Corporate Law
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CONTRACT ACT
Contract law is one of the most important legal concepts in the business world. Contracts determine everything from how employees are hired to how companies work together to how sales are made.
The problem is that while contract law is dense, it’s also fundamental to contract management. Here’s a quick refresher on the fundamentals of contract law to help you successfully navigate contractual relationships.
What is a contract?
A contract is a legally binding agreement between parties to create mutual obligations that businesses and individuals use to protect their interests. Contracts outline the specific terms of engagement for a transaction. They can also dictate legal consequences if a party tries to break the agreement. -
The Negotiable Instrument
The Negotiable Instrument Act, 1881 was enacted on 9th December 1881 to define and amend the law relating to Negotiable Instruments i.e. Promissory Notes, Bills of Exchange and Cheque. It was originally applicable in the Sub-Continent and was adopted by Pakistan after partition for the same purposes. It saves the usage related to hundis etc. According to this Act, every Negotiable Instrument shall be governed by the provisions of this Act, and no usage or custom at variance with any such provision shall apply to any such Instrument.
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COMPANY ACT
The Companies Act 2017 is the statute that governs company law in Pakistan. Its official name is “Companies Act, 2017” and it was notified to be promulgated with immediate effect on 30.05.2017 and published in the official gazette on 31.05.2017 as Act No. XIX of 2017 (the Act).
Previously the company law in Pakistan was governed through the Companies Ordinance, 1984 (1984 Ordinance), now repealed except for the provisions related to Non-banking finance companies (NBFC) contained in Part VIIIA. For provisions related to NBFCs, the 1984 Ordinance is still in force.
The Act came into force with immediate effect except for Section 456. This section deals with the acceptance of advances by real estate companies engaged in real estate projects. It will come into force upon notification by the Federal Government or any authority or person authorized by the Government. Later this section was omitted through an amendment ordinance in 2020. However, the omission was not approved by the Parliament, therefore the section is still part of the law but not effective.
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Income tax
income tax, Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private enterprise, income taxes represent the chief source of government revenue. Income tax levied on individuals or family units is known as personal income tax. In 1799 Britain enacted a general income tax to finance the Napoleonic Wars. In the U.S. an income tax was first tried during the Civil War; the Supreme Court held it to be constitutional in 1881 but declared another income tax unconstitutional in 1894. In 1913 the 16th Amendment to the Constitution made the personal income tax permanent. The fairness of personal income taxation is based on the premise that one’s income is the best single index of one’s ability to contribute to the support of the government; most personal income taxes are conceived on the theory that when people’s financial circumstances differ, their tax liabilities should also differ. Thus U.S. income taxes are progressive taxes, falling more heavily on those who earn more money, and individual income tax deductions are allowed for items such as interest paid on home mortgage debt, unusual medical expenses, philanthropic contributions, and state and local income and property taxes. Enforcement has been facilitated by withholding the tax from wages and salaries. See also capital gains tax; capital levy; corporate income tax; regressive tax; sales tax; value-added tax.
- Partnership law
A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities.In a general partnership company, all members share both profits and liabilities.Professionals like doctors and lawyers often form a limited liability partnership.There may be tax benefits to a partnership compared to a corporation.
Insurance
Plans main
Endowment plan
Jivan sathi plan
Child Education and mariage plan
Golden Endowment plan
Shadabad plan
Personal pension schem
Claim main
Maturity claim
Death claim
Aib Rider claim
Fib Rider claim
Lown
Surrender
Endowment Assurance
Eligible ages:-
Minimum Age: 10 years
Maximum Age: 65 years
Age (Maximum) on Maturity: Age 75 years.
Allowable Riders: Click here for supplementary covers which can be attached with this plan.
It’s a safest and surest method of guaranteed cash provision either at a specified time or at death (Allah forbid). Under these policies, the sum insured plus bonuses are payable at the end of the specified number of years or at death of the life insured if earlier. Premiums are payable for the specified number of years or till death, if earlier. The benefits under the plan can be further increased by attaching supplementary covers.
This policy will acquire a surrender value after it has been inforce for at least two consecutive years provided no premiums are in default. The surrender value will be quoted by State Life on request of the policyholder.
The plan serves the requirements of a family in various shapes by way of financial help at retirement, education of children or provision of capital for business. Click here for calculation of premium on your life under this plan.
Child Education & Marriage Plan
Eligible ages:-
Minimum Age: 20 years
Maximum Age: 60 years
Age (Maximum) on Maturity: 70 years
Allowable Riders:
Click here for supplementary covers which can be attached with this plan.
