internship report of pli (2).docx

8/10/2019 Internship report of PLI (2).docx

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Muhammad Adnan| Master in HRM (Final Semester), Roll No.27

1

SUBJECT

INTERNSHIP REPORT OF POSTAL LIFE INSURANCE (PLI)

AGENCY FUNCTION OF PAKISTAN POST

MINISTRY OF COMMUNICATION

SUBMITTED BY: MUHAMMAD ADNAN

ROLL NO: 27

SUBMITTED TO: SIR FAHIM


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Chapter No 1

INTRODUCTION

1.1 BACKGROUND

In the past days university were producing graduates without practical / experience. These

graduates faced many problems in the practical life/job. Due to which remain jobless for a long

time. If they were not performing their duties because they were from a theoretical background

not having any practical experience regarding their chosen field of study.

Finally the universities recognized the fact and added additional requirement in the fulfillment of

the graduate degree. This additional requirement was that of the internship. The students are

bounded to work in an organization for at least two months. This now the degree requirement for

master programs and is called internship. This is a research type study where the interne explore

the organization. The strengths, weaknesses, threats and opportunities of the organization are

found out. After this, the comparative analysis is done and recommendations are made for the

utilization of the strengths, put right the weakness, availing the opportunities and overcoming the

threats of the organization as well.

This report is basically internship report. Being a student of Master in HRM at Quaid-E-Azam

College of Commerce, University of Peshawar for two months of internship in an organization is

compulsory for me for the completion of my Master in HRM. Due to which I completed my

internship in the PLI of Peshawar to study the human resource activities brought for

enhancement both in its employees and public.

1.2 PURPOSE OF THE STUDY

Purpose of this program is to make student familiar with the practical work, as there is great

difference between what they have learnt during their Master HRM and how the job is

practically done.

Another important aspect of the internship program is that internee is placed in most of the

departments of the organization through job rotation. It provides a glance of each department, as

the period is too short for learning in detail.

Other objectives of the study are as follows

To gather relevant information then interpret and analyze it in a useful manner.

To define and describe various functions of the PLI.


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To highlight the outline facilities and products offered by PLI to its customers.

To analyze the PLI through different techniques i-e Horizontal, Vertical, Trend and

SWOT analysis.

To get exposure and to develop the interpersonal communication skill.

1.3 SCOPE OF WORK

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

This report is concerned with the performance of the Regional Directorate PLI Peshawar.

It will help the present and prospective students of the college in making assignment and

writing report on the PLI.

It can also provide help to PLIs management in identifying their Strengths, Weaknesses,

Opportunities and Threats.

It can also provide assistance to students seeking financial data for analysis.

1.4 IMPORTANCE OF STUDY

Insurance play a very important role in the economic life of a country, thats why they are

considered as the lifeblood of modern economy and developed economy. Today no one can deny

the importance of Life Insurance in the economy. They facilitate and expedite trade and

commerce it is observed all over the world.PLI is a universal Insurance Scheme having existence

all over the world under the umbrella of Universal Postal Union (UPU).

I have chosen the Postal life Insurance for my internship because it sponsor has a strong life

insurance background. Furthermore it was convenient and accessible for our life. Besides this,

PLI is playing an important role in the financial deficit controlling of Pakistan Post and at large

development of Pakistan.

1.5 METHODOLOGY OF STUDY

In preparation of this report, mentioned below data collection techniques have been used i.e.

primary dare & secondary data.

1.5.1 SOURCES OF PRIMARY DATA

Personal Observation, Interviews of Personnel.

1.5.2 SOURCES OF SECONDARY DATA

Annual Reports, Booklet, Books, Web sites.

1.6 LIMITATION OF STUDY

The most important limitation from which the study suffers is the non-availability of information

in a manner required for analysis and the secrecy of the PLI.


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Another important limitation of the study is time constraint, Two months period is too less to

study the operations of the PLI thoroughly.

