GOVERNMENT OF SINDH

DIRECTORATE OF LABOR
SOUTH DIVISION KARACHI
&
PICIC INSURANCE LIMITED UNDER DIRECTORATE OF LABOR

Directorate of Labour Sindh was established on 01.07.1970. Labor Department is

responsible to promote industrialization and industrial peace as well as observance of
labor laws and rules. This department is headed by Amir Nawab Khan-Minister and
Alam Din Bullo- Secretary.

It is mandated to promote investment and employment in the province. It is also

responsible for the welfare of working labor force and enhancement of its capacity
through training and development.

Initially, the Directorate comprised of the Weights & Measures, the Manpower and
Training, the Inspectorate of Mines, the Mines Welfare Organization, the Dock Labour
Safety and the Workers Welfare Board.

In the year 1978, the Weights and Measures Wing was taken away from the Directorate
of Labour and it was merged with the Bureau of Supply & Prices.

In the year 1980, the Directorate of Labour was further bifurcated and it was left with
Labour and Dock Labour Safety only.

FUNCTIONS OF DIRECTORATE OF LABOR:

In order to achieve the objectives, the Directorate of Labor performs the following
functions

• Registration of Trade Unions and other allied matters.

• Determination of collective Bargaining Agents and holding of Referendums.
• Settlement of Industrial Disputes.

Enforcement of Labour Laws relating to Factories, Shops, Commercial and Industrial

Establishments.
ORGANOGRAM OF DIRECTORATE OF LABOR:

SANCTIONED STRENGTH OF DIRECTORATE OF LABOR:

S.No Name of post with BPS. Sanctioned Strength.
01. Presiding Officer.(BPS-21) 01-
02. Superintendent.(BPS-16) 01-
03. Assistant-Cum-Accountant.(BPS-14) 01-
04. Stenographer.(BPS-12) 01-
05. Reader.(BPS-10) 01-
06. Junior Clerk.(BPS-07) 02-
07. Driver.(BPS-05) 01-
08. Qasid / Daftri.(BPS-03) 01-
09. Naib Qasid.(BPS-02) 02-
10. Process server / Bailiff.(BPS-02) 02-
11. Chowkidar.(BPS-02) 01-
12. Sanitary worker / Sweeper.(BPS-02) 01-
Total Staff 15
CONTENTS OF DIRECTORATES OF LABOR:

• To adjudicate the cases of workers / workmen under various provisions of Labor

Laws, regarding their re-instatement and any other grievance pertaining to them.
• To maintain the personal record of all the employees and other correspondence
record in proper way.
• Accounts work viz: preparation of Pay bills, to maintain expenditure registers, to
do reconciliation of accounts with concerned District Accounts Office and other
related record is to be made.
• To prepare the case files properly and keep date wise for regular hearing.
• To maintain the institution, disposal registers of regular cases and in word-out
word registers.
• Issuance of Notices summons and warrants to the parties during trial of cases.

PICIC

Pakistan Industrial Credit and Investment Corporation (PICIC) is one of the first
Development finance institutions established with the World Bank Group assistance in
1957 in Pakistan. Since then, it has been actively playing its due role towards economic
development of the country.

PICIC is primarily engaged in catering to the financial needs of large and medium size
industrial projects in the private sector. This assistance is provided within the framework
of the industries which are covered under the Industrial Investment Schedules issued by
the Government of Pakistan from time to time.

To further broaden its scope of financial services, and with a view to provide all financial
services to its customers under one roof , PICIC acquired Gulf Commercial Bank (Ltd),
in early 2001. The bank was renamed as PICIC Commercial Bank (Ltd).

In 2007, PICIC Commercial Bank was bought by Singapore's NIB Bank. PICIC has its
subsidiaries like

• PICIC Commercial Bank

• PICIC Assets Management Company
• PICIC Insurance
 PICIC INSURANCE LIMITED (PIL)

Here we are discussing PICIC Insurance Limited (PIL) and its policies under Directorate
of Labor. PICIC Insurance Limited writes all classes of general insurance business. It
commenced operations in September 2004 with a paid up capital of Rs.200 million. In
two short years it has succeeded in establishing ourselves as one of the frontline general
insurance companies in the market.

