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CONTENTS
Sr. CONTENTS Page

No. No.
1. INTRODUCTION TO LIFE INSURANCE 1
AGENTS
a) Meaning of Insurance Agent 1
b) Life Insurance Business 1
2. RESEARCH METHODOLOGY
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a) Objective Of Study 9
b) Research Methodology 9
c) Sources of Study 9
d) Limitations of study 11
3. COMPANYS PROFILE 12
4. DATA ANALYSIS & INTERPRETATION 42
5. FINDINGS & SUGGESTIONS 48
CONCLUSION
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BIBLIOGRAPHY
INTRODUCTION TO INSURANCE AGENTS
INSURANCE is such a method which provides security and protection against financial loss
upto some limit. It is a means of shifting the risks to insurer in consideration of a nominal cost
called premium.
a) INSURANCE AGENT means an insurance agent licensed under section 42 who recieves
or agrees to receive paymet by way of commission or other remuneration in consideration of his
soliciting or procuring insurance business including business relating to the continuance, renewal
or revival of policies.
The insurance sector is of considerable importance to every developing economy; it inculcates

the savings habit, which in turn generates long-term invest able funds for infrastructure building.
The nature of insurance business ensures constant inflow of funds - the payout is staggered and
contingency related thereby making it readily available for investment on infrastructure
building. An insurance policy protects the buyer at some cost against financial loss arising from a
specified a risk. Different situation and different people require different mix of risk cost
combinations. Insurance company thereby offers schemes of different kinds which not only
protect the person from any risk but also invest their money in the market, and thus ensure the
return on their investment cum insurance plans . These Plans are called ULIP or United Liked
Insurance Plans. For selling and convincing their various plans to their customers the insurance
firms make use of varied distribution channel.
b) Life Insurance Business: Life Insurance Business means the business of effecting
contracts of insurance upon human life, including any contract whereby the payment of money is
assured on death (except, death by accident only) or the happening of any contingency dependent
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on human life, and any contract which is subject to payment of premiums for a term dependent
on human life and shall be deemed to include-
1. The granting of disability and double or triple indemnity accident benefits, if so provided
in the contract of insurance.
2. The granting of annuities upon human life, and
3. The granting of superannuation allowances and annuities payable out of any fund
applicable solely to the relief and maintenance of persons engaged or who have been
engaged in any particular profession, trade or employment or of the dependents of such
persons.
c) Distribution Channel In Life Insurance:
Till date, only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in India is also
well below the international level. To tap the rest of the 80% of the insurable population in India,
the insurance organization needs a huge and varied Distribution channel to sell the varied plans
to the people . Distribution accounts for the largest element in insurers costs and impact the
profitability. Distribution capabilities of any firm effects the product design in insurance due to
the huge feed back from the customer.
Distribution channel strength have a direct impact on the organizations image . Highly
professional and integrated distribution channel of any firm increases the credibility and
reliability of the product of the firm in the market.
Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to
the private sector and snapping up the new innovative products on offer. Now the insurance
policies are not only the life saving and tax saving device but it has more to offer to the customer
in the form of Investment in the market. Now the policies are the combinations of the Life
Insurance and the Investment and there by these are known as Unit Linked Insurance Plans or in
short ULIPS. Now the agents are not only the Life Insuracne agents , they are the professional
advisor also. Now they are called the Financial Advisors who advice their customers to invest
their money in the appropriate policy which suits the needs of their customers. For selling and
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providing highly technical knowledge about the product the insurance industry has to make use
of its highly dedicated and knowledgeable distribution channel.
Earlier the agents were the only and the primary interface of insuring lives of the people and
these agents were the sole distribution channel of the Life Insurance Organization .
But with the liberalizing Indian community and the advent of the foreign companys in India;
brought the alternative channel of distribution. With the help of these alternative channels these
private firms has penetrated the market to the great extent. Innovative products, smart marketing,
and aggressive distribution have enabled fledgling private insurance companies to sign up Indian
customers faster than anyone expected. Due to its varied distribution channel the private
insurance player in 2007-2008 these organizations has taken over the 25%(approx) of the
market share in India and the LIC had came down to 75% from its market share of 87.04 % in
2006-2007.
There are three main channel of distribution. Which are :

1. Tied Channel (Financial Advisors and Sales Managers)
2. Corporate Agents ; &
3. Bancassurance
Out of its these distribution channel the private insurer have capture most of the market with its
Tied channel. This is also can be proved from the figures of the number of advisors employed
till date in Jalandhar has gone up to 14500 plus, who on an average of 12 policies a year sells
more than 174000 policies in a one year; in Jalandhar only. The number of Financial Advisors
recruited by these Private life insurer in different year are given in the following table.
Table 1: Number of Licenses granted to the advisors :
2007-2008 2006-2007 2005-2006 2004-2005 2003-2004

