Dear Readers

At NJI the new year started with preparations for “Together for Progress” - our annual sales conference with this theme, leading to setting of sales targets, presentations, entertainment and, on conclusion returning with commitment and enthusiasm to “carry-through our plan to grow robustly and profitably,” as directed by our Managing Director. You can get the full flavour of the Conference on pages 4, 5 and 15.

Our Risk Management officers have enthusiastically covered Oil & Gas Exploration topic in-depth and wish to present this to you in three parts so that full benefit of their research and visit to gas processing plant and well sites reaches you. This you can read on pages 10 and 11.

The magic of technology has charmed us at NJI too and you may like to know how and how-much has been tapped on the facing page.

Bancassurance, junior snooker, gold medals, sad loss of three of our Executies, together with our regular features on achiever’s profile, branch performance, training and development and NJI writer’s corner are all there for you to read and enjoy and know us better. We will welcome your feedback and comments on forward@nji.com.pk.

News Brief

SMSCare - SMS Alerts Service

NJI is the first insurance company to have initiated SMS Alert Service to its clients, largely to the credit of our young innovative team in the Alternate Distribution Cell.

Various advertising channels were tapped to give this innovative service in insurance wide promotion. Advertisements on radio were aired on FM 91, 100, 103, 105 & 107 during morning and evening drive time during February 2008. This was supported with streamers being placed all the way from the Nursery Area to the Chundrigar Road during the month, while a billboard at Shahrae Faisal and bridge-branding at Phase II in Defence Housing reinforced the message.

In-house training session to create awareness for our front line claims officers about this new service was also held by our VP-Claims Syed Abdul Rahim together with SM Rizwan Hussain and Manager Umair Ismail Ghaya.

In the last two months more than thousand SMS alert messages have been sent out by eight of our sales outlets to which an overwhelming response from our motor clients was received, with many of them calling-in to appreciate the facility. It is hoped that when this service is enabled throughout our network, it will give a significant boost in level of satisfaction to our motor clients for whom this initial launch is geared.

FM Radio Advertising

NJI made its presence on FM radio in January 2008 for CareLine Products, staggering ten days each for ShopCare, HomeCare and SelfCare. These advertisement were on FM-91, FM-100, FM-103 and FM-107 during morning drive time of 8:30 to 10:30 am, afternoon 12:30 to 2:00 pm and evening drive time of 6:00 to 9:00 pm. Tapping new channels for our business is a norm at NJI and we hope to have good outcome.

Video-conferencing

Time and cost effectiveness in linking officers between cities, encouraged us to invest in video-conferencing. NJI Karachi connects with NJI Lahore regularly for in-house training and the facility is extended to meetings and job appointments.

Gold Medals for students of Hailey College of Banking and Finance

Hailey College of Banking and Finance at Lahore was inaugurated in March 2003 and is today an institution of great repute affiliated with University of the Punjab.

Insurance Association, Lahore Chapter, lent its support for Insurance & Risk Management students at the College by presenting a cheque of Rs 100,000 for gold medals to be presented to these students on attaining highest position on overall basis or obtaining distinction in an Insurance subject in the final examination.

Mr M K Baig, Chairman, Lahore Regional Committee (IAP) and Mr Muhammad Ikram, Chairman, LII, and JEVP-Lahore Zone, NJI, presented this cheque to Prof Dr Khawaja Amjad Saeed, Principal of the Hailey College on January 02, 2008, as seen in the picture above. It is felt that this encouragement will go towards producing quality insurance professionals in the Punjab and as well as in the country.

There were also other activities at the Hailey College when the Governor of Punjab did the ground breaking of its new block in February 2008, and their annual dinner was held in March at which insurance luminaries graced the occasion including Mr Saif-ud-Din N Zoomkawala, Managing Director, EFU General Insurance; Mr Mohamed Ishaque Khan, renowned Insurance Consultant; Mr. Muhammad Ikram, Head of NJI - LZO; Sheikh Muhammad Sarwar, Faculty Member of HCBF and Mr. Khalid Rashid, renowned Insurance Consultant. A section of the audience at the dinner is seen above.

NJI Revives Junior Snooker

A major breakthrough for development of cue sports at junior level was gained when NJI co-sponsored the National Junior Under-21 Snooker Championship, at Snooker Zone Club from 3-8 March 2008.

The event was last held in Rawalpindi in 1996, and 2008 event was the fifth competition where country’s top 32 cueists from Punjab, NWFP, Baluchistan and Sindh participated.

Pakistan Billiards and Snooker Association (PBSA) had launched junior championship in 1986 and had tournaments in 1992, 1993 and 1996 after which it was abandoned because of lack of sponsorship.

