Summer Training Project Report On

Procurement and Development of Life advisors
At Bharti AXA Life insurance, Delhi

Submitted in partial fulfillment of the Degree of Bachelor of Business Administration of Guru Govind Singh Inderprastha University Delhi.

Under the guidance of Mr. Dhirendra Singh Parihar

Submitted by: Name NISHANT OHRI Enrolment no.- 0591061807 Course BBA (B&I) Semester 5th Ansal Institute of Technology Gurgaon

Procurement and Development of Life advisors

EVALUATION OF PROJECT

Th is is to certify that the project titled “Procurement and Development of Life advisors at Bharti AXA, Delhi” submitted by Nishant Ohri of BBA(B&I),Semester 5th of Ansal Institute of Technology affiliated to GGSIP University, Delhi has been examined by the following examiners:

Internal Examiner

External Examiner

2

Procurement and Development of Life advisors

CERTIFICATE

This is to certify that the project titled “Procurement and Development of Life advisors at Bharti AXA, Delhi” submitted by Nishant Ohri of BBA(B&I),Semester 5th of Ansal Institute of Technology affiliated to GGSIP University, Delhi is original and authentic and has been done under my supervision and guidance.

Signature, name & designation of the supervisor

3

Procurement and Development of Life advisors

ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Procurement and Development of Life advisors at Bharti AXA, Delhi”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by the number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by Mr Dhirendra Singh Parihar and other staff members. I take this opportunity as privilege to articulate my deep sense of gratefulness to Mr. Pravind Kumar (Agency Manager) and the staff of Bharti AXA Life Insurance Company Ltd for their timely help and positive encouragement. It was a pleasure to work with these people and some other project trainees as a team. I would like to acknowledge all my family members, relatives, and friends for their help and encouragement.

4

Procurement and Development of Life advisors

INDEX CHAPTER 1 2 3 4 5 6 CONTENTS INTRODUCTION LITERATURE REVIEW RESEARCH METHODOLOGY AND DESIGN DATA ANALYSIS AND INTERPRETATIONS FINDINGS AND CONCLUSIONS BIBLIOGRAPHY PAGE NO. 6-11 12-24 25-28 29-43 44-48 49-50

5

Procurement and Development of Life advisors

CHAPTER 1

INTRODUCTION

6

Procurement and Development of Life advisors The project is about procurement and development of Life advisors. The questionnaire was designed in such a manner that it gave a general idea about the ability and capability of respondent as a prospective life insurance advisor. Certain scores were allotted depending on the answers given by the respondent. Those who were high on the scores were motivated to visit the office for conduction of their interview. After the successful completion of interview individuals were informed if they were selected for training of Life advisors. They were asked to fill the NAAF form and a fee was collected from them along with their photographs. After successful completion of training an exam was conducted and those who qualified the exam were selected as life advisors. The project report submitted here covers theory on procurement and development, flowchart of activities undertaken for procurement and development, data analysis of the survey and a list of suggestions and recommendations for the company at the end of the entire study.

7

Procurement and Development of Life advisors

OBJECTIVE OF THE PROJECT

The objective should be SMART objective. S- Specific M- Measurable A- Achievable R- Relevant T- Time bound OBJECTIVE: To recruit Life advisors during the two months in Delhi region, to interview prospective candidates to be recruited as Life Advisors and to assist in their training.

8

Procurement and Development of Life advisors

SCOPE OF THE PROJECT

The project involved recruiting life advisors for Bharti AXA Life insurance in Delhi region. The project also involved arranging preliminary training of Life advisors. The process of recruiting and training Life advisors can be broken into the following steps: • • • • • Get hands on experience of recruitment in Insurance sector. Identifying individuals who are willing to solicit insurance business as a life advisor of the company. Assisting in scheduling the training and examination of the life advisors. Assisting and coordinating with Agency Development Manager of the company for licensing and coding of Life Advisors. Applying theoretical knowledge to the recruitment practices at Bharti AXA.