ALLIANZ BAJAJ . 80217 32680 36742 14202 4347
TATA AIG LIFE 19348 17779 33076 15559 7038
AMP SANMAR
Life 14293 5013 6424 1608 484
BIRLA SUN LIFE 11913 5475 13207 6314 2009
AVIVA LIFE 9204 3819 5044 1870
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HDFC life 16717 10356 19209 11312 3214
ICICI PRU 44489 29930 46818 23953 10861
ING VYSYA 14043 7720 11832 3,914 1135
LIC 472076 353773 62758037 479186 442680
MAX NEW YORK 12549 6998 10308 5770 2620
METLIFE INDIA 8343 3374 3196 1463 417
KOTAK
MAHINDRA 7374 2976 6736 3785 1348
SBI LIFE 5112 2175 4281 2224 719
SAHARA INDIA
LIFE 81 0 0 0 0
SHRIRAM LIFE 5937 0 0 0 0
Sub Total 721696 482068 62954910 571160 476872
Due to their huge work force of Financial Advisors the ICICI PRU have claimed 27.7% , Bajaj
Allianz have 22.0%, SBI have 8.8 % , HDFC life have claimed over 8.0% of the retail insurance
in India . The market share in the private retail market in life insurance in India as on April 2007
is shown in the following pie chart.
The market share private insurance organization as on April 2008 was :

Fig 1.1 Source: IRDA , Weighted new business premiums for individual business.
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d) International Recognition Of Agents:
1)About MDRT:
The Million Dollar Round Table, abbreviated MDRT is a trade association formed in 1927 to
help insurance salespeople and financial advisors improve their business practices and increase
sales. MDRT is the esteemed pool of advisors who had achieved the yearly goal of collecting the
premium of about 27,14,400 in Indian Rupees OR earned the commission of about 6,78,000 at
the end of each financial year. The amount may vary from country to country in their respective
currency. MDRT membership is a coveted career milestone. It indicates achievement and brings
deserved recognition for the individual. For many, MDRT opens the door to a new world of
knowledge, motivation and professionalism.
2) About COT:
Court of the Table members distinguish themselves within the industry through their superior
performance by producing at a level three times that of MDRT membership requirements.
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Achieving membership in MDRTs Court of the Table is a career milestone attained only by
those who have demonstrated exceptional professional knowledge, client service and ethical
conduct. Each year, more than 3,500 MDRT members qualify for the Court of the Table. For
becoming the esteemed member of this club the agent have to collect the premium of 81,43,200
in Indian Rupees OR have to earn the commission of Rs 20,35,800 at the end of financial year.
This amount can differ from county to country in their respective currency.
3) About TOT:
Top Of the Table is last and the highest that any advisor can go. These agents are the actual super
achievers in the field of the insurance. An agent qualify for the TOT when he/she collect the
premium of about Rs 162,86,400 OR have earned the commission of Rs 40,71,600 which is
almost six times of what the MDRT collect or earn. This amount can be different from country to
country in their respective currency.
MDRT commission requirement of INDIA and some of the neighboring countries are given in
the table below. The amount given with in the table Is in the currency of the respective country.
Conversion factors have no relationship to currency exchange rates and are used only to
standardize MDRT processing.
TABLE 2: 2008 MDRT COMMISSION REQUIREMENTS
MDRT Qualifying
Membership Court of the Table Top of the Table Commission
COUNTRY Commission Commission Commission Conversion
India 678,600 2,035,800 4,071,600 8.2958
China 149,400 448,200 896,400 1.8264
Pakistan 913,600 2,740,800 5,481,600 11.1687
Bangladesh 993,100 2,979,300 5,958,600 12.1405
Sri Lanka 1,486,600 4,459,800 8,919,600 18.1735
Nepal 777,500 2,332,500 4,665,000 9.5048
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Following are monthly goals in Indian rupees to keep you on track for the 2008 Million Dollar
Round Table, Court of the Table and Top of the Table.
TABLE 3: Month wise Commission for MDRT, COT and TOT
Month MDRT MDRT COT COT TOT TOT

commission premium commission premium commission premium
January 56,550 226,200 169,650 678,600 339,300 1,357,200
February 113,100 452,400 339,300 1,357,200 678,600 2,714,400
March 169,650 678,600 508,950 2,035,800 1,017,900 4,071,600
April 226,200 904,800 678,600 2,714,400 1,357,200 5,228,800

