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SUBJECT
Internship Report of Postal Life Insurance (PLI)
Agency Function of Pakistan Post
Ministry of Communication

SUBMITTED BY: MUHAMMAD DAUD KHAN


ROLL NO: 09
SUBMITTED TO: MADAM AQSA

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.
Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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

To define and describe various functions of the PLI.

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

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

To get exposure and to develop the interpersonal communication skill.

1.3 SCOPE OF WORK

It is a compulsory requirement for the award of Masters Degree in 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 financial activities of the 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). Pakistan Post Office Department became
49 member of UPU in 1947. Almost all 192 countries are its members.

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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 are the focal points. Deputy
Director General Agency Functions deals with the subject at Pakistan Post Headquarters G-8/4
Islamabad
2.2 OBJECTIVES OF (PLI)

To provide insurance cover.


To run life insurance business on sound line.
To provide more efficient service to the policy holders.
To maximize the return to the policyholders by economizing on expenses.
To mobilize small savings and place the same at the disposal of Government.
To use the policyholders' fund in the wider interest of the country.
To care for its stake holders.
To care for its employees.
To uphold the rules.

To widen the area of operation of life insurance and making it available to as large a section of the
population as possible, extending it from the comparatively more affluent sections of society to the
common man in towns and villages.

2.3 PLI Plans and Policies


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

Master in HRM (Final Semester), Roll No.03

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expects to have an income to finance the policy. The value of a whole life policy is payable to the
family of the insured only after his death.
2.3.2 Endowment policy
This is the most suitable arrangement to provide for an adequate income at the time of retirement or
an earlier age when certain liabilities are expected to be met. The risk of premature death is at the
same time covered. There is a variety of endowment policies available. The policies mature for
payment on the assurer's attaining the age 30, 35, 40, 45, 50, 55, 60, 65 or 70 years or an earlier
death. Policies can also be purchased which mature for payment after the expiry of the fixed term of
years of 5,10,15,20,25,30,35 and 40 years or an earlier death.
2.3.3 Joint Life Endowment Assurance
Under this plan policies are issued on the lives of two persons and simultaneously cover risk on the
lives of both for the sum assured. The sum assured is payable either at the end of specified term 10,
15,20,25,30 and 35 or at earlier death of either of the insured person. The premium are payable till
the end of the specified term or till death of the either of the insured persons if earlier.
2.3.4 Anticipated Endowment Assurance - 3 Payment Plans
Under this plan policies are issued for the fixed terms of 12, 15, 18,21,24,27 and 30 years. The
benefits attached to these policies would be as under:

25% of the sum assured shall be paid at the end of 4,5,6,7,8,9 or 10 years from the date of
commencement of policy of 12,15,18,21,24,27 or 30 years term respectively provided the
assured is then surviving.
Another 25% of the sum assured shall be paid at the end of 8,10,12,14,16,18, or 20 years for
policies of 12,15,18,21,24,27, or 30 years term respectively provided the assured is then
surviving.
The remaining 50% of the sum assured plus accrued bonus shall be paid at the end of the
term of the policy provided the assured is then surviving.

Full sum assured plus accrued bonus would be payable on death at any time within the term of the
policy.
2.3.5 Endowment Education or Endowment Marriage Assurance

Issued for the period ranging from 5-17 years


The period of endowment is timed as per requirement of the beneficiary child
In case of death of the insured before the specified date, the policy becomes a claim and
payment of further installments are waived off
The amount of claim is deposited in S.B account in the name of nominated child and is paid
with accruing profits on the specified date/ expiry of term.

2.3.6 Accidental Death & Permanent Disability Benefit Contract


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

Master in HRM (Final Semester), Roll No.03

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2.3.7 Group Insurance
Postal Life Insurance provides group insurance coverage to the employees of Govt., public & private
organizations. We provide life insurance cover to each member of a group round the clock. In the
event of death of any member during the currency of the contract, we are committed to pay the sum
assured promptly to his nominated beneficiary.
Postal Life Insurance has furthermore introduced "Passengers Insurance Scheme" for passengers
traveling by Road, Rail and Air. PLI is providing this facility in northern areas through Mashabrum
Tours & other transport companies of Gilgit/Skardu.
2.3.8 Child protection police

CPP is issued jointly on the lives of the child and the father or mother
No other relative is allowed to be associated with the policy
It is issued when the age of the child is between 1 to 17 years as per details given below.

