New Jubilee Internship Report

NEW JUBILEE INSURANCE CO. LTD.
DEDICATIONS:
THIS REPORT, A RESULT OF MY DAY AND NIGHT EFFORTS, IS DEDICATED
WHOLLY TO MY PARENTS AND TEACHERS.
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DEPARTMENT OF MANAGEMENT SCIENCE
PEFACE
A students life is nothing but a continuous struggle to gain depth and expertise in his
field of study. It is a plunge into the vast ocean of hidden treasures, which are revealed by
turning the pages of books. This process is further supported by practical exposure in the
concerned field in the form of an internship program. An internship program aims at
grooming the best executives of the future and exposes them to the real processes in the field.
Therefore the department has organized a comprehensive training program to carve a gem
out of their potential.
I opted to select New Jubilee Insurance Company for gaining the experience of
internship and my experience during the period of two months was extremely beneficial. I
gained an insight into first hand knowledge and got awareness of their management and
working.
This internship report depicts the acquired knowledge in accordance with the
procedure learnt and observed. In this report is discussed the vision and mission of the
insurance company as a service provider together with a very comprehensive history of the
emergence and its management. A brief description of the products and services offered by
the company for the customers is followed.
The main focus throughout however has
remained on the functioning. The later section discusses the experience gained by me and
finally the report contains the ratio analysis and the SWOT analysis of the organization
together with the recommendations and suggestions for further improvement followed by the
concluding remarks. In short, this report has been an endeavor to acquaint the readers with
procedures in a descriptive manner.
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ACKNOWLEDGEMENT
The following report could never have been materialized without the Blessing of
Allah Almighty, without the kind patronage of my Loving Parents who always pray for me,
the help of my teachers and key persons at NJI who never hesitated to provide important
information to me.
I take the pleasure of expressing my deep gratitude and whole hearted thanks to all
my respected teachers who have given me the opportunity to explore and gain a deep
understanding of wide field of insurance and risk management.
I was able to gain deep intellectual depth and was exposed to the fine technicalities
and the various dimensions that the field has. All this was possible due to the extended and
valuable support of my respected teachers who had been very cooperative and supportive
throughout the life the session. Their techniques, instructions and committed guidance
always served as a torched light of me and helped me overcome the academic problems I
had.
I especially thank for his great concern and cooperation for his students.
His
farsighted policies and decisions have always aimed at upraising the quality of his students in
the practical field with the objective of providing awareness of practical expertise and to
acquaint them with the real management process. Thus acknowledging his efforts and
tremendous contributions towards the excellence of my academic career I find it my bounded
duty to express my regards to him.
Finally I express my high indebtedness to the zonal head Mr. Muhammad Ikram and
the staff for granting me permission to gain practical experience in this prestigious
organization. The staff had been extremely cooperative and supportive and it was only due to
their valuable suggestions and directions that I was able to successfully complete this
practical course of action.
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ABOUT NJI
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COMPANY PROFILE
Established in 1953, NJI is one of the most reputable and brightest name in the
insurance sector. Sustained growth over half a century has secured NJI a place among the
Big Three Pakistani insurance in terms of gross direct premium and financial base. NJI is
listed on the Karachi & Lahore Stock Exchanges. Major shareholders include Aga Khan
Fund for Economics Development and Hashoo Group. NJI, with its Head Office in Karachi,
has an extensive and dynamic branch network in all major cities and towns of Pakistan that
guarantees prompt services at the customers doorstep. The company prides itself in its
longstanding reinsurance arrangements and relationship with international renowned
reinsurers such as Swiss Re, Munich Re, Lloyds, Hannover Re and Mitsui Smitomo Re. The
company is also supported by internationally acclaimed reinsurance brokers including AON
Group, Willis, Marsh and UIB. In 2003, NJI became the first Pakistani insurance company
to acquire a foreign company when it took over the Pakistan operations of Commercial
General Union. Together with AKFED, NJI also acquired majority control of CU Life
Assurance Company of Pakistan Ltd.
A NJI, diversity is maintained through underwriting all classes of general insurance
including fire, marine, motor, engineering, health and general accidents. NJI not only offers
wide risk coverage, but also provides related risk management services delivered by highly
qualified and experienced risk managers.
NJI has developed unique and innovative
insurance solutions to meet the growing consumer financing trends of economy. From auto
financing to personal loans, mortgage to plastic carts and trade finance to capital investment
finance, NJI has the customized solutions to secure entire operations. Product range and
transactions of all financial.
As pioneers in Group Health Insurance, NJI continues to develop new, flexible and
customized plans to suit the diverse need of our many blue chip Pakistani companies and
multinational clients.
With a broad spectrum of services available, NJIs client-base comprises prominent
national and multinational corporations operating in Pharmaceutical, Chemical, Textile,
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Cement, Services (Hospital & Hotels), Oil & Energy, Manufacturing, FMCG, Engineering,
Banking and Financial sectors.
NJIs business philosophy can be summed up as Customer Protection, Customer
Satisfaction and Customer Trust.
effectively.
This is acquired largely be ability to handle claims
The customer focus and pro-active management approach in all areas of
business, allow NJI to underwrite and handle claims in an expeditious and efficient manner.
The true test of soundness of insurance converge is the duration of client
relationships. This is proven by the fact that many clients have been with us for over 40
years. Clients are satisfied knowing that NJI is their best security.
NJI is the only company among the top insurers to secure and sustain as Insurer Financial
Strength Rating of AA both by PACRA and JCR-VIS.
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MISSION
To provide our policyholders the highest degree of financial security, prompt and fair
settlement of their insured losses, professional and friendly services of all times.
To provide our employees a fair reward for their services, good working conditions,
stable employment and the opportunity for training, self development, long term
professional growth and prosperity with the company.
To earn a steady and satisfactory return for the shareholders on the companys capital
and to strive for the growth and prosperity of the company.
To be a good corporate citizen and contribute to the uplift and welfare of the
community we live in.
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VISSION
To be acknowledged as the strongest and best insurance company of Pakistan and to
enjoy the highest level of trust and confidence.
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BOARD COMMITTEES
AUDIT COMMITTEE
Akbar Ali Pesnani Chairman
Akbar Ali Hashwani
Mahmood Faruque
John Joseph Metcalf
Masood Hussain Secretay
HUMAN RESOURCES AND REMENURATION COMMITTEE

Towfiq H. Chinory Chairman
Masson Noorani
Sadruddin Hashwani
John Joseph Metcalf
Tahir Ahmad Member and Secretary
FINANCE AND PLANNING COMMITTEE

Masood Norani Chairman
Towfiq H. Chinory
Tahir Ahmad
John Joseph Metacalf
Atiq A. Mahmudi Secretary
BUSINESS DEVELOPMENT COMMITTEE

Akbar Ali Hashwani Chairman
Towfiq H. Chinoy
Mahmood Faruque
Tahir Ahmad
Akbar D. Vazir Secretary
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Mirza Ali Mahmood
MANAGEMENT COMMITTEES
UNDERWRITING COMMITTEE
Tahir Ahmd Chairman
Akbar D. Vazir
M. Vaqaruddin Member & Secretary
Muhammad Ikram
CLAIMS COMMITTEE
Tahir Ahmed Chairman
Akber D. Vazir
Muhammad Safdar
Brendan D Lima Member & Secretary
RE- INSURANCE / CO-INSURANCE COMMITTEE

