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Introduction of the process

Recruitment and selection of agent

Objectives of the study

To understand the process of recruitment and selection of agent in Bharti AXA life
How to recruits agent for Bharti-AXA life insurance
To know about the view of general public about the job of agent
Why people are not willing to work with as an agent, especially with private player.

Meaning of Recruitment
According to Edwin B. Flippo, Recruitment is the process of searching the candidates
for employment and stimulating them to apply for jobs in the organisation.
Recruitment is the activity that links the employers and the job seekers. A few
definitions of recruitment are:

A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The
result is a pool of applications from which new employees are selected.

The fact is, your success with recruitment depends on how well you prepare your job ad, and
use source of recruitment, and your interviewing skills.
Prepare a job ad that works to start, you want to be sure that your potential candidate truly
understands the job. The clearer you are with the task description, working conditions and
advantages, the less time you will waste examining and rejecting applications.
The essentials of any job description are:

A brief description of your company.
Detailed outline of the tasks involved.
Qualifications and experience required.
Equipment and resources used to do the work.
Skills required using them.

However, you should also include work benefits (e.g., vacation, travel and perks), general
working conditions (e.g., scheduling, outside work) and the specific traits required (e.g., team
building and communications skills). Ultimately, you want to be perceived as an attractive
employer in a competitive market.
Find the right recruitment vehicle choose the vehicle that best works for your company,
depending on your budget and resources.
Word of mouth, or simply telling your employees, friends and colleagues about a job
opening, is a less expensive strategy but generates fewer candidates. The advantage is that
you already know something about your recruiters and their skills, knowledge and
achievements. This is a preferred method with companies that have a finder's fee program for
their employees.
Advertising is a toss of the dice. If it goes well, it can help you find ideal candidates in a
regional, national, or international pool. If not, it's a costly investment yielding few results.
Make sure to factor in the time it takes to go through a large number of resumes.
Employment agencies cost more but generally provide a good range of candidates. The
employment advisors look at your needs, screen a number of candidates, and only send you
the applications that meet your requirements. Bear in mind that the largest employment
agencies do not necessarily offer the best choice of candidates. There are numerous agencies
that specialize in recruitment in specific sectors.
Recruiting online such,, and These
can provide inexpensive, worldwide access to employees. In fact, 65% of job seekers now
have access to these types of services. Using the Internet for recruiting usually involves
regular visits to specialized recruitment sites, joining newsgroups, and posting your job
openings on recruitment sites, electronic publications and on your own Web site.

It is the process to discover sources of manpower to meet the requirement of staffing
schedule and to employ effective measures for attracting that manpower in adequate numbers
to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a pool
of prospective employees for the organisation so that the management can select the right
candidate for the right job from this pool. The main objective of the recruitment process is to
expedite the selection process.

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.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.

After recruitment the next part is selection of best candidates.

Make the interview deliver
Since the purpose of an interview is to identify and verify the candidate's potential, it should
be structured to bring out all the desired competencies and aptitudes. Remember that you
have to decide between the candidates: you could create a point system or analysis grid for
comparing their strengths and weaknesses. Here are a few points to consider when structuring
an interview:

Make a list in advance of the points for discussion and corresponding questions.

Present the candidates with a situation they could face on the job and ask them how
they would react. This will enable you to evaluate candidates' knowledge, skills

Ask the candidates to describe some difficult situations encountered in previous jobs
and to explain the way in which they were resolved. This will give you the chance to
gauge the candidates' problem-solving skills.
Beware of asking questions about personal interests. They can get the interview off track or
annoy people who want to keep their work and private lives separate.
Definition of Agent

An agent is a person who represents an insurance firm and sells insurance policies on
its behalf.

Generally, there are two types of such agents who reach the prospective parties that
may be interested in buying insurance. These are independent agents and captive or
exclusive agents.

Independent agents may represent many insurance firms and receive commission for
their services accordingly. On the other hand, there are captive agents who are
exclusively employed by a particular insurance firm and sell policies of the same. Their
services can be rewarded in the form of salary or commission.

According to section 182 of Indian contracts Act, an agent is a person employed to
do any act for another or to represent another in dealing with a third person. The
insurance Act definers and insurance agent as one who is licensed under Section 42
of that Act and is paid by way of commission or otherwise, in consideration of his
soliciting of procuring insurance business, He is, for all purposes, an authorized
salesman for insurance and needs a license.