9

Procurement and Development of Life advisors

LIMITATIONS OF THE PROJECT

Following are some reasons that demotivate and demoralize people from becoming Life advisors. I came across the following obstacles that arose in the process of recruitment:

Lack of awareness among the people – This is the biggest limitation found in this
sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them.

Perception of the people towards Insurance sector – People still consider
insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business.

Insurance does not give good returns – Still today people think that Insurance
does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays.

10

Procurement and Development of Life advisors

Lack of awareness about the earning opportunity in the Insurance sector – People still today are not aware about the earning opportunity that the
Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.

Increased competition – Today the competition in the Insurance sector has became
very stiff. Currently there are 16 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market.

This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very-very difficult.

11

Procurement and Development of Life advisors

12

Procurement and Development of Life advisors

CHAPTER 2

LITERATURE REVIEW

13

Procurement and Development of Life advisors

Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. • • Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. • • The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.

14

Procurement and Development of Life advisors • The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.

The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

15

Procurement and Development of Life advisors

Some of the important milestones in the life insurance business in India are:
1850: Non life insurance debuts with triton insurance company. 1870: Bombay mutual life assurance society is the first Indian owned life insurer. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956:

245 Indian and foreign insurers and provident central government and

societies taken over by the

nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the government of India.

16

Procurement and Development of Life advisors

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”.

17

Procurement and Development of Life advisors

The Insurance Regulatory and Development Authority (IRDA)
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies. But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

18

Procurement and Development of Life advisors

Bharti AXA Life Insurance
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 from Bharti and 26% stake of AXA. . The company launched national operations in December 2006. Today, we have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. The company launched national operations in December 2006. Today, we have over 5200 employees across over 12 states in the country. Our business philosophy is built around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth management needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.

19

Procurement and Development of Life advisors

The Joint Venture BHARTI and AXA

BHARTI

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 BusinessWeek IT 100 list 2007. Bharti Teletech is the country’s largest manufacturer and exporter of telephone terminals. Bharti has a joint venture with ELROo Holdings India Ltd. – ‘FieldFresh 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 Wal-Mart, for wholesale cash-and-carry and back-end supply chain management operations.

20

Procurement and Development of Life advisors

AXA Group

AXA Group is a worldwide leader in Financial Protection. 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 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.

21

Procurement and Development of Life advisors

Bharti AXA Life Insurance
Vision
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, multiproduct platform

22

Procurement and Development of Life advisors
• • • •

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 levels 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

• •

Good HR practices The guiding Human Resources principles at Bharti AXA are:
7.

Clearly define scope of responsibilities and empower people to deliver Provide people with the means to develop their competencies Consider individual training and development a priority investment Build organizations that are conducive to teamwork and that involve everyone Promote ongoing dialogue between managers and the people who report to them Make cultural difference a key source of strength

7. 7.

7.

7.

7.

Strategic differentiators

Strong partner Bharti - provides access to customer base of more than 20 million.
23

Procurement and Development of Life advisors
• •

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. Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team.

Insurance Products of Bharti AXA
Life insurance products for individuals: Bharti AXA Dream Life Pension
A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurance’s unique pension product ensures that your retirement life is your Dream Life.

Bharti AXA Life AspireLifeAspire Life

24

Procurement and Development of Life advisors Unit Linked Endowment Product. Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing you adequate protection in case the need arises.

Bharti AXA Life Invest Confident
Unit Linked Single Premium Product. You have always strived hard to achieve the best for you and your loved ones, so when it comes to making an investment decision, we know that you would expect the best from it too.

Bharti AXA Life Wealth Confident
A unit-linked investment cum protection policy. Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same?

Bharti AXA Life Future Confident
A unit-linked policy which offers comprehensive protection along with wealth creation in the long term.

Bharti AXA Life Future Confident II
A unit-linked product which offers enhanced protection along with wealth creation in the long term.