Tahir Ahmed Chairman
Akber D. Vazir
Mirza Ali Mahmood
Brendan D Lima Member & Secretary
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COMPANY INFORMATION
COMPANY SECRETARY
Atiq A. Mamudi
AUDITORS
Taseer Hadi Khalid & Company
Chartered Accountants
LEGAL ADVISORS
Liaquat Merchant Associates
MEDICAL ADVISORS
Dr. Tajuddin A. Manji
BANKERS
Standard Chartered Bank
Habib Bank Ltd
Soneri Bank
United Bank Ltd
SHARE REGISTRAR
THK Associates (Pvt.) Ltd.
RATING COMPANY
The Pakistan Credit Rating Agency (Private) Limited (PARCRA)
JCR VIS Credit Rating Company Limited.
HEAD OFFICE / REGISTERED OFFICE
2nd Foor, Jubilee Insurance House, I.I. Chundrigar Road,
Karachi, Pakistan.
Tell: 22416022 26
Fax: 2416728, 2438738
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EXECUTIVES
President & Managing Director
Tahir Ahmed, BE, MBA, ACII, Chartered Insurer
Executive Directors
Abdul Rahim, ACII
Atiq Ahmad Mahmudi, B.Com, LLB, FCA
Joint Executive Vice Presidents
Mohammad Ikram, BA, LLB
Brendan Thomas D Lima, B.Com
Muhammad Afzal Ud Din , B.Com
Azfar Arshad, BE (Mech), MBA
M Uzair Mirza, BE (Elec) MBA
Syed Sohail Ahmad, MBAD
Muhammad Safdar MBA, ACII
Syed Ather Abbas, MBA
Senior Vice Presidents
Mehboob Pervez, BA
Zahoor A Shahen, MBA
M Nadeem Irshad, B.Sc
Syed Noman Kadri, M.Sc
Ilyas Muhammad
Nawaid Jamal, ACA
Karim Merchant, BE (Mech), ACII
Syed Abid Waseem, B.Com, Adv PGD
Zulfiqar Ali, Abdullah MBA
Kamran Arif, B.Com
Chaudhary Sardar Ali, B.A.
Syed Imran Rabbani, M.A.
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CORPORATE BUSINESS AND

DEPARTMENTAL STAGES
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WHAT IS INSURANCE?
A promise of compensation of specific future losses in exchange for a periodic
payment. Insurance is designed to protect the financial well-being of an individual, company
or other entity in the case of upexpected loss. Some forms of insurance are required by law,
while other are optional. Agreeing to the terms of an insurance policy creates contract
between the insured and the insurer. In exchange for payments from the insured (called
premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence
of a specific event. In most cases, the policy holder pays part of the loss (called the
deductible) and the insurer pays the rest.
Insurance is a system by which a risk is transferred by a person, business, or

organization to an insurance company, which reimburses the insured for covered losses and
provides for sharing the costs of losses among all insured. Risk, transfer, and sharing are
vital elements of insurance.
Insurance people are no longer in the business of forming fire bridges to put out fires
at members homes, as they did centuries ago. But the idea of combining resources to protect
against loss is still basic to the insurance business.
Insurance companies are new financial institutions. They sell insurance policies to
protect people against financial hardship caused by accidental losses.
The insurance
company is an insurer. A person, business, or organization that is covered, or insured by a

an insurance policy is referred to as an insured.
The purchase an insurance policy and become an insured, an insurance buyer pays a
fee, call an insurance premium, to the insurance company. To keep the insurance policy in
effect, the insured pays more premiums at periodic intervals.
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The insurance company pools these premiums to form a fund from which those
insured who suffer lossess unfortunate victims of fire, vehicle accidents, earthquakes, and
so on can be reimbursed. Each insured pays a relatively small amount (the premium) into the
pool. These relatively small premiums, added together, develop a sizeable fund from which
payments are made to compensate the insured who have losses. In this way, for responsible
cost, each insured can be sure that a loss will not cause undue financial hardship.
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FUNCTIONS OF INSURANCE
Risk Transfer Mechanism
Creation of Common Pool
Collection of Equitable Premiums
Financial compensation for losses
BENEFITS OF INSURANCE
Peace of Mind
Loss Control
Social Benefits
Investments of Funds
Invisible Earnings
Assist Business
Assist Credit
Assist Families
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TYPES OF INSURANCE
Different Insurance Companies offer many types of insurance policies according to
the market demand and according to the compays financial situation as well. So here some
of the most known insurance policies are discussed as follows: Non Life or General Insurance
Life Insurance
GENERAL INSURANCE
Non-Life insurance is also called property and casualty insurance, property and
liability insurance or general insurance. In purchasing non life insurance, the customer is
buying financial protection against a specific insurable event, such as industrial injury.
Policies are typically short term (one year) indemnity (i.e. the customer will be compensated
in an agreed manner) contracts. Normally, there is no investment element or expectation of
financial return.
Non life insurance is further classified along personal and commercial lines.
Fire insurance
Marine insurance
Automobile insurance
Miscellaneous insurance
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PRINCIPALS OF INSURANCE
Insurance based on the following principles:
UTMOST GOOD FAITH
A positive duty voluntarily to disclose, accurately and fully, all facts material to the
risk being proposed, whether requested or not.
Ordinary contracts are subject to the doctrine of Caveat emptor (let the buyer
beware) but insurance policies are subject to Uberrima fields (Utmost good faith),
which requires both the parties, insured and insurers to exercise utmost good faith and
make full and complete disclosure of all material facts.
Important feature of insurance contact in that all material facts concerning subject
matter of insurance are known by only one of the parties that is proper. The duty of
full disclosure mainly rests on the proposer. They may be a few instances of breach
of duty of full disclosure by insurers, such as:
o Accepting an insurance which they know is not enforceable at law or which
they are not registered to underwrite.
o Making untrue statements during the negotiation with the prosposer
MATERIAL FACT:
Every circumstances is material which would influence the judgement of a prudant
insurer in fixing the premium or determining whether, he will take the risk.
FACT, WHICH MUST BE DISCLOSED:
Full facts relating to the description of the subject matter of insurance.
Facts which show that the particular risk represent a greater exposure than would be
expected from its nature or class.
External facts which make the risk greater than normally expected.
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Declinature or special imposed on previous proposals by other insurers.
Existence of other insurance policies.
FACT WHICH NEED NOT BE DISCLOSED:

