Internship Report on EFU life Assurance Ltd

ACKNOWLEDGMENT
First, all praises go to the Almighty Allah, the most gracious, the most merciful, the most kind and
generous to man and his action. And who granted me a wealth of knowledge, love and respect to
share with my fellow beings. He gave me courage to pursue my passion against all odds.
I owe my greatest gratitude to my parents for their continuous support, assistance, guidance, love
and patience without which I could not have completed this internship and report in such a short
span of time.
I am deeply indebted to my chosen organization, EFU life Assurance Ltd, and their staff who
participated in the study. I am especially thankful to all the staff for agreeing to provide the required
data and give me priceless knowledge.

Dedication
I dedicate my work to my family, my teachers, my colleagues and my friends. Without their support
it wasn’t easy for me to accomplish this task. Their assistance and encouragement made me capable
of attaining my goal.
Their moral support strengthened me and boosted up my capabilities that today I have proficiently
completed my task.

Table of Contents
Dedication .......................................................................................................................................................................................01
Acknowledgement .........................................................................................................................................................................02
CHAPTER NO: 01 .......................................................................................................................................................................02
INTRODUCTION……………………………………………………………………………………………………03
Overview……………………………………………………………………….………………………………….….03
InsurancePakistan…………………………………………………………………………………………………..…04
Terms In Insurance……………………………………………………………………………………………………04
Insurance v/s Assurance………………………………………..……………………………...…………….……..…05
4I’s in Insurance Service……………………………………..……………,…………………………………………06
History ……………………………………………………………………………………………………………..…07
Success story……………………………………….…………………………………………………………………08
Function………………….………………………………………………………………………………….……….09
Objectives …………………………………………………………………………………………………………….10
Purpose of Internship …… ………………………………………..…………………………………………………11
Research Methodology ………………………………………………………………………………………………11
Limitations……………………………………………………………………………………………………………12
CHAPTER NO: 02 .......................................................................................................................................................................14
Organizational Structure………………………………………………………..…………………………………...14
Chart of management……………………………………………………….............…………………….................15
CHAPTER NO: 03 .......................................................................................................................................................................17
Functional departments……….………………………………………………………………………………………17
CHAPTER NO: 04 .......................................................................................................................................................................23
Products and Services...………………………………………………………………………………………………23
CHAPTER NO: 05 .......................................................................................................................................................................29
SWOT Analysis of EFU Life Assurance……………………................................................……………………….29
CHAPTER NO: 06 .......................................................................................................................................................................35
CONCLUSION.............................................................................................................................................................................36
REFERENCE ...............................................................................................................................................................................37

of 39
Chapter No: 01
Introduction and History of
EFU Life Assurance

of 39
Overview
EFU Life Assurance Ltd Industry Life Insurance Founded 1992 Headquarters Karachi, Pakistan
Key people Rafique R. Bhimjee - Chairman, Taher G. Sachak - Managing Director Products
Unit-Linked, Conventional and Group Products Website www.efulife.com

of 39
Insurance in Pakistan
It is regulated under the Insurance Ordinance, 2000. In the past few years, it has transformed
into a developing and fast growing market that is generally divided into three components:
• Life insurance,
• General insurance and
• Health insurance.
The Government of Pakistan established the Department of Insurance in April 1948 as a
department of the Ministry of Commerce; the aim of this department is to take care of affairs
related to the insurance industry. Out of the 54% that Pakistan's service sector contributes to the
national GDP, insurance, along with transport, storage, communications and finance occupy 24%
of the sector.
List of notable insurance companies in Pakistan:
• Beema-Pakistann Company
• Adamjee Insurance Company Ltd
• EFU Life
• Jubilee Life Insurance Company Limited
• State Life
• Universal Insurance Company Limited
EFU Life, originally Eastern Federal Union Insurance Company Limited, is a Pakistan-based
life insurance company. It was the first insurance company in India founded in 1932 owned by
the Muslims based in Calcutta. After the independence of Pakistan in 1947 the company moved
to Pakistan and operated in East and West Pakistan.

of 39
TERMS IN INSURANCE:
INSURANCE:
The equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.
PARTIES INVOLVED:
• INSURER:
The company, selling the insurance.
• INSURED OR POLICY HOLDER:
The person or entity, buying the insurance policy.
Insurance v/s Assurance
The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general,
in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire,
theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to
happen. "Insurance" is the generally accepted term; however, people using this description are
liable to be corrected. In Pakistan, both forms of coverage are called "insurance", principally due
to many companies offering both types of policy, and rather than refer to themselves using both
insurance and assurance titles, they instead use just one.

