ISLAMABAD: The Directorate General of Commercial Audit & Evaluation (South) in Karachi in a special study of State Life Insurance Corporation (SLIC) had focused on life and health insurance policies from 2015 to 2017, identified that SLIC’s promotion policy was unbalanced, with too little weight given to qualifications and too much to suitability.
The audit report issued by Auditor General of Pakistan for 2015-17 highlighted the need for justified appointments, renewals, and salary fixations, as well as rational placement of employees in the Finance & Accounts and New Business Departments. There were significant pending dues, and the terms and conditions of life insurance policies need alignment with applicable laws.
The audit aimed to assess recruitment processes, the maturity of life insurance policies, cost analyses of insurance premiums, disbursement mechanisms, insurance claims, and the implementation of business plans, the report said.
SLIC, established on November 1, 1972, operates through 33 zones for individual life business and four zones for group life business. It is engaged in life, health, and accident insurance.
The audit identified several key issues. Policies were issued without proper assessment of the financial creditworthiness of policyholders, and there were unjustified revivals of lapsed, auto-paid and surrendered policies, the report added. Weak internal controls were found in the premium collection mechanism, and management failed to recover insurance premiums and commissions from field channels, it said.
It said that the life insurance premium rates have not been updated since the corporation’s inception. Notably, SLIC partnered with the Ministry of National Health Services Regulation & Coordination in November 2015 to provide healthcare facilities in 42 selected districts under the Prime Minister National Health Insurance Scheme, targeting 3.20 million people. Additionally, the Sehat Sahulat Insurance Scheme was launched to assist those living below the poverty line in Khyber Pakhtunkhwa (KP).
These findings and recommendations highlighted critical areas for improvement within SLIC to enhance its efficiency, financial health, and service delivery to policyholders
