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Page 1: State Life Insurance Report
Page 2: State Life Insurance Report

Financial institutions

(Abdul Haq Campus)(Abdul Haq Campus)

Page 3: State Life Insurance Report

A Report On:State Life Insurance Corporation ofState Life Insurance Corporation of

PakistanPakistan

Prepared For:Sir Sir Mumtaz HassanMumtaz Hassan

Prepared By:Syed Tufail HaiderSyed Tufail Haider

Roll No:12041771204177

DATED:1111thth, November, 2015, November, 2015

Page 4: State Life Insurance Report

TABLETABLE OFOF CONTENTSCONTENTS

S.No Topic Page No

01 Executive summary 1

02 Introduction 203 Insurance- Definition & its Types 3-5

04 State Life Insurance Corporation- Brief History 6

05 Objectives, Mission & Quality policy 7

06 Major Achievements 8

07 Organizational structure 9-1008 Financial Highlights 11

09 Income Statement & Balance sheet 12

10 Future Outlook 13

11 Procedures of Policy holder services (PHS) Department 14-18

12 Recommendations 1913 Conclusion 20

14 Appendix (A) 21

15 Bibliography 22

16 Index 23

Page 5: State Life Insurance Report

EXECUTIVE SUMMARYEXECUTIVE SUMMARY  

If we want to explain Insurance in a single line so we can say thatIf we want to explain Insurance in a single line so we can say that ““Financial protection against loss or harmFinancial protection against loss or harm”. In today’s life Insurance”. In today’s life Insurance has taken place as a need of human life because no part of ourhas taken place as a need of human life because no part of our   lifelife remains untouched by the Insurance.remains untouched by the Insurance. Insurance has evolved as aInsurance has evolved as a process of safeguarding the interest of people from loss andprocess of safeguarding the interest of people from loss and uncertaintyuncertainty..I have completed this report on State Life Insurance Corporation ofI have completed this report on State Life Insurance Corporation of Pakistan,Pakistan, State Life Insurance Corporation of Pakistan (SLIC) has aState Life Insurance Corporation of Pakistan (SLIC) has a solid foundation since 1972 in Pakistan, and main objective is tosolid foundation since 1972 in Pakistan, and main objective is to provide its customers with safe, secure and trustworthy serviceprovide its customers with safe, secure and trustworthy service through wide range of products. State Life Insurance Corporationthrough wide range of products. State Life Insurance Corporation plays a very important role in everyday lives of the people and alsoplays a very important role in everyday lives of the people and also contributing a lot to the economy of the country by providing thecontributing a lot to the economy of the country by providing the government a lot of fund.government a lot of fund.In this report I have given a very brief review of profile of State LifeIn this report I have given a very brief review of profile of State Life Insurance Corporation of Pakistan and have discussed theInsurance Corporation of Pakistan and have discussed the procedures and working methods of the financial department ofprocedures and working methods of the financial department of State Life Insurance Corporation.State Life Insurance Corporation.I have made it possible to write each and every thing that I haveI have made it possible to write each and every thing that I have learnt during the completion of this report.learnt during the completion of this report.

Page 6: State Life Insurance Report

INTRODUCTIONINTRODUCTIONInsurance is defined as the equitable transfer of the risk of a loss,Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can befrom one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possiblythought of as a guaranteed small loss to prevent a large, possibly devastating loss.devastating loss.An An insurerinsurer is a company selling the insurance; an insured is the is a company selling the insurance; an insured is the person or entity buying the insurance. The person or entity buying the insurance. The insurance rateinsurance rate is a is a factor used to determine the amount to be charged for a certainfactor used to determine the amount to be charged for a certain amount of insurance coverage, called the amount of insurance coverage, called the premiumpremium. . RiskRisk managementmanagement, the practice of, the practice of  appraising and controlling risk, hasappraising and controlling risk, has evolved as a discrete field of study and practiceevolved as a discrete field of study and practiceThe purpose of this report is to get deeper knowledge of theThe purpose of this report is to get deeper knowledge of the procedures and working methods of a financial department of anyprocedures and working methods of a financial department of any financial institutions. In this regard we were advised to visit anyfinancial institutions. In this regard we were advised to visit any financial institution (whether depository or non-depository) andfinancial institution (whether depository or non-depository) and collect the relevant information regarding methods and procedurescollect the relevant information regarding methods and procedures of its any finance related department. I have visited the State Lifeof its any finance related department. I have visited the State Life Insurance Corporation of Pakistan (Head office- Karachi).TheInsurance Corporation of Pakistan (Head office- Karachi).The manager was really co-operative and he gave us not only hismanager was really co-operative and he gave us not only his precious time but also his valuable and practical insights on Letterprecious time but also his valuable and practical insights on Letter of credit as he has years of experience in this field.of credit as he has years of experience in this field.This report helped us a lot in getting deeper insights about the topicThis report helped us a lot in getting deeper insights about the topic and a great addition in our knowledge.and a great addition in our knowledge.

