INTERNSHIP REPORT

ON
ASIAN LIFE INSURANCE COMPANY LIMITED
POKHARA BRANCH

Submitted to:
Nepal Tourism and Hotel Management College
Business Management Center
Pokhara University
Gairepatan, Pokhara

Submitted by:
Srijan Ranjit
P.U. Reg. No: 2014-2-45-05
P.U. Roll. No: 15450400

Submitted for the degree of:

Bachelor of Business Administration in Banking and Insurance (BBA-BI)

Pokhara
November 2017

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 ACKNOWLEDGEMENTS

This internship report has been prepared for the partial fulfillment of the requirement
for the degree of Bachelor of Business Administration Banking & Insurance (BBA-
BI) under the faculty of Management, Pokhara University and Nepal. This report
attempts to provide complete information in relation with the insurance procedure of
Asian Life Insurance.

I would like to extend my sincere thanks to Mr. Bhola Adhikari who assisted me in
report writing. All the credit goes to affiliated teachers, friends, ALIC staffs of branch
office & its manager who whole heartedly guided me in report writing. I am grateful
towards my college Nepal Tourism & Hotel Management & ALIC for granting me
necessary stuffs, co-operation & favorable environment to make my report writing
successful.

Finally, I would like to thank branch manager & members of ALIC who treated us as
a family member at insurance during Internship period.

Signature

……………….………..

Srijan Ranjit
Date:

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 TABLE OF CONTENTS

Acknowledgement ii
List of Tables iv
List of Figures v
Abbreviations vi
Executive Summary vii

Chapter-I: INTRODUCTION 1-4

1.1 Background of the Study 1
1.2 Objectives of the Study 2
1.3 Sources and Methodology of Data Collection 2
1.3.1 Primary Data 2
1.3.2 Secondary Data 3
1.3.3 Data Presentation and Analysis 3
1.4 Significance of the Study 3
1.5 Limitations of the Study 4

Chapter -II: ORGANIZATIONAL ANALYSIS 5-21

2.1 Background of the Organization 5
2.2 Mission, Vision and Objectives of the Organization 7
2.3 Product and Services of the Organization 8
2.4 Organizational Structure and its Analysis 13
2.5 SWOT Analysis 15
2.6 Financial Data Analysis 17

Chapter-III: STUDY RESULT 22-24

3.1 Summary 22
3.2 Major Findings 23
3.3 Conclusions 23
Chapter-IV: RECOMMENDATIONS 25-26
4.1 Recommendations to the Organization 25
4.2 Recommendations to the College 26

References

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 LIST OF TABLES
Table Page No.
2.1 Income of ALIC from the Insurance Premium 17
2.2 Investment of ALIC 18
2.3 Sales Policies of ALIC 18
2.4 Working Capital of ALIC 21

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 LIST OF FIGURES
Figure Page No.
2.1 Organizational Structure of Pokhara Branch of ALIC 13

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 LIST OF ABBREVIATIONS

NTHMC : Nepal Tourism and Hotel Management College

BMC : Business Management Centre
BBA-BI : Bachelor in Business Administration- Banking and Insurance
ALIC : Asian Life Insurance
B.S : Bikram Sambat
BOD : Board of Directors
SWOT : Strengths, Weakness, Opportunities and Threats

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 EXECUTIVE SUMMARY

The major objective of the intern is to implement the theoretical knowledge in the
practical field. Beside this, the objectives of the study is to find out the mission, vision
and objectives of ALIC, to know about the products and facilities offered by the
company, to perform SWOT analysis and to analyze the working capital of the
company. Overall the objective of this study is to know about the overview of the
company.

Asian Life Insurance Company is the first life Insurance Company to receive
operating License from Bima Samition 27th February, 2008(Falgun 15, 2064) and
started functioning on 3rd April, 2008(Chaitra21, 2064). The mission of ALIC is to
develop and promote Asian Life Insurance Company as a brand leader in the life
insurance industry of Nepal by offering flawless product and services that exceed
customer satisfaction. Asian Endowment and Whole life, Asian Child Endowment,
Asian Money Back, Pension Plan and Joint Life Insurance are the major products of
the Company. Huge amount of capital investment, effective management system, lack
of skilled manpower, lack of modern technology, etc are the internal forces and
increasing insurance market, awareness among the people about the life insurance,
competition, customer satisfaction, etc are the external forces that affects the business
environment of the company.

This study also concludes that the current ratio and working capital of the company
during the fiscal year 69/70 B.S is 1.95 and Rs.6,00,22,612 respectively which is
considered to be a good for any organization as it has enough resources to clear its
debts and to meet the immediate needs of the company.

