Name : Shouzab Abbas Soomro

ID No. : 2004-1-45-4541
Control No. : SP10-063
Major Field : Marketing

Company where internship was served

• EFU General Insurance Company

Duration: From February 01,2010 to March 16,2010

Report based on : Option 1

Due date of the report : April 1, 2010

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 Table of Contents

• Departments of Rotation
• Clifton Division 3
• Marine Under Writing Department 5
• Marine Claim Department 8

• Motor U/W Department 8

• Motor Claim Department 10
• Miscelleneous/ Credit & Surety- ship Department 10
• Property U/W Department 11
• Property Claim Department 11

• Conclusion 12

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Departments of Rotation:

1. Clifton Division

Supervisor’s Name : Mr. Nudrat Ali

Designation : Senior Executive Director
Duration : 01/02/10 to 24/02/10

Like head office all the departments exists in branches also . I was first with
the miscellaneous and engineering department ( in head office miscellaneous
and engineering department are different unlike Clifton division) . I was
explained by the engineering head what is engineering and miscellaneous
insurance. I saw the policies being made physically in the branch (as it’s a
branch task to make policies) . now the process of getting something insured
was for example I need to get my laptop insured from the Clifton division .
I will call the Clifton division and will tell them my issue they will asses the
value and will tell me the premium which I have to pay I will give the
cheque or will pay cash in the accounts department then I would be issued
with a policy . in which my premium, sum assured and all the details are
there. There is also a cover note in all the departments which proves that
your thing is insured but payment is yet not received this is provisional
document which expires in a short period i.e. 15 days . the main problem I
saw in the branch working was that for special rates the branch always had
to seek a permission from the head office which also was sometimes delayed
after that I was attached with the marine department . marine department in

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branch is very limited as only marine cargo is insured in the branch . marine
hull (the whole ship) is only and very rarely insured from the head office.

Then I was with the motor department which was the busiest department as
mostly people trust EFU as for getting their cars insured . Clifton division
had corporate customers such as RBS bank which had almost a thousand
cars insured from EFU. it had many more corporate customers . this was the
department that had to send hundreds of permissions every day as the
competition in the motor insurance is very much and competitors are always
trying to give lower rates to capture the business.

Lastly in the underwriting department at branch I was in the fire department

in which I was explained by the in charge that fire business in the branch is
also high as all the offices get them selves insured and since efu is
considered a good organization therefore its business is high . sum assured
is assessed according to the risk for e.g if the building is located near some
chemical factory where chances of fire are high the rate is high and the same
way when the chances of fire are low the rate is relaxed accordingly .

After that I was in claims department in branches we have one claims

department which processes every claim of that branch . I was explained by
the officers that after receiving a call for claim they enter the intimation and
appoint a surveyor which in some time submits a report recommending what
is supposed to be done. Then branch takes a decision of payment after that
the cheque is processed and finally it Is given to the customer. Lastly I was
sent to accounts department in which I saw all the inflows and out flows of
that branch and all the expenses it has occurred in the previous years .

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2. Marine Under Writing Department

Supervisor’s Name : Mr. Sohail Nazir

Designation : Senior Executive Vice President
Duration : 25/02/10 to 27/02/10

The underwriting department helps the vendor to protect him self

against any sort of financial loss in exchange of a fixed amount of
premium. it may include equity, credit, insurance or mortgage etc.
Underwriting in insurance refers to the risk of potential clients. They
decide how much coverage the client should receive and how much
should they pay. It basically to write and to acquire business that will
help insurance company in making growth

It Covers the loss or damage of ships, cargo, terminals, and any

transport or property by which cargo is transferred, acquired, or held
between the points of origin and final destination. Cargo insurance is a
sub-branch of marine insurance, though Marine also includes Onshore
and Offshore exposed property (container terminals, ports, oil
platforms, pipelines); Hull; Marine Casualty; and Marine Liability. A
marine policy typically covered only three-quarter of the insured's
liabilities towards third parties. The typical liabilities arise in respect
of collision with another ship, known as 'running down' (collision with
a fixed object is an 'allision'), and wreck removal (a wreck may serve
to block a harbor, for example).

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Actual Total Loss and Constructive Total Loss

These two terms are used to differentiate the degree of proof where a
vessel or cargo has been lost.

An Actual Total Loss refers to the situation where the position is clear
and a Constructive Total Loss refers to the situation where a loss is
inferred. In practice, a Constructive Total Loss might also be used to
describe a loss where the cost of repair is not economic; ie a 'write-
off'.

The different terms refer to the difficulties of proving a loss where

there might be no evidence of such a loss. In this respect, marine
insurance differs from non-marine insurance, where the insured is
required to prove his loss. Traditionally, in law, marine insurance was
seen as an insurance of 'the adventure', with insurers having a stake
and an interest in the vessel and/ or the cargo rather than, simply, an
interest in the financial consequences of the subject-matter's survive.

Average

The term 'Average' has two meanings:

(1) In marine insurance, in the case of a partial loss, or emergency

repairs to the vessel, average may be declared. This covers situations,
where, for example, a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo. General Average'
requires all parties concerned in the venture
(Hull/Cargo/Freight/Bunkers) to contribute to compensate the losses

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caused to those whose cargo has been lost or damaged. 'Particular
Average' is levied on a group of cargo owners and not all of the cargo
owners.

