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“RECRUITMENT PROCESS IN INSURANCE COMPANY”
Submitted in partial fulfillment for the Award of degree of Master of Business Administration
Submitted By: LEENA BIJARNIYA MBA Part II (SEM III)
Submitted To:MR. NARENDRA CHOUDHARY (HEAD OF THE DEPARTMENT)
College of Engineering & Technology, Bikaner
This is to certify that Ms. LEENA BIJARNIYA student of MBA II Year (IIIrd Sem.) at COLLEGE OF ENGINEERING AND TECHNOLOGY, BIKANER has completed training project report entitled “RECRUITMENT PROCESS IN INSURANCE COMPANY”. The project has been completed after studying for one year in MBA course and for partially fulfilling the requirements for award of degree of Master of Business Administration of Rajasthan Technical University, Kota. The Training Project Report has been completed under the guidance of Mr. NARENDRA CHOUDHARY of CET and is as per norms and guidelines provided.
MR. NARENDRA CHOUDHARY
“Success comes with knowledge & knowledge is comes with training.” MBA is a stepping stone to the management carrier and to develop good manager. It is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and it’s not sufficient to produce a good manager that’s why practical knowledge is needed. Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. In accordance with the requirement of MBA course I have summer training project on the topic “Recruitment Process in Insurance Company” with SBI Life Insurance Ltd. The main objective of the research project was to study the recruitment process of financial consultants in any insurance company. The information regarding the project research was collected through the questionnaire formed by me which was filled by the customers there.
gratitude and indebtedness to Mr. Department of Management. Bikaner for their help and cooperation throughout our project. I consider it a pleasant duty to express my heartfelt appreciation. Narendra Choudhary. I would also like to thank the supporting staff College of Engineering & Technology. ( ) LEENA BIJARNIYA 4 . I sincerely acknowledge him for extending their valuable guidance. patience. For guiding me right from the inception till the successful completion of the project. I would take this opportunity to thank all my family members for their helps & suggestions during the course of project work. critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. endurance. HOD. support for literature. Branch Manager) for their keen interest. I am also thankful to all my friends who gave me constant & continuous inspiration to complete this project. encouragement & thoughtful advice for the project work.ACKNOWLEDGEMENT I express my sincere thanks to my project guide Mr. invaluable pains taking & excellent guidance. Bhavesh Dhankani (Sr.
In the other words recruitment is the activity that links employers and job seekers. LTD. My topic was “Recruitment Process in Insurance Company” along with significant findings & suggestions that give idea how many the employees in the company are satisfied and not satisfied with welfare facility of the company. After the training program is completed the insurance agent has to appear for the pre-examination conducted by IRDA. A person with high educating and well experience can be recruited after a personal interview and group discussion. which permits him to deal in his insurance business. 5 . SIKAR.EXECUTIVE SUMMARY Project study report consists of brief description of company SBI LIFE INSURANCE CO. the special focus on the human resources. which helps create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. Usually. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment of candidates is the function preceding the selection. which is the proof of a legalized insurance agent. the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy. Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. The main objective of the recruitment process is to expedite the selection process.. Recruitment procedure of SBI Life Insurance is very easy. As he clear the exam he provides a license.
3 Tax benefits 2.-6 Chapter No.2 Role of the development agency Analysis and Interpretation 5.4 Threats Conclusion Recommendation and Suggestions Appendix Bibliography PAGE NO.3 Objective of study 3.1 Title of the study 3.-3 CONTENTS Introduction to the Industry 1.CHAPTER NO.7 Limitation of study Facts and Findings 4.1 Market survey report 5. Chapter No.-1 Chapter No.4 Type of research 3.2 Duration of the project 3.2 Weakness 6.3 Opportunities 6.2 Products 2.4 Project profile Research Methodology 3.-2 Chapter No.1 Strengths 6.1 Introduction 1.6 Scope of study 3.-7 Chapter No.3 Life insurance 1.1 Market survey 4.5 Sample size and method of selecting sample 3.2 Insurance industry 1.1 SBI life insurance 2.2 Product policy queries SWOT 6.-8 6 . 1-13 2 6 8 11 14-34 15 17 21 23 35-39 36 36 36 36 37 39 39 40-46 41 46 47-53 48 52 54-56 55 56 56 56 57-58 59-61 62-65 66-67 Chapter No.-4 Chapter No.-5 Chapter No.4 Life insurance in India Introduction to the Organization 2.
Chapter – 1 Introduction to the Industry Introduction Insurance Industry Life Insurance Life Insurance in India 7 .
the potential of the Indian insurance industry is huge.31 percent and the largest number of life insurance policies in force. lifting entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The year 1999 saw a revolution in the Indian insurance sector.INTRODUCTION TO THE INDUSTRY 1. 8 . With an annual growth rate of 24.1 Introduction The insurance sector was opened up in the year 1999 facilitating the entry of private players into the industry. as major structural changes took place with the ending of Government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill.
through a system of equitable contribution.4 percent. The improvement in FDI flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI and for encouraging infusion of new technologies and management practices. Life insurance penetration in India was less than 1 percent till 1990-91. and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. During the ‘90s. In 2007-08 it was 14percent. smart marketing. People are now turning to the private sector for providing them with new products and greater variety for their choice. are reaching out to untapped potential in rural areas with aggressive campaigns. Besides.” assured in consideration of insurer’s incurring risk of paying a large sum upon a given --. 1. In 2003-04 it was 2.W.Justice Tindall “Insurance is a contract by which one party for a compensation called in the premium assumes particular risks of the other party and promises to pay to him or his nominee a certain sum of money on a specified contingency. the insurance companies in general and private insurance companies in particular.1 percent out of which the gross premium collection forms a significant part. may reduce certain 9 .Fitterson “Insurance may be described as social device whereby a large group of individuals. Innovative products. Life insurance is viewed as a tax saving device. the insurance and banking services’ contribution to the country’s GDP is 7. it was between 1 and 2 percent and from 2001 it was over 2 percent.1.According to the CSO. The Government’s proposal to increase the FDI cap in the insurance sector from the present 26 percent to 49 percent has raised expectations among the international insurance companies.1 Definition “Insurance is a contract in which sum of money is paid to the contingency. The impetus for increase is due to the active role played by IRDA in licensing private players and taking positive steps in increasing the insurance awareness among the people.” --E.
Each member contributed some amount to a common fund to meet the unforeseen losses. When. It was cooperative and voluntary in nature.” --Britannica The above definitions clearly shows that insurance is a cooperative device to spread the loss caused by a particular risk over a member of persons who are exposed to it and who agree to insure themselves against risk. However. where and how it originated is still a matter of research in one way or the other was prevalent in olden days. References were made to the concept of insurance in Manu’s code “Manu Smrity”. which may be very heavy. Evidence is on records that arrangements embodying the idea of insurance were made in Babylonia and India at quite an early period. A word “YAGCHHEM” occurs in the world’s most ancient Hindu Scripture Rig Veda.2 Evolution of Insurance In the days of yore insurance was in its crude form and was cooperative and voluntary in nature. Traces of insurance in the ancient world are also found in the form of marino trade loans or carriers contracts which included an element of insurance. 1. It clearly indicated that about four thousand years ago insurance was prevalent in its crude form.measurable risk of economic loss common to all members of the group. Sometimes they also contributed equally to compensate person as and when he suffered a loss. Insurance does not eliminate risk but only reduces the financial burden.1. People formed different groups of organizations to share the loss among themselves incase of a particular risk. there is no evidence that insurance in its present farm was practiced prior to twelfth century. Encyclopedia 10 . The word “YAGCHHEM” means insurance. We can trace its history from the evolution society from hunting stage to the modern industrial age. It was akin to “Yagakshemo” of Rigveda in which the well being and security of the community was aimed at.
