4. INTRODUCTION Of
EFU-GENERAL INSURANCE
EFU General Insurance company was Formed in
1932. EFU gave the emerging insurance industry the
Leadership, the Manpower and the Drive needed to
grow in a situation, where at one time three fourth
of insurance was held by foreign companies.
6. 1932 “Our Beginning”
In Kolkata (Calcutta) the Eastern Federal
Union Insurance Company was
established with financial assistance
from the Aga Khan and the Nawab of
Bhopal.
1947 “Pakistan Our New Home”
On the birth of Pakistan EFU
rapidly established itself as a
progressive and innovative
insurer.
7. 1961 “Father of Insurance”
EFU had become the flag bearer of Pakistan's insurance
industry on the world stage, and the largest life company in
Afro-Asian countries (excluding Japan) under the leadership
of (Late) Mr. Roshen Ali Bhimjee.
1982 “Golden Jubilee Year”
EFU celebrated its Golden Jubilee in 1982 - a memorable
event in the history of Pakistan's insurance industry.
1990 “A Billion Rupee Company”
EFU General became a Billion Rupee Company under the
leadership of Mr. Saifuddin N. Zoomkawala, Managing
Director & Chief Executive, a highly talented leader with
international experience.
8. 1992 “EFU Life Launched”
The Life Industry was opened to private sector
and EFU Life was born in 1992.
1996 “EFU House Lahore”
The EFU House designed by the famous architect Mr
NAYYAR ALI DADA was built giving a new look to
Lahore’s historic skyline.
2000 “Pakistan's First Specialized Health
Insurer”
Pakistan’s first specialized health insurance company ,
ALLIANZ EFU was established at a joint venture with
Allianz AG of Germany.
9. 2001 “EFU Story – Chronicled”
Two books namely “ROSHAN ALI BHIMJEE” between
tears and laughter and “THE EFU SAGA” were
launched.
2005 “A Billion Rupee Branches”
Two Branches “CENTRAL AND SITE
DIVISIONS” became billion rupee
branches.
2002 “EFU House, Karachi”
KARACHI’S HISTORICAL LANDMARK, Qamar house was
acquired to symbolize EFU group’s foundation and from
now on will be known as EFU House.
10. 2007 “EFU 75 Years”
The largest insurance group proudly celebrates 75 years of
committed excellence.
2008 “Corporate Excellence Award”
EFU was the recipient of 24th corporate excellence
award by Management Association of
Pakistan.
2011 “Bancassurance and Co-Brand
Credit Card Launched”
EFU Life and Askari Bank launched bancassurance
and co-brand credit card.
11. “Our vision is to be the first choice company for our
customer, shareholders and employees.
To achieve this we will be driven by an obsession to
be better than the best in a continuous journey, not a
destination.”
12. We will manage our affairs through modern technology,
collective wisdom and institutionalized leadership. We
will be a respected, cultured and an educated company
with a strong market position. Together with our
customers, reinsurers and employees, we will achieve
world class quality standards through continuous quality
improvement.
We will do good business, with good clients and of the
highest integrity. We will not compromise our principles
and we will like to be known as a responsible corporate
citizen aware of our obligation to the Government and
the society we serve.
21. Total Premium income of
the EFU Group in 2011
PKR 14.5Billion
Largest
Private
Sector Life
Company
Largest General
Insurance
Company
First
Specialized
Health
Insurance
Company
22. • AVIATION
• BOND
• MARINE
• MISCELLANEOUS
• MOTOR
• ENGINEERING
• Fire
• PROPERTY
• Risk Management
PODUCTS AND SERVICES
23.
24. aviation:
failure of a component
manufactured by a small
company may result in the loss
of a fully loaded airliner.
such catastrophic loss may arise
it is normal for aviation risks to
be excluded from many kinds of
general insurance policy.
25. BUYERS OF AVIATION INSURANCE
Commercial Aircraft Operators
Corporate and Business Aircraft Operators
Aerial Work and Air Taxi Operators
Private Owners and Flying Clubs
Air-Craft Manufacturers
Owners and Operators of Air-Ports, Hangers
Aircrew
Passengers
Shippers of Goods by Air
Lessors (Banks, Financial Institutions)
Hang Gliders
Conventional Gliders, Balloons and Hovercraft
26. TYPES OF COVERS OFFERE:
1. Aviation Hull All Risk
2. Hull War and Hijacking
3. Spare Engines& Spare All Risk
4. Legal Liability to Passengers
5. Legal Liability to Third Parties
6. Legal Liability to Cargo
7. Legal Liability to Mail
8. Comprehensive Gen. Liability
9. Loss of License
10.Personal Accident
28. Bond
A bond is not a policy of
insurance but is in effect a
form of financial guarantee.
