PREFACE

Risk is a very integral part of our life and they come from different directions. Sometime we can predict them sometime we can't. Sometime they cause huge damage to our life and of our family. As such it becomes vital for us to safe guard against those risks. That was the most basic reason behind emergence of the life insurance industry. In present ear, life insurance industry is facing dramatic changes, ranging from developments in computerization and telecommunication to the emergence of a global market place. However the most important factor that may be considered both as threat and an opportunity is the increasing competitive nature of services. Consumers are increasingly becoming scared than the capital. Existing customers are difficult to maintain and new customers are hard to get, so in a sense retaining existing customer is becoming much more important than gaining new ones for an insurance company. Keeping this in mind this study named "the study of promotional strategy and its effectiveness for existing life insurance products of Bharti AXA" was under taken with the underlying aim to recommend some strategies and tactics to the organization so as to help them in improving their promotional pattern and channel quality and hence their number of customer. Procedure adopted was personal interviews through structured

questionnaires. Findings were depicted through simple tables and pie charts. The

entire report has been written in a lucid language and use of technical jargons has been kept to the minimum possible. My efforts shall be highly rewarded if this study proves helpful to students and academics to get a glimpse of the subject and also to carry out further research work in this area. At last it has to be admitted that due its sheer look forward for suggestions from all readers so as to improve the quality in my further endeavors.

LIFE INSURANCE AN INTRODUCTION

(a) Need and logic Every human life has its value and this is the one thing, which can neither be kept saved from all uncertain incidents nor be kept away from the certain death, which is also uncertain in terms of tits occurrence. But one thing, which we can do, is that we can minimize the loss the family of the person who lost his or her life due to any uncertain by covering the risk of his or her life through a life insurance policy. Life insurance has no competition from any other business. Many people think that life insurance is an investment or a mean of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. This is so in a fixed deposit in the bank, in national saving certificates, in mutual funds and all other saving instruments. If the money is invested in buying shares and stocks, there is the risk of the being lost in the fluctuations of the stock market. Even there is no loss; the available money at any time is the amount invested plus appreciation. In life insurance, however, the available is not the total of the savings already made (premium paid), but the amount one wished to have at the end of the saving period (which is the next 29 or 30 years). The fund is secured form the very beginning one is paying for it later, out of the saving. One has to pay for it only as long as one lives or for a lesser period if so chosen. There is no

other scheme, which provides this kind of benefit. Therefore life insurance has no substitute. (b) Scope For economic development, investments are necessary. Investments are made out of savings. A life insurance company is an major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These saving are channeled into investments for economic growth. All good life insurance companies have huge funds, accumulated through the payments of the small amounts of premium of the individuals. These funds are invested in ways that contribute substantially for the economic development of the countries in which they do business. The private insurers in India are new and had not built up funds in 2002. But, in course of the time, they also would be directly and indirectly contributing to the country to the country's economic development.

GENESIS OF INSURANCE IN INDIA

India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers' contacts. Insurance in India has evolved over time heavily drawing form other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical

information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decide to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident Societies : 245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the was set up. This was the first company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct of ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business

(Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1st 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose

recommendation for reforms in the insurance sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was
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constituted as an autonomous body to regulate and develop the insurance. The IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders' interest. In December, 2000 the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country's GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long-term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

AN OVERVIEW ON BHARTI AXA LIFE

Insurance company Limited Bharti AXA Life Insurance is a joint venture between Bharti, one of India's leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake of Bharti and 26% stake of AXA.

Joint Venture Partners

Bharti Enterprises Bharti Enterprises is one of India's leading business groups with interests in telecom, agri business, insurance and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of India's leading private sector providers of telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line, broadband and entermprise services. Bharti Airtel was ranket amongst the best performing companies in the world in the Business Week IT 100 list 2007. Bharti Teletech is the country's largest manufacturer and exported of telephone terminals.

COMPANIES UNDER THE UMBRELLA OF BHARTI ENTERPRISES

Bharti Airtel Bharti Teletech Limited Telecom Seychelles Ltd Bharti Telesoft Ltd Bharti Del Monte India (P) Ltd Bharti Del Monte India (P) Ltd Bharti Retail (P) Ltd Bharti AXA General Insurance Bharti AXA Investment Mangers Pvt. Ltd Bharti Resources Jersey Airtel Ltd Bharti Foundation

AXA Financial Protection AXA Group is a worldwide leader in Financial Protection and wealth management. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying

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earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million. The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA. AXA Groups has a strong long-standing history. The group can trace its roots right back to the 18th century. After a succession of mergers, acquisitions and name changes involving some of the leading insurance companies in the UK and around the world, the name AXA was first introduced in 1985.

Bharti AXA Life Insurance Bharti AXA Life Insurance Company Limited kicked off operations in August 22, 2006 with the opening of its first branch office in Hyderbad. Bharti AXA has laid out aggressive plans for expansion and will be launching operations across the country in the coming months. The company is in the process of putting in place a robust product architecture that will cater to different segments of the India populace. Besides the metros and mini metros, Bharti AXA will be well represented in the tier 2 and upcountry markets. Chairman : Mr. Sunil Bharti Mittal CEO : Mr. Nitin Chopra

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II- Business Focus

Vision The vision if the company is to be a leader and the preferred company for financial protection and wealth management in India.

Values Professionalism Innovation Team Spirit Pragmatism Integrity

Strategy To achieve a top 5 market position in India through a multi-distribution multi-product platform. To adapt AXA's best practice blueprints as a sound platform for profitable growth. To leverage Bharti's local knowledge, infrastructure and customer base. To deliver high level of shareholder return. To build long term value with our business partners by enhancing the proposition to their customers. To be the employer of choice to attract and retain the best talent in India. To be recognized as being close and qualified by our customers.

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Strategic differentiators Strong partner Bharti-provides access to customer base of more than 20 million. Multi channel execution capability. Current Asia product range, which is a strong match to products, sold to the mass and mass affluent. Global scale providing cost effective and speedy re-use of systems, products and business capability.

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PRODUCT PORTFOLIO

Bharti AXA provides all basic life insurance policies for all categories of people within its limited range of life insurance products which are follows.

Bharti AXA Dream Life Pension (Regular Premiun) A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurance's unique pension product ensures that the retirement life of the policyholder is dream Life. Parameter Minimum age at entry Maximum age at entry Minimum age at vesting Maximum age at vesting Premium mode Minimum premium Eligibility 18 years 55 years 45 years 65 years Yearly, Half-yearly,

quarterly

and

Monthly Rs 12, 000 for yearly, Rs 6,000 for half yearly, Rs 4,500 for quarterly and 1500 for monthly. 10 years Rs 2,500

Minimum policy term Minimum To up premium

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Bharti AXA Dream Life Pension (Single Premium) A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurance's unique pension product ensures that the retirement life of the policyholder is dream Life.