The main function of the insurance is to provide protection against the losses. Value of risk: The risk is evaluated before insuring to charge the amount of share called premium. 5. insurance is a cooperative device. Cooperative device: A large number of persons agree to share the loss arising sue to a particular risk. marine. The Contingency may be death. All business concern faces the problem of 1) Insurance provides certainty: Insurance provides certainty of 11 . fire in the fire insurance and theft insurance etc. 4.3 Nature of Insurance The insurance has the following characteristics which are observed in cases of life. 3. The element of uncertainty is reduced by better planning and administration. marine perils etc.1.1. when will occur and how much loss will be there. Payment made at contingency: The payment is made at a certain contingency insured. Thus.1. fire. 1. fire and general insurance. 2. marine perils in marine insurance. 3) Risk sharing: Risk is uncertain and therefore. Amount of payment: The amount of payment depends upon policy insured. 2) Insurance provides protection: The risk will occur or not. Sharing of risks: Insurance is a cooperative device to share the financial losses which might befall on an individual or his facility on the occurrence of specified event such as sudden death of the bread winner. 1. There are uncertainties of happening of time and amount of losses. the loss arising from the risk is also uncertain. in the case of general insurance.4 Functions of Insurance A) Primary Functionspayments at the uncertainty of losses.
it improves not only his efficiency of the masses is also advanced. Prevention is by far the best solution to the problem of risk. It is more effective and cheapest method to avoid the unfortunate consequence. For plan development of country there is a great need for huge amount of capital. 3) Improves efficiency: Achievement of goals. commerce and industry of the country. B) 1) Secondary FunctionsPrevention of loss: Prevention is always better than cure. Security of the life and property given by insurance bring peace of mind to the insured. 2) Provides capital: It provides the capital to the society. Now days. agro industry estates are able to solve many problems in India.the risk and if the concern is big enough the handling of risk becomes a specialized function. 5) Helps in economic progress: Insurance provides an initiative to work hard for the betterment of the masses. 4) Ensures the welfare of society: “Insurance is a saga of service and security” to thee society. Life insurance involves the element of saving investment through small savings. And which has been growing in recent years at an annual rate of 12 . Insurance. housing. as a device is the outcome of the existence of various risks in our day to day life. But sometimes prevention is not always possible and Effective. It spreads the whole losses over a large number of persons who are exposed by a particular risk. the insurance companies are rendering positive help in the development of trade. water supply. The investment in LIC in welfare schemes like electricity. The insurance eliminates worries and miseries of losses as death and destruction of property care free person can devote his energies for better.
as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill. smart marketing. and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected.2 1.1 Insurance Industry Introduction With an annual growth rate of 15-20% and the largest number of life insurance policies in force. Innovative products. the potential of the Indian insurance industry is huge. the insurance and banking services’ contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. a proposal to increase this limit to 49% is pending with the government. 400 crs.2. Though. Life insurance is not a mere business organization. it has nobler welfare responsibilities in the development of the economy.7 billion have poured into the Indian market and 21 private companies have been granted licenses. Since opening up of the insurance sector in 1999. 1. Till date. According to government sources. only 20% of the total insurable population of India is covered under various life insurance schemes. These facts indicate the of immense growth potential of the insurance sector. Total value of the Indian insurance market (2004-05) is estimated at Rs.about Rs. who had always seen life insurance as a tax 13 . lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. 8. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. The year 1999 saw a revolution in the Indian insurance sector. the existing rule says that a foreign partner can hold 26% equity in an insurance company. the penetration rates of health and other non-life insurances in India is also well below the international level. foreign investments of Rs. Indians.450 billion (US$10 billion).
253. LIC.43 billion during the fiscal year 2004-2005. “Indian Insurance Industry: New Avenues for Growth 2012”. According to estimates. while the private players have grabbed over 24 percent. This report also provides company profiles of the major private insurance companies. The share of LIC for this period has further come down to 75 percent. There are presently 12 general insurance companies with four public sector companies and eight private insurers. 55.07%. and key developments in the market after 1999. The report gives an instant overview of the Indian non-life insurance market.4 billion new policies in 2004-05. with premium income from new business at Rs.87% growth in business at Rs.2 Report Highlights • Gains of liberalization in Indian insurance sector 14 .57 billion in 2004-05 from Rs. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. RNCOS’s report. are now suddenly turning to the private sector and snapping up the new innovative products on offer. and covers fire. and other non-life insurance. Though the focus of this market research report is on the potential growth on the Indian Insurance Sector.saving device. 1. as private players grew by 129% to mop up Rs. The life insurance industry in India grew by an impressive 36%. Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one. has clocked 21. braving stiff competition from private insurers. marine. finds that the market share of the state behemoth. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers.29 billion in 2003-04.197. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. market segmentation. its market share came down from 87. private insurance companies collectively have a 10% share of the non-life insurance market.04 to 78.86 billion by selling 2.2. But this was still not enough to arrest the fall in its market share. 24. it also talks about the market size.
3 Life Insurance “The life insurance contract embodies an agreement in which broadly 1.3. It is superior to an ordinary saving plan: this is so because unlike other saving plans. undertakes to pay an annuity on the death of the insured of a certain number of years. the insurer undertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary.R.1 Definition stated. in INR (crore) Market share of non-life insurers Forecast of life insurance growth up to 2012 Forecast of non-life insurance growth up to 2012 Market revenue of both public and private insurers Policies and measures taken by IRDA to develop the insurance market Research and development activities Regulation of insurance and reinsurance companies Major challenges that Indian insurance sector is facing Profiles of the major players 1. in consideration of premium paid either installment. 15 .SHARMA “A contract of life assurance is that in which one party agrees to pay a given sum on the happening of a particular event contingent upon the duration of human life in consideration of immediate payment of a smaller sum by another.” --BUNYON’S LAW 1. it offers full protection against risk of death.MAGEE “Life insurance contract may be defined whereby the insurer.H.2 Advantages of life insurance 1.3.” --.• • • • • • • • • • • Indian insurance market segmentation by products Size of the market and market share of life insurers.S.” --.J.
Estate duty: life insurance is the most practicable way to ensure definite payment on one’s death without having resort to conversion of realizable asset at a loss. covering temporary risk situations. Tax relief: the income tax act exempts from tax that part of an individual’s income which is devoted to payment of life insurance premium. such as sea voyages. as a medium to long term exercise (through a series of regular payment of premiums).3 Why Life Insurance ? Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for short periods of time. where the individual makes a one off payment. it was realized what a useful tool it was for a number of situations.2. As life insurance became more established. 16 . Unlike regular saving products. Insurance encourages and enforces thrift : many people may not have the will power to continue a long term saving plan which they may formulate regular payments in face of money other uses to which their limited income could be put. Regular Savings: Providing for one's family and oneself. Investment: Put simply. 4. Temporary needs / threats: The original purpose of life insurance remains an important element. 2. investment products are traditionally lump sum investments.3. This has become more relevant in recent times as people seek financial independence for their family. namely providing for replacement of income on death etc. 3. Easy installments and protections against creditors: the proceeds of a life insurance policy can be protected against the claims of the creditors of life assured by affection a valid assignment of the policies. 3. including – 1. the building up of savings while safeguarding it from the ravages of inflation. 5. 1.