Chapter 2

2.1 BACKGROUNG OF POSTAL LIFE INSURANCE

Postal Life Insurance is the oldest and largest organization & services of its kind in the

Subcontinent. Established by the British Raj in 1884, initially to assure the lives of postal mail

runners, its services were gradually extended to other government employees as well. After

independence Postal Life emerged as a key player in life insurance business and offered its

services to everyone.

Postal Life Insurance is the brain child of Ministry of Finance. Pak Post serves as its agent.

However Director General Pakistan Post is exclusively responsible for managing, organizing and

controlling its operations and marketing its various products. Postal Life is exempted from

corporate and income tax. All the money generated is invested in Post Office Insurance Fund

controlled by the Ministry of Finance. Pak Post gets a return at the prevailing government

investment return rates. This policy ensures security of fund, attractive return and increased

public confidence.

Postal Life has an unbeatable presence in the rural areas due to extensive network of post offices.

Every post office serves as its outlet. This gives Postal Life an enormous advantage over its

business rivals and helps to offer a wide range of insurance policies to customers at the lowest

premium while ensuring highest bonus on their investment.

For purchasing a policy any local Assistant Director Postal Life Insurance could be contacted in

Pakistan. Officers of the Assistant Directors PLI are mostly located in General Post Offices. For

query, clarification or settlement of claims, Assistant Directors PLI is the focal points. Deputy

Director General Agency Functions deals with the subject at Pakistan Post Headquarters G-8/4

Islamabad.

2.2 OBJECTIVES OF (PLI)

To provide insurance cover.

To run life insurance business on sound line.

To provide more efficient service to the policy holders.

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

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

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

To care for its stake holders.

To care for its employees.

To uphold the rules.


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To widen the area of operation of life insurance and making it available to as large a section of

the population as possible, extending it from the comparatively more affluent sections of society

to the common man in towns and villages.

2.3 PLI Plans and Policies

Whole life policy, Joint life endowment policy, Endowment policy Education and marriage

endowment assurance, Accidental death and permanent disability benefit contract, Annuity

policies, anticipated endowment (three payments) plan, Child protection policy, Group

insurance.

2.3.1 Whole life policy

Cheapest survival arrangement for a family against premature casualty of the bread earner. Thepremium rates are lower than those for other types. The insured has the option to pay premium

till he reaches the age of 50, 55, 60 or 70 years as he may desire, according to the age up to

which he expects to have an income to finance the policy. The value of a whole life policy is

payable to the family of the insured only after his death.

2.3.2 Endowment policy

This is the most suitable arrangement to provide for an adequate income at the time of retirement

or an earlier age when certain liabilities are expected to be met. The risk of premature death is at

the same time covered. There is a variety of endowment policies available. The policies mature

for payment on the assurer's attaining the age 30, 35, 40, 45, 50, 55, 60, 65 or 70 years or an

earlier death. Policies can also be purchased which mature for payment after the expiry of the

fixed term of years of 5,10,15,20,25,30,35 and 40 years or an earlier death.

2.3.3 Joint Life Endowment Assurance

Under this plan policies are issued on the lives of two persons and simultaneously cover risk on

the lives of both for the sum assured. The sum assured is payable either at the end of specified

term 10, 15,20,25,30 and 35 or at earlier death of either of the insured person. The premium are

payable till the end of the specified term or till death of the either of the insured persons if

earlier.

2.3.4 Anticipated Endowment Assurance - 3 Payment Plans

Under this plan policies are issued for the fixed terms of 12, 15, 18,21,24,27 and 30 years. The

benefits attached to these policies would be as under:

25% of the sum assured shall be paid at the end of 4,5,6,7,8,9 or 10 years from the date of

commencement of policy of 12,15,18,21,24,27 or 30 years term respectively provided the

assured is then surviving.


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Another 25% of the sum assured shall be paid at the end of 8,10,12,14,16,18, or 20 years

for policies of 12,15,18,21,24,27, or 30 years term respectively provided the assured is

then surviving.