2.4 FEATURES OF (PLI)

Lowest premium rates


All policies including paid up participate in profits
Premium payable on monthly basis and only up to the month of claim
Payment of premium in cash at any post office in Pakistan
No maximum limit for ordinary policies
Revival of lapsed policies on easy terms
Loan on policies
Highest rate of bonus
Open to all
Rebate on advance payment of premium
Payment of premium through salary bill deduction
Non-lapsing of policies of two years duration
Liberal surrender value of PLI policies
Payment guaranteed by Government of Pakistan

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 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
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Master in HRM (Final Semester), Roll No.03

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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.

CHAPTER-3
WHAT I HAVE LEARNT
3.1 ORGANIZATIONAL STRUCTURE
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.

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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

Chairman/Director General Pakistan Post


Mashal Khan
Additional Director General (OPS/PLI)
Fazli Sattar Khan

Director PLI Islamabad


Ch Muhammad Aslam

GM PLI Karachi

General Manager Postal Life Insurance Lahore


Nasir Hassan
Director PLI Lahore Region

Director PLI Multan Region

Director PLI Peshawar Region


Muhammad Yousaf Afridi

AGM PLI Peshawar Region


Shah Nawaz Mahsud
Mr.Nazir Ahmad
AD (F) PLI Abbottabad

Mr.Shawar Gul
AD (F) PLI D.I.Khan
Mr. Muzzammil Hussain
AD (F) PLI Gilgit
Miss Asma Humayoon
AD (F) PLI Islamabad
Mr.Abdul Ghafoor
AD (F) PLI Mardan

Mr.Sultan Jammat Khan


AD (F) PLI Muzaffarabad
Mr. Rasool Khan
AD (F) PLI Peshawar
Syed Manzoor Ahmad Shah
AD (F) PLI Rawalpindi

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

AGM PLI Peshawar Region


Shah Nawaz Mahsud
Admin Branch
Computer Lab
Accounts Officer

AD(Issue)

AD(Claims )
Record & General
Branch

Accounts Branch
Issue Branch

Claim Branch

Posting & General Branch


Audit 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 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.
Kamran Saif|

Master in HRM (Final Semester), Roll No.03

10

What are the activities in different Sections/Branches of PLI Peshawar Region ?


PLI Peshawar Region is operating at the 2nd Floor of the office of the Postmaster General KPK.
PLI Regional Office is located at near Edwards College, The Mall Road Peshawar Cantt
Peshawar. PLI has main Four Branches

Administration Branch

Issue Branch

Accounts Branch

Claims Branch

Administration Branch is working under the kind control of Worthy Assistant General Manager.
Postal Life Insurance as per the instructions from the Director PLI Peshawar Region. Administration
Branch is supervised by the Assistant Superintendent (Office/Admin). The Staff strength is Five (05)
i:e. Staff Clerk, Statement Clerk, Computer Operator, Draftsman and Dispatcher.

The Staff Clerk has been assigned the duties to deal with all Staff related matter i:e. Appointments,
Posting & Transfer, Leave Arrangements and other duties assigned by the officer. Statement Clerk
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Master in HRM (Final Semester), Roll No.03

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deals with statements, Weekly diaries, Summaries and T.A Bills related to regional office.
Draftsman is assigned the duty to deal with all Welfare Cases and correspondence with the General
Manager and other superior offices. Dispatcher receives dock and dispatch dock to the quarter
concerned.

