PrimeLife at a Glance, PrimeLife Values, Corporate Governance, PrimeLife Technology, PrimeLife Reinsurer, Insurance Products, The Role of the Underwriter, Factors that affect life insurance premiums, Claim Settlement Process, Marketing Strategies

1. Group Members:
Dipesh Raj Pandey
Anshaj Shrestha
Bipin Gurung
Year - 2014

2. Acknowledgement
 First of all, we would like to thank our teacher Mr. Subin Shrestha for
his support in completing this project and preparing this report. His
vital guidance and supervision helped us a lot in the completion of this
project which has been completed as per the course requirement. We
would also like to thank Ace institute of management for giving us an
opportunity to do this project. This project helped all of us to boost our
confidence and gave us practical knowledge about the insurance
process of life insurance companies in Nepal.
 We would also like to thank the representative of Prime Life Insurance
Company Limited (PrimeLife), Uttam Acharya who helped us by giving
us information about the history, insurance products, claim settlement
process, agents, surveyors, re-insurance company, premium rates, and
marketing strategies of Prime Life. Our report provides a detailed
description of Prime Life Insurance Company Limited which is one of
the best insurance companies in Nepal.

3. Contents
 PrimeLife at a Glance
 PrimeLife Values
 Corporate Governance
 PrimeLife Technology
 PrimeLife Reinsurer
 Insurance Products
 The Role of the Underwriter
 Factors that affect life insurance premiums
 Claim Settlement Process
 Marketing Strategies

4. PrimeLife at a Glance
 Prime Life Insurance Co. Ltd. (PrimeLife) came into existence in June 2007.
Promoted by eminent business groups, PrimeLife has carved a niche for itself
in the insurance sector. PrimeLife earned a net profit of NPR 56.75 million in
its first full year of operation. This is an unprecedented achievement in the
Nepalese Life Insurance Industry. It was able to sell more than 714,797 policies
in just 5 years of operation. It has collected premium amounting to NPR 4,771
million (till Shrawan 2071 end). It has increased its distribution network by
opening 85 network points of representations (including Branches and Sales
Offices) all over Nepal. PrimeLife continues to be among the fastest growing
life insurance company with incremental growth in premium, quality of
business, customer service and assurance of good returns.
 The share holding constitutes of the promoters holding 70 percent and 30
percent is to be offered to general public. The promoters represent Nepal’s
leading and highly prominent business groups having widely diversified
business interests and expertise. Laxmi Bank Limited, one of the leading
commercial banks in Nepal, is one of the major promoters with 15 percent
stake.

5. PrimeLife Values
PrimeLife values are based on high standards of corporate
governance, transparency and professionalism. Governed
by its values, PrimeLife is in the mission to:
 Provide complete range of life insurance products bundled
with innovation and superior customer services in order to
achieve excellent business growth and provide superior
value to all our stakeholders.
 To make Prime Life appealing to the target consumer in
terms of the following benefits earned:
 Savings; • Life security; and • Tax benefits
Prime Life Insurance expects to achieve its overall vision
through an excellent team work.

6. Corporate Governance
PrimeLife is committed to the highest standards of
corporate governance and ethical conduct. To ensure its
commitment, PrimeLife has developed a framework within
which it operates that enables it to be governed by laid down
policies and procedures.
In order to monitor critical areas of business, following
committees have been formed by Prime Life Insurance Company
Limited.
 Audit committee
This committee consists of four members, three Directors and
Head of Internal Audit, which continuously monitors
governance of laid down policies. It also ensures compliance of
the comments made by independent Internal Auditor in the day-
to-day affairs of the company.

7. Corporate Governance
 Risk management committee
This is a risk management committee, consisting of five members, three
Directors, Head of Underwriting & Head of HR & Claims. It works within the
risk areas, purview of Audit Committee and ensures zero gaps between the laid
down policies and activities of the company.
 Human resource committee
This is a HR related functional committee, consisting of three members, one
Director, CEO and Head of Human Resource Department. The role of the
Human Resource Committee is to make decision regarding Human Resource
related issues & HR process.
 Executive committee
Executive Committee, which consists of Chief Executive Officer, Head of
Underwriting, Chief Financial Officer, Head of HR & Claim, Head of IT, Head
of Internal Audit, Head of Branding & Corporate Communication, Head of
Administration, Head of Corporate Business, Head of FE Business which
ensures effective management of the company.