Procedure for becoming an Agent

The insurance Act, 1938 lays down that an insurance agent must possess a licence
under Section 42 of that Act. The licence is to be issued by the IRDA. The IRDA has
authorized designated persons, in each insurance company, to issue the licences on
behalf of the IRDA.
In terms of the Insurance Act, licences will not be given if the person is

(a) Minor

(b) Found to be of unsound mind

(b) Found guilty of criminal misappropriation or criminal breach of trust or cheating
attempt to commit any such offence.

(d) Found guilty of or knowingly participation in or conniving at any fraud, dishonesty
against an insurer or an insured.

(e) Not possessing the requisite qualifications and specified training.

(g) The fee for a licence is Rs.825 for individual. A licence is granted for 3 years. It may
be renewed after 3 years and again valid for 3 years.

A licence issued by the IRDA may be to act as an agent for a life insurer, for a
general insurer or as a composite insurance agent working for a life insurer as sell as
a general insurer. No agent is allowed to work for more than one life insurer or more
than one general insurer.

The Qualifications necessary before a licence can be given are that the person must
(a) Not a minor.

(b) Have passed at least the 12
standard or equivalent examination, if he is to be
appointed in a place with a population of 5,000 or more. (10
standard otherwise.)

(c) Practical training will be of 50 hours at our IRDA approved training centers
Training is to be spread over 3 weeks and 4 weeks respectively. In case of 2nd
renewal of licenses for existing agents, the hours of training required is 25 and in
case of composite 50 respectively.

The licence once issued, can be cancelled whenever the person acquires a
disqualification. Applications for renewal have to make at least thirty days before the
expiry of the licence, along either the renewal fee of Rs.250. If the application is not
made at least thirty days before the expiry, but is made before the date of expiry
of licence, an additional fee of Rs.100 is payable . If the application is made after the
date of expiry, it would be normally being refused.
Prior to renewal of the licence, the agent should have completed at least 25
hours practical training in life or general insurance business or at least 50 hours
practical training in life and general insurance business in the case of a composite
insurance agent.
Insures who select agents for appointment, make arrangements for training, for
appearing in the prescribed examinations, and obtaining the licence.

Understanding the prospects needs and persuade him to buy a plan of life insurance
that suits his interests best.
Complete the formalities: - paper work, medical examination, which is necessary to
get the policy expeditiously.
Keep in touch to ensure that changing circumstances are reflected in the arrangements
relating to premium payments, nomination and other necessary alterations.
Facilitate quick settlement of claims.
Be totally honest with both the prospect and the insurer.
Not to induce prospects to submit wrong information.

Career with Bharti AXA

Opportunity to earn unlimited income.
Career Growth.
Be your own boss.
High quality training & Support to improve productivity.
Compensation amongst the best.
Club member benefits.
Payout structured to facilitate your cash flows better.
Best in class & competitive products.
Pension for life.

Recruitment Process
Develop a Profile
Develop sources of recruitment
Approaching the Targeted recruits
Initial screening and Interviews
Reality check

Sources of Recruitment
Controlled Market

Natural market
Your family
Your friends
People at job/business

Extended Natural market

The following are sources of names:
People know through children.
People know through spouse.
People know through hobbies/ games.
People known through social groups.
People known through public service.
People you do business with.
Friends of friends.

People with influence and prestige, other member of society believe and faith on
People who have a big circle of relationships: like secretary in societies, president
of an association.
People who are known to you and are willing to help you.
People who have contacts with the class of people you want to deals with.
People who have faith in your leadership.
A centre of influence is a person who is in contact with many people through
social, political, religious or business angulations

Usually a respected individual with influence over the people with him/her is in contact.

Uncontrolled Sources

Job Ads/Inserts
This program should be on regular long range basis.
Example: Navajeevan sharma who is a relationship officer in Bhrati AXA Life Insurance
company put an ad in the newspaper, in which he called for the reader to phone him during a
specified 2 to 4 hours period on Monday or Sunday morning
From those who called Navjeevan Sharma was able to eliminate more misfits (who are not
qualified) and arrange for two to six personal visits.
Placement consultants
MOA can recruit a placement consultant or register himself in internet job search sites to get
list of prospects.
Seminars/job fairs
Manager of agency can also organized seminars at management institutes and colleges.
Bharti AXA Life Insurance Company participates in the job fairs and then short
list prospects and then looks for further opportunities for them.
Cold Prospecting
MOA can use the telephone directory.
MOA and telecaller can use the directories of various business and social


Primary data
: Direct collection of data of from the source of information, technology including personal
interviewing, survey etc.
Secondary Data
: Indirect collection of data from sources can
Be purchased from the open market and various kind of database are available such as
telephone databases of various surveys.