6,786,000
May 282,750 1,131,000 848,250 3,393,000 1,696,500
June 339,300 1,357,200 1,017,900 4,071,600 2,035,800 8,143,200
July 395,850 1,583,400 1,187,550 4,750,200 2,375,100 9,500,400
August 452,400 1,809,600 1,357,200 5,428,800 2,714,400 10,857,600
September 508,950 2,035,800 1,526,850 6,107,400 3,053,700 12,214,800
October 565,500 2,262,000 1,696,500 6,786,000 3,393,000 13,572,000
November 622,050 2,488,200 1,866,150 7,464,600 3,732,300 14,929,200
December 678,600 2,714,400 2,035,800 8,143,200 4,071,600 16,286,400
e) Training & Examination Of The Fi nancial Advisors:
According to the rule and regulation given by IRDA an FA has to go through the theoretical
training for about minimum of 100 hrs to be completed in all most time period of 18 to 19 days.
During the training they are provide about the knowledge about the market and the basics of the
insurance .There is a further focus on soft skills such as communication, managing long-term
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relationships and selling skills, which are very relevant in a service-driven industry like life
insurance. Just before the two days before the examination the probable are given the revision
session through the crash course of Two days. Revision session ensure that the candidates
thoroughly understand the course contents and are well prepared for the licensing examination.
This licencing examination is called Pre-Recruitment Examination for Life Insurance Agents.
The Insurance Organization at Jalandhar goes for In-house training or Out source their training.
For Example the LIC, METLIFE, KOTAK MAHINDRA etc goes for in house training and
recruit almost 750 FAs in a year, but the private insurance organization like ICICI, BIRLA
SUNLIFE,MAX NEWYORK etc. outsource the training to the institutes recognized by the
IRDA and affiliated to the Insurance Institutes of India (I.I.I). At Jalandhar the training is
outsourced to the Dream Weaver institute,V2A institute, Federal institutes . The in house
training about the product is also provided to these agents in the various agency of these
Insurance organizations. Apart from the this recommended training of 100 hrs the Financial
Advisors are also given the product training to the FAS by these insurance organization at there
own agencies.
f) Eligibility For Examination:
Any Financial Advisor can be a part timer or a full timer agent. Minimum qualification set by
IRDA for being an FA in Urban and Semi Urban area must be that he/she must be of minimum
18 year of age and must posses the minimum qualification of Plus Two standard. And for the
person belonging to the rural area he/she must have attain the minimum age of 18 year plus he/
she must have the minimum qualification of 10th standard. But most of the private Insurance
Organization has their own preference of appointing FAs. For instant; METLIFE prefer the
person who is married and of age 25 and above, because the person at this age is more
responsible to his profession.
g) Motivational Factors for a Life Insurance Agent:
Life Insurance agents have to work without assistant and have to set targets and time for their
own work. So it is needed to motivate them so which can help them in keep in working for the
common cause of the company. All the life insurance companies at Jalandhar have their own
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method of motivating their Agents and during the whole process they help in building the career
for the Agents. At these insurance organisation the Financial Advisors are motivated by various
remuneration and paid bonuses for earning the specific premium for the organization. Financial
Advisors are constantly recognized and rewarded for their performance. Numerous competitions
throughout the year promote healthy competition amongst agents and recognition for their
efforts..
Depending on the level of business the agent achieves in a year, he or she is rewarded by the pre
set bonuses by the company.
RESEARCH METHODOLOGY
a) Objective of study
1) To know the penetration of the various Life Insurance Organization in Jalandhar.
2) To know the extra benefits that any Financial Advisor or Agent is provided in the
various insurance Organization.
3) To know the career opportunity for the advisors in there organization.
4) To know the Scope for Financial Advisors in the present scenario of competition in the
Jalandhar.
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5) To suggest the method to increase the strength of Financial Advisors in MetLife jalandhar
b) Research Methedology
In Jalandhar the number of policies sold in different years has increased with the increase
in the number of the Financial Advisors. The organization having the largest number of work
force of financial advisors sells larger number of policies in a year.
The present study is the attempt to analyze the benefits and the career opportunity of the
Insurance agents in Jalandhar and what is the effect of strength of Financial Advisors on the
business of any Insurance Organization operating in Jalandhar.
c) Sources of study
The study is based on the Secondary data collected from the various organizations in
Jalandhar. The data is confidential in nature and is not published in any of the website and in any
of the news papers. The data thus here within is collected by using various links in the other
organizations in Jalandhar. For measuring the effect of Financial Advisors on the policies figures
I have made use of the technique of Correlation. The number of policies sold and the total
numbers of advisor from year 2001 to 2007 is collected. Correlation among the number of agents
and the number of policies sold is calculated by using the formula of Karl Pearsons coffecient of
correlation. The positive value of the correlation indicates that the number of agents will affect
the number of policies sold in a year and thus the company will have greater penetration in the
market. The correlation is calculated for only those organization whose working period in
Jalandhar is at least of two years.
But these policies sold are from all channel of distribution, thus we can not say that the data is
fully correlated. Hence for measuring the significance of this correlation value is tested by using
t-Test. Hence the Null Hypothesis is set that the correlation coefficient of the population is zero.
The value of the t is compared with the table value at 5% of significance. If the calculated value
is less then the table value we will accept the null hypothesis of uncorrelated population.
Following Formula are being used for the calculations:
1) Correlation ( r )= (x y)/N Sx Sy
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Where; Sx =Standard Deviation of series X
Sy = Standard Deviation of series Y
x = (X - mean value of series X)
Y = (Y - mean value of series Y)
N = Numbers of pairs of Observations
r = Correlation Coefficient.
______
2) t-Test = Ryx (n-2)