Page 7: State Life Insurance Report

INSURANCEINSURANCEDefinition:Definition:“An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, death or any certain defined event occurs in return for payment of a specified premium.”

Contract of Insurance:Contract of Insurance:”Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event in case of general insurance. The party bearing the risk is known as the insurer or assurer and the party whose risk is covered is known as the Insured or Assured”  

Insurance contracts are generally considered contracts of adhesion because the insurer draws up the contract and the insured has little or no ability to make material changes to it. This is interpreted to mean that the insurer bears the burden if there is any ambiguity in any terms of the contract.

Insurance contracts are aleatory in that the amounts exchanged by the insured and insurer are unequal and depend upon uncertain future events.

Insurance contracts are unilateral, meaning that only the insurer makes legally enforceable promises in the contract. The insured is not required to pay the premiums, but the insurer is required to pay the benefits under the contract if the insured has paid the premiums and met certain other basic provisions.

Insurance contracts are governed by the principle of utmost good faith which requires both parties of the insurance contact to deal in good faith and in particular it imparts on the insured a duty to disclose all material facts which relate to the risk to be covered.

Page 8: State Life Insurance Report

TYPES OF INSURANCETYPES OF INSURANCEThere are two main types of insurance which are as follows.

1) Life assurance

2) General insurance

1)1) Life Assurance:Life Assurance:Life assurance policy insures the life of the insured. The insurance company is legally bound to provide a monetary benefit to a decedent's family or the beneficiary after the death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum amount or an annuity.Life assurance include following types of insurance:

Whole of the life policy

Term life policy

Endowment policy

2)2) General Insurance:General Insurance:General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.It is of two types:

A. Marine Insurance

B. Non-Marine insurance

A.A. Marine Insurance:Marine Insurance:Insurance against loss by damage or destruction of cargo, freight, merchandise, or the means or instruments of transportation and communication whether on land, sea, or air. It is further divided into two

Ocean cargo Inland transit Marine hull

B.B. Non-Marine insurance:Non-Marine insurance: Property insurance Health insurance Home insurance Fire insurance etc.

Page 9: State Life Insurance Report

TYPES OF INSURANCE TYPES OF INSURANCE

Sources of Funds

premium

Dividend income

Interest

Equity

Uses of Funds

Corporate Bonds

Govt. securities

Shares

Properties

Insurance

Life Assurance

Whole of the life policy

Term life policy

endowment policy

General insurance

Non-Marine insurance

Health

Property

Education etc

Marine insurance

Ocean cargo

Inland Transit

Marine Hull

INSURANCE COMPANIESINSURANCE COMPANIES

Page 10: State Life Insurance Report

Brief History:Brief History:The Life Insurance Business in Pakistan was nationalized during March 1972. Initially Life Insurance business of 32 Insurance Companies was merged and placed under three Beema Units named “A”, “B” and “C” Beema Units. However, later these Beema Units were merged and effective November 1, 1972 the Management of the Life Insurance Business was consolidated and entrusted to the State Life Insurance Corporation of Pakistan.

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.

