Report on HR Department of EFU

Life Insurance Company

B.S. (CS) 2013

Submitted by:
Name

Enrolment

Seat number

Aiman Saboor

2013/Comp/BS (CS)/15384

1315449

Aruba Mujib

2013/Comp/BS (CS)/15387

1315452

Mizna Khalid

2013/Comp/BS (CS)/15406

1315471

Mehwish Masood

2013/Comp/BS (CS)/15405

1315470

24th December 2014

DEPARTMENT

OF

COMPUTER SCIENCE

AND

INFORMATION TECHNOLOGY

JINNAH UNIVERSITY FOR WOMEN

5-C NAZIMABAD, KARACHI 74600

Individual Declaration of Contribution

Individual Declaration of Contribution

Student Enrollment: ______________________________________
Student Name: __________________________________________
I have individually prepared the solution for the following sections in the TRW
Semester Report:
I have been involved in group collaboration, discussion, solution and review of
the following sections in the TRW Semester Report:
I feel that overall, my contribution to TRW Semester Report would equal ______
% of the total work submitted.
Other comments (optional):
Signature of Student: ______________________________________
Date: _______________________

ABSTRACT

ABSTRACT
This project has been undertaken in order to highlight the Human Resource
Practices of EFU. Its all about you its all about EFU, a company very highly
spoken of these days. A company paying more attention to its customers delights
rather then the customers satisfaction. EFU is a company starting from scratch and
has shown utmost performance in the last five years. EFU owes its success to its
employees believing that providing employees with job satisfaction motivates them to
work hard and provide better results.
Proper planning is EFUs strongest point; all the products that they have
launched so far are backed by wise strategies with proper market research and
massive advertisement campaigns. Decisions are taken at top level with some
participation from the lower levels showing that they do comprehend the worth of
Group decision-making. However goal setting is a procedure dedicated to only the top
management.

Table of Content

TABLE OF CONTENTS
EXECUTIVE SUMMARY.........................................................................................................
TABLE OF CONTENTS...........................................................................................................
LIST OF FIGURE.....................................................................................................................
LIST OF TABLES...................................................................................................................
ACKNOWLEDGEMENT......................................................................................................
Chapter 1....................................................................................................................................
INTRODUCTION......................................................................................................................
1.1

Background of Insurance Company in Pakistan.........................................................

1.2

Company Background.................................................................................................

1.2.1

History of EFU....................................................................................................

1.2.2

Mission Statement................................................................................................

1.2.3

Vision Statement..................................................................................................

1.2.4

Values...................................................................................................................

1.2.5

Culture..................................................................................................................

1.2.6

Social Responsibility............................................................................................

Chapter 2....................................................................................................................................
COMPANY ANALYSIS............................................................................................................
2.1

Operational Analysis...................................................................................................

2.1.1

Board Of Directors...............................................................................................

2.1.2

Excutives..............................................................................................................

2.2

Financial Analysis.......................................................................................................

2.2.1

Income Statements...............................................................................................

2.2.2

Ratio Margin And Graph......................................................................................

2.2.3

FUTURE FINANCIAL PLANS........................................................................

2.3

Market Analysis.........................................................................................................

2.3.1

MARKETING DEPARTMENT.........................................................................

Chapter 3..................................................................................................................................
ENVIORNMENTAL ANALYSES..........................................................................................
3.1

Insurance plans..........................................................................................................

3.1.1

Prosperity for Life..............................................................................................

3.1.2

Education Plan...................................................................................................

3.1.3

Marriage Plan.....................................................................................................

3.1.4

Nisa Savings Plan...............................................................................................

3

Table of Content

3.1.5

Savings Plan.......................................................................................................

3.1.6

Executive Pension Plan......................................................................................

3.1.7

Khushhali Plan...................................................................................................

3.1.8

Security Plan......................................................................................................

3.2

Average Growth Rate................................................................................................

3.3

Competitor Analysis..................................................................................................

3.3.1

Competitor..........................................................................................................

3.3.2

Market Share......................................................................................................

3.3.3

Their Goals.........................................................................................................

3.4

Their Strategy............................................................................................................

Chapter 4..................................................................................................................................
CORPORATE ORGANOGRAM...........................................................................................
Chapter 5..................................................................................................................................
CORPORATE SOCIAL RESPONSIBILITY..........................................................................
5.1

Social Services...........................................................................................................

5.2

Training and Education..............................................................................................

5.2.1

E-Learning..........................................................................................................

5.2.2

Workshops on Risk Management.......................................................................

5.2.3

Workshops on Team Building Leadership.........................................................

5.3

Medical Services.......................................................................................................

Chapter 6..................................................................................................................................
SWOT ANALYSIS..................................................................................................................
6.1

Strengths....................................................................................................................

6.2

Opportunities.............................................................................................................

6.3

Threats.......................................................................................................................

6.4

Weakness...................................................................................................................

Chapter 7..................................................................................................................................
HUMAN RESOURCE DEPARTMENT..................................................................................
7.1

Structure of Human Resource Department................................................................

7.1.1

Human Resource and Remuneration Committee...............................................

7.2

Responsibilities of HR Department...........................................................................

7.3

SUPPORT OF HR DEPARTMENT TO....................................................................

7.4

TOTAL NO OF EMPLOYEES:................................................................................

7.5

TRAINING AND DEVELOPMENT:.......................................................................

7.6

OUTSOURCING AND DOWNSIZING:.................................................................

7.7

KNOWLEGDE WORKERS:....................................................................................

7.8

HANDLING WORK FORCE DIVERSITY:............................................................

4

Table of Content

7.9

EMPLOYEES RELATIONSHIP:.............................................................................

7.10

RECORD KEEPING OF EMPLOYESS DATA:.................................................

7.11

HR AND CUSTOMER SERVICES:.....................................................................

Chapter 8..................................................................................................................................
PAY, INCENTIVES AND PENALTY.....................................................................................
8.1

Sales Manager Benefits.............................................................................................

8.2

Car Entitlement..........................................................................................................

8.3

MANP0WER AND PRODUCTIVITY RULES.......................................................

8.4

SALES CONSULTANT CAREER PATH.................................................................

8.4.1

Sales Consultant.................................................................................................

8.4.2

Senior Sales Consultant......................................................................................

8.4.3

Executive Sales Consultant................................................................................

8.4.4

Senior Executive Sales Consultant.....................................................................

8.4.5

Business Development Manager........................................................................

8.4.6

Executive Business Development Manager.......................................................

8.4.7

Senior Business Manager...................................................................................

8.4.8

Executive Senior Business Manager..................................................................

8.4.9

Chief Business Manager....................................................................................

8.5

High Production Bonus.............................................................................................

8.5.1

Eligibility............................................................................................................

8.5.2

Persistency Requirement....................................................................................

8.6

Subsequent Years Persistency Bonus........................................................................

8.6.1

Eligibility............................................................................................................

8.6.2

Bonus..................................................................................................................

8.6.3

Other Rules.........................................................................................................

8.7

Pension for Consultants.............................................................................................

Chapter 9..................................................................................................................................
RECRUITMENT, SELECTION AND APPOINTMENT.......................................................
9.1

Recruitment...............................................................................................................

9.1.1
9.2

Sources of Recruitment......................................................................................

Strategies for Recruitment.........................................................................................

9.3 Selection In EFU, selection Criteria is based on numerous factors such as

education, health, background and previous experience......................................................
9.3.1
9.4

Appointment Process.................................................................................................

9.4.1
9.5

Selection process................................................................................................
Types of appointments.......................................................................................

The screening process................................................................................................

5

Table of Content

9.6

TRAINING & DEVELOPMENT.............................................................................

9.6.1

On-the-job Training............................................................................................

9.6.2

External sources.................................................................................................

Chapter 10................................................................................................................................
INTERNSHIP PROGRAM AT EFU........................................................................................
10.1

Intern Eligibility.....................................................................................................

10.2

Compensation and Length of Experience..............................................................

10.3

Salaries on Internships...........................................................................................

10.3.1

Paid Internships..................................................................................................

10.3.2

Unpaid Internships.............................................................................................

10.4
10.4.1

Benefits & Advantages of Internships...................................................................

Gain Work Experience and Transferable Skills.................................................

Students all have their educational experience in common. What stands out to
employers is those students who ALSO have work experiences by the time they
graduate. This automatically makes them more marketable; as they may require
less training and are assumed to be able to handle more responsibilities........................
10.4.2

Possibly Earn Course Credit..............................................................................

10.4.3

Be Able To Experience a Prospective Career Path.............................................

10.4.4 Gain Practical Experience, By Applying Methods and Theories Learned

In Classes.........................................................................................................................
10.4.5

Develop New Skills and Refine Others.............................................................