What are some of the financial implications of his death on his family? There may be several financial implications on his family.4. d) The family may have to move into a cheaper accommodation. e) His widow may have to take up work to earn money. Pranay is 45 years of age and self-employed. Let us take an example to understand the need for insurance: Mr. insurance protects against untimely losses. A simple life insurance policy could have provided Mr. 2 lakh. Some of these are: a) The monthly income. Insurance has been found useful in the lives of persons both in the short term and long term. previously provided by Mr. especially in a changing cultural and social environment. looks after their two children aged 3 and 7 years. b) His wife and children may have to seek financial assistance from other relatives. Mr. his family would not have faced such hardships in the event of his unfortunate death. which will provide periodical payments in one's old age. where the main earner has no life cover. who is a housewife. Atul passes away in an unfortunate road accident. Had Mr. Mr. f) The education of his children may suffer. c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.000 rupees per month. Atul's family with a lump sum that could have been invested to provide an income equal to all or part of his income. Atul has taken up a loan of Rs. This simple example illustrates the impact premature death can have on a family. His wife Nandini. Short term needs like sudden medical costs and long term needs like marriage expenses etc can be met with using life insurance. In simple words. They stay in a rented accommodation. where the rent is 15. 17 . Atul would stop.000 rupees. His monthly earnings on average are 40. One can buy a suitable insurance policy. Atul taken life cover. Retirement: Provision for later years becomes increasingly necessary.
1. This is an indicator that growth potential for the insurance sector is immense in India. Today it stands as a business growing at the rate of 15-20 per cent annually.4 Life Insurance in India With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. The key element of the reform process was Participation of overseas insurance companies with 26% capital.The time when we were not even born. with the establishment of the Oriental Life insurance Corporation in 1818. 18 . man has sought some sort of protection from the unpredictable calamities of the nature.In spite of all this growth the statistics of the penetration of the insurance in the country is very poor.1.1 History The origin of insurance is very old . Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India.The competition LIC started facing from these companies were threatening to the existence of LIC. Since then the insurance industry has gone through many sea changes . it adds about 7 percent to the country’s GDP . Together with banking services. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance.4. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The entry of the private players and the increased use of the new distribution are in the limelight today.
a wing of the Insurance Association of India. GIC was 19 .. and the United India Insurance Company Ltd. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also restructuring and revitalizing of the public sector companies. 1972 nationalized the general insurance business in India with effect from 1st January 1973. Non life insurance market. 16 foreign and 75 provident firms were been established in India. GIC incorporated as a company. In December 2000. In 1972 The General Insurance Business (Nationalization) Act. Policies come under the purview of the government appointed Tariff Agenty Committee. the GIC subsidiaries were restructured as independent insurance companies. It was after this that 107 insurers amalgamated and grouped into four companies viz. frames a code of conduct for ensuring fair conduct and sound business practices. After the liberalization the entrance of foreign players has added to the competition in the market. Then the central government took over these companies and as a result the LIC was formed. the first general insurance company established in the year 1850 in Calcutta by the British. In 1957 General Insurance Council.2 Present Scenario The government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) bill. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. the National Insurance Company Ltd.The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India.. At the same time. can trace its roots to the Triton Insurance Company Ltd. A host of private insurance companies operating in both life and non life segments have started selling their insurance policies since 2001. 1. The General insurance business in India. on the other hand.. the New India Assurance Company Ltd. the Oriental Insurance Company Ltd.4. By 1956 about 154 Indian.
Under the existing norms. Most of the new entrants reported losses in first yr of their operation in 2001. In the first half of 2002. the tariff Agent committee sets the premium rates. Chapter – 2 Introduction to the Organization SBI Life Insurance Products Tax Benefits Project Profile 20 . In July2002. It is the last segment that has a number of additional products and competitive pricing. up from 4 percent in 2001. Parliament passed a bill. insurance premium payments are treated as part of the fixed costs. delinking the four subsidiaries from GIC. Normally one insurer takes the lead. For projects costing up to Rs. Insurance. like project finance. for projects between 1 billion and 15 billion. the private companies booked premium worth 6. the rates are set in keeping with committee’s guidelines. Although the public sector companies still dominate the general insurance business. and projects above 15 billion are subjected to reinsurance pricing.1 billion. is extended by a consortium. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. shouldering about 40-50% of the risk and receiving proportionate percentage of the premium.converted into national re-insurer.34 billion. Insurance costs constitute roughly around 1. Consequently they are treated as pass through costs for tariff calculations. the private insurance companies have a 10 percent share of the market.2 – 2 % of the total project costs.
SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores.INTRODUCTION TO THE ORGANIZATION 2. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. 21 .1 SBI Life Insurance SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance.
ensuring high standards of customer satisfaction and world class operating efficiency. SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans.1. SBI Life has a unique multi-distribution model encompassing Banc assurance. and become a model life insurance company in India in the post liberalization period. Agency and Group Corporate. BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas . part of the world’s top 6 group of banks by market value and a European leader in global banking and financial services. BNP Paribas.” 2. Along with its 7 Associate Banks. SBI Group has the unrivalled strength of over 14. BNP Paribas Assurance is the fourth largest life insurance company in France. SBI access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion.1 Mission “To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices. is one of the oldest foreign banks with a presence in India dating back to 1860. arguably the largest in the world.Euro Zone’s leading Bank.500 branches across the country. 2.1.2 Values • Trustworthiness 22 . BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and partnership model.State Bank of India enjoys the largest banking franchise in India.
Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.• • • • Ambition Innovation Dynamism Excellence 2.1. CRISIL has reaffirmed its highest financial rating AAA/Stable to SBI Life. In 2007 SBI Life became the first life insurer in India to receive this rating from CRISIL. • • Recently ICRA. • Ranked amongst global top five life insurance companies in the number of MDRT members. • Became first life insurer in India to receive the highest financial rating ‘AAA’ from CRISIL. country’s leading rating agency. 23 . the country’s best known rating agency in 2007. B) Financial Year 07-08: • Rated as the ‘The Most Trusted Private Life Insurer’ according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau. has assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance. Retains ISO 9001:2000 certificate for superior claim settlement process.3 Key Milestones A) Financial Year 08-09: • • • Bagged the coveted personal finance award-Outlook Money NDTV Profit “best Life Insurer 2008”.
24 . automatic rebalancing of funds at yearly intervals. Automatic Asset Allocation of funds. D) Financial Year 05-06: • Becomes the first Life Insurer to make profits. for IT processes and software development C) Financial Year 06-07: • • Second consecutive year of profitability. Leads Private Life Insurance Companies in Lives covered : 6. Orissa sections of society. for the economically underprivileged • • Received ISO 9001: 2000 certification for superior claim settlement process. free of cost higher protection. Twin benefit of insurance cover and market linked returns profits provides higher security to Hassle-free investment management of funds from inception to maturity. non participating Unit Linked Insurance Plan in Indian Insurance Industry.2.II SBI Life .Horizon II is a unique.1 Horizon. 2. This plan offers the flexibility of Unit Linked Plan along with Automatic Asset Allocation which provides relatively higher returns on your money where as increasing death bench. to meet your family financial needs.49 Million lives covered. where you need not to be a financial market expert. Became the only domestic life insurer to achieve CMMI Level 3 certification capabilities.2 Products 2.• Forayed into micro insurance with the launch of ‘Grameen Shakti’ in Bhubaneshwar.