Bharti AXA Life Save Confident
Traditional money back insurance product for long term savings. 25

Procurement and Development of Life advisors Your changing lifestages decide your financial milestone planning. When you foresee intermittent financial requirements in the years to come, like regular expenses related to your child’s education, liquidity becomes a key aspect of your planning along with long term savings, and protection for your family.

Bharti AXA Life Secure Confident
A Long Term Life Insurance. All of us desire to maximise the happiness for our family at all times, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones.

Disclaimer: Tax benefits are subject to change in tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

Life insurance products for Group Insurance: Bharti AXA Life Mortgage Credit Shield
Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.

Bharti AXA Life Credit Shield

26

Procurement and Development of Life advisors Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years from Group Policyholder.

Disclaimer :

Tax benefits are subject to change in tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale

27

Procurement and Development of Life advisors

CHAPTER 3

RESEARCH METHODOLOGYDESIGN AND DESIGNMETHODOLOGY

28

Procurement and Development of Life advisors

REASEARCH METHDOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done. We can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The study of research methodology gives the student the necessary training in gathering material and arranging or car-indexing them, participation in field work when required, and also training in techniques for the collection of data appropriate to particular problem, in the use of statistics, questionnaires and controlled experimentation and in recording evidences, sorting it out and interpreting it. Knowledge of research methodology plays a key role in project work. It consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps.

Data Collection Method
Data can be collected by Primary as well as secondary method.

Primary Data Sources
Questionnaire methods and discussions were used to collect data. Questionnaire survey. Designed: Questionnaire was used for the

Secondary Data Sources
The secondary data sources were collected from the company manuals, handbooks, and management books and are edited to suite the purpose.

29

Procurement and Development of Life advisors

RESEARCH DESIGN
Exploratory type of research designs adopted because sources of information are relatively few and the purpose is merely to find and to understand the possible actions. The major purposes of exploratory study are:  Identification of problem  The precise formulation of problems including the identification of variables  Formulation of alternative course of action

Exploratory research gives valuable insight, generates ideas and hypotheses rather than measuring or testing them. Exploratory research is concerned with identifying the real nature of research problems and perhaps of formulating relevant hypotheses for various tests. A researcher uses this type of research when very little is known about the problem being examined. The major benefit is that it is less expensive and less time consuming. An exploratory research is often the first in the series of projects that culminates in one concerned with the drawing of inferences that are used as a basis of monetary action. Exploratory study is often used as a introductory phase of a larger study and results are used in developing specific technique for larger study. Of the study the relevant questionnaire was prepared and circulated among a stratified sample of 50 employees of RELIGARE INSURANCE BROKING Limited. This questionnaire formed the basis for the views on each of the points raised in the questionnaire. The data thus obtained formed the basis of information regarding the existing recruitment and selection processes at RELIGARE INSURANCE BROKING LTD. and the same is analyzed and interference is drawn regarding the various aspects of recruitment and the entire process of selection at RELIGARE INSURANCE BROKING Ltd.

30

Procurement and Development of Life advisors

Sample Design

Sampling technique:
Stratified sampling technique is adopted to conduct the research. Stratified sampling is a selection method for achieving a greater degree of representatives, therefore decreasing the probable sampling error. It is based on the concept that a homogeneous population produces samples with smaller sampling errors than does a heterogeneous population. Stratified sampling is accomplished by placing all the members of the population into groups according to some characteristics that is common among them, that is homogeneous subsets of the population. Then specified number of unit is chosen from each of the groups or strata by purposive means.

31

Procurement and Development of Life advisors

Sample Size:-

Sample size was taken 110 to undertake the survey.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION
32

Procurement and Development of Life advisors

The Recruitment Process flowchart:Following is the flowchart of steps followed in recruitment of Life advisors:

Identifying Vacancy & advertising it ↓ Prepare Job Description and person Specification ↓ Short-listing on the basis of ‘Q’ scores ↓ Conduction of interview ↓

33

Procurement and Development of Life advisors

Filling up the compulsory IRDA form ↓ Scheduling the training ↓ Conduction of examination ↓ Final selection as LA

The elaboration on all the steps given in the flow chart above is given in the following pages.

