Whatever Your Need We’ve Got You Covered!
Is our new advertising theme with delightful and colourful images. You can click on the product name on homepage of our website www.nji.com.pk to get its main features.

Television Interviews This quarter our Managing Director was interviewed by many television channels. CNBC interviewed him twice on the company’s business, while PTV in their Corporate Coffee programme had invited Managing Directors of NJI and EFU General for their views on the insurance industry. Similar theme was covered by Shahzeb Khanzada, host of LIveWire, on the Business Plus channel, when Mr Tahir Ahmed spoke on: Relative improvement in market penetration by insurance companies. In 2006 GDP had grown by 7% whereas insurance business had recorded 24% growth. Welcomed SECP’s move to raise minimum paid-up capital of insurance companies from Rs 8 crores to Rs 30 crores, which will reduce fragmentation of insurance industry and improve risk taking potential of players who remain in the market Cautioned that crop insurance can be meaningful only if government subsidises the premium paid by the farmers Balanced underwriting of NJI kept their motor portfolio to 19% of total, whereas some had increased it to 50% of their business mix NJI focused on non-traditional and knowledge-based products because of edge its underwriters have in fields of engineering, financial institutions, health and liability insurances Opening of Takaful windows will also help business of dedicated Takaful companies because of increased penetration of the product

Mr Abdur Rahim, Executive Director - Operations
Mr Rahim joined us in November 2007, bringing with him rich knowledge of over 40 years in insurance having worked in private and public sector companies. Major period of his career was with UK’s Commercial Union (CU), which NJI acquired in 2002, commencing with Northern Assurance (of UK) in the 1960’s and he retired as the Country General Manager of CU in 2000.

Before joining NJI, his last assignment was Chief Executive Officer of Central Insurance including three years with Adamjee Insurance as Joint General Manager from 2000 to 2003. He has also been a member of IAP’s Central Committee and President of Karachi Insurance Institute.

We at NJI look forward to benefit from his knowledge and expertise, and wish him a happy career with us.

IAP’s Election 2007-08 and Annual Dinner
Balloting for the Elections was held on 15th November 2007 at Insurance Association of Pakistan’s Head Office in Karachi and Lahore Regional Office.

We congratulate Mr Hasanali Abdullah of EFU General Insurance who was elected as the Chairman of IAP and are pleased to inform that NJI nominees secured seats on all Committees.
The Elections were followed by their Annual General Meeting and Dinner on 20th November 2007. Some pictures taken on the occasion can be seen here.

NJI’s elected officers are:
Central Committee – Mr Atiq A Mahmudi
Accident Sectional Committee – Mr Azfar Arshad, Chairman
Fire Sectional Committee – Mr Mohammed Safdar
Marine Sectional Committee – Mr Brendan T D’Lima, Vice Chairman
Lahore Regional Committee – Mr Muhammad Ikram

The Elections were followed by their Annual General Meeting and Dinner on 20th November 2007. Some pictures taken on the occasion can be seen here.

Inauguration of NJI’s Clifton Branch
NJI’s Clifton Branch moved to its new premises at Shaheen Centre, at Schon Circle in Clifton. On 20th November our Managing Director and senior executives visited the branch on the invitation of Branch Head VP Azam Sultan Ahmed, for its official inauguration. On this occasion the Branch Head Azam Sultan gave a welcome address. The Managing Director in his address said that he was very optimistic that this being a young team will work hard and take maximum advantage of their time to achieve good result for their branch. He reminisced his own time as a manager when he felt that even twenty four hours were not enough and wished that there was more time at his disposal, so he could do more work. He also stated that opening the Clifton Branch was of strategic importance for the Company as its location was a natural advantage. He wished the new team the very best in its future endeavours. This was followed by equally inspiring words by our two Executive Directors Mr Mahmudi and Mr Rahim.

NJI’s Exhibition Stalls
Personal Line Products such as HomeCare, ShopCare and SelfCare were promoted at the popular shopping mall – Park Towers - during Eid ul Fitr and Eid ul Azha when large festive crowd visited the Mall. Good awareness of our products was achieved with our dedicated officers

manning the stalls late into the night throughout holidays for both the Eids.

