SUBJECT

INTERNSHIP REPORT OF POSTAL LIFE INSURANCE (PLI)

SUBMITTED BY: MUHAMMAD ADNAN

ROLL NO: 27
SUBMITTED TO: SIR FAHEEM

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. 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 information then interpret and analyze it in a useful manner.

To define and describe various functions of the PLI.

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.

To get exposure and to develop the interpersonal communication skill.

1.3 SCOPE OF WORK

It is a compulsory requirement for the award of Masters Degree in Business

Administration.

This report is concerned with the performance of the PLI Branch 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.

1.4 IMPORTANCE OF STUDY

PLI play a very important role in the economic life of a country, thats why they are considered
as the lifeblood of modern economy. Today no one can deny the importance of PLI in the
economy. They facilitate and expedite trade and commerce and provide a variety of services that
one cant imagine without Postal Life Insurance.
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 plays an important role in the economic 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

Personal Observation, Interviews of Personnel.

1.5.2 SOURCES OF SECONDARY DATA

Annual Reports, Booklet, Books, Web sites.

1.6 LIMITATION OF STUDY

The most important limitation from which the study suffers is the non-availability of information
in a manner required for analysis and the secrecy of the PLI.
Another important limitation of the study is time constraint, Two months period is too less to
study the operations of the PLI thoroughly.

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 is 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 provide insurance cover.

To run life insurance business on sound line.

To provide more efficient service to the policy holders.

To maximize the return to the policyholders by economizing on expenses.

To mobilize small savings and place the same at the disposal of Government.

To use the policyholders' fund in the wider interest of the country.

To care for its stake holders.

To care for its employees.

To uphold the rules.

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.

2.3 PLI Plans and Policies

Whole life policy, Joint life endowment policy, Endowment policy Education and marriage
endowment assurance, Accidental death and permanent disability benefit contract, Annuity
policies, anticipated endowment (three payments) plan, Child protection policy, Group
insurance.
2.3.1 Whole life policy
Cheapest survival arrangement for a family against premature casualty of the bread earner. The
premium rates are lower than those for other types. The insured has the option to pay premium
till he reaches the age of 50, 55, 60 or 70 years as he may desire, according to the age up to
which he 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

Issued for the period ranging from 5-17 years

The period of endowment is timed as per requirement of the beneficiary child

In case of death of the insured before the specified date, the policy becomes a claim and
payment of further installments are waived off

The amount of claim is deposited in S.B account in the name of nominated child and is
paid with accruing profits on the specified date/ expiry of term.

2.3.6 Accidental Death & Permanent Disability Benefit Contract

There are supplementary contracts issued to policy holders other than those employed in the
Army, the Navy and the Air Force and other persons exposed to extraordinary occupational
hazards. The contracts are issued in combination with whole life or endowment assurance policy
of not less than Rs. 10,000/-. They provide for payment of an additional amount not exceeding
the sum assured in the case of death of the insured due to an accident as well as in the vent of the
insured losing the use of one or two of life limbs or eyes due to an accident. The maximum
additional benefit is limited to Rs. 500,000/- and the supplementary contract ceases to be
effective after the insured has attained the age of 55 years. An extra premium of Rs. 3/- per
thousand per annum to cover accidental death and Rs. 6/- per thousand per annum to cover
accidental death and permanent disability is required to be paid annually by the insured. No
benefit accrues does not arise. A supplementary contract ceases to be operative if the policy in
combination with which it is issued lapses for any reason.
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.

2.4 FEATURES OF (PLI)

Lowest premium rates

All policies including paid up participate in profits

Premium payable on monthly basis and only up to the month of claim

Payment of premium in cash at any post office in Pakistan

No maximum limit for ordinary policies

Revival of lapsed policies on easy terms

Loan on policies

Highest rate of bonus

Open to all

Rebate on advance payment of premia

Payment of premia through salary bill deduction

Non-lapsing of policies of two years duration

Liberal surrender value of PLI policies

Payment guaranteed by Government of Pakistan

2.5 VISION OF PLI

We are struggling to provide the service to our clients at their door step through our educated
Field Force & Canvassers. We are going to computerize all Field Units of Pakistan for rapid &
excellent service. Our clients will be seen the Credit Position of their policy/Policies on the PLI
Web in future.
2.6 MISSION OF PLI
To provide desired financial support in terms of predictable and unpredictable needs through
sound management of mutually agreed funds. Assuring the individuals and family of secure
financial environment.
To provide insurance cover to the citizens of Pakistan on competitive rates, even in remote areas
and provide world class policy holders services and to fulfill our clients expectations and
demands through a vast network of 13 thousand Post Offices marketed by a committed 39 Field
Offices.