The remaining 50% of the sum assured plus accrued bonus shall be paid at the end of the

term of the policy provided the assured is then surviving.

Full sum assured plus accrued bonus would be payable on death at any time within the term of

the policy.

2.3.5 Endowment Education or Endowment Marriage Assurance

Issued for the period ranging from 5-17 years

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

In case of death of the insured before the specified date, the policy becomes a claim and

payment of further installments are waived off

The amount of claim is deposited in S.B account in the name of nominated child and is

paid with accruing profits on the specified date/ expiry of term.

2.3.6 Accidental Death & Permanent Disability Benefit Contract

There are supplementary contracts issued to policy holders other than those employed in the

Army, the Navy and the Air Force and other persons exposed to extraordinary occupational

hazards. The contracts are issued in combination with whole life or endowment assurance policy

of not less than Rs. 10,000/-. They provide for payment of an additional amount not exceeding

the sum assured in the case of death of the insured due to an accident as well as in the vent of the

insured losing the use of one or two of life limbs or eyes due to an accident. The maximum

additional benefit is limited to Rs. 500,000/- and the supplementary contract ceases to be

effective after the insured has attained the age of 55 years. An extra premium of Rs. 3/- per

thousand per annum to cover accidental death and Rs. 6/- per thousand per annum to cover

accidental death and permanent disability is required to be paid annually by the insured. No

benefit accrues does not arise. A supplementary contract ceases to be operative if the policy in

combination with which it is issued lapses for any reason.

2.3.7 Group Insurance

Postal Life Insurance provides group insurance coverage to the employees of Govt., public &

private organizations. We provide life insurance cover to each member of a group round the

clock. In the event of death of any member during the currency of the contract, we are committed

to pay the sum assured promptly to his nominated beneficiary.

Postal Life Insurance has furthermore introduced "Passengers Insurance Scheme" for passengers

traveling by Road, Rail and Air. PLI is providing this facility in northern areas through

Mashabrum Tours & other transport companies of Gilgit/Skardu.

2.3.8 Child protection police


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CPP is issued jointly on the lives of the child and the father or mother

No other relative is allowed to be associated with the policy

It is issued when the age of the child is between 1 to 17 years as per details given below.

2.4 FEATURES OF (PLI)

Lowest premium rates

All policies including paid up participate in profits

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

Payment of premium in cash at any post office in Pakistan

No maximum limit for ordinary policies

Revival of lapsed policies on easy terms

Loan on policies

Highest rate of bonus

Open to all

Rebate on advance payment of premia

Payment of premia through salary bill deduction

Non-lapsing of policies of two years duration

Liberal surrender value of PLI policies

Payment guaranteed by Government of Pakistan

CHAPTER-3

WHAT I HAVE LEARN

3.1 ORGANIZATIONAL STRUCTUR

An organization is a group of people working together in a structured and coordinated manner to

achieve a set of goals. In other words [Organizations are systems of relating resources that will

make possible the accomplishment of specified ends or goals.

Every organization has a number of bodies/departments for carrying out its various functions and

achievement / organizational objectives. In PTCL the Board of Directors carries out the functions

of planning and policy formulation whereas the executive management carries out the

management of the organization.

ORGANIZATIONAL CHART OF THE OFFICE OF THE DIRECTOR POSTAL LIFE INSURANCE PESHAWAR

REGION

Chairman/Director General Pakistan Post

Additional Director General (OPS/PLI)


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Director PLI Islamabad

GM PLI Karachi

General Manager Postal Life Insurance Lahore

Director PLI Lahore Region Director PLI Multan

Region

Director PLI Peshawar Region

AGM PLI Peshawar Region

AD (F) PLI Abbottabad

AD (F) PLI D.I.Khan

AD (F) PLI Gilgit

AD (F) PLI Islamabad

AD (F) PLI Mardan

AD (F) PLI Muzaffarabad

AD (F) PLI Peshawar

AD (F) PLI Rawalpindi

Admin Branch

Computer Lab

Accounts Officer AD(Issue) AD(Claims )