of 39
4I’s of Insurance Service
The 4 I‘s refers to the different dimensions/ characteristics of any service. Unlike pure product,
services have its own characteristics and its related problems. So the service provider needs to
deal with these problems accordingly. The service provider has to design different strategies
according the varying feature of the service. These 4 I‘s not only represent the characteristics of
different services but also the problems and advantages attached to it. These 4 I‘s are…
INTANGIBILITY
Insurance is a guarantee against risk and neither the risk nor the guarantee is tangible. Hence,
insurance rightly come under services, which are intangible. Efforts have been made by the
insurance companies to make insurance tangible to some extent by including letters and forms.
INCONSISTENCY
Service quality is often inconsistent. This is because service personnel have different capabilities,
which vary in performance from day to day. This problem of inconsistency in service quality can
be reduced through standardization, training and mechanization.
INSEPARABILITY
Services are produced and consumed simultaneously. Consumers cannot and do not separate the
deliverer of the service from the service itself. Interaction between consumer and the service
provider varies based on whether consumer must be physically present to receive the service.
INVENTORY
No inventory can be maintained for services. Inventory carrying costs are more subjective and
lead to idle production capacity. When the service is available but there is no demand, cost rises
as, cost of paying the people and overhead remains constant even though the people are not
required to provide services due to lack of demand. In the insurance sector however, commission
is paid to the agents on each policy that they sell. Hence, not much inventory cost is wasted on
idle inventory. As the cost of agents is directly proportionate to the policy sold.

of 39
HISTORY
It was the first insurance company in India owned and run by Muslims targeted for the Muslim
populace. Abdur Rahman Siddiqui of Surat and Khonkar Fazle Haider of Murshidabad district
were the company's founders.
The company officially started as a general insurance company. In 1936, life business of the
company started with a paid-for business of about Rs.5.0 million. By 1946 the company started
to move ahead steadily but major upheaval of the century had occurred, in which Muslims all
over the sub-continent sustained immense loss, both of life and property after creation of
Pakistan. The EFU management transferred its registered office to Chittagong, East Pakistan
before the independence of Pakistan in 1947. The company completed a new Life Business of
Rs.4.5 million by 1947 and during 1948 transacted a total business of Rs.13.9 million.
In Pakistan, after 1972 the EFU operated solely as a general Insurance company. In 1992, the
Government of Pakistan opened up life insurance to the private sector and EFU was reorganized
and EFU Life Assurance Ltd. was incorporated in 1992 as the first private sector life insurance
company.
In 1992, the Government of Pakistan opened up life insurance to the private sector and EFU Life
Assurance Ltd. was incorporated in 1992 as the first private sector life insurance company. EFU
commenced writing group life insurance business in the same year, individual life business in
1994 and is today the largest life insurance company in the private sector in the country.
The Company has set up over 150 branches throughout the country and employs over 3500
persons in its sales force.

of 39
SUCCESS STORY
• 1992 EFU Life Launched
The Life industry was opened to the private sector and EFU Life was born in 1992. Mr. Roshen
Ali Bhimjee became the Chief Executive Officer and under his leadership EFU Life became the
largest private sector life insurance company in Pakistan.
• 1994: Launch of Individual Life business
Launch of Individual Life business – unit linked products for first time in Pakistan.
• 1995 to 1999:
Continuous growth and cementing position as market leader
• 1998: ISO Certified
EFU Life becomes ISO Certified; first in the insurance sector
• 2000: Insurance on credit cards
Introduction of insurance on credit cards eventually leading to a monopoly in this segment
• 2002: Billion rupee premium Company
Billion rupee premium Company; First private life insurance company to distribute profits to
shareholders; completed 10 years of successful operations.
• 2004: Bancassurance
Bancassurance started as an alternative distribution channel