Sea Water Desalination
by Karim Merchant and Ahsanullah
Karachi, the largest city and financial hub of Pakistan, located at the shores of Arabian Sea and having a population of about 20 million inhabitants, has been facing acute shortage of electric power and portable drinking water to feed the ever growing population.

In order to cope with the crisis-like situation, the Federal Government and City District Government Karachi (CDGK) invited interested parties to invest in sea water desalination.

DHA Cogen Limited (DCL), a joint venture between Defence Housing Authority, Karachi (DHA) and Sacoden Investments Singapore (SI), incorporated at Karachi on January 19, 2003, took the challenge and decided to establish the first commercial seawater desalination plant at Karachi.

This Complex is intended to fulfill needs of electricity and potable water for entire DHA, Karachi. Electricity shall be generated using natural gas as its primary fuel. The Net Dependable Capacity of the complex shall be approximately 94 MW with a Gross Capacity of 110 MW. The water desalination technology is Multiple Effects Distillation (MED). Sui Southern Gas Company shall supply the gas whereas the electricity generated shall be passed on to the grid of Karachi Electric Supply Corporation. The plant is intended for purification of 3 million gallons of seawater daily.

The plant’s power train, supplied by Siemens Germany, includes a V 64.3A gas turbine and a steam turbine on a single shaft configuration (first time in Pakistan) together with a heat recovery steam generator (HRSG). The steam turbine is designed to exhaust steam directly to the two MED plants to provide energy input for MED desalination process. The MED units are being supplied by the leading international supplier Alfa Laval Denmark. The facility also includes the necessary support infrastructure in terms of gas supply, seawater intake, 132KV sub station, water treatment, underground storage, workshop, stores, control room and administration offices for supply of water and electricity to the local distribution systems operated by CBC/DHA and KESC respectively.

Technical Description
Feed water (seawater) quality is of prime importance in selecting the design parameters for a desalination plant. The feed water is analysed for presence of various salts (TDS), chemical elements, total suspended solids (TSS), microbiological organisms and traces of metals etc.

The analysis is the deciding factor for the type and design of feed water pre-treatment or desalination units to avoid scaling/ouling of desalination plants and equipment. The sea water samples taken for DHA Cogen Plant showed high TSS values i.e. up to 60 ppm (parts per million) which require special pre-filtration system titled “Fine Filtration System” mesh size 30 microns, to supply quality sea water as feed water to desalination plants for processing.

Fine Filtration System
Fine Filtration of seawater at DCL is achieved by carrying out micro filtration, which is suitable for the filtration of ollutant (suspended solids) mechanically through micro-screen drum type filters. The fine filtration unit consists of a rotation drum sieve through which the sea water feed is passed. The micro sieves stops and controls the presence of suspended solids by filtration to micron level.

The feed water from the intake system passes through the rotating drum leaving the intercept solids on the inner surface of the screen sieve basket. The screen baskets are made up of fabric of high tension resistant polyester fiber with high durability measuring mesh size from 5 micron to 200 micron. The micron giant filters are also provided with back wash system to clean the collected suspended solids by spraying water through pump and jet pipe mounted on the top of screen basket. The filtered water is discharged over an effluent over flow weir to a pump pit for further pumping it to the plant.

DHA Cogen Ltd. filtration plant is designed and manufactured by Passavant of Germany with performance guarantee on expected sea water inlet worst condition of TSS 100 ppm, grain size 500 micron to achieve the filtered water outlet condition of 28 micron and TSS less than 30 ppm; as acceptable condition.

Desalination
For large scale production of potable water, two generic processes have evolved; namely evaporative (MSF and MED) and membrane (reverse osmosis). Both processes require a driving force (or driving potential) hence they require energy input. For evaporative processes the predominant driving potential is temperature and for membrane processes the predominant driving potential is pressure.

