The Life Insurance Commerce in Pakistan was municipalized during March 1972. Initially Life Insurance business of 32 Insurance Firms was amalgamated and positioned under three Beema Divisions named A, B and C Beema Units. However, later these Beema Divisions were fused and effective November 1, 1972 the Administration of the Life Insurance Business was united and commended to the State Life Insurance Corporation of Pakistan.
State Life Insurance Corporation of Pakistan is regulated by a Chairman and abetted by the Executive Directors selected by Federal Government. Up to July 2000 the Organization was run by Board of Directors instituted under Life Insurance (Nationalization) Order 1972. In July 2000, under Insurance Ordinance 2000, the National Government reconstructed the Board of Directors of State Life which runs the business of this Corporation.
The basic erection of the Company comprises of Four Regional Offices, Twenty-Six Zonal Offices, a few Sub-Zonal Offices, 111 Sector Offices, and a network of 461 Area Offices diagonal the country for Discrete Life Insurance; Four Zonal Offices and 6 Sector Offices with 20 Sector Heads for Group & Pension are tangled 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.
Major Achievements
The chief occupation of the State Life Insurance Corporation of Pakistan is to transmit out Life Insurance Industry; however, it is also convoluted in the other linked business accomplishments such as investment of policyholders' fund in Government sanctuaries, Stock market, Real Estate etc. The major triumphs of State Life are as under:
On the origination of the operations, the Corporation took a very significant step by carrying out 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.2.657 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 31.12.2009 stands at Rs.191.445 billion.
Investment portfolio also includes investment in Real Estate which stands at a book value of Rs.2.538 billion as at 31.12.2009 whereas it fair value is around Rs.21.681 billion in the same period.
The Paid up Capital increased from Rs.10 million in 1972 to Rs.1,100 million in 2009.
The Premium income increased from Rs.0.317 billion in 1972 to 28.367 billion in 2009. Similarly Investment income including rental income increased from Rs.0.81 billion in 1972 to 274.152 billion in 2009.
Total statutory fund of State Life stands at Rs.199.445 billion in 2009 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, 2009 the total number of policies in force under individual life were 2.895 million and number of lives covered under group life insurance were 3.754 million.
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
To remain the leading insurer in the country by extending the benefits of insurance to all sections of society and meeting our commitments to our policy holders and the nation.
Quality Policy
To ensure satisfaction of our valued policyholders in processing new business, providing after sales service and optimizing return on Life Fund through a quality culture and to maintain ourselves leading life insurer in Pakistan.
Mr. Shahid Aziz Siddiqi Chairman, Mr. Shahid Rahim Shaikh Director, Mrs. Spenta Kandawalla Director, Mr. Aslam Faruque Director Mr. Amin Qasim Dada Director Mr. Rasheed Y. Chinoy Director Syed A. Wahab Mehdi Director Syed Hur Riahi Gardezi Director Mr. Akbar Ali Hussain Secretary Board
Financial Products.
Endowment Plan.
Its 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.
Three Payment Plan.
This 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 1/3 and 2/3 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. three payment plan helps fulfilling these short-term financial needs without terminating the actual contract.
Sadabahar Plan.
Sadabahar 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 and 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 member of the general public, aged from 20 to 60 years nearest birthday. both males and females may purchase this plan. terms offered under this plan are 12,15,18,21,24,27 and 30 years.
State 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.
Govt. Securities
These include instruments issued by Government of Pakistan such as Treasury bills, Pakistan Investment Bonds etc.
Approved Govt. Securities
These include instruments as Wapda Bonds, Provincial Securities/TFCs etc.
Loans
These include loans in the form of Term finance certificates etc.
Equities
These include shares of listed and unlisted companies
Immovable Property
These include buildings, plots etc.
Investment Portfolio 2008
As at 31-12-2009
(Rs. in millions)
Particulars
Portfolio
Govt. Securities
TFCs/Approved Govt. Securities
Equities
Bank Deposits
Investment properties
Policy Loans
145,687
4,598
24,450
12,485
2,538
16,046
205,804
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Investment Income
As at 31-12-2009
(Rs. in millions)
Particulars
Portfolio
Govt. Securities
TFCs/Approved Govt. Securities
Equities
Bank Deposits
Investment properties
Policy Loans
Other Income
14,928
630
2,420
934
274
1,692
742
21,620
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