of 39
• 2006: Call Center
Client servicing Call Center launched; Managed Growth Fund’s NAV crosses Rs. 5 billion, Paid
up capital increased to Rs. 850 million; highest in the private life insurance sector
• 2011: PRIMUS introduced
PRIMUS introduced – specialized service focused on high net worth clients
• 2011: Milestone Achieved
Achieved milestone of Rs. 10 billion gross premium
• 2012: Point of Sales system launched
Point of Sales system launched; Managed Growth Fund’s NAV crosses Rs. 30 billion
Functions
Life assurance is a contract between the policy holder and the insure, where the insurer promises
to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured
person. Depending on the contract, other events such as terminal illness or critical illness may
also trigger payment. In return, the policy holder agrees to pay a stipulated amount (the
"premium") at regular intervals or in lump sums. In some countries, death expenses such as
funerals are included in the premium; however, in the United States the predominant form
simply specifies a lump sum to be paid on the insured's demise. The value for the policy owner is
the 'peace of mind' in knowing that the death of the insured person or if he lives too long, or if he
becomes disabled, will not result in financial hardship. Life policies are legal contracts and the
terms of the contract describe the limitations of the insured events. Specific exclusions are often
written into the contract to limit the liability of the insurer; common examples are claims relating
to suicide, fraud, war, riot and civil commotion.

of 39
Objectives
• Retain leadership position in the market.
• Explore opportunities by introducing new products and diversifying current product portfolio.
Pursue continuous improvement and technological advancement
• Enhance corporate capabilities and motivation through skill enhancement, management
development and reward programs
Vision
Our Vision is to make EFU Life one of the most respected and successful financial
services organization in the world. Our strategy to achieve our vision is: build our core
capabilities, serve our clients beyond their expectations, adhere to our core values and be a good
corporate citizen.
Mission
We shall together build EFU Life into a dynamic and financially sound institution by:
 Working together as a team
 Continually improving our client service
 Creating an empowered and self-fulfilling culture
 Developing innovative products
 Adopting leading technology
Core Values
Our philosophy is to be the leading company with service above par, with integrity, excellence
and professionalism. Following are the core values:
• Integrity & Ethics
Conduct business with ethics, dignity, fairness and transparency.
• Professionalism
We believe professionalism is perfection. Business resources are utilized in a manner to achieve
optimum returns on resources.
• Corporate Social Responsibility
We donate to various institutions in health and education sectors, for improving the lifestyle of
common man.

of 39
Purpose of Internship
My purpose of internship is to complete the requirement of my study that is necessary for
completion of BBA. The other purpose of internship was to acquire skills and knowledge about
Marketing and Sales. It was a great chance for me to apply my skills and knowledge which I
have learned during BBA to the workplace.
Research Methodology
In order to attain more clarification regarding my internship in department, I designed a
questionnaire that comprised of about 20 questions. The questions were regarding customer
services by EFU LIFE Product and services. These questionnaires were solved by some of
customer on desk and some of contacts w9ho are part of the EFU Life services. The response
was quite good. The customers were satisfied with the services. Some of customers were not
satisfied as I discussed the reason they said that there is lack of giving Claim at the date of
maturity and the other reason the response of Agent was not good with them.
I have used both data collection methods. Primary as well as Secondary.
o Primary Data
o Secondary Data
o Internet
o Newspaper
o Broachers
o TV Commercials
o Questionnaire
o Interview

of 39
Limitations
In starting of my internship I had faced problem interviewing the employees because I was new
there and it takes time to adjust in new environment, and the second reason is that most of the
time employees are busy because of too much workload. The other problem which I faced there
is the environment was too hot sometimes because air conditions were not working properly and
it result in tiredness and it became hard for me to concentrate on work.

of 39
Chapter No: 02
Organizational Structure

of 39
Chart of Management
Chairman
 Rafique R. Bhimjee
Managing Director & Chief Executive
 Taher G. Sachak
• Directors
• Saifuddin N. Zoomkawala
• Jahangir Siddiqui
• Muneer R. Bhimjee
• Hasanali Abdullah
• Heinz Walter Dollberg
• Syed Salman Rashid
• Kamal Afsar
Corporate Secretary
• Syed Shahid Abbas
Appointed Actuary
• Omer Morshed, F.C.A., F.P.S.A., F.I.A.
Legal Advisor
• Mohammad Ali Sayeed, M.A.B.L.
Auditors
• KPMG.Taseer.Hadi.&.Co. Chartered Accountants, Karachi.

