SLIC Report.docx

Chapter 1State Life Insurance Corporation of Pakistan1.1 Introduction.This report is based, upon the, findings, related, to the corporation's, operations, generally, and specifically, in the Human, Resource, facet. An, eight weeks, internship, was, conducted,, at, State Life Insurance Corporation of Pakistan, as a human resource intern in the Abbottabad Zone; as the, fulfillment, of the course requirement, of, the degree of Bachelor of Public Administration at Hazara University Mansehra. State, Life Insurance Corporation, of, Pakistan, is the leading, insurance corporation, in Pakistan, because it was formed, with, a bona, fide reason to benefit the people of Pakistan in a way that domestic money, should remain inside the, country, and, should, be, invested, in, a better manner, for, the purpose of infrastructure and development of the country. The assets, of State Life ,Insurance, Corporation, of Pakistan are worth, over, Rs. 200 Billion, and so is the Life Fund according to the book value each. State Life Insurance Corporation of Pakistan is completely owned,, by the ,Government ,of ,Pakistan,, ,and ,acts ,as ,a ,beneficiary organization for the people of Pakistan. It helps to generate funds for the developmental projects of the country in such a way that both the policyholders and the management of the country are benefited. State Life Insurance Corporation of Pakistan has a policy rule that 97.5 % of the profit is distributed amongst the policyholders whereas the rest 2.5 % of profit is utilized in the management functions. State Life Insurance Corporation of Pakistan was formed in 1971 under the article 11 (1) of the Life Insurance (Nationalization) Order 1972, (President Order No. 10 of 1972); Ministry of Trade, Federal Government of Pakistan. State Life is a market leader in both the terms i.e. in growth and as well as in the market shares. 1.2 Purpose of Studying the CorporationI had ,many ,other ,choices ,to ,conduct ,over ,my ,studies ,but ,still ,I ,chose ,this ,organization ,because ,this ,organization ,was ,completing ,the ,expectations ,that ,I ,had ,from ,any ,of ,the ,organizations,. ,Some ,of ,the ,important ,elements ,which ,were ,made ,necessary ,by ,me ,are ,as ,follows,: ,,1,. ,2,. ,1 ,Excellent ,Corporate ,Culture,,In ,the ,development ,of ,an ,enterprise,, ,the ,corporate ,culture ,plays ,a ,guiding ,role ,in ,consolidating ,employees,, ,enhancing ,the ,commitment ,to ,the ,organization ,and ,satisfaction,, ,encouraging ,employees ,willingness ,to ,work,, ,and ,constraining ,and ,guiding ,the ,behavior ,of ,employees,. ,In ,a ,word,, ,an , ,excellent ,corporate ,culture ,is ,the ,core ,competing ,force ,for ,an ,enterprise ,to ,maintain ,sustainable ,growth,. ,I ,joined ,State ,Life ,Insurance ,Corporation ,of ,Pakistan ,because ,I ,believe ,them ,posses ,and ,maintain ,a ,well ,established ,corporate ,culture ,where ,the ,employee ,values ,and ,standards ,are ,kept ,in ,high ,esteem,. ,,1,. ,2,. ,2 ,Applied ,Theoretical ,Practices,,,Since ,State ,Life ,Insurance ,Corporation ,of ,Pakistan ,is ,known ,to ,concern ,systematic ,processes ,and ,procedures ,as ,their ,mode ,of operation I believe it was a good opportunity for me to hone my management and marketing skills in an organization where these skills are highly valued. Besides this they provided me a good opportunity to act as a human resource person for the complete time period ,of ,eight ,weeks ,and ,provided ,me ,with ,the ,opportunity ,to ,practice ," ,Human ,Resource ,Management," ,theoretical ,practices ,in ,the ,practical ,form,.1.2.3 Experience in the MarketIn my career in the future Id like to work in the market of Pakistan so it was only natural that I conduct study ,on ,an ,organization ,that ,has ,its ,roots ,in ,the country ,since ,the ,making ,of ,the ,country ,and ,is ,well ,experienced ,in ,the ,local ,markets,. 1.2.4 Wide Range of BusinessState Life Insurance Corporation of Pakistan has wide range of operating,,, business ,units ,working ,under ,its ,umbrella ,and ,due ,to ,this ,level ,of ,diversification ,a ,lot ,of ,knowledge,, ,experiences ,and ,practices ,are ,transferred ,in ,between,, ,which ,can ,be ,a very learning experience for an intern. State Life Insurance Corporation of Pakistan has spread its roots throughout the country such that they had to divide the province in to, various Regions, then ,to ,divide ,regions ,into ,Zones,, ,then ,to ,Sub,- ,zones,, ,then ,to ,Sector ,Offices,, and then to area offices.Chapter 2Organization Overview2.1 Introduction to State Life Insurance Corporation of PakistanThe, Life ,Insurance ,Business ,in ,Pakistan ,was ,nationalized ,during ,March ,1972,. ,Initially ,Life ,Insurance ,business of ,32 ,Insurance ,Companies ,was ,merged ,and ,placed ,under ,three ,Bema ,Units ,named , ,A,, , ,B, ,and , ,C, ,Bema ,Units,. ,However,, ,later ,these ,Bema ,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.2.1.1Objectives 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.

2.1.2MissionTo 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.2.1.3Quality PolicyTo, ,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. 2.2 Board of DirectorsMr. Shahid Aziz SiddiqiChairmanMr. Shafqat NaghmiDirectorMrs. Spenta KandawallaDirectorMr. Aslam FaruqueDirectorMr. Amin Qasim DadaDirectorMr. Rasheed Y. ChinoyDirectorSyed A. Wahab MehdiDirectorSyed Hur Riahi GardeziDirectorMr. Akbar Ali HussainSecretary Board2.3 ManagementThere, ,is ,a ,huge ,hierarchy ,of ,the ,management ,in ,State ,Life ,Insurance ,Corporation ,of Pakistan ,and ,there ,are ,thousands ,of ,employees ,working ,under ,its ,umbrella ,it ,some ,of the, ,important ,managerial ,categories ,are ,mentioned ,below:

2.3.1Chairman TelephoneEmailMr. Shahid Aziz Siddiqi021-99202830chairman@statelife.com.pk021-992028702.3.2Executive DirectorsSyed Arshad [email protected]. Muhammad [email protected]. Shoaib Mir [email protected]. Muhammad Izqar Khan (Acting)[email protected] BoardMr. Akbar Ali [email protected] HeadsMr. Ansar [email protected] ManagerInvestmentMr. Sohail [email protected] ManagerResearch & AnalysisMr. Sher Ali Khan021-99204582General ManagerSpecial Project under Chairman Sectt.Mr. Muhammad Izqar [email protected] ManagerFinance & AccountsMr. Abdul Hafeez [email protected] ManagerInternal Audit & ComplianceDr. Muhammad Yousuf [email protected] ManagerPersonnel & General ServicesLt. Col. (Retd.) Mohsin Ali [email protected] ManagerReal EstateMr. Akbar Ali [email protected] General ManagerCorporate Affairs Mr. Saleem [email protected] General ManagerInformation TechnologyMr. Shahrukh [email protected] General ManagerActuarialMr. Nadeem Bessey [email protected] General ManagerGroup & PensionMr. M. Yahya Chamadia [email protected] General ManagerInspection & Evaluation Mr. S.H. [email protected] General ManagerMarketingMr. Nabil Ghafoor [email protected] General ManagerProject & MaintenanceMr. Nasimul [email protected] General ManagerReal Estate ManagementMr. Shahid Aziz [email protected] General ManagerLegal AffairsMr. Faisal [email protected] General ManagerPolicy Holder Services2.3.4Departmental HeadsDr. Mrs. Ghazala [email protected] General ManagerMedical Mr. Atta ullah [email protected] General ManagerStaff TrainingMiss Mumtaz [email protected] General ManagerGeneral ServicesMr. Mohsin Abbas [email protected] General ManagerField Man Power developmentMr. Muzafar [email protected] General ManagerCorporate Communication 2.3.5Regional ChiefsMr. Madad Ali Anjum042-99205121-2 [email protected] ManagerCentral Region Lahore Mr. Maqsood Ahmed 051-9204935 [email protected] General ManagerNorthern Region Islamabad Mr. Tahir Ahmed [email protected] General ManagerMultan Region Multan Mr. S.H.Raza [email protected] General ManagerSouthern Region Karachi 2.4 Business Units of State Life Insurance Corporation of PakistanState, ,Life ,Insurance ,Corporation ,of ,Pakistan ,enjoys ,an ,enormous ,position ,throughout ,the country ,due ,to ,its ,business ,units,. ,In ,each ,of ,the ,region and zone following business types are being observed. Individual Insurance Plans Group Insurance Plans Group Pension Plans Insurance Plans for Gulf

2.4.1 Individual Insurance PlansState Life, ,Insurance ,Corporation ,of ,Pakistan ,has ,a ,vast ,number ,of ,insurance ,plans ,for the individuals. The total number of Insurance Plans offered by State Life Insurance Corporation of, ,Pakistan ,is ,round ,about ,77,. ,Some ,of ,the ,important ,plans ,are ,mentioned below with some details about each. 2.4.1.1 Whole Life Assurance PlanIt, ,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 ,claim this plan. 2.4.1.2 Endowment AssuranceIts, ,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. For details of supplementary covers, please click here. 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. 2.4.1.3 Sadabahar PlanSadabahar, 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 an 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 ,femalesmay purchase this ,plan,. ,Terms ,offered ,under ,this ,plan ,are ,12,, ,15,, ,18,, 21, 24, 27 and 30 years.2.4.1.3.1 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,. ,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,: ,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,. 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.

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. ,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 ,Lifes ,Actuarial ,Surplus,.

2.4.1.3.2 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.

2.4.1.3.3 BonusesThis ,policy ,will ,participate ,in ,State ,Lifes ,surplus,. ,Rates ,of ,bonus ,applicable ,will ,be ,25,% ,higher ,than ,those ,on ,anticipated ,endowment ,plan,. ,The ,bonuses ,are announced ,after ,each ,two ,years ,and ,then ,these ,rates ,are ,identified,. ,The ,bonus ,once ,announced ,is ,attached ,to ,the ,policy ,and ,is ,not removed even if in future loss is observed.

2.4.1.4Anticipated Endowment Assurance PlanThis ,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 but ,also ,anticipate ,requirement ,of ,money ,relatively ,earlier,. ,TPP helps fulfilling these short-term ,financial ,needs ,without ,terminating ,the ,actual ,contract.2.4.1.5 Shad Abad Assurance PlanShad ,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. 2.4.1.6 Jeewan Sathi Assurance PlanThis 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.JSP is best suited for those married couples who want to enjoy insurance coverage for a comparatively lesser premium. Moreover, housewives who are otherwise not insurable can also enjoy the benefits of insurance policy through this plan. 2.4.1.7 Child Education and Marriage PlanChild Education & Marriage Assurance is a plan for the protection of childs 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. Please click here ,for ,the ,details ,of bonuses currently available ,for ,this ,plan,. ,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 Lifes ,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. Continue the policy in the ,same manner ,as ,earlier ,by ,switching ,the ,plan ,for ,the benefit of another child.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.Continue the policy without naming ,another ,child ,in ,which ,case ,the ,benefit of Refund of Premium 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.2.4.2 Group Insurance and Pension PlansThere are several group and pension plans and each of the plans has its own significance and characteristics,. ,Some ,of ,the ,plans ,and ,schemes ,are ,mentioned ,below,: ,,2,. ,4.2.1 Term Insurance Scheme2.4.2.1.1 Product subscription / featuresGroup ,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,.

2.4.2.1.2 What need does it fulfill?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.

2.4.2.1.3 The Benefits of PlanOn 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.

2.4.2.1.4 What riders can be added?There are many riders that can be ,attached ,to ,this ,plan,. ,Some ,of ,the ,commonly ,attached ,riders ,are ,as follows:

2.4.2.1.4.1 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 ,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.

2.4.2.1.4.2 A.D.B. Rider Under this rider the death benefit of an insured ,member ,is ,doubled ,if ,the death was caused by an accident,.

2.4.2.1.4.3 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.

2.4.2.1.4.4 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 ,the ,benefit,. ,Some ,restrictions ,apply ,during ,the ,first ,two ,years of ,coverage,.

2.4.2.1.5 Suitable ForThe ,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 a ,collective ,basis. ,,,2.4.2.2Provident Fund Insurance SchemeThe ,provident ,fund ,and ,insurance ,scheme ,is ,a ,plan ,that ,covers ,the ,both ,of ,the ,aspects ,such ,that ,the ,insurance ,and ,the ,benefits ,after ,the ,retirement. This gives the risk coverage ,at ,both ,of ,the parts ,that ,is ,it gives one completerisk coverage against the life and as well as it gives the benefit after if the job has expired or lay off. 2.4.2.2.1 Group Provident Fund Insurance SchemeGroup Provident Fund Insurance Scheme provides life insurance coverage to the members ,of ,the ,provident fund scheme ,of ,an ,employer. The amount of coverage of each member depends upon his age and the amount of his provident fund balance at any time.

2.4.2.2.2 What Needs Does It Fulfill?,Young employees normally have short ,service to their credit and consequently their Provident Fund balance is also quite meager. In case of unfortunate death of such a person the provident fund amount is not adequate for meeting the financial needs of the family such as schooling of the children, their marriage expenses and housing accommodation. Group Provident Fund Insurance Scheme is specially designed to meet such an eventually since the benefits under the scheme are on a sliding scale.,,

2.4.2.2.3 The benefits under a typical scheme are as follows:-AgeBracketBenefit

1830 4 times the fund balance.

31403 times the fund balance.

41502 times the fund balance.

51551 time the fund balance.

56591/2 times the fund balance.