Distillation is a phase separation method whereby saline water is heated to produce water vapor, which is then condensed to produce freshwater. There are various distillation processes used to produce potable water, including MSF, MED, VC, and waste-heat evaporators. All of these generally operate on the principle of reducing the vapor pressure of water within the unit to permit boiling to occur at lower temperatures, without the use of additional heat. Distillation units routinely use designs that conserve as much thermal energy as possible by interchanging the heat of condensation and heat of vaporisation within the units. The major energy requirement in the distillation process is heat for vaporisation of feedwater.

Evaporative Processes (MSF and MED)
Evaporative processes rely on a phase change from liquid to vapor phase. In this process only the water molecules pass to the vapour phase leaving the other constituents behind in the liquid (seawater/brine). The two dominating systems that have evolved are MSF and MED.

Vapor Compression (VC)
The vapor-compression process uses mechanical energy rather than direct heat as a source of thermal energy. Water vapor is drawn from the evaporation chamber by a compressor and is condensed on the outside of tubes in the same chamber. The heat of condensation is used for evaporating a film of saline water applied to the inside of the tubes within the evaporation chamber.

Membrane Distillation
Membrane distillation is a relatively new process, having been introduced commercially only in the last few years. The process works by using a specialised membrane which passes water vapor but not liquid water. This membrane is placed over a moving stream of warm water, and as the water vapor passes through the membrane it is condensed on a second surface which is at a lower temperature than the feedwater.

Alfa Laval‘S Multi Effect Distillation (MED) At DHA Cogen
Alfa Laval is a well known multinational company specializing in the manufacturing equipment for separation, filtration and heat exchange. One of its division specialises in seawater desalination using the MED process with unit size up to 2.2 MIGD. Alfa Laval is supplying two units of 1.5 MIGD capacity each to DCL project.

MED desalination is a thermal process. In simple terms this means it must have a hot end (heat input) and a cold end (heat extraction). This sets-up a driving potential through the system to carry out the required useful work to be performed (in this case separate water from seawater). The hot end is the steam input as first effect. The cold end is the final condenser where seawater cooling is used to extract and dump the used-low-grade heat back into the sea.

Each effect works in the following manner. The incoming steam (or water vapour) condenses on one side of the surface of the heat exchanger plates. The latent heat of condensation travels through the plate to the other side where seawater film evaporates to form water vapour which is passed on as steam to condense in the next effect. The steam which is condensed in the first effect is collected separately and returned as condensate for the steam cycle. Steam/vapour condensed in the follow-effect and final-condenser is collected as distillate product. The multi-effect configuration (hence the name MED) is used to increase the efficiency of the process. DCL has 7 stage MED system. Other parts of the process include a heated seawater feed supply to each effect from the outlet of the final condenser. Seawater that has not evaporated is collected as brine for disposal and an air ejector system is required to remove non condensable gases from the system which operates under vacuum. The distillate product from the plant is in fact very pure water. So much so that it has to be treated by a re-mineralisation process to make it suitable for human consumption.

Power Generation: Curbs and Scope

by Umair Ismail Ghaya

In recent years, growing economy, high population growth rate, rising per capita income and rapid urbanization has intensified the demand for utilities. Pakistan, like many developing countries, faces serious shortfall of power because of its excess of industrial and residential demand over the existing power-generating capacities. In order to sustain economic growth, availability of adequate power is increasingly becoming a question mark.

The total installed electricity-generation -capacity in the country is about 19,505 MW, of which 65% is contributed by thermal, 33% by hydel and 2% nuclear power generating units. The investment share of public sector entities is around 70% and of private sector 30% of total installed electricity capacity.

According to government sources the gap between firm supply and peak demand is estimated at 5,529 MW by the year 2009-10 when firm electricity supply will stand at 15,055 MW, and peak demand of 20,584 MW. For this reason, Government plans to add 6,428 MW (including 700 MW of Wind Power) by the year 2010 through the Independent Power Producers (IPPs).