Identifying vacancy and advertising it: The following changes in the scenario
led to the increasing vacancy for life advisors in Bharti AXA, Delhi. Expansion of business as well as market. Growing competition. Change in demographics. After the identification of vacancy pamphlets containing the details were prepared and were distributed. The pamphlet used has been provided as Annexure 1.

Preparing job description and person specification: Career Bandwidth as a Life advisor at Bharti AXA:
As a Life Advisor at Bharti AXA, there is only one way to grow. And that’s by meeting and exceeding your targets. As a good performer, you stand to get promoted from Bronze to Diamond Club and enjoy special remuneration benefits.

34

Procurement and Development of Life advisors As a Life Advisor, you can get appointed as an Agency Manager within a span of just 9 months to 1 year. As a Life Advisor, you also get to participate in various business related projects and committees.

Compensation
As a Life Advisor, you have the opportunity to create attractive earnings for the first year and for the long term through payouts. Higher the business you generate in the first year, higher the income you stand to earn year after year. Get rewarded through Best in Class Rewards and Recognition programs including overseas conventions.

Support
All Bharti AXA branches have HR services for support on all matters related to compensation and career so you can redress your concerns immediately. Comprehensive marketing support in terms of brochures, illustrations etc. Sales Management Support for on the job training and business closure. Infrastructure & Technology support through dedicated Life Advisor’s bay equipped with telephones, computers and internet at Bharti AXA premises. Customer Service and operations support.

Short Listing on the basis of Q scores:
The five Qs- The Qs are 5 different criteria where the candidates are to be analyzed. Q1- The candidate should have been a resident of Delhi for at least five years. Q2- He/ She should be married.

35

Procurement and Development of Life advisors Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs. Q4- He/ She should be a graduate. Q5- Minimum age to be eligible for being a life advisor is 24.

The significance of Qs
A high Q score implies possibility of better performance by the candidate as a life advisor (meaning better revenue generation ability). On an average only a candidate with a score of Q4 or Q5 was interviewed. A low Q score implies lesser possibility of such performance.

Conduction of interview:
Pre- interview: Preparation of recruitment /selection document for Advertising. Preparing advertisement Media selection Positioning

Response handling
Initial interview online or telephone Short-listing for interviews Interview arrangement Sending emails or calling short listed candidates Interview details to the short listed candidates

36

Procurement and Development of Life advisors

During Interview
HR interview Technical interview Conducting tests [Aptitude / Mathematical / Analytical etc.] Initial final list of candidates Reference check (if required)

Post interview
Email or Telephone call to unsuccessful candidates. Technical Manager approval for a start up date. Email or Telephone call to successful candidates. HRM prepares a letter of appointment.

Selection Process
Starts with the preliminary interview. Ends with contract of employment. Different process for different organization. Different process for different job in same organization. Affected by internal & external environment. Mutual decision making.

Filling up of compulsory IRDA form: A NAAF (New advisor application form)
is to be filled up by the candidate. 37

Procurement and Development of Life advisors

Scheduling of the training: Guidelines as per provisions of IRDA Act for training
of life advisors. The applicant shall have to undergo at least 50 hours of practical training in life or general insurance business which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent. The training duration should be minimum 18 working days excluding Sundays and holidays. No product training/market survey should be included into this hundred 50 hours training. The product training, if any, to be given by the insurance company should be over and above the minimum training hours prescribed by the Authority The attendance record of the trainees should be maintained at the Institute for necessary inspection at any given point of time. In case of short-fall of attendance, extra class may be permitted but the extra hours may be specified separately with proper attendance and details of faculty.