PICIC Insurance emerged as the leading insurance and risk management organization in
Pakistan. It is in the business of providing solutions to mitigate insurable risk espouser or
its clients. It had made its strategies on the basis of through risk evaluation and product
knowledge.

Picic Insurance shall fully satisfy the needs and exceptions of all its stakeholders:

• It will put the interest of our clients first and ensure that they make informed
decisions with respect to the products and services that we offer them.
• It will our employees a congenial work environment and shall give them
opportunities for personal growth and development strictly on the basis of merit.
• It will strive to continually provide above average returns to our shareholders.
• It will support the development of the communities in which we live and work.

PICIC Insurance is catering to its major products and services with excellence. Following
are its products and services

 BUSINESS SOLUTION:

• Fire & Allied Perils

• Consequential Loss under Fire & Allied Perils
• All Risks
• Electronic Equipment
• Money
• Indidelity
• Machinery Breakdown
• Marine/Inland Transit
• Motor.
  PROJECT SOLUTIONS

• Contractors' All Risks

• Contractors' Plant and Machinery
• Erection All Risks
• Advanced Loss of Profits following CAR/EAR and the Marine Import of Project
Equipment.
• Bonds

 LIABILITY SOLUTIONS

All business and other enterprises are exposed to the risk of being held liable for loss or
damage caused to others in the normal course of their operations. At PICIC Insurance
Limited we can provide you the following liability covers:

• Third Party/Public Liability

• Employer's Liability/Workmen's Compensation
• Professional Indemnity
• Product Liability

 PRESONAL SOLUTIONS
• Motor
• Home
• Individual Personal Accident
• Travel

 RISK MANAGEMENT SOLUTIONS

Certain risks are inherent in every business. The identification and minimization of risk is
a science in itself. This is an area where our staff are trained and experienced. We can
help you to identify and minimize your exposure to risks such as fire, machinery
breakdown, theft, computer crime, infidelity of employees, etc. In this way we would be
in a position to offer you the best possible rates for insurance creating a win-win situation
for all stakeholders.
REGULATION OF INSURANCE

The business of insurance in Pakistan has been regulated under the Insurance Act, 1938.
In order to implement and administer the provisions of the aforesaid Act, the Government
established the Department of Insurance, in April 1948, as a department of the Ministry
of Commerce, headed by a Controller of Insurance. Until eventual implementation of the
new law of insurance, namely, Insurance Ordinance, 2000 which has only recently been
enacted, the insurance industry has continued to be regulated by the Controller of
Insurance.

While formulating the program for reform of the Insurance Industry, the Government
considered two options: either set up a body exclusively for regulation of the Insurance
Industry or vest the Commission with the necessary regulatory authority. It was finally
decided that the Commission should be assigned the responsibility of regulating the
Insurance Industry. As a consequence, the duty of administering the insurance law was
passed on to this Commission in August 1999.

This policy decision of the Government was ratified by the Insurance Ordinance, 2000,
which has replaced the Insurance Act, 1938.In view of the above decision and
requirement of law, Insurance Division has been incorporated in the Corporate Plan of
the Commission. As this Division was not in existence during the period under review, its
performance would be reflected in the next report of the Commission. However, its main
functions would be as under:

• Registration and regulation of insurance companies;

• Examination of several matters including annual accounts, actuarial reports, solvency
margins to be maintained by insurance companies, re-insurance arrangements, level of
management expenses, premium rates and terms and conditions of policies of insurance
companies;
• Investigation into the affairs of insurance companies and issuance of directives under
the Law;
• Inspection of the record of the companies and insurance intermediaries;
• Approvals and permissions under the powers conferred under the Insurance Law; and
• Appointment of administrators to replace board of directors and to make applications to
the Courts for winding up.
INSURANCE POLICIES UNDER DIRECTORATE OF LABOR AND
SUGGESTIONS FOR PICIC INSURANCE:

The President of Pakistan had promulgated the Insurance Ordinance, 2000 on 19th
August 2000 repealing the Insurance Act 1938. The objectives of this ordinance are said
to be:

* To regulate the business of the Insurance industry.