The Fifth Championship carried prize money of Rs 90,000 and the prize distribution was on conclusion of the finals. Our Managing Director Mr Tahir Ahmed presented to the 18-year old winner Ayaz Khan a cheque of Rs 30,000 cash prize and winner’s trophy, and the runner-up Ahsan Javed was presented Rs 20,000. Cash prizes were also awarded to the semi-finalists and encouragement awards to the club’s youngsters: Azeem Yousuf and Ahad Ali Khan who made it to the quarter-finals, as well as to Mohammad Afzal for the highest break in the Championship.

Both Ayaz Khan and Ahsan Javed will represent Pakistan in the upcoming Asian Junior Under-21 Snooker Championship to be held in Myanmar from April 5-11, 2008.

Lahore Chamber of Commerce and Industry

Our JEVP and Head of Lahore Zonal Office, Muhammad Ikram, was re-appointed as the Chairman of the Standing Committee on Insurance at the Lahore Chamber of Commerce and Industry for the period January-December 2008.

Together for Progress - 3rd Annual Sales Conference at NJI

The major annual event at NJI is the sales conference, bringing together executives and senior marketing officers of the company for common goal of enhancing business.

2008 Sales Conference was the 3rd such annual event on 28th and 29th January at the Pearl Continental Hotel. The theme of the conference was “Together for Progress”. The Managing Director spoke of the challenges ahead and that no one at NJI could afford to blink but carry-through our plan to grow robustly and profitably, despite all odds. 30% growth and Rs 4.25 billion written premium was set as the target for the year.

With this target in mind, a wide range of topics were chalked out focusing on finance, underwriting, claims, marketing, selling, special projects, risk management, group health insurance, products for financial institutions, consumer and liability insurance. Seasoned professionals at NJI addressed the audience on their subject of expertise, stimulating the audience to ask number of questions during the question-answer sessions.

Each day had a guest speaker at mid-time of the conference. In-keeping with NJI’s commitment to healthy lifestyle, Dr Khawar Abbas Kazmi was invited on Day One to speak to us on “Heart and Lifestyle”. Dr Kazmi, a Fellow in Cardiology from the Royal College of Physicians in Edinburgh and having done numerous research projects in cardiology, enlightened the audience on healthy habits covering diet, exercise and a commitment to look after one’s health.

Guest speaker on Day Two was Mr Mahmood Nanji, a successful and experienced marketing professional who spoke on “EQ To Win Customer Loyalty”. He said there is one approach to create a product and then have marketing strategy to sell it. Other and better approach is to study the customer needs and evolve products to satisfy their need. More customer loyalty is possible in latter approach he emphasised.

On the second day of the Conference, Mr Tahir Ahmed took pleasure in presenting awards to our star sales performers in three categories: “Top 10 Stars of 2007”, “Top 5 Rising Stars of 2007” and a new category was added of “Top 5 Collection Award”. This was followed by certificate of appreciation to the organisers of the conference who worked behind the scene to make it a success it was.

Fun at the conference was with a welcome dinner on the eve of the conference enabling fraternising among officers from various cities, which continued at tea breaks and lunches the following two days. Traditional entertainment at the beach was organised to perfection, as done year after year, with especially outstation officers making the most of the ambience and camel/horse rides. The food and musical entertainment maximised the fun with many officers dancing to the music and others displaying their vocal talent.

At the end of conference everyone returned to his desk with renewed warmth and energy, taking with him feeling of togetherness and the spirit to work on business objectives for the year.

“Clients will be the ultimate beneficiaries through this distribution system as it provides convenience, protection and unique product to cater to their needs...”

Bancassurance

Bancassurance is defined as the collaboration between banks and insurers to distribute insurance products to bank customers. Bancassurance in Europe and America has enjoyed considerable success as majority of the consumer insurance products are being processed through banks. However, this concept is relatively new for Asian countries and in case of Pakistan, the concept is at the infancy and only some of the insurers have experimented with this mode of distribution channel. The prospects of Bancassurance in Pakistan are very promising. It can help insurance companies address the disadvantage of small outreach. Moreover, it will also help banks in increasing their revenue through fee income and foster universal banking concept.

Benefits of Bancassurance:
Through Bancassurance, banks and insurance companies can reap various benefits. Some of them are listed below.

Benefits to Banks:
• Additional, secure and stable stream of income through diversification into insurance and reduce reliance on interest spreads as the major source
• Leverage on bank’s extensive customer base
• Sell a whole range of financial services to clients and increase customer retention
• Reduce risk-based capital requirement for the same level of revenue
• Access funds that are otherwise kept with insurers who sometimes benefit from tax advantage.