The basic structure of the Corporation consists of Six Regional Offices, Thirty Two Zonal Offices, a few Sub-Zonal Offices, 180 Sector Offices, and a network of 1073 Area Offices across the country for Individual Life Insurance; Four Zonal Offices and 6 Sector Offices with 21 Sector Heads for Group & Pension are involved in the Marketing of Life Insurance Plans policies and products offered by State Life and a Principal Office. The Zonal Offices deal exclusively with Sales and Marketing. Underwriting of Life Insurance Policies and the Policyholder's Services. Regional Offices, each headed by a Regional Chief, supervise business activities of the Zones functioning under them. The Principal Office, based at Karachi, is responsible for corporate activities such as investment, real estate, actuarial, overseas operations, etc.

Page 11: State Life Insurance Report

Major Objectives:Major Objectives: 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.

Mission:Mission:“To remain the leading insurer in the country by extending the benefits of insurance to

all sections of society and meeting our commitments to our policy holders and the

nation.”

Quality Policy:Quality Policy:To ensure satisfaction of our valued policyholders in processing new business, providing after sales service and optimizing return on Life Fund through a quality culture and to maintain ourselves leading life insurer in Pakistan.

Page 12: State Life Insurance Report

Major Achievements:Major Achievements:The 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.5.860 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 31.12.2014 stands at Rs.445.074 billions.

Investment portfolio also includes investment in Real Estate which stands at a book value of Rs.2.955 billion as at 31.12.2014 whereas it fair value is around Rs.26.562 billion in the same period.

The Paid up Capital increased from Rs.10 million in 1972 to Rs.3,000 million in 2014.

The Premium income increased from Rs.0.317 billion in 1972 to 76.342 billion in 2014. Similarly Investment income including rental income increased from Rs.0.81 billion in 1972 to 50.715 billion in 2014.

Total statutory fund of State Life stands at Rs.450.025 billion in 2014 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, 2014 the total number of policies enforce under individual life were 4.997 million and number of lives covered under group life insurance were 8.732 million.

Page 13: State Life Insurance Report

ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTUREIt is headed by chairman who is a CHIEF EXECUTIVE of the corporation and appointed by the government the other administrative level and authorities is give n below

Board of directors:Board of directors:It comprises of 7 members who are responsible for making plans and policies to achieve the set goals of the organization.

Executive Directors:Executive Directors:It comprises of 4 members responsible for implementation of policies and directives of the board of directors.

Regions:Regions:There are 4 regions in Pakistan headed by regional chiefs responsible for looking after all the zones under his administration.

ZonesZones:There are 26 zones in Pakistan headed by the zonal head responsible for procurement of business to achieve the set business target of the organization.The 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. Under writing of Life Insurance policies and the Policyholder’s Services. Regional Offices, each headed by a Regional Chief, super vise 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.

Page 14: State Life Insurance Report

Chairman

Executive Directors

Divisional Heads

Regional Heads

ZonalHeads

Departmental Heads

MANAGEMENT HIERARCHYMANAGEMENT HIERARCHY

Page 15: State Life Insurance Report

Total Prem ium IncomeTotal Prem ium Income

Total IncomeTotal Income

Total AssetsTotal Assets

Page 16: State Life Insurance Report

INCOMEINCOME STATEMENTSTATEMENT & & BALANCEBALANCE SHEETSHEET

Page 17: State Life Insurance Report

II

FUTURE OUTLOOKFUTURE OUTLOOK Takaful insurance is another line of business which offers bright prospects in the

future. The Takaful rules were published by the Securities and Exchange Commission of Pakistan (SECP) in 2005. In 2012, the SECP issued revised Takaful rules allowing Conventional Insurers to initiate window Takaful operations. State Life’s Board has also granted approval for initiating Takaful Insurance. In this regard, a working committee has been constituted to formulate a business plan to enter this market and setup operations accordingly. It is anticipated that State Life will be formally able to start Takaful Operations shortly.

Bancassurance is an alternate distribution channel to sell life insurance products through banks. This line of insurance business ensures wide coverage at lesser procurement cost. During the last quarter of 2012, this channel started its operations after State Life signed an agreement with the United Bank Limited and in 2013, also signed agreements with First Women Bank Limited and Bank Alfalah. State Life has started to gain firm ground in this channel and negotiations with more banks are underway. Recently, bancassurance agreements have been signed with National Bank of Pakistan, NIB Bank, Samba Bank and Summit Bank. Bolstered with State Life’s reputation in the market, its bancassurance channel is steadily showing sustainable growth and will undoubtedly contribute to significant all round improvement in the financial performance of state Life in coming years while providing a new avenue for business growth.