(1- Ryx)
Where; Ryx = Coefficient of the correlation between X and Y
(n-2) = Degree of Freedom.
d) Limitations of study
1) The Data about the financial Advisors and number of policies in a year for various
organization is not available in the print or any other media. It is taken from the various
sources in the organization in the insurance organization at Jalandhar.
2) Most of the companies have just started their business in Jalandhar, so the data collected was
of only few months theirfor their correlation can not be calculated.
3) Information about the recruitment and the benefits of some of the insurance organization was
not available to the full extent.
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4) The information about the benefits and career opportunity has to be gathered by personal
interaction by the officials of Insurance Organization.
5) The general public is unaware about the MetLife in the region
COMPANIES PROFILE
MetLife PVT. LTD. : For 137 years, MetLife has been insuring the lives of the people.
MetLifes success is based on our long history of social responsibility, strong leadership, sound
investments, and innovative products and services. The origins of Metropolitan Life Insurance
Company (MetLife) go back to 1863, when a group of New York City businessmen raised
$100,000 to found the National Union Life and Limb Insurance Company. MetLife was the
company who insured the lives of million of soldiers of America and UK in Second World War.
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It was the only company to settle all the claims of insured person who lost their lives during
September 11 attack on twin Tower in America.
In 1909, MetLife Vice President Haley Fiske announced that "insurance, not merely as a business
proposition, but as a social program" would be the future policy of the company. The vision of
MetLife is, To provide financial freedom for every one.
METLIFE covers millions of the people worldwide and pays out billions of dollars to policy
holders. MetLife is one of the fortune five hundred companys and as on 2007 METLIFE is at
37th position with revenue of 53,275.0$ million and profit of $ 6,293.0 million. As a testament
to its position of the leadership, MetLife insures 88 companies of the FORTUNE 100
COMAPIES. It has a large global market in more than 12 countries. In 2006, MetLife appointed
""C. Robert (Rob) Henrikson"" chairman of the board of directors, president and ""chief
executive officer"" of MetLife, Inc. Henrikson was appointed ""CEO"" on March 1, 2006 and
chairman of the board on April 25, 2006.
MetLife is undisputed leader of the insurance industry, insuring every fifth man, woman, and
child in the United States and Canada. On the way it supported the country and the community in
many ways. For example,
In 1931 MetLife provided the outside capital to build Rockefeller Center.