aspirations which always aim to reach horizon and you want your child achieve his/her dreams. the moment is filled with cheer. through Top-up Investment Flexibility through Switching and Redirection Options Liquidity through partial withdrawal’s Attractive Tax benefits under the Income Tax Act. SBI Life Unit Plus II Pension plan makes sure that you have regular income after you retire and also helps you to maintain your standard of living. This is a unit linked pension plan wherein the policyholder chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years. This moment marks a new beginning in the child’s life and there’s no looking back after that. As per the plan and term chosen by you.It is a unique.2.No medical examination required Option to pay premium.II We at SBI Life understand the basic needs for pension plan and give you financial strength to maintain your life style even after the retirement. But at the same time as a proud parent you also want to secure their future against rising cost of education and other necessities. Life begins afresh when you become a parent and when the child takes that first step towards you. as low as Rs 500 p.2. Key Features• • • • • • • • Twin benefit of market linked returns and insurance cover Simple Joining Process . 1961 2.2 Maha Anand SBI Life . enthusiasm never felt before.3 Unit Plus. non-participating Unit Linked Insurance Plan. Choice of 3 fund options to choose from Flexibility to increase your investments.Maha Anand is a simple & convenient unit linked plan. 2.m. which provides you insurance cover without any medicals. The child keeps growing and so are his dreams. SBI Life will invest the net premium amount into each of the funds mentioned. 25 .
SBI Life Unit Plus II Pension plan makes sure that you have regular income after you retire and also helps you to maintain your standard of living. 2. You can choose to pay either single premium or pay regular premium for the entire policy term.4 Unit Plus Child Plan We at SBI LIFE understand you better and hence have developed SBI Life . Flexible plan which adapts to your changing needs as and when you want. Your contributions are invested into 5 fund options as per your choice. Pay Premium for a limited period and reap benefits over a long time. This Plan is meant for parents in the age group of 18-57 having a child between the age group of 0-15 years.5 Pension plan We at SBI Life understand the basic needs for pension plan and give you financial strength to maintain your life style even after the retirement. 2. Key Features- 26 . Your contributions are invested into 5 fund option.2.2.Unit Plus Child Plan to suit you and your needs best.You can choose to pay either single premium or pay regular premium for the entire policy term. Key Features• • • • • • Market related returns to match increasing cost of education Peace of Mind by giving you triple benefits Loyalty units to celebrate your child reaching 18 years New Investment Fund (Equity Optimizer Fund) in addition to existing funds. This is a unit linked pension plan wherein the policyholder chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years.
SBI Life . anytime Customize your plan by adding riders 15 days free look period 2. Key Features• • • • • Guarantee of the highest of select NAVs. Flexibility to choose between two options Pure Pension Pension cum Life Cover No medical required for Pure Pension. Investment cum Insurance plan giving market related returns Convenience through shorter premium paying term.Guaranteed Maturity NAV.• • • • • • • • • • Choice to invest & control four different funds as per your risk appetite Choice to invest & control four different funds as per your risk appetite. but also gives you the added attraction of participating in the market upside. during the first seven years on maturity.6 Smart ULIP In the current volatile market scenario you need a plan which not only protects your investment.2.Smart ULIP is the perfect answer to your need. giving you a choice between two premium paying terms (PPT) Power of more. and will give you not only Guarantee on select NAVs during the first seven years. Innovation structured investment fund-‘Flexi protect Fund’ 27 . but also enables you to get market related returns. continues beyond the premium payment term. automatic acceptance facility Flexibility to increase regular contribution Top up payments: any amount.
88 per cent in the first two months (April-May) of the present financial year. according to the data published by the Insurance Regulatory and Development Authority (IRDA).we manage your investment. Due to today’s hectic lifestyle. 2. any time anything can shatter one’s dreams. Medical science has advanced by leaps and bounds in the last few decades. Sudden health problems could have deep hole in your pockets. Pure Protection Products help to keep one safe and secure during these trouble times. with a market share of 61. SBI Life Insurance features both individual and group products like: 1.these comprehensive plans help to meet your post retirement financial needs. SBI Life also offers some protection cum savings products and money back scheme products. SBI Life has taken the second position. Life Insurance Corporation (LIC) still retains the top rank among all the insurers. • 2. 1961 Health Products Financial planning is incomplete without planning health insurance. There’s a definite need to cover for health insurance to reduce the financial burden.3 Tax Benefits SBI Life Insurance Company has outperformed ICICI Prudential Life Insurance in terms of new business premium collection this year.2. lack of exercise we are at higher risk of contingencies of untimely serious illnesses. These products take inspiration from the endeavors of various industries and make your life easy. giving you maximum opportunity for growth while protecting your investments against adverse market conditions. Pure Protection Products.• Hassle free plan. improper diet. So. Pension Products. SBI also has products for brokers.nobody can predict future. 2. 3. Unit Linked Products. with Rs 28 .this is a single non participating product group that meets both the financial as well as insurance needs.7 Attractive Tax benefits under the Income Tax Act.
LIC was followed by ICICI Prudential. has a market share of 1. such as Bajaj Allianz Life. and then her or his dependants. The size of the life insurance market is Rs 11." he adds." says Mr. which still has the largest market share among the private life insurers as per capitalization and number of lives covered.000 crore and a paid-up capital of Rs 1.9 percent. This was primarily because of weak investor confidence and the flight to safety that the investors had adopted after the equity markets came crashing down. which started operations in 2001. with 12. SBI Life. The insurance companies’ ranking is often based on the new business premium coming out of the new policies that are sold. LIC was on the top position with a market share of 41 per cent on the new business premium collection in the previous year. SBI Life Insurance has a capital of Rs 2. all saying more or less the same negative things.323 crore. So. In the previous financial year. According to figures made available by IRDA. we can get a larger number of people to accept it.76 crore. Max New York Life and Reliance Life insurance. live well.06 percent of the market share.000 crore. insurance companies saw no growth in business when compared with the previous year.34 crore in the previous year compared with ICICI Prudential that had gathered Rs 951. with 8. though a large chunk of the money also comes from renewal premium.783. There are 14-15 players in the market. is there any other way to reflect what we wanted. insurance is about death. But why should one insure? "It's to make sure an individual. if insurance is portrayed in this light.94 crore new business premiums collected in this year. with a premium collection of Rs 483 crore and a market share of 5. Muralidharan. enjoy a market share of 3 to 4 per cent each. So we wondered.59 per cent up to May. Other leading life insurance companies. ICICI Prudential Life Insurance. On the surface. amounting to 9.2 per cent market share and SBI Life. has slipped to the third rank. SBI owns 74 per cent of the total capital with BNP Paribas Assurance holding the remaining 26 per cent.49 per cent in terms of 29 . "All insurance advertising offers a solution after implicitly raising the fear of death or uncertainty of retirement. SBI life had collected Rs 546. when the global financial crisis unfolded.
training program which can be done either with the physical appearance in the class room or the interest basis. Old and major player LIC has 67 per cent in terms of lives insured and a market share of 74.4. he says. The training period is of 25 days approx. Men and women both can work as an Agent. 2. A trainee can attend any session according to his comfort. A single person can be associated with other life insurance companies. Muralidharan. articulate people from even contemplating insurance. The test for the training program is also on line. If the trainee does not have enough time to devote in the classroom training. says Mr. A training program is there to train a person who wants to become an Agent.97 per cent in terms of number of people insured. On the basis of Internet the trainee has provided a login number along with the password through which he operated his login and completed his training as convenient.4.1 Project Profile Eligibility For Recruitment of an Insurance Agent Every person who has cleared higher secondary examination can become an agent other than a minor or the person who is convicted in any court for crime or any legal proceedings. 2. Most people under thirty think they are "indestructible.2 Scope of Insurance Agent 30 ." says Mr. The ads are "unpalatable" and "determine your death" and definitely discourage a lot of very suave. In the classroom training the trainee has to be physically present in the training session. There is 100 Hrs. There are difference sessions of training program. Insurance companies also face the challenge of getting younger people to invest. Each and every hour pass on the net under his login head will be count on his account.premium and 8.26 per cent. then there is another option left that is training on Internet.4 2. Muralidharan. This is only procedure to be an Insurance Agent. so our campaign aims to "remove the whiff of death" from it and make it a "happiness product".