of 39
Chart of Management

of 39
Chapter No: 03
Functional Departments

of 39
Functional Departments
UNDERWRITING DEPARTMENT
Insurance underwriters evaluate the risk and exposures of potential clients. They decide how
much coverage the client should receive, how much they should pay for it, or whether even to
accept the risk and insure them. Underwriting involves measuring risk exposure and determining
the premium that needs to be charged to insure that risk. The function of the underwriter is to
acquire or to "write" business that will make the insurance company money, and to protect the
company's book of business from risks that they feel will make a loss. In simple terms, it is the
process of issuing insurance policies. Each insurance company has its own set of underwriting
guidelines to help the underwriter determine whether or not the company should accept the risk.
The information used to evaluate the risk of an applicant for insurance will depend on the type of
coverage involved. For example, in underwriting automobile coverage, an individual's driving
record is critical. As part of the underwriting process for life or health insurance, medical
underwriting may be used to examine the applicant's health status (other factors may be
considered as well, such as age & occupation). The factors that insurers use to classify risks
should be objective, clearly related to the likely cost of providing coverage, practical to
administer, consistent with applicable law, and designed to protect the long- term viability of the
insurance program. The underwriters may either decline the risk or may provide a quotation in
which the premiums have been loaded or in which various exclusions have been stipulated,
which restrict the circumstances under which a claim would be paid. Depending on the type of
insurance product (line of business), insurance companies use automated underwriting systems to
encode these rules, and reduce the amount of manual work in processing quotations and policy
issuance. This is especially the case for certain simpler life or personal lines (auto, homeowners)
insurance.
Marketing department
EFU Life has a marketing team which focuses on providing life insurance coverage to corporate
entities and bank clients. EFU Life recently launched a mass media campaign after a gap of
almost 5 years. Although EFU’s previous campaigns had a serious tone, the new approach is
lighthearted and humorous. The campaign was launched with a thematic ad; this was followed
by three additional ads for the marriage plan, education plan and retirement plan, which
according to EFU are its most important products.
A word from the client – Aman Hussain, Head of Marketing, EFU Life

of 39
On the objective of the campaign: “The purpose of the new campaign is to educate consumers
about the numerous benefits of life insurance that they can avail during their lifetime as well as
about the financial security it offers to one’s family when one is not around. We want to tell our
consumers that life insurance, because of all its benefits, should be an essential part of
everyone’s life. Our [three print] ads are focused on the different needs of our target market
starting from savings to financial planning for children in terms of education and marriage as
well as financial stability for when one retires.”
On launching a mass media campaign after almost 5 years: ”We launched a campaign for
EFU Life at the end of 2008; following this we have promoted the brand through selective
mediums, primarily print and radio with short bursts of our TVC every year in selected months.
With the significant annual growth that the life insurance industry has seen over the last five
years, we thought this was an apt time to come up with a fresh appealing message that highlights
financial protection and insurance in a way that will connect with the audience.
“We also felt that after 20 years of existence and being the leader in the private life insurance
sector, our brand at this stage could do with a refreshed look and feel while keeping the original
brand values intact. The new tagline “Life mein kamal karna zaroori hai” is an attempt in that
direction which elaborates on our earlier tagline ‘Zaroori Hai‘ which was launched in 2008.
On adopting a lighthearted and humorous tone: “Consumers generally perceive life insurance
as a very serious and complicated proposition. A common misconception is that it only provides
support at the time of death, and as market leaders, this is something that we wanted to change.
We wanted to present the concept in a celebratory mode as we think that any individual that
takes the decision to protect his family with life insurance deserves to be applauded and his
decision to be celebrated. We have consciously moved away from the traditional methods of life
insurance advertising that promote fear-appeal and rather we are focusing entirely on the
positives and celebrations in life.”
A word from the agency – Kamran Khan, Group Account Director, JWT Pakistan
On linking life insurance with success and achievement: “Life Insurance is deemed as a
negative term which is associated mostly with death. Insurance companies are seen as the bad
guys when in essence they are selling you a level of future security. Therefore it all boils down to
what’s in it for the consumer? Simple. If an individual is prudent and has what it takes to defy
the majority’s perception about life insurance, he/she deserves to be applauded. By his/her
family, friends as well as the world at large. A planned future is the possibility of a successful
one and embracing that is for the smart ones.“

of 39
Claims department
It is quite tough and complicated process in which insured do not have any participation other
than just providing the exact information of claim. Staff should treat it with full attention as
claim procedure of insurance company establishes its goodwill in market, and helps to generate
more and more business. Guidance, Expertise, Knowledge of when to bring someone else in, all
provide an important service to client.
Human resource department
Human Resource Department is the most important department on which the internal system of
whole organization is based. It motivates the employees and takes in account the incentives and
tactics required to keep the qualified and experienced employees with them and to make them
work in the way organization wants. HR Department have to perform the following duties:
• Resource hunting and Recruitment
• Coaching the employees i.e. Training, Development etc
• Motivation And Performance Appraisal
• Salary and Payroll Negotiations
• Employee Satisfaction and Feedback
Accounts department
The function of an accounting department is to look after the finances of a company. This can be
anything from paying bills to making sure that the employees that work for the company get
paid. The four main accounting functions are:
• Making Payments
• Payroll
• Receiving Payments
• Budgets