10.4.6

Gain Confidence in Your Abilities.....................................................................

Chapter 11................................................................................................................................
JOB AND RETIREMENT.......................................................................................................
11.1

Security with EFU Life..........................................................................................

11.1.1

You Control Your Security.................................................................................

11.1.2

Retirement Security............................................................................................

11.2
11.2.1
11.3

Opportunity with EFU - Life.................................................................................

Opportunity for Management.............................................................................
Job Satisfaction with EFU Life...........................................................................

CONCLUSION........................................................................................................................
APPENDIX A..................................................................................................................
12.1

QUESTIONNAIRE...............................................................................................

REFERENCES.........................................................................................................................
PERCENTAGE OF INDIVIDUAL WORKING.....................................................................

List of Figure

LIST OF FIGURE
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..1.1 EFU LIFE INSURANCE
COMPANY......................................................................................................... 2
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..1.1 INCOME STATEMENTS".........8
FIGUREERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..2 BALANCE SHEET 2014"...........9
FIGUREERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..3 CASH FLOW..........................9
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..2: NET PREMIUM & SURPLUS
BEFORE TAX..................................................................................................... 12
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..3: PROFIT & LOSS...................12
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..1: AVERAGE GROWTH RATE......21
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..1: CORPORATE ORGANOGRAM....24
FIGURE ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT..1: 2ND GLOBAL HR EXCELLENCE
AWARDS-2011................................................................................................. 53

List of Table

LIST OF TABLES
TABLE 1: SALES MANAGER BENEFITS......................................................................................
TABLE 2: CAR ENTITLEMENT..................................................................................................
TABLE 3: PRODUCTIVITY PENALTY...........................................................................................
TABLE 4: SALES CONSULTANT................................................................................................
TABLE 5: SENIOR SALES CONSULTANT......................................................................................
TABLE 6: EXECUTIVE SALES CONSULTANT..................................................................................
TABLE 7: SENIOR EXECUTIVE SALES CONSULTANT.......................................................................
TABLE 8: BUSINESS DEVELOPMENT MANAGER............................................................................
TABLE 9: EXECUTIVE BUSINESS DEVELOPMENT MANAGER............................................................
TABLE 10: SENIOR BUSINESS MANAGER...................................................................................
TABLE 11: EXECUTIVE SENIOR BUSINESS MANAGER....................................................................
TABLE 12: CHIEF BUSINESS MANAGER.....................................................................................

ACKNOWLEDGEMENT

ACKNOWLEDGEMENT
All Praise to Allah. First and foremost we thank Allah, the Generous, for
having finally made this effort a reality. We praise Him because if it were not for His
Graciousness, it would never materialize.
We are extremely grateful to my course instructor, MISS NAZISH NOUMAN.
Who spent a lot of valuable time with us and gave all the related information and
expertise very generously about related courses.
We are especially thanks to Sir. Ather, Ms. Mumeera and Sir. Rashid
Hussain .At last we, express our deepest gratitude to all those who contributed
directly or indirectly to bring this report to this final format, because We would never
have been able to achieve this by myself.

Chapter 1. Introduction

Chapter 1
INTRODUCTION
1.1 Background of Insurance Company in Pakistan
The

insurance

industry

in

Pakistan,

which

should

be

d e s c r i b e d a s a b u s i n e s s r a t h e r t h a n a n industry has shown some

rapid progress in recent years. When Pakistan was established in1947,
there were 77 insurance companies in all. Today there are 52. In 1947, 70
of those 77companies were foreign companies and/or their branches.
Today there are 10. The seven local companies have 47 years later become
42, and might have been more had 32 of them not been nationalized on
March 18, 1972, when their life insurance business was brought into the
public

sector,

and

consolidated

under

the

aegis

of

the

State

Life

Insurance Corporation of Pakistan.

Today, Pakistan has 52 companies conducting general business. They
offer primarily

Fire,

Marine, Motor and Accident cover.

composition of general insurance business is

The

Understandable,

considering the lack of sophistication of our domestic environment. In

1993, Fire (including-Profits) accounted for 32.2 per cent of the Gross
Direct

Premiums,

Motor

for 3 3 . 1 p e r c e n t , M a r i n e ( i n c l u d i n g H u l l ) P r e m i u m s f o r
2 3 p e r c e n t a n d A c c i d e n t ( i n c l u d i n g Engineering) for 11.7 percent. The
concentration of business amongst the insurers themselves presents a
curiously disjointed picture. The 10 foreign companies have only a 10.5 per cent
share of the Gross Direct Premiums, and of the 41 Pakistani companies
operating in the market, 35 of them share 18 per cent of the business, while
only 6 companies command and control 71.5 per cent of the general business. What
these companies share in common, though, is an obligation (an onerous
one according to some) to reinsure a mandatory 20 per cant (it used to be
30%) of their insurance business with Pakistan Insurance Corporation
(PIC), which was established in 1952 to provide reinsurance facilities
within Pakistan and overseas, and to develop the insurance by offering
1

Chapter 1. Introduction

technical and expert advice. PIC has grown substantially since 1953, with
its Gross Premium Income in the last five years being above the 1 billion mark.
Its overall profitability has wavered, falling Forman all time high of Rs. 119 million in
1991 to below Rs. 50 million in 1991.Apart from this obligation to reinsure with PIC,
the general insurance companies are left largely to themselves and expected to be selfregulatory. Their Fire, Motor, Workmen's Compensation and Marine classes of
business are governed by a Tariff which is determined by themselves
through their Insurance Association. Their maximum statutorily approved
agency commission rates of 15 per cent for Marine business and 20 per cent for
Non-Marine business have become more gentlemanly statements of intent than
rigorously enforced standards.

1.2 Company Background

Figure Error! No text of specified style in

document..1.1 EFU Life Insurance Company

1.2.1 History of EFU

In the early 30s, under the inspiration of the Quaid-e-Azam Mohammad Ali
Jinnah, Insurance companies along with shipping and airline industries made their
debut.
In 1932 in Calcutta, Mr. Ghulam Mohammed, who later became Governor
General of Pakistan, established an insurance company with H.H. Aga Khan and H.H.
Nawab of Bhopal.

The company was named Eastern Federal Union Insurance

Company Ltd. It was registered in Calcutta and operated in undivided India and
Burma. Its business was both General and Life Insurance.

Chapter 1. Introduction

At the time of independence of Pakistan in 1947, EFU (as the company was
called), found a new country and rapidly established itself as a progressive and
innovative insurance company. It provided the emerging insurance industry the
leadership, the manpower and the drive needed to grow in a situation where at that
time three-fourths of insurance business was held by foreign companies.
By 1961, EFU had become the flag bearer of Pakistans insurance industry on
the world stage, and the largest life company in Afro-Asian countries (excluding
Japan) under the leadership of our late chairman Mr. Roshen Ali Bhimjee. It remained
so until 1972 when Life Insurance industry in Pakistan was nationalized. From that
time onwards, EFU operated solely as a general insurance company and was
subsequently renamed EFU General Insurance Company Limited.

1.2.2 Mission Statement

We shall together build EFU Life into a dynamic and financially sound
institution by:

Working together as a team

Continually improving our client service
Creating an empowered and self-fulfilling culture
Developing innovative products
Adopting leading technology

1.2.3 Vision Statement

Our Vision is to make EFU Life one of the most respected and successful
financial services organization in the world. Our strategy to achieve our vision is:
build our core capabilities, serve our clients beyond their expectations, adhere to our
core values and be a good corporate citizen.

1.2.4 Values
Character:
Our Business principles for achieving exceptional success are a belief that our
corporate conduct should base on uncompromising integrity, ethics and honesty.
3

Chapter 1. Introduction

Pride:
We believe that people want to excel and that extraordinary result can be
achieved, if given the right support and work climate.
Service:
Our clients are the reasons for being in business. We shall deliver to them the
highest quality of flawless service to win and keep their loyalty.

Commitment:
we nurture and develop our people to be good human beings, work together as
a team to achieve our organizational objectives and obligations, while at the same
time fulfill their aspirations.

1.2.5 Culture
Embed a high performance culture that points the organization towards the
Common good and creates an intense passion for achievement at all levels.

1.2.6 Social Responsibility

Our social responsibility is to contribute to the development of the civilized
and prosperous and respected Pakistan in which all the people live in harmony. To
fulfill our obligations, we shall act responsibly to make a difference by contributing to
these activities that have the greatest visible impact on the betterment of the society
with emphasis on education and health.

