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Executive summary

1 Introduction

2 Overview of the study

3 About Insurance Industry

4 About Welfare Facility

5 Data analysis and Interpretation

6 Findings & Suggestions

7 Conclusion & Bibliography

8 Questionnaire.

Welfare means faring or doing well. It is a comprehensive term, and refers

to the physical, mental, moral and emotional well-being of an individual.
Further, the term welfare is a relative concept, relative in time and space. It
therefore, varies from time to time, region to region and from country to

Insurance industry is one of the major sector which provides huge

employment opportunities with welfare facilities in addition to a good salary.
Companies are spending lot of money on the employee welfare. The
expenses spent by the organizations are less in return to the benefits which
it receives from the employee’s hard work. Welfare facility provided by
organizations is unique for all the employees. The only difference is that the
top level officers receive some additional facility along with routine one.

With the help of the project on attempt is made to study the welfare
measure provided to employees. What is the procedure, time required for
sanctioning welfare facility and such other basic requirements provided by
the organizations

The study is based on the information collected from respondent through

questionnaire. The data analyzed is presented in the form of graphs and on
the basis of that conclusion are made. In the last, the required suggestions
are given.

After analyzing the data it is found that the employees are satisfied with the
welfare facilities provided to them by the companies.


Welfare is based concept employees welfare is a comprehensive term

including various services, benefits and facilities offered by the employees
thought such a generous fringe benefits the employers makes life worth
living for employees the welfare amenities extend in addition to normal
wages & other economic rewards available to employees as per the legal

The various welfare measures provided by the employees will have

immediate impart on the health, physical & mental efficiency, alertness,
moral & overall efficiency of the workers & there b contribution to the
highest productivity.

Welfare measures may also be provided by the government trade unions,

and non-government agencies in addition to the employer. The basics
purpose of welfare facility is to enrich the life of employees and keep them
happy and contended.


The benefits are of great importance to the worker which he is unable to

secure by himself. The scheme of employee welfare may be regarded as a
wise investment because these would be the profitable returns in the form of
great efficiency.
Problem Statement



Objectives of the study

1) The objective of carrying the study is to study welfare facilities provided

by the insurance industries to the employee

2) To portray accurately the characteristic of a particular individual, situation

or a group.
3) To analyze the procedure regarding how the welfare facilities are
provided to the employees by the bank.
4) To know the satisfaction level of employees about welfare facilities & view
towards the bank policies of providing welfare facility.

The important needs of welfare facilities are

1) To boost up employees moral

2) To motivate the employees by identifying and satisfying these
unsatisfied needs.
3) To provide qualitative work environment and work life
4) To provide security to the employees against social risks like old age
benefits and maternity benefits
5) To protect the health of the employees and to provide safety to the
employees against accidents
6) To create a sense of belongingness among employees & to retain

them. Hence, fringe benefits are called golden.

The methods used for conducting the study are
• Exploratory Research

• Descriptive Research Method

Initially Exploratory Research Method has been implemented for initial

understanding of the problem.

Following are the data collection method:-

1. Monitoring
2. Observation
3. Interaction with employees
Descriptive Research Method

1. Structured Interview
2. Questionnaire


Once the information is been collected the data analysis is done by

interpreting the information into data where ever it is required & answering
the Questions of the survey.


The result which we get after doing the survey and doing all the data
analysis etc…we will come to know the Job satisfaction level of employees of
different insurance companies.

1) The study may not cover each & every facility provided by the
2) The result may be depended on the answer received from respondent.
3) The study does not cover entire workforce
4) The study is based on a particular class of employees i.e. officers, clerk,
& sub staff.

Overview of the study

Employee welfare defines as “efforts to make life worth living for workmen”.
These efforts have their origin either in some statute formed by the state or
in some local custom or in collective agreement or in the employer’s own

• To give expression to philanthropic and paternalistic feelings.

• To win over employee’s loyalty and increase their morale.
• To combat trade unionism and socialist ideas.
• To build up stable labour force, to reduce labour turnover and
• To develop efficiency and productivity among workers.
• To save oneself from heavy taxes on surplus profits.
• To earn goodwill and enhance public image.
• To reduce the threat of further government intervention.
• To make recruitment more effective (because these benefits add to
job appeal).