8. PrimeLife Technology
PrimeLife is powered by international software
called SohamLife, which is a central database system and
can be accessed by all the branches at the same time for
policy issuance and updates. With the help of this software,
PrimeLife is able to deliver service to its customers
efficiently
 SMS SERVICE
The company has introduced an SMS system, through
which all the policyholders receive notification for
payment of policies. This system helps the policyholders to
continuously receive life insurance benefits.

9. PrimeLife Reinsurer
Re-insurance still lacks a proper scope in Nepal. It is mainly
due to the following reasons:
 Poor Economy of our country
 Unstable political condition
 Lack of developmental activities
 Lack of investment
Hence a re-insurance company cannot sustain in Nepal. An
economy like ours would not be able to sustain a collapse of
a re-insurance company. So, all re-insurance is done
abroad.
Re-insurer of PrimeLife is ScorGlobal Life, which is a top 5
Global Life Re-insurer based in Paris with an Assets value
of USD 6.9 billion.

10. Insurance Products
 PrimeLife Single Payment Policy
 PrimeLife Credit Care
 PrimeLife Naari Jeevan Beem
 PrimeLife Pension Plan (Bhawisya
Britti Bhuktani Jeevan Beema)
 PrimeLife Saral Jivan (Endowment
Policy with Profits)
 PrimeLife Dhan Sagar (Money back
Policy with Profits)
 PrimeLife Swarnim (Child Endowment
Policy)
 PrimeLife Jivan Surakshya (Whole Life
Endowment)
 PrimeLife Karja Surakshyan (Mortgage
Redemption Inurance Policy)
 PrimeLife Baideshik Rojgar (Foreign
Employment Policy)

11. Insurance Products
 The most popular insurance products of Prime Life
Insurance Company Limited are PrimeLife Swarnim (Child
Endowment Policy) and PrimeLife Saral Jivan (Endowment
Policy with Profits).

12. The Role of the Underwriter
 Studying insurance proposals;
 Gathering and assessing background information in order to
effectively assess the risk involved;
 Calculating possible risk and deciding how much individuals or
organizations should pay for insurance (the premium);
 Deciding whether the risk should be shared with a reinsurer;
 Computing results for appropriate premiums using actuarial
information, other statistics and own judgment;
 Visiting brokers or potential customers and preparing quotes;
 Liaising with specialists, such as surveyors or doctors, for risk
assessment;
 Gathering information and various types of reports (e.g. medical
records) from specialists;

13. The Role of the Underwriter
 Negotiating terms with policyholders or their brokers;
 Ensuring that premiums are competitive;
 Specifying conditions to be imposed on different types
of policies, for example, asking that a property owner
install a security alarm;
 Negotiating with brokers and drawing up contracts;
 Writing policies;
 Keeping detailed and accurate records of policies
underwritten and decisions made.

14. Factors that affect life insurance
premiums or premium rates
PrimeLife will consider a number of different factors when
calculating life insurance premiums. These include:
 Age
 Height and weight
 Medical history
 Number of dependants
 Outstanding debts
 Occupation
 Smoking, tobacco use or alcohol consumption
 Purpose of the insurance
 Income
 Finally, If more people purchase insurance policy, the rate will be
low and vice versa.

15. PrimeLife Calculator

16. Claim Settlement Process
 Claim settlement of PrimeLife will be based on
information provided by the insured, assessment and
decision of the insurer (PrimeLife). The Company
considers the Sum at risk, cause, circumstances of
claim and duration of the policy while asking for
certain requirements. E.g. For accidental death,
specific proofs such as Post Mortem and Police Report
are required whereas for death due to illness, the
Company calls for records from hospital, test reports,
etc.

17. Claim Settlement Process
Who is entitled to receive the claim benefit?
 The nominee or appointee (in case of minor nominee) last
recorded under the Policy in case of Policy on own life.
 The proposer in case the Policy is not on own life.
 Assignee in case the Policy was assigned.
 Life Assured himself in case of policy on own life for living
benefit claims (E.g.: Critical Illness rider)
To make a maturity claim in PrimeLife, insured must send
the following:
 Completed Claim Form
 Policy of life assurance
 Proof of age, if not submitted earlier

18. Claim Settlement Process
Riders / add-ons are the additional benefits that can be
added to the basic policies by paying a marginal additional
premium. Riders offered by PrimeLife (depending on
Beema) are:
 ADBR: Accident & Disability Benefit Rider
 ABR: Accident Benefit Rider
 WOPR: Waiver of Premium Rider
 IBR: Income Benefit Rider
A policy lapses when the policy holder fails to pay the
premium even within the grace period. In this case, the
policy loses all its benefits.

19. Marketing Strategies

20. Photos

21. Photos

22. THE END