Facts of law
Facts of common knowledge
Facts which lessen the risk
Facts which could reasonable be discovered
Facts which a survey should have revealed
Fact covered by policy condition
INSURABLE INTEREST
The legal right to insure arising out of a financial relationship recongnized at law
between the insured and the subject matter of insurance.
ESSENTIALS OF INSURABLE INTEREST:
There must be some property, life, interest and potential liability;
Which must be the subject matter of insurance
Relationship between the insured and subject matter of insurance must be recognized
at law.
The insured must stand in are pationship with the subject matter of insurance whereby
he benefits from its safety, well being or freedom liability and prejudiced by its
damage or existence of liability.
WHEN INSURABLE INTEREST MUST EXIST:
For life insurance at the time of inspection
For marine Cargo at the time of loss
For other insurances at the time of inception and at the time of loss
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PROXIMATE CAUSE
Proximate cause means the active, efficient cause that sets in motion a chain of
events which bring a result, without intervention of any force started and working actively
from a new source.
If the insured seeks to claim from his insurer for a loss, he must show that the loss
was caused as a result of a peril covered by the policy. There must be a direct
relationship of cause and effect, of which the cause must be proximate in
efficiency though not necessary in point of time. This takes into account that a
particular effect may be the result of a chain of causes in which each cause is a
natural result of the preceding cause, but the chain of causation may be broken by
intervention of a new and independent cause.
It is the dominant cause, not necessarily, the first cause not the last cause. In case
there are several causes operating, the proximate one will be the dominant, more
forceful one operating to bring about the result.
One method of coming to a decision is to begin with the first event in the chain
and imagine what is logically likely to happen next. If the answer leads to the
second even and so on until final event, then the fist event is the proximate cause
of loss.
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INDEMNITY
To place the insured in the same financial position after a loss as he enjoyed
immediately before the loss.
Doctrine of indemnity is of central importance to the operation of insurance.
Insurance policies are contracts of indemnity except life and Personal Accident
Insurances where it is not possible to measure loss of life, limb and permanent
disablement in terms of money.
There are at least four methods, the insurer may use to provide indemnity, when a
valid claim arise. The wording of the policy usually gives the insurer the right to
choose which method to adopt.
CASH PAYMENT:
This is the method adopted in most of the cases. A cheque for the amount of loss,
payable under the policy is issued to the insured.
REPAIRS:
Under this method insurer provides all the expenses regarding the repairs of the
insured subject or get the subject repaired from his authorized repairer.
REPLACEMENT:
Generally speaking replacement method does not appeal to insurers and seldom used
to provide indemnity.
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REINSTATEMENT:
If refers to property insurance, where an insurer undertaking to restore or rebuild a
building or a piece of machinery damaged by peril insured. This option is rarely exercised
because of potential problem. Firstly, the insurer must restore the property substantially to
the same condition, failing which he will be liable in damages. Secondly, unless there is
express condition in the policy, the insurer cannot limit his expenditure to the sum insured.
He is bound once he has elected to reinstate, to do so irrespective of the cost.
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SUBROGATION
It is the right of the insurer who has granted an indemnity to receive, after payment
of a loss, the advantage of every right of the insured, arising previously or in the future,
including rights in contract or in tort, which may diminish the insureds loss.
The doctrine of Subrogation has been adopted solely for the purpose of
preventing the insured from recovering more than a true indemnity, and it
does not arise from any of the terms of a policy of insurance.
Subrogation rights apply only where there is legal liability and do not apply in
respect of a gift of a charitable nature which is clearly expressed to benefit the
insured exclusively.
Thus, if the insurers make an ex gratia payments they
are thereby deprived of any subrogation rights to which they would otherwise
have been entitled.
Rights to subrogation may accrue to the insurers as a result of tort or of
contract or of the provisions of a stature.
o Tort:
In the case of a fidelity guarantee, the insurers are entitled to
claim against the defaulter re-imbursement of the amount which they

have paid.
o Contract: If goods are lost or destroyed in the hands of a bailee, such s
a carrier, the insurers may sue the bailee upon the contract of bailment.
o Statue: Where property is damaged in a riot, the property owner, by
virtue of the Riot (Damages) Act 1886 is entitled to compensation out
of the police rate for the district.
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CONTRIBUTION
Where the insured has more than one policy under which claim for a particular loss,
there is, in the absence of a specific condition, nothing to prevent him the sum insured under
the policy he chooses is adequate to cover his loss.
An insured may effect more than one policy to cover the same property or
interest, he can not recover in total more than a full indemnity.
The right contribution arises only when all the policies concerned:
o Cover the same peril,
o Cover the same subject matter and
o Are effected by or on behalf of the same insured.
Property and pecuniary insurances generally, but not invariably, contain an
express contribution condition.
If at the time of any destruction of or damage to any property

hereby insured there be any other insurance defected by or on
behalf of the insured covering any of the property destroyed or
damaged, the liability of the company hereunder shall be limited to
its rate able proportion of such loss or damage.
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INSURANCE SECTOR IN PAKISTAN

At the time of independence, the country had 5 domestic and 77 foreign insurance
companies.
There companies were regulated under the insurance Act of 1938.
The
government in 1948 established the Department of Insurance within the domain of Ministry
of Commerce to supervise the affairs of insurance industry and to safeguard the interests of
the insured. The Act was amended in 1958 for the fist time keeping in view the requirements
of domestic market and to have effective control over the insurance premium rates. Since
then, various amendments have been made in the Act.
The Department of Insurance further created the Controller of Insurance for the
supervising insurance business in the country.
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LISTED INSURANCE SECTER IN PAKISTAN

Local non life insurance companies
44
Foreign Non life insurance companies
02
State owned non life insurance companies
01
Takaful non life companies
03
Takaful family companies
01
State owned Reinsurance companies
01
Local life insurance companies
02
State owned life insurance companies
01
Foreign life insurance companies
02
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ORGANIZATION STRUCTURE
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ORGANOGRAM
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COMPANY AWARDS
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Al Hamdo Lillah
NJI is the only top Pakistani insurer with the distinction of being assigned an
AA insurer financial strength rating by both PACRA and JCR VIS
The fact that two independent rating companies have once again rated us as as
AA reaffirms NJIs Financial strength which has been steadily built over
half a country.
We thank our clients for the confidence they have placed in us and shall
endeavor to always provide them the highest level of security and service.
(A message from NJI)
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PROPERTY INSURANCE
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Who can Insurer?
All large industrial groups like Cement plants, Polyester Plants, Refinery, Sugar,
Textile, Pharmaceutical, Biscuit manufacturers, Paint factories, Automobile assembly plants,
Chemicals manufactories, Cigarettes manufacturer, Diary products, Engineering based Glass
factories, plastic goods manufacturers, poultry farms and others.
Also emerging S.M. Es, Shops, Warehouses, Schools, Hospitals, Residential houses,
distributors etc.
OVER AVAILABLE AGAINST:

Fire & Allied Perils
Burglary
Explosion
Riot & Strike Damage
Malicious Damage
Storm & Flood
Earthquake
Impact Damage
Aircraft Damage
Spontaneous combustion
Business Interruption following fire & allied perils
Terrorism
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OTHER INSURANCES
In addition to the above, company offers Business Interruption insurance following
any damage due to perils stated above.
Our team will also be happy to design covers according to the need of clients.
DISCOUNT
Discounted rates in industrial risk protected by sprinklers, fire hydrants & buckets, we
offer special discounts.
MARINE INSURANCE
WHO CAN INSURE:
Importers & Exporters also industrials units importing raw material /or packaging
material, plant machinery and equipment for modernization and expension.
COVER AVAILABLE AGAINST:
Loss or damage to the cargo during transit, from the place of origin till final
destination. Also cover dispatch of finished goods from the insured factory to any where in
Pakistan and vise-versa.
Marine Cargo Import
Marine Cargo Export
Marine Cargo inland transit
Marine Umbrella liability
Marine Advance loss of profit
Sellers contingency policy
Marine Hull
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OTHER INSURANCES?
We will be pleased to answer your queries regarding Marine Hull (Ocean Vessels or
vessels for break up), Barges, Travelers, Tugs, Pleasure Boats etc.
Pleasure Craft Policy
Sports Craft policy
SPECILA DISCOUNTED RATES AVAILABLE:

For cargoes dispatches in countries from destination, company offer special
discounted rates.
SPECIFIED COVER:
Company also design tailor made insurance covers for import of plant and machinery
by offering Marine cum Erection which not only cover the machinery being imported but
also cover the plant and its machinery during erection.
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MOTOR INSURANCE
Who can insure:
Large corporate groups having fleet of vehicles, leasing companies, banks offering
auto loan schemes as well as individuals.
Private Car Comprehensive
Commercial Vehicle Comprehensive
Motorcycle Comprehensive
Motor Third Party Liability
Trade Plate Policy

