Friday, 13 January 2012

Risk Management

Risk is the sugar and salt of life. Risk brings sweetness to life and it brings bitterness. There is something exciting about the risk, an edge that it brings, a dimension we would not want to give up. The other side of risk is less attractive. The bitter side of risk is one with which we are only too familiar.
'Risk' is the unlooked for, unwanted event in the future. Events such as those at Flixborough, Seveso, Three Mile Island, Bhopal, Chernobyl, Zeebrugge, Piper Alpha or Kings Cross. These events and others like them have certainly grabbed the headlines but they are only the tips of the risk iceberg. They are the events, which make the headlines and the news bulletins, but they are far removed from the everyday forms of risk, which regularly confront us. The 'real' level of risk comprises the steady toll of fires, accidents, thefts, explosions, and other similar events. These are events, which rarely grab front-page space in our newspapers but nevertheless form the bulk of the work of risk management.
The dimensions and effects of such loss events have long since become major significance for whole economies and the questions of how to predict and prevent them are accordingly the subject of intensive discussion both in the political sphere and among the public at large.
It is an illusion to think that such events can always be prevented wherever they occur. An analysis of loss experience has shown, however, that it is often a combination of individual causes which, taken on their own, would not have any dramatic impact that leads to major or even catastrophic losses and that these, in turn, can give rise to some very complex effects. This realization makes it necessary to approach the problem of the limitation and control of threats from several angles at once or, in insurance terms, from the viewpoint of several different classes of business.
The complex realities of modern economic life and the growing awareness of the public at large place increasing demands on companies to pursue appropriate and far-sighted policies about risk. The same applies to insurers in determining their underwriting policies. The rapid development of new technologies and the changing nature of production processes necessitate a constant analysis of risk profiles. Both entrepreneurs and insurers therefore enormously increased need for analytical and advisory services. Risk Management Department at E.F.U is meeting part of this demand. This company offers our client advice in the field of Risk Management.
Aside from this, it is EFU's aim to offer its clients comprehensive support in questions of risk management affecting any sector.
What happens if the concrete Risk Management analysis indicates the need for coverage that is not normally available on the market?
We work together with you to try to find a viable solution. Provided that the risk does not exceed the borders of what can be considered insurable and provided that sufficient capacity is available, we are prepared to offer insurance for difficult and unconventional forms of cover, assuming of course that we are able to agree on the premiums and conditions.
In any event, by offering specific suggestions on the subject of risk control, we aim to reduce exposures to possible losses.
What do EFU's services cost?
These highly individual services exceed the scope of what we normally offer our clients and therefore cannot be provided free of charge. However, at EFU we charge you nothing.
Does EFU also offer risk management training?
Depending upon the request, we hold specific risk management seminars for our business partners. After an introduction to the theory of risk management, the practical side is demonstrated by means of a case study. The participants then have a chance to make risk management decisions and to analyze these in the course of workshops.
Whom do you approach for risk management services?
The "Risk Management" Central Office of EFU: Head Office - will be glad to receive your orders. It is responsible for coordinating and supervising the work that will be done on your behalf. This concentration of activities in one central office is of great advantage to you. Our branches with which you have dealt previously will also be pleased to help in passing on your requests to our risk management specialists.


No one will ever know when mankind first tried to fly, but it is clear that man envied the gift given by nature to the animal kingdom, that is, the ability to fly. Very large sums are invested in modern aircraft and their operation. The largest modern airliners cost up to Pak Rupees 14 billion each and may carry over 500 passengers whose collective worth, if compensation for death or injury has to assessed, may run to a further Pak Rupees 50 billion. Even a small private aircraft may be the cause of a mid-air collision with similar financial consequences. The failure of a component manufactured by a small company may result in the loss of a fully loaded airliner. Because such catastrophic loss may arise it is normal for aviation risks to be excluded from many kinds of general insurance policy.
Buyers of Aviation Insurance

