You are on page 1of 11

INDUSTRIAL TRAINING PROJECT REPORT

UNDER TAKEN
@
ON
DYNAMIC OF AGENCY RECRUITMENT
(Bharti AXA Life Insurance)
Prepared by:
MBA - 3rd SEM.
Roll no. 8 Seat no.
Name of the Institution

DECLARATION
I Undersigned the student of MBA 3rd SEM by declare that the project report is my own work and has carried
out under the guidance and supervision of Prof. ABHAY RAJA and other Prof. of T.N.Rao College, RAJKOT.
Further I declare that it has not been submitted to any other university of examination.
Date: Sign. Of Student

PREFACE

In this age of neck to neck competition, there is much importance given to practical knowledge.
The theorical knowledge is not sufficient to understand the boundless field of business
management.
Today every person wants to be a master in the field they are in. The practical training is a life of
management student. In modern world the importance of management is increasing day by day.
Industrial training provide a student sufficient knowledge to develop an education to connect
theory and practical.
So to fulfill our purpose I have done training at BHARTI AXA LIFE INSURANCE

ACKNOWLEDGEMENT
It is my great pleasure to present this report before you. I sincerely would like to show my gratitude towards all
those persons who have helped me throughout my project work
I am heartily thankful to Mr. Samson Pinto, Company guide, Bharti Axa Life lnsurance Ltd., Ahmedabad
for giving me his valuable guidance for preparing this report. He has been an exceptional mentor during these
two months of SIP. It has been a great learning experience of being a trainee under him.
I would like to express my special thanks to all the another official who has helped me a lot during this SIP.
Their critical advices helped me to make this report more effective.
Moreover, I thanks to prof. ABHAY RAJA who guided me before and after the industrial training. He gave me
great support to prepare this project, too. And all who directly or indirectly helped me in preparing this report.

INDEX
1. Sectors Profile
2. Company Profile
3. Executive Training
4. Introduction to IRDA ACT
5. Introduction Insurance Advisor
6. Executive Task Assigned & Achieved
7. Methodology
8. Analysis of performance v/s Target
9. SWOT Analysis
10. Suggestion
11. Limitation
12. Questionnaire
13. Conclusion
14. Bibliography

Sectors
Profile

INDEX
i. Introduction Insurance Sector
ii. Brief History
iii. Insurance Sector in India
iv. Scenario Insurance Industry in India
v. Contribution to GDP
vi. Status of Insurance Industry
vii. Insurance Sector Before Privatization
viii. Insurance Sector After Privatization
ix. Future of Insurance Sector
x. Life Insurance

INTRODUCTION TO INSURANCE SECTOR


In India, the concept of insurance was never given a serious thought, as compared to other countries. Life insurance
premium to Gross Domestic Product (GDP) ratio is a mere 1.4% as compared to a healthier rate of 8% amongst other
developing countries. The reason being lack of awareness and opportunities combined with poor state of services
provided.
Presently in India, the insurance sector is nationalized; Life Insurance Corporation of India (LIC) and General
Insurance Company (GIC) render services along with its 4 subsidiaries. While LIC provides life insurance, GIC is
concerned with non life insurance like - motor, marine, fire, health and personal accident insurance.
LIC has been one of the pioneering organizations in India, which ushered in the use of information technology in
their business on a very large scale to deliver more value and satisfaction to the policyholders. LIC has fully
computerized most of its branches all over India. Metropolitan Area Network (MAN) has enabled policyholders to
pay premiums or to get their status report, surrender value quotation and loan quotation online. The Zonal Offices and
MAN centers are connected through a Wide Area Network (WAN). Interactive Voice Response Systems have been
made functional in a number of centers all over the country.
The insurance industry in our country is on the threshold of a new era of rapid expansion. A more competitive
environment is expected to emerge with new private participants being allowed to enter the insurance industry. The
need for private sector participation in this sector is justified on the basis of enhancing the efficiency of operations,
achieving a greater density and penetration of life insurance in the country and for a greater mobilization of long-term
savings for long gestation infrastructure projects. In the wake of emerging competition, LIC, with its more than four
decades of experience and wide reach, is equipped to face the challenges emanating from the entry of new players.
Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is:
Insurance Act, 1938, Insurance Regulatory & Development Authority Act, Composition of Authority under IRDA
Act, 1999

BRIEF HISTORY
The origin of insurance is very old .The time when we were not even born; man has sought some sort of protection
from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and
uncertainty led to the origin of insurance.
The insurance came to India from UK; with the establishment of the Oriental Life insurance Corporation in 1818.The
Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business
in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the
central government took over these companies and as a result the LIC was formed. Since then LIC has worked
towards spreading life insurance and building a wide network across the length and the breath of the country. After
the liberalization the entrance of foreign players has added to the competition in the market.

INSURANCE SECTOR IN INDIA


The insurance sector in India has witnessed almost a 360-degree turn over a period of almost two centuries. It has
come a full circle from being an open competitive market to nationalization and back to a liberalized market again.
DEVELOPMENT OF INSURANCE IN INDIA
The business of life insurance in India started in the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta. Some of the important milestones in the life insurance business in India are:
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 societies taken over by the central government and 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. Despite all these the insurance market is currently underdeveloped in India. This is mainly
because of the following reasons.
The large-scale of operations, public sector bureaucracies and cumbersome procedures.
The highest paid employees of the nationalized insurance companies are characterized by abysmal productivity,
utter ignorance of the basic principles of the insurance business, endemic corruption, gross indiscipline and sheer
laziness.
Dominating the inevitably weak management of the nationalized insurance companies, the militant and strongly
unionized employees of the nationalized monopoly insurance companies have transformed Indian insurance from
volume-driven into class-based business.

SCENARIO OF INSURANCE INDUSTRY IN INDIA


India with its large population does provide an immense potential for the insurance industry to flourish. Below given
are some of the statistics pertaining to Indian insurance Industry.
INDIA AT A GLANCE:
Population: 1 Billion
Economy: 5th largest in the world in terms of Purchasing
Power Parity (PPP)
GDP growth Rate: Over 6% per year on an average for the
last decade
Savings Rate: Around 26% of GDP
Estimated middle class population: 300 Million
Insured population: 70 million only
Estimated business (2008): $6.6 Billion
This characteristic of their business makes insurance companies the biggest investors in long-gestation infrastructure
development projects in all developed and aspiring nations.
The insurance sector in India has come up a full circle from being an open competitive market to nationalization and
back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.
By any yardstick, India, with about 200 million middle class households, presents a huge untapped potential for
players in the insurance industry. Saturation of markets in many developed economies has made the Indian market
even more attractive for global insurance majors. The following table reflects the low percentage and per capita
penetration of insurance in India compared to other developed and developing countries. With the per capita income
in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for
insurance is expected to grow at an attractive rate in India.

CONTRIBUTION Contribution to
TO GDP Insurance
GDP (Premium as
sectors contribution to % of GDP)
GDP of different
countries are as follow:,

Countries
UK
Japan
US
South Africa
Australia
South Korea
India
China
Malaysia
Indonesia
Brazil

12.71
8.70
4,48
14.04
6.04
9.89
1.77
1.12
2.13
0.54
0.36