20000404

'Govt has no plan

to privatise Slic'

ISLAMABAD: The life fund of the State Life Insurance Company (Slic) stood to Rs. 62 billion and the investment portfolio at Rs. 64.239 billion as on December 31, 1999.

In addition to these great statistics, strength and financial stability a large network of real estate makes it certain that the buzz word 'privatisation' is a misfit to State Life as there is "no government plan for its privatisation," said Chairman Slic Dr Najib Samie.

In an interview here, he said he was determined to take the Corporation to new heights of success, by virtue of enhancing profitability in all the corporate portfolio through prudent investment policies, providing quality services to the valued policy-holders making real estate at viable means for generating funds, ensuring optimum productivity of employees curtailing unproductive expenses.

"We welcome healthy competition in life insurance industry in Pakistan and with Alico, Metro Life and EFU Life joining the fray, State Life is now ready to meet the challenges in business by providing financial protection to the general public and offering them a wide-range of products, plans and policies ensuring quality service to policy holders," he stated.

Answering a question Dr. Samie said by the Grace of God, Slic is doing well in terms of profitability ÑÊit distributes 97.5 percent to its policy holders, while it pays 2.5 percent to the government in the form of taxes. The Corporation has a history of contributing to economic development by investing heavily in government securities, equities, and prudently financing the long-term investment plans of the government.

About investment income, he said from Rs. 5.9 billion in 1997, it reached Rs. 6 billion in 1998 and to Rs. 8.2 billion in 1999, showing an increase of 36.7 percent over 1998. Investment income during 1998 remained at level of 1997 mainly due to diminution in value of equities as a result of stock market fluctuation.

To another question, he said State Life offers conversion option of dollar and dirham policies into Pak rupee. This option can be exercised by policy-holders on return to Pakistan and can enjoy benefits of life insurance protection in Pak rupee.

He said newly-launched 'Wealth Builder Plan', has exclusively been designed to cater to needs of the countrymen. The premium payment term of this policy is seven years only whereas the policy remains enforce up to 20 years without paying further premiums. In addition, the policy also participates Slic's surplus till its maturity.

Dr. Samie said the Corporation recently entered into an agreement with Warba Insurance Company, Sak Ltd., Kuwait, "We have also reactivated our operation in Saudi Arabia and experienced sales managers from Pakistan have been sent to both countries," he added.ÑPPI