Parameter Minimum age at entry Maximum age at entry Minimum age at vesting Maximum age at vesting Premium mode Minimum premium Minimum policy term Minimum Top up premium

Eligibility 18 years 55 years 45 years 65 years Single Single premium : Rs 25,000 10 years Rs 2,500

Bharti AXA Life Aspire Life (Unit Linked Endowment Product) Aspire Life helps people to create a pool of wealth to meet their long-term needs, while also provides adequate protection in case the need arises. Parameter Minimum age ate entry Maximum age at entry Eligibility 3 years (70-term), i.e. 55 years, 50 years and 45 years. For a term of 15 years, 20 years & 25 years respectively Maximum age at maturity 70 years Premium mode Yearly, half- yearly & monthly Minimum premium Rs 18,000 per annum Minimum policy term 15 years, 20 years and 25 years Minimum Top up premium Rs 5,000 Bharti AXA Life Invest Confident (Unit Linked Endowment Product) It is a single premium product, which is suitable for those people who want to invest their money at a time for a longer period and better return. Parameter Minimum age at entry Eligibility 90 days

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Maximum age at entry Age at maturity Policy benefit period Single premium Basic sum assured Top up sum assured Accidental death benefit

65 years Maximum 70 years Minimum 5 years Maximum 70 years minus age at entry Minimum Rs 1,00,000 500% of the single premium 125% of top up premium Rs 5,00,000 how ever at no point this benefit will be greater than three times basic death benefit Minimum Rs 10,000 Maximum amount : initial single premium

Minimum Top up premium

Bharti AXA Life Wealth Confident A unit-linked investment cum protection policy Parameter Minimum age at entry Maximum age at entry Maximum age at maturity Policy benefit period Premium modes Minimum Premium Eligibility 18 years 60 years 70 years 10 years Yearly, half-yearly,

quarterly

and

monthly Rs 24,000 for yearly, Rs 12,000 for half yearly, Rs 6,000 for quarterly and Rs 2,000 for monthly 125% of top up premium Rs 5,00,000 how ever at no point this benefit will be greater than three times basic death benefit Rs 5,000

Top up sum assured Accidental death benefit

Minimum Top up premium Bharti AXA Life Future Confident

A unit-linked policy, which offers comprehensive protection along with wealth creation in the long term.

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Parameter Minimum age at entry Maximum age at entry Maximum age at maturity Premium mode Minimum premium

Eligibility 0 years 60 years 70 years Yearly, half-yearly, quarterly & monthly Rs 10,000 for yearly, Rs 5,000 for half yearly, Rs 2,500 for quarterly and Rs 834 for monthly 70 years less age at entry Rs 500 The sum of all the rider premiums cannot be more than 30% of the base product premium

Maximum policy term Minimum Top up premium Rider premium

Bharti AXA Life Future Confident-II A unit-linked product, which offers, enhanced protection along with wealth creation in the long term. Parameter Minimum age at entry Maximum age at entry Maximum age at maturity Premium mode Minimum premium Eligibility 0 years 60 years 70 years Yearly, half-yearly, quarterly & monthly Rs 10,000 for yearly, Rs 5,000 for half yearly, Rs 2,500 for quarterly and Rs Maximum policy term Minimum Top up premium Rider premium 834 for monthly 70 years less age at entry Rs 500 The sum of all rider premiums cannot be more than 30% of the base product premium Bharti AXA Life Save Confident

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Traditional money back insurance product for long-term savings. Parameter Minimum age at entry Maximum age at entry Maximum age at maturity Minimum premium Policy benefit period Premium payment term Eligibility 12 years 55 years 70 years Rs 6,000 for yearly mode 15 years 12 years

Bharti AXA Life Secure Confident A long Term Insurance (term plan) Parameter Minimum age at entry Maximum age at entry Maximum age at maturity Minimum premium Policy benefit period Premium payment term Critical illness benefit rider Eligibility 18 years 55 years 60 years Rs 1,500 for yearly mode, Rs 780 halfyearly, Rs 135 for monthly 5 years, 10 years, 15 years, 20 years and 25 years Equal to policy benefit period The sum of all the rider premiums, excluding the critical illness benefit rider premium, should not exceed 30% of the base policy premium. The premium for critical illness benefit rider should not exceed base policy premium

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INDIAN INSURANCE INDUSTRIES

Insurers Insurance industry, as on 1-4-2000, comprised mainly two players : the state insurers : 1- Life Insurers Life Insurance Corporation of India (LIC) 2- General Insurers General Insurance Corporation of India (GIC) (with effect from Dec. 2000, a National reinsurer) GIC had four subsidiary companies, namely (with effect from Dec. 2000), these subsidiaries have been de-linked from the parent company and made as Independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New Assurance Company Limited 3. National Insurance Company Limited 4. United India Insurance Company Limited

Insurance Industry in the year 2000-01 had 16 new entrants, namely : Life Insurers 1. HDRC Standard Life Insurance Company Ltd. 2. MAX NEW YORK Life Insurance Company Ltd. 3. ICICI Prudential Life Insurance Company Ltd. 4. Kotak Mahindra Old Mutual Life Insurance Ltd.

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5. Birla Sun Life Insurance Company Ltd. 6. Tata Aig Life Insurance Company Ltd. 7. SBI Life Insurance Company Ltd. 8. ING Vysya Life Insurance Company Private Ltd. 9. Bajaj Allianz Life Insurance Company Ltd. 10. Metlife India Insurance Company Pvt. Ltd.

General Insurers 1. Royal Sundaram Alliance Insurance Company Ltd. 2. Reliance General Insurance Company Ltd. 3. IFFCO Tokioo General Insurance Company Ltd. 4. TATA AIG General Insurance Company Ltd. 5. Bajaj Allianz General Insurance Company Ltd. 6. ICICI Lombard General Insurance Company Ltd.

Insurance industry in this year, so far has 5new entrants; namely : Life Insurers 1. AMP Sanmar Life Insurance Company Ltd. 2. Aviva Life Insurance Company Pvt. Ltd.

General Insurers 1. Cholamandalam General Insurance Company Ltd. 2. Export Credit Guarantee Corporation Ltd. 3. HDFC-Chubb General Insurance Company Ltd.

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Insurance Industry in this year, so far has 1new entrants; namely : Life Insurers 1. Shriram Life Insurance Company Ltd.

Insurance Business Insurance business is divided into four classes Life Insurance Fire Insurance Marine Insurance and Miscellaneous Insurance Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is : Insurance Act, 1938 and Insurance Regulatory & Development Authority Act, 1999. New Products have been launched by life insurers. These include linkedproducts.

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OVERVIEW ON LAW OF INSURANCE

Life Insurance The contracts of life insurance in India are governed by the Insurance Act. 1938 and the Life Insurance Corporation Act, 1956. The life insurance business in India was nationalized on January 19, 1956. And on September 1, the same year, under Sec. 3 of the Life Insurance Corporation Act, 1956, the Life Insurance Corporation of India came into being. The nationalization of life insurance is a vital link in the process of widening and deepening of all possible channels of public savings for the development of the country. It is an important step towards mobilizing savings.

Life Insurance Contact A contract of life insurance is a contract by which the insurer, in consideration of the payment of certain sums, called premiums, undertakes to pay a certain sum of money on the death of a person whose life is insured, or on the expiry of a certain period, whichever is earlier. The premium may be paid in a lump-sum or by periodical installments.

Types of Policies There are various types of policies of life insurance. These are issued to meet the varying and special needs of the members of the community. The main and important types are as follows :

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1. Endowment policy It provides for payment of the sum assured at the end of a specified term of years or at death should it occur sooner. This is the most popular form of life insurance.

Children's endowment policy Such a policy may be taken for the provision of the marriage of the children when they attain a certain age. It may also be taken to ensure for the education of the children after the death of the life assured by means of annuity payment payable at the end of the selected term of years.