For the youngsters it provides great platform to prove them.4. On the basis of their performance they can be recruited as unit manager. There is a source through which he can make money in a legal way that is insurance sector. It is the business in which you deal with you personal contacts and can gain extra income. the need of an insurance Agent who can guide the potential customers is growing. growing percentage of accident and fear of financial crisis everyone wants to secure his or her future. Being an insurance agent of SBI Life Insurance provides a legal mean to earn money which protects a person from earning through an illegal source which is harmful for society as well as him. Every person who has a family to survive wants to provide his family each and every possible comfortable thing. Becoming an insurance Agent provides him the legal source by which he can earn money with his current status.In the present scenario the living standard is becoming higher and higher every day. He wants to live a luxury life full of pleasure. Any person can be on a job at a time or can be on a business can’t fulfill his pleasure requirement. This business needs low investment and not of much effort. Insurance sector plays a vital role in assuring people about their future. colleges. 2. As the scope of insurance enhancing.3 Recruitment Process The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. to be higher qualified in a well recognized school. To fulfill all of his needs he has to earn more and more. He wants his children to be a well dressed. 31 . It’s all depending on your social contacts and your skills to convince people by helping them to suggest the product which suited them the most. As due to critical diseases. institutes and wants his children to go abroad for higher education.
Short-listing 6. Locating and developing the sources of required number and type of employees (Advertising etc). Prepare job description and person specification 3. Conducting the interview and decision making 2.Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. Conducting interview and decision making The recruitment process is immediately followed by the selection process i. Advertising the vacancy 4. the final interviews and the decision making. 32 . conveying the decision and the appointment formalities. Identifying the vacancy-The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. Short-listing and identifying the prospective employee with required characteristics.e. Arrange interviews 7. Managing the response 5. These contain: • • • • • • • • • Posts to be filled Number of persons Duties to be performed Qualifications required Preparing the job description and person specification. Arranging the interviews with the selected candidates. A general recruitment process is as follows: 1.
Steps in recruitment of Insurance Agents • • • • Approach to the likely person Appointment as per condition Discuss the topic Give the documents which includes:1. Questionnaire 33 . which is the proof of a legalized insurance Agent. Company’s plan 4. A person with high educating and well experience can be recruited after a personal interview and group discussion.2.Fig. As he clear the exam he provides a license. After the training program is completed the Insurance Agent has to appear for the pre-examination conducted by IRDA. which permits him to deal in his insurance business.1 Recruitment process The recruitment procedure of life insurance is very easy. Prospectus of the company 2. Brochure 3.
• • • •
Collect the document after its completion Forward it to project manager Feed it in the computer as the database Follow up as per conditions
Modes of Contact • • • • Personal Contacts References Phone Calls Guidance as per Unit Manager
E-Recruitment Many big life insurance organizations use Internet as a source of recruitment. E- Recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements. Advantages of e-recruitment are: • • • • • Low cost. No intermediaries Reduction in time for recruitment. Recruitment of right type of people. Efficiency of recruitment process. The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online recruitment”, it is the use of technology or the web based tools to assist the recruitment process. The tool can be either a job website like naukri.com, the organization’s corporate web site or its own intranet. Many big
and small organizations are using Internet as a source of recruitment. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements. The two kinds of e- recruitment that an organization can use is – • Job portals – i.e. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization. • Creating a complete online recruitment/application section in the company’s own website. Companies have added an application system to its website, where the ‘passive’ job seekers can submit their resumes into the database of the organization for consideration in future, as and when the roles become available. • Resume Scanners: Resume scanner is one major benefit provided by the job portals to the organizations. It enables the employees to screen and filter the resumes through pre-defined criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the “passers-by” applicants. Online recruitment helps the organizations to automate the recruitment process, save their time and costs on recruitments. Online recruitment techniques • Giving a detailed job description and job specifications in the job postings to attract candidates with the right skill sets and qualifications at the first stage.
• • •
E-recruitment should be incorporated into the overall recruitment strategy of the organization. A well defined and structured applicant tracking system should be integrated and the system should have a back-end support. Along with the back-office support a comprehensive website to receive and process job applications (through direct or online advertising) should be developed.
Sources of Recruitment Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. SOURCES OF RECRUITMENT
These agencies are particularly suitable for recruitment of 37 . Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures. Transfer: The employees are transferred from one department to another according to their efficiency and experience. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. The main advantage of this method is that it has a wide reach. 2. are a good source of recruiting well qualified executives. Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. 4. engineering colleges. engineers. Others are Upgrading and Demotion of present employees according to their performance. 2. This source is known as Campus Recruitment. Placement Agencies: Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee.Internal Sources 1. They provide facilities for campus interviews and placements. Press Advertisements: Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. 3. Educational Institutes: Various management institutes. 5. medical Colleges etc. 3. External Sources 1. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others. medical staff etc.
In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.4. Such callers are considered nuisance to the daily work routine of the enterprise. And the external factors 38 . 2. Recruitment at Factory Gate: Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. the office bearers of trade unions are often aware of the suitability of candidates. Also. But can help in creating the talent pool or the database of the probable candidates for the organization. Labor Contractors: Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs. 5.executives and specialists. More efficient among these may be recruited to fill permanent vacancies. Employment Exchange: Government establishes public employment exchanges throughout the country. Management can inquire these leaders for suitable jobs. 8. It is also known as RPO (Recruitment Process Outsourcing) 4.5 Factors Affecting Recruitment The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. These exchanges provide job information to job seekers and help employers in identifying suitable candidates. Employee Referrals / Recommendations: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. 6. 7. The internal forces or factors are the factors that can be controlled by the organization. Unsolicited Applicants: Many job seekers visit the office of wellknown companies on their own.
39 . Preferred sources of recruitment.e. Government policies on reservations.are those factors which cannot be controlled by the organization. It may involve organizational system to be developed for implementing recruitment programs and procedures by filling up vacancies with best qualified people. The internal and external forces affecting recruitment function of an organization are: Factors Affecting Recruitment Internal Factors The internal factors i. Need of the organization. Recruitment Policy: The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment program. Factors affecting recruitment policy • • • • • Organizational objectives Personnel policies of the organization and its competitors. the factors which can be controlled by the organization are: 1.
• Recruitment costs and financial implications. It also helps in determining the number of employees to be recruited and what qualification they must possess. 5. therefore. 2. 4. Human Resource Planning: Effective human resource planning helps in 3. which will handle its operations. then the company will have to depend upon internal sources by providing them special training and development programs. External Factors The external forces are the forces which cannot be controlled by the organization. The major external forces are: 1. 2. Growth and Expansion: Organization will employ or think of employing more personnel if it is expanding its operations. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company. Cost: Recruitment incur cost to the employer. 40 . Size of the Firm: The size of the firm is an important factor in recruitment process. Labor Market: Employment conditions in the community where the organization is located will influence the recruiting efforts of the organization. determining the gaps present in the existing manpower of the organization. Supply and Demand: The availability of manpower both within and outside the organization is an important determinant in the recruitment process. it will think of hiring more personnel. If the organization is planning to increase its operations and expand its business. If there is surplus of manpower at the time of recruitment. organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate. even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc will attract more than enough applicants.