Benefits to Insurers:
ˆ• Tap into the huge customer base of banks
• Reduce their reliance on traditional agents and use channels owned by banks
• Share service with banks
• Develop new financial products more efficiently in collaboration with their bank partners
• Establish market presence rapidly without need to buildup network of agents and branches
• Obtain additional capital from banks to improve their solvency and expand.

Risk:
Benefits in using Bancassurance are not free of cost as some risks are associated with this channel as well.

• There is always the risk of substitution between similar banking and insurance products
• There is possibility of reputation-risk for banks as well as for insurers so selection of bank and insurance company should be on prudent grounds
• Acceptability of Bancassurance by insurance agents is vital, which can only be fostered if business through Bancassurance leads to additional demand rather than shift in business from insurance agent to Bancassurance channel.

Clients will be the ultimate beneficiaries through this distribution system as it provides convenience, protection and unique products to cater to their needs, thus lowering their fear of losing what is most precious to them.

Iqbal Rohilla, Head of Peshawar Branch

“I have been associated with NJI for 43 years and with great confidence I can say that I feel proud to be part of the Company which has given me everything one can desire in life,” is how Mr Iqbal Rohilla, head of Peshawar Branch defines his career at NJI.

During his career in insurance he has played, “key role in healthy development of insurance industry in the Frontier Province and also took major part in good and harmonious relationship between insurance companies and thus earning a good name in the region for New Jubilee.”

Mr Rohilla started his career in 1960 in Habib Insurance when his education had to be set aside to support his family, having lost his father. Even to this day he remembers fondly how Mr M A Chishti - a respected member of the insurance fraternity and author of numerous books on insurance – approached him to join NJI in 1964, when the company intended to open a sub-office in Peshawar. He has never looked back since.

“Throughout my association with New Jubilee I have focused only on quality underwriting and kept the interest of my company above all other considerations. I have faced difficulties following this policy but I have a deep sense of satisfaction,” states Mr Rohilla.

He recalls 29th December 1970 as a memorable date in his career. He was eligible for company maintained car in that year subject to his achieving business target. However he was
Rs 10,000/- short and two days away from book closing. He phoned a friend who was a bank manager in Mingora who promised him business. 31st being bank holiday, young Iqbal took off on his scooter braving the icy winds. True to his word his friend gave him business for the much needed Rs 10,500/- enabling the jubilant young Rohilla to receive a brand new Toyota Corona from the company and his first car!

In addition to his business, Mr Rohilla demonstrated a desire to develop insurance training and became the founder member of the organising committee that established Peshawar Insurance Institute (PII) in 1981. He served on the governing council of the Institute and has been its finance secretary for the last five years. At the PII he organised various seminars on insurance as well as the first Agent Foundation Course. In recognition of his dedication and contribution to insurance education, he was awarded Life-Time Achievement Award by the Peshawar Insurance Institute on Pakistan’s golden jubilee celebration in 1997.

He says with great satisfaction that both his sons have secured MBA in Finance and MBA in MIS from the University of Peshawar. Also that, after MBA in MIS his son is also intending to study MBA in Human Resource for which he will be proceeding to England this year.

Apart from his career, Mr Rohilla has also served the community and his country. He is a founding member of Muhammadan Welfare Society which runs a dispensary for free medical service for the indigent.

He also was a deputy warden during the 1965 and 1971 Indo-Pak wars when he spent sleepless nights in service of his locality. He completed basic course in civil defense as well as rescue and fire fighting courses in 1965. In 1971 he motivated cream of youth to enroll in sub-sectors of his Post and assigned them different duties. He also made a plan highlighting hydrants and water taps in the ward, as well as names and telephone numbers of people with motor cars and bikes for use in emergency. For his service the government gave him certificates of appreciation for both the wars but more than that, “I am proud that I was able to serve my beloved country.”

Mr Rohilla believes that, God helps those who help themselves and upholds the philosophy of honesty, loyalty and dignity which is reflected equally in his career with NJI and in his service to the community. It is also his dream to see New Jubilee as the number one insurance company in Pakistan and is confident that, “under the able and dynamic leadership of honourable Tahir sahib this will become a reality soon.”

The authors of this article, SVP Karim Merchant and DM Ahsanullah, visited gas processing
plant and well sites

of OGDC at Qadirpur and Dewan Petroleum Ltd at Safed Koh.

Drilling
When a development well is located right between two producing wells, there is still a risk that nothing will be found - and also the possibility of greater-than-expected success.

The basic drilling process is simple. A revolving steel bit at the bottom of a string of pipe grinds a hole through the rock layers.

