Professional Documents
Culture Documents
Table of Contents
In 1992, the Government of Pakistan reopened the life insurance business to the
private sector organizations and EFU Life Assurance Ltd was incorporated in
November 1992 as the first private sector life insurance company. In early 1993,
EFU Life commenced writing group life insurance business and by March 1994,
the company began writing its individual life business.
The Company has a growing branch network of 72 branches through out the
country with employee strength of over 1,600 personnel in its sales force and
around 150 personnel at its main offices in Karachi and Lahore. The company
employs 5 full time actuaries and also has an active involvement of one of the
leading actuarial firms in the country.
EFU Life is the first life insurance company in Pakistan to be awarded the ISO
9001:2000 certification. Today, EFU Life continues to be the largest private
sector life insurance company in Pakistan. In 2005, EFU Life’s premium income
was Rs. 2.5 billion.
Manager
*All in percentages. Not true figures.
The Assistant Officer, Officer and Senior Officer have each 1 grade level which
are 1, 2 and 3 respectively. The Executive officer, Assistant Manager, Deputy
Manager and Manager each has 2 grade levels, that is, 4, 5, 6, 7, 8, 9, 10 and 11
respectively. The Senior Manager Level has 3 grade levels; 12, 13 and 14. This
makes the total of 14 pay scale groups that EFU has.
Classification Level:
1. Every management and professional position is assigned to a
classification level. In all cases, the salary range is broad enough to allow
for considerate growth in salary and over a career even if the individual is
not promoted or advanced to higher-level classification. This allows for
recognition of an employee whose superior performance may justify a
higher salary.
For Sales Force however they allocate a commission based on the Job
Description of the sales force. The commission is paid along with a basic pay.
This commission is calculated accordingly when the sales force sell a product
approximately a 50% commission is paid on average.
A member's grade (usually the same as rank) and years of service determines
the amount of basic pay received. It is divided into two main areas that includes
Tax Advantage
They are usually remain closed on non working days and hence they may have
not really allocated any sum of money for such working hours.
4.3.1 Accommodation
BAS is meant to offset costs for a member's meals. This allowance is based in
the historic origins of the EFU’s members in which the organization provided
room and board (or rations) as part of a member's pay. This allowance is not
intended to offset the costs of meals for family members. Beginning on January
1, all enlisted members get full BAS, but pay for their meals.
The employees receive these allowance depending on the pay scale grade
they lye in. we were informed that these individuals may receive higher
compensation if they belong to higher pay scale grade and vice versa.
However every single employee gets coverage the benefit of medical
benefits. This benefit can be secured as an independent policy and it provides
for payment of sum assured if a member contracts any of the following ten
illnesses.
Heart Attack
Cancer
Major Organ Transplant #
Stroke
Paralysis
Kidney Failure
Deafness
Blindness
Multiple Sclerosis
Coronary Artery By-Pass Surgery
Group cover from EFU Life offers a variety of coverage options. Employers may
select basic and supplemental coverage amount to fit the requirements of the
employees.
Death
Group Accidental Death Benefit
The above covers are offered on a 24 hour worldwide basis, which means that
both ‘On Duty’ and ‘Off Duty’ claims are covered. The group cover from EFU Life
offers comprehensive protection and a whole range of options. It is a cost-
effective and easy-to-administer means for employers to provide protection to
their employees without requiring evidence of insurability.
4.3.5 Conveyance
We were informed that the employees are given different kind of conveyance or
conveyance allowance based on the pay scale grade the employees lie in. The
managerial level employees receive an allowance to travel for the office
purposes, the actual figures were not disclosed to us. The lower level of
employees does not enjoy this privilege.
Service members who remain on active duty for a sufficient period of time may
retire and receive retired pay. Retirees also retain the privilege to use base
facilities, such as the Commissary and gym. Those members who entered
Service on or after a specified time, and who will qualify for an active duty
retirement, may choose between two of the current three systems. Members who
become disabled while on duty may be medically retired and receive a disability
retirement. Additionally, all retirees may choose to participate in the Benefit Plan
or the Reserve Components, which protects the retiree's family financially in the
event of his or her death.