of 39
Accounts department of EFU insurance have divided its duties into different sections.
• Cash Collection Section
For the collection of cash, account department has a cash counter. When a policy holder comes
to pay his premium, they check whether the policyholder is able to pay his premium or not. If the
policyholder comes within 30 days after the due date, then he is considered as able to pay his
policy otherwise he is not able.
• Cash Disbursement Section
For cash disbursement, first the voucher is prepared, signed and prepared by authorized officer,
for the person to whom the payment is made. After these the cash book is maintained, cheques
are prepared, and these cheques are sent to concerned party. Bank Statement is prepared daily by
the authorized banker regarding total collection and payments of cheques i.e. realization of
cheques. These banks Statements are punched into the computer.
• Salary Preparation Section
In Account Department Salary of the employees is calculated. Different allowances are offered
to the employees. Loan facilities are available for the employees. Tax is deducted from salary. A
provision of recoveries of the loan is made.
• Budget Preparation Section Budget is prepared annually. Proposed budget is sent to principal
office. The funds of different heads of proposed budget are transferred to zonal office.
• Agents Commission Section
The commission of business brought by agents is calculated in the Commission Section.
The function of an accounting department is to look after the finances of a company. This can be
anything from paying bills to making sure that the employees that work for the company get
paid. The four main accounting functions are:

of 39
Making Payments
Making sure that all bills and claims are paid by the company, on time and also at the least cost
possible .If there is a discount for paying quickly, the accounts department will usually pay the
bills as soon as possible so that the company spends as little money as they possibly can. They
are responsible for all outgoing payments and making sure that what they are paying is correct.
Payroll
The accounts department has to ensure that the employees are all paid correctly and on time.
They also have to make sure that all of the employees are paying the right amount of tax and that
they have not made any mistakes with tax brackets and government payments on behalf of the
employees.
Receiving Payments
The accounting department must also receive payments and make sure that these are all
processed correctly. These will all be payments for the services or products the company has
provided and they must ensure that they have paid all relevant tax. There will also be an element
of chasing up payments and making sure that all of the payments are received when they should
be.
Budgets
They are also responsible for giving budgets and estimates of what they feel the company should
be spending. These may be split by department or function and they must also predict budget
figures for years to come so that the company knows what it should be spending and more
importantly, charging to customers.

of 39
Chapter No: 04
Product and Services

of 39
Prosperity for life
EFU Life brings you “Prosperity for Life” – a flexible and high value savings and protection
product that ensures that your dreams become a reality at all stages of life… throughout your
life!
Main features of the plan:
• Choose different levels of life insurance protection for the same amount of premium
• Change your level of life cover as your circumstances change
• Get loyalty rewards through Guaranteed Loyalty Bonus
• Accelerate the build-up of your fund through Fund Acceleration Payments
• Benefit from the plan’s high investment allocation
• Participate in the returns of the EFU Growth Funds
• Hedge against inflation through the Inflation Protection Benefit
• Cover yourself through whole-of-life insurance protection
• Access your saving when you need it
• Add supplementary benefits to tailor the plan to your needs.
Marriage plan
EFU Marriage Plan helps you save systematically so that you can give your child the much-
needed financial security for the years to come. The Plan provides a complete financial planning
package for you to plan for expenses associated with your children’s marriage. Planning in
advance through the Marriage Plan for your child’s or even grandchild’s wedding celebrations
now allows you to spread the cost over time, giving your savings a chance of significant growth.
The Plan provides high value savings, coupled with a guaranteed level of life assurance
protection and flexibility, with various options to customize the benefits according to your needs.
Simply put, EFU Marriage Plan gives you the freedom to enjoy every moment with your
children today, without worrying about their future tomorrow.