State Life entered into an agreement with the Government of Pakistan to provide Life and Health Insurance services to families covered under the Benazir Income Support Program (BISP). We intend to expand our Health Insurance Operations beyond the scope of BISP and provide competitive insurance packages that would ultimately provide diversification to benchmark services that dene State Life Insurance Corporation as the largest insurance provider of the country.

State Life has further enhanced the network of its zones in Pakistan. In this regard, new zones have been created at Jhang, Vehari, Jhelum and Narowal. Besides, the number of regions has been raised to six with the inclusion of Faisalabad Region. It is expected that these new centers will further contribute in expanding and carrying out the Pakistan business more convincingly

State Life also plans to enter this line of business. With the implementation of IT infrastructure enhancements, which is in hand, State Life would be in a position to enter this market segment also.

Page 18: State Life Insurance Report

POLICY HOLDER SERVICES (PHS)POLICY HOLDER SERVICES (PHS) DEPARTMENTDEPARTMENT

Introduction:Introduction:Policyholder service is one of the most important departments in stat life insurance. Better services to policyholders are of course, necessary and fundamental for carrying good reputation among policyholders, which help in retaining business and increasing new business. Therefore policyholder’s service, counters have been establishing in majority of the zonal offices to provide one window services to the valued policy holders. This department is divided into following sections: Claim Section

Surrender Section

Loan Section

Alteration Section.

Suspense Account Section.

Lapse & Revival Section.

Each and every section of this department plays an important role and they provide

different services to policyholders.

Claim Section:Claim Section:This section is always busy in entertaining claims of the policyholders. It has its own investigators and they investigate all claims and then recommend that a claim amount may be given to the nominees of the claimants or not. They also look into all such maturity claims and those policies which fall, mature all payments and the claim section of the policyholder services (PHS) give houses.Claim section has two further sections.

I. Individual life claims

II. Group & pension claims

I.I. Individual life claims:Individual life claims:In this section claims are of three types:

a) Maturity claims

b) Death claims

c) Other claims

Page 19: State Life Insurance Report

a)a) Procedure for Maturity Claims:Procedure for Maturity Claims:For collecting maturity benefits, policyholders are requested to send a written request along with following documents to their servicing State Life zonal office:

Original policy document Copy of National Identity Card Maturity discharge voucher duly verified by policy holder’s bank If policy holder’s signature has changed over the years, he/she should send us

their three specimen signatures of old and new styles.

Immediately on receipt of above documents, SLIC process the case further for payment of amount due, if any, against maturity claim under above policy.

b)b) Procedure for Death Claims:Procedure for Death Claims:Death claims are further divided into two categories. Early death claim and non-early death claims. Death within the first two years is known as early death and after that it is non-early death claim. In case of early death claim they do a comprehensive inquiry. This inquiry may be from the general public, hospital. Police station etc. then they make a report. In case of suicide within the first 13 months, they just pay the premium amount which is paid in installments.

In case of death the nominees should make death certificate for the policy

holder. It may be gross the hospital, Nazim, Political Agent, etc.

Then they issue 4 forms i.e. A, B, C. Form ‘A’ will be filled by the nominee.

Form ‘B’ is for Attended Doctor, Form ‘C’ if a policy holder is govt. employ,

than this form should be filled (All these forms should be attested).

If the amount is less than 300,000 then they call a meeting of zonal claim

committee (ZCC) and this committee makes decision.

If amount is more than 300,000 then they forward all documents to regional

claim committee (RCC Islamabad).

if amount is more than 500,000 then this is the case of central claim committee

after approving gram ZCC the claim file again to claim section, have they

issue cheques and make vouchers thus payment is made.