The role of private sector IPPs is laudable in the energy mix of Pakistan as they alone fulfill around 30% of the nation’s electricity requirement. There are 16 private-sector-commissioned IPPs in Pakistan including HUBCO with 1300 MW capacity. Although the capacity-expansion planned by the government seems to be a daunting task, many of the local and foreign investors are actively investing in Power Generation. Currently Private Power Investment Board (PPIB) is processing 60 LOI’s of which 21 are oil based projects, 6 of them are dual fueled, 6 dedicated gas field projects, 21 hydel projects and 6 coal projects having cumulative cost of USD 14.682 billion.

Among 60 LOI’s of new IPP projects, 9 have achieved a financial close namely Orient Power Project (Orient Group), Muridke Power Project (Sapphire Group), Fauji Mari Power Project (Fauji), Sahiwal Power Project (Saif Group), Attock Gen Power Project (Attock Group), Atlas Power Project (Atlas Group), Star Power, Nishat Chunian Power Project & Nishat Power Project (Mansha Group). All of these projects are expected to commence commercial operations in next 3-4 years. Halmore, Engro Power and New Bong have signed implementation agreement and it is expected that these projects will achieve financial close in 2008. It is estimated that 12 of these named projects will cost around USD 3.11 billion and cumulatively will add 2,337 MW in the installed electricity generation capacity.

Moreover, the 21 LOI’s of hydel IPPs to be processed by PPIB are expected to commence commercial operation between 2011 to 2016 including Tarbela 4th Extension (960 MW), Suki Kinari Hydro Power (665 MW) and Munda Hydro Power (660 MW). These 21 hydel projects will add around 5,128 MW to the installed electricity generation capacity and cumulatively they will cost around USD 5.6 billion according PPIB.

Another most exciting development is the establishment of Alternate Energy Development Board (AEDB). AEDB has been established to promote all environment friendly alternative / renewable energy resources that have not been developed in Pakistan. Many of the private investors have already committed to develop projects based on renewable energy technologies with potential investment of USD 5 billion predominantly in wind power generation. In respect of Wind Power Generation, AEDB has issued LoIs to ninety three (93) national and international investors, 92 for 50 MW wind power projects each and one LOI for 05 MW wind project. Furthermore, Seven IPPs have completed their feasibility study for 50 MW wind power projects each. Eight investors have so far applied for grant of Generation License to NEPRA out of which five companies namely New Park Energy, Green Power, Win Power, Tenaga Generasi and Milergo Pakistan have received Generation License from NEPRA. It is expected that with rising fuel prices, the interest in thermal IPP projects in future is likely to decrease and more investor interest will be seen in the renewable energy sources for electricity generation.

Above facts and figures suggest that large investments are to be made in power generation sector considering the current supply-demand gap. With both local and foreign investment likely to keep coming in this sector, insurance industry needs to gear-up both in respect of capacity to underwrite large risks and in respect of knowledge base to underwrite these special risks. Currently the most popular covers that are offered to IPP’s in Pakistan are Erection All Risk Insurance extended to cover Delay in Start-up (EAR - ALOP / DSU), Comprehensive Project Insurance (CPI) and Comprehensive Machinery Insurance (CMI). New Jubilee Insurance Company with its vast experience and knowledge, is participating in insurance programs of various IPPs (both operational and under-erection) but we as a company also need to focus on new renewable energy sector as it provides a good opportunity to underwrite this special class of insurance with enormous potential.

In addition to the above, power generation sector offers a huge opportunity for us to make an impact in micro insurance as government actively pursues investors to participate in small scale renewable energy, poverty alleviation programs for remote villages outside the national grid because 60% of population is living without electricity. These programmes include micro-wind-turbines, solar-photo-voltaic and micro-hydel projects. We need to harness the knowledge and expertise for such projects and familiarise ourselves with risk associated with remote locations. Certainly with Pakistan’s growing need for electricity we need to gear up to provide security to this vital sector of our economy.

Advanced Diploma in Insurance

By Salim Sikander Ladhani

In previous issue I discussed how Advanced Diploma in Insurance can help people develop and excel in their career in insurance, the advantage of doing Advanced Diploma and the qualification framework.