2. Whole-life policy Under this policy, premiums are payable throughout the lifetime of the life assured. The sum assured becomes payable only on the death. It is the cheapest from of policy.

3. Limited-payment life policy In this case, premiums are payable for a selected period of years or until death if it occurs within this period. The assured knows how much amount he will be required to pay, no matter how long he lives. This policy resembles endowment policy as regards payment of premiums, the term being fixed in both the cases. But in case of limited-payment policy, the amount becomes payable only on the death of the assured.

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4. Joint life policy He sum assured under a joint life policy (on two or more lives) is payable at the end of the endowment term or on the first death of any of the lives assured, if earlier. Partnership firms usually go in for such policies to provide for the return of the capital of the deceased partner.

5. Convertible whole-life policy This policy is designed to meet the needs of young persons who are on the threshold of their career and have prospect of increase in income after some years. In the earlier years the premiums are payable at a lower rate. Then after the expiry of a certain period, the assured is given an option to convert the policy into an endowment policy. If the option is not exercised, the policy continues as a whole-life policy with premiums ceasing at a certain age.

6. Anticipated policy This is a policy which provides for payment of the sum assured at the end of specified intervals, say 20 per cent at the end of first five years, 20 per cent at the end of next five years and the balance at the end of the ter of the policy. Should death take place earlier, the full amount of the policy becomes payable.

7. Annuity policy This a policy under which the amount is payable by the insurer not in one lump-sum, but by monthly, quarterly, half-yearly or annual installments after the

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assured attains a certain age. The assured may pay the premiums regularly over a certain period or he may pay a single premium at the outset. The annuity policy is useful to those who desire to provide a regular income for themselves and their dependants after expiry of a specified period.

8. Sinking fund policy This policy is very useful for companies for redeeming their debentures or paying off their loans. A fixed amount is paid as premium annually. It goes on accumulation at a certain rate of interest. At the end of the required period, the amount of the policy is paid to the company. Out of the amount so received, the company redeems its debentures or pays off the loan. Such policies may also be taken for making a provision for the replacement of an asset after a period time.

9. Janta policy It is a policy which covers risk of death by accident for one year only. The premium charge is very nominal and in case of death by accident a fixed amount is payable.

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Fire Insurance
The law relating to fire insurance in India is contained in the Insurance Act, 1938 and the General Insurance Business Nationalization Act, 1972. This is subject to the provisions of the Indian Contract Act, 1872 and the Indian Stamp Act, 1899. Wherever the law is silent, the English Law and the principles established by Indian decisions apply. The general insurance business was nationalized on 13th May, 1971.

Contract of fire insurances A contract of fire insurance is a contract whereby the insurer undertakes, in consideration of the premium paid, to make good any loss or damage caused by fire during a specified period. The contract specifies the maximum amount which the assured can claim in case of loss. The amount is fixed by the parties at the time of the contract. It is, however, not the measure of the loss. The loss can be ascertained only after the fire has occurred. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed by the parties.

Characteristics of a fire insurance contract 1. it is a contract of indemnity. The assured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject matter is insured.

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2. It is a contract of uberrimae fidei. The assured and the insurer have to disclose everything which is in their knowledge and which will affect the contract of insurance. 3. The assured must have insurable interest in the subject-matter both at the time of insurance and at the time of loss. The insurable interest must be capable of valuation in terms of money. 4. The risk covered by a fire insurance contract is the loss resulting from fire or some cause which is the proximate cause of the loss. 5. It is subject to the principles of subrogation and contribution. 6. It is contract from year to year. It comes to an end after the expiry of the year. It can, however, be renewed if the assured pays the premium during the days of grace.

Types of fire policies The main types of fire policies are as follows :

1. Specific policy It is a policy which covers the loss of the assured up to a specific amount which is less than the real value of the property. Specific policy is a case of under-insurance. To check under-insurance, the insurers usually insert average clause in the policy in which case the policy is known as average policy.

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2. Comprehensive policy It is a policy which covers losses against risks like fire, theft, burglary, third party risks, etc. such a policy is also known as 'all-in-one' policy. It may also cover loss of profits during the period the business remains closed due to fire.

3. Valued policy It is a policy in which the amount payable in case of loss is fixed at the time the policy is taken. In the event of loss, the fixed amount is payable irrespective of the actual amount of loss. A valued policy can be legally challenged because it is not a contract of indemnity.

4. Floating policy It is a policy which covers property at different places against loss by fire. It might, for example, cover goods lying in two warehouses at to different places. It is always subject to average clause.

5. Replacement or reinstatement In order to prevent fraudulent devices by the assured. The insurers usually insert a clause in the policy, called re-instatement clause, whereby the insurer undertakes to pay the cost of the replacement of the property damaged or destroyed by fire. Thus, insurer may reinstate or replace the property instead of paying cash. The modes of discharge by the insurer are alternative, and if the

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insurer selects one, he cannot afterwards change to the other. If he offers to pay, he cannot afterwards claim to reinstate, and vice versa.

Marine insurance Marine insurance is an integral part of the present-day commerce. The law relating to it is codified in the Marine Insurance Act, 1963. It is based on the English Marine Insurance Act, 1906, which is itself based on the Law Merchant. Marine insurance contracts are governed by the Indian Contract Act, 1872, the Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972 and largely by the Marine Insurance Act, 1963.

Contract of Marine Insurance A contract of marine insurance is a contract whereby an insurer undertakes to indemnify the assured against marine losses, that is to say the losses incidental to marine adventure (Sec. 3). The contract may, by its express terms or by usage of trade, be extended so as to protect the assured against losses on inland waters or on any land risk which may be incidental to any sea voyage [Sec. 4(1)].

Marine adventure There is a marine adventure when : 1. any ship, goods or movable property (i.e., insurable property) is exposed to maritime perils ;

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2. the earning or acquisition of any freight, passage money, commission, profit or other pecuniary benefit, or the security for any advances, loans or disbursements is endangered by the exposure of insurable property to maritime perils ; 3. any liability to a third party may be incurred by the owner of, or other person interested in, insurable property by reason of maritime perils [Sec. 2(d)]. 'Insurable property' means any ship, goods or other movables which are exposed to maritime perils [Sec. 2(c)].

Maritime perils 'Maritime perils' mean the perils consequent on, or incidental to, the navigation of the sea. In other words, they mean perils of the sea, fire, war perils, pirates, rovers, thieves, captures, seizures, restraints and detainments of princes and peoples, jettisons (throwing of goods overboard with a view to saving the residue of the ship and cargo), and barratry (fraudulent practices of a ship to the prejudice or the owners) and any other perils which are either of the like kind or may be designated by the policy [Sec. 2(e)]. In simple words, 'perils of the sea' mean all perils and misfortunes of a marine character or incidental to a ship which the underwrite in a marine insurance takes upon himself. They include fortuitous accidents or casualties of seas beyond the ordinary action of wind and wives and which even reasonable skill, diligence and care cannot guard against. They cannot be foreseen as the

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necessary or ordinary incidents of voyage. They include damage caused by violence of the winds or waves, storms, fog, rough weather, lightning, stranding, icebergs, rocks, collision, etc. But ordinary wear and tear caused by the normal action of the wind or waves is not included in the 'perils of the sea'.