Chapter 1. Introduction

Chapter2.Company Analysis

Chapter 2
COMPANY ANALYSIS
2.1 Financial Analysis
2.1.1 Income Statements

Figure Error! No text of specified style in document. .2.1 Income Statements"[1]

FigureError! No text of specified style in document..3 Balance Sheet 2014"[1]

Chapter2.Company Analysis

FigureError! No text of specified style in document..4 Cash Flow[1]

2.1.2 Ratio Margin And Graph

Chapter2.Company Analysis

Figure2.4 Equity and Investments [2]

Chapter2.Company Analysis

Figure 2.5 Assets and Liabilities [2]

Figure Error! No text of specified style in document..5: Net Premium & Surplus before Tax [2]

Chapter2.Company Analysis

Figure Error! No text of specified style in document..6: Profit & Loss [2]

2.1.3 FUTURE FINANCIAL PLANS

The Company expects the vibrancy in the life insurance sector to continue in
2014. Distribution channels are expected to be the key focus of all life companies
with the aim of tapping into alternative channels and at the same time enhancing the
productivity of the existing channels. Further investment will be made on building a
technology base for back-end operations and for front end sales and services to
clients. Depending on the status of the Takaful Rules 2013, the Company expects
conventional insurers to start their taka full offering during 2014. [2]

2.2 Market Analysis

The goal of a market analysis is to determine the attractiveness of a market and to
understand its evolving opportunities and threats as they relate to the strengths
and weaknesses of the firm.[3]

2.2.1 MARKETING DEPARTMENT

Following are the aspects by which market is analyzed

Market size (current and future)

10

Chapter2.Company Analysis

Market growth rate

Market profitability

Industry cost structure

Distribution channels

Market trends

Key success factors

2.2.1.1 Market Size

The size of the market can be evaluated based on present sales and on
potential sales if the use of the product were expanded. The following are
some information sources for determining market size:

government data

trade associations

financial data from major players

customer survey [3]

2.2.1.2 Market Growth Rate

A simple means of forecasting the market growth rate is to extrapolate
historical datainto the future. While this method may provide a first-order estimate, it
does not predict important turning points. A better method is to study growth drivers such as
demographic information and sales growth in complementary products. Such drivers
serve as leading indicators that are more accurate than simply extrapolating historical data. Important
inflection points in the market growth rate sometimes can be predicted by constructing a product
diffusion curve. The shape of the curve can be estimated by studying the
11

Chapter2.Company Analysis

characteristics of the adoption rate of a similar product in the past. Ultimately, the
maturity and decline stages of the product life cycle will be reached. Some leading
indicators of the decline phase include price pressure caused by competition, a
decrease in brand loyalty, the emergence of substitute products, market saturation, and
the lack of growth drivers. [3]

2.2.1.3 Market Profitability

While different firms in a market will have different levels of profitability, the
average profit potential for a market can be used as a guideline for knowing how
difficult it is tomake money in the market. Michael Porter devised a useful framework
for evaluatingthe attractiveness of an industry or market. This framework, known as
Porter's fiveforces, identifies five factors that influence the market profitability: [3]

Buyer power

Supplier power

Barriers to entry

Threat of substitute products

Rivalry among firms in the industry

2.2.1.4 Industry Cost Structure

The cost structure is important for identifying key factors for success. To this end,
Porter's value chain model is useful for determining where value is added and for
isolating the costs. The cost structure also is helpful for formulating strategies to develop
a competitive advantage. For example, in some environments the experience curve effect can be
used to develop a cost advantage over competitors. [3]

2.2.1.5 Distribution Channels

The following aspects of the distribution system are useful in a
market analysis: [3]

12

Chapter2.Company Analysis

Existing distribution channels - can be described by how direct they are to the
customer.

Trends and emerging channels - new channels can offer the opportunity to
develop a competitive advantage.

Channel power structure - for example, in the case of a product having

little brand equity, retailers have negotiating power over manufacturers and ca
n capture more margins. [3]

2.2.1.6 Market Trends

Changes in the market are important because they often are the source of
new opportunities and threats. The relevant trends are industry-dependent, but some
examples include changes in price sensitivity, demand for variety, and level of
emphasis on service and support. Regional trends also may be relevant. [3]

2.2.1.7 Key Success Factors

The key success factors are those elements that are necessary in order
for the firm to achieve its marketing objectives. A few examples of such factors
include:

Access to essential unique resources

Ability to achieve economies of scale

Access to distribution channels

Technological progress it is important to consider that key success

factors may change over time, especially as the product progresses through its life
cycle.[3]

13

Chapte3.Environmental Analyses

Chapter 3
ENVIORNMENTAL ANALYSES
3.1 Insurance plans
3.1.1 Prosperity for Life
EFU Life brings you Prosperity for Life a flexible and high value savings
and protection product that ensures that your dreams become a reality at all stages of
life throughout your life!
Main features of the plan:

Choose different levels of life insurance protection for the same amount of
premium

Change your level of life cover as your circumstances change

Get loyalty rewards through Guaranteed Loyalty Bonus

Accelerate the build-up of your fund through Fund Acceleration Payments

Benefit from the plans high investment allocation

Participate in the returns of the EFU Growth Funds

Hedge against inflation through the Inflation Protection Benefit

Cover yourself through whole-of-life insurance protection

Access your saving when you need it

Add supplementary benefits to tailor the plan to your needs [4]

14

Chapte3.Environmental Analyses

3.1.2 Education Plan

With EFUs Education Plan, you can make sure that unlike other parents your
dreams for your children will become a reality.
Guarantee their education even if you should die in the unfortunate event of
your death prior to the maturity of the Plan, you would want to make sure that your
education plans for your children will still be fulfilled. [5]

3.1.3 Marriage Plan

Helps you save systematically so that you can give your child the muchneeded financial security for the years to come. The Plan provides a complete
financial planning package for you to plan for expenses associated with your
childrens marriage. Planning in advance through the Marriage Plan for your childs
or even grandchilds wedding celebrations now allows you to spread the cost over
time, giving your savings a chance of significant growth.
The Plan provides high value savings, coupled with a guaranteed level of life
assurance protection and flexibility, with various options to customize the benefits
according to your needs.
Simply put, EFU Marriage Plan gives you the freedom to enjoy every
moment with your children today, without worrying about their future tomorrow. [6]

3.1.4 Nisa Savings Plan

The EFU Nisa Savings Plan helps you accumulate a fund, which can be used
to finance your future financial needs. The Plan provides high value savings, coupled
with a guaranteed level of life assurance protection and flexibility, with various
options to customize the benefits according to your needs. [7]

3.1.5 Savings Plan

The Savings Plan is ideal for individuals and groups where the employees
would prefer to pay their contribution through withdrawals from their Provident Fund
balances. The plan makes use of the provisions of the Income Tax Rules 2002 under
15

Chapte3.Environmental Analyses

which members of Recognized Provident Funds can withdraw funds from their
provident fund balances and pay towards the contribution of life insurance plans. [8]

3.1.6 Executive Pension Plan

EFU offers the Executive Pension Plan to suit your circumstances to help you
achieve financial independence in retirement. [9]

3.1.6.1 Expert Investment Management

Your contributions will buy units in the EFU Growth Funds. The Fund is
managed by experts who will adjust the mix of the underlying investments in the light
of economic conditions and investment opportunities. [9]
3.1.6.2 A Range of Benefit Options
You will be able to choose how to take your benefits from a whole range of
options. During the plan term, you may select to withdraw your full or partial fund
value. At maturity you have the option to withdraw the fund value as a lump sum
amount, or you may select an income to be paid for your lifetime with payments
guaranteed for 10 years as shown in the illustration above. Alternatively you can
select an income which will continue to be paid to your spouse for the rest of his/ her
life in case you die first. [9]
3.1.6.3 Access to Savings
Nobody can predict the future. If your circumstances change and you have a
need for cash before the end of the savings period you can encash the policy for the
full bid value of units without any early surrender penalties after the second annual
premium has been paid. [9]
3.1.6.4 Early/Late Retirement
The Executive Pension Plan is designed to mature between your ages of 60 to
70 years. [9]
16

Chapte3.Environmental Analyses

3.1.6.5 Portability
EFU Executive Pension Plan is fully portable and stays with you wherever you
go. Thus you can continue paying contributions under one Plan up to your retirement.
[9]

3.1.6.6 Additional Benefits

The basic purpose of the Plan is to build up substantial capital to provide a
pension. However, the Executive Pension Plan offers a range of additional benefits to
help you tailor the plan to suit your particular needs. [9]

3.1.7 Khushhali Plan

EFU Life brings you Khushhali a flexible and high value savings and
protection plan that provides you the satisfaction of having an accumulated fund at
your disposal. With this economical savings plan you get more by spending less. [10]

3.1.8 Security Plan

For example you may need:

To provide a replacement income for your family on your death,

To ensure that your early death does not jeopardize your future plans for your
children in terms of their education, wedding etc.