Record &

General Branch

Accounts Branch Issue Branch Claim Branch

Posting & General Branch

Stock Branch Weeding Cell

HR FORCE AND ORGANOGRAM OF PLI PESHAWAR REGION (PAKISTAN POST):

Pakistan Post Office Department has provided employement oppertunities to Twelve Thousands and

Thirty Five (12035) personals. Genral Post Offices are created in every district level. GPOs works under

the supervision of Post Master General. PLI has its own setup. There are Two General Managers of


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Grade-20 working under Director General Pakistan Post. I have applied for internship in Regional

Directorate Postal Life Insurance Peshawar working under the powers vested by General Manager

Postal Life Insurance Northern Pakistan Lahore.PLI Peshawar Region is looking for Eight (08) Field

Units i:e Abbottabad, D.I.Khan, Gilgit, Islamabad, Mardan, Muzaffarabad, Peshawar and Rawalpindi.

The HR Strength of PLI Peshawar Region is comprising of 112 employees out of which 54 are deplyed

in regional office and the remaining in 8 field units to provide customer service to people at Field Office

Level. There are three (04) Main Branches in Regional Office. Namely Issue Branch, Administartion

Branch, Claims Branch and Accounts Branch.

Administartion Branch look afters all the administrative and HR activities under the Kind control of

AGM PLI Peshawar Region. Computer Lab is also operationalized to automate PLI Record and

Activities. Issue Branch is life Blood of PLI. It scrutinize and finalize all fresh collections of insurance

policies and then hand over a complete record to R&G Branch working under the kind control of

AD(Claims). Accounts Branch look afters all accounts matters i:e Salary, Expenditures, Income and

Audit. P&G branch is Posting & General Section, a subsidary of Accounts Branch which tackles posting

works of Cash and Loan Schedules. All PLI Receipts and Payments are neatly recorded for future

purpose and reconciliation purpose. Stock is the other integeral part of Accounts Branch. Stock Branch

maintain all the stock records of Peshawar Region. Stock Branch also arrange and manage all items for

Field Formation. Claims Branch is Insurance Payment or Expenditure Branch of PLI, All the Matured ,

Surrenderd and Death claim cases are settled here and payments are sanctioned.


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CHAPTER-4

SWOT Analysis

It is an important tools to analysis the overall situation in which an organization is conducting its

affair. Each issue remains relevant and useful for corporate strategy formatting.

SWOT ANALYSIS DIAGRAM

SWOT ANALYSIS

Strengths:

Century Old Organization

Large Human as well as physical Infrastructure

Presence, both in urban and rural areas

Large portfolio of Services

Reach in rural and semi-urban areas

More branches, More services

Good facilities to customers

Strong Network

Opportunities Strengths

ThreatsWeaknesses


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Security /Safety with respect to deposits

Efficient Manpower Courier services

Large range of Services

Trust of Public

Weaknesses:

Lack of autonomy in operation

Lacking in technology/automation

Lack of training

Absence of Marketing/Customer Care Functions

Poor Market Perception

Poor Incentives for Staff/Lack of Motivation

Inadequate Supervisory Positions

No advertisements

Not provide loan to consumer

Job stress among employees

Lower rate of interest on deposits as competitors

Opportunities:

Provide access to larger population

Tremendous potential to grow business in existing services

Optimal use of the large infrastructure

Explore new business avenues

In rural and urban areas

In developing national economy

In developing communication to other countries

In developing good relationship with people

Increasing number of customer

Inflationary market

Technological advancement

Remarkable potential to grow business in existing services

Best use of the large infrastructure


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Threats:

Deteriorating physical, technical & human infrastructure

Fast depletion of market share to private courier companies

Lack of autonomy to effectively compete

Courier services ( collectively growth 15-20 % )

Insurance companies

Banking sector

Customer dissatisfaction

Increasing market share of competitors

internship report of pli (2).docx

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