Child Education & Marriage Assurance is a plan for the protection of child’s future. It provides a lump sum benefit for the child at the completion of the policy term. On completion of term of the policy, full sum insured together with the accrued bonuses become payable to the policyholder. Please click here for the details of bonuses currently available for this plan
If the policyholder dies (Allah forbid) before completion of the term, a family income benefit of Rs 240 per 1000 sum insured per annum is paid to the child until the completion of policy term. Further, future premiums under the policy are waived and policy remains in force with full sum insured and continues to participate in State Life’s surplus and receive bonuses. Upon the completion of policy term, the child gets two options of either getting the proceeds in a lump sum or in five equal installments.
Continue the policy in the same manner as earlier by switching the plan for the benefit of another child.
Get a refund of all the previous premiums paid till the death of the child or the cash value of the policy, whichever is higher and terminate the contract.
Continue the policy without naming another child in which case the benefit of Refund of Premium [as provided above under condition (b)] will not be available.
Child Education & Marriage Plan is suited for the parents who are conscious about the future of their children. The term of the plan is such that the lump sum benefit becomes payable when the child attains a predetermined age of 18, 21 or 25 years. These ages may be selected considering the occasion at which children generally need financial assistance for higher education, marriage, or setting up business. Depending upon your individual needs, the plan is available in two separate versions of with and without built-in family income benefit. In addition to parent, this plan can also be affected by grandparents, uncles, aunts or any other person who is paying for the maintenance of the child.
This policy will acquire a surrender value after it has been inforce for at least two consecutive years provided no premiums are in default. The surrender value will be quoted by State Life on request of the policyholder
Shad Abad Assurance
Eligible ages:-
Minimum Age: 20 years
Maximum Age: 60 years
Age (Maximum) on Maturity: 70 years
Allowable Riders: Click here for supplementary covers which can be attached with this plan.
On completion of term of policy, sum insured plus bonuses attached to the policy are payable. However, on death during the policy term, the death benefit consists of double of sum insured with accrued bonuses. Incase of death due to accident, the death benefit consists of four times the sum insured plus bonuses. The coverage can be further widened by attaching supplementary covers with the policy. Click here for details of the supplementary covers.
This plan meets the requirements of those who appreciate the basic savings purpose of endowment assurance but also like some additional cover to protect loved ones in case they die, Allah forbid, before maturity. Click here for calculation of premium on your life under this plan
Jeevan Saathi Assurance
Eligible ages:-
Minimum Age (Equivalent): 20 years
Maximum Age: 50 years
Equivalent Age (Maximum) on Maturity: 70 years
Allowable Riders: Click here for supplementary covers which can be attached with this plan.
This is a joint life plan and covers lives of two partners say husband and wife simultaneously. Premiums are payable till the end of the specified term or till death of either of the insured persons, if earlier. The plan contains extensive benefits; an overview of which appears as under:
On the death of the first life, the sum insured will be paid to the survivor. Further premiums under the policy will be waived, but the insurance protection of the second life will continue. Also, the policy will continue to participate in profits of the Corporation. On death of the second life, again the sum insured will be paid together with the attaching bonuses. In this event the policy will terminate.
If the second life survives the term of the policy, he or she will be paid sum insured together with the attached bonuses, even though the sum insured has been paid once, on the death of the first life. If both the lives survive the term of the policy, the sum insured will be paid to them jointly, only once, together with the attached bonuses. Different supplementary covers are also available for increasing coverage under the policy. Click here for supplementary covers.
Jeevan Sathi Plan is best suited for those married couples who want to enjoy insurance coverage for a comparatively lesser premium. Moreover, housewives who are otherwise not insurable can also enjoy the benefits of insurance policy through this plan. Click here for calculation of your premium under this plan.
Supplementary Covers
State Life offers a number of supplementary covers to enhance coverage under different plans. These supplementary covers can be attached with the main policy and are not available exclusively. Please click below for the details of these supplementary covers:
Accidental Death & Indemnity Benefit (AIB)Accidental Death Benefit (ADB)Family Income Benefit (FIB)Waiver of Premium (WP)Special Waiver of Premium (SWP)Term Insurance (TI)Guaranteed Insurability (GI)Refund of Premium Rider (RPR)Hospital And Surgical Benefit (H and;S)
Accident Death & Indemnity Benefit (AIB)
This supplementary cover provides for payment of additional amount equal to the sum insured under the policy in the event of death by accidental means, or in the event of loss of two or more limbs or loss of sight in both eyes. One-half of the sum insured will be paid for loss of one limb; one-third of sum insured in the event of loss of one eye and one-fourth of sum insured will be paid for loss of thumb and index finger. Moreover, weekly indemnities are also available for total and partial disability of the life insured as a result of the accident. If the life insured becomes permanent and total disable, an annuity of 10% of sum insured will be payable for a maximum period of ten years.
AIB is suitable for office commuters and individuals who travel and use different modes of transport. The rates of premium for this supplementary benefit range from Rs 4 to Rs10 per thousand sum insured depending upon the occupational rating of proposer for standard lives whose age should be between 18 to 55 years.