Now if you are Confused!!!!!! Where to Start From?
No Worries…the overall CII Insurance framework is extremely flexible allowing you to select units from qualification other than the one which the candidate is studying and can select units from entire insurance qualification framework. I would also like to add that persons outside insurance industry too can study for ACII if they wish.

The qualification framework offered by the CII has been designed to provide a clear path for those looking to develop their career in today’s insurance market.

There are compulsory subjects for both Diploma and Advanced Diploma. Aside from these, candidate is free to select units from across CII‘s Insurance qualifications: Award, Certificate, Diploma and Advanced Diploma.

This approach provides you maximum flexibility, enabling candidates to choose different units from the 45 units currently available. There is no prescribed order in which units must be taken. This flexible approach allows candidate to develop a course program that suits his/her need and environment. Full course details can be obtained from www.cii.co.uk

Furthermore, candidates who wish to apply for any of the qualifications, can also contact Pakistan Insurance Institute on telephone # 5683421 to obtain information and assistance on courses, materials and exam dates.

by Muhammad Zakir

Friendly 10-overs cricket match was played between NJI Lahore Zone, and Shalamar Hospital Lahore on 9th December, 2007 in Valencia Cricket Ground.It was the first such activity at the Zone level which was thoroughly enjoyed by the players and the audience on a sunny day.

NJI team’s captaincy was by Dr Muhammad Javaid Iqbal, Senior Manager, A&H Division-LZO, who with support of LZO colleagues, arranged this interesting event.
Match started at 10:30 am. Shalamar Hospital team decided to bat first and scored 108 runs for the loss of eight wickets. Our Mr Rizwan Puri, Vice President (Mkt) took three wickets by bowling two overs. Against the target of 108 runs, NJI team scored 85 runs only in ten overs. Again Rizwan Puri played well and scored 24 runs comprising of 4 sixes. Highlight of the match was active participation of our Mr Tahir Ahmed, AVP who not only bowled but also batted well. The entire crowd enjoyed and appreciated his zest and fitness.

It was a marvellous pitch and having some excellent batting conditions, the Shalamarian took the lead and won the match.The presence of Mr Muhammad Ikram, JEVP/Zonal Head, along with other senior officers, encouraged the players. The audience also took keen interest in watching the match and enjoyed a lot.

At the Prize Distribution Ceremony Mr Ikram presented the Winner’s Trophy to the Shalamarian Captain while Mr Rizwan Puri was awarded Man of the Match trophy. The event was concluded with delicious brunch and thanks by the Shalamarian Captain and their officers to NJI for suitable arrangements in a short time and for hosting the event.

Take Care Of Your Sensitive Eyes
This information is sure to help PC users very much. Here is an exercise for the eyes by a specialist doctor in the United States for all of us who spend long hours at our desks, looking at the computer screen.
Step I: After every 20 minutes of looking into the computer screen, turn your head and try to look at any object placed at least 20 feet away. This changes the focal length of your eyes, a must-do for the tired eyes.
Step II: Try and blink your eyes for 20 times in succession, to moisten them.
Step III: Time permitting of course, one should walk 20 paces after every 20 minutes of sitting in one particular posture. Helps blood circulation and reduces back strain.
(Contributed by Dr Fauzia G Siddiqi, SM-Health Division)

Leaders are Readers

To ensure successful output (career), you must have good input (reading).

In work-related context, we must do some amount of reading to stay on top of our chosen profession:

Current affairs: We ought to be aware of what is going on in the world around us, the politics and business trends, currencies, prices, sports and entertainment. Therefore reading newspapers and newsmagazines is a must.

Company material: The history of the company, its products and services should be required reading for all those who work or do business with the company. If you are in sales, you ought to also read about your competitors and their products.

Management books and articles: This is the lifeblood of career progress. There is a wealth of material available in bookstores and on the Internet.

It is not a joke when we say, “Leaders are readers.”

(excerpt from Leon Menezes’ “Leaders are Readers” in Sunday DAWN’s HR Horizons)