4. Unemployment Rate: One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). Image of a company is based on what organization does and affected by industry. 41 . trade unions play important role in recruitment. To face the competition. 6. 5. For example finance was taken up by fresher MBA’s when many finance companies were coming up. For example. scheduled tribes. Competitors: The recruitment policies of the competitors also affect the recruitment function of the organizations. many a times the organizations have to change their recruitment policies according to the policies being followed by the competitors. Government of India has introduced legislation for reservation in employment for scheduled castes. physically handicapped etc. When the company is not creating new jobs. there is often oversupply of qualified labor which in turn leads to unemployment. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.3. Political-Social. Image / Goodwill: Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image.Legal Environment: Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. Also. This restricts management freedom to select those individuals who it believes would be the best performers.
Chapter – 3 Research Methodology Title of the Study Duration of the Project Objective of Study Type of Research Sample Size and Method of Selecting Sample Scope of Study Limitation of Study 42 .
1 Title of the Study “Recruitment Process in Insurance Company”. This study also shows why people join insurance sector. This research is done at Sikar. 3.2 Duration of the Project In June 2009. It is one which includes surveys and fact finding. The major purpose of such research is description of the state of affairs.RESEARCH METHODOLOGY 3. The duration of the research is approx 30 days.4 Types of Research I used a descriptive type of research. The study is showing recruitment process of any candidate in insurance company. 2. Support the organization ability to acquire. Increase the effectiveness of various recruiting techniques 3. retain and develop the best talent and skills. as it exists at present. 3. I have been assigned a project on recruiting process in insurance company with special reference to SBI Life Insurance as a part of our course curriculum.3 Objective of Study The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. enquiries of different kinds. Following are other objectives of recruitment process1. Methodology or process involving in the research followed during the course of summer training is as follows – Collection of data: This is an important aspect in formulating the objective of research process where the data is collected via two process: (i) Primary Sources and (ii) Secondary sources 43 .
Where the data is collected primarily by interviewing and personal observation and is original in nature and accurate to the considerable extent. Students a) Management students b) Law students 4. Primary sources.Where the data is obtained from some published and printed sources such as newspaper. The selection of respondent from each stratum was based on simple random sampling. Businessmen a) Retail shops b) Wholesaler c) Family business 3. and websites and so on.i. 1.5 Sample Size and Method of Selecting Sample To ensure complete representation the researcher identified target responded through a stratified random sampling process stratified the population into number of strata and sampling respondent is selected from each stratum. Secondary sources. 3. Insurance employees a) Unit Manager b) Team Leader c) Agents 2. Other Professions a) Engineers b) Doctors c) Bankers 44 . magazines. ii. I have covered 100 employees.
Random sampling. ii. Random sampling being adopted by me. Systematic sampling. There are two type of samplingi.Random sampling is a process of selecting the sample size randomly and no choice or preference to be made about the selection of respondents for the market survey and questionnaire to be put forth against him.It is a sampling where the limited number of selected respondents is figured out based on some criteria so that 45 . Here.1 Sample size Sampling is a process of obtaining a number of individuals taken a base for the entire population since entire population cannot be asked about the necessary objective upon which a questionnaire is put forth needed for the responses to be derived for the purpose of generation of facts and customer view point regarding their perception of particular product or services.3.S plesiz am e Insurance employees Students Businessmen Other professions Fig.
This may not reflect the exact position of the total market.7 • • • Limitation of Study The research area was restricted only within the Sikar city. which affects the mentality of respondents that is time consuming.A.6. To know the latest trend of the company. as per the curriculum.only those respondents can be asked for the purpose of filing questionnaire. 3.2 • • To the company The study would help SBI to know the Employee`s attitude towards the company. Questionnaire includes 16 questions.1 To the student• • • This study provides the student a practical insight of various The will also be able to develop in depth knowledge of The study is also required for the partial fulfillment of the activities and functions of the company. Human Research sector. This research is significant for: 3.6Scope of Study Every research is conducted to fulfill certain objectives and this objective in turn fulfill some purpose and is of significance for one or more then one party. requirement for the degree of M. Sample size was also so less. limitation of time means and resource forced for small size.B.6. 3. 46 . 3.
Chapter – 4 Facts and Findings Market Survey Role of the Development Agency 47 .
4.1 Market Survey Category of life insurance:- 60 50 40 30 20 10 0 L IFE IN S U R A N C E IS : 51 38 16 RESPONSES P ro te c tio n o f T ax b e n e fit d e v ic e h u m an as s e t v alu e ag ain s t u n c e rtain tyC A T E G O R Y B o th Fig.1 Category of life insurance 48 .FACTS AND FINDINGS 4.
3 Qualification for life insurance 49 . Essentiality of life insurance :- IS LIFE INSURANCE ESSENTIAL? 78 80 70 60 50 40 30 20 10 0 NO.4.2 Essentiality of life insurance Qualification for life insurance:- RESPONDENT'S QUALIFICATION 10% 33% Post graduate Graduate Senior se condary 57% Fig.4. OF RESPONDENTS 27 Yes RESPONSES No Fig.
Age qualification for life insurance :- AGE QUALIFICAITON: 6% 20% 39% 18-25 age group 25 – 35 age group 35 – 45 age group Above 45 age group 35% Fig.4.5 Causes of dissatisfaction 50 .4.4 Age qualification for life insurance Causes of dissatisfaction :- CAUSES OF DISSATISFACTION 10% 16% 23% Low employment Low earning / income Low status 17% 34% Huge capital investment All of the above Fig.
OF RESPONDENTS 60 50 40 30 20 10 0 Yes RESPONSES No 59 46 Fig.4.6 Career in life insurance Life insurance is noble service or not? :- IS LIFE IN SUR AN CE A N OB LE SER VICE? 100 NO.7 Life insurance is noble service or not? 51 . OF RESPONDENTS 80 60 40 20 0 Ye s No R ESPON SES 19 86 Fig.4. Career in life insurance :ABOUT CAREER IN LIFE INSURANCE 70 NO.
4. OF RESPONDENTS 40 30 20 10 0 Yes RESPON SES No 18 41 Fig.8 Life insurance as a career Growth of life insurance :IS LIFE IN SUR AN CE IN D USTR Y GR OWIN G? 92 100 RESPONDENTS 80 60 40 20 0 Ye s R ESPON SES No 13 52 . Life insurance as a career :- ACCEPT LIFE IN SURAN CE AS A CAREER ? 50 NO.
9 Growth of life insurance Life insurance: public or private :- 80 70 60 50 40 30 20 10 0 AGREE WITH PRIVATISATION OF LIFE INSURANCE? 74 RESPONDENTS 31 Yes RESPONSES No Fig.Fig. These tasks would include: • • • • Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members These tasks would be in addition to the usual duties of a policyholder such as: • • • Payment of premiums Reporting of claims Keeping policy holder information up to date 53 . SBI Life will be passing certain administrative tasks onto the Development Agency.4.10 Life insurance: public or private 4.4.2 Role of the Development Agency Due to the nature of the groups covered. By passing on these tasks the premium charged can be lower.
Chapter – 5 Analysis and Interpretation Market Survey Report Product Policy Queries 54 .