AIB can be attached with following plans
Accidental Death Benefit (ADB)
This supplementary cover will provide for payment of an additional amount equal to sum insured in the event of death by an accident as defined in the contract. On payment of a modest premium, a handsome accidental coverage is obtained through this supplementary cover. ADB is highly recommended for individuals who travel daily through road transport.
The cover is available to lives between 5 and 55 years of ages. Maximum term of this supplementary benefit is not allowed to exceed the premium paying term of the basic policy, or 60 years of age of the life proposed whichever is earlier.
ADB can be attached with following plans:
Whole Life AssuranceEndowment AssuranceAnticipated Endowment AssuranceJeevan Sathi AssuranceChild Education & Marriage AssuranceShehnai PolicyChild Protection AssuranceMuhafiz Plus AssuranceNigehban PlanOptional Maturity Plan
Family Income Benefit (FIB)
This supplementary cover provides that incase of death of the life insured during term of this cover, an annuity of 10% to 50% per annum of the basic sum insured will be payable till the completion of term of this cover. For instance, if a life insured has taken 25% FIB supplementary cover for 20 years on his policy having sum insured of Rs 1,000,000. If the life insured expires during term of FIB, say at the end of fourth year, an annual sum of Rs 250,000 will be payable for rest of 16 years.
While the basic plan provides a lump sum, FIB provides a regular stream of income to the dependents and helps in meeting the day to day expenses. This supplementary cover is available to lives between 18 and 55 years of ages. It can be attached with following plans:
Individual Life Claims
Procedure for Maturity Claims
Procedure for Death Claim
Procedure for Other Claims
Procedure for Loan against Insurance Policy
Procedure for Volunteer Policy Surrender
Procedure for Complaints against Insurance Policy
Group & Pension Claims
Procedure to lodge Death Claim, Group & Pension
Procedure for Maturity Claims
It is a matter of great pleasure that your policy has matured. It is a time to fulfill the goals that you had set years back. For collecting maturity benefits, please send a written request alongwith following documents to your servicing State Life zonal office:
Original policy document
Copy of National Identity Card
Maturity discharge voucher duly verified by your bank
If your signature has changed over the years, please send us your three specimen signatures of old and new styles
Immediately on receipt of above documents, we will process the case further for payment of amount due, if any, against maturity claim under above policy.
Procedure for Death Claim
State Life insurance policies provide wide range of benefits in case of death of the persons covered against them. If your loved one covered under any of State Life has expired, you should lodge a death claim with us. All you have to do is to send a written intimation to the zonal office of State Life servicing the policy against which you are lodging a death claim.
We will, after evaluating the case, contact you for other required documents for processing of death claim.
Procedure for Death Claim
State Life insurance policies provide wide range of benefits in case of death of the persons covered against them. If your loved one covered under any of State Life has expired, you should lodge a death claim with us. All you have to do is to send a written intimation to the zonal office of State Life servicing the policy against which you are lodging a death claim.
We will, after evaluating the case, contact you for other required documents for processing of death claim.
Procedure for Other Claim
Survival Benefit Claim
If your Anticipated Endowment Assurance policy has completed 1/3rd or 2/3rd term of the policy, you can withdraw a sum equal to 25% of the sum insured of your policy.
For withdrawal of Survival Benefit, please send a written request alongwith following documents to your servicing State Life zonal office:
Original policy document
Copy of National Identity CardSurvival Benefit discharge voucher duly verified by your bank
If your signature has changed over the years, please send us your three specimen signatures of old and new styles
Immediately on receipt of above documents, we will process the case for payment of amount due, if any, against survival benefit claim under above policy.
Injury Claim
If your State Life insurance policy contains an Accidental Death & Indemnity Benefit (AIB) supplementary cover, and you have sustained an injury as specified in the contract, you can apply to us for an injury claim within 20 days of sustaining the accident. For lodging your injury claim, please send a written intimation of the accident mentioning therein the date of accident to your servicing State Life zonal office.After receipt of intimation from you, the case will be further looked into and our zonal office will contact you accordingly.
Procedure for loan against Insurance Policy
Your State Life insurance policy provides a valuable facility of loan to meet your immediate financial exigencies. You can avail a loan upto 80% of net surrender value of your policy. On policy loans, we charge markup @ of 12.5% per annum compounded semiannually. If you are interested to avail loan under your policy, please fill out the following form:Click here to download form [ 51 kb]
Procedure for Volunteer Policy Surrender
You had decided to buy insurance policy for the protection of yourself and your loved ones. After surrender, the policy loses all the benefits and facilities and your risk coverage ceases. Hence for the benefit of yours and your loved ones, we suggest you to change your mind of surrendering this policy. If you have some acute financial exigencies, you can meet them by availing loan against your policy. If you have finally decided to surrender your policy, please fill out the form below:
Click here to download form [ 29kb