38

Procurement and Development of Life advisors Every Institute should have at least one qualified permanent faculty who is an Associate or Fellow from the Insurance Institute of India for each stream i.e. for Life and Non-Life. The attendance register of the faculty members should be maintained at the training institutes. The record of the payment made to faculty should be maintained at the training institute i.e. batch-wise payment detail should be maintained. The faculty should provide details of the other Institutes with whom they have been empanelled as part-time/guest faculty. Register should be maintained at the training institute giving details of batches completed, strength of the each batch, number of candidates decertified, name of the sponsored insurer and details of faculty who imparted the training with dates. The seating capacity of each class-room should not exceed 40. The insurance companies would regularly send their officials to oversee the proper conduct of the training at the institutes and would not sponsor candidates to those institutes that are not maintaining the required standards of and facilities for the training. The training institute must display the certificate of accreditation to impart training issued by the Authority at the training institute. The Institute should not allow a franchisee to conduct courses on its behalf even if the faculty is that of the Institute. The Institute should conduct the training on its own premises or hired premises with proper infrastructure. No marketing fee/consultancy fee payment is permitted for getting the training batches. It will be the responsibility of the Insurance Company to check the status of the institute before sponsoring any candidates for training. The Institutes must keep with them one set of records of the training at the place where the training is being imparted. The Institute should confine its activities only to the place/city for which it has been given the approval. No training outside the said place/city is permitted. The Institutes must submit a copy of the lease deed/rent agreement at the time of seeking fresh accreditation/renewal/change of address of the institute.

39

Procurement and Development of Life advisors On successful completion of training the candidates get COT i.e. the Completion of Training Certificate by Bharti AXA.

1. Conduction of examination:
7.1 Syllabus: The syllabus prescribed by the authority for life insurance agents is given in annexure 2. The self study course material developed by institute in book form only the broad basis of examination which is available for sale with the institute and its associated institutes. A candidate is expected to study the course material in depth and also assimilate general information relevant to the subject. Candidate is also expected to know up-to-date developments in the insurance industry. 7.2 Pattern of examination: Normally objective type multiple choice questions are asked. A candidate is required to indicate the correct alternative. A candidate is required to secure at least 50% marks to be declared successful. But the institute reserves the right to change, the pattern of question paper for the examinations without notice to anyone to test the knowledge of the candidate as it deems fit.

40

Procurement and Development of Life advisors 7.3 Mode of examination: The test can be taken up in either of the two modes- online or offline. Depending on the mode of testing the training is also arranged. For online mode the training is also done online whereas in offline mode the training is done in the class room format of. The duration of classroom training is 3+2 days. Where 3 days are reserved for compulsory IRDA training and the remaining 2 days are for product based training. 7.4 Admission card: No candidate will be allowed to appear for the examination unless he/ she produces the admission card. The admission card will be issued by Bharti AXA. Besides admission card candidate must possess COT issued by Bharti AXA.

2. Final selection as Life Advisor:
communicated to the candidate.

The final selection as Life advisor is

SURVEY QUESTIONNAIRE
1. Name: 2. Age: 3. Sex: 4. Occupation: • Government Employee • Private Employee • Student • Proprietor • Others 5. Number of Years spent in Delhi: • Less than 1 year • 1-3 years • 3-5 years • 5-above years

Male

Female

41

Procurement and Development of Life advisors

6. Marital Status: 7. Do you live in joint family?

Married Yes

Unmarried No

8. Which is your biggest concern for future? • Child education • Retirement • Child’s marriage • Medical illness 9. Have you made provision for future liabilities? • Yes • No 10. Given a chance would you like to make extra money? • Yes • No

Analysis 1 Age of respondents: the following is the distribution of age of the respondents. Age Number of individuals <25 Years 58 25-35 Years 40 35-45 Years 7 >45 Years 5

Age of respondents

N u m b er of in di vi d u al s
70 60 50 40 30 20 10 0 <25 years 58

40

7

5

25-35 years Age

35-45 years

>45 years

Interpretation: Less than 25 years of age individuals constitute 52.72% of sample size. 42

Procurement and Development of Life advisors Whereas individuals with more than 45 years of age constitute only 4.545%.