Life insurance is a service involving both these prerequisites as depicted by remaining 16 respondents.It is the significant step where the data collected and analyzed is interpreted in the forms of graphs and figures is depicted in the report called project report. Summarizing of data. Interpreting of data.Thereby necessary summary is prepared which is essential in the project report of the summer training being done under an organization.ANALYSIS AND INTERPRETATION Analyzing of collected data.1 Market Survey Report Category of life insurance Protection of human asset value against uncertainty Tax benefit device Both 51 38 16 From the survey it was drawn that life insurance is more a protection of human asset value against uncertainty (conferred by 51 respondents) where it is a tax saving option (being accepted by 38 respondents). A considerable skill and knowledge is involved in analyzing the data for the purpose of interpreting thereof.The data collected through market survey and published sources are then processed to obtained necessary inferences and findings for the purpose of achieving the objective as well as to derive necessary conclusion. 55 . 5.
Qualification for life insurance Post graduate Graduate Senior secondary 35 59 11 When further enquired about the qualification of respondents. 35% were belonging to 25 – 35 age group where as 20% to 35 . Essentiality of life insurance Yes No 78 27 It has been observed and applied as a Life insurance is an essential service and should be applicable to every one. Age qualification for life insurance 18-25 age group 25 – 35 age group 35 – 45 age group Above 45 age group 41 37 21 6 Further. it was found that 39% respondents were belonging to 18 – 25 age group. as favored by considerable 78 respondents where it is not essential to an extent by 27 respondents from the summer training project survey by putting forth the set questionnaire. it was found that 57% of the respondents were graduates. 56 . the age qualification for agency recruitment. 33% were post graduates and remaining 10% were of higher secondary out of total 105 respondents.45 age group and remaining 6% to above 45 age group.
86 respondents agreed and believe that insurance is a bettering service to human life and society as a whole where as 19 respondents show disagreement. 57 . When surveyed about life insurance as a noble service. Causes of dissatisfaction Respondents had different views about the dissatisfaction from the present status of working or occupation. Life insurance is noble service or not? Yes No 86 19 Indeed Life insurance is a noble business as it provides a needful financial support in the situation of fatal calamity where the family is deprived by the fact to live in future and sustains their living. Dissatisfaction has been depicted in a table below and graphically aboveLow employment Low status 24 18 Low earning All of the above 36 Huge capital investment 10 17 Career in life insurance? Yes No 59 46 When asked about whether they would like to know about a glorified career in life insurance agency where they can fulfill any and every desire of their life. It has been depicted that life insurance sector should be promoted at the wide extent as it contribute to the economy as a useful source beneficial for both nation as well as its citizens. 59 respondents agreed while 46 respondents said No and will see later sometime in future.
needs and living despite some fatal calamity that might or might not occur. People are highly dissatisfied from the earning. Financial services are growing at a tremendous pace as people are urging to make their investment in lucrative opportunities and therefore life insurance sector is playing a vital role in educating the people to make their investment which could secure their future. Agree with privatization of life insurance? Yes No 74 31 58 . Is Life insurance industry growing? Yes No 92 13 From all 105 respondents. 92 agreed that life insurance sector is a growing concern and will grow at a rapid pace in future where as 13 took as a mere stagnant industry. Life insurance as a career? Yes No 18 41 From the 59 respondents who agreed to know about the life insurance as a career. status and living standard they are sustaining at present and would definitely like to make some additional source of earning and for this agency for life insurance would prove a boon. 18 of them agreed to join HDFC Standard life insurance for agency and come to the company fore more information whereas 41 still took time to think and postponed to some future date.
Pure Endowment) 2. Savings for future (i. What is a Whole Life insurance product? Whole life insurance risk covers the death of the insured. nothing becomes payable. What are the basic elements of Life Insurance? The two basic elements to all individuals are a. whenever it may happen. 4.e. 5. Most policies provide a dividend to the policy holder which helps with retirement. Risk coverage (i. Risk coverage is for the entire 59 . Term Insurance) b. Here a lump sum amount is payable only if death occurs during a selected period.Among 74 respondents from 105 respondents favored the privatization of the life insurance and perceive that the people of India will know be more aware and knowledgeable with respect to life insurance than that in the past 50 years with the working of LIC. If the insured survives till the end of the selected period. Pure Whole Life Insurance: . There are two variations in the whole life insurance productsa.where premiums are payable continuously throughout the life of the insured till death. What is Term Insurance? Term Insurance covers “Risk” and Risk means “Death”. 3. What is Endowment product? The insurer will receive a lump sum amount either at death during the term or at maturity of the term.2 Policy Product Queries 1. It means that there is no fixed term under whole life insurance.e.
Chapter – 6 SWOT Strengths Weakness Opportunities Threats 60 .where premiums are paid for a limited and shorter period and the option of the insured or till death if earlier. Limited Payment Whole life Insurance: . What is a Guaranteed Surrender Value? The policy can be surrendered for cash only after the premiums have been paid for at least three years. Risk coverage is however throughout the life of the insured. The minimum surrender value allowed is equal to a certain percentage of the total amount of premiums paid excluding the premiums for the first year and all extra premiums or additional premiums for accident benefits that may have been paid. b. 5.duration of life and the life insured amount is paid on the happening of the death of the insured at any time.
Agency and Group Corporate.1 Strengths SBI Life has a unique multi-distribution model encompassing Bancassurance.SWOT 6. SBI Life extensively leverages 61 .
financial solidity. dynamism and excellence in its area of specialization. At present SBI Life has over 400 branch offices in India. The SBI Group owns more than 14. This rating reflects highest financial strength to meet policyholder obligations. the highest financial rating by CRISIL. 6. This rating reflects SBI Life’s fundamentally strong position and the prospect of meeting its policyholder’s obligations as highest. Low number of offices and network and number of life insurance agents. • • • More than 40. one of the India’s leading rating agencies. 62 . Has been assigned IAAA rating indicating highest claims paying ability. • Has been reaffirmed "AAA/Stable" rating. LIC is prevalent and sustains even today a major source of population. ambition. About SBI Life Insurance • • • Bagged the most coveted personal financial services award – Outlook Money NDTV Profit “Best Life Insurer” 2008. ethical practices.the State Bank Group as a platform for cross-selling insurance products.2 Weakness 1. Last year SBI Life became the first insurance company to get the highest rating of ’AAA/Stable" from CRISIL. 2. India’s leading rating agency.500 branches located across the country of India. innovation.000 insurance advisors work with SBI Life Insurance in India. Ranks among Global Top Three at Million Dollar Round Table (MDRT). domain expertise and meritocratic culture. We take pride in our track record of growth. SBI Life Insurance is known for qualities like trustworthiness. Join us for a rewarding and an enriching career. by ICRA.
Life insurance has captured its mere15 – 20% growth therefore a wide open untapped market is open to the company to develop.3 Opportunities 1. Still the numbers of companies are few and company has every capability to grow and forward its performance areas to the widest. 2.4 Threats 1. Rising real estate industry also pose threat as people are People are hesitant to invest and put their hard earned money to the private life insurance company with the fear of getting investing a bulk of their money over to that industry.3. share and securities also pose problems and threats to the working of the life insurance sector. banking services. grow and measure its success. 63 . 6. 3. Alternative financial services such as mutual fund. 6. lost. Illiteracy and unemployment also pose threat. 5. 4. Belief towards LIC as it is a government corporation phobia is continue to surmount the people of India despite lots of flaws and development and liberalization of life insurance. 2. Lack of knowledge and expertise.