To protect the continuity of your business by ensuring that funds are available
for your beneficiaries. EFU Security Plan is a term assurance contract which
allows you to provide protection against the financial consequences of death at
a very low cost. [11]

17

Chapte3.Environmental Analyses

3.2 Average Growth Rate

Figure Error! No text of specified style in document..7: Average Growth Rate [12]

3.3 Competitor Analysis

3.3.1 Competitor
The insurance industry is becoming highly competitive. The difference
between one insurance company and another is usually not that great. As a result,
insurance has become more like a commodity - an area in which the insurance
company with the low cost structure, greater efficiency and better customer service
will beat out competitors. Insurance companies also use higher investment returns and
a variety of insurance investment products to try to lure in customers. In the long run,
we're likely to see more consolidation in the insurance industry. Larger companies
prefer to take over or merge with other companies rather than spend the money to
market and advertise to people.

3.3.2 Market Share

Based on the available published financial statements the Company has a
market share of 41.5% in the private life insurance sector companies based on the
gross premium income. The statistics are compiled by the Insurance Association o
Pakistan and published for the industry. [13]
18

Chapte3.Environmental Analyses

3.3.3 Their Goals

Our Keys to Success and critical factors for the next year are, in order of
importance:

Identify "Target Markets."

Institute our Property inspection program.

Begin our "Insurance Partners" program.

Develop a profitable property program.

Provide small businesses with an affordable basic business package. [14]

3.4 Their Strategy

In order to implement our strategic goals, we will focus on developing the
following tools.
1. Knowledgeable, friendly staff that can empathize with our consumers
needs and circumstances, especially in handling a loss.
2. Policies that meet or exceed the expectations of our clients, and that are
affordable, available, and understandable.
3. Policies and endorsements delivered on time with minimal errors.
4. A commitment to an annual insurance review for all of our clients. A
phone call is more than any direct mass marketer offers. We believe
personal contact and service is the cornerstone of our success. [15]

19

Chapte3.Environmental Analyses

20

Chapter4.Corporate Organogram

Chapter 4
CORPORATE ORGANOGRAM
Figure Error! No text of specified style in
document..8: Corporate Organogram

4.1

Operational Analysis
4.1.1 Board Of Directors
21

Chapter4.Corporate Organogram

22

Chapter4.Corporate Organogram

4.1.2

Ex
cu
tiv
es

23

Chapter4.Corporate Organogram

4.2 Committees
4.2.1 Audit Committee
Rafique R. Bhimjee
Muneer R. Bhimjee
Hasanali Abdullah

4.2.2 Investment Committee

Saifuddin N. Zoomkawala
Taher G. Sachak
Rafique R. Bhimjee
Hasanali Abdullah
Omer Morshed
S. Shahid Abbas
Mohammed Ali Ahmed
S. Muhammad Owais

4.2.3 Underwriting Committee

Taher G. Sachak
S. M. Baqar Naqvi
Dr. Tajuddin A Manji
Zain Ibrahim
Dr. Naila Salman
Muhammad Azeem Mirza

4.2.4 Compliance Committee

S. Shahid Abbas
Zain Ibrahim
Mohammed Ali Ahmed
Arshad Iqbal
Abbas Hussain

24

Chapter4.Corporate Organogram

4.2.5 IT Steering Committee

S. M. Baqar Naqvi
Zain Ibrahim
S. Shahid Abbas
Adeel Ishaque
Ashfaque Ahmed

4.2.6 Claim Settlement Committee

Taher G. Sachak
S. M. Baqar Naqvi
Zain Ibrahim
Arshad Iqbal
Dr. Ali Murtaza
Ghayas Hassan

4.2.7 Reinsurance Committee

Taher G. Sachak
Omer Morshed
Mohammed Ali Ahmed
S. Abdul Moiz
Ghayas Hassan

4.2.8 ERM Committee

Taher G. Sachak
Omer Morshed
Mohammed Ali Ahmed
S. Shahid Abbas
Zain Ibrahim
S. Abdul Moiz
Ghayas Hasan
Syed Ali Hassan Murtaza

25

Chapter4.Corporate Organogram

4.2.9 HR Remuneration Committee

Rafique R. Bhimjee
Saifuddin N. Zoom
Taher G. Sachak

4.3 Company Information

4.3.1 Chairman
Rafique R. Bhimjee

4.3.2 Managing Director & Chief Executive

Taher G. Sachak

4.3.3 Directors
Saifuddin N. Zoomkawala
Jahangir Siddiqui
Muneer R. Bhimjee
Hasanali Abdullah
Heinz Walter Dollberg

4.3.4 Corporate Secretary

S. Shahid Abbas

4.3.5 Appointed Actuary

Omer Morshed
F.C.A., F.P.S.A., F.I.A.
26

Chapter4.Corporate Organogram

4.3.6 Legal Advisor

Mohammad Ali Sayeed, M.A.B.L.

4.3.7 Auditors
Ernst & Young Ford Rhodes Sidat Hyder
Chartered Accountants, Karachi.

4.3.8 Registrar

Technology Trade (Pvt.) Ltd.

Dagia House 241-C
Block-2, P.E.C.H.S.
Off Shahrah-e-Quaideen
Karachi.
Ph: (92-21) 34391316-17
Fax: (92-21) 34391318

4.3.9 Rating

Rating Agency: JCR-VIS

Insurer Financial Strength Rating AA
Outlook: Stable

4.3.10Website:

www.efulife.com
Registered Office
Al-Malik Centre
70 W, F-7/G-7
Jinnah Avenue, (Blue Area)
Islamabad.
Main Office
37-K, Block 6,

27

Chapter5.Corporate Social Responsibility

Chapter 5
CORPORATE SOCIAL RESPONSIBILITY
5.1 Social Services
EFUs social responsibility is to contribute to the development of the civilized
and prosperous and respected Pakistan in which all the people live in harmony. To
fulfill our obligations, we shall act responsibly to make a difference by contributing to
these activities that have the greatest visible impact on the betterment of the society
with emphasis on education and health.
EFU Life Assurance Ltd has received the 6th Corporate Social Responsibility
National Excellence Award 2011 organised by Help International Welfare Trust and
CSR Association of Pakistan. Yaseen Malik, Chairman, Hilton Pharmaceuticals along
with Nisar Khoro, speaker of the Sindh assembly presented this award to Ms. Evelyn
Abrogena, Chief Manager, Human Resources, EFU Life Assurance.

5.2 Training and Education

EFU is committed to a policy of equal employment opportunities and
welcomes people irrespective of their race or gender. All appointments are made on
the basis of merit and candidates are placed in jobs for which they are best suited.

5.2.1 E-Learning
EFU Life Assurance Ltd. Offers a comprehensive training program through
the use of technology. E-Learning is one of EFU Life Assurance Ltd. Initiatives to
promote continuous growth and development of its employees as well as equip the
future leaders of the country. No matter what your work needs or personal goals are,
youll experience an innovative, convenient online training environment that will
challenge, entertain and prepare all of us for continued success. EFU Life Assurance
Ltd. E-Learning will pave the way for future growth and opportunities.

28

Chapter5.Corporate Social Responsibility

5.2.2 Workshops on Risk Management

To identify the physical hazards which can lead the organization to substantial
losses and suggesting the corrective measures to avoid such losses in future is called
Risk Management.
Basic concepts which should be well understood before a risk inspection of
any industry were thoroughly explained at the workshop. During the discussion some
good and bad practices, normally found in the industries, were also explained in
detail. During workshop some tests were also conducted. Test result revealed that
participants had understood the workshop contents very well. The participants
expressed that more of such training sessions should be arranged because attend in
these programs adds to their knowledge.

5.2.3 Workshops on Team Building Leadership

Team Building & Leadership skills are one of the crucial traits that need to be
developed among the people. Keeping in view the importance of the topic, HR
Department organized a workshop on Team Building & Leadership for three groups
of executives and officers of EFU General at HR Training Centre, which was attended
by 42 participants. This training program focused on how to work in teams & how the
qualities of leadership can be developed? Participants learnt how to create vision,
build teams, delegate tasks and develop team members. Commonly committed
mistakes by the team members identified and analyzed through case studies.

5.3 Medical Services

Fire extinguishers have been installed at various points at working premises.
Further, the Company has a dedicated medical facility which includes clinic and a full
time Chief Medical Officer at Karachi to take care of employees and their families'
health matters and also advise on preventive health care.

29

Chapter6.SWOT Analysis

Chapter 6
SWOT ANALYSIS
6.1 Strengths

We are a Company with broad customer base.