The following losses are covered by the perils of the sea : 1) A loss by a vessel striking upon a sunken rock. 2) A loss by foundering, owing to a ship coming into collision with another ship, even, when the collision results from the negligence of that other ship. 3) A loss brought about by negligent navigation. It is covered, if that which immediately caused the loss was a peril of the sea, even if the negligence is that of the assured himself so long as it does not amount to willful misconduct. 4) Damage caused to rice insured against fire and perils of the sea by heating due to the closing of ventilators to prevent the incursion of sea water in rough weather. 5) Damage caused to cargo by rats making a hole in the bottom of a ship and sea water entering the ship through the hole. Likewise if an engineer opens the sea cock with the intention of filling the ballast tank and accidentally opens the wrong valve and thus sea water enters the ship and damages the cargo, the loss is caused by the perils of the sea. The following losses are, however, not covered by the perils of the sea :

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a) Loss occasioned by natural chemical action of salt water. b) Damage by rats. c) Action of worms on timber. d) Death of cattle due to want of fodder, voyage having been lengthened by the captain of the ship.

Types of marine policies The marine Insurance Act deals with the follows types : 1. Voyage policy Where the contract is to insure the subject-matter at and from or form one place to another or others, e.g., Mumbai to New York or Chennai to London, the policy is called a 'voyage policy' [Sec. 27(1)]. The policy may over the risk 'from a port' or 'at and from a port'. If the policy is 'from a port', it covers the risk only when the ship sails from that particular port. But a policy 'at and from a port' protects the subject-matter insured both while the ship is at the port of departure and also from the time of the sailing of the ship on her voyage.

2. Time policy Where the contract is to insure the subject-matter for a definite period of time, the policy is called a 'time policy' [Sec. 27(1)]. The ship may pursue any course it likes ; the policy would cover all the risk from the perils of the sea for a stated period of time. A time policy cannot be for a period more than a year [Sec. 27(2)]. It may, however, contain a 'continuation clause' providing that if at the

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end of the period, the ship is yet at sea, the policy will continue for a reasonable time thereafter till the ship arrives safely at the port of destination. If the risk attaches under the 'continuation clause', a fresh policy duly stamped covering the period in question shall have to be take before the assured can claim any loss under the policy.

3. Mixed policy It is a combination of 'voyage' and 'time' policies. It is a policy which covers the risk during a particular voyage for a specified period. Such a policy contains a contract for both voyage and time, as for example, 'from Mumbai to Manchester for six months'. Such policies are governed by the combined application of the rules relating to time and voyage policies. Thus under such a policy the liability of the underwriter arises only for a loss occurring : a) Within the period of insurance, and b) During the course of the insured voyage.

4. Valued policy It is a policy which specifies the agreed value of the subject-matter insured [Sec. 29(2)]. In the absence of fraud or misrepresentation, this value is regarded as conclusive of the insurable value of the subject-matter intended to be insured between the assured and the insurer, whether the loss is total or partial. The effect of fixing the value in a valued policy is to make the value conclusive as between the assured and the insurer.

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5. Open or unvalued policy It is a policy which does not specify the value of the subject-matter insured. It leaves the value of the loss to be subsequently ascertained, subject of course to the limit of the sum insured, in case of loss (Sec. 30).

6. Floating policy It is a policy which describes the insurance in general terms. It only mentions the amount for which the insurance is taken out, and leaves the name of the ship or ships and other particulars to be defined by subsequent declarations. The subsequent declaration or declarations may be made by the assured by endorsement on the policy or in other customary manner. Unless the policy otherwise provides, the declarations must be made in the order of dispatch or shipment. They must, in the case of goods, comprise all consignments within the terms of the policy, and the value of the goods or other property must be honestly stated, but an omission or erroneous declaration may be ratified even after loss or arrival provided the omission or declaration was made in good faith. Further, unless the policy otherwise provides, where a declaration of value is not made until after notice of loss or arrival, the policy must be treated as an unvalued policy as regards the subject-matter of that declaration. The practice of taking out floating policies has come into vogue owning to the difficulty of knowing by what ship or ships the goods are to be shipped and

34

the details of the goods to be shipped. In such case, the floating policy proves to be of immense use.

7. Wagering policy A contract of marine insurance is deemed to be a wagering contract where the assured has no insurable interest, and the contract is entered into with no expectation of acquiring such an interest. Sec. 6 specifically provides that every such contract is void. A policy containing such a contract is called a wagering policy, e.g., P.P.I. (Policy Proof of Interest) or Honour Policies. In case of these policies, the existence of insurable interest is not to be proved at the time of loss. Although such policies are void, the insurer meets his obligation out of consideration of honour.

35

HISTORY OF INDIAN INSURANCE MARKET

Life and Non-life Insurance in India goes back to the time of the British. The first life insurance company to operate in India- the Oriental Life Insurance Company was established in 1818 in Calcutta. It was, however, a British company. The first Indian insurance company, the Bombay Mutual Life Assurance Society started its operations in 1871. In 1956 the Indian life insurance industry was made up of 154 domestic life insurers, 16 foreign life insurers and 75 provident funds, and was still governed by Insurance Act of 1938. In 1956 all life insurance companies were nationalized, the story of non-life insurance in India is no different. Though Lioyd's Insurance pioneered general insurance way back in 1688, the first nonlife insurance company to set up shop in India was the Triton Insurance Company of Calcutta. In 1907, the first Indian general insurer, the Indian Mercantile Insurance Company started its operations. The New India Assurance Company Ltd. Was incorporated in 1919. In 1972, the non-life insurance business in the country was nationalized and the GIC (General Insurance Corporation of India) was formed as a holding company with four subsidiaries : The National Insurance, Oriental Insurance, United India Insurance and the New India Assurance Company Ltd. Since then, insurance in India had a protective wall built around it, to keep it a local player market. The above companies controlled the insurance industry for nearly 30 years or so. Current Insurance Market Structure General Insurance business in India was under complete

36

control of four Government insurance companies for nearly three decade. After much deliberation finally the market was opened for competition from December 2000 and also Government has delinked four Public sector companies from holding company GIC to operate as independent company. In addition to four Public Sector insurance companies the Insurance Regulatory and Development Authority (IRDA). Has issued licenses to the eight Private General Insurance Companies.

37

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY

Duties, Powers and Functions of IRDA Section 14 of IRDA Act. 1999 lays down the Duties, Powers and Functions of IRDA. 1) Subject to the provision of this Act and any other law for the time being in force. The authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and reinsurance business. 2) Without prejudice to the generality of the provision contained in sub section (1). The powers and functions of the Authority shall include : a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; b) Protection of the interest of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; c) Specifying requite qualifications, code of conduct and practical training for intermediary or intermediaries and agents; d) Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the insurance Act 1938 (4 of 1938).