The policies sold by the ALIC covers more than 1% Nepalese population with a sale
of 313,468 policies within first 2 years and 3 month of its operation because of
effective products and services that it offered to the customers. Effective management
system and strong market strategy also plays an important role for the success of the
company.

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 CHAPTER I

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

BBA-BI program includes the combination of theoretical and practical knowledge

with the intention to produce professionals in banking and insurance sector. BBA-BI
offers the opportunity to the students to develop their theoretical knowledge through
practical experience on real field. Under their course of Pokhara University , students
of BBA-BI should have their experience on practical field through internship program
in banking and insurance sector. An internship is a work related learning experience
for individuals who wish to develop hands on work experience in a certain
occupational field. It includes 8 weeks practical experience on real field to develop
their practical knowledge along with theoretical knowledge.

The trend of internship has been continued since the establishment of P.U. in the year
1997. It aims to give students the opportunity to realize and understand the real life
business and professional performance and problems on different activities of
financial institution. The internship program gives the student a golden opportunity
for real job experience in any organization by working as a trainee. It also helps
students to develop their future career opportunity and also helps to create a network
of contact which is helpful in future for career development. So, during the intern
period students are focus to implement their theoretical knowledge in a real field of
organization.

As BBA-BI students in order to fulfill the requirement of the course, I was assigned to
work as an intern at Asian Life Insurance Company Limited, Pokhara Branch for the
9 weeks to know about the scope of insurance market in Nepal. During this intern
period I tried my best to implement my theoretical knowledge on real field. I also got
the opportunity to work with the staff of the Asian Life Insurance Company Ltd. that
helps to develop my practical knowledge during the intern period. They guided and
supervised me to expose my theoretical knowledge in the practical field. In these 9

8
weeks I learnt many things related to occupational field which can be applicable for
my future career development.

1.2 OBJECTIVES OF THE STUDY

The general objective of doing internship is for the partial fulfillment of the
requirement for the degree of Bachelor of Business Administration- Banking &
Insurance. The purpose of intern is to give practical and professional knowledge about
the banking and insurance sector to the students that helps them to adopt in business
environment of banking and insurance sector. Besides this there are some specific
objectives and they are mentioned below:

 To determine the mission, visions and objectives of Asian Life Insurance

Company limited.
 To know about the different products and facilities offered by ALIC to its
customers.
 To determine the internal and external forces that affects the business
environment of ALIC by performing SWOT analysis.
 To determine the number of different policies sold by ALIC in current fiscal
year.
 To analyze the working capital& current ratio of the ALIC in current fiscal
year.

1.3 SOURCES AND METHOD OF DATA COLLECTION

There are different methods which can be applied in data collection. A proper and
scientific methodology always helps in collecting the qualitative and quantitative data.
Both primary and secondary sources are used to collect data for the report.

1.3.1 Primary Data Sources

Primary source is the source of data collection where the researcher collects the data
directly. Under primary source following methods are used to collect data:

 Observation
 Interaction with the customers, agents and staffs of the company
 Personal involvement in the activities of the company.

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1.3.2 Secondary Data Sources

Secondary source is the source of data collection where the researcher collects the
data indirectly through different sources rather than primary source. Following
sources are used as secondary sources to collect data:

 Official website of ALIC

 Annual report of ALIC
 Brochure of ALIC
 Other Insurance Document
 Internship report prepared by senior students.

1.4 SIGNIFICANCE OF THE STUDY

The major importance of this study is to provide information about the purpose of
doing internship for the students. It helps to know about the overview of the
organization and also help to know about the products and services offered by ALIC
for its customers and most popular products among the customers. It helps to
determine the internal forces (i.e. strength, weakness) and the external forces (i.e.
opportunity and threat) the continuously affects the business environment of the
ALIC. It also helps to determine the financial position of ALIC & how the company
manages them to be in good position. This study also helps to understand the scope
insurance sector in the Nepalese market. It also helps to develop or improve the
knowledge and skills of the students in research activities. It also helps to develop the
communication skills of the students. Overall this study helps to know about the
ALIC and its contribution towards the Nepalese market and helps to improve different
knowledge and skills of the students.