Commercial Aircraft Operators
Corporate and Business Aircraft Operators
Aerial Work and Air Taxi Operators
Private Owners and Flying Clubs
Air-Craft Manufacturers
Owners and Operators of Air-Ports, Hangers
Shippers Of Goods By Air
Lessors (Banks, Financial Institutions)
Hang Gliders
Conventional Gliders, Balloons and Hovercraft


It has been realized that an increase in speed from 60 m.p.h. to an estimated 1800 m.p.h. in respect of the new supersonic aircraft, together with their ever-increasing costs would reveal the amount of money that air-operators, manufacturers and financial enterprises are investing in the aircraft industry and in civil air transport, and would emphasize the fact that each and every individual company or enterprise could not afford to lose the whole, or even a part, of their capital as a result of accident or misfortune. That is why the idea of spreading the risk by insurance is regarded as inevitable, and why aviation insurance enterprises, as well as new ventures, have been constituted and actively continued.
Types of Covered offered

Aviation Hull All Risks
Hull War and Hijacking
Spare Engines and Spare All Risk
Legal Liability To Passengers
Legal Liability To Third Parties
Legal Liability To Cargo
Legal Liability To Mail
Comprehensive General Liability
Loss Of License
Personal Accident


  • Group Personal Accident

  • Personal Accident cover for individual persons

  • Family Package gives a discount when the whole family buys one policy

This policy will provide compensation in the event of Death, Permanent Disability or Temporary Disability due to an Accident. Coverage is worldwide. We can add extra coverage that will pay for medical expenses resulting from an Accident.

Auto Insurance

Come to the Leader! We value every vehicle, we value every loss.


                                                                                                                                                                                                                                                                                                                                    Tips on buying right motor insurance policy

Driver should bear in mind that there are number of details that should be taken into account when applying for motor insurance policy.

Firstly as soon as car purchased the owner must buy an insurance cover. If a used car is purchased, the new owner needs to know that the cover of the previous owner is null and void.

The insured value or sum insured depends on the market value of the vehicle. Under insurance or over insurance occur when this value is not properly mentioned.

Over insurance occurs when sum insured is higher than the market value, maximum compensation is the market value of the vehicle.

Under insurance occurs if sum insured is less than the market values, you are as self-insuring the difference. In the event of a loss, you will only be partially compensated.

Average clause is applied when you suffer damage to your vehicle which is under insured. Your claim will be reduced proportionately by the uninsured portion, e.g. if you have insured your vehicle up to 70% of the market value, the insurance company will only pay 70% of total repair cost.

List of Coverage for each type of Cover

Coverage Act liability policy Third party policy Comprehensive policy
Third party personal injury and death
Third party property damage
Theft/own damage, constructive total Loss

Private and Commercial Vehicle Comprehensive Insurance
This is the widest form of cover; our client is protected against financial losses of all kinds, accidental loss to vehicle, theft of car and third party liability claims on him or her.
Private and Commercial Vehicle Third Party Motor Vehicle Insurance
EFU's client is protected against all financial losses due to accidental damage liability of all forms to third party, property damage or bodily injury, death or both.
Private and Commercial Vehicle Act only Liability Insurance
The cover meets the minimum legal insurance requirement. In this cover, EFU offers you protection against financial losses due to liability of accidental bodily injury or death to third party. In addition to above basic protections we are offering insurance solutions to our clients, combining basic covers with following EXTRA BENEFITS.
Family Accidental Benefit Cover
EFU offer accidental death or injury benefit for insured, spouse and the entire family of EFU individual clients, in addition to comprehensive insurance of motor vehicle.
Accidental Death Cover for Salaried Driver
For our commercial clients owning fleet of vehicles a specially designed product offering personal accident covers for the paid drivers.
Protection of Loan Amount for Financial Institutions
For financial institution offering car financing schemes EFU offer modified insurance package offering protection of outstanding loan amount to the leasing company in case of death of lessee, combined with the comprehensive coverage of motor vehicle.
Personal Accident Benefit Cover for Passengers
This is a very popular cover that EFU is giving its clients who are in hospitality business, car rental service. Their guests are offered accidental injury or death benefits while traveling in motor vehicle.