38

ORGANIZATION STRUCTURE OF AXA GROUP

Oversees Group Management and Reports to Sharholders Defines Group Role

Defines Group Vision and Business Strategy

Rolls out strategy and supervises execution

Provides level support

corporate

Management Board
Henri CASTRIES*, Chairman, BRUNET*, Cristopher DUVERNE*, francois PIERSON*
Germany/Switzerland Claus Michael DILL* France/Canada/AXA Japan Philipe DONNET*

de Claude (Kip)

Corporate Assistance** PIERSON

Solutions**/AXA Franoois

Finance,
United Alliance States Capital (Kip) Jarry Asia Pacific (Except Japan) AXA RE* Less OWEN CONDRON* Stanley TULIN* LIEBERMAN*

Control and strategy Denis

Group DUVERNE* Management Services (GMS

CONDRON*, Denis

Business Units Jean Raymond

Mediterranean Region ABAT*

U.K./Ireland/Denis HOLT*

AXA Hrinagetes** MOREAUN*

Investment Nicolas

Transversal, Communica tions And

Benelux BOUCKAERT*

Alfred

AXA

RE**

Hans

Peter

GERHARDT

HR Claude BRUNET*

* Members of the Executive Committee ** Transitional Operations 39

ORGANIZATION STRUCTURE OF AXA ASIA PACIFIC HOLDING

Group Chief Executive Less Owen

Group Executive Officer Asia Regional Mark Pearson

Group Chief Financial Officer Geoff Robert

Group Chief Financial Officer Geoff Robert

Asia Regional Chief Financial Officer Jean-Yves le Berre

A & NZ Chief Financial Officer Paul Koppelman

General Manager Group General Counsel & Company Secretary Milena Pencan Human Resources & Internal Communication Jeffrey Sherman Shermanoppelman

40

BHARTI ENTERPRISES

Bharti Enterprises is one of India's leading business groups with interests in telecom, agri business, insurance and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of India's leading private sector providers of telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel was ranked amongst the best performing companies in the world in the Business Week IT 100 list 2007. Bharti Teletech is the country's largest manufacturer and exporter of telephone terminals. Bharti has joint venture with ELRo Holdings India Ltd.- 'Field Fresh Foods Pvt. Ltd'- for global distribution of fresh fruits and vegetables. Bharti also has a joint venture- 'Bharti AXA Life Insurance Company Ltd'.- with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It also has a joint venture- 'Bharti Wal-Mart Private Limited'- with Wall Mart, for wholesale cash-and-carry and back-end supply chain management operations.

41

LITERATURE SURVEY

Concept of Recruitment Recruitment and selection, though differ in terms of process and orientation, are often used together and, sometimes, interchangeably. Therefore, in order to understand difference between the two, let us see what activities are involved in these processes.

RECRUITMENT AND SELECTION PROCESS Recruitment Recruitment is the process of exploring the sources of supply of the required personnel and stimulating the prospective employment to apply for job in the organization. Recruitment is the first employee's process, which aim to developing and maintaining manpower resources for the organization. Recruitment is a positive process because it attracts a large number of qualified people from which the final selection can be made. According to E. Me Farlan it is the process of attracting the potential employees to the company. The aim of recruitment policy should be to attract good quality applicants and to undertake reliable and cost effective selection decisions.

42

According to Flippo, recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.

Recruitment needs are of three types Planned Anticipated Unexpected

43

SOURCE OF RECRUITMENT Internal and External Sources 1. Transfers 1. Press Advertisement

2. Promotions

2.

Educational Institutions

INTERNAL SOURCES Internal sources consist of the following 1. Permanent, temporary and casual employees already on the pay of the organization are a good source. Vacancies may be filled up from such employees through promotions, transfers and upgrading and even demotion. 2. Retired and retrenched employees who want to return to the company may be rehired. 3. Dependents and relatives of deceased and disabled employees.

EXTERNAL SOURCES External sources of recruitment lie outside the organization. These are as follows: 1. Educational And Training Institutions Various institutes provide facilities for campus interviews and placement. Good institutions have placement cells/officers to serves as liaison between the employers and the students. This source is known as campus recruitment.

44

2. Recruiting Agencies Several private consultancy firms e.g. A.F. ABC consultants etc. these agencies are particularly suitable for recruitment of executives and specialists. They perform all the functions of recruitment and selection so that the client is relieved of this burden. But the cost of recruitment through these agencies is quite high.

3. Employment Exchanges Government of India has established public employment exchanges throughout the country. These exchanges provide information about job vacancies to the jobseekers and help employers in identifying suitable candidates. They contain a data bank of candidates for different types of jobs.

4. Casual Callers Due to widespread unemployment in the country, many jobseekers visit the offices of well-known companies on their own. Such caller is generally considered a nuisance to the daily work routine of the enterprise. But a waiting list of such unsolicited visitors can be prepared to file temporary and lower level jobs. It is very expensive source of recruitment.

45

5. Labour Contractors Manual workers can be recruited through contractors who maintain close links with the sources of such workers. This source is often used to recruit labour for construction jobs.

6. Gate Recruitment Unskilled workers may be recruited at the factory gate. In some industries like jute a large number of workers works as badli or substitute workers. These may be employed whenever a permanent worker is absent. More efficient among these badli worker may be recruited to fill permanent vacancies.

7. Similar Organization Experienced employees can be recruited by offering better benefits to the people working in similar organizations. Newly established organizations of wellknown business houses often lure experienced executives and technical experts from the public sector.

8. Recommendations Office bearers of trade unions are often aware of suitability of candidates. Management can. enquire these leaders for suitable jobs. In some organizations there are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

46

9. Press Advertisements Advertisements in newspapers and journals are a widely used source of recruitment. The advantage of this method is that it has a very reach. One advertisement in a leading daily can cover millions of persons throughout the country. Cost per person is very low. This method can be used for clerical, technical and managerial jobs.

Steps In Recruitment Process The recruitment process consists of the following steps 1. Recruitment process generally begins when the personnel department receives requisitions for recruitment from any department of the company. 2. Locating and development the sources of required number and type of employees. 3. Identifying the prospective employees with required characteristics. 4. Communicating in the information about the organization, the job and the conditions of service. 5. Encouraging the identified candidates to apply for jobs in the organization. 6. Evaluating the effectives of recruitment process.

47

Methods Of Recruitment Recruitment methods are the means by which an organization establishes contact with potential candidates, provide them necessary information and encourages them to apply for jobs. Various methods employed for recruiting employees may be classified into the following categories

1. Direct Methods Under direct recruitment scouting, employee contacts, manned exhibits and waiting lists are used. These include sending traveling recruiters to educational and professional institution; employee contact with public and manned exhibits. Most college recruiting is done co-operation help in attracting students, arranging interviews furnishing spaces and providing student resumes. Other, direct method include sending recruiters to conventions and seminars, selling up exhibits at fairs, and using mobile offices to go to the desired centers. Some organizations use waiting lists of candidates who have indicated their interest in jobs in person, through mail or over telephone.

2. Indirect Methods Advertisements in newspapers, journals, on the radio and television are used to publicist vacancies. This method is appropriate when the organization wants to reach out of a large target group scattered geographically.

48

Local newspaper can be a good source of blue-collar worker, clerical employee and low-level administrative employee. According to advertisement tactics and strategy in personal recruitment, three points need to be born in mind before and advertisement is inserted FIRST, to visualize the type of application one is trying recruit. SECOND, to write a list of the advantages of the company offers in the other word, why the reader should work for the company. TIDRD, to decide where to run the advertisement, not only in which area but in which newspaper having a local, state or nation wide circulation.

3. Third Party Methods Various agencies can be used to recruit personnel. In addition, friends and relations of existing staff and deputation method can also be used. These include the use of commercial or private employment agents, state agencies, placement office of school colleges and professional association, casual labor or application at the gate etc.

Selection Process Selection is the process of choosing the most suitable persons out of all the applicants. In this process relevant information about applicants is collected through a series of steps so as to evaluate their stability for the job to be filled. Selection is the process of matching the qualifications of applicants with the job requirements; selection divides all the applicants into two categories

49

Suitable Unsuitable The purpose of selection is to pick up the right person for every job.