Principles of Employee Welfare Service

Following are generally given as the principles to be followed in setting up a

employee welfare service:

• The service should satisfy real needs of the workers. This means that
the manager must first determine what the employee’s real needs are
with the active participation of workers.
• The service should such as can be handled by cafeteria approach. Due
to the difference in Sex, age, marital status, number of children, type
of job and the income level of employees there are large differences in
their choice of a particular benefit. This is known as the cafeteria
approach. Such an approach individualises the benefit system though
it may be difficult to operate and administer.
• The employer should not assume a benevolent posture.
• The cost of the service should be calculate and its financing
established on a sound basis.
• There should be periodical assessment or evaluation of the service and
necessary timely on the basis of feedback.


Welfare service may broadly be classified into two categories

1) Intramural activities which are provided within the establishment such

as latrines & urinals, crèches, rest centers, canteens, uniform, library,
medical aid, subsidized food, shift allowance etc.
2) Extramural activities which are undertaken outside the establishment
such as family planning, child welfare, co-operative stores, credit
societies, vocational guidance, holiday hams, leaves travel facilities,
transport to and from the place of work etc.

Intramural Extramural

Drinking water Housing

Toilet Educational Facility

Crèches Maternity benefit

Washing & bathing facility Transportation

Rest shelter Sport facility

Uniform & protective clothing Leave travel

Recreation facility Vocational training

Canteen Holiday homes

Subsidies food Co-operative stores

Medical aid Fairprices shops

Social insurance

Labour welfare may also be divided into two categories

1) Statutory welfare work comprising the legal provision in various pieces

of labour legislation
2) Voluntary welfare work includes those activities which are undertaken
by employers for there worker voluntarily. Many employers,
nowadays, after the following welfare amenities voluntarily

A scheme of worker’s education was envisaged on an all India basis by the

government of India, way back in 1957. After assessing the scheme, the
National Commission on labour, 1969 (NCL), felt that the scheme is not
protect and requires improvement the committee on labour welfare (CLW),
1969, recommended that trade union should assume on active role in
educating workers and run schools for promoting literacy among the children
of workers. To be effective, the programme of workers education should be
formulated administered and implemented by the trade union themselves.
Education facility for workers children are usually in industrial town ship in
the form of school, college set up by the government or by employers. Many
employers so far have been generous in meeting the cost of books; annual
fee etc, on a voluntary basis, there is no statutory obligation in respect of
education for workers children in any industry except in plantation.


An industrial housing scheme was introduced in 1952 under this scheme;

the central government offers loans to industrial workers for constructing
houses at concessional rate. The low income group housing scheme (1954),
subsidies housing scheme for economically worker section of society (1952),
rural house-site-cum-hut construction scheme for landless workers (1971)
has also been introduced to reduce the housing shortage to workers.
The committee and worker labour welfare, 1969 recommended the provision
of transport facility to workers so that they can reach the workplace
punctually and comfortable.


Through there is no statutory stipulation in this area progressive employers

both in the public and private sector consciously offered facility for
recreation sports and cultural activities for example- companies like NIIT
and TISCO have appointed a chief fun officer to take care of parties and
functions held on every Friday. In addition to holiday packages, dating
allowances, anniversary, birthday gift, games and competition and weekend
& eating session.


These are basically intended to improve the comfort level of workers while
at work & include the following

 Canteen, restroom and lunchroom

 Washing facility, medical aid, leaves travel
 Consumer cooperative stores.


Insurance, in law and economics, is a form of risk management primarily

used to hedge against the risk of a contingent, uncertain loss. Insurance is
defined as the equitable transfer of the risk of a loss, from one entity to
another, in exchange for payment. An insurer is a company selling the
insurance; an insured or policyholder is the person or entity buying the
insurance policy. The insurance rate is a factor used to determine the
amount to be charged for a certain amount of insurance coverage, called the
premium. Risk management, the practice of appraising and controlling risk,
has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known

relatively small loss in the form of payment to the insurer in exchange for
the insurer's promise to compensate (indemnify) the insured in the case of a
large, possibly devastating loss. The insured receives a contract called the
insurance policy which details the conditions and circumstances under which
the insured will be compensated.