Page 20: State Life Insurance Report

c)c) Procedure for Other Claims:Procedure for Other Claims:Other claims are of two types:

Survival Benefit ClaimIf policy holder’s Anticipated Endowment Assurance policy has completed 1/3rd or 2/3rd term of the policy, policy holder can withdraw a sum equal to 25% of the sum insured of his/her policy.

Injury ClaimIf policy contains an Accidental Death & Indemnity Benefit (AIB) supplementary cover, and policy holder have sustained an injury as specified in the contract, he/she can apply to SLIC for an injury claim within 20 days of sustaining the accident.

Following documents are required to claim any of the above type:

1. Original policy document2. Copy of National Identity Card3. Survival Benefit discharge voucher duly verified by policy holder’s bank4. If policy holder’s signature has changed over the years, he/she should send us

their three specimen signatures of old and new styles.

Immediately on receipt of above documents, SLIC will process the case for payment of amount due, if any, against survival benefit claim under above policy.

Page 21: State Life Insurance Report

II.II. Group & pension claims:Group & pension claims:In this section claims are of two types:

a) Death claims.b) Injury or disability claims.

a)a) Procedure for Death Claims (G&P):Procedure for Death Claims (G&P): When a claim occurs first of all a letter is sent to claim department from employer

of that person about his injury or death. Then when death comes into notice of claim department first of all a letter of condolence is sent to employer and a set of claim forms is enclosed and some documents are initially required like:

Death certificate issued by the municipality in original or its photocopy

dually attested.

Physicians’ statement

A copy of policy report (if applicable)

Post mortem report (if applicable)

Attested photocopy of NIC of deceased.

When all these requirements are completed and sent to claims department then it is checked first of all that it is a new claim and it is not already paid. If there is no duplication then

For all new claims it is entered in computer data base and it is given a claim number and name of deceased and date of death is saved.

Separate file of every claim is prepared and all documents are attached in it.

Then file will be sent to premium collection department for entitlement certificate.

It shows the position of policy, sum assured, name and department of deceased and policy is in force and premium up to date is paid and if there is any requirement as:

Outstanding premium

Attested documentation is not complete

Any other requirement.

It is intimated to employer to fulfill all requirements. And on completion of all requirements further processing starts (Entitlement certificate is not required for government claims).

Page 22: State Life Insurance Report

If claim is payable and all requirements and documents are complete then it is approved by:

Claim committee: This involves three members Manager Claims, Manager

B&A, Manager PHS.

Audited.

Approved by zonal head

In case claim is exceeding Rs.10,00,000 then it is approved by Divisional Claim Committee in Karachi.

Once claim is approved and ready for payment firs a voucher is prepared and maintained. There are four types of vouchers i.e. for each claim there is a different voucher. Each voucher has its own and different color. It includes;

Surrender voucher

Loan voucher 

Death claim voucher 

Maturity voucher

Voucher is made by concerned section. After this these vouchers are sent to payment department. Payment department will send the voucher to audit department and they make the audit of all the vouchers and other related documents.

After approving from audit department these vouchers comes again to payment section. Usually payments are made in cheques, they make cheque first then the cheque is sign by this (payment department) and then these cheques are forward to concerned department (PHS department) for second sign.

The vouchers remains in the concerned department for the purposes of punching and cheques are issued.

Now cheque forwarding letter is sent to employer and cheque is dispatched to client.

When there is any dispute on payment of claims as if policy was not in force or there was outstanding premium. So claims department stops payment of claim then these cases can be filed in court or ombudsman office by client or nominee. So all these cases are also handled separately and complete documentation is maintained for these files. All this type of claims are called Legal claims.

Page 23: State Life Insurance Report

RECOMMENDATIONRECOMMENDATIONSLIC is market leader and it has so strong management structure and there is transparency of business management but I will like to give some recommendations. Better training courses should be arranged for the uplifting and improving the

quality of employees’ work.

There is also a problem of work overload for the employees and it should be

control properly so that the employees are motivated. Responsibilities are also not

equally divided between employees.

System and operations should be more defined and organized.

SLIC management should give more incentives to the staff because they are the

asset of company. There are so many incentives for officers but staff is ignored.

IT lapses should be improved.

Expenditures must be control, which are very high.