Chapter – 7 Conclusion Conclusion CONCLUSION 64 .
committed individuals into the organizations and ensure that the provision of government services to the public is timely and effective. 65 . those mechanisms that support its use will assume greater popularity. What I taught in the management institute utilized them fruitfully leading to the best advantage to the company and to the best experience for mine. With the growing financial sector I would like to opt this industry for my future career advancement and as an opportunity to service this industry. corporate culture under which is operating the functions. the strategies are manual but. as automated methods become more pervasive. new approaches to recruitment are being used. Life insurance is a noble service which is very important for every citizen to learn and realize its importance because this is the only source which can remain the status where one is with the family bread earner and ever when he is not. Whatever the strategies selected for use. the objective is to recruit the most qualified. that the goods are of consistent high quality and that the organizations achieve the objectives for which they have been established. its importance and applicability as well as undertook the task to recruit capable life insurance advisors which is conducive for the company to grow with more prosperity. SBI life insurance company under which I gained a significant knowledge with respect to life insurance.Summer training is a best example for a trainee to learn about the company working. In many territories. In all Public Service jurisdictions.
Chapter – 8 Recommendation and Suggestions Recommendations Suggestions RECOMMENDATION AND SUGGESTIONS 66 .
6. Need to train and develop life insurance agents with more comprehensive knowledge and skills to counter every queries of the 67 .RecommendationsFollowing are suggestions made for the benefits and augmentation of the sound working of the company –SBI life insurance 1. Also. It is also suggested that skilled management graduates need to be places on sales and marketing of financial services that can render their best ideas for the accomplishment of the company goals and objectives to the best extent. Life insurance Products should be made flexible so as to suit every section of society. 5. location of more centers for offices of the company is established sop that company may grow its network. 4. 3. Need to train and develop life insurance agents with more comprehensive knowledge and skills to counter every queries of the customer. It is suggested that company should not left any stone unturned towards sound advertisement and promotional measures on every section whether it is printed. customer. media or air via radio. 2. care need to be taken that every customer’s grievance There should be an expansion measure for more offices and should be met with delight whether before purchase or after sales. SuggestionsFollowing are suggestions made for the benefits and augmentation of the sound working of the company –SBI life insurance: 1.
Also. 68 . There should be an expansion measure for more offices and location of more centers for offices of the company be established sop that company may grow its network. The advisors should be made aware and educated so that they can extend their services not only in terms of collection of premium checks from the customer but also to educate them about the insurance and the latest nontraditional plans. It is suggested that company should not left any stone unturned towards sound advertisement and promotional measures on every section whether it is printed. It is also suggested that skilled management graduates need to be places on sales and marketing of financial services who can render their best ideas for the accomplishment of the company goals and objectives to the best extent. 6. 3. 4. media or air via radio. Life insurance Products should be made flexible so as to suit every section of society.2. 5. All the company should come out of a unit link product that should aid every selection of the society. 8. 7. care need to be taken that every customer’s grievance should be met with delight whether before purchase or after sales.
What do you mean by life insurance? a) Protection of human asset value against uncertainty b) A sum received after death c) Both Q. Do you come under: a) 18-25 age group b) 25 – 35 age group c) 35 – 45 age group d) Above 45 age group Q.3.APPENDIX Questionnaire: Q. Do you think life insurance is essential for every one? a) Yes b) No Q.5.1. What is your qualification? a) Post graduate b) Graduate c) Senior secondary Q. Would you like to know about a career in life insurance advisor ship where you can fulfill every desire of your life? a) Yes b) No 69 .2.4.
Would you like to become or opt for life insurance advisor under esteemed and prospering organization SBI Life insurance? a) Yes b) No Q. Do you perceive that life insurance business is a noble service oriented business? a) Yes b) No Q. …………………………………………………………… PERSONAL INFORMATION: Name: . Do you agree that the life insurance business is a growing industry and will grow and rapid pace in future? a) Yes b) No Q.…………………………………………………………… 70 .6. …………………………………………………………… 3.Q.9.7.……………………………………………………………… Location: .8. …………………………………………………………… 2. Do you favor the privatization of life insurance by the Government where a significant number of companies now in the market for life insurance to the customers with the alliance of multinationals? a) Yes b) No SUGGESTION: 1.
a cash bonus can be withdrawn when declared. a municipality. 10. This application along with information from a medical examination. is generally declared every year. A reversionary bonus can be encashed only on maturity of the policy. 4. various asset classes life insurance proceeds upon the death of the insured. 9. The amount is linked to the profits earned by the insurer. Budget: It is a tool used to monitor and control expenditures 71 . 3. 2. 5.………………………………………………………… Glossary: 1. By buying a bond you loan money to Bonus: The amount paid as return in a ‘with-profit’ policy. state or the Central Government. Accident Benefit: A rider or an add-on with a life policy. The bonus. 7. compensates a policyholder in the event of death or injury by accident. 8. there are two kinds of bonuses – reversionary and cash. Depending on the time of withdrawal. if taken. a company. expressed as a percentage of the sum assured. and purchases. from your physicians. payments to an individual in exchange for a premium or a series of premier. Application for insurance: This is the form on where you state information and answer questions from the insurance company about yourself and your history. 6. any hospitals you may have visited and investigation are what's used by the insurance company to decide whether or not to offer you life insurance and at what rate. It Annuity: An investment option that makes a series of regular Appreciate: To grow in value Asset: Everything owned or due to a person Asset allocation: How your investments are spread across Beneficiary: The person(s) named in the policy to receive the Bond: It is like an IOU.Occupation: .
9 Fig.4. 9.1 Page No.10 42 42 43 43 44 44 45 45 46 72 .3.4.8 Fig. Title Recruitment process Sample size Category of life insurance Fig. 26 38 41 4.2.6 Fig. 8.7 Fig. Essentiality of life insurance Qualification for life insurance Age qualification for life insurance Causes of dissatisfaction Career in life insurance Life insurance is noble service or not? Life insurance as a career Growth of life insurance Life insurance: public or private Fig.3 Fig.2 Fig.4.4. 188.8.131.52 Fig. 2.4 Fig.4.4.4. 11.5 Fig. No. 7. 10. 6.4. Fig. No.List of Figures: S. 5. 3. 12.1 Fig.
Sheel Write Well (P) Ltd.P..com www.org www. New Delhi Mathew M. RBSA Publishers Jaipur Handa Sunil : Insurance.in www. 3rd Edition KOTLER PHILIP: Marketing Management” 11th Revised edition.R.: Research Methodology Management.: Statistical Methods “Thirteen revised edition.businessconnect.sbilife.in www. Aswattappa : Human Resource Management MAGAZINES: • • • • India Today Business World Business Economics LSE’s Magazine REFERENCES: • Websiteswww. 2002 GUPTA S. : Insurance.sbiindia.co.BIBLIOGRAPHY Following are sources which helped me during my summer training- BOOKS: • • • • • • • KOTHARI C. Jaipur K.com 73 .irdaindia.co. Prentice Hall of India.J.liccouncil.in www.co.org www.netpnb.google. 2001 Kotler Philip : Marketing Management.
com finance.www.org/wiki/consumer_psyche NEWSPAPER: • • • • • The Economics times The Hindu Times of India Business line D.N.com business.nseindia.A OTHERS: • • IRDA annual report.mapsofindia.com www.com www.pnbindia. 2006-07and 2007-08 Manual of Insurance by Bharat Law House 74 .bseindia.wikipedia.scribd.com http://en.indiamart.com www.
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