Selection is an important function as no organization can achieve its goals without selecting the right people. Faulty selection leads to wastage of time and money and spoils the environment of an organization. Scientific selection and placement personnel can go a long way in building up a stable work force. It helps to reduce absenteeism and labour turnover. Proper selection is helpful in increasing the efficiency and productivity of the enterprise.

The selection process can be successful if the following conditions are satisfied:

1. Someone should have the authority to select. This authority comes from the employment requisition as developed through an analysis of the work1oad or work force. 2. There must be some standard of personnel with which applicant can he compared. 3. There must be a sufficient nUII1ber of applicants from whom the required number of employees may be selected.

50

Selection Procedure The selection procedure consists of a series of steps. Steps involve in employee selection may be described as under:

Preliminary Interview First of all, initial screening is done to weed out totally

undesirable/unqualified candidates at the outset. Preliminary interview is essentially assorting process in which prospective candidates are given the necessary information about the nature of job and the organization. Preliminary interview saves time and efforts both the company and candidate. It avoids unnecessary waiting for a rejected candidate and waste of money on further processing of an unsuitable candidate. Preliminary interview helps to determine whether it is worthwhile for a candidate to till up application form. Preliminary interview is the first contact of an individual with the organization.

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APPLICATION BLANK Application from is a traditional and widely used device for collecting information from candidates. Small firms design no application from and ask the candidates to write details about their age, marital status, education, work experience, etc on a plain sheet of paper. But big companies use different types of application forms for different jobs.

Generally, an application form contains the following information: a) Identifying information - name, address, telephone no, etc b) Personal information - age, sex, place of birth, marital status, dependents, etc c) Physical characteristics - height, weight, eyesight, etc d) Family background e) Education- academic, technical and professional f) Experience- job held, employers, duties performed, salary drawn, etc. g) References h) Miscellaneous- extracurricular activities, hobbies, games and sports, membership of professional bodies, etc.

52

Selection Test Psychological tests are being increasingly used in employee selection. A test is a sample of some aspect of an individual's attitudes, behavior and performance. It also provides a systematic basis for comparing the behavior, performance and attitudes of two more persons. Test are based on assumption that individual differ in their in their job related traits which can be measured. Test helps to reduce bias in the selection by serving as a supplementary screening device. Tests are useful when the number of applicants is large.

Employment Interview An interview is a conversation between two persons. In selection it involves a personal, observational and face to face appraisal of candidates for employment.

A selection interview serves three purposes : Obtaining information about the background, education, training, work history and interests of the candidate. Giving information to candidates about the company, the specific job and personnel policies. Establishing a friendly relationship between the employer and the candidate so as to motivate the successful applicant to work for the organization.

53

Medical Examination Such examination serves the following purposes : It determines whether the candidate is physically fit to perform the job. Those who are physically unfit are rejected. It reveals existing disabilities and provides a record of the employee's health at the time of selection. It prevents the employment of people suffering from contagious diseases.

Reference Checks If an applicant is declared successful, some personal information is collected about the candidate from those persons who have been entered in the form as reference. This information is chiefly connected with the character of the applicant, his social relation's background etc. The opinion of referees can be useful in judging the future behavior and performance of a candidate.

Final Approval The final interview is usually conducted in two stages : FIRSTLY, the personnel manager gets a detailed information about the applicant and after they are found competent after his assessment, they are send/to. Department manager concerned for interview's. SECONDLY, the

54

department managers satisfy themselves after a tete-a-tete in detail about the nature of work and then they are declared successful.

Psychological Tests Psychological tests are being increasingly used in selecting employees. These tests provide a systematic procedure for sampling human behavior. Psychological tests are based on assumption that no two individual are equal in term of intelligence, attitudes, personality and other traits. Psychological tests help to predict the success of a candidate on the jobs. They help to reduce bias and subjective judgment in the selection process. They are more useful for identifying and screening out unsuitable candidates. Tests are also critised for invading the privacy of candidates.

Types of Tests APPTITUDE OR POTENTIAL ABILITY These tests measures the latent ability or potential of a candidate to learn a new job or skill. Such tests are of the following types:

MENTAL ORINTELLGENCE TESTS The assumption behind this test is that a more intelligent person can easily and quickly learn any job and the enterprise do not have to spend more on their training.

55

 MECHANICAL APTITUDE TEST These tests are measure a person's capacity to learn a particular type of mechanical work. Capacity for spatial visulation, perceptual speed etc. these are useful for selecting apprentices maintenance workers and mechanical

technicians.

SKILLTEST These tests measure a person's ability to perform a specific job. These are primarily used for selecting worker who have to perform semi-skilled and repetitive jobs.

ACHIEVEMENT OR PROFICIENCY TEST These tests are measure what a person can do. Their tests are of two types

JOB KNOWLEDGE TEST Such tests are useful in the selection of stenographers, typist, office worker etc.

WORK SAMPLE In these tests a candidate is given a piece of work to how efficiently he does it.

56

 PERSONALITY TEST These tests are used to select supervisors and executives and for counseling people. These are widely used in industry as these provide an all round picture of a candidate's personality. These are of three types

OBJECTIVE TESTS These tests measure neurotic tendencies, self-sufficiency and self confidence.

PROJECTIVE TESTS The way in which he responds to these stimuli reflect his own values and motives and personality.

SITUATION TESTS Group discussion and basket methods are used to administer these tests. These tests measure a candidate's reactions when placed in a particular situation.

INTEREST TESTS These tests are inventories of a candidate's like and dislikes in relation to work. There are used to discover a area of interest and to identify the kind of work that will satisfy him.

57

CONCEPT OF EMPLOYEE SATISFACTION

Employee satisfaction "helps the company to maintain standards & increase productivity by motivating the employees. This study tells us how much the employees are capable & their interest at work place? What are the things still to be satisfy to the employees. Although "human resource" is the most important resources for any organization, so to study on employees satisfaction helps to know the working conditions & what are the things that affects them not to work properly. Always majority of done by the machines/equipments but without any manual moments nothing can be done. So to study on employee satisfaction is necessary.

Employee satisfaction is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allows a company to grow and change positively with time and changing market conditions.

58

RECRUITMENT POLICY OF BHARTI AXA

Purpose To hire the right candidate for the right job with the right skill, within the agreed time period, at optimum cost while following processes and complying with the framework towards providing equal opportunity to applicants based on merit. Policy Deriving the total resource requirement is the first step in the staffing process and comprises of the following step : Based on business plan for the company, function wise headcount strength required will be calculated for each quarter/year, by the respective Directors. Once approved by the CEO and CLT, this would form the Business Operating Plan (Op Plan). Based on the Op Plan and skill set available internally, respective recruitment is planned keeping in mind the attrition rate, detailing numbers to be recruited and the sourcing strategy.

RECRUITMENT PROCESS Hiring New Positions (Budgeted) For all planned positions, Resource Request Form (RRF) will be raised by the Hiring Manger and sent to HR along with the JD, after the required approvals. Each RRF has to be approved by the respective Director.

59

Hiring New Positions (Non-Budgeted) For any non budgeted recruitment that is over and above the Op plan, approval from CEO is required. Resource Request Form (RRF) will be raised by the Hiring Manger and sent to HR along with the JD, after the required approvals.