Table 2.1The younger employees enjoy a higher multiple of the fund balance since the average amount of their fund balance is smaller but their requirement for insurance is greater.2.4.2.2.4 Benefits of Group Provident Fund Insurance SchemeOn the death of any member of the provident fund scheme his family is paid a lump sum amount equal ,to ,the ,amount ,of his fund balance on the date of his death multiplied by a factor depending upon the age of the employee at death. The factors applicable ,for ,a ,typical ,scheme ,are already given above however the employer in a particular case may adjust these ,factors ,to ,suit ,his ,own ,special ,requirements.If the scheme has 200 or more members then at the end of three years the fund is also entitled to some share in the profits depending upon the size of the scheme.

2.4.2.2.5 What riders can be added?Any rider which can be added with group term insurance plan can also be added with this plan such ADB, PTD (Accident), NDB or Critical Illness Cover.

2.4.2.2.6 Suitable forThe plan is suitable for any employer who maintains a provident fund scheme for his employees ,and who ,appreciates ,the ,benefits ,of ,providing ,the ,maximum ,possible insurance coverage to his employees. Some employers may appreciate the benefits of group insurance but they may avoid higher coverage under their group term insurance policy since the cost of this coverage would either have to be borne by them or if they recover the cost from the salaries of their employees then some of the employees might object to it.For such employers this scheme is very suitable since it does not require any explicit premium contribution from the employer or the employees, instead the cost of the scheme is recovered from the annual investment return earned by the provident fund. In a typical case, if a fund is earning a return of around 12% per annum, then with the introduction of this scheme, this return may reduce to about 11 or 11 % per annum.

2.4.2.3.House Building & perquisites Insurance SchemeUnder 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.2.4.2.3.1 What need does it fulfill?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.

2.4.2.3.2 Benefits of Group House Building & perquisites InsuranceIn 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.

2.4.2.3.3 What riders can be added?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.

2.4.2.3. Suitable forThis 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.

2.4.2.4. Pay Continuation SchemeManpower 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. One of the functions of such schemes is to provide protection to the employees 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 employees family during his working life. The familys 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: - Suppose the pay of an employee is Rs 2000/- per month. If death takes place at age 47 then the benefits payable will be Rs 2000/- per month up to age 60, i-e., for a period of 13 years. Total amount payable Rs.3, 12,000/- 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/- Annual premiums will be calculated on the basis of the employees 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.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. The overall benefit is that if one has come across all the regulations mentioned then even if he is affected with any of the causes as a result of the recession or any other still he/she shall be provided with the same amount of salary as agreed in the policy.2.4.2.5. Group Endowment Insurance SchemeGroup 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.2.4.2.5.1 What Need Does It Fulfill?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 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.

2.4.2.5.2 Benefits of Group Endowment Insurance SchemeUnder 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.

2.4.2.5.3 Profit ParticipationThe endowment insurance is issued on a with profits basis. The same bonus rate is applicable as for the corresponding individual endowment insurance policies. It gives risk coverage both at the individual level and as well as the corporate level. If Whole Corporation needs same benefit simultaneously State Life will still guaranty it.

2.4.2.5.4 Premium RatesThe 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.

2.4.2.5.5 Surrender ValueThe policy acquires Surrender Value in respect of a member after insurance cover has been enforced for at least two years on that member and no premiums are in default.

2.4.2.5.6 Loan FacilityUnder 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.

2.4.2.5.7 Continuation PrivilegesIf 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.

2.4.2.5.8 What riders can be added?The ADB, PTD (Accident) and NDB can be added to this policy if desired. Against all these riders additional charges are to be paid by the claimers so that one ensures the benefits claimed against each of the rider.

2.4.2.5.9 Suitable ForThis 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.

2.4.2.6.Group Pension SchemeForeword we, at State life, have become increasingly aware of the predicament of progressive employers wanting to better the lifestyle of their employees by providing financial security and job satisfaction, but not being able to do so, due to lack of availability of avenues and opportunities. This booklet is a guide to the State Lifes Pension Scheme that enables an employer to provide substantial benefits to employees and ensure a higher state of well being for them. It explains the institution, administration and benefits of the pension scheme and with the help of expert professionals in our Pensions Division, we can assist you in availing it, in your own and your employees interest. Our representatives will only be too pleased to be of any service to you.2.4.2.6.1 IntroductionOnce the working life of an individual is over, or he has retired, what will he live on? This is a question which every individual faces during his working life and is of equal importance ,to ,a ,concerned ,employer,. ,Personal ,savings,, Provident Fund and Gratuity are the normal assets he acquires. If not spent prudently, these assets can fritter away in a short time.State lifes Pension Scheme is the only source which provides a steady monthly income, when other sources of income stop.This booklet explains step-by-step the nature of the Pension Scheme, how it operates and what its benefits are to the employer and the employees.

2.4.2.6.2 What is Pension Scheme,Basically it ,is ,a saving, or calls it a contribution, which is collected during the working life ,of an individual and ,invested ,profitably,. After retirement the individual is entitled to a steady monthly income from a fund built up from ,the ,earlier ,savings,. ,In a sense, it is a reward to the employee, granted today, while money is to be received on retirement.

2.4.2.6.3 Why a Pension SchemeWe advise a pension scheme due to following benefits to the Employees: After retirement when the monthly paid check stops, the individual starts receiving a regular monthly income in the form of a pension. While contribution to the scheme, the individual gets a tax concession. The individual, after retirement, need not fear of a drastic reduction in his standard of living. All pensions are completely tax-free. Retirement comes as planned and not abruptly as a shock.

2.4.2.6.4 Benefits to the EmployerThe benefits associated to the employer are as follows: Contributions to the Pension Scheme by the employer are treated as business expenses and deductible in full. The knowledge that at the end of the career, the employee will get a regular pension helps to build up his job loyalty and the adherence to the job, to the employers satisfaction. Employer does not have to find money to compensate an employee when he ceases to work. Shows that the Management cares for their staff and is concerned about their welfare. Attracts new employees. Retirement of personnel is planned in advance, removing uncertainty both for the employer and the employee. Promotion channels in the management hierarchy are unclogged.

2.4.2.6.5 Comparison with Provident Fund and GratuityThe comparison is given below between the provident fund and gratuity:

2.4.2.6.5.1 Provident FundThis is like a savings bank. The contribution of the employer as well as the employee along with interest accumulated over the years is handed over to the employee on his retirement.However, in case an employee wishes to leave before retirement is due, employers contribution may not have to be paid; or only part payment may be made.

2.4.2.6.5.2 GratuityGratuity is exclusively the employers contribution for the benefit of the ,employee. From half to a full ,months ,salary ,is ,credited ,for , , ,every year ,of service. Reserves are set aside in the balance sheet but they do not attract tax concession, unless it is a funded scheme. The security of the employee to receive the gratuity is dependent on the continued existence of the employer and his profits, except in case of a funded scheme.

2.4.2.6.5.3 Pension SchemeIn comparison with the aforementioned two retirement benefits the Pension Scheme has distinct advantages: Payments through Pension Scheme are guaranteed for life. A pensioner can look forward to his retirement with confidence and security. Pension Scheme is the only method through which regular income accrues to an employee after retirement. The payment of the pension is not dependent upon the fortune of the employer. Lump sum comparable to those received from Gratuity or Provident Fund, can still is drawn by commutation or the pension while maintaining a steady monthly income.