We work as a family, with employee loyalty and commitment to the

Company and generations of families are associated with us.

We own two prominent buildings in Karachi and Lahore.
We have team of Technical Officers and our quality of Technical as well
as Marketing Team is considered as the best in the country.

6.2 Opportunities

Focus on insurance awareness through continuous investments in

communication channels and market education

Develop micro insurance solutions for the socio economic group at the

bottom of the pyramid

With increasing mobile penetration amongst the masses, utilize such

platforms for customer interaction, awareness, marketing and sales.

As soon as Takaful Business Window operations are allowed by SECP,

we will commence Takaful business.

Expected growth in Economic Sector of Pakistan due to recent change
in economic policies, privatization plans and implementation of GSP
Plus in 2014 and beyond.

6.3 Threats

Emergence of Captive Insurance Companies by Group and / or

Financial Institutions.
Continued law and order situation increases cost of operations and

reduced growth in certain geographical areas.

Country's law and order situation restricts new reinsurers to look at
Pakistan market.
30

Chapter6.SWOT Analysis

Loss of technical hands to Middle Eastern markets due to economic

revival there.

6.4 Weakness
No Weakness is present in EFU and its HRM is very Strong.

31

Chapter7.HRM Department

Chapter 7
HUMAN RESOURCE DEPARTMENT
7.1

Structure of Human Resource Department

7.1.1

Human Resource and Remuneration Committee

The committee is responsible for recommending to the board human

resource management policies of the company as well as the selection, evaluation and
compensation of key officers of the company. The Boards Human Resource and
Remuneration Committee comprises of the following members:
1. Mr. Saifuddin N. Zoomkawala
2. Mr. Rafique R. Bhimjee
3. Mr. Hasanali Abdullah

7.2

Responsibilities of HR Department
The HR depart of EFU is responsible for strategic planning (job

analysis, technical conference, using of different methods questionnaire or diary),

recruitment, selection, internal and external training, also for employee and career
development.
Benefits and Services (insurance programs, Transportation facility, sick leave pay
plans, loan funds, LFA salary, bonus programs along with special bonuses for
achieving high targets).

7.3

SUPPORT OF HR DEPARTMENT
Most profitable corporations point out their successes to appropriate

management of their human resources (HR), in the vein of this HR department of

EFU supports a lot to Managing employees involves balancing between their goals
and aspirations with those of the company. A company's goals and objectives are
endurance, making profits, gaining market share or gaining global gratitude.

32

Chapter7.HRM Department

7.4

TOTAL NO OF EMPLOYEES:
EFU life insurance has rapidly growing manpower, it has currently

5000 manpower still increasing in marketing depatment.In 2004- 2005 the sales
designation are 4, in 2013 sales designation becomes 9. So its a big achievement of
EFU.

7.5

TRAINING AND DEVELOPMENT:

EFU offers Training & Development with orientation , on the job

training, off the job training Manage Employee Training to enhance Communication
skills, Computer and technical skills, Management and leadership, Team building
skills training. Employee Development programs be fond of Exploration and Trial,
Establishment and Advancement, Mid-Career: Growth, Maintenance, Decline, and
Disengagement.
EFU also gives opportunities for Career Development by offering programs
like Equal Employment Opportunities, Qualification Enhancement Program,
Performance Management System.
Learning is part of the company culture. Each employee, at all levels, is
conscious of the need to upgrade continuously his/her knowledge and skills. Guiding
and coaching is provided to each employee via on the job training and mentoring to
make each one progress in his/her position. Formal training programs organized are
purpose oriented and designed to improve relevant skills and competencies. EFU
highlights on quality trainings through different in-house, local and foreign learning
institutions on technical and soft skill trainings which are based on Training Needs
Assessment of the employees.
For this intention EFU provide guidance to employees to get world renowned
insurance qualification - ACII from Chartered Institute of Insurance (CII) UK. We
have 22 highly motivated and experienced chartered insurers. We have a team of 17
professional engineers, 11 professional accountants and certified hr professional.

7.6

OUTSOURCING AND DOWNSIZING:

EFU Group is one of the few Pakistani organizations run totally by

professional management. Another unique feature of EFU is a voluntary review

mechanism by professionals of international repute. EFU has taken Mr. Wolfram W.
33

Chapter7.HRM Department

Karnowski, who retired at a very senior level from Munich Re, on its Board of
Directors. It has appointed Mr. Michael J de H. Bell, a very eminent UK based
actuary (retired from Wyatt Watsons and chairman of a UK based life company). EFU
has the services of Mr. S.C. (Hamid) Subjally, who retired from a very senior position
from Assicurazioni Generali, Dubai, UAE. The independent reviews by these
professionals enable the group companies to keep abreast of international changes in
the industry as well as ensure that management adopts the best international practices.
Another pillar of EFU's strength is a very close and long term (over 50 years)
relationship with its main reinsurer, Munich Re, the largest reinsurance company in
the world and the strong support of Allianz Aktiengesells chaft (Allianz AG), a global
leader in the insurance industry.

7.7

KNOWLEGDE WORKERS:
Employees work with utmost dedication when they believe their

organization truly cares about their well-being. Group Term Life addresses an
employees need of life insurance from the factory floor to the board room.

7.8

HANDLING WORK FORCE DIVERSITY:

As business markets grow, markets now include people from various

culture and background. An organization has to target people from every corner of the
country belonging to different races, culture, and religion. It cannot achieve this by
taking advantage of the diverse workforce available. In order to do this it has to study
what impact diversity has on the organization so that the organization can develop HR
strategy and policies for dealing with them. It also requires studying the impact at
individual level about the contact of diverse workforce so that it if there any need to
make structural changes.

7.9

EMPLOYEES RELATIONSHIP:
EFU has started appreciation programs that leads to build good &

strong relationship best performing employees are appreciated in form of dinner/trip,

This thing leads to build good relationship as well as keeps their loyalty high. EFU

34

Chapter7.HRM Department

also works for employee welfare. It dealings motivate the employee to work hard and
keep loyal & retain with the organization.

7.10 RECORD KEEPING OF EMPLOYESS DATA:

HR records include a wide range of data relating to individuals
working in an organization, for example, pay or absence levels, hours worked and
trade union agreements. This information may be stored in a variety of media, such as
computer databases or paper files. In EFU record keeping is done by various
databases.

7.11 HR AND CUSTOMER SERVICES:

The role of HR in any organization is to serve employees who are
our customers. Our department is, most of all, a service department. While EFU strive
to manage the human capital aspect of our organizations accordingly, it hub is also on
meeting the needs of employees and their managers.
The importance of customer service with internal customers also relates to our
external customers, which in many cases, are the prospective employees coming in
during the interview process.

35

Chapter7.HRM Department

36

Chapter8.Pay, Incentives and Penalty

Chapter 8
PAY, INCENTIVES AND PENALTY
8.1 Sales Manager Benefits
Table 1: Sales Manager Benefits

Designation Medical facility

Unit
manager
Senior unit
manager
Assistant
branch
manager
Branch
manager
Senior
Branch
manager
Group
manager
Regional
manager
Regional
sales
director

Group life cover

A
6,000

B
5,000

A
500,000

B
200,000

Group life (accidental

cover)
A
B
500,000
200,000

10,000

8,500

1,000,000

800,000

1,000,000

800,000

12,000

10,000

1,800,000

1,200,000

1,800,000

1,200,000

21,000

18,000

3,000,000

2,000,000

3,000,000

2,000,000

27,599

25,000

4,500,000

3,000,000

4,500,000

3,000,000

36,000

32,000

6,000,000

4,000,000

6,000,000

4,000,000

45,000

40,000

7,500,000

5,000,000

7,500,000

5,000,000

60,000

50,000

10,000,000

6,500,000

10,000,000

6,500,000

Rules:

Benefits in category A are for the managers who have validated their annual
contract fully in terms of annual production. New and non-validating
managers will get benefits in category B.

37

Chapter8.Pay, Incentives and Penalty

8.2 Car Entitlement

Table 2: Car Entitlement

Senior unit manager

Assistant branch manager
Branch manager
Senior branch manager
Group Manager

Suzuki Mehran VXR(subject to rules)

Suzuki Cultus VXR(subject to rules)
Suzuki swift DX
Honda city (manual)/Toyota Corolla XLI
Toyota Corolla Altis (Automatic)/ Honda
Cvic Promatic (Automatic)
Toyota Corolla Altis (Automatic)/ Honda
Cvic Promatic (Automatic)
Plus a second car (Suzuki Mehran)

Regional sales director

Note:

In one year ifthe same car meets with up to two accidents, the company will
bear the expenses.