Hiring Against Replacement The same process as required for hiring new positions that are budgeted needs to be followed for hiring against a replacement.

Hiring Lead Time The normal lead time to fill up a requirement against the RRF is 8 weeks (56 Days). This is calculated from the date of receipt of RRF by HR, with due approvals, to the date selected candidate joins BHARTI AXA.

Rehire Bharti AXA allows re-hiring of ex employees, subject to availability of suitable Vacancy/opening and past performance of the employee.

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SELECTION PROCESS Basic Norms Qualification- Minimum graduates. Under graduates will not be hired on the rolls of the company. For fresher hiring- 60% and above in all exams starting from class 10 th. For any Change/modification in percentage requirement, special approval would be required form HR.

Reference Check External reference (minimum 2) is carried out for each selected candidate. Reference check is done with prior consent of the candidate and needs to be done with someone who the candidate has closely worked with, is at a level of manager and above, and is not a relative. Incase selected candidate is from the insurance industry, one internal Reference Check has to be conducted and appropriately documented.

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NEED FOR STUDY

Through this project report, I am trying to study about the recruitment process and employees satisfaction level of the company upto some entertainment try to convey the management of the company. About the present condition of the recruitment process and employees satisfaction level the improvement needed in them in future.

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RESEARCH OBJECTIVE

1. To know about the view of employees regarding the recruitment process of the company. 2. To know the satisfaction level of employees of the company towards different department, HR Policies etc. 3. To know the improvement needed in the recruitment process of the company. 4. To know which department need more improvement. 5. To know to which department need less improvement. 6. To check the awareness of employees regarding employees satisfaction and recruitment process. 7. To know much percentage employees are satisfied with their company.

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Before we know about Research Methodology, we should know about the "Research". Research is an authentic activity and as such the term should be used in a technical sense. Some people say research is a careful investigation or enquiry specially thought search for new fact in any branch of knowledge. And research Methodology is a process or way to systematically solve the research Problem. It may understood as a science of studying how research is done.

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RESEARCH PLAN

A research plan is a logical and systematic plan prepared for directing a study and this plan is followed to carry out the research. It determined the sequence of action to be followed. It is a general research strategy for a particular study. It include Research Design, Research, Methodology, Types of Research, Sampling Technique and Sample Size etc.

65

RESEARCH DESIGN

Research design is the arrangement of conditions for collection and analysis of data. It is the blue print for the collection and measurement of data. A research design helps to take decision about what kind of data is used? What are the source of data? Basic of measurement criteria, place where the study is to be conduced. In this research, design is kept Explorative and DESCRIPTIVE.

66

TYPE OF RESEARCH

The quality of the research project depends, among the other things, upon life suitability of the method selected for it. Type or method of research is carefully selected. In this research we are using DESCRIPTIVE type of research. Descriptive study is a interpretation where as. Exploratory research is a preliminary study of an unfamiliar problem. factfinding investigation with adequate

67

TYPE OF METHODOLOGY

Survey method is used in the research. It is a method of collecting primary data in which questionnaire is given to respondent and it is self-administered by the respondents by themselves.

Reason for Choosing This Methodology It is costly than other method i.e. interview, observation etc. It being more impersonal provides more anonymity then other method like interview. It is free from researcher's biases. Larger sample can be drawn.

Reason to Choose This Type of Research As our research is based on observation of facts and we are using questionnaire as tool of data collection, so we descriptive research.

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RESEARCH DESIGN

The research design is a basic framework, which provides guidelines for rest of the research process. It emphasizes on these point. How the data would be collected? Which instrument for data collection would be used? What sampling plan would be used?

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METHODS OF DATA COLLECTION

In research the data are collected in two ways. 1. Primary Data 2. Secondary Data

1) Primary Data The primary data are those data, which are collected a fresh and for the first time and it always be in original form. We can obtain direct communication with respondents in one form or another personal interview.

2) Secondary Data The secondary data are those data, which; are collected from existing records that are easily available in the market. In my project I have the collected the secondary data from various like magazines, newspaper, websites and various manuals and books.

Type of Research Descriptive research has been done by researchers means he has control over variable.

Data Source I was selected the Questionnaire basis Data Sources.

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Questionnaire designing The questionnaire designing refers to dividing the structure size, format any type of questionnaire. Questionnaire should be properly designed to facilitate the user better understandings of questions and to make the questionnaire interesting and easy to respond.

Feature of Good Questionnaire 1. It should be short and simple. 2. Question should be logical order. 3. Technical terms and jargons should avoided. 4. It should be candid, lingual and unbiased. 5. Question should not be confusing and contradictory to respond. 6. Personal questions & questions which stain memory should be avoided. 7. Question should move from general to pacific.

Questionnaire Size Questionnaire size refers to size of questionnaire i.e. number of questions in a questionnaire. There are 19 questions in this questionnaire.

Reasons To Choose This Questionnaire Size This size of questionnaire is choose because this size is neither to short nor too long. This will help in obtaining all the required information for the research.

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Sampling Design The study requires collection of primary data from field, so the population must be clearly define for the purpose. The sampling technique to be used for drawing the sample from topic population and the sample size is also determined here.

Sampling Technique I was choosing the JUDGEMENTAL Sample techniques for find good result.

Universe Population is the aggregate of elements about which we wish to make interferences. In this research, population refers to all the employees of are facing "Bharti AXA Life Insurance Company" (Varanasi Branch).

Samples Size Sample size refers to the number of items to be selected from the population to constitute a sample. The samples size taken in this research is 50. Reasons to Choose This Sample Size

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This samples size will help to get an overview of the population. This sample is adequate to reduce the sampling error and will increase precision of the sample results.

Sampling Technique Used The sampling technique used in the research is Probability Sampling Technique or Random Sampling Technique. In Random Sampling Technique samples are choose randomly. In this method each element of population has an equal and independent chance of being selected.

Reasons to Choose This Sampling Techniques We are using sample random sampling techniques because. It provides chance for selection if every element of population. It is easiest methods of all sampling techniques. It is simple to understand. It does not require any prior knowledge about composition.

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DATA ANALYSIS

Q.1. From many years you know about this company? Option
a) Less than 1 year b) 1-2 years c) 2-4 years

Responds 48 02 00 00

d) More than 5 years

Less

than

years 1-2 years 1-2 years More than 5 years

Interpretation Most of the employees know about the company from the last one year.

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Q.2. From how much time you are working in this company? Option
a) Less than 1 year b) 1-2 years c) 2-4 years d) More than 5 years

Responds 48 02 00 00

(a)

Less than 1

years (b) 1-2 years (c) 1-2 1 Less than 1 years (c) More than 5 years

Interpretation Most of the employees as working in the company from the last one year.

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Q.3. For which department you are working for this company? Option e) Agencies f) DSF g) Operation h) HR Responds 10 38 01 01

(a) Agencies (b) DSF (c) Operation (d) HR

Interpretation Large No. of the employees of the company is working in the DSF department.

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Q.4. Are you satisfied with the recruitment process of your company? Option (a) Yes (b) No Responds 48 02

(a) Yes (b) No

Interpretation Most of the employees are satisfied with the recruitment process of the company except few one.

77

Q.5. In your opinion, is it better than the public sector recruitment process? Option (a) Yes (b) No Responds 50 00

(a) Yes (b) No

Interpretation All the employees views that the recruitment process of the company better than the public sector enterprises.