(2) In the situation where an insured has under-insured, i.e. insured an

item for less than it is worth, average will apply to reduce the amount
payable. There are different ways of calculating average, but generally
the same proportion of under-insurance will be applied to any payout
due.

An average adjuster is a marine claims specialist responsible for

adjusting and providing the general average statement. He is usually
appointed by the ship-owner or insurer.

Excess, Deductible, Retention, Co-Insurance, and Franchise

An Excess is the amount payable by the insured and is usually

expressed as the first amount falling due, up to a ceiling, in the event
of a loss. An excess may or may not be applied. It may be expressed
in either monetary or percentage terms. An excess is typically used to
discourage moral hazard and to remove small claims, which are
disproportionately expensive to handle. The equivalent term to
'excess' in marine insurance is 'deductible' or 'retention'.

A co-insurance, which is typically applied in non-proportional treaty

reinsurances an excess expressed as a proportion of a claim, e.g. 5%,
and applied to the entirety of a claim.

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3. Marine Claim Department

Supervisor’s Name : Mr. Badar Ameen

Designation : Executive Vice President
Duration : 01/03/10 to 02/03/10

The department can be termed as the sub department of marine insurance as

it only deals with the claims part of marine and its main aim is to monitor
the claims given at branches.

It also ensures that the claims are given on timely basis and the branches
should not keep any thing pending at their end. They make sure that the
claim is disbursed within their turn around time.

4. Motor U/W Department

Supervisor’s Name : Mr. Imran Ahmed

Designation : Assitant Executive Director
Duration : 03/03/10 to 04/03/10

Auto insurance protects you against financial loss if you have an accident. It
is a contract between you and the insurance company. You agree to pay the
premium and the insurance company agrees to pay your losses as defined in
your policy.

Coverage levels

Vehicle insurance can cover some or all of the following items:

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 • The insured party
• The insured vehicle
• Third parties (car and people)
• Third party, fire and theft
• In some jurisdictions coverage for injuries to persons riding in the
insured vehicle is available without regard to fault in the auto accident
(No Fault Auto Insurance)

Vehicle classification

Two of the most important factors that go into determining the underwriting
risk on motorized vehicles are performance capability and retail cost. The
most commonly available providers of auto insurance have underwriting
restrictions against vehicles that are either designed to be capable of higher
speeds and performance levels, or vehicles that retail above a certain rupee
amount. Vehicles that are commonly considered luxury automobiles usually
carry more expensive physical damage premiums because they are more
expensive to replace. Vehicles that can be classified as high performance
autos will carry higher premiums generally because there is greater
opportunity for risky driving behavior. Motorcycle insurance may carry
lower property damage premiums because the risk of damage to other
vehicles is minimal, yet higher liability or personal injury premiums because
motorcycle riders face different physical risks while on the road. Risk
classification on automobiles also takes into account statistical analysis of
reported theft, accidents, and mechanical malfunction on every given year,
make, and model of auto.

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Motor Claim Department

Supervisor’s Name : Mr. Tayab Nisar

Designation : Senior Vice President
Duration : 05/03/10 to 06/03/10

The department can be termed as the sub department of motor insurance as it

only deals with the claims part of motor and its main aim is to monitor the
claims given at branches.

It also ensures that the claims are given on timely basis and the branches
should not keep any thing pending at their end. They make sure that the
claim is disbursed within their turn around time.

5. Miscelleneous/ Credit & Surety- ship Department

Supervisor’s Name : Mr. Khurram Nasim

Designation : Assitant Executive Director
Duration : 08/03/10 to 09/03/10

Those things which do not fall in Motor, Marine & Property are classified under this
department, like clothes , laptop or other miscellaneous items like office equipments etc.
this segment has performed really well during the past years. I saw a very interesting case
of robbery in allied bank and I was asked to write a conclusion for that I studies the
whole file and gave my conclusion that all had resulted due to bankers negligence
therefore no loss should be paid.

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6. Property U/W Department

Supervisor’s Name : Mr. Khurram Ali Khan

Designation : Executive Director
Duration : 10/03/10 to 11/03/10

Today the assessment of value has become very difficult to do as Pakistan unfortunately
has been facing terrorist attacks and buildings/ property is being damaged the most.
EFU’s property department is very well organized and ensures proper and justified
assessment of the property under evaluation so that each and every thing is covered under
the insurance policy and the owner and the company both should not suffer.

7. Property Claim Department

Supervisor’s Name : Mr. T.L.Fernandaz

Designation : Deputy Executive Director
Duration : 12/03/10 to 15/03/10

Efu paid huge amounts of claims in the previous years . it paid a huge
amount of claims due to disturbance caused in Pakistan on the assassination
of Benazir Bhutto apart from that huge losses have reported in N.W.F.P
province as we all know it’s the province which is most effected in Pakistan
due to war on terror. I was given files to study and was asked to explain the
happenings .

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Conclusion

My Internship at efu was an experience which enhanced me learning. I was totally

unaware of the insurance world before I had joined efu as an intern. Efu is an
organization having huge businesses and many many loyal customers which never
overlook efu when it comes to their insurance choice . I enjoyed my internship as every
moment I passed their I learned something.

EFU General Insurance Limited was founded in 1932. EFU gave the emerging insurance
industry the leadership, the manpower and the drive needed to grow in a situation where
at one time, three-fourths of insurance was held by foreign companies.

Efu has been doing very well in the past and same is expected in future . It will be a
pleasure for me to join EFU and I m really looking forward to it .

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