However any incident abov and beyond the 2 covered , the depreciation
amount will be borne by the user.

8.3 MANP0WER AND PRODUCTIVITY RULES

A. PRODUCTIVITY BONUS
A productivity bonus will apply on the salary of the Manager depending on the
level of productivity as follows:
Productivity

Bonus :2.5%
55.00% to 59.99%

Bonus :5%
60.00% to 69.99%

Bonus: 10%
70% and above

Average manpower validation requirements must have been met eligible for
this bonus .
B. PRODUCTIVITY PENALTY
For all designation of sales managers the penalty as a percentage of the salary
will apply depending on the level of productivity. The penalty will be worked
out based on the following table:

38

Chapter8.Pay, Incentives and Penalty

Table 3: Productivity Penalty

Penalty: 3%
50% to 54.99%

Penalty: 6%
40% to 49.99%

Penalty: 12%
Below 40%

Note:
The average productivity and average active manpower during the salary
review period would be used in determining the bonus/penalty.

8.4 SALES CONSULTANT CAREER PATH

8.4.1 Sales Consultant
Table 4: Sales Consultant

Production (for contract

validation)
Production

Benefits

Minimum 200,000 collected and issued API

Minimum renewal persistency of 84% for the
second year and 88% for subsequent years
Minimum 350,000 collected and issued API
Minimum renewal persistency of 84% for the
second year and 88% for subsequent years
Group Life Rs. 200,0000/- +accidental death
benefits- Rs.200,000/-

8.4.2 Senior Sales Consultant

Table 5: Senior Sales Consultant

Production

Benefits

600,000 collected and issued API

Minimum renewal persistency of 84% for the second year and
88% for subsequent years (original sold and transferred policies)
License card
Rs. 600/- per month conveyance allowance
Group Life Rs. 500,000/- +accidental death BenefitRs.500,000/ Medical facility of Rs. 5,000 per annum

8.4.3 Executive Sales Consultant

Table 6: Executive Sales Consultant

Production

1,000,000 collected and issued API

Minimum renewal persistency of 84% for the second year and
88% for subsequent years (original sold and transferred
policies)
39

Chapter8.Pay, Incentives and Penalty

Benefits

Gold License card

Rs. 1,000/- per month conveyance allowance
Group Life Rs. 750,000/- +accidental death BenefitRs.750,000/Medical facility of Rs. 7,500 per annum

8.4.4 Senior Executive Sales Consultant

Table 7: Senior Executive Sales Consultant

1,300,000 collected and issued API

Minimum renewal persistency of 84% for the second year and
88% for subsequent years (original sold and transferred
policies)
Gold License card
Rs. 1,500/- per month conveyance allowance
Group Life Rs. 1,000,000/- +accidental death BenefitRs.1,000,000/ Medical facility of Rs. 9,000 per annum

Production

Benefits

8.4.5 Business Development Manager

Table 8: Business Development Manager

Production

Benefits

2,200,000 collected and issued API

Minimum renewal persistency of 84% for the second year and
88% for subsequent years (original sold and transferred policies)
Gold badge
Gold License card
Personal letterhead
Rs. 2,400/- per month conveyance allowance
Group Life Rs. 1,500,000/- +accidental death BenefitRs.1,500,000/ Medical facility of Rs. 11,000 per annum
Overseas Convention (subject to qualification under
Convention rules)

8.4.6 Executive Business Development Manager

Table 9: Executive Business Development Manager

Production
Benefits

Qualified as a BDM for two consecutive years

In addition to the BDMs benefits, override of 10% on
personal issued business.
40

Chapter8.Pay, Incentives and Penalty

Hospitalization plan
Rs. 2,500/- per month conveyance allowance
Group Life Rs. 1,800,000/- +accidental death BenefitRs.1,500,000/Medical facility of Rs. 12,000 per annum
Executive pension plan

8.4.7 Senior Business Manager

Table 10: Senior Business Manager

Production
Benefits

Qualified as an EBDM for three consecutive years

In addition to EBDMs benefits, the following extra benefits
will apply.
Personal Assistant Allowance (subject to employment) of Rs.
5,000/- per month.
Group Life Rs. 2,100,000
Rs. 2,700/- per conveyance allowance
Medical facility of Rs. 13,000 per annum

8.4.8 Executive Senior Business Manager

Table 11: Executive Senior Business Manager

Production
Benefits

Qualified as an SRBM for three consecutive years

In addition to SRBMs benefits, the following extra benefits
will apply.
Development Allowance of Rs.6,500/- per month
Personal Assistant Allowance (subject to employment) of Rs.
5,500/- per month.
Group Life Rs. 2,400,000 + Accidental Death Benefit- Rs.
2,400,000/Rs. 3,000/- per conveyance allowance
Medical facility of Rs. 14,000 per annum

8.4.9 Chief Business Manager

Table 12: Chief Business Manager

Production
Benefits

Qualified as an ESRBM for four consecutive years

In addition to ESRBMs benefits, the following extra benefits
will apply.
Development Allowance of Rs.7,000/- per month
41

Chapter8.Pay, Incentives and Penalty

Personal Assistant Allowance (subject to employment) of Rs.

6,000/- per month.
Group Life Rs. 3,000,000 + Accidental Death Benefit- Rs.
3,000,000/Rs. 3,500/- per conveyance allowance
Medical facility of Rs. 15,000 per annum

8.5 High Production Bonus

8.5.1 Eligibility
All sales consultants whos issued and collected first year API in 2013 is
above Rs. 2,500,000 shall be eligible for the bonus.
Bonus:
Bonus shall be paid at the rate of 5% of the ecess of issued and collected API
over Rs 2,500,000.
Additional Bonus shall be paid at the rae of 2% of the excess of issued and
collected API over 3,800,000.

8.5.2 Persistency Requirement

Minimum renewal persistency of 84% for the second year 88% for subsequent
years the individual has exposure to. The definition of persistency for this purpose is
premium due (original sold and transferred) in 2014 and received by 31 st December
2014.

8.6 Subsequent Years Persistency Bonus

8.6.1 Eligibility
1. Consultant should have at least 11 million due API in 2014.
2. Consultant should have at least 60% original sold due API in 2014.
3. Persistency: At least 84% for 2nd year and average of 88% for subsequent
years. The definition of persistency for this purpose is premium due (original
sold & transferred policies) in 2014 and received (concluded) by 31 st
December 2014.
42

Chapter8.Pay, Incentives and Penalty

8.6.2 Bonus
0.5% of the subsequent years renewal premium is payable.

8.6.3 Other Rules

1. Bonus will be paid to the consultant who secures the subsequent years
renewal.
2. The bonus will be paid in all original sold and transferred policies.
3. Consultant has to maintain original sold persistency also at the level of 84%
for 2nd year and 88% for subsequent years.

8.7 Pension for Consultants

When a consultant qualifies as an Executive Business Development Manager
(EBDM) he company will make a contribution for him/her to a pension plan.
The contribution will be made in the year following qualification as an EBDM
and will be 5% of the initial commission earned on regular premium cases in the year
of qualification. The commencement date of the pension plan will be 1st January.
Notes:

The pension plan will be Executive Pension Plan without any riders.

The EBDM can make additional personal contribution to the plan.

In case of leaving company and completion of minimum 5 policy years, the

consultant can continue the plan at its own or submit surrender request.
On modal premium cases, only the initial commission earned on premium
received will count.

43

Chapter9.Pay, Recruitment, selection and appointment

Chapter 9
RECRUITMENT, SELECTION & APPOINTMENT
EFU is committed to a policy of equal employment opportunities and
welcomes people irrespective of their race or gender. All appointments are made on
the basis of merit and candidates are placed in jobs for which they are best suited.
We provide our employees with life-long employment and career growth. Our
employee development and qualification enhancement program provides opportunity
to talented people to grow and rise to the highest levels of management through a
policy of promotion from within and continuous development. In return we ask for
dedication, hard work and professionalism.
We hold our employees in the highest esteem and we do all we can to increase
their self-worth so that they can achieve fulfillment and full potential. Pay and
performance are linked and rewards and recognition go to those who consistently
outperform.
Work of all employees is directed through a comprehensive performance
management system which interlocks business objective with individual goals, targets
and work plans; evaluates results and achievements; provides feedback and
counseling; and forms the basis for performance and potential review, merit,
increases, salary position, career plans, training and development.

9.1 Recruitment
EFU employs through both formal and informal ways of recruitment.
Departments tell their need to HR department. And then recruitment is done on the
requirement by the project. All candidates send their CVs by post; they are then short
listed and called. So those candidates then report at the EFU main branch from where
they are sent to the Human Resource Department for further interviews. But recently
EFU has devised a new way of recruitment i.e. online applications. They give
Advertisements in leading newspaper and use some other mass media communication
channels and then receive applications and CVs online. In this way huge paper work
is reduced and recruitment process is improved in terms of efficiency and
44

Chapter9.Pay, Recruitment, selection and appointment

convenience

with

the

use

of

technology.