In addition, for those wishing to have only restricted cover company also offer
insurance covering 3rd party liability cover only.
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BOND
Bid Bond
Mobilization Advance Bond
Performance Bond
Maintenance Bond
Customs Bond
Excise Bond
Supply Bond
Retention Money Bond
Utility Bond
ENGINEERING INSURANCE
Who can insure:
All industrial risk having plant, machinery and specialized equipment, contractors and
sub-contractors.
Contractors All Risk
Erection all risk
Comprehensive project insurance
Advance loss of profit following CAR/EAR
Comprehensive machinery insurance
Machinery breakdown (MBD)
Boiler & Pressure Vessel
Business interruption following MBD
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Contractors Plant & Equipment
Computer & Electronic Equipment
Deterioration of Stock following MBD
To cover civil works. The policy offers wide coverage to property whilst under
construction. The policy is issued either in favour of principal or contractor and it can also
be jointly in favour of both parties. The policy is also extended to cover liability to third
parties.
ERECTION ALL RISKS:

The costly plant and machinery are insured on wider terms, they are being erected at
site. The policy is also extended to cover testing and maintenance period.
Here again, the policy can be issued jointly in favour of principal and contractor.
The policy is also extended to cover liability to third parties.
CONTRACTORS PLANT & EQUIPMENTS:

The contractors while working on project normally takes with them on site heavy
plant & equipment. We offer wide comprehensive cover to issue the same.
MACHINERY BREAKDOWN:
Plant & Machinery installed in industrial units are susceptible to damage. Company
provide wider coverage.
GROUP HAELTH INSURANCE
NJI is the pioneer and market leader in health insurance in Pakistan, which provides
flexible plans designed to meet the vital, but often underestimated, health needs of corporate
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client. We provide high levels of protection against the financial consequences of basic
hospitalization needs through our Hospitalization Benefits, which is our cover. In addition,
we specialize in customizing additional optional benefits such as:
COMPREHENSIVE DREAD DISEASE EXPENSES BENEFITS:
To benefit offers additional coverage against the expenses of certain dread disease
which cause heavy in-patient expenses. Such diseases may include heart attack, stroke,
kidney failure, cancer, AIDS, major organ transplant, etc.
COMPREHENSIVE HOSPITALIZATION EXPENSES BENEFITS:
This benefit also offers additional coverage for hospitalization expenses for all
eligible conditions under the policy. This benefit is very useful for expensive medical
treatment for the conditions covered under Comprehensive Dread Disease as well as knee or
hip replacement surgery.
MATERNITY EXPENSE BENEFIT:
Maternity expense benefits pays for medical expenses related to pregnancy and child
birth. All expenses directly or indirectly related to pregnancy, i.e. parental and postnatal
complications, cesarean sections etc. are paid as per entitlement of limit.
Circumcision of baby boys is also included in the annual maternity limit.
OUT PATIENT EXPENSE BENEFIT:
This section of the policy covers expense arising from sickness and injuries which do
not require hospitalization. Doctors fees, laboratory tests, costs of medicines and incidental
supplies, X-rays and examinations i.e. ECGs, ETTs, EEGs, etc are covered.
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Company have a network of panel hospitals countrywide, with credit facilities for our
clients. The benefits of such an arrangements are:
No prior approval that provides out clients with the peace of mind, when carrying
our health cards / letters.
No claims to be filled
No administrative issues such as claim correspondence and documentation, etc.
No cash flow problems.
In addition company have full time and knowledge medical doctors available round the clock
to provide guidance for the best possible medical care.
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MISCELLANEOUS INSURANCE
CASH INSURANCE:
The cash policy is designed to covers
Cash in Safe
Cash in Transit
Cash in Counter
FIDELITY GUARANTEE INSURANCE

This policy covers misappropriation or embezzlement committed by a permanent employee
of the organization during the course o his employment.
HOUSEHOLDERS COMPREHENSIVE:
This policy is designed to provide cover to building of a bungalow or an apartment. It covers
the entire furniture, fixture, electronic items, carpets, etc.
NEON SIGN:
The advertisement neon sign are comprehensively covered against fire, damage and other
perils.
PLATE GLASS
The expensive plate glass is covered on the comprehensive basis against accidental damage
and many other perils.
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OTHERS:
Workman Comprehension
General Public Liablity
Product Liability
Employers Residual Liability
Golfers Policy
Aviation Insurance
Travel Insurance
Baggage Insurance
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SPECIALIZED INSURANCE:
Bankers Blanket Bond
Computer Crime
Plastic Card
Safe Deposit Box
Foreign Currency Exchange Policy
Comprehensive Security Guard Co. Policy
Kidnap & Ransom
Professional Indemnity Policy
Directors & Officers Liability
Residential Value Insurance
Energy Risk Policy
Protection & Indemnity Insurance
Prize Money Insurance
Event Cancellation Insurance
Network Operators Policy
Submarine Cable Policy
Off Shore Construction Project Policy
Control of Well Policy
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BRANCH NETWORK
SOUTHERN ZONE
CORPORATIVE DIVISION
Shahab Khan, Senior Vice President
2nd Floor, Jubilee Insurance House,
1.1 Chundrigar Road, P.O. Box 4795, Karachi 74000.
UAN: 111-654-11 Tel: (9221) 2416022-26
Fax: (9221)2416728, 2438738
COMMERCIAL UNIT I
Mohammad Safdar, Senior Vice President
3rd Floor, Jubilee Insurance House,
1.1 Chundrigar Road, P.O. Box 4795, Karachi 74000.
BUSINESS & FINANCE CENTRE
Syed Sohail Ahmed, Senior Vice President
Room No. 503, 5th Floor,
Business & Finance Centre,
1.1. Chundrigar Road, Karachi - 74000
Tel (9221) 2422215 16 Fax: (9221) 2471716
JODIA BAZAR
Muhammad Amin Haroon, Assistant Vice President
Room Nos. 105 107
1st Floor ismail Trade Centre,
Rambharti Street, Jodia Bazar Karachi,
Tel: (9221) 2422215 16 Fax: )9221) 2420451
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SHAHRAH E FAISAL
Shehnaz Qasim, Joint Senior Vice President
Room No. 405, 4th Floor, Progressive Square,
Block 6, P.E.c. H.S., Shahrah-e-faisal ,
Karachi 7500.
Tel: (9221) 4524147, 4391172
Fax: (9221) 2241731
SADDAR
Syed Tanzeem-Ul-Hassan, Vice President
1st Floor, POF Complex, 252-A,
Sarwar Shaheed Road,
Near Press Club, Karachi,
Tel: (9221) 2422927, 2416022-24
Fax: (9221) 2423627
NEW UNIT BRANCH
Syed Noman Qadri, Senior Vice President
Jubilee Insurance House,
1.1 Chandrigar Road, Karachi 74000
Tel: (9221) 2422927, 2416022-24
Fax: (9221) 2423627
HYDERABAD
Syed Wiqar Hyder Taqvi, Assistant Vice President
Sardar Manzil, Risala Road,
Saddar, Hyderabad 71000
Tel: (92222) 781982
Fax) (92222) 729624
SUKKAR
Syed Jaffer Raza, Regional Manager
C-470/A-3, Queens Road,
P.O. Box 118, Sukkur 65200
Tel: (9271) 5623851
Fax: (9271) 729624
MULTAN ZONE MAIN BRANCH
Chaudhary Sardar Ali, Joint Senior Vice President
1st Floor, Al-Razzaq Plaza,
Abdali Road, P.O. Box 57
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Multan 60000
Tel: (9261) 4549594, 4549874
Fax: (9261) 4588965
BAHAWAL PUR
Sanaullah Chaudhary, Vice President
1st Floor, Shah Din Plaza
P.O. Box 113, Stadium Road, Farid Gate, Bahawalpur
Tel: (9262) 2877568
Fax: (9262) 2877868
BAHALW NAGAR
Rai Zahoor Ali Khan, Senior Manager
Khan Baba Road, Bahawal Nagar
RAHIM YAR KHAN
Bashir Ahmed Khan, Assistant Vice President
Upper Story, First Women Bank Ltd.,
Shahi Road, P.O. Box 243,
Rahim Yar Khan.
Tel: (9268) 5874442
Fax: (9268) 5872243
LAHORE ZONE
Muhammad Ikram, Joint Executive Vice President
Main Branch (Sales UNIT I)
2nd Floor 1 Capt. Anwar Ul Haq Shaheed Road,
P.O. Box 68, Lahore 54000
UAN: 111-654-111
Tel: (9242) 6283661-3
Fax: (9242) 6283660
SALES UNIT III
Haji Muhammad Ramzan, Joint Senior Vice President
2nd Floor 1 Capt. Anwar Ul Haq Shaheed Road,
Tel: (9242) 6283664 8
Fax: (9242) 6283669
MALL MANSION
SALES UNIT IV
Zahoor Ahmed Shaheen Senior Vice President
6- Maill Mansion,
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Shahrah-e-Quaid-e-Azam, Lahore
Tel: (9242) 7211300-4
Fax: (9242) 7211305
COMMERCIAL UNIT II
Ilyas Mohammad, Joint Senior Vice President
Ist Floor, 1 Capt. Anwar Ul Haq Shaheed Road
Tel: (9242) 6283664 8
Fax: (9242) 6365067
BANK SQUARE BRANCH
Muhammad Ashraf Tahir, Joint Senior Vice President
3rd Floor, H.M. House Plot No. 7
Bank Square, Lahore
Tel: (9242) 7312325
Fax: (9242) 73112389
FAISALABAD
Syed Hamid Hussain Zaidi, Vice President
P-68, Allama Iqbal Road, Faisalabad.
Tel: (9241) 2643020, 2640782
Fax: (9241) 2638780
SIALKOT
Rizwan Ul Haq, Branch Manager
Office No. 1, 2 8:3, 1st Floor,
Kashmir Centre, Court Road,
Sialkot
Tel: (9252) 4274631-2
Fax: (9252) 4274630
ISLAMABAD ZONE ISLAMABAD
Ejaz Mehmood, Assistant Vice President
1st Floor, Kashmir Plaza, Jinnah Avenue, Blue Area, Islamabad
UAN: 11-654-111
Tel: (9251) 2270365-7
Fax: (9251) 2275317
REGIONAL OFFICE PESHAWAR
Iqbal A Rohilla, Assistant Vice President
Office No. 7, 2nd Floor, Block A, Cantt. Plaza
Super Market, Fakhar-eAlam Road, Peshawar Cantt.
Tel: (9291) 5273459
49