It is a guarantee by one party
(the surety or guarantor) to
another party (the body
requesting the bond) that a
third party (the company
requiring the bond) will meet
its contractual obligations.
29. Advantage:
1. Charges on company assets are not generally requested
2. No reduction upon the company's borrowing facility will
be imposed.
Requirment for bond insurance:
1. Three years financial audited account for the applicant
company
2. Three years consolidated audited account for the ultimate
holding / parent company in addition to the above if the
company is owned by another company
3. Full details of the circumstances in which the bond is
required, including a copy of the bond wording and the
bond amount
30. Types of Bond Offered:
• Bid Bond
• Performance Guarantee
Bond
• Mobilization Advance Bond
• Retention Money Bond
• Excise Bond
• Supply Bond
33. 1)Marine Cargo:
"Marine Insurance is said to be Mother of all Insurances”.
In Marine Insurance coverage is provided for goods in
transit for both Import and Export and the mode of
conveyances on waterways (sea), air and land routes.
• Import The goods are covered from warehouse to
warehouse the contract is usually on C&F (Cost &
Freight) and CIF (Cost, Insurance & Freight) basis.
• Export The contracts can be CIF (Cost, Insurance &
Freight) and FOB (Freight On Board) basis
• . Inland Transit The goods are covered from
anywhere in Pakistan to anywhere in Pakistan.
34. 2)MarineHull:
EFU General Insurance offers different types of risks coverage
for the hull (structure) of Vessels and aircrafts as bellow:
Construction Risks:
During the period of the construction of a vessel, it may be
insured with an insurance company familiar with handling of
such insurance. Due to the fact that a Ship-owner's Yard is
essentially a static, non-marine risk, it is possible that basically
non-marine insurer will take on the risk of covering a vessel
while it is under construction, but generally it is unsatisfactory.
35. Period of Insurance:
The customary practice is to affect Hull policies for a
period of 12 months. The clauses contain, however,
the "Continuation Clause" which provides that if at the
expiration of the policy the vessel is at sea, or in
distress, or at a port of refuge or of Call, the vessel
shall, provided previous notice is given to the
underwriters, be held covered at a pro-rata monthly
premium to her port of destination.
36. Additional Insurance:
Additional covers are also provided by EFU which are not
included in standard policy.
Institute War and Strike Clauses — Hulls — Time
Institute Time Clauses — Hulls: disbursements and
increased value (total loss only, including excess liabilities)
Protection and Indemnity Associations
Liabilities in respect of Seamen
Liabilities in respect of Passengers
Liabilities in respect of Third Parties
Liabilities arising from Collisions
Liabilities arising from Pollution
Liabilities arising from Wreck Removal
General Average
37. Other Risks:
o Group Personal Accident
o Personal Accident cover for individual persons
o Family Package gives a discount when the whole family
buys one policy
o This policy will provide compensation in the event of
Death, Permanent Disability or Temporary Disability due
to an Accident. Coverage is worldwide. We can add extra
coverage that will pay for medical expenses resulting
from an Accident.
39. Motor
EFU offers insurance protection with wide variety of
variations and combinations meeting the insurance need
of our clients, a few of MOTOR PRODUCTS are:
• Private Vehicle
• Commercial vehicle
40. 1)Comprehensive Insurance:
This is the widest form of cover, our client is protected against
financial losses of all kinds, accidental loss to vehicle.
2)Third Party Motor Vehicle Insurance:
Our client is protected against all financial losses due to
accidental damage liability of all forms to third party, property
damage or bodily injury, death or both
3)Act only Liability Insurance:
The cover meets the minimum legal insurance requirement. It
offers protection against financial losses due to liability of
accidental bodily injury or death to third party.
41. Extra benefits:
Family Accidental Benefit Cover
Accidental Death Cover for Salaried
Driver:
Protection of Loan Amount for
Financial Institutions:
Personal Accident Benefit Cover for
Passengers:
20% Discount in Premium on
Installation of Trakker Device
43. Property insurance:
EFU covers both medium and large industrial and
commercial risks relating to property, including energy
complexes.
Combined Policy:
A combined policy is one where separate sections are
brought together to create a policy which is specific to
the needs of the organization insuring.