2.4.2.6.5.4 How State Life can help you with the Pension Scheme?State Life maintains a full-fledged pension Department capable of handling each and every scheme in the most competent and professional manner. It has actuaries, lawyers and other experts, besides offering a unified administrative, technical and investment service. An employer can relieve himself of the tedious and cumbersome work by using the professional service offered by State Life, the major ones being:

Designing a Pension Scheme according to an employers exact requirements, in addition to determining the rate of contribution etc. Preparation of explanatory documents, if required, for consideration by employees. Assisting the employers legal advisers with the preparation of Trust deed and Rules. Providing reasonable assistance in negotiations with the Central Board of revenue for approval of the scheme. Maintenance of Individual records of members of the scheme, their contributions, the employers contribution, and pension accrued etc. Facilities for payment of pensions, when due 2.4.2.6.6 SecurityAll policies issued by State Life are guaranteed and enjoy full financial security, backed by the Government under Article 35 of Life Insurance Nationalization Order 1972.

2.4.2.6.7 Payment of PensionThe pension will be payable by monthly installments; commencing from the retirement of member and ceases upon his death.

2.4.2.6.8 Guaranteed PaymentsBy incorporating a Guaranteed Pension period, payment can be ensured for a defined period say 5 to 10 years, whether or not a pensioner is alive after retirement, if, however, a pensioner survives the guaranteed period, pension will continue throughout his lifetime.

2.4.2.6.9 Supplementary BenefitsThey may be termed as supplementary, but are indeed those invaluable finishing touches that make the picture complete. Employees would not feel secure unless their families were provided for in the event of their untimely demise. At a little extra cost employees may be given peace of mind by providing these benefits, some of which are listed below:

2.4.2.6.9.1 Widow's Pension (upon death in service) The pension will be payable to the wife of a member if he dies while in service. Normally, a widows pension is one half of the members pension entitlement.

2.4.2.6.9.2 WIDOWS PENSION (upon death after retirement) The pension is payable to the wife if the member dies after retirement. In this case also a widows pension is one half of the pension the member was receiving. The widows pension, in either case would be payable for life but would cease in the event of remarriage.

2.4.2.6.9.3 Orphan's BenefitsThe inclusion of orphans benefits in Pension Scheme along with the widows pension, gives the scheme a level of completeness. A normal scale of orphans benefit is 33% of the widows pension per child, payable upon the childs attainment of age 18 or earlier marriage. Limit is imposed on the number of children who can claim such benefits.

2.4.2.6.9.4 Retirement AspectsPension will be payable to a member according to a predetermined scale on the normal retirement date fixed by the employer.

2.4.2.6.9.1 Early RetirementA member who retires before his normal retirement date on account of becoming incapacitated, or for any other reason, may be granted a reduced immediate pension to commence on the day following the actual date of retirement.

2.4.2.6.9.2 Late Retirement A member who remains in employers service after the normal retirement date will receive an appropriately increased pension on retirement. It will not exceed the amount of pension even though employee continue to remain employed after the maturity time period but still the actual amount will be provided.

2.4.2.6.9.3 Withdrawal BenefitsIf a member withdraws from the service of the employer before the normal retirement date due to any reason and without any entitlement to early retirement pension, his future contribution, or contribution made on his behalf, will cease. Benefits to be paid on withdrawal will depend upon the withdrawal from service rules of the scheme. In such a case one of the following procedures may be adopted:

2.4.2.6.9.4 Refund of contributionIf a member withdraws from the contributory scheme a refund is made of all the contributions made by the employee.

2.4.2.6.9.5 Deferred Paid-Up PensionA withdrawing member may be allowed a deferred paid-up pension of the amount accrued to his account on the date of withdrawal. The reduced pension will commence on his normal retirement date.

2.4.3. Insurance Plans for GulfIn gulf there is a complete setup of State life insurance corporation of Pakistan that deals both in the individual plans and as well as group plans. All the plans which are discussed above are provided in the Gulf for their residents along with the same kinds of benefits. 2.5. Operational StructureThe basic structure of the Corporation consists of Four Regional Offices, Twenty-Six Zonal Offices, a few Sub-Zonal Offices, 111 Sector Offices, and a network of 461 Area Offices across the country for Individual Life Insurance; Four Zonal Offices and 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 Policyholders 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.Figure 2.1

2.6. Major AchievementsThe 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 etc. The major achievements of State Life are as under:On the commencement of the operations, the Corporation took a very important step by effecting reduction up to 33% in the premiums on the past and potential Life Policies for the benefit of the Policyholders.State Life is profitable organization and it paid Rs.2.242 billion as dividend to the Government of Pakistan since its inception in 1972.State Life has played very vital role in the economy by providing 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 31.12.2007 stands at Rs.161.966 billions.Investment portfolio also includes investment in Real Estate which stands at a book value of Rs.2.331 billion as at 31.12.2007 whereas it fair value is around Rs.22.923 billion in the same period.The Paid up Capital increased from Rs.10 million in 1972 to Rs.900 million in 2007.The Premium income increased from Rs.0.317 billion in 1972 to 18.717 billion in 2007. Similarly Investment income including rental income increased from Rs.0.81 billion in 1972 to 17.505 billion in 2007.Total statutory fund of State Life stands at Rs.156.7373 billion in 2007 as against Rs.1.494 billion in 1972.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, 2007 the total number of policies enforce under individual life were 2.349 million and number of lives covered under group life insurance were 4.062 million.2.7. The Nature of BusinessThe State Life Insurance Corporation of Pakistan (the corporation) was incorporated in Pakistan on November 1, 1972 under the Life Insurance Nationalization Order, 1972. The corporations Principal Office is located at State Life Building No. 9, Dr. Ziauddin Ahmad Road, Karachi,. ,It ,operates ,in Pakistan through 26 zones for individual life business, 4 zones for group life business and in the gulf countries (comprising of UAE, Kingdom of Saudi Arabia and Kuwait) through zonal office located in Dubai (UAE).The corporation is engaged in ,the ,life ,insurance ,business,. ,For ,the ,purpose ,of ,the ,Life ,Insurance and to attain ,the ,core ,business ,activities ,State Life Insurance Corporation of Pakistan primarily focus upon its sales team that generate and sustain the business.In the country there are several ,businesses ,that ,too ,deal ,in insurance stuff and there are a great potential for the increase in the business and its customers ,but ,at ,the ,moment ,State ,Life Insurance Corporation of Pakistan is having above 54 percentage of the total market share throughout the country. 2.8. Main OfficesState Life Insurance Corporation of Pakistan has ample of offices throughout the country and are countless but still some of the major of the offices are mentioned as follows:2.8.1. Dera Ismail Khan State Life building,63-PCircular Road 2.8.2. Faisalabad State Life buildingGoal Market,Circular Road State Life building #2Liaquat Road 2.8.3. Gujrat State Life building,120-121G. T. Road