SLIC is advertising only on Pakistan TV and Radio Pakistan but now there are

uncountable private channels where SLIC is not giving advertisement. It should

properly advertise and Communicate to public about the products provided by it,

so that more customers will be attracted.

Islamic mode of insurance is emerging rapidly so SLIC should reorganize its

strategies and introduce some pure Islamic products or invest only in interest free

business.

Page 24: State Life Insurance Report

CONCLUSIONCONCLUSION  

It is concluded from the report and other documents which wereIt is concluded from the report and other documents which were

consulted for the completion of this repot, that State Life Insuranceconsulted for the completion of this repot, that State Life Insurance

Corporation is one of the leading corporations of the country. It hasCorporation is one of the leading corporations of the country. It has

provided a life Security Protection to about more than 6.00 millionprovided a life Security Protection to about more than 6.00 million

person of the country. Apart from this it provides self finance jobs toperson of the country. Apart from this it provides self finance jobs to

thousands ofthousands of the countrymen, and mobilized the country economic andthe countrymen, and mobilized the country economic and

financial resources, and also contributes a lot to Government in terms offinancial resources, and also contributes a lot to Government in terms of

providing funds. We hope that the corporation will play its importantproviding funds. We hope that the corporation will play its important

role in the development of National Economy.role in the development of National Economy.

It was splendid experience for me that make me familiar with businessIt was splendid experience for me that make me familiar with business

environment, procedures, working methods and culture of State Lifeenvironment, procedures, working methods and culture of State Life

Insurance Corporation. I have really gained a lot of knowledge duringInsurance Corporation. I have really gained a lot of knowledge during

preparation of this report.preparation of this report.

Page 25: State Life Insurance Report

APPENDIX (A)APPENDIX (A)Insured: Insured: The person known as the policy holder, a person with insurance coverageInsurer: Insurer: A company licensed to transact the business of insurance and issue insurance policies. . Policy: Policy: It's the written contract between an insurance company and its insured. It defines what the company agrees to cover for what period of time and describes the obligations and responsibilities of the insured.Premium: Premium: It's the amount of money a policy-holder pays for insurance protectionClaim: Claim: It's the notice to the insurance company that under the terms of a policy, a loss may be covered. Indemnity: Indemnity: Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.AgentAgent: A licensed person or organization that sells insurance and represents the insurance company to the policyholder. BrokerBroker: An organization or person paid by the policyholder to look for insurance on their behalf. DeductibleDeductible: It's the amount of the loss, which the insured is responsible to pay before the insurance company pays the benefits. Expiration DateExpiration Date: This is the date on which the policy ends. Grace PeriodGrace Period: A period (usually 30 or 31 days) following each insurance premium due date, other than the first due date, during which an overdue premium may be paid. All pro visions of the policy remain in force throughout this period. LimitLimit: It's the maximum amount paid by the insurance company under the terms of a policy. UnderwritingUnderwriting: The process of classifying applicants for insurance by identifying characteristics such as age, gender, health, occupation and hobbies. People with similar characteristics are grouped together and are charged a premium based o n the group's level of risk.

BIBLIOGRAPHYBIBLIOGRAPHY

Annual Report for the year 2014, State Life Insurance Corporation.

Annual Report for the year 2013, State Life Insurance Corporation.

Page 26: State Life Insurance Report

James C Van Horne, Fundamental of Financial Management,

Edition, Prentice-Hall International, Inc. P # 128 – 144.

Tahaffuz “An In-house magazine” State Life Insurance Corporation

of Pakistan, 2002, P # 5,6.

Tahaffuz “An In-house magazine” State Life Insurance Corporation

of Pakistan, 2003, P # 8,9,10.

www.Statelife.com.pk

www.wikipedia.org

www.businessdictionary.com

www.investopedia.com

Page 27: State Life Insurance Report

INDEXINDEXInsuredInsuredInsurerInsurerPolicyPolicyPremiumPremiumClaimClaimIndemnityIndemnityAgentAgentBrokerBrokerDeductibleDeductibleExpiration DateExpiration DateGrace PeriodGrace PeriodLimitLimitUnderwritingUnderwriting