EFU Life Assurance Ltd is Pakistan's first private sector life insurance company, incorporated in 1992. It acknowledges support from Allah, as well as its parents and the organization for allowing the internship. The document then covers EFU Life's history, being originally established in India in 1932 before moving to Pakistan. It discusses key insurance terms and concepts. EFU Life has grown to over 150 branches and 3,500 employees, and offers various insurance products and services while being ISO certified. The SWOT analysis examines the company's strengths, weaknesses, opportunities and threats.

2. 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.

3. DEDICATION
…. to the martyred students of Army Public School, Peshawar.

4. CONTENTS
CHAPTER:1 INTRODUCTION
1.1 Overview
1.2 Insurance In Pakistan
1.3 Terms In Insurance
1.4 Insurance v/s Assurance
1.5 4 I’s in Insurance Services
1.6 History
1.7 Success story
1.8 Functions
1.9 Objectives
1.10 Purpose of Internship
1.11 Research Methodology
1.12 Why This Topic
1.13 Limitations
CHAPTER:2 ORGANIZED STRUCTURE & SETUP
2.1 Functions of management
2.2 chart of management

5. CHAPTER:3 FUNCTIONS OF VARIOUS DEPARTMENTS
3.1 Marketing Department
3.2 Claim Department
3.3 HR Department
3.4 Accounts Department
3.5 Underwriting Department
CHAPTER:4 PRODUCTS AND SERVICES
4.1 NOOR Plan
4.2 ASASA Plan
4.3 Prosperity For Life
4.4 Education Plan
4.5 Marriage Plan
4.6 savings plan
4.7 security plan
CHAPTER:5 SWOT
5.1 Strenghts
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
CHAPTER:6 CONCLUSION/SUGGESTION/PROCEDURE
Conclusion
Suggestion
Reference/ bibliography

6. CHAPTER:1 INTRODUCTION
1.1Overview
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
1.2 Insurance in Pakistan 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:

7. • 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. The company ceased to exist in East Pakistan after it
became Bangladesh. Pakistan subsequently reorganized the company to EFU Life
Assurance Ltd.
1.3 TERMS IN INSURANCE:

8. 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.
1.4 Insurance v/s Assurance

9. 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.
1.5 4I’s of Insurance Service

10. 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.
1.6 HISTORY

11. 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.
EFU Group

12. EFU General Insurance Limited
http://www.efuinsurance.com
EFU Life Assurance Limited
http://www.efulife.com
Allianz EFU Health Insurance Ltd
http://www.allianzefu.com
1.2 SUCCESS STORY

13. • 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
• 2006: Call Center

14. 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

15. 1.7 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") uponthe 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

16. 1.8 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
…To continue our journey to be better than the best.
Mission
…To provide services beyond expectation with a will to go an extra mile. In the process,
continue to upgrade technology, human resource and reinsurance protection.

17. 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.
• Excellence
We measure our performance by results but more by quality of service.
• Professionalism
We believe professionalism is perfection. Business resources are utilized in a manner to
achieve optimum returns on resources.
• Our People
In EFU we work like a family. Everyone is treated with respect and without any
discrimination.
• Corporate Social Responsibility
We donate to various institutions in health and education sectors, for improving the
lifestyle of common man.

18. 1.9 Purpose Of Internship
My purpose of internship is to complete the requirement of my study that is necessary for
completion of MBA. The other purpose of internship was to acquire skills and knowledge
about finance and information technology. It was a great chance for me to apply my skills
and knowledge which I have learned during MBA to the workplace.

19. 1.10 Research Methodology
I have used both data collection methods. Primary as well as Secondary.
1. Primary Methods:
• Interviews
• Observations
2. Secondary Methods:
• Internet

20. 1.11 WHY THIS TOPIC??
The most significant measure of an industry or an activity is its contribution towards
employment generation, strengthening linkages with other sectors of the economy in
promoting growth and stability, and creating a sizeable impact on the national income of
a country. In developed countries, the insurance industry is a necessary part of daily life
and serves all the above mentioned purposes.

21. 1.12 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.