There are many different types of rigs. Some are specially equipped for sour gas exploration, Arctic operations, slanted holes, or horizontal drilling. As a general rule, the bigger the rig, the deeper it can drill.

The most common drilling technique used is the rotary drilling system - a highly efficient mechanical system used on land and sea.

A rotary drilling rig is made up of:
• Hoisting equipment
• Drilling bit
• Drill pipe
• Rotary equipment
• Mud circulating treating equipment
• Blowout prevention system
• Power source

Drilling is a round-the-clock operation. Wells are usually drilled vertically but can be drilled at an angle also. This technique is called directional drilling.
A major advancement in oil and gas discovery is horizontal drilling, which allows drills along a reservoir and increases production / accesses difficult terrain.

As the drill nears its final depth, engineers, geologists and management have to decide whether there is enough oil and gas in the well to commence operation. Usually their decision is based on economics of future investment to make a well produce.

Types of Raw Natural Gas Wells
Raw natural gas comes primarily from any one of three types of wells: crude oil wells, gas wells, and condensate wells.

Natural gas that comes from crude oil wells is typically termed associated gas. Gas can exist separately from crude oil in underground formation, or it exists dissolved in crude oil.

Natural gas from gas wells and from condensate wells, in which there is little or no crude oil, is termed non-associated gas. Gas wells typically produce only raw natural gas, while condensate- wells produce raw natural gas along with a very low density liquid hydrocarbon called natural gas condensate (sometimes also called natural gasoline or simply condensate).

Raw natural gas can also come from methane deposits in the pores of coal seams. Such gas is referred to as coalbed gas and it is also called sweet gas because it is relatively free of hydrogen sulfide (H2S).

(Part II will be in our next issue: Apr-Jun 08)

Are You a Value-added Employee?

What is your focus when you go to work? “What can I give today?” or “What can I get?” Both questions are important, however, the former will get you further faster. You give and then you get. Strangely, that is the way it works best in any relationship.

If you are focused on what you think you are not getting, that overshadows everything. Attitudes shift and conversations turn into complaining sessions. You can change this. Build on your strengths rather than focus on company weaknesses. You can choose how you use your time and your perceptions.

Focus your energy how you want to be seen in the workplace. As competent, confident and valuable, or as adequate, mediocre and expendable? Good employees come to work on time, do their tasks well and cause few waves. Great employees do all that and more. They are focused on the company’s mission and vision. They can be excellent team-players and excellent leaders when needed. They are clear about their own purpose and vision and know why they have chosen to work where they work. They care about others and help them to achieve their goals. They do these things because it clearly moves them further along their career path. It is in their own best interest to do so.

Many folks would rather find fault than good. Catching people doing things well and commenting on it, makes you a ‘value-added’ employee.

Many folks would rather see what they can get away with than see what they can give.

By giving just a little more than expected, you honour yourself and you are being ‘value-added’.

Which side of these equations are you working from? Only one will get you where you want to go.

Source: PIM Newsletter

The Numerous Benefits of Walking

If a daily fitness walk could be put in a pill, it would be one of the most popular prescriptions in the world. It has so many health benefits. It’s safe, simple and does not require practice and the benefits are many; walking can reduce the risk of many diseases — from heart attack and stroke to hip fracture and glaucoma. These may sound like claims on a bottle of snake oil, but they’re backed by major research. Walking requires no prescription, the risk of side effects is very low, and the benefits are numerous. For example, you can:

Keep it Steady: A steady routine is the most important factor in getting the most out of your exercise program. Walking for at least 30 minutes a day, 5 or more days a week is recommended.

Use these tips to keep you on track:

The Best Medicine: Any amount of walking is good, but for the best health results, set a brisk pace and walk for 30 minutes at least 5 times a week. Be sure to check with your doctor on the level of exercise that’s best for you.
You will be glad you started!

M. Nadeem Irshad, SVP – A & H
References: aarp.org/health & cnn.com/health

Congratulations to...

21st March 2008

March 21 was of special significance this year as the calendars of five different religions coincided, giving each faith a reason to celebrate the day.

As Muslims celebrated Eid Milad-un-Nabi (the birth of Prophet Muhammad PBUH) on Friday, Christians marked the crucifixion and death of Jesus (PBUH) as Good Friday, while Hindus and Sikhs came together to celebrate Holi, also known as the festival of colours. Meanwhile, Eid-e-Nauroz, the religious festival of members from the Baha’i faith also fell on March 21, which is also a community festival for the Zoroastrians as well as the Ismailis and Iranians.

Some considered it a ‘blessed weekend’ and as a sign from God to spread the message of religious tolerance.

Azam Khan, Senior Manager,
MD’s Secretariat