of 39
Noor plan
EFU Life brings you “Noor” – a complete financial planning solution for you to plan for your
children’s future education and marriage. The plan helps you accumulate a fund over a savings
period which can be used to finance your children’s college or university education, or marriage
expenses.
The two distinguishing features of the plan are:
New unit linked fund with “interest free investments”. The investments include Islamic mutual
funds, approved equities, term deposits in Islamic Banks and Sukuk Bonds. This new fund has
been named “EFU Aitemad Growth Fund” (AGF). As the name suggests, Aitemad (meaning
Trust) outlines the basic philosophy of EFU Life’s business and all its financial planning
solutions.
Allocation of Bonus Units based on experience of the product: At the end of each year, EFU Life
will review the mortality experience of the product, and in case of a surplus the amount will be
distributed back to the clients in the form of “Bonus Units”. These Bonus Units will be credited
to the EFU Aitemad Growth Fund to enhance the cash value of the plan. As a service to society,
you may also instruct EFU Life to utilize your share of the surplus for a social cause and donate
it to a charitable institution.
Asaasa plan
EFU Life brings you “Asasa” – a high value savings and protection product that ensures you
achieve your dreams for your loved ones.
The two distinguishing features of the plan are:
i) New unit linked fund with “interest free investments”. The investments include Islamic mutual
funds, approved equities, term deposits in Islamic Banks and Sukuk Bonds. This new fund has
been named “EFU Aitemad Growth Fund” (AGF). As the name suggests, Aitemad (meaning
Trust) outlines the basic philosophy of EFU Life’s business and all its financial planning
solutions.

of 39
ii) Allocation of Bonus Units based on experience of the product: At the end of each year, EFU
Life will review the mortality experience of the product, and in case of a surplus the amount will
be distributed back to the clients in the form of “Bonus Units”. These Bonus Units will be
credited to the EFU Aitemad Growth Fund to enhance the cash value of the plan. As a service to
society, you may also instruct EFU Life to utilize your share of the surplus for a social cause and
donate it to a charitable institution.
Education plan
With EFU’s Education Plan, you can make sure that unlike other parents your dreams for your
children will become a reality. Guarantee their education even if you should die in the
unfortunate event of your death prior to the maturity of the Plan, you would want to make sure
that your education plans for your children will still be fulfilled.
The Continuation Benefit, which is built into the Plan will ensure that all future contributions
will be paid by EFU following your death until the Plan maturity date. This means that the
education funds you had originally planned for will still be available for your children.
To deal with the problem of funding school fees after your death, the Education Plan also
provides an Income Benefit. This benefit, which is optional, provides a fixed amount, payable
quarterly in advance, to ensure that the school fees continue to be met. The quarterly income you
choose will be based on your current school fees requirements.
Guarantee their education even if you should fall sick This optional Waiver-of-Premium Benefit
provides that if you are unable to follow any occupation for at least six months due to sickness or
accident, the present contribution to your Plan will continue to be paid in full by EFU.
This means that whether or not you continue to enjoy good health, your education plans for your
children will succeed.

of 39
The Savings Plan
The Savings Plan is a high value unit linked life insurance product with a substantially higher
unit allocation in the early policy years providing rapid accumulation of cash values. The plan is
specifically designed for group schemes where there is a need for such higher cash values and
fund accumulation. The fund accumulated through the plan may be used for education and
marriage of children, purchase of a house, expanding business, retirement income or any other
purpose. The Savings Plan is ideal for individuals and groups where the employees would prefer
to pay their contribution through withdrawals from their Provident Fund balances. The plan
makes use of the provisions of the Income Tax Rules 2002 under which members of Recognized
Provident Funds can withdraw funds from their provident fund balances and pay towards the
contribution of life insurance plans.
• The opportunity for Growth The contributions to the Plan will buy units in the one of the EFU
Growth Funds. The Savings Plan is designed to provide a large cash sum at the end of your
selected period.
• Payment of Contributions As mentioned above, the plan is funded by contributions from the
employees’ Provident Fund balance. Each covered employee needs to give a written
authorization to the trustees of the Provident Fund to make permanent withdrawals and pay the
premium to EFU Life. The trustees, on an annual basis, would make the necessary deductions
from the employees Provident Fund balance and make the payment of premium to EFU Life.
Security plan
The need to provide high life cover at a minimum cost may arise for a number of reasons.
For example you may need:
• To provide a replacement income for your family on your death,
• To ensure that your early death does not jeopardize your future plans for your children in terms
of their education, wedding etc.