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Q.6. According to your view, the recruitment process should do by the company? Option (a) Yearly
(b) Half Yearly

Responds 10 25 15

(c) Monthly

(a) Yearly (b) Half

yearly (c) Monthly

Interpretation 50% of the employee wants that the recruitment process should be done by the company twice in a year.

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Q.7. What is your opinion on the improvement of the recruitment process in the company? Options
(a) It should be simple

Responds 10 30 01 09

(b) Easy (c) Free from bias (d) All the above

(a)

It

should

be

simple (b) Easy (c) Free from bias the above (d) All

Interpretation More than fifty percent of employees wants that the process should be Easy and 20% wants that it should be simple.

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Q.8. Are you satisfied with the working environment of this company? Options (a) Yes (b) No Responds 49 01

(a) Yes (b) No

Interpretation Most of the employees are satisfied with the working environment of the company.

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Q.9. Are you satisfied with the selection procedure of your company? Options (a) Yes (b) No Responds 45 05

(a) Yes (b) No

Interpretation Most of the employees are satisfied with selection procedure of the company?

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Q.10. Is the training and development adopted by your company is helpful in the development of the employees? Options (a) Yes (b) No Responds 45 02

(a) Yes (b) No

Interpretation Most of the employees are satisfied with the training and development program adopted by the company.

83

Q.11. Are you satisfied with the performance appraisal adopted by the company? Options (a) Yes (b) No Responds 40 10

(a) Yes (b) No

Interpretation Some of the employees are not satisfied with performance appraisal adopted by the company.

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Q.12. On what basis promotion is adopted by the company? Options (a) Seniority (b) Performance (c) Both Responds 00 50 00

(a) Seniority (b) Performance (c) Both

Interpretation The promotion is done in the company on the performance basis.

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Q.13. Are you satisfied with the base of the promotion adopted by the company? Options (a) Yes (b) No Responds 50 00

(a) Yes (b) No

Interpretation Almost all the employees are satisfied with the basis of promotion.

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Q.14. Are you satisfied with grievance handling procedure of the company? Options (a) Yes (b) No Responds 40 10

(a) Yes (b) No

Interpretation Some of the employees are not satisfied with the grievance hadnling procedure adopted by the company.

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Q.15. Are you satisfied with the salary and incentive of the company? Options (a) Yes (b) No Responds 50 00

(a) Yes (b) No

Interpretation All the employees are satisfied with the salary and incentive package of the company.

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Q.16. Are you satisfied with the additional benefits such as medical leave, residential and retirement benefits of this company? Options (a) Yes (b) No Responds 25 25

(a) Yes (b) No

Interpretation Half of the employees are not satisfied with the Additional benefits provided by the company.

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Q.17. Do you think that this company is working in the field of welfare of the employees? Options
(a) Yes (b) No

Responds 45 05

(a) Yes (b) No

Interpretation Most of the employees think that their company is working well in the field of welfare of them.

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Q.18. Do you that this company applied it policy to different level of employees? Options
(a) Yes (b) No

Responds 49 01

(a) Yes (b) No

Interpretation Almost all the employees think that their company applies to different level of employees.

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Q.19. To how much percentage you are satisfied with this company? Options (a) 0-25% (b) 26-50% (c) 51-75%
(d) 76-100%

Responds 00 05 35 10

(a) 0-25% (b) 26-50% (c) 51-75% (d) 76-100

Interpretation Half of the populations of the employees working in the company are satisfied with this company.

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FINDINGS

1. Most the employees of the company are know about the company less than year. 2. Most of the employees are working for the company less than one year. 3. Most of the employees are working for the DSF department of the company. 4. Employees are not satisfied so much with the training and development program adopted by the company. 5. Personnel are not satisfied with grievance handling procedure of the company. 6. Employees are also not satisfied with the performance appraisal and selection procedure of the company upto large extent. 7. The company employees are not satisfied with the additional benefits such as Medical Leave and Retirement benefits of the company. 8. Most of the employees wants that the recruitment process should be done twice in a year. 9. Employees also want that the recruitment process should be made easy.

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SUGGESTIONS & RECOMMENDATIONS

To give suggestions are very easy; but implementation is very difficult. 1. The company's advertisement about their recruitment process should be more in Local TV cannel and News Paper. 2. Attractive gift packages should be given by, company to employees, on the basis their performance in every year. 3. Attractive package of salary should be given by, company to employees so, that they can motivate hard work. 4. Attractive training facility should be developed for employees. 5. Transparency should be made in the recruitment process, if company wants to create good image in the eyes of employees. 6. Company needs little improvement in the selection procedure adopted by them. 7. Training & development and performance appraisal should be done by the company regularly for the improvement of the employees. 8. Company has to provide some Medical Leaves, Residential and Retirement benefits to their employees. 9. The recruitment process should be made easy by the company. Grievance handling procedure should be of short time period.

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LIMITATION

1. I have permission to survey only in Varanasi City. 2. I had selected the only 50 number of sample size, by which my survey report analysis is not more flutuate. 3. Lack time respondents. 4. Some respondent due to unawareness about new term they can't be respondent well manner. 5. Change in business research. 6. Lack of resources. 7. Lack of time. Change of sampling error.

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QUESTIONNAIRE

Q.1. From how many years you know about this company? a) Less than 1 year b) 1-2 years c) 2-4 years d) More than 5 years Q.2. From how much time you are working in this company? a) Less than 1 year b) 1-2 years c) 2-4 years d) More than 5 years Q.3. For which department you are working for this company? a) Agencies b) DSF c) Operation d) HR Q.4. Are you satisfied with the recruitment process of your company? a) Yes b) No Q.5. In your opinion, is it better than the public sector recruitment process? a) Yes b) No

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Q.6. According to your view, the recruitment process should do by the company? a) Yearly b) Half yearly c) Monthly Q.7. What is your opinion on the improvement of the recruitment process in the company? a) It should be simple b) Easy c) Free from bias d) All the above Q.8. Are you satisfied with the working environment of this company? a) Yes b) No Q.9. Are you satisfied with the selection procedure of your company? a) Yes b) No Q.10. Is the training and development procedure adopted by your company is helpful in the development of the employees? a) Yes b) No

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Q.11. Are you satisfied with the performance appraisal procedure adopted by the company? a) Yes b) No Q.12. On what basis promotion is adopted by the company? a) Seniority b) Performance c) Both Q.13. Are you satisfied with the base of the promotion adopted by the company? a) Yes b) No Q.14. Are you satisfied with the grievance handling procedure of the company? a) Yes b) No Q.15. Are you satisfied with the salary and incentive of the company? a) Yes b) No Q.16. Are you satisfied with the additional benefits such as medical leave, residential and retirement benefits of this company? a) yes b) No

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Q.17. Do you think that this company is working in the field of welfare of the employees? a) Yes b) No Q.18. Do you agree that this company applies it policy to different level of employees? a) Yes b) No Q.19. To how much percentage you are satisfied with this company? a) 0-25% b) 26-50% c) 51-75% d) 76-100%

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BIBLIOGRAPHY

Books

Rao, V.S.P.- Human Resource Management Prasad, L.M.- Principal of Management Kapoor, N.D.- Business Law

Websites
1. www.google.com

2. www.msn.com
3. www.yahoo.com 4. www.vovici.com/solution/employee-satisfaction.aspx 5. www.busreslab.com

6. www.irda.gove.in

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