Professional Documents
Culture Documents
SUBJECT
Internship Report of Postal Life Insurance (PLI)
Agency Function of Pakistan Post
Ministry of Communication
Chapter No 1
INTRODUCTION
1.1 BACKGROUND
In the past days university were producing graduates without practical / experience. These graduates
faced many problems in the practical life/job. Due to which remain jobless for a long time. If they
were not performing their duties because they were from a theoretical background not having any
practical experience regarding their chosen field of study.
Finally the universities recognized the fact and added additional requirement in the fulfillment of the
graduate degree. This additional requirement was that of the internship. The students are bounded to
work in an organization for at least two months. This now the degree requirement for master
programs and is called internship. This is a research type study where the interne explore the
organization. The strengths, weaknesses, threats and opportunities of the organization are found out.
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After this, the comparative analysis is done and recommendations are made for the utilization of the
strengths, put right the weakness, availing the opportunities and overcoming the threats of the
organization as well.
This report is basically internship report. Being a student of Master in HRM at Quaid-E-Azam
College of Commerce, University of Peshawar for two months of internship in an organization is
compulsory for me for the completion of my Master in HRM. Due to which I completed my
internship in the PLI of Peshawar to study the human resource activities brought for enhancement
both in its employees and public.
1.2 PURPOSE OF THE STUDY
Purpose of this program is to make student familiar with the practical work, as there is great
difference between what they have learnt during their Master HRM and how the job is practically
done.
Another important aspect of the internship program is that internee is placed in most of the
departments of the organization through job rotation. It provides a glance of each department, as the
period is too short for learning in detail.
Other objectives of the study are as follows
To gather relevant manual information then interpret and analyze it in a useful manner.
To highlight the outline facilities and products offered by PLI to its customers.
To analyze the PLI through different techniques i-e Horizontal, Vertical, Trend and SWOT
analysis.
This report is concerned with the performance of the Regional Directorate PLI Peshawar.
It will help the present and prospective students of the college in making assignment and
writing report on the PLI.
It can also provide help to PLIs management in identifying their Strengths, Weaknesses,
Opportunities and Threats.
It can also provide assistance to students seeking financial data for analysis.
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I have chosen the Postal life Insurance for my internship because it sponsor has a strong life
insurance background. Furthermore it was convenient and accessible for our life. Besides this, PLI is
playing an important role in the financial deficit controlling of Pakistan Post and at large
development of Pakistan.
1.5 METHODOLOGY OF STUDY
In preparation of this report, mentioned below data collection techniques have been used i.e. primary
dare & secondary data.
1.5.1 SOURCES OF PRIMARY DATA
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Chapter 2
2.1 BACKGROUNG OF POSTAL LIFE INSURANCE
Postal Life Insurance is the oldest and largest organization & services of its kind in the Subcontinent.
Established by the British Raj in 1884, initially to assure the lives of postal mail runners, its services
were gradually extended to other government employees as well. After independence Postal Life
emerged as a key player in life insurance business and offered its services to everyone.
Postal Life Insurance is the brain child of Ministry of Finance. Pak Post serves as its agent. However
Director General Pakistan Post is exclusively responsible for managing, organizing and controlling
its operations and marketing its various products. Postal Life is exempted from corporate and income
tax. All the money generated is invested in Post Office Insurance Fund controlled by the Ministry of
Finance. Pak Post gets a return at the prevailing government investment return rates. This policy
ensures security of fund, attractive return and increased public confidence.
Postal Life has an unbeatable presence in the rural areas due to extensive network of post offices.
Every post office serves as its outlet. This gives Postal Life an enormous advantage over its business
rivals and helps to offer a wide range of insurance policies to customers at the lowest premium while
ensuring highest bonus on their investment.
For purchasing a policy any local Assistant Director Postal Life Insurance could be contacted in
Pakistan. Officers of the Assistant Directors PLI are mostly located in General Post Offices. For
query, clarification or settlement of claims, Assistant Directors PLI are the focal points. Deputy
Director General Agency Functions deals with the subject at Pakistan Post Headquarters G-8/4
Islamabad
2.2 OBJECTIVES OF (PLI)
To widen the area of operation of life insurance and making it available to as large a section of the
population as possible, extending it from the comparatively more affluent sections of society to the
common man in towns and villages.
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expects to have an income to finance the policy. The value of a whole life policy is payable to the
family of the insured only after his death.
2.3.2 Endowment policy
This is the most suitable arrangement to provide for an adequate income at the time of retirement or
an earlier age when certain liabilities are expected to be met. The risk of premature death is at the
same time covered. There is a variety of endowment policies available. The policies mature for
payment on the assurer's attaining the age 30, 35, 40, 45, 50, 55, 60, 65 or 70 years or an earlier
death. Policies can also be purchased which mature for payment after the expiry of the fixed term of
years of 5,10,15,20,25,30,35 and 40 years or an earlier death.
