Slic paid Rs 2.48 billion to policyholders in first quarter

The State Life Insurance Corporation of Pakistan (Slic) paid Rs 2.48 billion to policyholders in the first quarter of 2011. Addressing a press conference here on Thursday, Slic Chairman Shahid Aziz Siddiqui said the company has started business in the Gulf region and has provided life insurance to over 2,000 Pakistani workers. He added that the company has collected nearly $36 million from the Gulf region.
"Over 90,000 people are working with the state-run insurance company, which facilitates over 8 million people across the country. Our main business is in the rural areas while we have 75 percent of the market share in Pakistan. "We covered 17,655 families and paid Rs 2.48 billion out of which Rs 0.329 billion paid as death claims to 1,702 families and Rs 2.16 billion were paid as maturity claims to 15,953 policy-holders," he maintained.
He said State Life has successfully secured Rs 2.13 billion as first year premium (new business) during the first quarter of 2011, showing an increase of 27 percent while in 2010 the Corporation had secured record first year premium of Rs 9.33 billion, showing an unprecedented increase of 35 percent."
Aziz said that State Life is playing a pivotal role in providing financial protection to millions of families through life insurance, adding that renewal premium also touched Rs 19.54 billion, showing an increase of 28 percent. The marketing force of State Life also extended financial protection to 6,51,460 new families nation-wide during 2010. The State Life Chairman also informed that the Corporation's Life Fund, which is the key indicator of financial stability, has reached Rs 225 billion.
Replying to a question, Shahid Aziz Siddiqui said State Life is planning to launch some new life insurance plans, so that people could invest their small savings in the life insurance policies. The work is also in progress in Bank-assurance and Takaful. He informed that State Life is a very sound and stable financial institution, which is also evident from the fact that it has been assigned "AAA" rating by Pakistan Credit Rating Agency (Pacra). He said State Life in support of government of Pakistan's social programme "Benazir Income Support Programme" has provided Rs 100,000 as group insurance to hundred thousands of families.
Business in the Gulf region also improved and in 2010 the company has procured new premium of around $3.6 million, showing 16.1 percent increase, he added. Replying to a question, Chairman State Life has informed that the Corporation's investment portfolio is also progressing and in 2010, the investment income has reached Rs 27.73 billion, while the target for 2011 is Rs 33 billion. Syed Arshad Ali, Malik Asrar Hussain, Abdul Hafeez Sheikh and Shoaib Mir Memon Executive Directors State Life and senior corporate executives were also present on the occasion.
Syed Arshad Ali, Executive Director Marketing Group and Pensions while presenting the performance of his portfolios informed that the Group's life side in the first quarter of 2011 secured new premium of Rs 965 million while in 2010 it secured Rs 3.955 billion premium from 1294 groups.
He further said that till first quarter 2011 in individual life business; State Life's all four Regions have shown exemplary performance. State Life's Multan, Central, Southern and Northern Regions have shown a record increase of 36.70 percent, 30.81 percent, 17.42 percent and 20.42 percent, respectively.
The Executive Director (Marketing) said that a strategy is being chalked out for the redressal of policyholders' grievances, adding that there is a sharp decline in the complaints. He said payments of claims are being made promptly as per the rules, however claims are delayed only due to the non-submission of necessary policy documents by the policyholders and their beneficiaries while lodging them.
Earlier, Shahid Aziz Siddiqi congratulated the marketing force and top business leaders on securing their business targets in 2010 and stressed that better services be provided to the valued policyholders. Syed Arshad Ali, Executive Director (Marketing) and S H Kazmi, Divisional Head (Marketing) congratulated the delegates of State Life Convention 2011. Shields and awards were given away to the top performers.