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1.5 LIMITATIONS OF THE STUDY

Nothing is perfect. Hence everything has certain limitation. Similarly there are also
some limitations in this study even various effort have been made to collect accurate
data and information. They are as follows:

 The internship duration was only of nine weeks so limited information was
collected.
 The study is only about Asian Life Insurance Company limited so it may not
be applicable to other organization of similar nature.
 Though both primary and secondary sources of data have been used in the
report but it lacks adequate information due to some privacy policy of the
company.
 Validity of report also depends on information provided by the concerned
authorities.
 Data from different sources were quite inconsistent which created problem in
making the report.

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 CHAPTER II

ORGANIZATIONAL ANALYSIS

2.1 BACKGROUND OF THE ORGANIZATION

Foreign insurance companies were used to meet the need of insurance in the country
at past.

But the Rastriya Beema Sasthan Pvt. Ltd was established in Poush 1, 2024 B.S to
meet the need of insurance in the country. Under the Rastriya Beema Sansthan Act
2025 B.S, the Insurance Act 2025 B.S was formulated to supervise and regulate the
insurance activities in the country. It made the provision of permission to be taken for
insurance business from Insurance Board. In addition to it, this act made the provision
to register the insurance agent, the provision of the qualification and the cancellation
of the insurers and to claim over the supervisions and the control of the insurance
companies in the country.

Asian Life Insurance Company has got operating license as per Insurance Act 2049
from Bima Samiti on 27th February, 2008(Falgun 15, 2064). After 6 years in Nepalese
Life Insurance Business, Asian Life Insurance Company is the first life Insurance
Company to receive operating license from Bima Samiti.

The authorized capital of the company is Rs. 1000 million. Out of which 521.29
million is currently paid up (70% by the promoter and the remaining 30% by the
general public).

There are 68 promoters of the company: 6 institutional and the remaining 62

individual promoters. Among the institutional promoters, there are reputed finance
and development banks of Nepal. Following are the major institutional promoters:

 Mahalaxmi Finance Limited, Birgunj

 H & B Development Bank Ltd, Kathmandu ( Former Himchuli Bikash Bank
Ltd and Birgunj Finance Limited)
 Malika Development Bank Limited, Dhangadi

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 Guheshwori Merchant Bank and Finance Company Limited, Lalitpur
 Synergy Development Bank, Butwal (Former Butwal Finance Ltd.)

There are 20 branches of Asian Life Insurance Company across the country to
operate life insurance activities or business professionally and systematically to
meet their goal and objectives.

The member of the board of directors and other individual investors are leaders in
other professions and business, such as banks, insurance companies, financial
institutions, private enterprises etc. Some investors are from reputed position
holders of ex-government services.

Since inception, the company has focused on policy holder’s satisfaction. The
company is equipped with modern technology to conduct the insurance business
in a professional manner and is in the position to properly deal with all types of
clients and ready to provide excellent service.

The policies sold by ALIC covers more than 1% Nepalese population with a sale
of 313,468 policies within first 2 years and 3 month of its operation. The company
has a strong presence in its existing markets with a base of more than 40,000
dedicated agents. And hence in fact, the company is one of the leading insurance
companies in the country.

2.1.1 Introduction to Pokhara Branch

Due to the popularity of ALIC with its customer and increasing market scope area
of Asian Life Insurance, the management committee decide to establish another
branch in Pokhara. Pokhara Branch of ALIC was established at 2065/08/28 at
Chipledhunga, Pokhara. Under Pokhara Branch, there are 5 sub-branches at
Damauli, Waling, Parbat, Baglung and myagdi to operate insurance activities in
their respective area. Badri Nath Poudel is the branch manager at Pokhara Branch
who makes plan and decision to regulate insurance activities in these areas under
ALIC. There are 6 members at Pokhara Branch who work as staff in their
respective level. During the short period of time it has established reputation,
publicity and good public relation with its clients among the public in these area
by providing effective products and services to their customers or clients.

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 2.2 MISSION, VISION AND OBJECTIVES OF THE
ORGANIZATION

2.2.1 Mission

The mission of ALIC is to develop and promote Asian Life Insurance Company as
a brand leader in the life insurance industry of Nepal by offering flawless product
and services that exceed customer satisfaction.

2.2.2 Vision

The visions of ALIC are as follows:

 To develop excellent human resources who can contribute to flawless

service.
 To inform and educate every Nepali citizen about the importance of Life
Insurance for their future safety and security and the benefit to their life
and their offspring.
 To promote equality and transparency in both customer service and
company management.

2.2.3 Objectives

The major objectives of ALIC are as follows:

 To make awareness among the people about the importance of life insurance.
 To meet the need of life insurance for the people in the country.
 To provide effective products and services to its customers.
 To conduct the insurance business in a professional manner by utilizing
modern technology.
 To develop and expand information technology to increase the securities and
capability.
 To develop or offer new products and services to the people if required.