9.1.1 Sources of Recruitment

EFU uses both Internal and External Recruitment. But the priority is given to
the internal if the employee has the capabilities, required by the management for
working on that post. In Internal recruitment they ask for employee referrals. Any
employee can refer any competent and potential person and if the referred person
comes up to their expectations and hired, then the one who referred is rewarded with a
bonus. In External environment the companys corporate Image matters a lot in a way
that not only new candidates are attracted but also people who became a part of it in
past.
9.1.1.1 Internal Methods
EFU usually prefers Job Posting in which employees from within the
organization are preferred but if the organization feels that the employee is not
competent enough then they go for external methods. Such announcements are made
through bulletin boards, memos and other internal sources.

9.1.1.2 External Methods

EFU usually prefers advertising through newspapers and their official website
for their recruitment purposes. They give an open invitation to everyone to apply, so
people who are interested come and if they are capable enough they are hired. They
dont prefer any specific universities or colleges to get the applicants, what matters
are the potential talent and caliber of the person and his commitment to work. Last
year a scheme is started in which a team of HR professionals visit different colleges
and universities to recruit fresh and passionate candidates.

9.2 Strategies for Recruitment

The recruitment process is likewise the same but minutely varies in the
organization depending upon the ranks. In recruitment, EFU keeps certain things in
front e.g.

What the person was getting (in terms of salary) prior to EFUs Job.
Whether the person is polished enough to adjust in their environment.
45

Chapter9.Pay, Recruitment, selection and appointment

Whether he or she has the required technical skills or the required qualification
for that specific job.
In EFU they surely see qualifications but they prefer a person with required
skills, aptitudes, experience and capabilities.

9.3Selection
In EFU, selection Criteria is based on numerous factors such as education,
health, background and previous experience.

9.3.1 Selection process

9.3.1.1 The Application
The employment application is candidates first chance to present his
qualifications to the Organization. As such, it is extremely critical for his/her
continued participation in the examination process. Before beginning, one has
to review thoroughly what the Job Announcement specifies as the
requirements to qualify for the position. Candidate must meet these criteria to
be considered for the position; ensure that, otherwise candidate will be wasting
his effort in completing the application. Most entries on the form are selfexplanatory, but a few pointers on filling it out may help.
9.3.1.2 Written Exams
Written exams are usually obtained from one of several test
construction firms available to them. These tests are designed to determine
level of technical and/or analytical abilities associated with the particular
position for which candidate had applied. The test which is conducted in EFU
selection purpose is TEST OF COGNITIVE ABLITIES. This test is mostly
taken from fresh graduates. Whereas, some people are selected on the basis of
experience.

46

Chapter9.Pay, Recruitment, selection and appointment

9.3.1.3 Performance Exams

Performance exams test ability to accomplish specific job-related tasks
by providing the opportunity to actually perform them. These tests are
scheduled through the Human Resources Department office, with
notification in writing of the date, time, location and duration of the test.
Instructions will be given on the tasks to be completed and then asked to
complete them. Individuals with considerable relevant experience will
conduct the evaluations. Safety, quality of work, adaptability, performance
under

stress,

etc.

are

evaluated.

9.3.1.4 Specialized Testing

Some positions will require specialized testing, such as technical skills,
agility and communication skills etc. These tests are scheduled just as like
other tests.
9.3.1.5 The Panel Interview
The results of this component of the exam process will be used to
determine if candidate should be included on the List of Eligible Candidates
forwarded to the hiring authority for consideration for a departmental
Selection

Interview.

This portion of the examination is normally weighted 100% (or as indicated on

the Job Announcement). Typically, previous test results are used only to
qualify

you

for

participation

in

the

Panel

Interview.

The Panel is comprised of qualified individuals, which may or may not

be employees of the City. Normally, the panel will consist of three evaluators.
These individuals will evaluate responses to a variety of job-related questions
over the scheduled time period.
9.3.1.6 The Selection Interview
Once the List of Eligible Candidates is established it is sent to the
Department(s) that is hiring to fill a current vacancy. The Department Head is
responsible for setting up Selection Interviews. He/she may interview anyone
47

Chapter9.Pay, Recruitment, selection and appointment

on the list, since all persons referred to the department are qualified. The
Department Head will be looking for the candidate with the best qualifications
for their particular position. The candidate selected to fill the vacancy will
undergo a medical examination, drug screen, background investigation, and a
probationary period before attaining permanent employment status.

9.4 Appointment Process

9.4.1 Types of appointments
Specific: usually one position with specific or unique duties
Collective: several positions that are similar in nature or share the same
generic work description and statement of merit criteria.

9.5 The screening process

After an initial screening of applications, an assessment board is set up
that usually consists of the hiring manager, one or two other people, and perhaps
someone from human resources. If a generic appointment process is run across
the sector or branch, managers from several divisions might be involved.
Members of the assessment board review the pre-screened applications
to see whether they meet the advertised merit criteria. To make the process
equitable, board members do not assume, guess or extrapolate; they only go by
what is on your application. If the advertisement requires you to demonstrate
your ability to meet the criteria of the job, this means providing substantiating
information for instance, evidence of past experience to prove that you have
the qualifications required.
If you are screened in, you will generally have to do an examination or
interview, or both.
If you are screened out, you will receive a letter or e-mail that may
outline which elements of your application were considered lacking. In the case
of an internal appointment process, you can request an informal discussion with
the manager about the decision.
An important part of the appointment process is the drafting of
questions that the assessment board will ask all candidates. Expected answers
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Chapter9.Pay, Recruitment, selection and appointment

are assigned a point value, and the assessment board sets passing marks for each
element under knowledge, abilities and personal suitability. Candidates are rated
on their ability to provide full, well-organized responses to questions.
Once the assessment board has evaluated all candidates, it establishes a
pool of qualified, but unranked, candidates. This pool is available to
management as a source of qualified candidates who can be appointed to fill
future vacancies.
To ensure transparency, two notifications are issued:
The first notification informs the candidates, in writing, of the names
of candidates being considered for an appointment, as well as the start and end
date of the waiting period that will give unsuccessful candidates time to request
an informal discussion.
The second notification announces the assessment boards final
decision, and provides the name(s) of the qualified person(s) appointed or
proposed for future appointment.
If you are not being considered for an internal appointment, you will
be notified (usually by e-mail) and advised of your right to an informal
discussion with the manager about the decision.

9.6 TRAINING & DEVELOPMENT

EFU has trained and developed many of its senior and fast track
managers and supervisors. For lower and technical staff the organization have a
complete training calendar for the year, if organization thinks and feel that an
employee requires training to update his knowledge about the field, he just have to
report the HR department and he will be listed for the next training program.

9.6.1

On-the-job Training
As compared to other competitive organizations the training program

of EFU is quite different. It provides full opportunity to its employee to develop

themselves and also train them according to the requirements of their job. In return
they will be greatest asset for their organization. The employee is being trained in
many ways while they are on job.
49

Chapter9.Pay, Recruitment, selection and appointment

9.6.2

External sources
These are formal training opportunities that EFU offers to employees

either internally or externally. A trainer, facilitator and/or subject matter expert are
brought into the organization to provide the training session or an employee are be
sent to one of these learning opportunities during work time. These training
opportunities are provided in the form of seminars, classroom training courses and
workshops.

50

Chapter10.Pay, Internship Program at EFU

Chapter 10
INTERNSHIP PROGRAM AT EFU
Through providing an internship experience, the EFU has the opportunity to
gain from the perspective and background of an enthusiastic and fresh viewpoint on
specific projects as well as in program implementation. The short term nature can also
provide an economical way to increase the number of staff during a busy time of year,
while increasing the ideas, the experience and the connections for your program.
An internship provides a great opportunity for prospective employees to gain
experience in a particular field or industry. Determine if they have an interest in a
particular career, create a network of contacts, or gain university module credits.
Interns may also have the possibility of putting themselves forward for forthcoming
opportunities for paid work, during their internship.

10.1 Intern Eligibility

To apply for EFU Internship, individuals must have obtained a Bachelor's
degree prior to the internship. There are two categories of candidate:

Current graduate student at the time of application to the EFU Internship

program, or

Individual who has BA/ BS degree prior to summer, but has yet to begin a
graduate program

EFU Internships are intended to pair interns with institutions with which they have no
previous experience. Therefore, a student may not serve as an intern at his or her
current institution. While all interns will have completed a Bachelors degree prior to
the start of the internship, hosts may identify a preference for recent graduates or
applicants with at least a year of graduate school experience.