2.8.4. Hyderabad Gul Center164 Hyderabad Cantt State Life building50 Thandi Sarak 2.8.5. Islamabad State Life building Plot #7(Phase-1)Blue Area State Life building # 9,33-EBuland Markaz Peoples Media Foundation buildingSector G-8 Markaz State Life building #5,60-ABlue Area State Life building on plot # 5(PhaseI), China Chowk,Blue Area 2.8.6. Karachi State Life building # 5 & 5AAbdullah Haroon Road State Life Building # 1& AnnexI.I. Chundrigar Road State Life building #1A, 1B & ICI. I. Chundrigar Road State Life building # 2, 2A & 2B Wallace Road State Life building # 3Dr. Ziauddin Ahmed Road State Life building # 4 Shahreh Liaquat State Life building # 5CZaibunnissa Street, Saddar State Life building # 7M. A. Jinnah Road State Life building # 8Dundas Road State Life building # 9Dr. Ziauddin Road State Life building #12Abdullah Haroon Road Jason Trade CenterShahre- Faisal State Life building # 5BZaibunnissa Street, Saddar State Life building #11Abdullah Haroon Road 2.8.7. Lahore State Life building #1,23Shahrah-e Quaid-e-Azam State Life building #2Lytton Road State Life building # 4, 63 DRegant St.,Shahra - e Quaid e - Azam State Life building #5, 63Regal St. Shahrah-e-Quaid-e Azam State Life building #6, 2Regal St., Shahrah-e-Quaid-e Azam State Life building # 7Macloed Road, Patiala Ground State Life building # 9Bank Square, Shahrah-e-Quaid-e-Azam State Life building #10, 12Bank Sq., Shahrah-e-Quaid-e-Azam 2.8.8. Larkana State Life building1539/2 Ward C,Qaid-e-Awam Road 2.8.9. Mirpurkhas State Life building1312/1,Ward B2.8.10. Multan State Life buildingChowk Nawan Shahar 2.8.11. Peshawar State Life building #1The Mall 2.8.12. RawalPindi State Life building # 8Kashmir Road State Life building #1The Mall 2.8.13. Sukkur State Life buildingMinara Road 2.9. Major Riders those are attached to various PoliciesThere are many riders that one can attach to the policy of various kinds but some of the important riders are mentioned below. The benefits of each rider will be studied in the later chapters. AIB(Accidental Death & Indemnity Benefit) ADB (Accidental Death Benefit) FIB (Family Income Benefit) WP (Waiver of Premium Benefit) H & S(Hospital & Surgical Benefit) TIR(Term Insurance Rider) RPR(Refund of Premium Rider) GI(Guaranteed Insurability)

2.10 InvestmentsState Life Insurance Corporation of Pakistan invests its funds in accordance with the provisions contained in Insurance Ordinance 2000, Insurance Rules 2002 and SRO(309) K of 1970 as amended to date by the Government of Pakistan. 2.10.1Govt. Securities These include instruments issued by Government of Pakistan such as Treasury bills, Pakistan Investment Bonds etc. 2.10.2Approved Govt. Securities These include instruments as Wapda Bonds, Provincial Securities/TFCs etc. 2.10.3Loans These include loans in the form of Term finance certificates etc. 2.10.4Equities These include shares of listed and unlisted companies 2.10.5Immovable Property These include buildings, plots etc. 2.10.6Investment Portfolio 2008

Table 2.2As at 31-12-2008

(Rs. in millions)

ParticularsPortfolio

Govt. SecuritiesTFCs/Approved Govt.SecuritiesEquitiesBank DepositsInvestment propertiesPolicy Loans126,1881,33524,09715,7452,43713,268

183,070

Figure 2.2

2.10.7. Investment Income Table 2.3As at 31-12-2008

(Rs. in millions)

ParticularsPortfolio

Govt. SecuritiesTFCs/Approved Govt. SecuritiesEquitiesBank DepositsInvestment propertiesPolicy LoansOther Income 13,0841492,5236943421,3081,086

19,186

Figure 2.3

2.11. Bonuses: It is an amount of dividends given to the Shareholders of the Corporation. It is not the interest over what one has invested but it is the return on the investment. The Bonus rates are not fixed; they are changed after every two years looking at the earnings of the corporation; such that 97.5 % of earning is provided to the policyholders in the form of bonuses. Besides this some special kinds of additional bonuses are too announced to benefit the policyholder at maximum. For each of the plan there is a changed bonus rate. Some of the bonuses charts are attached in the appendix 1.

Chapter-3Human Resource Management 3.1 Structure of DepartmentsThe structure of State life insurance Corporation of Pakistan is the biggest amongst all. The basic structure constitutes of the following main headings:3.1.1 Board of DirectorsThere are five members of the board of directors under whom regional chiefs and whole corporation operates.3.1.2 Executive directorsThere are four executive directors who works accordingly as the board directs and they disseminate their orders into the corporate employees. 3.1.3 Regional ChiefRegional Chief is the main body to whom each person has to report in order to get the final targets. There are four main regions throughout the country and each of the regions in Pakistan has got its own regional Chief. The duties of Regional Chief are to keep complete information of his region such that assigned targets are being achieved and each person in the region is working as a group or a team.3.1.4 Zonal HeadsThe second to the Regional Chief is Zonal head. There are 26 zones throughout the country and each of the zonal head has to coordinate as a liaison between the regional chief and his zone such that there is complete coordination between all the zones in order to maintain the success. Zonal Head has maximum powers within the zone and he is answerable for all the dealings with in his zone.