lent money to construct the Empire State Building in 1929, and virtually saved
this project from bankruptcy.
During World War II, the company placed more than 51 percent of its total assets
in war bonds, and was the largest single private contributor to the Allied cause.
The company served its customers, communities and employees during the
difficult time after the 9/11 attacks.
a) Major Achievements:
In 1980, The company completes the largest single building purchase (Pan Am
Building) in history.
In 1998, The board of directors authorizes demutualization.
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In 2000, Metropolitan Life Insurance Company (MetLife) launches the seventh
largest IPO ever held in the United States
In 2001, MetLife was the first insurance company to establish a financial holding
company with a nationally chartered bank. Leveraging its unparalleled
distribution channels, MetLife entered the retail-banking arena with the launch of
MetLife Bank.
In 2005, Working Mother magazine honored MetLife by naming the company one
of the "100 Best Companies for Working Mothers," for the seventh consecutive
year.
In early 2006, MetLife was also named to the National Association for Female
Executives annual list of Top 30 Companies for Executive Women.
b) MET LIFE INDIA:
It got registered on August 6th ,2001 with IRDA. In India, MetLife India was incorporated on
August 6th 2001, and aims to differentiate itself through customized need based selling, simple
and innovative products, and technology-backed service experience, to tread its path to build
financial freedom for everyone. MetLife India has its head office at Basavanagudi, Banglore and
is headed by M.D Mr. Rajesh Relan. MetLife in India has its presence in 72 major cities and
have 90 offices in these cities. MetLife India has the strong work force of 25000 Financial
Advisors in India and is set to reach up to 30,000 by the end of this year. Beside this MetLife
India has the Bancassurance distribution channel and has tie-ups with Axis bank (UTI Bank),
Jammu & Kashmir Bank, Dhanalaxmi Bank and Karnataka Bank, Bank of Punjab to offer its
range products to the customers of these banks. In addition to these institutions the company has
partners which are corporate agents and brokers like Karvy Consultant Ltd, Mini Muthhoottu
Financiaries Ltd , Hexagon Indurance Servicies Pvt Ltd, Geogit Commodities Pvt Ltd and MLM
Consulting Pvt. Ltd. are few of the corporate partner in India.
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c) Services:
The Company serves group benefit products and Individual benefit products. International
segment serves these products to groups and individual in the Asia/Pacific region, Europe, and
Latin America. The company's reinsurance business operates as Reinsurance Group of America,
but serves customers around the world. In India out of total lives covered by metlife , 80% of
lives are covered under group policies that provide 10% of the premium income. Metlife India
covers 40,000 employees of IBM under a group cover and the Bussiness giants like SATYAM,
ORACLE , BANK OF AMERICA,PANTALOONS,GAS AUTHORITY OF INDIA LTD,
CENTURION BANK OF PUNJAB,J&K BANK,HCL TECHNOLOGIES are also some of the
clients of group policies.
d) Products Offered by MetLife In India :

Met life has a great variety of products, ranging from Life insurance, Long Term Care Insurance
and retirement plans. These product are both traditional and ULIP plans which offers customer
both; life insurance and return on there investment. The List of these product is given below:
Table 6 : List of Product as on 08-08-2007
Financial
Year Name of Insurer Name of the Product
Met Life India Insurance
2001-02 Co. Pvt. Ltd. Met 100 (Non-Par)
2001-02 Co. Pvt. Ltd. Met Shanti
2001-02 Co. Pvt. Ltd. Met Sukh
2005-06 Co. Pvt. Ltd. Met Sukh
Met Life India Insurance Single Pay - Mortgage Protection Plan
2002-03 Co. Pvt. Ltd. - Non Participating
2002-03 Co. Pvt. Ltd. Met Junior
2002-03 Co. Pvt. Ltd. Met Junior MB
2002-03 Co. Pvt. Ltd. Met Mortgage Protector
2002-03 Co. Pvt. Ltd. Met Platinum - Par Endowment
2002-03 Met Life India Insurance Met Gold - Par Endowment
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Co. Pvt. Ltd.
2002-03 Co. Pvt. Ltd. Met Junior - Par Endowment
2002-03 Co. Pvt. Ltd. Met 100 Gold - Par WL
2002-03 Co. Pvt. Ltd. Met 100 Platinum - Par WL
2002-03 Co. Pvt. Ltd. Met Group YRT
2003-04 Co. Pvt. Ltd. Met Group Life
2002-03 Co. Pvt. Ltd. Met Gold - Non Par Endowment
2002-03 Co. Pvt. Ltd. Met Platinum - Non Par Endowment
2003-04 Co. Pvt. Ltd. Met Bhavishya
2003-04 Co. Pvt. Ltd. Met Suvidha (Par)
2003-04 Co. Pvt. Ltd. Met Suvidha (Non-Par)
2003-04 Co. Pvt. Ltd. Met Pension (Par)
2003-04 Co. Pvt. Ltd. Met Suraksha
2003-04 Co. Pvt. Ltd. Met Suraksha TROP
2004-05 Co. Pvt. Ltd. Met Saral
2004-05 Co. Pvt. Ltd. Met Gratuity
2004-05 Co. Pvt. Ltd. Met Ultimate
2004-05 Co. Pvt. Ltd. Met Family Income Plan
2004-05 Co. Pvt. Ltd. Met Smart
2004-05 Co. Pvt. Ltd. Met Advantage
2005-06 Co. Pvt. Ltd. Met Credit Life
2006-07 Co. Pvt. Ltd. Non Par - Immediate Annuity
2006-07 Co. Pvt. Ltd. Met Smart Plus
2006-07 Co. Pvt. Ltd. Met Smart Premier
2006-07 Co. Pvt. Ltd. Met Advantage Plus
2006-07 Co. Pvt. Ltd. Met Smart Plus - Single Pay
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2006-07 Co. Pvt. Ltd. Met Smart Premier - Single Pay
2006-07 Co. Pvt. Ltd. Met Ultimate Plus
2006-07 Co. Pvt. Ltd. Met Ultimate Premier
2007-08 Co. Pvt. Ltd. Met Easy
e) Future plans:
1) MetLife India has a goal of 5 million customers by 2010, and has aggressive growth plans of
100 per cent year-on-year growth for the next 2-3 years.
2) The company plans to expand its agency and office networks to enable the growth in India.
3) It also plans to expand by setting up bases in not only metropolitan cities, but also Class B and
Class C cities and parts of rural India.
4) MetLife International plans to increase its stake in the Indian subsidiary MetLife India, by
infusing capital to the tune of US$ 100 million over the next 5 years, as it sees huge potential for
growth in India. It also plans to capture a market share of 5 per cent in the Indian insurance
sector.
f) History of MET LIFE Financial Advisors :
In 1868, the company decided to focus on the life insurance business. A new company was
chartered to sell "ordinary" insurance to the middle class. The founders chose the name because
they had been most successful in New York City, or the "Metropolitan" District.
In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial"
or "workingmen's" insurance programs were widely successful. MetLife imported English agents
to train the agency force in America . The MetLife agent became an important person in the lives
of these striving families. Manuals instructed agents to call at a home at the same time each week
to ensure familiarity and contact. In the process of collecting premiums, insurance agents
listened to the problems, concerns, and hopes of their clients. So successful was this approach
that by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a
leadership position we continue to hold today in North America.
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MetLifes Financial advisors build financial freedom for thousands of individuals across the
country, allowing them to relax, enjoy. They have the desire to help others, have a genuine sense
of caring for their customers and above all have an immense passion for learning and exceeding.
In India MetLife have the strong work force of 25000 financial Advisors. MetLife India started if
operation at the end of December 2006 and in this short period of 8 months , now it has the force
of about 350 licensed Financial Advisors and which are increasing day by day. To start a career
as a Financial Advisor with the MetLife India, it is not necessary to have a financial background.
Rather it is necessary to possess the desire to help others, project a genuine sense of caring, and
have a passion for learning. Success is based on the ability to be entrepreneurial and build and
nurture long-term relationships. MetLifes portfolio gives you the tools you need in todays
highly competitive marketplace to meet your clients changing financial needs.
g) Training At Met Life JALANDHAR:
METLIFE Jalandhar training program focuses on developing skills, knowledge and