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2.3 PRODUCTS AND SERVICES OF THE ORGANIZATION

ALIC provides different types of policies to meet the requirement or need of the
people. The products offered by ALIC to the people are as follows:

2.3.1 Asian Endowment and Whole Life Insurance

 This policy will acquire paid-up value or surrender value

 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 65 years
 Minimum term: 5 years
 Maximum term: 54 years
 Maximum maturity age: 70 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured.
 Premium Paying Mode: Yearly, Half-yearly, Quarterly.

2.3.2 Asian Child Endowment Plan

 Minimum age at entry: 0 years

 Maximum age at entry: 10 years
 Policy term: 18- Age of child at entry
 Maximum maturity age: 18 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: Rs 1,000,000
 Premium paying mode: Yearly, Half-yearly, Quarterly.
 In case of the life assured (Child) dies any time after commencement of
risk, Full SUM ASSURED with the vested Bonuses will be paid.
 In case of the life assured(Child) dies commencement of risk, all the
premiums paid excluding extra premiums

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2.3.3 Asian Limited Payment Endowment
 This policy will acquire paid-up value or surrender value
 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Burden of frequently premium payment at several period of time can be
minimized
 Minimum age at entry: 11 years
 Maximum age at entry: 60 years
 Maximum policy maturity age: 70 years
 Policy term: 5,15,20,25 or 30 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

2.3.4 Pension Plan

 This policy will acquire paid-up value or surrender value

 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 60 years
 Minimum policy maturity age: 40 years
 Minimum term: 5 years
 Maximum term: 54 years
 Maximum policy maturity age: 70 years
 Minimum sum assured: Rs 10,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

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2.3.5 Joint Life Insurance
 This policy will acquire paid-up value or surrender value
 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 18 years ( lower age among husband and wife -16
years)
 Maximum age at entry: 50 years
 Minimum term: 15 years
 Maximum term: 30 years
 Maximum policy maturity age: 65 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

2.3.6 Asian Money Back-12

 This policy will acquire paid-up value or surrender value
 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 58 years
 Term: 12 years
 Maximum maturity age: 70 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

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2.3.7 Asian Money Back-15
 This policy will acquire paid-up value or surrender value
 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 50 years
 Term: 15 years
 Maximum maturity age: 65 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

2.3.8 Asian Money Back-18

 This policy will acquire paid-up value or surrender value
 This policy will be eligible for loan
 This policy will have maturity value
 This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 52 years
 Term: 18 years
 Maximum maturity age: 70 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

2.3.9 Asian Money Back-20

 This policy will acquire paid-up value or surrender value

 This policy will be eligible for loan
 This policy will have maturity value

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  This policy will participate in profits
 Minimum age at entry: 16 years
 Maximum age at entry: 45 years
 Term: 20 years
 Maximum maturity age: 65 years
 Minimum sum assured: Rs 50,000
 Maximum sum assured: According to the financial condition of the life to
be assured
 Premium paying mode: yearly, half-yearly, quarterly

2.3.10 Facilities of ALIC

Every company provides different services and facilities to their employees and
customers. ALIC also provides different services and facilities to its employees,
customers and agents.

The facilities provided by ALIC to its employees are as follows:

 Bonus
 Employee Loan at low interest rate
 Telephone and fuel expenses

The facilities provided by ALIC to its customers are as follows:

 Premium Discount
 Customer Loan
 30 days grace period to clear due premium
 Bonus after the end of the maturity period of the policy

ALIC also provide some facilities to its agent if he/she met the criteria of the
company. These facilities are as follows:

 Agent Bonus
 Agent Loan
 Different Incentives
 Telephone and fuel expenses

These facilities of agent are based on the amount of policies that he/she sold.

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2.4 ORGANIZATIONAL STRUCTURE AND ITS ANALYSIS

2.4.1 Organizational Structure of Pokhara Branch of ALIC

An organizational structure defines how activities such as task allocation,

coordination and supervision are directed towards the achievement of organizational
goals and objectives. It can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment. Organizational
structure allows the expressed allocation of responsibilities for different functions and
processes to different entities such as the branch, department, workgroup and
individual. Organizational structure affects organizational action in big two ways.
First, it provides the foundation on which standard operating procedures and routines
rest. Second, it determines which individuals get to participate in which decision-
making processes, and thus to what extent their views shape the organization’s
actions. The following figure shows the organizational structure of Pokhara Branch of
ALIC:

Branch Manager

Assistant Manager

Operational Department Marketing Department

Agents

Fig 2.1: Organizational Structure of Pokhara Branch ALIC

Above figure shows the organizational structure of Pokhara Branch of ALIC. Mr.
Badri Nath Poudel is the branch manager of ALIC who makes important or valuable
plans and deciding in regarding to operational and marketing to regulate the insurance
activities smoothly and professionally in pokhara and to Sub-Branch area who
operates the insurance activities under Pokhara Branch.