* To ensure the protection of the interest of insurance policyholders.
* To promote sound development of the insurance industry.

The new ordinance has divided life insurance business and non life insurance business
into following classes:

LIFE INSURANCE BUSINESS:

1. Ordinary Life Business.

2. Capital Redemption Business.
3. Pension Fund Business.
4. Accident and Health Business.

NON-LIFE INSURANCE BUSINESS:

1. Fire and Property Damage Business.

2. Marine, Aviation and Transport Business.
3. Motor Third Party Compulsory Business.
4. Liability Business.
5. Worker’s Compensation Business.
6. Credit and Surety-ship Business.
7. Accident and Health Business.
8. Agriculture Insurance including Corp, Insurance.
9. Miscellaneous Business.
INSURANCE ORDINANCE, 2000:
PART I PRELIMINARY
1. Division of insurance business into life and non-life
2. Classes of life and non-life business

PART II PROVISIONS APPLICABLE TO INSURERS

3. Persons eligible to transact insurance business
4. Registration of insurers
5. Commission may register insurer upon satisfaction

As the PICIC Insurance Limited is dealing with the non-life insurance or general
insurance policies so following are sections only for non-life insurance:

Division of insurance business into life and non-life:-

4. Notwithstanding anything in this Ordinance to the contrary, the effecting and carrying
out of a contract that provides for the payment of money on the death of a person shall
not constitute the carrying on of life insurance if the contract is effected and carried out by
an insurer who is registered to carry on non-life insurance business; and both of the
following conditions exist:

a) by the terms of the contract, the duration of the contract is to be not more than one
year; and
b) payment is only to be made in the event of death by accident.

6. All contracts of insurance which are not, in accordance with the provisions of the
foregoing sub-sections, classified as life insurance contracts, shall be classified as non-life
insurance contracts.

Classes of life and non-life business.-

For the purposes of this Ordinance, the following shall be the classes of business into
which non-life insurance business is divided:

(a) For direct and facultative reinsurance business;

(i) Class 1 being fire and property damage business;
(ii) Class 2 being marine, aviation and transport business;
(iii) Class 3 being motor third party compulsory business;
(iv) Class 4 being liability business;
(v) Class 5 being workers' compensation business;
(vi) Class 6 being credit and surety ship business;
(vii) Class 7 being accident and health business; and
(viii) Class 8 being agriculture insurance including crop insurance;
(ix) Class 9 being miscellaneous business;

(b) For treaty reinsurance business:

(i) Class 9 being proportional treaty business; and
(ii) Class 10 being non-proportional treaty business.

SUGGESTIONS FOR PICIC INSURANCE LIMITED:

The economic activities will obviously generate business for insurance companies. To
meet the future requirements of the country the following suggestions are made:

* The Insurance Ordinance 2000 should be implemented completely. For this purpose the
new Insurance Rules and Regulations should be finalized and enforced through out the
PICIC network.

* New reinsurance policies should be formulated in the company to increase the capacity
for increasing more business opportunities.

* Establishing R&D division under the policies of Insurance Association of Pakistan

(IAP) to carry out the Research and Development work in PICIC Insurance Limited.

* To provide sound and prudent management for clients, technically qualified and
professional people should be employed.

* The surveyors having technical qualification should only be allowed to join this
profession so that quality work could be provided the limit for settlement of claims.

* The PICIC Insurance Limited should jointly create awareness among general public
about the essential requirement of insurance in the day-to-day life of each individual and
business houses.