The TSP offers the same type of savings and tax benefits that many other
insurance corporations offer their employees under specified plans. The
retirement income that the employees receive from your TSP account will
depend on how much they have contributed to the company’s account during
their working years and the earnings on those contributions. But, it's important to
remember the TSP is for long-term retirement savings. There are penalties for
early withdrawals. So if the employees look for short-term savings, consider they
must consider the Government Savings Bonds. They are a convenient way to
help save for homes, education, automobiles, or vacations.
Leave without pay is a temporary non-pay status and absence from duty that, in
most cases, is granted at the employee's request. In EFU Life these instances
for granting leave without is a matter of supervisory discretion and may be limited
by organization’s internal policy. Employees, however, have as many as they
want however at the time of appraisal this is been considered and in case it
exceed the acceptable amount of leaves it work as negative point for the
employee.
of papers they had surrounding departments. Therefore, there arises a need for a
scanner’s job which might get redundant in years to come.
The management trainee of EFU starts by getting a minimum salary which
happens to be Rs. 6000 based on price floor set by the government and also
according to market surveys under taken by the company. However, it increases
within the minimum and maximum range when the employee witnesses vertical
growth within the hierarchy and still the salary paid in terms of the percentile
generated is up to 60% higher.
EFU Life does not operate in a bureaucratic environment as they feel it would
hinder the performance of employees throughout, rather it is a decentralized
environment in which everybody’s is invested with the power to take decisions
and feel respected, therefore, the company treats each and everyone as an
asset whether it is a management trainee or the board of directors.
In the wake of all these capabilities, EFU is the fastest growing life insurance
company locally even though it has been sixteen years since their
commencement. This has made them capable of getting various awards
including, The 25th Corporate Excellence Award 2008 and is one of the 25
companies listed in the stock exchange.
Lastly, the HR department has nothing to do with salaries as it is for talent
management and HR management only, thus, salaries negotiation and approval
is dependent on the department heads only.
It says that provident fund is made up of three major factors of contribution which
holds, employees, employers’ and earning on investments. If an employee
doesn’t get retired but he/she resigns the job then how much ever the amount all
the accumulated amount of provident fund is rewarded to the employee.
As far as, Gratuity Fund is considered it is the additional benefit to salary which is
not made by the contribution of the employee’s salary but only by the contribution
of organization. Every month an assigned percentage of its salary, which is
8.33% in case of EFU Life is contributed.
The benefits and their value increases with every higher designation in the
hierarchy and this is based on the performance of each employee; higher the
productivity, greater the benefits employees can reap.
EFU assures all of its employees by making different life and health insurance
plans available to the employees. An employee at a higher level can be covered
with an insurance plan of higher value. This gives a sense of security to the
families of these employees as well through these insurance plans.
Cars
Following are the vehicles provided by the company at different levels:
Sales Person No vehicle, own transport
The vehicles are totally maintained by the company. All the vehicles are
surveyed and checked for any faults on a regular basis, thus providing its
employees a safe drive. Moreover, all of the vehicles are insured by EFU itself.
Petrol allowance
Sales Person No petrol allowance
Business Health- Low
Development Petrol- Rs1000-3000 per month
Manager(BDM),
Executive
Development
Manager(EDM)
Branch Petrol-Rs.5000-8000
Manager(BM)
The fuel expenses are given to all the employees at the different levels. The
amount of fuel provided to each one depends on which level the employee
stands on. An employee at a higher level receives greater compensation for fuel
as compared to an employee at a lower level.
At the lowest sales level, there is no wage set. Instead they work on a
commission basis which accounts for 40% of the sales they make. On reaching
the target levels set by the organization, a sales person can receive greater
benefits by reaching to higher levels in the hierarchy.
The benefits provided by the company to UM, ABM, BM are quite low. This helps
in giving the employee an advantage to perform and increase its productivity
since it is the main factor that helps in reaping more of the benefits provided by
the company. Moreover, there is a yearly raise in the salary and some of the
benefits. This is done by reviewing the performance levels of the employees
quarterly and evaluating them and hence, increasing the benefits accordingly.
The employees at the senior levels enjoy greater benefits. These benefits are
greater in value. Apart from this, experience of an individual is a crucial factor.
This is because the benefit of different departments also depends on the
experience of the employee, how long the employee has been in the company or
a related field.