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2.4.2 Board of Directors of ALIC

A Board of Directors is a body of elected or appointed members who jointly oversee

the activities of a company or organization. BOD governs the organization by
establishing different policies and objectives.

There are seven BOD of ALIC and their names are as below:

 Mr. Bijay Kumar Sarawagi (Chairman)

 Mr. Dinesh Lal Shrestha (Director)
 Mr. Shyam sundar Roongta ( Director)
 Mr. Dipak Kumar Shrestha (Director)
 Mr. Sushanta Chachan(Director)
 Mr. Rabi Kumar Gupta(Director)
 Mr. Rajesh Kumar Shrestha( Company Secretary)

2.4.3 Management Team of ALIC

Management team is a group of individual at the highest level of organizational

management who has the day to day responsibilities of managing the company or
organization. It includes Chief Executive Officer, Chief Marketing Manager, Chief
Financial Manger, etc who holds the specific executive power to regulate organization
or a company. The management teams of ALIC are as follows:

 Mr. Rajesh Kumar Shrestha is a Chief Executive Officer of ALIC.

 Mr. Manish Kumar Agrawal is the Assistant General Manager of ALIC.
 Mr. Hom Bahadur Shrestha is a Chief Marketing Manager of ALIC.
 MR. Murari Raj Humagain and Mr. Kishor Dahal are the Divisional Manager
of ALIC.
 Mr. Kamal Dhungana is the senior manager of the ALIC

2.4.4 Staff of Pokhara Branch of ALIC

There are five staffs in pokhara branch of ALIC who helps to operate insurance
activities in this area. Their names are as below:

 Mr. Badri Nath Poudel ( Branch Manager)

 Mr. Tilak Ram lamichhane ( Assistant Manager)

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  Mr. Dambar
 Mr. Aakhil Dhamala
 Mr. Ganesh Dhamala

2.5 SWOT ANALYSIS

2.5.1 SWOT Analysis of Pokhara Branch of ALIC

SWOT refers to strength, weakness, opportunities and threats which are strategic
factors for a company or organization. Strength and weakness are the internal forces
that affect the business environment of a company or organization directly and which
can be control by the organization or company itself. Opportunities and threats are the
external forces that indirectly affect the business environment of the organization or
company and which cannot be control by the organization or company itself. Hence,
SWOT analysis is one of the important steps in formulating a strategy that presents
the information about the external and internal environment in a structured way by
which the key external opportunities and threats can be compared systematically with
internal capabilities and weakness. SWOT analysis is important for any organization
or company because it helps them to adopt in the changing business environment.

Strength, weakness, opportunities and threats of Pokhara Branch of ALIC are

mentioned below:

a. Strength of Pokhara branch of ALIC

Strength of company or organization is the quality or state of being strong in the

competitive market. Strength of the Pokhara Branch of ALIC are given below:

 Huge amount of capital investment.

 Offers different type of products according to the requirement of the
customer.
 Effective management system
 Good customer relationship that plays a important role in its long
operation
 Strong marketing strategy
 Good relation among the staffs

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b. Weakness of Pokhara branch of ALIC

Weakness of a company or organizations a condition of being weak in the

competitive market which is not good for any organization or company in its long
run. The weaknesses of the Pokhara Branch of ALIC are as follows:

 Lack of modern technology to operate insurance activities in the country.

 Lack of sufficient skilled and educated human resources.
 Poor customer care and service.
 Offer similar insurance policies as compare to other life insurance
companies.
 The infrastructure of company is poor. The activities are not operating
systematically because of small area.

c. Opportunities for Pokhara branch of ALIC

Opportunity for a company or an organization is a chance for its advancement or

progress. There are several opportunities for Pokhara Branch of ALIC for its
progress or advancement. They are as follows:

 Adopting modern technology to operate insurance activities more

professionally and systematically.
 Expanding into new geographical so that the more people can get the
facilities.
 Offer new type of products to meet the requirement of the customers.
 Optimum utilization of resources of the company.
 Develop new schemes to attract more customers.

d. Threats for Pokhara branch of ALIC

Threat for any company or organization is the external factors that negatively
affect the organizational goals and operation. There are some threats for the
Pokhara Branch of ALIC that negatively affects its operation and they are as
follows:

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  Increasing competition in the market.
 Frequent changes in the technologies of insurance.
 Poor economic status of the country.
 Unstable government and political condition.
 Customer satisfaction.