of 39
• To protect the continuity of your business by ensuring that funds are available for your
beneficiaries. EFU Security Plan is a term assurance contract which allows you to provide
protection against the financial consequences of death at a very low cost.
High Cover for a Nominal Cost
Example: Male aged 35 next birthday. To provide a lump sum payment of Rs.500,000 on death
during a 20 year term the annual premium would be Rs. 3,960 i.e. just over Rs.10 per day.
Inflation Protection
Under the Inflation Protection, the contribution will increase every year by 7% of the original
premium with an appropriate increase in benefits, without any medical evidence.
Additional Benefits
The basic objective of the Security Plan is to pay a lump sum if you die within the term of the
Plan. The Plan can also be arranged on a joint-life basis so that both husband and wife are
covered. The benefit (Sum Assured) would then be payable on the first ‘claim’ of either partner.
You also have the flexibility to tailor the Plan to suit your circumstances by being able to choose
from a range of additional benefits.
• Family Income Benefit
• Accidental Death and Disability
• Accidental Death and Disability Plus
• Waiver of Premium

of 39
Chapter No: 05
SWOT

of 39
SWOT ANALYSIS
Every Organization has some Strengths, Weakness, Opportunities and Threats. Strengths and
Weakness are the Internal Factors and Opportunities and threats are External Factors.
Strengths
• We are a Company with broad customer base.
• We work as a family, with employee loyalty and commitment to the Company and generations
of families are associated with us.
• We own two prominent buildings in Karachi and Lahore.
• We have team of Technical Officers and our quality of Technical as well as Marketing Team is
considered as the best in the country.
Strengths of EFU Insurance can determine the competition ability in the market, with other
Insurance Companies. The more the strength of the company, comparing to its competitors the
more superior it is on its competitors. After having a detailed research on the EFU Insurance and
using the marketing strategies to analyze. The Following Strengths are determined.
• Wide Variety of Insurance Policies
• Specifically Insurance Industry
Comparing to EFU competitors, Easter Federal Union Insurance is specifically the Insurance
Industry. Its focus is totally on the development of Insurance sector. All the investment of this
company is for the betterment and progress of insurance company. Having focus on the
Insurance, EFU has gain more professionalism in providing Insurance services to its customers
.Major competitor of EFU is Adamjee Insurance Limited. This is not specifically for Insurance.
It is the group of industries, and one of their industries is the Insurance service providers.

of 39
• Easy Access for Customers Customers can have the access to EFU very easily. One can
contact to the EFU through one of the 64 branches spread all over the Pakistan. From which 23
along with the Head office in Karachi, the largest city of business in Pakistan. And 14 branches
are in the Lahore the second largest city of Business. Rest all are distributed in the country
according to the demand of the customers. And it is still growing. Customers can also have an
access through Internet. The widely used media, in the customers of EFU. No other insurance
company is providing the facility to submit policy online. This easy and fast way of submitting
Insurance Policies saves the time for the customer and for the EFU to process the policy Another
easy and efficient way to access to the EFU is the agents in the market. EFU agents step by step
guides the customers for deciding for the right policy which fulfills the needs of the customer
more efficiently.
Leasing Contracts with Banks
In Pakistan auto leasing is growing day by day. Banks have an agreement with the lassie that the
auto should be insured. Banks have different contracts with Insurance companies. EFU also have
contracts with Banks. Those banks which have agreements with EFU, makes it compulsory for
the lassie to insured their vehicle from EFU Auto insurance.
Weaknesses
• Foreign Insurance Companies
Foreign Insurance Companies are investing here in Pakistan. And Government of Pakistan is also
supporting them, and planning for more foreign investment. And many other Insurance
companies will also invest. And start providing their services herein Pakistan, with new
technologies, more improved methods and more investment. This increases the competitors to
EFU insurance. And increase the number of competitors.
• Undercutting Pricing Strategy of Competitors
The price cutting strategy of the competitors of EFU insurance produces many hurdles. When
competitors lower their prices of premiums, then the customers intend towards them. More over
the people which are already the customer of the EFU also attracted to other companies. And that
lower the sales. This is the very tactical threat. Sometimes it may effects a lot .When the same
quality of service is being provided by another company but on the lower price. So there is
always a threat for EFU Insurance.

of 39
• Natural Disasters
Natural Disasters are one of the big threats for the EFU insurance. In Pakistan floods, earth
quakes and many other natural disturbances occurs periodically. When this happens the heavy
amount of claims occurs which cannot be easily settled. And thus sometimes gives a heavy loss.
Recently on 8th October earth quake, many claims occurred. Same was happened in the Sialkot
flood.
• Religious and Cultural Resistances
Pakistan is an Islamic country and the culture here is based on Islamic principles. One the
controversy in the Insurance company services and the Religion is that the Islam doesn‘t allow
the Insurance. And people resist for insurance, and avoid the advertising of Insurance. This leads
in lack of knowledge and benefit about the EFU insurance.
People of Pakistan are not More Policy Conscious
People of Pakistan are not so much policy conscious. Pakistan is an under developed country.
People are intending to invest, from where they can have a proper income source rather than to
secure the income source.
Awareness about Insurance Benefits Is Very Less
People in Pakistan are not very much risk conscious. Literacy factor is also involved for less
awareness of Insurance benefits between the people of Pakistan. The insurance is the long term
planning and is very helpful, that a person further plans risk free. Proper know how about the
insurance policy and less advertisement through the channels easily access to the people is very
poor. This is the reason that the awareness of the benefits of insurance are very less in Pakistan.
Loss due to Heavy Claims
Insurance is basically a pool strategy. All people invest some amount of money and one when
one suffers then that person will be paid the amount promised/agreed by the insurance
company. And that amount is collected from other investors .But when there are many claims
that the people giving amount are less and the people claiming are more than the company
suffers loss. This is the one big uncertainty.