History 0f Insurance industry in India

In 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’ contracts. Insurance in India has evolved
over time heavily drawing from 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 Equitable had begun
transacting life insurance business in 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 Act, 1938
with comprehensive provisions for effective control over the activities of
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, decided to nationalize
insurance business.

An Ordinance was issued on 19th January, 1956 nationalising 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 year 1850 in Calcutta by the British. In 1907, the
Indian Mercantile Insurance Ltd, 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 Associaton of India. The General Insurance Council framed a code
of conduct for 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
In 1972 with the passing of the General Insurance Business (Nationalisation)
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 1sst 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
recommendations for reforms in the insurance sector.The objective was to
complement the reforms initiated in the financial 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 be allowed to enter by floating Indian
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
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April, 2000. The
key objectives of 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’ interests.

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.

Several commonly cited principles of insurance include:[1]

1. Indemnity – the insurance company indemnifies, or compensates the

insured in the case of certain losses only up to the insured's interest
2. Insurable interest – the insured typically must directly suffer from
the loss
3. Utmost good faith – the insured and the insurer are bound by a
good faith bond of honesty and fairness
4. Contribution – insurers which have similar obligations to the insured
contribute in the indemnification, according to some method
5. Subrogation – the insurance company acquires legal rights to pursue
recoveries on behalf of the insured; for example, the insurer may sue
those liable for insured's loss
6. Causa Proxima or Proximate Cause – the cause of loss (the "peril")
must be covered under the insuring agreement of the policy, and
dominant cause must not be excluded
Types of Insurance

1. Life Insurance

Some important life insurance companies in INDIA are

• Life Insurance Corporation of India (LIC)

• HDFC Standard Life Insurance Company Ltd.
• Max New York Life Insurance Co. Ltd.
• ICICI Prudential Life Insurance Company Ltd.
• Kotak Mahindra Old Mutual Life Insurance Limited
• Birla Sun Life Insurance Company Ltd.
• Tata AIG Life Insurance Company Ltd.
• SBI Life Insurance Company Limited .
• ING Vysya Life Insurance Company Private Limited
• Bajaj Allianz Life Insurance Company Limited
• Metlife India Insurance Company Ltd.
• Reliance Life Insurance Company Ltd.

2. General insurance

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited
3. National Insurance Company Limited

4. United India Insurance Company Limited

5. Royal Sundaram Alliance Insurance Company Limited

6. IFFCO Tokio General Insurance Co. Ltd

7. TATA AIG General Insurance Company Ltd.

8. Bajaj Allianz General Insurance Company Limited

9. ICICI Lombard General Insurance Company Limited.


Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is

empowered to redress customer grievances in respect of insurance contracts
on personal lines where the insured amount is less than Rs. 20 lakhs, in
accordance with the Ombudsman Scheme. Addresses can be obtained from
the offices of LIC and other insurers.

Insurance companies provide the following welfare facility to their

employees .

1) Canteen
2) Housing rent allowance
3) Holiday home
4) Reimbursement of educational benefit
5) Good working condition
6) Reimbursement of expenses towards medical check-up

A good and well maintained canteen facility is available at the some
regional level offices, for employees. Also foodstuff are supplied at
subsidized prise in canteen


INSURANCE companies provide cheap & recent house rent allowance
facility to there employees.

Some insurance companies established holiday homes at a number of hill
station, health resort & other countries with low charges of
accommodation, so as to encourage employees to use this facility for rest
in a salubrious environment.
The scheme is intended to reimburse educational expenses incurred by
employees for educating his/ her children and/or by self for persecuting
higher studies.


working condition in offices are excellent the environment is neat and
clean everywhere & at, premises gardening is done so that greenery is
there the pleasant environment of office keeps employees fit & fine


Employees are covered under the scheme reimbursement is permissible
toward medical check-up of spouse and to the parents of the emplyee
also. Reimbursement is permitted once doing the year. An employee
claiming for reimbursement has to submit the bill and a certificate from
the doctor stating that the employee/spouse has/ have undergone total
medical- check up.
Insurance industries provide the following special welfare facility.
This facility is provide to the top level officers only