10.2 Compensation and Length of Experience

Internship compensation packages and terms of service are determined by the
individual internship provider.
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Chapter10.Pay, Internship Program at EFU

Most internship will be 10-14 weeks throughout the period of May through August.
Host departments may indicate if dates are flexible; candidates should apply only for
those internships whose timelines they can accommodate.

10.3 Salaries on Internships

An internship may be paid, unpaid or partially paid.

10.3.1 Paid Internships

Paid internships are most common at engineering, legal, business (especially
accounting and finance) technology, medical, science, and advertising sectors.

10.3.2 Unpaid Internships

Many employers in the highly sought after professions, such as TV and
politics, demand that graduate level job candidates undergo a period of unpaid "work
experience" before being able to get paid work. In most cases this "work experience"
is actually simply unpaid work and is contrary to the minimum wage regulations if
unpaid. Such is the demand for this kind of work that very few complaints are made
about this, and so the practice continues albeit illegally.

10.4 Benefits & Advantages of Internships

10.4.1 Gain Work Experience and Transferable Skills
Students all have their educational experience in common. What stands out to
employers is those students who ALSO have work experiences by the time they
graduate. This automatically makes them more marketable; as they may require less
training and are assumed to be able to handle more responsibilities.

10.4.2 Possibly Earn Course Credit

Some degree programs incorporate a work opportunity into a requirement for
graduation by giving course credit for the work experience. Other programs have an
internship as an elective course for credit.

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Chapter10.Pay, Internship Program at EFU

10.4.3 Be Able To Experience a Prospective Career Path

Exploring is a very important part of the academic process, and gaining a work
experience is a great way for students to acquaint themselves with a field they are
looking to learn about. By the time of graduation, the students have confidence that
the degrees they are receiving are the right ones for them.

10.4.4 Gain Practical Experience, By Applying Methods and Theories

Learned In Classes
Many people learn best by being hands on. But everyone can benefit from
seeing the things that they have been learning in class, put to action; whether its in a
chemistry research lab, a marketing development meeting, or a substance abuse
counseling session.

10.4.5 Develop New Skills and Refine Others

Learn your strengths and weaknesses by creating learning objectives and
receiving feedback from your supervisor. This is a unique learning opportunity that
you may never have again as a working adult.

10.4.6 Gain Confidence in Your Abilities

Practice makes perfect. If youve learned about a specific technique in the
classroom, youre able to test it out in the world of work. Then, youll be much more
equipped with the technique.

53

Chapter11.Pay, Job and Retirement

Chapter 11
JOB AND RETIREMENT
11.1 Security with EFU Life
Security means that we can pursue our working lives in the knowledge and with
the assurance that we can provide for our families without fear of interruption.
The problem faced by many people is that they do not have that assurance.
However hard they work, personal security is not within their own control.
Redundancies or lay-off may cause insecurity. As a successful consultant you will not
be faced with this problem.

11.1.1 You Control Your Security

Yours will be personality earned security that goes hand in hand with your own
efforts and your own competence. The life assurance business is permanent and
stable. It offers real security to successful consultants.

11.1.2 Retirement Security

With EFU - LIFE you will have a long - term career. There is no question of
compulsory retirement or unemployment. In fact, in life assurance, a consultant is
never too old to earn, This growth of your business provides a built in nest egg for
retirement, which we call renewal income.

11.2 Opportunity with EFU - Life

One you have become a CONSULTANT, there are two paths of opportunity
ahead of you.

The opportunity to be trained to a high level of professional competence.

An opportunity to gain respect and prestige by helping families and business
people in your operation with their financial affairs.

54

Chapter11.Pay, Job and Retirement

11.2.1 Opportunity for Management

Most successful consultant find that they are happiest when selling, but if you
aspire to become one of the management team, EFU- Life can provide that
opportunity. This involves:

The opportunity to receive Management Training.

To build your own team of Consultants.
To help others become as successful as you have become.

There is no minimum or maximum time within which this "points of decision" has to
be reached. It all depends on your commitment and efforts to fulfill those personal
ambitions.

11.3 Job Satisfaction with EFU Life

Money is an important incentive for which we all work, but life would be
empty indeed if this was our only objective and our only reward. A successful career
with EFU-Life is very well paid, but there is far more to it than that. It involves
helping people with their financial affairs and setting up plans to provide them with
money when they most need it. Here are just a few of the ways we can help people.

Money for widows and children

A lump sum or income for retirement.
The provision funds for children's education.
Protection against loss of business due to the death of an employee.
Long term saving for special needs.
Critical illness covers. We sell "Peace of Mind" In other words: The work is
deeply satisfying and adds purpose to your life. At the same time it is the

highest paid work.

We sell "Peace of Mind" in other words: The work is deeply satisfying and adds
purpose to your life. At the same time it is the highest paid work.

55

Conclusion

CONCLUSION
Career with EFU- Life will provide you with
these important ingredients, but before outlining
them, here is a question frequently asked by people
like yourself interested in the career.

"IS IT NECESSARY TO HAVE PREVIOUS

SELLING EXPERIENCE TO BE SUCCESSFUL
IN THIS BUSINESS?

Figure Error! No text of specified style in

Quite simply, the answer is "NO". Looking at the

document..9: 2nd Global HR Excellence Awards-

background most successful consultants, we find that they came from many walks of
life and they had varied experience, What they to have in common, is an ambition to
succeed and an determination to work hard for this success. With our training and
guidance their natural talents have blossomed and they now lead a busy business life,
enjoy high earnings and have more creative and fulfilling lifestyle. Previous
experience is not necessary, but what is necessary is:

A willingness to accept training and follow a proven, successful method of

running your business.

The desire to succeed and the willingness to work hard to attain your ambition.

Complete honestly in your dealings with the public and with all colleagues
within the Company.

A positive mental attitude.

56

Conclusion

57

Employee Survey Form

12APPENDIX A
12.1 QUESTIONNAIRE

58

Employee Survey Form

59

Employee Survey Form

60

Employee Survey Form

61

Employee Survey Form

62

Employee Survey Form

63

Employee Survey Form

64

Employee Survey Form

65

References

REFERENCES
[1]http://quotes.wsj.com/PK/XKAR/EFUL/financials
[2]http://www.pakistaneconomist.com/database2/pdffiles/Insurance/EFU%20LIFE
%20INSURANCE/Year%202012/EFULAnnual-%20Y12.pdf
[3]http://www.pakistaneconomist.com/database2/pdffiles/Insurance/EFU%20LIFE
%20INSURANCE/Year%202012/EFULAnnual-%20Y12.pdf
[4] http://www.efulife.com/individual-insurance/prosperity-for-life/
[5] http://www.efulife.com/individual-insurance/education-plan/
[6] http://www.efulife.com/individual-insurance/marriage-plan/
[7] http://www.efulife.com/individual-insurance/nisa-savings-plan/
[8] http://www.efulife.com/individual-insurance/savings-plan/
[9] http://www.efulife.com/individual-insurance/executive-pension-plan/
[10] http://www.efulife.com/individual-insurance/khushhali-plan/
[11] http://www.efulife.com/individual-insurance/security-plan/
[12] http://quotes.wsj.com/PK/XKAR/EFUL/company-people
[13] http://www.netmba.com/marketing/market/share/
[14]http://www.bplans.com/insurance_company_business_plan/executive_summary_f
c.php

66

References

[15]http://www.bplans.com/insurance_company_business_plan/executive_summary_f
c.php
www.investing.com/equities/efu-general-ratios
www.brecorder.com/top-stories/single/595/0/1084803/
www.efuinsurance.com/newsletter/pdf/issue106_pdf/page4.pdf
http://www.efuinsurance.com/officeNetwork.php
http://www.efuinsurance.com/newsletter/pdf/issue85_pdf/Page7.pdf
www.efulife.com/individual-insurance/executive-pension-plan/
http://www.efuinsurance.com/newsletter/pdf/issue106_pdf/page4.pdf
http://www.efuinsurance.com/financials/pdf/annual_accounts_2013.pdf
http://www.marketwatch.com/investing/fund/efu/profile
http://www.efulife.com/individual-insurance/prosperity-for-life/

67

Individual Work Percentage

PERCENTAGE OF INDIVIDUAL WORKING

Aiman Saboor

25%

Aruba Mujib

25%

Mizna Khalid

25%

Mehwish Masood

25%

68

Individual Work Percentage

69

Individual Work Percentage

70

Individual Work Percentage

71

Individual Work Percentage

72

Individual Work Percentage

73

Individual Work Percentage

74