Pakistan Post Office proposed amendments in rules and regulations for keeping and utilization of Rs 143 billion savings of Postal Life Insurance to generate more revenue and put the institution on sound footing.
The proposal was presented before the National Assembly Standing Committee on Communication on which the committee recommended bringing a comprehensive plan in the next meeting.
An official of Pakistan Post informed the committee that all insurance companies and institutions spend 40 percent of their premium on administration expenditures, while Postal Life Insurance spends 15 percent of the premium on their administration expenditures.
The committee was further informed that in the past around Rs 5 billion per year were disbursed under the head of premium but this increased by 300 percent to Rs 15 billion in 2015-16. The committee was further informed that Postal Life Insurance generated Rs 1520 million revenue in 2016-17.
The National Assembly Standing Committee on Communication met with Muhammad Muzammil Qureshi in the chair where it was briefed on Postal Life Insurance, Pakistan Post Saving Bank and Benazir Income Support Programme (BISP) money order.
The parliamentary panel recommended the Pakistan Post Office for giving more focus to Postal Life Insurance to make it a profitable entity.
The committees further recommended for earmarking 5 to 10 percent of the revenue for advertisement and bringing radical and comprehensive changes to bring it far with the modern world requirements.
The committee was informed that Postal Life Insurance has 3 percent market share while 58 percent is that of State Life Insurance, while others have a total of 39 percent shares. Therefore Postal Life Insurance has a lot of room for improvement and bright future. The committee members stated that in the Pakistani society, Islamic values have been given more importance and keep in mind. The committee was informed that Religious scholars give more preference to Postal Life Insurance over others as their 100 percent shares are government ownership.
It was brought in the notice of the committee that no advertisement campaign of Postal Life Insurance for public awareness is being carried as there is no allocation of funds for this purpose.
The committee recommended for bringing amendments in rules and regulations and earmark 5 to 10 percent of the profit for advertisement campaign.
The committee was further informed that Railways and WAPDA sought applications for groups insurance and Postal Life Insurance presented its services and on the basis of its best performance and services got the opportunity to serve the employees and passengers.
The committee expressed satisfaction over the performance of Postal Life Insurance, but stressed for more efforts as it could earn billions of rupees.
The committee members expressed annoyance over non-arranging visits for them of their respective post offices by postal officers. Director General Pakistan Post said that explanations have been sought from Postal officers for not arranging these visits.