2.6 FINANCIAL DATA ANALYSIS OF ALIC

2.6.1 Income of ALIC From Insurance Premium

The following table shows the income from insurance premium of the ALIC during
the fiscal year from 2065 B.S to 2070 B.S.

Table 2.1: Income of ALIC from Insurance Premium

Fiscal Year Net Premium

2065/2066 Rs 46,50,81,557
2066/2067 Rs 82,03,67,839
2067/2068 Rs 93,91,74,048
2068/2069 Rs 1,03,76,10,301
2069/2070 Rs 1,15,23,92,940
Source: Annual Report of ALIC

The table traces out the insurance premium collected by ALIC during different annual
periods. It clearly demonstrates the result in rupees, which is too easy to analyze the
fact. The premium collected is increasing in every annual period. At the initial annual
period of ALIC, the premium collected is just about Rs. 465,081,557, but due to the
growing of insurance company and due to awareness among the people about the
importance of life insurance, it rose double by Rs. 115239294 at the fiscal year
2072/2073. This will even rise in future according to the trend that it shows.

2.6.2 Investment of ALIC

Following table shows the investment of ALIC during the fiscal year 2071/2072 B.S
and 2072/2073 B.S

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Table 2.2: Investment of ALIC

Investment 2072/2073 2071/2072

Short-Term Rs 2,58,60,45,924 Rs 1,66,09,77,249
Long-Term Rs 91,69,19,893 Rs 80,75,02,243
Total Rs 3,50,29,65,817 Rs 2,46,84,79,492
Source: Annual Report, 2072/2073 B.S

The above table shows the total investment made by ALIC during the fiscal year
2071/2072 B.S and 2072/2073 B.S. It clearly demonstrates that the ALIC have
increased its both short-term investment and long-term investment in fiscal year
2072/2073 from previous fiscal year. The total investment in fiscal year 2071/2072
was Rs 2,46,84,79,492 and increased to Rs 3,50,29,65,817 in fiscal year 2072/2073.

2.6.3 Sales Policies of ALIC

The main revenue of the insurance companies will generate from the selling of
policies. So the insurance companies should be able to sale the maximum number of
policies as much as possible to operate insurance activities professionally and to make
the strong existence in the competition market. In the fiscal year 72/73 B.S, ALIC
sold 22441 different policies of Rs 2,80,70,38,000 to its customers. The following
table shows the different policies sold by ALIC during the fiscal year 72/73 B.S

Table 2.3 Sales Policies of ALIC

Types of Policies No. of Policies Percentage

Saodhik Jeevan Beema 7854 35%
Agrim Jeevan Beema 4039 18%
Bal Umanga 3366 15%
Others 7182 32%
Total 22441 100%
Source: Annual Report, 2072/2073 B.S.

Above table shows the number of different policies sold by ALIC during the fiscal
year 2072/2073. From the table, we can conclude that among the total policies, 35%
policies sold by ALIC are Saodhik Jeevan Beema (Asian Endowment and Whole
Life) followed by Agrim Jeevan Beema (Asian Money Bank) 18%, Bal Umanga

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(Asian Child Endowment) 15% respectively. Other policies like Sukhi jeevan Beema,
Bal Saodhik covers the 32% among the total policies sold by ALIC.

2.6.4 Working Capital Analysis of ALIC

a) Current Assets

A current asset is any asset reasonably expected to be sold, consumed or exhausted

through the norm operations of a business within the current fiscal year or operating
cycle. An asset is an economic resource. Anything tangible or intangible that is
capable of being owned or controlled to produce value and that is held to have
positive economic value is considered an asset. Generally current assets include cash,
cash equivalents, short-term investments, account receivables, stock inventory and the
prepaid expenses. The current assets of ALIC in the fiscal year 2072/2073 B.S. is Rs.
12, 27, 24,967.

b) Current Liabilities

Current liabilities are often understood as all liability of the business that is to be
settled in cash within the current fiscal year or the operating cycle of a company or an
organization. A liability is defined as obligation of an entity arising from the past
transaction or events, the settlement of which may result in the transfer or use of
assets, provision of services or other yielding of economic benefits in the future.
Generally current liabilities include account payable and short-term loan. The current
liabilities of ALIC in the fiscal year 2072/2073 are Rs 6, 27, 02,355.

c) Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-
term and long-term obligations. To gauge this ability, the current ratio considers the
current total assets of a company relative to that company’s current total liabilities.
The formula for calculating a company’s current ratio, then, is:

Current Ratio = Current Assets / Current Liabilities

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The current ratio is called “current” because, unlike some other liquidity ratios, it
incorporates all current assets and liabilities. The current ratio is also known as
the working capital ratio.