competencies through a high-quality curriculum, and allows you to gain the experience you need
to succeed in an insurance career. The program is divided into several components
IRDA exam and licencing.

Classroom training on knowledge and skills.
In-agency on-the-job training.
Career Skill Training (CST) is a course that trains the advisor to write the exam to obtain the
IRDA license, while simultaneously integrating the additional skills that differentiate a MetLife
Advisor from the others in the industry. The pre recruitment training which provide the basic
knowledge of insurance to the candidates are given at Dream Weaver , Model Town
,Jalandhar .FAS will also learn about the activities associated with this career, including skills in
prospecting, target marketing, need-based selling and customer service Once FAS have finished
their initial training FAS are provided all type of support and resources to help them to achieve
the path toward greater professional achievement and success. Classes, self-study courses, and
the attainment of professional designations will always be an important part of your ongoing
training. Product and sales training Is provided by strong and highly experienced trainer at the
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MetLife branch in Jalandhar. During the pitching and targeting the sales the Financial Advisors
are provided help and support by the Sales Managers of his area.
h) Career Path Of Financial Advisors at METLIFE:
As a MetLife Advisor in an insurance career, an FA have the choice of building his/her own
practice for advising his customers. The achivers are given absorbed at the post of Sales
Manager in the company which help him in developing his managerial skills to manage his own
team of advisors. Therefore, he/she decide on what career path he/she want to follow, and then
put in the necessary efforts to achieve your goals.
i) Benefits Of being METLIFES Financial Advisor:
1. Rewards And Recognition:

