State Life Insurance Corporation of Pakistan (SLIC) has launched a countrywide awareness campaign to educate its policyholders about standard procedures to follow in case of an accidental death of the policy-holder or maturity of their policies, SLIC Chairman Shahid Aziz Siddiqi said on Saturday while addressing a press conference in Bhurban, Murree.
Speaking to The Express Tribune by telephone, Siddiqi said a majority of SLIC policyholders depends on the insurance company’s national agency network for policy-related questions, which can at times result in unnecessary delays when the policy is due.
Traditionally, SLIC takes its best performing workers along with a group of journalists to a hill station every year to mark its annual convention where the SLIC chairman apprises the media of the preceding year’s financial performance of the company.
SLIC’s total premium and investment income for 2012 was Rs89.7 billion, up from Rs75.7 billion in 2011, showing an increase of 18%. Total premium increased from Rs45 billion in 2011 to Rs53.9 billion in 2012, marking a rise of 20%.
About 750,867 new families got coverage during 2012 across the country. The number of individual life policyholders increased from 3.8 million in 2011 to 4.4 million in 2012.
“State Life is one of the few public-sector organisations, which are not a burden on the national exchequer,” he said.
He said SLIC recently signed an agreement with the National Database and Registration Authority (NADRA) to offer life insurance to the holders of NADRA CNIC Smart Cards. Under a two-year contract, NADRA will pay premium on behalf of the cardholders and nominees/next of kin will get the coverage of Rs100,000 in the case of cardholder’s accidental death.
Siddiqi said SLIC received the contract after competing with other insurance companies under public procurement rules whereby the largest life insurance company of Pakistan placed the lowest bid of Rs9 per cardholder annually.
As for bancassurance – distribution of insurance policies through commercial banks – Siddiqi said SLIC is expected to sign a formal agreement with National Bank of Pakistan (NBP). SLIC is already selling insurance policies through United Bank Limited (UBL) throughout the country.
“NBP and UBL are two of the largest banks in the country with a nationwide reach. Our collaboration is likely to increase the number of policyholders,” he said.
Published in The Express Tribune, April 14th, 2013.
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