The current ratio of ALIC in the fiscal year 2072/2073 B.S is 1.95 which is
considered to be a good for any organization or company because it indicated that
firm has enough resources to pay its debt within the running fiscal year and has good
liquidity position.

d) Working Capital

Working capital is a financial metric which represents operating liquidity available to

a business, organization or other entity, including governmental entity. Along with
fixed assets such as plant and equipment, working capital is considered a part of
operating capital. Gross working capital is equal to current assets. Working capital is
calculated as current assets minus current liabilities. If current assets are less than
current liabilities, an entity has a working capital deficiency, also called a working
capital deficit.

A company can be endowed with assets and profitability but short of liquidity if its
assets cannot readily be converted into cash. Positive working capital is required to
ensure that a firm is able to continue its operations and that it has sufficient funds to
satisfy both maturing short-term debt and upcoming operational expenses. The
management of working capital involves managing inventories, accounts receivable
and payable, and cash.

ALIC also has managed its working capital to meet the immediate need of the
company by managing its current assets and current liabilities. The working capital of
the company is in positive so it is able to continue its operation and is able to satisfy
both maturing short-term debt and upcoming operational expenses.

The following table shows the working capital of ALIC during the fiscal year
2071/2072 and 2072/2073 B.S.

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Table 2.4: Working Capital of ALIC

Particulars 2072/2073 B.S 2071/2072 B.S

Current Assets Rs 12,27,24,967 Rs 6,81,34,106
Current Liabilities Rs 6,27,02,355 Rs 3,57,77,695
Working Capital Rs 6,00,22,612 Rs 3,23,56,411
Source: Annual Report 2072/2073 B.S

From the above table we can conclude that the working capital of the company during
the fiscal year 2071/2072 B.S was Rs 3, 23, 56,411 and the company doubles its
working capital during the fiscal year 2072/2073 B.S making the total Rs. 6, 00, and
22,612 which is enough for the company to meet its immediate needs. This indicates
that the company has properly managed its working capital to continue its operation
and to satisfy both maturity short-term debt and upcoming operating expenses.

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 CHAPTER III

STUDY RESULT

3.1 SUMMARY

Asian Life Insurance Company is the first life Insurance Company to receive
operating License from Bima Samiti on 27th February, 2008(Falgun 15, 2064). The
Authorized Capital of the Company is Rs. 1000 million. Out of which 521.29 million
is currently paid up 70% by the promoter and the remaining 30% by the general
public. There are 68 promoters of the company: 6 institutional and the remaining 62
individual promoters. There are 20 branches of Asian Life Insurance Company across
the country to operate the insurance activities professionally and systematically.

Due to the popularity of ALIC with its customer and increasing market scope area of
Asian Life Insurance, the management committee decide to establish another branch
in Pokhara. Pokhara Branch of ALIC was established at 2065/08/28 at Chipledhunga,
Pokhara.

This study was conducted to know about the overview of the Asian Life Insurance
Company Ltd. The objectives of this study is to determine the mission, vision and
objectives of the company, to know about the products and facilities provided by the
company, to determine the number of policies sold by the company during the current
fiscal year, to know the working capital of the company and to perform SWOT
analysis of the company. Bothe Primary sources and secondary sources are used to
collect the data and information for this report.

The mission of ALIC is to develop and promote Asian Life Insurance Company as a
brand leader in the life insurance industry of Nepal by offering flawless product and
services that exceed customer satisfaction. Asian Endowment and Whole life, Asian
Child Endowment, Asian Money Back, Pension Plan and Joint Life Insurance are the
major products of the company. Huge amount of capital investment, effective
management system, lack of skilled manpower, lack of modern technology are the
internal forces and increasing insurance market, awareness among the people about
the life insurance, competition, customer satisfaction are the external forces that
affects the business environment of the company.