2.3.3 Joint Life Endowment Assurance
Under this plan policies are issued on the lives of two persons and simultaneously cover risk on the
lives of both for the sum assured. The sum assured is payable either at the end of specified term 10,
15,20,25,30 and 35 or at earlier death of either of the insured person. The premium are payable till
the end of the specified term or till death of the either of the insured persons if earlier.
2.3.4 Anticipated Endowment Assurance - 3 Payment Plans
Under this plan policies are issued for the fixed terms of 12, 15, 18,21,24,27 and 30 years. The
benefits attached to these policies would be as under:
25% of the sum assured shall be paid at the end of 4,5,6,7,8,9 or 10 years from the date of
commencement of policy of 12,15,18,21,24,27 or 30 years term respectively provided the
assured is then surviving.
Another 25% of the sum assured shall be paid at the end of 8,10,12,14,16,18, or 20 years for
policies of 12,15,18,21,24,27, or 30 years term respectively provided the assured is then
surviving.
The remaining 50% of the sum assured plus accrued bonus shall be paid at the end of the
term of the policy provided the assured is then surviving.
Full sum assured plus accrued bonus would be payable on death at any time within the term of the
policy.
2.3.5 Endowment Education or Endowment Marriage Assurance
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2.3.7 Group Insurance
Postal Life Insurance provides group insurance coverage to the employees of Govt., public & private
organizations. We provide life insurance cover to each member of a group round the clock. In the
event of death of any member during the currency of the contract, we are committed to pay the sum
assured promptly to his nominated beneficiary.
Postal Life Insurance has furthermore introduced "Passengers Insurance Scheme" for passengers
traveling by Road, Rail and Air. PLI is providing this facility in northern areas through Mashabrum
Tours & other transport companies of Gilgit/Skardu.
2.3.8 Child protection police
CPP is issued jointly on the lives of the child and the father or mother
No other relative is allowed to be associated with the policy
It is issued when the age of the child is between 1 to 17 years as per details given below.
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purpose. Stock is the other integeral part of Accounts Branch. Stock Branch maintain all the stock records of
Peshawar Region. Stock Branch also arrange and manage all items for Field Formation. Claims Branch is
Insurance Payment or Expenditure Branch of PLI, All the Matured , Surrenderd and Death claim cases are
settled here and payments are sanctioned.
CHAPTER-3
WHAT I HAVE LEARNT
3.1 ORGANIZATIONAL STRUCTURE
An organization is a group of people working together in a structured and coordinated manner to
achieve a set of goals. In other words Organizations are systems of relating resources that will make
possible the accomplishment of specified ends or goals.
Every organization has a number of bodies/departments for carrying out its various functions and
achievement / organizational objectives. In PTCL the Board of Directors carries out the functions of
planning and policy formulation whereas the executive management carries out the management of
the organization.
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ORGANIZATIONAL CHART OF THE OFFICE OF THE DIRECTOR POSTAL LIFE INSURANCE PESHAWAR REGION
GM PLI Karachi
Mr.Shawar Gul
AD (F) PLI D.I.Khan
Mr. Muzzammil Hussain
AD (F) PLI Gilgit
Miss Asma Humayoon
AD (F) PLI Islamabad
Mr.Abdul Ghafoor
AD (F) PLI Mardan
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AD(Issue)
AD(Claims )
Record & General
Branch
Accounts Branch
Issue Branch
Claim Branch
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Administration Branch
Issue Branch
Accounts Branch
Claims Branch
Administration Branch is working under the kind control of Worthy Assistant General Manager.
Postal Life Insurance as per the instructions from the Director PLI Peshawar Region. Administration
Branch is supervised by the Assistant Superintendent (Office/Admin). The Staff strength is Five (05)
i:e. Staff Clerk, Statement Clerk, Computer Operator, Draftsman and Dispatcher.
The Staff Clerk has been assigned the duties to deal with all Staff related matter i:e. Appointments,
Posting & Transfer, Leave Arrangements and other duties assigned by the officer. Statement Clerk
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deals with statements, Weekly diaries, Summaries and T.A Bills related to regional office.
Draftsman is assigned the duty to deal with all Welfare Cases and correspondence with the General
Manager and other superior offices. Dispatcher receives dock and dispatch dock to the quarter
concerned.
Issue Branch is the second indigenous branch of PLI Peshawar Region working under the
kind control of the Assistant Director (Issue). Issue Branch is supervised by AS(O). Issue Branch has
a statement Clerk which deals with fresh business. Fresh Business is defined as new clients insured
in the Eight (08) Field offices working in jurisdiction of Director PLI Peshawar . When a person is
insured, he dully fill LI-9 Form having all information related to insurant and is attested by the
canvassing agent, Assistant Superintendent (Field) and Concerned Assistant Director (F). The
Manual form is also fed in the computer automated software (Postal Life Insurance Software-PLIS)
designed by 360 Technologies (Pvt) Ltd. Technology is cry of modern age and in competitive global
business environment. Issue Branch Scrutinize and accept genuine proposal forms fulfilling all POIF
Rules & Regulations and forward defective proposal forms to field units for correction at their end.
