hasnain multan

of 69

  • date post

    09-Apr-2018
  • Category

    Documents

  • view

    218
  • download

    0

Embed Size (px)

Transcript of hasnain multan

  • 8/8/2019 hasnain multan

    1/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    EXECUTIVE SUMMERY

    In todays life Insurance has taken place as a need of human life because no part

    of our life remains untouched by the Insurance. State Life Insurance Corporationproviding services to the people of all ages and stages. The main objective SLIC is the

    welfare of the people of the country. Government nationalizes State Life Insurance

    Corporation at March 18, 1973 under the nationalization order1972. State Life Insurance

    Corporation plays a very important role in everyday lives of the people and also

    contributing a lot to the economy of the country by providing the government a lot of

    fund.

    The purpose of this internship possesses objectives like this study has given mechance to learn something new practically and this is also the partial requirement of the

    degree of BBA (Hons). This internship has given me chance to get the practical

    experience in this large organization, and this internship also endows me the knowledge

    of different departments and their working in the organization. Internship at SLIC is very

    beneficial for me, it provides me an opportunity to acquaint myself to the actual work,

    and place and writing of its project requires me to use all the skills, abilities during the

    internship. It makes me more practical, confident and professional.

    SLIC has the privilege of having the largest distribution network. Corporation has

    a continued training and development program to have a strong and trained field force

    and always makes endeavors by creating new employment opportunities for youths to

    join the corporation's field force by arranging seminars, workshops and by imparting

    training and conducting special courses. The primary purpose of the SLIC is to provide

    quality service to the policyholders of the Corporation. In this regard, measures were

    taken at all the zonal offices to improve the services such as prompt settlement of claims

    and handling of complaints of policyholders or their successors on priority basis. These

    steps not only have increased the level of customer satisfaction but have also contributed

    towards the retention of our existing policyholders.

  • 8/8/2019 hasnain multan

    2/69

  • 8/8/2019 hasnain multan

    3/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    INTRODUCTION TO INSURANCE SECTOR

  • 8/8/2019 hasnain multan

    4/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    INSURANCE SECTOR

    DEFINE INSURANCE

    Financial protection against loss or harm

    Insurance, in law and economics, is a form of risk management primarily used to

    hedge against the risk of a contingent 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 be

    thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An

    insurer is a company selling the insurance; an insured is the person or entity buying the

    insurance. The insurance rate is a factor used to determine the amount to be charged for a

    certain amount of insurance coverage, called the premium. Risk management, the

    practice of appraising and controlling risk, has evolved as a discrete field of study and

    practice.

    CONTRACT OF INSURANCE

    The insurance contract is a contract whereby the insurer will pay the insured (the

    person whom benefits would be paid to, or on the behalf of), if certain defined events

    occur. Subject to the "fortuity principle", the event must be uncertain. The uncertaintycan be either as to when the event will happen (i.e. in a life insurance policy, the time of

    the insured's death is uncertain) or as to if it will happen at all (i.e. a fire insurance

    policy).

    Insurance contracts are generally considered contracts of adhesion because theinsurer 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 unilateral, meaning that only the insurer makes legallyenforceable 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.

  • 8/8/2019 hasnain multan

    5/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    Insurance contracts are governed by the principle of utmost good faith whichrequires 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. This contrasts with the legal doctrine that

    covers most other types of contracts, caveat emptor.

    REASONS FOR INSURANCE

    Sometimes in life it is not possible to avoid the losses. For example People may

    become ill. They may die of illness or accidents or their homes or other property may

    undergo damage or theft. So in all these cases and they have to face the loss of income or

    savings. So insurance is a manner of financially insuring that if such an incident comes

    about then the loss does not affect the present well being of the person.

    DOCTRINES OF INSURANCE

    There should be a certain definite loss taken place at a known time, in a knownplace and from a known cause. Therefore the time, place and the cause of loss

    should be clear enough.

    The incident that represents the cause of the claim should be accidental or beyondthe control of the beneficiary.

    The size of the loss must be significant from the perspective of the insured.Insurance premiums should cover both the estimated cost of losses, plus the cost

    of policy, regulating the losses, and providing the principal required to logically

    assure that the insurer would be able to reimburse claims.

    The amount of premium should be affordable. The possibility of loss and the cost of compensation should be calculable or

    estimable.

    TYPES OF INSURANCE

    Below are two main kinds of insurances.

  • 8/8/2019 hasnain multan

    6/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    1. LIFE INSURANCELife insurance 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 lumpsum amount or an annuity.

    2. GENERAL INSURANCEIt includes automobiles insurance, business insurance, property insurance etc.

    i. AUTOMOBILE INSURANCEIn UK this insurance is called motor insurance. It compensates the loss or damage

    occurred to the vehicle. But in United States auto insurance policy is essential to legally

    operate a vehicle on public roads.

    ii. BUSINESS INSURANCEBusiness insurance protects the businesses against risks of losses and damages

    and compensates in case of loss.

    iii. PROPERTY INSURANCEThis type of insurance protects the property against the risks like fire, theft etc.

    This category also includes fire insurance, flood insurance, earthquake insurance etc.

    iv. FIRE INSURANCEIt is an insurance covering the damage to the property caused by fire.

    POLICY TERMS

    Insurance policies also an amount at which coverage ends, known as the policy

    limit. Most types of insurance specify the limit as an amount written in the contract.

    PREMIUM

    An insurance company sets a policys premium by multiplying a rate for each unit

    of insurance coverage by the total amount of coverage being purchased. Most people pay

  • 8/8/2019 hasnain multan

    7/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    insurance premium once or twice a year. Other people choose to make automatic monthly

    payments to their insurance company for a bank account.

    CLAIMS, BENEFITS AND DIVIDENDS

    Insurance contracts always contain a condition that the insured must provide a

    proof of loss in order to b paid. Insured individuals who have suffered losses and want to

    receive payments must notify their insurance company through a process called claim.

    Insurance contracts always contain a condition that the insured must provide a proof of

    loss in order to pay.

    BUYING INSURANCE

    People have many choices while buying insurance policies. They commonly

    chose an insurance provider based on several criteria. Some of the most important of

    these include:

    The financial stability of the insurance company. The price of policies. Detail coverage and service.

    Only a financial sound company can fulfill its promise to pay in all circumstances.

    Company with proven records of stability can provide insurance security.

  • 8/8/2019 hasnain multan

    8/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    INTRODUCTION TO STATE LIFE INSURANCE

    CORPORATION OF PAKISTAN (SLIC)

  • 8/8/2019 hasnain multan

    9/69

    6WDWH/LIH,QVXUDQFH&RUSRUDWLRQRI3DNLVWDQ,QWHUQVKLS5HSRUW

    _3 D J H

    INSURANCE INDUSTRY IN PAKISTAN

    The insurance industry in Pakistan, which should be described as a business rather

    than a