44. Package Policy:
The package policy contains a number of
different sections e.g. fire, accidental
damage, glass, theft, third party liability,
employers liability…….
45. Single Policy:
The single policy on the other hand is one where only one
type of cover is provided such as fire policy or a theft
policy; single policies are however, becoming rarer since
the combined policy can be adapted to suit most needs of
an organization. Property Insurance is further divided into
two segments as:
Fire
Engineering.
47. Fire insurANCE:
EFU Insurance writes a portfolio comprising a broad spread
of quality business relating to industrial, commercial and
service activities, including transportation, oil production,
manufacturing, engineering, banking, and other
miscellaneous services. The business written ranges from
simple commercial property risks to the largest and most
sophisticated industrial and energy risks.
48. Perils in Standard Fire Policy:
The Standard Fire policy can be issued with allied perils such as: -
1) Riot and Strike Damage:
EFU will indemnify the policyholder’s loss arising out
from such kind of situation. The Riot and Strike cover
exclude the damages of war, invasion, act of foreign
enemy, hostilities or warlike operations civil war, Mutiny
and civil commotion.
49. 2) Riot and Fire Damage:
The act of any person or persons taking part together
with others in any disturbance of the public place
whether in connection with a strike causing loss or
damage to the property by Fire directly.
50. 3) Atmospheric Disturbance:
The risk of Atmospheric Disturbance can also be
added in Fire Insurance policy. The risks of
atmospheric disturbance provide the protection
against the damages of Hail, Snow, Wind, Hurricane,
Cyclone, Tornado.
51. 5) Explosion:
Loss or damage to the property insured under the
risk of Fire or otherwise directly caused by
explosion.
6) Earthquake:
EFU gives cover for both fire and shock damage
caused by earthquake. If required either can be
insured on its own, at a lower premium.
52. 7) Terrorism:
The use of violence for political ends and includes
any use of violence for the purpose of putting the
public or any section of public in fear causing
damages properties and lives of human by making
explosions or otherwise directly caused by an act
of terrorism committed by a person.
53. 8) Burglary Insurance:
Any property belonging to a business or
house held stolen from the business
premises or from the house, In such cases
the matter must be reported to the police
in writing and after entry of the report the
insured must obtain a certified copy of F.I.R.
from the concerned police station.
55. ENGINEERING
1) Eraction All Risk Insurance:
Erection All Risk Insurance offers comprehensive and
adequate protection during the period and stages of
erection of the machinery, plant and steel structures
56. 2) Contractor All Risk Insurance:
Contractor All Risks Insurance offers comprehensive and
adequate protection against loss or damage in respect to
contract works of civil engineering projects, construction
plant and equipment and construction machinery as well
as third party claims in respect of property damage or
bodily injury
57. 3) Contractor Plant and Machinery Insurance:
This policy is developed for the contractors. It offers
comprehensive insurance to contractor's plant and
machinery on an annual basis. It offers loss or damage
occurring at work, at rest or during maintenance
4) Machinery Loss of Profit (MLOP) Insurance:
This policy provides cover for actual loss of gross profit
sustained as a result of a business interruption caused
by an accident indemnifiable under machinery
insurance.
58. 5) Boiler and Pressure Vessel Insurance (Machinery):
Boiler is an integral part of many plants. Boiler is a device which
produces steam under high pressure and temperature. Boiler is
an expensive equipment and always contain risk of explosion
and collapse. Boiler explosion not only destroy the boiler itself
but cause catastrophic damage to surrounding property and
machines
6) Electronics Equipment Insurance:
EEI is today a common policy for high valuable electronic
equipment. The term electronic equipment comprises all
electrical systems
Electronic data processing ( EDP ) equipment
Electrical and radiation equipment for medical use
Communication facilities
59. 7) Comprehensive Machinery Insurance Policy:
Power and steel plants, paper, cement factories, sugar
mills or other industry with a high exposure to
machinery damage but a lower exposure to fire,
explosion and natural hazards are insured under this
policy
8) Comprehensive Project Insurance Policy:
The Comprehensive Project Insurance policy is
applicable to erection and construction projects, but it
is particularly relevant to risks such as hydroelectric
plants which involve both construction works and
machinery erection
61. 1)Workman’s Compensation Insurance:
The Workmen's Compensation Act provides no-fault
benefits in the event of death or injury to a 'Workman'
(normally with an income of less than PKRS 3,000 per
month) due to an accident at work
2) Traveler’s Accident and Hospitalizations
(Sickness) Insurance:
When someone travels to another country, he may find
himself in financial trouble in the event that he suddenly
falls ill or incurs hospitalization expenses due to unexpected
sickness or an accident.