Fax: (9291) 5274698
WORKING OF VARIOUS
DEPARTMENTS
50
RATING & UNDERWRITING

DEPARTMENT
51
RATING AND UNDERWRITING

The accurate rating of risk can make the difference between profit and loss for an
insurer. Setting too low a rate for a particular type of motor insurance risk will result in a
loss for each policy written and particularly with the advent of computer quotation systems,
such bargains will be unearthed, thus leading to a flood of similar non-profit-making
business.
Conversely, a higher rate than is warranted will lead to potentially profitable business
going to a cheaper competitor. The process whereby the market place will seed out and
exploit weaknesses in rating structures is known as selection and can destroy an account.
Rating is based upon experience. Firstly, there is the experience of the market as a whole and
secondly, and perhaps more importantly, the experience of the particular insurer.
In order to maximize the accuracy and therefore, the benefits of the latter it is
essential that data is held electronically in a format that will allow sophisticated analysis.
This facilitates the use of statistics to the rating of motor insurance risk and as a result,
insurer have been more willing to employ actuaries either in the underwriting department or,
at the very least, have an actuary who can provide input in the risk assessment process.
The underwriting department issues the policies after careful evaluation of associated
risks which comes for coverage; it is the duty of the Underwiting Department to examine the
risk and take all precautionary steps for evaluation before issuing policies / cover notes which
the companys management has determined.
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The top level management has established overall underwriting plans and strategies,
and the underwriting department is responsible to follow and develop specific guidelines to
cope with the policy and strategy formed and implemented by the top level management of
the company. With board strategy and specific directives aligned, the department executes
the risk selection and risk pricing process. The department also keeps in mind all of the
underwriting elements before designing and pricing an insurance cover note.
OBJECTIVES OF UNDERWRITING DEPARTMENT
To evaluate and reduce the risk, specifically in respect of expected claims.
To provide maximum protection and better services to our clients.
To provide complete information and guidelines about the insurance to our clients
when ever required.
To ensure optimization of cost.
To develop a sound relationship with all other functioning departments of the

company.
MAIN FUNCIONS OF UNDER WRITING DEPARTMENT

The responsibility of the Underwriting Department is to examine, accept or reject the
business containing on day to day work.
First of all when any client who wants insurance policy to protect his stokes or any
property, the staff of the Underwriting Department is involved in this matter to feel
the hazards which are associated with the risks come for insured. There are two main
hazards physical and moral hazard that the underwriting department keeps in mind
when issuing any property. In physical hazards, it is important to remember that the
structural condition for the insured property. If a severe moral hazard exist, then no
rate is adequate to compensate for such hazards. Decisions of the under writing
department are of two types which are as follows: -
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o Decision on applying an insureds existing policy for a specific request for
coverage.
o Decision on new risk coverage.
Once the Underwriting Department has decided that a risk is acceptable, it finally
undertakes solid steps to evaluate all risks.
Then it examines the authenticity of cover notes issued by marketers. It carefully

examines the interest rates written on the cover notes according to the tariff rates
provided by the Insurance Association of Pakistan. Then identify risks associated in
each cover note and then classify as hazards or non-hazards. It also ensures all
warranties and clauses included in the cover note / policy. After this its responsibility
is to examine the parties involved in insurance (preferences is given to those cover
notes and policies where banks or financial institutions are involved.
Finally after the completion of the assessment of risks, rating procedure and
warranties, the authorized insurance policies documents are issued to the particular
clients.
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CLAIMS DEPARTMENT
55
PRINCIPALES OF CLAIMS HANDLING

It is when the policyholder needs to make a claim that he value of the cover and the
claims service is put to the test. It is, therefore, no surprise that the claims department has
been describing as the shop window of an insurance company.
Whilst motor insurance, particularly private motor, is old largely by price, nonetheless
and does effect a policyholders decision as to whether they renew with their current
insurance following submission of a claim.
The claims department must balance the necessity to provide a high degree of service
with the requirement to be satisfied that the claims presented are valid. Once their validity is
proven, then the next stage is to quantify accurately each claim.
The role of the claims department is to:
Indemnity the policyholder in accordance with cover purchased.
Ensure that only valid claims are paid.
Provide a fast, fair, and efficient claims service.
Deal with third party claims whilst protecting the policy holders interests and
Protect the fund of premiums against overpayments, fraud and expenses incurred due
to inefficient claims handling processes.
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CLAIM PROCESS
Claim process varies according to the:
Class of business
The type of cover
The amount of the claim
Whether it is a personal or commercial risk insured
CLAIM REVIEW
This involves the analysis of the claim by the insurer in the light of such things as:
The appropriateness of the amount claimed
The personal form e.g., whether the claim contradicts earlier statements
The exact terms of the policy, which are often, open the interpretation.
Legal requirements.
Market practice
Corporate claims philosophy
RESPONSE TO CLAIMANT
The initial response from the insurer to the insured may be only an acknowledgment
or a request for further information. Depending upon this further information the insurer
must then convey their claim decision which can be one of three choices.
Payment: i.e. acceptance of the claim in broad terms.
Negotiation: i.e. The offer of a lower amount than that claimed or an offer to enter
into negotiation with the insured with no amount initially named. In this situation
liability is accepted by the insurer and the quantum of the claim is the only point in
dispute, or
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Rejection: i.e. liability is not accepted by the insurer, the full reasons for the decision
should be stated.
REINSURANCE DEPARTMENT
58
ACCOUNTS DEPARTMENT
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INTRODUCTION
The accounts department has significance importance for every type of organization
whether that is trading or non-trading, manufacturing or providing services, etc.
The management NJI Company Limited has divided its accounts department in two
separate sections; each section is interrelated with each other, in order to facilitate day to day
functions of the department effectively and efficiently.
OBJECTIONS OF ACCOUNTS DEPARTMENT