Analysis 2
Sex of respondents
Sex of Respondent
male female

female, 28

male, 82

Interpretation: Sample is dominated by males which constitute 74.54% of total size.

Analysis 3
Occupation of Respondents Occupatio n Number Studen Pvt. t 44 Employee 35
others, 4 proprietor, 16

Govt. Employee 11

Proprietor 16

Others 4

govt. employee, 11

pvt. Employee, 35 govt. employee pvt. Employee student, 44 student proprietor others

Interpretation: Sample is dominated by students and Private Employees (71.81%).

43

Procurement and Development of Life advisors

Analysis 4
Number of Years spent in Delhi.
number of years

Number of years spent in Delhi
24 23

Less than 1 years

1-3 years 3-5 years 5-above years 0 5 10 15 20 16

47 25 30 35 40 45 50

number of individuals

100 80 60 40 20 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East We st North

Interpretation: Most of the individuals (less than 1 yr) have come to Delhi to study or work.

Analysis 5

Marital status:

44

Procurement and Development of Life advisors

Marital status

married 29
married unmarried

unmarried 81

Interpretation: 73.63% of the sample size is Unmarried people.

Analysis 6
Question: Do you stay in a joint family in Delhi ? Yes – 39 No- 71
Family type of respondent
80 71 70 60 50 40 30 20 10 0 39

staying in joint family

not staying in joint family

Interpretation: Almost 64.54% of Individuals are not staying in joint family.

Analysis 7

45

Procurement and Development of Life advisors Question: What is your biggest concern for future?
Biggest concern for future

medical illness, 35

child education, 43

child's marriage, 7

child education retirement, 25 retirement child's marriage medical illness

Interpretation: medical illness (32%) & child education (39%) are major concern for future.

Analysis 8
Question: Have you made provision for future liabilities? Yes: 31 No: 79
Have you made provision for future Liabilities.

yes, 28.19%

no, 71.81%

Interpretation: 71.81% of the individuals have made no provision for the future liabilities.

46

Procurement and Development of Life advisors

Analysis 9
Question: Given a chance would you like to make extra money? Yes: 83 No: 27

Given a chance would you like to make extra money?
no, 24.54%

yes, 75.45%

Interpretation: 75.45% of the individuals would like to make extra money. Such individuals are identified and then they are motivated become Life advisors for an extra source of income.

47

Procurement and Development of Life advisors

CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

48

Procurement and Development of Life advisors

FINDINGS

The findings are based on the survey undertaken and interview of individuals for the procurement of life advisors.

Finally selected Life advisors

4
Individuals selected for IRDA training-

7
13

Among the Individuals with scores > than Q3, those interviewed-

Among the individuals who were willing to make extra money, those with Q score greater than 3- 24

Among the individuals surveyed, the individuals who were willing to make extra money-

83

Total number of Individuals surveyed -110

49

Procurement and Development of Life advisors

Procurement and development of Life advisors
Individuals finally selected as life advisors Individuals selected for IRDA training Individuals interviewed Individuals with Q score greater than 3 Individuals willing to make extra money Individuals surveyed
0 10 20 30 40 50 60 70 80 90

4 7 13 24 83 110
100 110 120

Number of individuals

The major findings are:
1 2 3 4 5 6 After undertaking the entire process of questionnaire survey, individuals were analysed on the basis of their Q scores. Those individuals whose Q score was greater than 3 were considered better prospects to be Life advisors. 13 individuals were Inter viewed. 7 individuals were selected for IRDA training. 4 individuals successfully completed the training and passed the Exam and were finally selected as Life advisors at Bharti AXA Life Insurance, Delhi. The Individuals finally selected as Life advisors constitute 3.63% of Sample size.

50

Procurement and Development of Life advisors

SUGGESTIONS

• •

The fee charged from candidates as application money should be waved off. It should rather be paid by the Insurance Company. The strict training schedule should be made flexible. For a person who is Q4 or Q5 on score it is difficult for him/ her to be able to come for training especially in case when he/ she is already working.