Issue Branch is the second indigenous branch of PLI Peshawar Region working under the
kind control of the Assistant Director (Issue). Issue Branch is supervised by AS(O). Issue Branch has
a statement Clerk which deals with fresh business. Fresh Business is defined as new clients insured
in the Eight (08) Field offices working in jurisdiction of Director PLI Peshawar . When a person is
insured, he dully fill LI-9 Form having all information related to insurant and is attested by the
canvassing agent, Assistant Superintendent (Field) and Concerned Assistant Director (F). The
Manual form is also fed in the computer automated software (Postal Life Insurance Software-PLIS)
designed by 360 Technologies (Pvt) Ltd. Technology is cry of modern age and in competitive global
business environment. Issue Branch Scrutinize and accept genuine proposal forms fulfilling all POIF
Rules & Regulations and forward defective proposal forms to field units for correction at their end.
The forms having anomalies and contradictions with POIF rules are rejected and refunded after
deducting expenses. The Accepted Proposal forms are issued with a policy showing the face value,
name, risk date, maturity date and other particulars. A main File record is maintained in R&G
Section, working under the kind control of AD(Claims). Duplicate policy is issued to insurants who
have lost their original policy due to flood or any genuine reasons. A Part File is sent PG Section
where Posting of Subsequent premiums is recorded which is working under the kind control of
Accounts Officer. Issue Branch maintains a policy register showing the policy numbers issued in
chronological order. Issue Branch is also called the revenue branch that records collection of fresh
premiums which can be compared with expenditure to calculate how efficiently and effectively the
work force is utilized.

One of the integral and important branch of PLI is Accounts branch. Accounts Branch is led
by Accounts Officer, who is assisted by Junior Accountant. Account Branch as the name signifies
look after the accounts matters of whole region. Payroll, Deductions and GPF calculations are done.
Monthly contingent Bills are also checked. Accounts Branch observes PLI Receipts and Payments
very keenly. Accounts Branch also look after the audit of PLI Peshawar Region. Accounts Branch
Auditors look out the fresh forms before acceptance and audits claims cases before payments. Loan
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Master in HRM (Final Semester), Roll No.03

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Audit is also carried in Accounts Branch. Loan Interest is intimated to those loan takers who are not
paying regularly. Accounts Branch also keep a close eye on Stock Branch. Stock Branch maintains
all stock records and supply the demanded articles to all Field Units and Branches of Regional
Directorate PLI Peshawar.

Claims Branch is also an important branch that deals with the matured, death and Surrender Value
Claim cases. Loan Cases are also cleared by releasing the pledged policy cards while scrutinizing
loans. Loan are provided to clients to discourage SVC. SVC is a claims when an insurant lodge
request that he is unable to continue the policy and want to terminate the agreement. Under SVC an
amount under POIF Rules is paid to client, The more the duration of the policy continuation the
more will be bonus and payment and the short the duration of the policy continuation the lesser will
be bonus and payment. Loan can be granted up to 90 % of SVC amount. As per policy when the
policy is matured an amount along with bonus is paid to insurant as per PLI Rules. DVC is paid to
the nominee of the deceased policy holder to secure the future of the assignee. Claims Branch look
after Record & General Branch where the Main File Record is kept and updated cleanly. Assistant
Director (Claims) also deal with wedding cell where the paid claims case are kept for Five (05) and
then wed out.

A Computer Lab is established since 1-11-2011 and is operating successfully. Computer Lab has
updated manual data of Peshawar region successfully comprising of 80000 Files. 13 GPOs out of 29
GPOs associated with 8 Field Units working under Regional Directorate PLI Peshawar Region has
been successfully automated and Insurants can pay premiums and a confirmation message is issued
on counter immediately as the amount is entered in PLIS. The Remaining 16 GPOs will be
automated up till 31-12-2015. A website is launched and is under construction www.pli.com.pk .
Computerized acceptance and Policy issuance is under way.

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

13

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

Aggressive
strategy -->

Diversification
Strategy -->

Opportunities

Strengths

Weaknesses

Threats

<--Turnover
Strategy

<--Defensive
Strategy

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
Security /Safety with respect to deposits
Efficient Manpower Courier services
Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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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

Threats:
Kamran Saif|

Master in HRM (Final Semester), Roll No.03

15
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

Kamran Saif|

Master in HRM (Final Semester), Roll No.03

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