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3.2 MAJOR FINDINGS

The major findings of the report are as follows:

 The mission of ALIC is to develop and promote Asian Life Insurance

Company as a brand leader in the life insurance industry of Nepal by offering
flawless product and services that exceed customer satisfaction.
 To inform and educate every Nepali citizen about the importance of Life
insurance, to provide effective products and services to its customers and to
operate the insurance activities professionally & systematically by utilizing
modern technology are the major objectives of the company.
 Asian Endowment and Whole life, Asian Child Endowment, Asian Money
Back, Pension Plan and Joint Life Insurance are the major product of the
company.
 The company sales 22,441 policies during the fiscal year 72/73 B.S and Asian
Endowment and whole life is the popular product among them because it
covered more than 35% of the total sales policies of the company.
 Huge amount of capital investment, effective management system, lack of
skilled manpower, lack of modern technology, etc are the internal forces that
affects the business environment of the company.
 Increasing insurance market, awareness among the people about the life
insurance, competition, customer satisfaction, etc are the external forces that
affect the business environment of the company.
 The current ratio of the company is 1.95 which is considered to be a good for
any company or organization because it indicates that the company can clear
its debt within running fiscal year.
 The working capital of the company is Rs. 6,00,22,612 during the fiscal year
72/73 B.S which is enough to meet the immediate of the company and this
indicates that the company has manage its working capital properly.

3.3 Conclusions

Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange of payment. Life insurance is a contract between an insured and an insurer
where the insurer promises to pay a designated beneficiary a sum of money in

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exchange for a premium upon the death of the insured person. There is a wide scope
of life insurance in the Nepalese market so the ALIC is operating its life insurance
activities in the country since 3rd April 2008.

The main objective of this report is to know about the overview of ALIC. From the
study we can conclude that the mission of ALIC is to develop and promote Asian Life
Insurance Company as a brand leader in the life insurance industry of Nepal by
offering flawless product and services that exceed customer satisfaction. Asian
Endowment and Whole Life, Asian Child Endowment, Asian Money Back, Pension
Plan and Joint Life Insurance are the major products of the Company. Among these
products Asian Endowment and Whole life is popular among the people as it covers
more than 35% of the total sold policies of ALIC during the fiscal year 72/73 B.S.
Huge amount of capital investment ,effective management system, lack of skilled
manpower, lack of modern technology, are the internal forces and increasing
insurance market, awareness among the people about the life insurance, competition,
customer satisfaction, are the external forces that affects the business environment of
the company.

This study also conclude that the current ratio and working capital of the company
during the fiscal year 72/73 B.S. is 1.95 and Rs 6,00,22,612 respectively which is
considered to be a good for any organization as it has enough resources to clear its
debts to meet the immediate needs. It also indicates that the company has properly
managed its working capital to continue its operation and to satisfy both maturing
short-term debt and upcoming operational expenses.

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 CHAPTER IV

RECOMMENDATIONS

4.1 RECOMMENDATIONS TO THE ORGANIZATION

Based on the major findings and conclusion from the study, following
recommendation has been made:

a) ALIC should adopt modern technology to operate insurance activities in the

country smoothly and systematically.
b) ALIC should educate and inform more people about the importance of life
insurance
c) ALIC should be able to utilize optimum resources
d) ALIC should hire more skilled manpower to operate its business across the
country
e) ALIC should make strong customer care and service
f) ALIC should offer new type of products to its customers to make strong
existence in the competitive market
g) The infrastructure of company should be systematic and should operate in
wide area
h) ALIC should expand their branches in more area to provide the facilities of
life insurance to more Nepalese people
i) ALIC should provide a training program time to time for the interested people
j) ALIC should provide the proper guidance and supervision to the intern
students so that they can implement their theoretical knowledge in real field
k) ALIC should provide adequate information to the intern students so that they
can fulfill their requirement

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4.2 RECOMMENDATIONS TO THE COLLEGE

The primary aim of doing internship is to expose the theoretical knowledge in

practical field. Apart from this, the opportunity to the students, I recommend
following points to improve its quality.

a) Internship time period should be increased, current internship period is not

enough to learn basic things.
b) For the intern students, management should set their clear objectives that
should be fulfilled during their intern period.
c) College should make available of organization for internship instead of
students personal effort.
d) Proper guidelines supervision should be given to the students to gain best
practical knowledge.
e) College should force students to complete their internship and internship
report on time.

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 REFERENCES

Asian Life Insurance Company (2072/2073). Annual Report

Asian Life Insurance Company Brochure

Asian Life Insurance Company. Introduction. Retrieved on January 15, 2017 from
http://www.asianlife.com.np.

Singh, H.B. (2063). Banking and Insurance. 2nd(ed.). Kathmandu: Asian Publication Pvt.
Limited.

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