Pakistan-Libya Holding, New Jubilee Life Insurance sign MoU
Pakistan Times Business & Commerce Desk

KARACHI: The Pak Libya Holding Company and New Jubilee Life Insurance today signed a memorandum of understanding for a new collaboration for the first time in Pakistan, a new concept that will provide consumer financing for the policy holders.

Shamim Zaman Group Head Consumer Banking Division PLHC and Javaid Ahmed Managing Director of NJI signed the MoU Monday. Speaking on the occasion Shamim Zaman asserted that in today’s highly competitive environment, those organizations, which successfully predict and appropriately match consumer demands with products would be survivors.

The battle for the consumer’s attention takes place at shelf level and the manufacturer’s goal is to convert the consumer’s attention into action and get the product into the shopping basket.

Some blockbuster products carry the success of the whole company on their shoulders. However consumer tastes and preferences change and competitors launch new variants of the same product and with enhancements. Companies must therefore invest in the development of new products.

He revealed that by breaking new grounds, consumer-banking division is anticipating an alliance with New Jubilee Insurance company, the third largest insurance company in Pakistan. The proposal is unique in its essence as CBD is offering financing facility to the policyholders of NJI against the cash value of their policy.

“Strategic Partnership aims at strengthening a valuable relationship as well as extraordinary exposure,” he added. According to details of the key elements the Bank shall facilitate the policyholders of NJLI by extending loan facility against the cash value of their insurance policies as collateral. The amount of cash value assigned as collateral will be clearly defined at the time of loan being extended.

The finance facility extended under the program shall be subject to the eligibility criteria formulated by the Bank. All customers participating in the program shall enter into an agreement with the Bank and all repayments by the customers in respect of the said agreement will be made directly to the BankNJLI will provide the insurance cover to these policyholders for the loan amount extended by the Bank.

The repayment period for financing facility shall be at the discretion of the Bank and shall be competitive with other products of similar nature. Borrowing amount may vary from Rs 25000 to Ra 1,000,000. The Bank shall finance up to a maximum of90% ofthe cash value of the policy.

Javaid Ahmed said innovation by focusing customer ensures that maximum value is extended to customers. It means creating a partnership that combined with our expertise in financial services maximizes profitability and ensures quality.●