6% of BP pm. Provided the period of officiating is not less than 7 days in
a calendar month or a continuous period of 7 days. This allowance will
rank for PF only.

if an officer is deputed to serve as a member of the facility in any
teaching establishment of the company office he shall be eligible to a
deputation allowance at 4% of his BP subject to a maximum of Rs.750/-
pm. however, if deputed to an outside organization and does not opt for
the scale of that organization then the deputation allowance will be
7.75% of the basis pay subject to a maximum of Rs 1500pm
The reimbursement of bed charges, zonal manager has to authorized, for
sanctioning charges for officers for treatment of self, up to Rs.1000/- for
officer in scale IV & above and up to Rs.750/- for officer up to scale III
and for charges incurred over the aforementioned amount zonal authority
may recommended to H.O. for reimbursement 100% reimbursement for
office who dies in harness.

Bed charge on hospitalization involving admission in ICU/ICCU, scale IV

and above Rs.2000/- per day and up to scale III Rs.1500/- Per day.



Eligible officer who own and use a vehicle for bank’s works have option to
claim reimbursement of traveling expenses either or monetary basis or in
term of consumption of petrol per month. Optioned can be exercised only
once and will not be allowed to be change in type of vehicle and/ or place
of posting. Promotee officers during the probationary period and DRU’s
during the first year of probation are not eligible. However, they may be
reimbursed actual expenses incurred by them.

Data analysis

Process of data can be categories into :

1) Editing
2) coding
3) classification
4) tabulation
The data after collection has to be proceed & analyze in accordance with
the outline laid down for the purpose at the time of developing the
research plan this is essential for a scientific study and for ensuring that
we have all relevant data for making contemplated comparison and

Technically speaking, processing implies, editing, coding, classification

and tabulation of collected data so that they are amenable to analysis the
term analysis refers to the computation of certain measure along with
searching for pattern of relationship that exist among data group
thus ,“In the process of analysis, relationship or differences supporting or
conflicting with original or new hypothesis should be subjected to
statistical test of significance to determine with what validity data can be
said to indicate any conclusion.”

The concept of processing and analysis, can now proceed with the
explanation of all the processing operations-

Editing involves a careful scouting of the completed questionnaire add/ or

schedules. Editing is done to assure that the data are accurate, consistent
with other facts gathered, uniformally entered, as completed as possible
and have been well arranged to facilitate coding & tabulation

Coding is necessary for efficient analysis and through it the several
replies may be reduced to a small number of classes which contain the
critical information required for analysis. Coding decision should usually
be taken at the designing stage of the questionnaire.

The necessities classification of data which happen to be the process of
arranging data in group or classes on the basis of common characteristic
of data having a common characteristic are placed I one class and in this
way the entire data get divided into a number of group or classes.
Tabulation is the process of summarizing row data & displaying the same
in compact form (i.e. in the form of statistical tables) for further analysis.
In a broader sense, tabulation is an orderly arrangement of data in
columns & rows.

Ques 1: How many Welfare facility are you availing on routing basis?


40% 1 to 5
5 to 10

10 & above


50% employees say that they are availed 10 & above Welfare Facility and
reset of 40% & 10% employees saying that they are availing 1 to 5 and 5 to
10 Welfare facility respectively.
Ques 2: How many special welfare facilities have you availed?


1 to 5




80% employees says that they are availing 1 to 5 special welfare facility
rested 20% employees are not availing any special welfare facility.
Ques3: How much time it will take sanctioning a routine welfare facility?

1 to 2 week
2 to 3 week
1-2 month


From the chart it is observed that, all employees says that for sanctioning
a routine welfare facility time require is 1 to 2 week.
Ques 4: How much time it will take sanctioning a special welfare facility?


1 to 2
3 week



From the above chart it is observed that 90% employee’s say that for
sanctioning a special welfare facility time required is 1-2 week. & 10%
employees says that time required for sanctioning welfare facility is 3
Ques 5: Briefly explain the procedure of availing routine welfare facility in

20 Making an
submit proof &
sanction it
application is


80% employees says that to make the application submit proof & it
sanction & rest of 20% employees say that only application is required
Ques 6: Briefly explain procedure for availing the special welfare facility ?