The objectives are as follows:
Preparation and keeping record of all financial transactions of the company.
Preparation of financial statements (quarterly, half yearly and annual accounts).
Accomplishment of process of statutory audit.
Compliance with the requirements of the ordinance, 1984.
Compliance with the requirements / directives of Securities and Exchange

Commission of Pakistan (or insurance department) applicable to the company.
Compliance with the requirements of taxation law applicable to the company.
Compliance with the requirements of central excise duty law applicable to the
company.
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Compliance with the requirements of the federal insurance fee laws applicable to the
company.
Compliance and adaptation of the requirements of international accounting standards.
To ensure that prosper system of internal control is carried out.
Provision of information to management for planning and decision masking.
Arrangement of finance for the company whenever required.
DUTIES OF ACCOUNTS DEPARTMENT

Some of the important functions of the accounts section are described as follows:PREPARATION OF VOUCHERS
In account department under the supervision of concerned officers, I came to know
different type of vouchers being prepared and their process of preparation. Vouchers are
written evidence of any business transaction. The different type of vouchers being prepared
by the accounts department of NJI Company Limited is as under.
Cash payment vouchers.
Cash receipt vouchers
Bank payment vouchers
Bank receipt vouchers
Journal vouchers or adjustment vouchers
Premium vouchers
Adjustment / journal voucher
LEDGER POSTING
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Computer operator put log no and make posting in computer. Accounts of NJI Co.
Limited are computerized and ledgers are prepared in computer. After the preparation and
coding of voucher it is sent to computer operator for posting. A daily print out of all entries
is checked to prove the accuracy. After checking the accuracy the master file is update and
posting is made to respective account ledger by the computer.
OTHER FUNCTIONS.
Accounts department also handled the payments of the staff salary, traveling
allowance and loans to staff, medical allowance, provident fund and other such kind of
payments. Bank reconciliation statement is prepared periodically in order to find out reasons
for disagreement between the bank passbook and the cashbook. Reasons due to which there
occurred discrepancies are as: uncollected or un credited cheques. Un-presented cheques
deposits in transit, amount received by bank or companys behalf, amount paid by bank on
companys behalf, error of transaction of figures, cheque deposited into bank but not entered
cashbook.
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INTERNATIONAL AUDIT &

EVALUATION DEPARTMENT
63
WHAT IS AUDIT?
The concept of auditing is closely related with the concept of accountability, it is a practice
by which some subject of interest is examined by independent and professionally qualified
persons and a report is presented. Auditing is generally considered to be associated with
accounting and financial records only but these days the scope of auditing has broadened and
it covers nearly all the areas of business activity like financial statements, management
efficiency, quality of systems, evaluation of performance and many others. In this book,
however, we shall deal only with the audit of financial statements.
International Auditing Guidelines used to define Audit as:
An audit is the independent examination of financial
statement or related information of an entity, whether
profit oriented or not and irrespective of its size, or legal
form when such an examination is conducted with a view
to express an opinion thereon.
OBJECTIVES OF AN AUDIT
PRIMARY OBJECTIVES:
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Fairness of Statements:
The purpose of auditing is to determine the fairness of statements.
Prescribed Laws:
There are various laws that given the working of many businesses such as
companies ordinance 1984 is for the working of companies.
Accounting Policies:
There is a need to follow the accounting policies for preparing accounting
records.
Expression of Opinion:
An audit enables the auditor to express an independent opinion on the
financial statements.
FINANCIAL ANALYSIS
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FOR THE PURPOSE OF ANALYSIS, FOLLOWING FINANCIAL STATEMENTS

HAVE BEEN USED:
BALANCE SHEET
Balance sheet shows the financial position of company on a particular time. We have
used the balance sheet of last two years starting from 2005 to 2006.
PROFIT & LOSS ACCOUNT

Profit and loss account describes the total income and expenses incurred to obtain that
income. We have used profit and loss account of Adamjee Insurance Company Limited of
last five years starting from 2005 to 2006.
CONSOLIDATED INSURANCE REVENUE ACCOUNT.
Consolidated Insurance Revenue account is a account in which all the direct
Insurance business of New Jubilee Insurance Company Limited is stated. The final balance
66

of all revenue accounts like fire insurance, marine insurance, motor insurance and
miscellaneous insurance accounts are shown.
Before the Insurance Ordinance 2005, all insurance companies can prepare
Consolidated Insurance Revenue Account under the Insurance Act 1938. But in the new
ordinance all the related balances of insurance accounts are directly shown in Profit and loss
account.
The financial statements for the period-analyzed are as follow:
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68
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PROFITABILITY RATIO
1. A sudden high increment in profit as compared to premium accumulation shows the
companys strength. It is because of low expenses ratio while having larger pool of premium
than previous years. But in coming two years respective decline indicate low premiums and
high taxes.
2. Second profitability ratio is correspondingly shows the same trend. In first proceeding
year it jumps to high figure but afterwards declines due to low investment amounts and
premium pool while incurring high expenses.
RETURN TO SHARE HOLDERS:

1. Companys profit after tax is not giving a satisfactory note at the end. It again had
come to the same point from were it has started. It all depends on your investment
profit folio and opportunities available in market at that time.
2. As usual a tremendous increase is there in first proceeding year but anyhow company
is still stable in this regard as compared to other relating factors.
3. In first year price earning ratio has decreased in contrary to other indicators but in
following terms it gives a good figure. This thing shows the companys strategy of
investment appraisals and keen view of market strength.
4. In spite of all shortcomings and flaws in different market and business aspects,
company has maintained its cash divided to the same extent. It will surely intensify
the companys image about corporate client sovereignty.
LIQUDITY RATIOS:
1. Due to low premium pool company still has enough liquid assets to meet the current
and future liabilities of its stock holders and other people.
2. Bad figures of profit and loss account are decreasing the opportunities of new paid up
capital. So level of paid up capital is decreasing as compared to last years.
3. Decreasing paid up capital is an alarming situation for the company. So it has to
increase equity to sustain its presence in the market.
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HORIZONTAL ANALYSIS OF PROFIT & LOSS ACCOUNT

Description
Increase in net premium revenue
Increase in net claims
Increase in expenses
Increase in commission
Increase in investment income
Increase in rental income
Increase return on bank deposit
Increase other income
Increase general & Admin expenses
Increase share of profit of associate
Increase profit before taxation
Proposed dividend
Revenue for issue of bonus shares
Transfer to general revenue
2005-06
62.08
60.13
37.12
222.56
41.65
27.67
266.93
444.74
34.08
54.65
52.47
14.99
53.34
428.57
2004-05
43.34
41.14
17.37
303.45
220.86
5.10
104.04
34.59
2.61
44.52
125.90
14.99
53.34
428.57
INTERPRETATION
There is a significant increase in the amount of premium in each class
of business which shows the best marketing practice and the good reputation of the
business. The increase in the net premium revenue is 62.08% which is a very
remarkable sign.
Increase in net claim is 0.60% which shows the best risk management
practices and the better under writing practices adopted by the company. Increase in
the percentage of claim is much lower than the premium rate increase which leads to
more profits.
Expenses automatically increase with the increase of the business on

this care but good management controls as proportion to the premium amount.
As the business increase the amount of commission will also increase.