3.1.5 Sector HeadEach ,zonal ,head ,has ,one sector head that assists him in managing the zone. He is the liaison between the management ,and ,the ,employees,. ,There are ,111 ,sector ,offices ,throughout the ,country,, ,but ,there are only 20 Sector Heads who have to take care of each of the office of group insurance ,and ,pensions ,plans,. ,He ,is ,to ,arrange the meetings for the targets and ,he ,is ,to ,ensure ,the ,training , ,for the new and existing employees. He enjoys liberty to do majority of the works for the organization like to increase the motivation by arranging various events and he is the person who monitors the performance of everyone in the down line.3.1.6 Sub Zonal Head / HR ManagerSub,- ,zonal ,Heads are ,the ,people ,who operate the sub zonal offices under each zone. They are subordinates to both Zonal ,Chiefs ,and ,Sector ,heads ,and ,is ,responsible ,to ,be answerable for all the events of their zones. Usually big cities are announced as sub-zones for the purpose of managing the business easily. Recently two new sub-zones are created in the Hazara Devision under Abbottabad Zone that is Haripur and Mansehra and both of these are allotted with own sub Zonal Heads. They are the incumbents who are responsible for the regularization of the employees and promoting the same to Area Managers. HR Managers and Sub Zonal Heads are one and the same thing in said organization. 3.1.7 Area ManagersThere are several of the areas under the zones and each of these is too provided with separate offices. ,There ,are ,583 area managers who are working under the sector offices. Area manager is promoted with the efforts of the sales persons themselves. Area manager is directly the team leader and under him there is a proper team that deals with the marketing, promotion and sales. He enjoys a unique liberty of permanent salary and the commissions as well.3.1.8 Sales ManagersIt is a temporary post which is assigned to the senior sales persons such that who are upgraded from the sales officers but still have not become the area managers or are not subject to be area managers. They too are paid as on the basis of commissions but the fact is that they will have to act as a team and as well as individual sales person. Their job is easier than that of the other sales persons because they get benefit from the sales of the sales persons under them no matter they work or not.3.1.9 Sales OfficersSales person is promoted to be a sales office as he achieves the first two years targets. He too has the benefit of the commissions and as well as the commissions earned from the sales of his team. There are at least twelve sales people in this team and each helps him to achieve his goals.3.1.10 Sales PersonSales person is also known as the sales representative and he is the life blood of the State Life and is responsible for the survival of the corporation in the market. Therefore each and every person of the State Life has to remain sales person for certain time period or to achieve certain targets. Sales persons have the toughest job amongst all the employees and have a vast number of it. On the daily basis there are so many sales persons hired to benefit the company as well as the people and to increase the sales. 3.2 Number of Employees working in the State Life at each levelAlthough there are so many sales persons who are joining and leaving the organization on daily basis but still there is a body who monitors at zonal basis that how many people have been hired and how many have been dropped. Therefore there is no exact number of the employees working in the state life insurance corporation of Pakistan; still the raw number of the employees is as under.Board of Directors:05Executive Directors:04Regional Chiefs:04Zonal Heads:26Sector Heads:111+20 = 131Area Managers:583Besides these there are so many of the sales managers, sales officers and sales representatives therefore it is difficult to provide their exact numbering.3.2. Human Resource Management:Human Resource plays a vital role in the success of every service organization. The positive attitude could only be created in a conducive environment, which can make the staff dedicated towards the organization and its objective.SLIC is the employer of choice. The whole SLIC family comprises of committed and dedicated members with passion to serve in their respective ,functional ,areas,. ,The Bank has challenging work environment where merit and performance help the individuals to explore their true potential. As a caring employer the Bank ,enables ,the ,employees ,to ,excel ,and ,grow in highly congenial employment conditions and culture. The career path is full of challenges and opportunities. The Bank has absolutely open culture where members share and communicate freely.3.3 HRM Mission and Values:The mission of HRM is to provide more talented Human Resource in all SLIC functional areas in relation to competition keep motivated all the employees and maintain total industrial harmony.3.4 SLIC Values: People make the organization. People collectively yield results. People have ambitions and aspirations to be distinguished and rewarded. People form the human capital to be developed and invested in.3.5 Roles of HR Department:There are lots of roles of Human Resource Management and some of them are as follows. HR management helps in recruiting the staff. Their main object is to search potential candidates. For this they try to attract these potential candidates by offering good salary package. HR management also conducts interviews and helps in decision making for selection of candidates. HR management plays important role in training the staff. They identify and select the employees who have the potential and need training. It helps the employees to be equipped with required and latest skills. HR management is also responsible for company's performance. It set department's objects aligned with organization objectives and try to achieve the task at required time frame. HR management compensates people and makes a plan to give rewards to deserving employees. HR management also helps in solving employees and customers problems. The HR Department helps in negotiating with employees and unions. HR management also motivate people/employees which helps the employees to stick and work for the company for a long time and make them company's loyal employee.3.6. Human Resource Planning:Human resource planning is the process by which management ensures that it has the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Human resource planning then translates the organizations objectives into the quantity and mix of workers needed to meet those objectives. Human resource planning can be condensed into three steps: Assessing current human resources. Assessing future human resource needs. Developing a program to meet future human resource needs.3.7. HR Practices:State Life Insurance Corporation of Pakistan adopts a number of HR practices, that are listed below: 3.7.1 Job Analysis:Job analysis is the process of defining the jobs within the organization and the behaviors that are necessary to perform those jobs. What minimum knowledge, skill, and abilities are necessary for adequate performance? How the requirements can be fulfilled? These are questions that job analysis can answer.Information ,obtained ,through ,job ,analysis allows management to draw up a job description and job specification. The former ,is ,a ,written ,statement ,of ,what a jobholder does, ,how ,its ,done,, ,and why its done. It typically portrays job content, environment, and conditions of employment; ,the ,job ,specification ,states ,the ,minimum acceptable qualifications an incumbent must possess to perform a given job successfully,. ,It ,identifies ,the ,knowledge,, ,skills ,and ,abilities ,needed ,to ,do ,the ,job ,effectively,. The job description and job specification are important documents when managers begin recruiting and selecting new hires. The job description is used to describe the job to potential candidates. The job specification keeps the managers attention on the list of qualifications necessary for and incumbent to perform a job and assists in determining whether candidates are qualified.3.7.2. Job Description: Each employee will receive a job description from the delegate detailing specific duties and responsibilities. He/She is required to fulfill his / her responsibilities as mentioned in the job description. This will help the organization Ensuring enhanced individual performance Monitoring and measuring of achievements Identifying both high and low performers Placement of right person on the right jobFor each individual employee the duties and responsibilities are defined in job description, which helps each one to improve his work because he knows how to perform their duties.SLIC,in order to achieve its organizational goals, need to have comprehend understanding of what each job entails and the skills, abilities and other credentials needed to perform these jobs.3.7.2.1 Annual Job Objective:The in-house development of Annual Job Objective (AJO) is the priority project on the agenda. The ,development ,and ,subsequent ,implementation ,of ,this ,project ,can ,only be achieved through team effort and ownership at grass-root level. AJO will assist the Management in enforcing principles of merit, accountability, justice and transparency its core benefits are: Ensuring enhanced individual performance Monitoring and measuring of achievements Identifying both high and low performers Rewarding high performers Career planning of employees Placement of right person on the right job Development of need based training system Improving job satisfaction, motivation and employee loyalty To enable us to make the AJO exercise meaningful, the job descriptions for all positions will have to be prepared, such as Regional Business Chief Regional Operations Chief Regional Risk Management Chief Regional Compliance Chief Branch Managers Branch Operations Managers

In the light of Job Descriptions, job objectives for Executives/Officers holding different positions in the field as well as at Head Office are to be prepared.The above exercise is an integral part for considering future reward/promotions. With the implementation of the above system, SLIC had significant improvements in performance and ensure enhancements in job satisfaction and employee motivation.

3.7.3 Job Specification: The job specification keeps the managers attention on the list of qualifications necessary for and incumbent to perform a job and assists in determining whether candidates are qualified or not. Job specification must be done according to Job description. Job specification is done for the following reasons To develop the criteria for potential pool of candidates To select he best among those pool of candidates To ensure that each candidate has the qualification required for that job. The job specification states the minimum acceptable qualifications an incumbent must possess to perform a given job successfully.

