In any organization employee motivation is the key factor for organizational performance.This research paper attempts to provide empirical evidence of the effects of motivation on performance of the employees working in insurance companies and organizational productivity and also evaluates the important factors which motivate the employees working in different insurance companies. In this study a sample of 124 employees was taken by taking simple random sampling techniques. Two hypotheses were also framed 1) There is no positive relationship between motivation and employee performance. 2) There is no positive relationship between motivation and organizational productivity. This paper shows that motivation is positively related to the Employee performance and organizational productivity. This paper shows that motivation is positively related to the Employee performance and organizational productivity.