Point to be noted while recruiting the Agents
1. Mature and responsible family person.
2. Ambitious, hungry for recognition, challenges.
3. Occupation.
4. Experience and current designation.
5. For how many years he is living in the city.
6. Greedy person.
7. Occupation of parent.
8. Family income.
9. Any experience in life insurance sector.
10. Leadership qualities.
11. Social and amiable.

Sources for Recruitment and Selection of Agent used during
Natural Market Market Survey
Secondary Data(Telephone Directory
Telephone Script
Hello sir,
I am Paramjit Singh from Bharti AXA. I want your few minute to
Sir, Bharti AXA is going to expend the Business by recruiting quality
people and offeringthem the potential of a very rewarding career

We have acquired your business card and we are aware of the
company you work for andyou are one of the selective person with
whom our company want to concern.So I would like to meet you for
coffee to explain the exciting and rewarding opportunity.It may have
for you in terms of career compensation and support.
(Excellent I look forward to meeting you please May I have your
address and I willconfirm our meeting in writing)
(According to your convenience will you please tell me when and
where we can meet?)
Thank You Sir.
Step 1. Documents Required

Age proof.

Address proof.

Photo - 8.

Education proof.

Q score sheet.

Agency application.

Form V A.

Fill NAAF.
Step 2. Interview section
During the interview the senior manager/MOA asked following
question to the candidateto judge his ability and knowledge.


Present occupation.

Knowledge or experience in insurance sector

Tenor of stay in the town.

Number of family member.

Household income.

Occupation of parent.
If selected then the senior manager/MOA approve the application.The
managers take the help of scoring Mechanism. Scoring Mechanism
was filled at the

Age Below 25 years Between 25- 40 More than40 Score
Scoringmechanim0 2 1
Marital status Unmarried married
1 2
Education 10
or 12thstandardgraduate Post graduate1 2 2Tenor of stay
incity/townLess than 3years3-
5 years More than 5years0 1 2HouseholdincomeLess than 2lakhs2-
5 lakhs More than 5lakhsTotal score
Q Score:
Acceptable Range of Score Greater than or equal to 7
Additional Approvals 5 or 6
Rejected application if 4 or less
If the Q score is less than 7 then BSM/ARSM comments and signatures are
Step 3. Training
50 Hours Training and also provide a text book (IC-33
life insurance) for pre-recruitmentExamination for Life
Insurance Agents, which is based on syllabus prescribed
byinsurance Regulatory & Development Authority.
IRDA for short, has laid down that those who wish to
become insurance agents will begiven licenses only
after they complete a course of study, training and pass
anexamination prescribed by it
During this training the knowledge about the entire essential concept related to lifeinsurance
is provided to agent. Insurers will have different practices and offer different benefits in their
plans. All of them will be based on these concepts. The details of the practices and the plans
of each insurer will have to be learnt from the respective insures.
. During training following things will be teaches.

hat is insurance

Principles of life Assurance

Premiums and Bonuses

Life Insurance products


Insurance Documents

Policy conditions


Linked life insurance products

Insurance agency

Laws and Regulations

IRDA Regulation 2000.

IRDA Regulation 2002

Step 5. Examination and Code
Examination is the second last part of the recruitment and selection process.It include one
hour test under, which contain 50 objective questions, one marks each,Pass marks are
25.There are two method of examination.


In case of online the result is declared on the spot and in the case of manual result isdeclared
within one month.
After clearing the exam, ULIP training of two days will be given to the advisor about
the product of company and then agency code is generated

Objectives of the study

To understand the process of recruitment and selection of agent in
Bharti AXAlife insurance.

How to recruits agent for Bharti-AXA life insurance

To know about the view of general public about the job of agent

hy people are not willing to work with as an agent, especially with
private player.
Research Methodology
Research Methodology is the investigation of specific problem in
detail. At first problemis defined carefully for conducting research.
There should be a good research plan for conducting research. No
research can be done without data collection. After all thisanalyze is
made for getting solution for problem.