The commission rate of the company is relatively high which is offered to the agents.
71

With the increase in the amount of the premium, if commission expenses increase it is
positive sign.
Increase in the investment income shows the expansion of the

investment portfolio & also the better opportunities availed, as there is increase in the
amount of investment the income on the investment wills also income.
The amount of the current and other accounts is less than preceding
year. But current maturing deposits are more and therefore the return on them is
significantly high than previous year: which is a source for indirect income.
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73
74
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EXECUTIVE SUMMARY
I have undergone an internship program as a part of my study schedule. It was a six
week internship program. It was a great opportunity for me to work with such a prestigious
organization which will definitely aid me in developing professional skills and the right
attitude towards achieving my goals.
I worked for six weeks at New Jubilee Insurance Company Limited zonal office
Lahore, as in internee. I was placed in different departments of NJI Co. Ltd. And studied the
whole organization, but I got a chance to do some practical work in the Risk Management
Department, Underwriting Department, Claim Department and Accounts Department.
This helps me a lot in preparing the internship report and the analysis of the Company
and remarked about the company on the basis of my studies and analysis of the financial
statements and overall review of the company. Even though six weeks training is a very
short period to learn about any organization but I gain a lot of knowledge due to cooperative
staff. My working hours in New Jubilee Insurance Company Limited were, from 8: 00 am to
5:00 pm with one hour lunch break.
When I went to NJI Co. Ltd. at 28, June, 2010, the receptionist sent me to Admin
Manager, Mr. Zakir Ahmad who asked me some questions, then took me to Mr. Arif Bashir
(JEVP). I presented him the internship letter granted by the college. After asking some
questions he appointed Mr. Zakir Ahmad as my supervisor.
Mr. Zakir Ahmad gave me introduction about the companys business and told me its
main functions. In the mean while Mr. Zakir Ahmad assigned me a task to visit different
departments. I started visiting different departments from the very next day and met with all
employees and observed their working. Then I was allocated in the following departments.
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RISK MANAGEMENT DEPARTMENT
I spent 4 days in Risk Management Department and there I was assigned by
Mr. Imran
Mr. Usama
(Asst. Manager)
(Asst. Manager)
Both these persons were very cooperative and assisted me all the time willingly. They
provide me the preliminary information about the risk and methods to inspect a risk properly
and told me how the risk management process is employed. What type of recommendations
is made according to the subject matter and type of loss exposure. Personally no any
industrial tour for inspection of the risk was made by me because no opportunity was
provided to me. I just studied the inspection and risk assessment reports prepared by my
trainers.
What type of general information is required by the risk manager, the questionnaire is
given in the Risk Management chapter show the clear picture the that.
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UNDERWRITING DEPARTMENT
This was the second department, which was allocated to me. In this department I
spent two weeks and was assisted by
Mr. Arif Bashir

Mr. Ehsan
Mr. Muhammad Asim
M. Jameel
(VP)
(Asst. Marine Section)
(Asst. Motor Section)
(Asst. Fire Section)
All the persons were very cooperative and polite to me and never hesitated to provide me
any type of information inquired by me. They gave me the information about insurance
policies that company is offering and how these were prepared.
In this department my main duties were as follows:
Prepared cover notes
Prepared the insurance policy schedules
Sorting of the cover notes, policy schedules and their file keeping.
Premium calculations
Respective duties / tax levied
Endorsement making
Marine certificate generation on open policy
Allocation sheet and declaration clause
Tariff rates and clauses
Client card
I spent two weeks in this department but I felt that this was very short time to lean
underwriting as rapid innovations in the products and the changing requirements of the
clients. This job was very interesting and I gained variety of work experience and knowledge
from my seniors.
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After working in undertaking department I was placed in claim department here I worked
under the supervision of
Mr. Asim Ali Khan
(VP)
They were so kind to me and told me some of the important functions and operations of the
department and also told me the procedure of claims of each insurance policy that NJI Co.
Ltd. is offering to its clients.
My main duties in this department were as follows:
Typed the official letters
Filling of claims documents
Rarely, got a chance to go with the internal survey team.
Techniques to receive the Claim
Inspection of claim form
Method of appointed of the loss adjuster and survey
Inspection of survey report
Enter the data electronically
Arranging the document files
Read the policy working condition and warranties and clauses
In claim department I worked for one week and got a wonderful practical knowledge &
experience.
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ACCOUNTS DEPARTMENT
I spent two weeks in Accounts Department and assigned by

Mr. Tariq Mahmood
(AVP)
Mr. Arif Saleem
(Asst. Manager)
Mr. Javed Ahmad
(Asst. Manager)
During my internship in this department I learned about the major functions of keeping
records associated with accounting for services.
Mr. Tariq Mahmood (AVP Accouts) was very cooperative person. He told me about annual
report, balance sheet, income statement and told me that the accounting department was
responsible to collect data and prepare financial statements. With his help I was able to do
financial analysis of NJI Co. Ltd. That was important to know the companys exact financial
position.
My main job in this department was as follows:
Prepared vouchers and recorded them in the computer.
Sorting of vouchers.
Filling of vouchers.
Prepared the bank reconciliation statement
Typed the official letter
Posting in general ledger
Fixed assets system

o Depreciation calculation
Filling the tax returns
Calculation of leave encashment
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Calculation of commission
Preparation of the bank deposit slips
Payroll / Salary Advice
OBSERVATIONS
NJI Co. Ltd. has strong financial standings. It is the honor for NJI Co. Ltd. that
PACRA and JCR VIS the leading rating agencies of Pakistan has given NJI Co. Ltd.
a long term rating of AA which is the one of the best for any insurance company in
Pakistan.
NJI Co. Ltd. has developed strong internship with its customers by understanding
their needs and treating them with respects, dignity and importance. The deriving
force behind its commitments and services is its focus on customers, incurring that it
not only meets, but also exceeds their expectations and this is why that NJI Co. Ltd. is
making progress by leaps and bounds.
The profits of NJI Co. Ltd. have grown considerably and also its market price per
share during the last few years and this trend is expected to continue in future.
Companys claim and expense ratios have also dropped significantly during the last
years due to better underwriting practices.
Company has developed the good contacts with the foreign reinsurance companies of
good rating.
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Company has brushier or forms for the clients to understand the different services that
company is providing.
Company is targeting not only on financial institutions but also individual customers.
Company still not able to become the market leader, since after its establishment in
1953.
The agents of the company are not providing complete information to the customers
according to the tariff.
The higher net profitability shows the companys efficiency in controlling its general
and administrative expenses.
The other major reason behind the higher level of net profitability is the large amount
of investment income received on the investment that company has made in various
organizations including government.
The flaw exists in the asset efficiency of the company. NJI is not efficient is utilizing
its asset in proper way to generate sufficient amount of net premiums.
In branch job rotation is uncommon. Normally employees are not rotated through all
departments during their job tenure which may cause boredom among employees.
The employees of the branch are not motivated to a great extent. After taking into
consideration all above factors how the employees can be motivated?
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SUGGESTIONS AND RECOMMENDATIONS