Make an
submit proof &
sanction it

Length process



90% employees says that they have to just apply, submit proof & take
approval of higher authority and only 10% employees says that the
procedure is lengthy .
Ques7: How much are you satisfied about procedure of availing routine
welfare facility?


Highly satisfied
Partly satisfied
40 Not satisfied


The 50% employees of the bank are highly satisfied with the procedure of
availing routine welfare facility while 40% employees are partly satisfied
& the remaining 10% of employees are satisfied.
Ques8: How much are you satisfied about procedure of availing specific
welfare facility?

40% Highly satisfied

Partly Satisfied
Not Satisfied


The 60% employees of the bank are satisfied with the procedure of
availing special welfare facility and remaining 40% employees are highly
Ques9: Does welfare facility provided by the organization plays as a
motivational factors?

40% Highly agree

Just agree
60% Do not agree


60% employees are agreed that the welfare benefits plays as a

motivational role. While 40% are highly agree on this issue.
Ques10: kindly suggest the methods of improving/ adding welfare


Adding same more

welfare facility
No suggession



20% employees say that to add some more welfare facility & 80%
employees is not giving any suggestions.

 All the routine welfare facilities are availed by all the employees in
Bank of India in different proportion.
 More than 70% employees are availing routine welfare facility an
routine basis.
 More than 30% employees are availing special welfare facility
according to the need arise
 The time required for sanctioning the special welfare facility is
maximum 2 week.
 The employee are not getting in storage facility for outdoor clothing
 The routine welfare facilities are availed by every one in the
organization & time required is also nominal.
 The process of availing special welfare facility is very lengthy &
hence it can be availed by simple process.
 The employees of insurance companies are highly satisfied with the
routine welfare facility, which they are availing on regular basis.
 The employees of insurance companies are satisfied as they are
getting special welfare facility with a simple process.

1) The employees should be provided with storage facility for external

2) Sanctioning times of special welfare facility should be reduced to 1

The study showed that employees think highly of WELFARE FACILITIES.

Hence, the implementing of welfare facilities was associated with higher job

satisfaction and higher productivity by the employees. Another variable that

is worth our attention is education, which had negative and significant

effects on both job satisfaction and productivity. The study is very much

helpful in identifying the satisfied and unsatisfied needs of the employees in

insurance industry.

BOOK REFFERRED Authors year Tital Cityof Publisher Pages


1 V.S.P. Rao 2005 Human New D Excel books 405 ,

Resource elhi 452

2 K.Ashwatha 1997 HR.&Pers New TataMc 446,

Ppa nnel Manag Delhi GrawHill 447
- o Publishing

3 C.R.Kothari 1985 Research New Delhi NewAge 1,8

Methodology International

4 P.P.ARYA 2002 R.M. New Delhi Deep&Deep 14





1) How many welfare facility are you availing a routine basis?

A) 1 to 5 B) 5 to 10 C) 10 & above

2) How many special welfare facility have you availed?

A) 1 to 5 B) Not Availed

3) How much time it will take sanctioning routine welfare facility?

A) 1 to 2 week B) 2 to 3 week C) 1 to 2 month

4) How much time it will take sanctioning routine welfare facility?

A) 1 to 2 week B) 3 week C) 1 to 2 week

5) Briefly explain the procedure of availing routine welfare facility in

A) Making an application submit proof & immediate sanctioning
B) Only application is required

6) Briefly explain procedure for availing the special welfare facility?

A) Make an application, submit proof of sanction it.
B) Lengthy process
C) Not availed
7) How much are satisfied about procedure of availing routine welfare
A) Highly satisfied

B) Partly satisfied

C) Satisfied

8) How much are you satisfied about procedure of availing special welfare

A) Highly satisfied

B) Satisfied

C) Not satisfied

9) Does welfare facility by the organization plays as a motivational


A) Highly agree

B) Agree

C) Just agree

10) Kindly suggest the method of improving/ adding welfare facility?

A) No suggestion

B) Adding some more welfare facility.

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