PAKISTAN STEEL

(Insurance Department)

 

No:INSE/8/Cover/2010-11/                                                                August 31, 2010

 

SUB:   REVIEWED EVALUATION RESULT OF TECHNICAL &

FINANCIAL OFFERS OF DIFFERENT INSURERS.

 

 

a)      Tender enquiry No.INSE/08/Cover/2009-10 dated 20-06-2010.

b)      Tender Opening Date 05-07-2010 and 20-07-2010.

c)      Mode of tendering. Annually.

d)     Type : Group Life Insurance Policy/Contract of Management & Executives (Officers) of Pakistan Steel w.e.f. 01-07-2010 to 30-06-2011.

e)      Number of Bid received : 06,             Rejected : 05

f)       Technical and financial status.

 

S.No.

Bidder/Insurers Name

Description

Status

Accepted/Rejected  with Reason.
  1.  

M/s. State Life Insurance Corporation of Pakistan 

Group Life Insurance Coverage on annual basis.

Accepted as a result of consideration of grievance, and sound financial position and lowest premium rate.
  1.  

The Dawood Family Takaful Ltd.,

- do -

Rejected due to running in loss and weak financial position.
  1.  

East West Life Assurance Co. Ltd.,

- do -

Rejected due to running in loss and poor performance.
  1.  

New Jubilee Life Insurance Company

- do -

Rejected due to highest premium rate.
  1.  

EFU Life Assurance Co. Ltd.

- do -

Rejected due to highest premium rate.
  1.  

Pak Qatar Family Takaful Ltd.

- do -

Rejected due to running in loss and weak financial position.

 

 

Note :  The previous evaluation result displayed on 19-08-2010, may be

treated cancelled.

 

 

As desired, the contents of letter of the above referred Insurers was examined and has been observed that the points raised by the East West Life Assurance Company for ceasing the process to award Group Life Insurance Policy to the first lowest bidder are irrelevant on the following grounds :-

 

          i)            In pursuance of directive of Competent Authority and in compliance with the PPRA rules an open tender for competitive premium rates in connection with provision of Group Life Insurance coverage to the Management and Executives of Pakistan Steel effective from 01-07-2009, was given in leading Newspapers and on Website of Pakistan Steel & PPRA.

        ii)            After completion of criteria drawn in the tender, the Dawood Family Takaful Ltd., has offered lowest premium rates in comparison with the other participants and has become 1st lowest.

      iii)            As per PPRA rules, we are confined to Award the above referred Insurance Policy to 1st lowest bidder.

      iv)            Dawood Family Takaful Ltd. has started its Group Life Insurance business in May, 2008.

        v)            In case the business is not awarded to the 1st lowest than the business is automatically goes to 2nd lowest M/s. State Life Insurance Corporation and not the complainant.

      vi)            So far adjustment of  Profit Commission share on the under reference policy for 2008-09, if any against the premium  of 2009-10 is concerned, the statement of Insurers is not correct, as they have acknowledged our letter No.INSE/8/Cover/2008-09-2282 dated    07-08-2008 and fax dated 30-07-2008, where in clearly mentioned that the P.C. will be paid through cheque and not adjusted. 

2.         In the last, it may please be noted that the above referred Group Life Insurance Policy is going to expire on 30-06-2009 and there is no insurance cover for our officers beyond this date. Therefore, it is requested to accord approval for awarding the under reference Group Life Insurance Policy.

 

3.         Submitted for consideration, please.

 

 

 

 

(SOHRAB ALI)

 Incharge (Insurance)

 

A/PEO (Finance & Accounts).