62. 3) Liability Insurance:
Public Liability Insurance
Product Liability Insurance
Employer's Liability Insurance
General Professional
Indemnity:
63. 4) Money Insurance:
Cash in Transit / Cash in Safe Insurance
A business may be robbed of cash either during normal business
hours or after normal business hours. Money may be stolen whilst in
transit between the bank and the office or on any other route. Our
Cash in Transit, Cash in Safe and Cash in Drawers policy will
compensate the business for such loss.
5) Plate Glass Insurance:
. This applies particularly to retail shops, department stores,
showrooms, etc. where shop fronts and window displays play an
important role in attracting business. The Glass Policy may be extended
to cover special types of glass which are very expensive to replace such
as silvered, wired, ornamental, stained, lettered, toughened and
armoured glass
64.
65. Risk Management:
Risk Management is the combination
of the two words, “Risk” and “Management”.
The word “Risk” is defined in many
ways as:
“Risk” is the possibility of an
unfortunate occurrence.
“Risk” is a combination of hazards.
“Risk” is unpredictability – the tendency that actual results
may differ from predicted results.
“Risk” is uncertainty of loss.
“Risk” is the possibility of loss.
66. “Management” is the
common term which means
“handling”.
So we say that the “Risk
Management” is the
process to best handle
uncertainty about whether
losses will occur”.
67. Risk Management process is a process
of four logical steps as:
1. Identifying and Analyzing Loss
Exposures
2. Examining the feasibility of
alternatives
3. Selecting the techniques
4. Monitoring Results
68. Does EFU also offer risk management
training?
Depending upon the request, we hold specific risk
management seminars for our business partners. After
an introduction to the theory of risk management, the
practical side is demonstrated by means of a case
study. The participants then have a chance to make risk
management decisions and to analyze these in the
course of workshops.
69. What do EFU's services cost?
These highly individual services exceed the scope of what we
normally offer our clients and therefore cannot be provided
free of charge. However, at EFU we charge you nothing.
70. Whom do you approach for risk management services?
The "Risk Management" Central Office of EFU: Head
Office - will be glad to receive your orders. It is
responsible for coordinating and supervising the work
that will be done on your behalf. This concentration of
activities in one central office is of great advantage to
you. Our branches with which you have dealt previously
will also be pleased to help in passing on your requests to
our risk management specialists.
71. What happens if the concrete Risk Management analysis
indicates the need for coverage that is not normally
available on the market?
We work together with you to try to find a viable solution.
Provided that the risk does not exceed the borders of what
can be considered insurable and provided that sufficient
capacity is available, we are prepared to offer insurance for
difficult and unconventional forms of cover, assuming of
course that we are able to agree on the premiums and
conditions.
80. Rank Insurance Company Premium.
Written
Market Share
1 Adamjee Insurance 9.38 27%
2 EFU General Insurance 8.96 25%
3 National Insurance CO
Ltd
4.25 12%
4 New Jublee Insurance 3.43 10%
Sub Total 26.02 74%
Others 9.27 26%
General Total 35.29 100%
82. Skilled employees
Technical services
Diversified in nature
Quick claim procedure.
Voluntary review mechanism by professionals of
international repute
Relationship with its main reinsurer, “Munich Re”
83. • Low satisfaction of the
employees
• High rate of premium
• Lack of technical staff
• High turnover rate
85. • Leading competitor
• Brain drain of EFU
• Financial and political instability
• Lack of awareness
• Low rate premium companies
86. RECOMMENDATIONS
Online Claim Services
Websites Regarding to Policies
Mobile Insurance
HR Department
Unique Products
Increase in Product Distribution
Proper Feedback
87. Increase in Salaries
Opportunities about Insurance
New Technology
Insurance through Internet
Management System
RECOMMENDATIONS
88. CONCLUSION
• The significant improvements in terms of its
results in comparison to the previous periods
have been in line with the expectations.
• Most of the staff members are young and
energetic
• Innovative products of EFU have capability to
attract more customers but awareness of
these products must be created in the minds
of people at first.
• Teamwork and Joint operation system in that
area may contribute a lot and that’s why they
are influencing the environment.
• Customer satisfaction is the main goal of EFU.
• In a nutshell, the performance of this branch is
satisfactory by and large but still there is a
room for improvement as THE BEST is not an
end of any thing according to my views..