Defining the problem

Defining the sampling plan

Collection of data

Analyze and interpretation
Defining the problem
Defining the research problem is first necessary step for any research.
This work should be done carefully. Here research problem is to
know wiliness of general public to work asan agent with private
player or Bharti-AXA life insurance.
Sampling plan
The sampling plan calls for three decisions.
A) Sampling Unit: I have completed my survey in CHANDIGARH,
B) Sample Size: The selection of 20 respondents. The sample was
drawn fromshopkeepers. The selection of the respondent was done on
the basis of simple randomsampling.
C) Contract methods

I have conduct the respondent through personal interviews
Research Instrument
A close friend questionnaire was constructed for my survey.
Questionnaire consisting of a set of questions made to filled by
various respondents.
Collecting the Information

After this, I have collected the information from the respondent with
the help of questionnaire.
Analyze the Information
The next step is to extract the pertinent finding from the collected
data. I have tabulatedthe collected data & developed frequency
distributions.Thus the whole data was grouped aspect wise and was
presented in tabular from. Thus,frequencies & percentages were to
reder impact of the study.
Presentations of Findings

This was the last stop of the survey.

Data Presentation and Interpretation
NAMe address
Mobile no
Shop type (Mobile stores, General store, Chemist etc. Please specify
Bharti has expanded into new territories of business and they now
offer the bestin class insurance products. This new venture is named
Mr. Sunil Bharti mittal is introducing insurance to Punjab and
Chandigarhretailers and would like to give you an opportunity to earn
and setup a newincome which can give you 15-20% margin on an
In this business you only have to contact your known people or
regular customersand their references to introduce Bhartis product
and get an appointment
.Post this, manager form Bharti-AXA will go, explain the product &
close he salefor you. You will in turn receive 15-20 % margin on sale.
E.g. if a policy is sold by Bharti-AXA manager for 10,000 you will
receive 2,000.
e are here to understand your interest in this proposal specially
designed by Mr.Sunil Bharti Mittal for Punjab and Chandigar

ould you be interested in taking up this business opportunity
with Bharti?
Yes No


2)Only 20% shopkeepers were interested in taking up this
business opportunity withBharti.(8 shopkeeper were interested
in this activity)2)

How much time can you dedicate per day for this
activity?(For getting Appointments)
hr 1-2 hrs 3-h hrs 5 hrs or more
om the above 8 people , 6 people said that they can spend hour for thisactivity daily.

2 said that they can spent to 2 hours for this activity.3) Do you have any knowledge of or
experience in Insuran
es No

80% of shopkeeper said that they have knowledge about insurance.

20% of shopkeeper said that they have no knowledge about insurance.4)

4)Do you have Experience as an agent?Yes No

15% of shopkeepers have experience in the field of life insurance.

85% of shopkeepers have no experience in the field of life insurance.

If yes, then please specify the name of the company.

Out of 6 people 33%(3) of shopkeeper working with

33% (2) of shopkeeper working with HDFC Standard
Life insurance

33% (1) of shopkeeper working with ICICI Prudential
Life Insurance Co. Ltd.5)

5)Can you spare 1/2 day on training to understand to
product and how can introduce itto your customer?
Yes NO
10 % of shopkeepers were interesting to spare 1/2 day
on training to understand to product.

me: - Address:-Location:-Mobile no.Shop Type:- (Mobile stores, General store, Chemist etc.
Please specify

ould you be interested in taking up this business
opportunity with Bharti?
2)How much time can you dedicate per day for this
activity? (For gettingAppointments)
1-2 hrs
3-h hrs
5 hrs or more
3)Do you have any knowledge of or experience in
K nowledge

Can you spare day on training to understand the
product and how can introduceit to your customer?
5)How many people do you know in this city?
Under 50
Above 600


I didnt get complete feed from the shopkeepers about
the question as they are busy inthere work and had less
time to fill questioned.

Sincerity of answering the questions cannot be judged.

Time was the major constraint for me to understand the
long process of recruitmentand selection.

Limited money available for project.
hy people are not ready to work with private players in
life insurance?
hy people are not ready to work as an agent in any

In these days LIC created a very well image in the mind
of General public because itis semi Government
Company and also an oldest company. In short most
people of Indian believe upon the LIC only.

During the training period we felt that most of people
who are already working ininsurance sector think that it
is easy to sell the product of LIC than to sell the
productof other life insurance company.

Most of people say that this job affects upon there
social relation with other and alsoeffect upon there

Most of people believe that private insurance
companies carried out fraud activitythats why they
never believe upon the private players.

People think that it is a time consuming activity and
also required huge market skills.

Some people said that only greedy people like to work
in insurance sector.

Because of three days compulsory training.