The forms having anomalies and contradictions with POIF rules are rejected and refunded after
deducting expenses. The Accepted Proposal forms are issued with a policy showing the face value,
name, risk date, maturity date and other particulars. A main File record is maintained in R&G
Section, working under the kind control of AD(Claims). Duplicate policy is issued to insurants who
have lost their original policy due to flood or any genuine reasons. A Part File is sent PG Section
where Posting of Subsequent premiums is recorded which is working under the kind control of
Accounts Officer. Issue Branch maintains a policy register showing the policy numbers issued in
chronological order. Issue Branch is also called the revenue branch that records collection of fresh
premiums which can be compared with expenditure to calculate how efficiently and effectively the
work force is utilized.
One of the integral and important branch of PLI is Accounts branch. Accounts Branch is led
by Accounts Officer, who is assisted by Junior Accountant. Account Branch as the name signifies
look after the accounts matters of whole region. Payroll, Deductions and GPF calculations are done.
Monthly contingent Bills are also checked. Accounts Branch observes PLI Receipts and Payments
very keenly. Accounts Branch also look after the audit of PLI Peshawar Region. Accounts Branch
Auditors look out the fresh forms before acceptance and audits claims cases before payments. Loan
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Audit is also carried in Accounts Branch. Loan Interest is intimated to those loan takers who are not
paying regularly. Accounts Branch also keep a close eye on Stock Branch. Stock Branch maintains
all stock records and supply the demanded articles to all Field Units and Branches of Regional
Directorate PLI Peshawar.
Claims Branch is also an important branch that deals with the matured, death and Surrender Value
Claim cases. Loan Cases are also cleared by releasing the pledged policy cards while scrutinizing
loans. Loan are provided to clients to discourage SVC. SVC is a claims when an insurant lodge
request that he is unable to continue the policy and want to terminate the agreement. Under SVC an
amount under POIF Rules is paid to client, The more the duration of the policy continuation the
more will be bonus and payment and the short the duration of the policy continuation the lesser will
be bonus and payment. Loan can be granted up to 90 % of SVC amount. As per policy when the
policy is matured an amount along with bonus is paid to insurant as per PLI Rules. DVC is paid to
the nominee of the deceased policy holder to secure the future of the assignee. Claims Branch look
after Record & General Branch where the Main File Record is kept and updated cleanly. Assistant
Director (Claims) also deal with wedding cell where the paid claims case are kept for Five (05) and
then wed out.
A Computer Lab is established since 1-11-2011 and is operating successfully. Computer Lab has
updated manual data of Peshawar region successfully comprising of 80000 Files. 13 GPOs out of 29
GPOs associated with 8 Field Units working under Regional Directorate PLI Peshawar Region has
been successfully automated and Insurants can pay premiums and a confirmation message is issued
on counter immediately as the amount is entered in PLIS. The Remaining 16 GPOs will be
automated up till 31-12-2015. A website is launched and is under construction www.pli.com.pk .
Computerized acceptance and Policy issuance is under way.
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CHAPTER-4
SWOT Analysis
It is an important tools to analysis the overall situation in which an organization is conducting its
affair. Each issue remains relevant and useful for corporate strategy formatting.
Aggressive
strategy -->
Diversification
Strategy -->
Opportunities
Strengths
Weaknesses
Threats
<--Turnover
Strategy
<--Defensive
Strategy
SWOT ANALYSIS
Strengths:
Century Old Organization
Large Human as well as physical Infrastructure
Presence, both in urban and rural areas
Large portfolio of Services
Reach in rural and semi-urban areas
More branches, More services
Good facilities to customers
Strong Network
Security /Safety with respect to deposits
Efficient Manpower Courier services
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Large range of Services
Trust of Public
Weaknesses:
Lack of autonomy in operation
Lacking in technology/automation
Lack of training
Absence of Marketing/Customer Care Functions
Poor Market Perception
Poor Incentives for Staff/Lack of Motivation
Inadequate Supervisory Positions
No advertisements
Not provide loan to consumer
Job stress among employees
Lower rate of interest on deposits as competitors
Opportunities:
Provide access to larger population
Tremendous potential to grow business in existing services
Optimal use of the large infrastructure
Explore new business avenues
In rural and urban areas
In developing national economy
In developing communication to other countries
In developing good relationship with people
Increasing number of customer
Inflationary market
Technological advancement
Remarkable potential to grow business in existing services
Best use of the large infrastructure
Threats:
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Deteriorating physical, technical & human infrastructure
Fast depletion of market share to private courier companies
Lack of autonomy to effectively compete
Courier services ( collectively growth 15-20 % )
Insurance companies
Banking sector
Customer dissatisfaction
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