3.7.4 Job Evaluation:Job evaluation at SLIC is done by the manager depending upon the performance of the employees. Employees are evaluated with the help of employee evaluation form which provides the true picture of employee performance. Each departmental head evaluates the jobs and ranks it as per criteria. The common grouping to help out in tasks performance is: Executives Officers Sales Persons Secretarial staff Clerical staff Non clerical staff

3.8 Recruitment and Selection:The core recruitment objective at SLIC is to attract the high quality individuals at all levels to fulfill the business needs of each insurance company unit. The candidates are identified through direct unsolicited applications, advertisements in the newspapers, hiring services of head hunters/consultants, retrieving applications from our existing data bank and employee referrals etc.The hiring philosophy is based upon merit, and selection procedures are well defined and systematic. Recruitment/selection focus is to select the right person for the right job, with strong emphasis on honesty & integrity besides technical competence.3.8.1 Recruitment:Recruitment can be defined as the process of discovering potential candidates for actual or anticipated organizational vacancies. Every organization has its own recruitment policy. According to the recruitment policy of SLIC, the requirements are: Candidate must be a citizen of Pakistan He/She must be adequate enough to have FSC or FA Certification or relevant degree, He/She should have attained the age of 18 years but not exceeded the age of 35 years.3.8.2 Procedure of Recruitment:There are certain steps involved in the procedure in recruiting to SLIC. Applications are invited from candidates on prescribed forms against the vacant posts advertised in the newspapers. Application forms received are scrutinized and eligible candidates are called for written test. Test is conducted and candidates who qualify the written test are called for interview. Interviews are held at Sector Head office. After that the candidates have to undergo a medical check up by the prescribed doctor. Appointment letters are sent to the selected candidates, who have to present themselves before the Head Office for signing the following documents. Secrecy Bond Security Bond Service Agreement BondAppointed candidates are kept on probation for 3 months. 3.8.3 Recruitment Sources:Recruitment is the process of locating, identifying, and attracting capable applicants. Which sources management uses depends on the type or level of the job and the state of the economy. The greater the skill required or the higher the position in the organizations hierarchy, the more the recruitment process will expand to become a regional or national search.There are two sources of recruitment:3.8.3.1 Internal Recruitment Current Employees Former Employees3.8.3.2 External Recruitment Direct Recruitment (Advertisements) Employee Referrals College Recruiting Customers3.8.4 Recruitment Criteria:There are mainly four categories of personnel required for induction in SLIC. Details are enumerated as under:3.8.4.1 Experienced Insurers:The bank has to rely on induction of trained manpower available in the market. These insurers are selected from those who either approach directly or respond to the advertisements, in different grades commensurate with their qualifications and experience.3.8.4.2 Management Trainee Officers:The intake of young and qualified university graduates into any organization, on a regular basis, is a commonly practiced ,management ,technique,. ,The ,purpose ,is to establish a solid contact with the developments of the outside world by injecting fresh blood. These young employees bring in an amalgam of knowledge and talent and also help create an environment, within the organization, that is live with enthusiasm and novel ideas. 3.8.4.3Technical supporting staff:For recruitment of such staff while priority is given to the candidates from insurance companies and financial institutions, yet applicants from other autonomous, semi-autonomous and private institutions, who have good knowledge and exposure in the respective fields are also screened and selected. Some of the major classes in this category are: Secretaries Typists Assistants / Clerks Computer Operators3.9. Recruitment Procedure:As a part of our manpower development plan and depending upon the advance information available about permission for opening of new branches, aFORECAST shall be prepared, spelling out the manpower requirements. Taking stock of the existing applications, which have already been scrutinized and the desirable candidates are short-listed.3.9.1. Advertisement:Advertising requirement is given in the information media if required. Ads are given in two daily National Newspapers (Colored newspaper) Online advertisements Conducting a "Talent Hunt" in the local market.3.9.2 Job Description Documents:JDDs is a cornerstone of a meaningful employment relationship with each individual employee. For a company to achieve its organizational goals, it needs to have a full and complete understanding of what each job entails and the requisite skills, abilities and other credentials needed to perform the job. The employees, on the other hand, to perform well on the job, need a clear comprehension of the different functions and job responsibilities they have been assigned. This allows them to direct their energy and skills to maximum advantage, and lays the framework for an equitable and effective performance management system. Human Resource Division now maintains updated Job Description Documents for each unique role or position in the organization. It may please be noted that NoChangesin the Organ grams/Structure/Reporting Lines or Job Description Documents can be made without prior approval of HRD. All employees are, therefore, advised to refrain from making any changes to these documents. In case certain changes are required in the document/structure, the same may please be intimated to HRD, which shall send its approval of the same after due consideration. Line Managers/employees may print JDDs pertaining to their job role/position and get them signed off from their Line Managers. Whenever new employee joins the bank, his/her JDD should be printed from the Intranet and singed copy must be sent to HRD. Similarly, whenever employee has been assigned a new Job e.g. upon transfer, the new JDD must be signed off and submitted to HRD. In short, each employee must have a signed off copy of his/own JDDs of the duties that he/she is performing. This document will be utilized throughout the year for performance planning, monitoring and evaluating.3.10. Selection Procedure:Having obtained relevant information about candidates and carrying out a detailed scrutiny of their service record, proper synopsis will be prepared for each Branch/location. The synopsis will generally encompass following informationa) Personal Datab) Academic and professional qualifications.c) Experience/existing salaryd) Likely designation/salary to be offered.3.10.1. Venue Selection:Having completed all formalities specified above, the time and venue for selection would be determined and intimated to the selection board/committee and the candidates in advance.3.10.2. Basis of Selection:While interviewing the candidates, each member of the Selection Committee gives his opinion on Interview Feedback Report or CV. Selection is based on majority opinion and the obvious merit. Among other considerations, the criteria i.e. merit will be determined on the following basis: Educational Qualification Professional Qualification Place of residence vis--vis location of branch where staff is required. Experience in Insurance/Marketing. Experience in the position applied for vis--vis job description, in case of specialized positions. Past achievements in marketing etc. Result of the written test - if held. Result of the final interview.a) Candidates selected would be short-listed and taking into consideration the requirements of the Branch/Head Office as per approved, the positions will be filled in by offering the letters of appointments in the approved scales by the competent authority. However, experienced candidates drawing higher salaries could be considered for advance increments in their grade with the previous bank or could be taken in higher grade and offered employment accordingly.b) Candidates rejected by the Selection Committee would be politely informed if deemed necessary.3.10.3 Verification of Antecedents:It will be ensured that the antecedents of all employees are verified from their last employers and reports regarding their conduct, honesty and integrity are obtained particularly of those employees who served in financial institutions. Appropriate disciplinary action shall be taken against those employees who misquoted about their past experience, conduct and qualifications. 3.10.4Personal Record of Employees:a) A personal folder of each employee will be maintained which shall contain, duly completed prescribed application form, appointment letter and such other papers deemed necessary for his employment including the Staff Record Cards containing a summary of record of each personnel.b) The personal folder of all employees will be maintained at Human Resource Division for updating records. However, duplicate copy of personal folder respecting employees of the branches will be maintained at the branches also.c) Seniority list of all categories of employees shall be maintained by the Human Resource Divisiond) The Human Resource Division at Head Office will control / check all the personal folders of all employees.