• •

The incentive system should be more attrative to motivate more and more people for becoming Life Advisors. More and more promotional activities should be held for enhanced brand building which will facilitate revenue generation and increased satisfaction leading to customer retention in the long run.

51

Procurement and Development of Life advisors

CONCLUSION
For the purpose of this report, it was found that the questionnaire and interview questions, employee manual were sufficient to obtain the information required to analyze the process of requirement and selection within the organization. It has been found that the organization has a sound understanding of what process need to be used in order to achieve effective recruitment and selection of Life advisors. . The general perception of life insurance has to change in India before progress is made in this field.

52

Procurement and Development of Life advisors

CHAPTER 6

BIBLIOGRAPHY

53

Procurement and Development of Life advisors

BIBLIOGRAPHY:

• • • • •

www.irdaindia.org www.bharti-axalife.com www.wikipedia.org www.ibef.org NAAF Indian brand equity forum

54

Procurement and Development of Life advisors

Annexure 1

PERSONAL DETAIL FORM

DATE: NAME: AGE: OCCUPATION: ADDRESS: CONTACT NUMBER: D.O.B:

FAMILY DETAILS:
NAME FATHER: MOTHER: BROTHER: SISTER: AGE OCCUPATION

E-MAIL:-

Annexure 2
55

Procurement and Development of Life advisors

Broad syllabus for pre- recruitment exam for life insurance agent: 1. Introduction to insurance: • • • • • • What is insurance Purpose and need of insurance Classification of risk The human asset Insurance as a social security tool Role of insurance in economic development

2. principles of life assurance: • • • • • life insurance contracts principle of utmost good faith insurable interest principle of indemnity different risks

3. premium and bonus • • • • • what is premium? Premium calculation Life fund Actuarial valuation Bonus

4. life insurance products

56

Procurement and Development of Life advisors • • • • • • • basic elements some popular plans variable insurance plans salary saving schemes riders annuities group insurance

5. underwriting • • • • • • • introduction classification of risk financial underwriting assessing risk adverse selection non medical underwriting recent rends

6. insurance documents • • • • • proposal form and personal statements first/ renewal payment receipt policy document endorsement prospectus

7. policy conditions • • • • age, days of grace lapse and non- forfeiture paid up value revival

57

Procurement and Development of Life advisors • • • • • • • • • • assignment, nomination surrenders and loan foreclosure alterations married women’s property act policy maturity claims survival benefit payments death claims accident and disability benefits claims concessions.

8. claims

9. unit linked life insurance products • • • • • • • • what is linked policy option of funds net asset value (NAV) flexibility lock in charges ULIP and traditional insurance Annuities and pensions

10. insurance agency • • • • • • definition of an agent agents’ regulation procedure for becoming an agent methods of remunerating agents agency as a profession functions of agents

58

Procurement and Development of Life advisors • • • responsibilities of an agent pre requisites for success ethical behavior

11. law and regulations • • • • • • • • • insurance act 1938 LIC act 1956 IRDA act 1999 Consumer protection act 1986 (COPA) Ombudsman Income tax act MWP act Rural and social sector Micro insurance

59

Procurement and Development of Life advisors

Annexure 3
SURVEY QUESTIONNAIRE
1. Name: 2. Age: 3. Sex: 4. Occupation: • Government Employee • Private Employee • Student • Proprietor • Others 5. Number of Years spent in Delhi: • Less than 1 year • 1-3 years • 3-5 years • 5-above years 6. Marital Status: 7. Do you live in joint family? Married Yes Unmarried No

Male

Female

8. Which is your biggest concern for future? • Child education • Retirement • Child’s marriage • Medical illness 9. Have you made provision for future liabilities? • Yes • No 10. Given a chance would you like to make extra money? • Yes • No

60

Procurement and Development of Life advisors

61

Sign up to vote on this title
UsefulNot useful