of 39
OPPORTUNITIES
• As soon as Takaful Business Window operations are allowed by SECP, we will commence
Takaful business.
• Expected growth in Economic Sector of Pakistan due to recent change in economic policies,
privatization plans and implementation of GSP Plus in 2014 and beyond.
• Customer Trust
Customer trust is the one of the foremost priority of the EFU. Customer trust means customer
will prefer EFU then other insurance companies. That will increase the sales and will helps in
achieving the goal. EFU insurance is struggling to have the customer trust by providing the
excellence in service, the quality of the service, and by reducing time of processing the policy.
Senior. Vice President of EFU Insurance quoted in regard of achieving the customer trust;
“Once the customer is satisfied with our service to fulfilling the need or the problem he/she was
facing and for that purpose we were contacted by him/her. Then we had the trust of the
customer”
• Increase in Growth
Increase in growth is the major aim of any company, as well as EFU‘s. Increasing
In growth by having more market share, by having more sales and by increasing the quality and
in line services will result in the increase in the overall growth of the EFU insurance. Moreover
the increase in the sales point units or Volume is also the factor of growth increment. And EFU
is planning for it. Increase in growth needs a long term strategic planning. The broader view of
the market and demand. The capability to utilize the recourse more efficiently then to the
competitors.
• More Bank Contracts
The bank agreements on the insurance company specification on the auto leasing are the one of
the major opportunity for EFU to increase its sales. The more the auto leasing banks agree to
have contracts with EFU. The more will be the sales of EFU insurance. To achieve this
opportunity EFU is making its repute in the market best by providing quality service to its
customers.

of 39
• Development in Education and Information
Development in Information and Education about the Insurance will affect directly to the EFU
insurance. The more the qualified and with more knowledge the employees will. The more will
be the profit. Recently Halley College of Banking & Finance Lahore, has started the MBA
related to Insurance services. And EFU Insurance provided Rs.15 lac for the development of this
discipline.
THREATS
• Emergence of Captive Insurance Companies by Group and / or Financial Institutions.
• Continued law and order situation increases cost of operations and reduced growth in certain
Geographical areas.
• Country's law and order situation restricts new re-insurers to look at Pakistan market.
• Loss of technical hands to Middle Eastern markets due to economic revival there.

of 39
Chapter No: 06
CONCLUSION/SUGGESTION/PROCEDURE

of 39
Conclusion
• Inflexible Policies
• Temporary Hiring
• Less Job Trainings
• Less Allowances for employees
• The EFU should adopt flexible policies, especially in the areas of the recruitment,
promotions, evaluation of the employees otherwise the high turnover observed in
the EFU will continue to create problems for the EFU now and in the future.
Because not being satisfied many experienced employees will leave the
Organization.
• The fresh hiring should be made permanent so that they are secured of their
future. Further the allowances and perquisites attached with the permanent jobs
will also increase the motivation level of the employees. As I observed there one
hiring was made during my internship, and the guy appointed was not permanent.
• The EFU should place emphasis on he organization of effective training and
development programs for its new as well as existing employees so that these are
gradually updated regarding the recent developments in the field of Insurance.
• The number of allowances and prerequisites for the employees should be
increased to ensure that they put their body and soul in the jobs assigned to them.
As far as I observed they were not being awarded as they should. Their basic salary
was very low.

of 39
Reference
www.scribd.com
www.efulife.com
www.pakboi.gov.pk
TV Commercial
http://en.wikipedia.org/wiki/Insurance_in_Pakistan

Internship Report on EFU life Assurance Ltd

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Internship Report on EFU life Assurance Ltd

Similar to Internship Report on EFU life Assurance Ltd (20)

Recently uploaded

Recently uploaded (20)

Internship Report on EFU life Assurance Ltd