3.11. Selection Device:Following are the selection devices, which are being adopted at SLIC. The application Test Interviews3.11.1 Application:SLIC requires handwritten applications from a candidate who is applying for the job. The reason for requiring hand written application is to check and verify it when the candidates are giving tests. After receiving the applications HR department shortlists the candidates.3.11.2 Test:SLICwhile hiring a new person relies heavily on the test. Even Interview is considered to be a formality that is just fulfilled, as pointed out by one of the employees of the organization. The test is based on objective and subjective approach and it includes questions regarding basic general knowledge, computer literacy, business and accounting. 3.11.3 Interview:The interview panel consists of 2-5 members and the interview is not very formal, they have an informal type of interview and they defined the word Informalas, where the candidate is made feel easier while answering questions. The interview panel/committee consists of 5 members as already mentioned, and these members include following persons from different departments: One person from Board of directors One person from Marketing Department One person from Commercial/Consumer Sales One person from Finance Department One person from HR department The main consideration in interview is given to: Academic Records Written and Verbal Skills Physical Appearance3.12 Employee Orientation:It brings employee familiarity with the organization.3.12.1 HR Induction:An induction is the process by which a member of staff is given the information they need and makes necessary contacts to enable them to do their job, to understand the organisation and how to operate within it, and to feel welcome into the new role. Inductions must take place for new staff joining the organisation, for staff that are transferring between divisions, and for new members of staff from other areas of SLIC. The responsibility for ensuring that inductions take place suits with the line manager.Starting a new job can be an exciting and challenging.SLIC recognizes that it can also be quite difficult as you are trying to get to grips with lots of new information and understand how things work within a new organization.Like most organizations SLIC has policies and procedures, which enable it to work efficiently and effectively. Importantly they ensure that employees are treated consistently and fairly.This Induction has been prepared with three main objectives: Enable you to settle into your new post quickly and effectively Assist you in meeting your responsibilities for managing staff Help you to familiarize yourself with the day-to-day workings of SLIC.Initially designed for new line managers, this course is also suitable to those individuals without direct report responsibility but where a good understanding of HR policies is necessary. A pack of documents containing key policy guides will be given to all attendees to retain for their own future reference.The induction provides a brief overview covering: Who your HR Team is and what we do? How to find HR information? Pay & Benefits Recruitment Induction Performance Management Managing Attendance Employee Relations Changes to contractual Terms & Conditions WorkshopsThe new comer is also informed about the company and its policies. Following information is provided to the new comer: The new comer is given copies of necessary documents He is informed about the department he will be working in He is informed that whom he has to report His immediate supervisorInformation Overload is avoided and the working policies are introduced gradually.3.12.2 Pre-joining Formalities:Once the employee is selected and appointment letter is being issued, following formalities to be completed: Submit the acceptance letter issued by the Human Resource Divisions within the time frame. Arrange the fitness report from the approved hospital. Report the designated branch.3.12.3 General Orientation:Representative from the training and development view the preview of the organization, the core values, the organizational structure, the policies that the new employee has to follow, salary and other benefits that the new employee will be eligible for. Employees are oriented to SLIC by: Dinners. Training. Farewell after the completion of training. Executive Managers checking of tasks and jobs performed.3.13 Training and Development:The bank has an Operations Department. It deals with the training and development of all level of employees.SLIC ensures that employees have the necessary skills to perform current and future jobs. Because of the new technology and the quality movement in this field, SLIC believes in work performed by teams. Hence, managers and employees develop skills to be successful in a team environment. Because many employees value work that is personally rewarding and does not interfere with non-work activities, the HR management also helps employees identify their work interests and goals and cope with issues such as balancing work and family roles. Human Resource deals with: Ensuring that employees have the skills needed to perform their current job Preparing employees for future work roles Identifying employees work interests, goals and values and other career issuesThe bank arranged high value customized training program for the selected mangers that which starts at least 2 months before the commencement of the New Year, in order to make it easy for the new employees to socialize. SLIC also conducts events such as seminars to help the female employees. In which female branch mangers of the bank from various regions participate.As a result today SLIC is on the top in terms of highest number of employees who obtained positions and passing the diploma examination. SLIC facilitates its employees with on the job training, conducting seminars and workshops, through job rotation technology based training along with off- job training. SLIC believes in pre/post training tests for existing employees and post training test for the new employees.Training is a process of continuous improvement, because of which significant results have been achieved. Development in concerned with the future needs rather than present needs. They develop their employees in staff colleges whenever they needed they place them on the jobs these management trainees are multi skilled and can perform each and every task whenever needed. SLIC grants incentives to those employees who improve their education. 3.13.1 Importance of Training:Money spent on training can provide huge returns to the company. Intensified competition, technological changes, and the search for improved productivity are increasing skill demands of employees. Skills deteriorate and can become obsolete if not enhanced through training.3.13.2 Assessing Training Needs:Ideally, employees and managers alike should be continually undergoing training to keep their skills current. In reality, few organizations have not made a commitment to providing their staff with continual learning, nor do employees voluntarily take the initiative to seek out training opportunities and SLIC is one of them. Training is provided on an as-needed basis, and the decision as to when that need lies with individual managers. The manager while assessing that whether the individual needs training or not ponders on the following points: New equipment or processes are introduced that may affect an employees job. A change is made in the employees job responsibilities. There is a drop in an employees productivity or in the quality of his or her output. There is an increase in safety violations or accidents. The numbers of questions employees ask or their colleagues increases. Complaints by customers or co-workers increases.

3.13.3 Training Methods:Most training takes place on the job. Some skill training is too complex to learn on the job. In such cases, it takes place outside the work setting.3.13.3.1 On -the -job Training:Popular on the job training methods include job rotation and mentor relationships. Job rotation involves lateral transfers that enable employees to work at different jobs. Employees get to learn a wide variety of jobs and gain increased insight into the interdependency between jobs and a wider perspective on organizational activities. The new employee works under the observation of an experienced worker, who acts as a model whom the newcomer attempts to emulate. Both job rotation and mentoring apply to the learning of technical skills. Interpersonal and problem solving skills are acquired more effectively by training that takes place off the job.3.13.3.2 Off the- job TrainingThere are a number of off the job training methods that are used to make available to employees. The more popular in practice with SLIC are classroom lectures, videos, and simulation exercise. Classroom lecture are well suited for conveying specific information. They can be used effectively for developing technical and problem solving skills. Interpersonal and problem solving skills may be best learned through simulation exercise such as case analyses, experiential exercises, role playing, and group interaction sections, complex computer models, are another kind of simulation exercise, which in this case is used to teach technical skills. Off the job training can rely on out side consultants, local collage faculty, or in house personnel. 3.13.4 Employee Development:SLIC ensures that employees have the necessary skills to perform current and future jobs. Because of the new technology and the quality movement in this field, SLIC believes in work performed by teams. Hence, managers and employees develop skills to be successful in a team environment. Because many employees value work that is personally rewarding and does not interfere with non-work activities, the HR management also helps employees identify their work interests and goals and cope with issues such as balancing work and family roles. Human Resource deals with: Ensuring that employees have the skills needed to perform their current job Preparing employees for future work roles Identifying employees work interests, goals and values and other career issuesEmployee development is a necessary component of a companys efforts to improve quality, to meet the challenges of global competition and social change, and to incorporate technological advances and changes in work design. SLIC works on the following types of training. Basic literacy skills Technical skills Interpersonal skills Problem solving skills Ethical training3.14. Compensation:Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality and customer service,. ,Als