they *ould *or$ *ith zeal!

#y this diretors *ill spend their important time in forming poliies and *ill see$

opportunities for impro5ement! .his *ill help in reating onfidene among the

employees!

It is needed the refresher ourses for the employees time to time! "o the

employees an do *or$ effiiently! #y this produti5ity *ill also inrease!

.here is not any proedure for e5aluating the employees and hene there is no

e


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)ast thing, I am saying, the "enior Management to '&( )ife ltd!, in Multan %ity

to treat *ith the employees in a good *ay, not to 5ery harshly or stritly beause

in stress en5ironment no body an sur5i5e for long time espeially for the ne*

employees! @n that time ne* employees needed the moti5ation and the proper

guideline and attention for sur5i5ing! (nfortunately, defiienies of these and

stress en5ironment many ne* employees are left o5er the =ob 5ery soon, this is

big loss for the %ompany beause the ompany spent a lot of money on training

/ the refreshment ourses of the ne* and the senior employees!

I reommended for all the Management, for the better result, it is needed to reate

the ompetition and the moti5ations among the employees! .he en5ironment in

the offie should be pleasant! .his *ill inrease the effiieny and produti5ity of

the employees!

As the Insurane industry is in rises but '&( )ife is performing 5ery *ell in suh

diffiult eonomi onditions! .he a5enues are al*ays open for further impro5ement! I

hope that the suggestions gi5en by me *ill not only benefit the management for getting

business but the employees *ill also effiient in performing their duties!

.he performane of an organization is ulture dri5en and if you *ant to hange the

performane of organization you must hange the ulture of organization! .his fator is

of great importane! .he management should try to e5ol5e a ulture based on+

ard *or$

onesty

2rofessionalism

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%ustomer oriented

.here is a tremendous gro*th potential in the life insurane setor, as only BE mar$et

has been trapped so or against the *estern ountries *here almost half the population has

a5ailed of life insurane o5ers! .his an be inreased by more benefits to agents!

@rganizing a young and *illing field fore to organize an aggressi5e and effeti5e team

under the super5ision of suessful professionals should reate a strong base!

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