Bharti Axa Life Insurance (Training Report)

SILB School Of Business Management Page 61

In India, there is throat cut competition in the market of
life insurance that brand servicewhich adopt new
strategies for sales. I concluding the whole story it can
be said that people are much more aware about the
aspects of life insurance and also have knowledgeabout
the role and act of agent but mostly people unwilling to
work as life insuranceagent and mostly people prefer to
work with LIC because it is a semi

Bharti-AXA life insurance company must give more
advertisements on electronic mediaand print media, as it
help in enhance its goodwill and more people are
willing to work with reputed companies, through
proper advertisement it become easy to sell the product.
An insurance company must work with honesty to win
the confident of its agent andgeneral public.
Duration of training must be reducing as in these day
people have no extra time.
Fees charged by companies from candidate for IRDA
exam and training should reduce.
Many other extra facilities must be provide to agent to
attract them such local and foreigntrips, special price on
achieving a target, open bank account at free of
cost,Bharti-AXA Life Insurance Company must
organize more and more seminars and also participate
in the job trade fairs to find out more candidates.
Increase the commission of agents.Company must relic
to candidate or other people that they are doing a social
service for the welfare of society.Better career
opportunity must be provided to an adviser, such as on
role job, promotionetc.A special function must organize
time to time in which the special prizes distributeamong
those agent who perform well.The duration of the
process of recruitment and selection is too long (one
and half month),during this process mostly candidate
loss there interest, so there is an urgent need toreduce
the duration of this period.Reduce the minimum
premium amount it will help company to attract the
agent of other company, as it increases the scope of
market of its agent.

Bharti Axa Life Insurance (Training Report)

SILB School Of Business Management Page 62
S. Balachandran, (2009), IC-33 Life Insurance, Shri S.J
Gidwani Publishers, www.bhart-
The opportunity
About 2/3 of the Indian population is insurableHigh
% of population is uninsured or underinsurance.
e Indian are natural saversIndians save the maximum
in the world.Those insured are underinsured.

Activity (327)

Selection is a negative process and involves the elimination of candidates who do not
havet he r equi r ed s ki l l s and qual i f i cat i on f or
t he j ob pr opos ed. Al s o i t i s a pr oces s of differentiating between applicants in order to
identify and hire those with grater likelihoodof success in job.The objective of selection decision is to
choose the individual who can most
successfully perform the job from the pool of qualified candidates. It is the system of function
anddevise adopted in a given company to ascertain whether the candidates specifications
arematched with the job specifications and recruitment or not.Selection process or activities typically
follow a standard patter, beginning with an
initialscreening interview and concluding with final employment decision. The tra
ditionalselection process includes: preliminary
screening interview, completion of applicationform, employment test, comprehensive i
nterview, background investigation, physicalexamination and final employment decision to hi
Organization for selection
Until recently the basic hiring process was performed in a rather unplanned
manner inmany organizations. In some companies, each department screened and
hired its ownemployees. Many mangers insisted on screening their own employees as they
thought noone else could do that as efficiently as they themselves.
But now selection is centralized and handled by the Human Resource Department. This type of arrangement
is also preferred due to some of these advantages:
- I t i s eas i er f or t he appl i cat i on becaus e t he y c an s end t hei r
appl i cat i ons t o a s i ngl e centralized department.- It facilitates contact with applicants
because issues pertaining to employment can becleared through one central location.- It
helps operating managers to concentrate on their operating responsibilities. This isespecially
helpful during the chief hiring period.26

- It can provide for better selection because hiring is done by specialist trained in
staffingtechniques.- The applicant is better assured of consideration for a greater variety of jobs.- Hiring cost
is cut because duplication of efforts is reduced.- With increased governmental regulation on selection
process, it is important that peoplewho know about these rules handle a major part of the selection
process.Ideally, a selection process involves mutually decision making. The organization
decideswhether or not to make a job offer and how attractive the job offer should be.

The mai n obj ect i ve of s el ect i on pr oces s i s t o hi r e peopl e havi ng compet
ence andcommitment towards the given job profile. But due to some reason the main
purpose of effectively selecting candidates is defeated. These reasons are:1:
Perception or the Halo effect
: Many a times the interviewer selects a candidateaccording to the perception he has or he made up
while talking or looking at the individual.This way he does not see through the caliber or the
efficiency of the individual and manytimes it leads to the selection of the wrong candidates.2:
During the selection process the interviewer does not select the individual onthe basis of his knowledge and
hence the right type of the candidates is not selected.3:
: The people from the HR department and also have a lot of pressure from thetop management and from
other top class people for selecting the candidates they want.This ways the purpose of
effective selection process of effective selection process is defeated as they have to select
that individual whether or not he is capable of the job that is being offered.
Essential of selection procedure
- Someone should have the authority to select.- There must be sufficient number of applicants
from whom the required number of employees to be selected.- There must be some
standards of personnel with which a prospective employee may becompare