22. CHAPTER:2 ORGANIZED STRUCTURE & SETUP
2.1 Functions Of Management
As in every organization Management functions are needed to achieve the organization
and individual goals through a predefined way, and in this way through fallowing the
procedure of the management functions that makes us easy to achieve the organizational
Mission as well.
• PLANNING function need to be made specific strategies with the given resources
to get that lead to achieve targets.
• ORGANIZING Function in life insurance sector it to organize the Plan that goes
to be as a second step for planning.
• COORDINATING function of leadership controls all the organizing, planning
and staffing activities of the company and ensures all activities function together
for the good of the organization.
• CONTROLLING function of management is useful for ensuring all other
functions of the organization are in place and are operating successfully.
Controlling involves establishing performance standards and monitoring the
output of employees to ensure each employee’s performance meets those
standards.

23. 2.2 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.

24. CHAPTER:3 FUNCTIONS OF VARIOUS DEPARTMENTS
3.1 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.

25. 2.2 Chart of Management

26. CHAPTER:3 FUNCTIONS OF VARIOUS DEPARTMENTS
3.1 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
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.

27. 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.“

28. 3.2 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.

29. 3.3 HUMAN RESOURCE DEPARTMENT
Human Resource Department is the most important department on which the
internalsystem 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

30. 3.4 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
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
apolicyholder comes to pay his premium, they check whether the policyholder is
ableto pay his premium or not. If the policyholder comes within 30 days after the
duedate, 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 thecashbook is
maintained, cheques are prepared, and these cheques are sent toconcerned
party. Bank Statement is prepared daily by the authorized bankerregarding 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 allowancesare
offered to the employees. Loan facilities are available for the employees. Tax isdeducted
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.

31. • Agents Commission Section
The commission of business brought by agents is calculated in the CommissionSection.
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
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.

32. CHAPTER:4 PRODUCTS AND SERVICES
4.1 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.

33. 4.2 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.
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.

34. 4.1 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.

35. 4.2 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.

36. 4.3 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.

37. 4.1 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.

38. 4.2 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.
• 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

39. CHAPTER:5 SWOT ANALYSIS
5.1 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.
• Pioneer of General Insurance
EFU GENERAL INSURANCE LIMITED is Pakistan's pioneer general insurer with the
industry's highest premium growth in 2003 of Rs.86 crores. EFU established in 1932,
under the inspiration of the Quaid-e-Azam Mohammad Ali Jinnah. The company was
originally registered at Calcutta and operated in India (undivided) and Burma. In 1947,
on birth of Pakistan EFU found a new home to develop. In Pakistan, EFU
rapidly established itself as a progressive and innovative insurer. It gave the emerging
insurance industry the leadership, the manpower and the drive needed to grow in a
situation where at one time, three fourths of insurance was held by foreign companies.
Traditionally the EFU name has become synonymous with progressiveness and prompts
claim settlement and now the EFU being the largest insurance group provides a full range
of general, Life and health insurance services. Eastern Federal Union Insurance Company
has an advantage of being the pioneer of the Insurance Industry in Pakistan. Because of
the experience and market share they had gained, made them the leader in General

40. Insurance in Pakistan. More over it is the nature of the customer that preference is for the
older and stable company. And as EFU has been providing its services since 1947, people
are more intend towards EFU.
• Wide Variety of Insurance Policies
EFU has a wide variety of Insurance policies. Main categories are:
1. Life
2. Health
3. General Insurance
• 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.
• 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

41. 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.

42. 5.2 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

43. 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.
• 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.

44. 5.3 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.
5.4 THREATS
• 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.
• 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.

45. • 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.

46. 5.4 WEAKNESSES
6 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.
7 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.
8 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 theins
urance company. And that amount is collected from other investors .But when thereare
many claims that the people giving amount are less and the people claiming aremore than
the company suffers loss. This is the one big uncertainty.

47. CHAPTER:6 CONCLUSION/SUGGESTION/PROCEDURE
6.1 Conclusion
• Inflexible Policies
• Temporary Hiring
• Less Job Trainings
• Less Allowances for employees

48. 6.2 Suggestion
• 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.

49. Reference/ bibliography
• http://en.wikipedia.org/wiki/Insurance_in_Pakistan
• www.efulife.com