NEW JUBLEE INSURANCE is one of the leading Insurance companies in Pakistan. After
spending a 6 week of internship it is true to say that the NEW JUBLEE INSURANCE is
well-managed, well organized company. The management has complete control over its
working staff. All the departments in the company are well designed. And the Human
resource is quite efficient, which is the major cause of success of the company in the market.
But in spite of all the factors; there are certain areas on which the company needs to give
more concentration. On the basis of their market place, SWOT Analysis the following
recommendations are suggested:
Employees are less, should hire more people to lessen the over burden of workload.
Salary should be revised.
Technical training must be conducted periodically.
They should hire more educated sales force to enhance the customer supplier
relationship.
The management of New Jubilee Insurance Company should pay concentration to the
insurance expenses and commission which are the major causes of low profitability.
Although company is efficient in controlling its general expenses but it is very
effective.
Because it accounts for a few percentage of premiums volume and
insurance expenses is the major portion of the income statement after net claims.
More and more branches should be opened, particularly in the rural areas.
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More and more focus should be given to enhance public image and goodwill through
superior customer services and interaction.
The management of the company is highly centralized. In order to increase the
performance of the employees they should be actively participated in the decisions
making of the company.
The prices of the products of the company are so high which are just in the range of
the limited Market Niche. So in order to increase the local sales the company must
go for the low pricing strategies for its product.
For better productivity, the higher management must conduct proper seminars,
workshops for all the employees so that they can have up-to date knowledge and they
would be able to increase their skills.
The company should have all sorts of policies in well defined, clear cut written form
so as to be more specific and compare the performance with established goals. This
is very crucial in the modern competitive insurance scenario so as to remove all
deficiencies.
Today is the age of marketing. The more strong will be the marketing of a concern,
the more will be the business. So NJI should heavily emphasize on its marketing
policies. In this way, bank can also establish its creditability in the eyes of public and
can tell them about its offering. Advertisement should run on TV, and in newspapers.
Monetary incentive should be given to employees to enhance their motivation level.
Such type of incentive increase their work efficiency which would be beneficial for
the bank in future.
I hope if all above mentioned areas will be taken care off them it will change things a lot and
will open new ways of prosperity and profitability for company.
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LEARNINGS AS AN INTERNEE
During the internship at the NEW JUBILEE INSURANCE LIMITED, I had learnt a
lot which other wise I would have not been able to experience it. Here at NEW JUBILEE
INSURANCE LIMITED, I really understand the sayings like Seeing is believing (learning
wise) and The real world working is different from which we study in books. I had also
done other internships at different level of my education and every time I had been able to
learn some thing new, so here at NEW JUBILEE INSURANCE LIMITED, I also came face
to face with new atmosphere and new working style, from which I learned many things.
Some of them are:
How to manage the section and its working
What is the working of the private sector
How to control the employees with both hot and cold temper
How to manage the time
How to get work done from the employees within the prescribed time
How to face the problems and get the solution to it.
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How to satisfy or solve the query brought by the employees or the higher officials.
CONCLUSION
At present there is no such organization in the world that is free from problems and
challenges. Every concern has to strive and struggle a lot to be more profitable and to get a
more competitive edge. Improvement and advancement is crucial with every step and with
the every minute passing. Especially insurance sector internationally and in Pakistan is
facing huge challenges and simultaneously getting huge opportunities to avail.
The
competition is great in this regard. Only those insurance companies will succeeded which
will strive for best. But NJI Limited is making as much struggle and effort to be profitable.
Its relative ranking in the world in its country of origin and in Pakistan reveals the
facts that where it is standing. It is facing a lot of problems. Some problems are due to
changing political and economic structure but many problems are due to negligence and
inefficiency of management. Some of these problems are very minor but these are the areas
which make a difference in this competitive scenario. All these problems have been pointed
out later accompanied by related suggestions. All these matters should be seriously taken
care off. It will be so then it can be hoped that in future the relative ranking, its policies,
financial position and all other areas of NJI will improve and in future the picture will be
quite different.
There are some minor problems also these are the things which definitely make a
difference. Today, the foreign companies and local companies in Pakistan are introducing
new ideas, they providing their employees with extended facilities in order to keep their
87

morale high and to full motivate them. But these are the things which are lacking in NJI
Zonal Office. I think that if these problems will be solved, them employees will be more
motivated, more efficient and more productive. Not only the employees but the general
public will also be attracted and profitability will definitely improve.
SWOT ANALYSIS
88
STRENGTHS:
The joining of experienced people, advance management, advance set up and

facilities gave NJI Co.Ltd an edge over its competitors.
Enjoying economies of scale.
Good will in the market.
Strong financial positon.
Long standing clients.
Experienced owners
Organization gives opportunity to this employees for career path.
Have strong distribution channel in Pakistan.
Variety of Products.
89
WEAKNESS
Majority of people are not well aware about NJI Co. Ltd.s product, so it needs
extensive advertisement
Employees discriminate customers on the basis of their status.
Improper human recourse management
Less Incentives to Lower level employees
The furniture available at the branch is not sufficient to occupy a larger number of
people at a time in the branch.
Limited area covered (only major cities are insured)
Lack of infrastructure
No segmentation of market.
NJI is slow to adjust the claim
Less advertisement
90
OPPORTUNITIES
Used Latest IT Technology
Hire insurance experts from other countries
Explore unidentified market segments
Agriculture and live stock market.
91
THREATS
Change in government policies
The competition has become sever by the entrance of new companies.
The decrease in the purchasing power of people in the current economic situation
affecting the business activity speed.
Facing tough competition in market.
New business practices rules and regulations by SECP / Government sectors
High risk in insurance business
Many new insurance companies are entering into the market which are backed by
strong banks that can create problems for NJI.
Govt. allowed foreign insurance companies to start business in Pakistan that can also
affect the whole procedure.
92

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NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

The main focus throughout however has

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NJI has developed unique and innovative

NEW JUBILEE INSURANCE CO. LTD.

This is acquired largely be ability to handle claims

The customer focus and pro-active management approach in all areas of

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

HUMAN RESOURCES AND REMENURATION COMMITTEE

FINANCE AND PLANNING COMMITTEE

BUSINESS DEVELOPMENT COMMITTEE

NEW JUBILEE INSURANCE CO. LTD.

RE- INSURANCE / CO-INSURANCE COMMITTEE

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

CORPORATE BUSINESS AND

NEW JUBILEE INSURANCE CO. LTD.

Insurance is a system by which a risk is transferred by a person, business, or

company is an insurer. A person, business, or organization that is covered, or insured by a

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

UTMOST GOOD FAITH

Full facts relating to the description of the subject matter of insurance.

NEW JUBILEE INSURANCE CO. LTD.

Declinature or special imposed on previous proposals by other insurers.

Existence of other insurance policies.

FACT WHICH NEED NOT BE DISCLOSED:

ESSENTIALS OF INSURABLE INTEREST:

There must be some property, life, interest and potential liability;

Which must be the subject matter of insurance

WHEN INSURABLE INTEREST MUST EXIST:

For life insurance at the time of inspection

For marine Cargo at the time of loss

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

NEW JUBILEE INSURANCE CO. LTD.

Thus, if the insurers make an ex gratia payments they

In the case of a fidelity guarantee, the insurers are entitled to

claim against the defaulter re-imbursement of the amount which they

NEW JUBILEE INSURANCE CO. LTD.

If at the time of any destruction of or damage to any property

NEW JUBILEE INSURANCE CO. LTD.

INSURANCE SECTOR IN PAKISTAN

There companies were regulated under the insurance Act of 1938.

NEW JUBILEE INSURANCE CO. LTD.

LISTED INSURANCE SECTER IN PAKISTAN

Foreign Non life insurance companies

State owned non life insurance companies

Takaful non life companies

Takaful family companies

State owned Reinsurance companies

Local life insurance companies

State owned life insurance companies