The unique characteristic of this career is that there is no limit to earnings. FAS earnings are
determined by his own efforts and results. For an example, if he/she sell 50 policies and generate
a business of Rs 5 lakh, he/she will earn Rs 1.5 lakh at a commission rate of 30% on an average .
Or, if generates a business of Rs 30 lakh, he/she will earn Rs 6 lakhs, at 30% on an average
commission rates.
As at METLIFE the new recruited FAS who achieve the set standards earliest are rewarded by
the Trigger Reward, Silver Eagle and Golden Eagle respectively. And are rewarded by Extra
30.000 to 40,000.Further they can also become a member of various clubs such as the Debut
Star Club, Aces Club, SOS (Seed of Strength) etc. Each of these clubs have specific
performance criteria for qualification and members of these clubs are entitled to attend Leaders
and President conference held at exotic international and domestic locations each year. Advisors
can also qualify for the renowned MDRT (Million Dollar Round Table), COT (Court of The
Table) and TOT (Top of the Table) exclusive international insurance advisors club. MetLife
Jalandhar has 1 MDRT who is further set his target to achieve the status of COT and TOT.
MetLife Financial Advisor can also Play the role of End To End Vendor (E2E) and can help in
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recruiting the financial advisor. For this effort he is paid 2500 Rs for every successful
recruitment.
2. Professional Recognition :
To keep Financial Advisors motivation at a high level, MetLife have a challenging and exciting
Rewards & Recognition program throughout the year, which rewards FAS over and above his
commissions. Contests, conferences and benefits at various levels enable him to realize his true
potential, and inspire him to scale greater heights. Each year, sales leaders who meet challenging
company standards receive impressive awards and invitations to MetLifes prestigious
conferences, within India and abroad. At these meetings, achievers receive recognition for their
superior performance in the presence of their families and peers.
3.Support:
Work Space Support- MetLife provide telephones and computers to help FA set
appointments, conduct your business and analyze your performance.
Marketing and sales Support- To assist with sales procedures, MetLife have several
tools to aid smooth implementation.
Managerial Guidance- With the guidance and support of MetLifes highly experienced
managers, FA find several opportunities to build and service your customer base.
The Reward and Recognition Stages can be shown as :
COT
TOT
MDRT
21
PRESIDENT CONFERENCE
LEADERS CONFERENCE
GOLDEN EAGLE AWARD
SILVER EAGLE AWARD
RAPID FIRE CHAMP
RAPID FIRE
TRIGGER REWARD
FIGURE 2.1
TABLE 7: Benefits of Being METLIFES Financial Advisor:
Commission 30 % to 40 %
Exceptional Performer are absorb at the

Career regular employee at the post of Sales
Manager in the organization
Are held weekly, monthly and in festive

season. Contest are also held at the policy
Contest level. And the winner are rewarded with
bags , handy cams , gold coin and vacation
to the exotic places.
Are Paid 30,000 to 40,000 for achieving
early targets after licensing.
Extra Benefits
Are paid Rs 2500 for recruiting Financial
Advisor.
22
Training Training module is provided free of cost .
Financial Advisor are given office space
and phone and computer for use.
Work support
Team of agency manager is always ready to
help and support the financial advisors.
TABLE 8: REQUISITE OF FA:
He/ She can be any person citizen of India

Probable Agent Profile having his/her business, shop or
unemployed. He/She must be able to
devote the time to the customers 24X 7 X
365 Hrs.
Minimum Qualification Plus Two OR any of the Higher
Qualification for the candidate from urban
areas.
Class 10th certificate if he/she belong to
the Rural Area.
Date of Birth Proof 10th standard certificates
ID and Residence Proof Copy of Ration card /License/Passport for
urban area candidate.
Proof from the serpanch of the village in
written , for the candidate of rural area.
Passport size Photographs 5

Fees Rs 700
OTHER LEADING INSURANCE COMPANIES
23
a) LIFE INSURANCE CORPORATION (LIC):
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. Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the Corporate office. LICs Wide Area Network covers 100
divisional offices and connects all the branches through a Metro Area Network. LIC has tied up
with some Banks and Service providers to offer on-line premium collection facility in selected
cities. LICs ECS and ATM premium payment facility is an addition to customer convenience.
LIC continue to dominate the insurance sector even in the Liberalized Indian Economy .The
market share of the LIC is about 75%.
In Jalandhar LIC is has the biggest network of financial Advisors among all the Insurance
Players in the city . LIC Jalandhar has the mammoth force of 6600 Financial Advisors and had
recruited about 750 Financial Advisors in 2006-2007.
1. Training and Career:
LIC strictly follows the rule and regulations framed by the IRDA for the recrutitment and the
training of the Agents. In Jalandhar LIC have ther own training facility at there own agency . LIC
Jalandhar have there own training staff who provide the basic and the product training to the
Agents . A 17-18 day training schedule covers the mandatory IRDA training requirements and
LIC product-training module. The agents get full support from their Development Officers and
as a career LIC Jalandhar get absorbed in the management if they perform exceptionally well.
2. Rewards And Recognition:

LIC Jalandhar agents are constantly recognized and rewarded for their performance. LIC agent
get s the commission about 14% to 40% depending upon the policy .Numerous competitions all
year round promote healthy competition amongst agents and recognition for their efforts.
24
Depending on the level of business the agent achieves in a year, he or she can become a member
of various clubs such as the Corporate Club, the Chairmans club, etc. Each of these clubs
have specific performance criteria for qualification and members of these clubs are entitled to
attend seminars held at exotic international and domestic locations each year. Advisors can also
qualify for the renowned MDRT (Million Dollar Round Table), an exclusive international
insurance advisors club.
TABLE 09: Requirement and Requisites of becoming the LIC Financial Advisors/Agents:

Probable Agent Profile having his/her business, shop or unemployed

Qualification .
ID and Residence Proof Copy of Ration card /License/Passport
Fees Rs 350
b) ICICI Prudential Life Insurance :
ICICI Prudential Life Insurance Company Limited, a company incorporated under the
Companies Act, 1956 and licensed under and in terms of the Insurance Act, 1938 and the
Insurance Regulatory and Development Authority Act, 1999 to carry out the business of life
insurance. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs.
20.60 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In
Jalandhar ICICI PRDEMTIAL started in 2001.
25
1. Training And Career :
ICICI PRUDENTIALS financial advisors are given basic training of the Insurance and the
market in the DREAM WEAVER Institute, Model Town Jalandhar. After the basic training of
100 hrs, they are given Product training in the various branches of the ICICI Jalandhar. The
advisors are provided the course books on recruitment. The advisors who perform exceptionally
well are absorbed in the ICICI as the regular employee.
2. Financial Advisors in ICICI:

ICICI Prudential has one of the largest distribution networks amongst private life insurers in
India. As of March 31, 2007 the company has over 580 offices across the country and
over 234,000 advisors. Out of these huge workforce of advisors; ICICI have the strength of
almost 2500 Financial Advisors in Jalandhar alone. This makes it the second largest player of
Insurance sector in Jalandhar after LIC and gives it the edge over other private life insurance
players in Jalandhar. ICICI Jalandhar due to its huge large force of advisors earn the highest
premium than any other branches of ICICI in India, this is the fact that ICICI Jalandhar alone has
got 10 MDRT members.
In Jalandhar the FAs of ICICI enjoys all the benefits that there counterparts does in the other part
of the country. The financial Advisors are paid almost the commission of 20% to 40% for various
endowment and investment plans. Except of this healthy commission they are also get extra
remuneration depending upon their achievements of targets predetermined by the company.
ICICI also help FAS by providing them the financial help to cover their expenses of petrol and
mobile bills. Beside this the ICICI motivates there financial Advisors by holding various contest
for there Financial Advisors. These contests are launched on after every third month on the
festive seasons. For Example ICICI in Jalandhar has launched FREEDOM FESTIVAL to
celebrate the 60Th Independence day of the country . In this contest on achieving the various
targets the FAS are given various gifts and prizes depending upon which slab did the premium
collected by the Financial Advisors falls. ICICI PRUDENTIAL financial advisors are also paid
1600 Rs for the recruitment of an additional Advisor.
Table 10 :Benefits of Being ICICI PRUDENTIAL Financial Advisor :
26
Commission 18% to 40 %

Career
regular employee in the organization
Are held weekly, monthly and in festive

Contest season. And the winner are given bags , handy
cams and vacation to the exotic places.
Are paid for expenses for petrol, mobile. Are

Extra Benefits
paid Rs 1600 for recruitment of FA.
Training Training module is provided free of cost .

Work support
Table11 :Requirement and Requisites of becoming the ICICI PRUDENTIAL Financial

Advisors/Agents:

Probable Agent Profile having his/her business, shop or unemployed.
He/She must be able to devote the time to the
customers 24X7 Hrs.
Minimum Qualification Plus Two OR any of the Higher Qualification .

Fees Rs 1000
c) Bajaj Allianz General Insurance Company Limited:
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited
27
and Allianz AG of Germany. Allianz AG, is one of the world's largest insurance companies, and
Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world.. Bajaj Allianz
General Insurance received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business
including Health Insurance business in India. The. Bajaj Auto holds 74% and the remaining 26%
is held by Allianz, AG, Germany. Bajaj Allianz has a pan-India presence of office network in
over 500 towns of the country and is aided with a strong and trained Agency network of over
90000 Insurance Consultants with 511 MRDT qualifiers in the calendar year 2006-2007.
1. Financial Advisors of BajajAllianz Life Insurance :

Bajaj Allianz started its operation in Jalandhar in mid of 2005 and till date they had made 1100
Financial Advisors in Jalandhar .Which makes it the third largest organization in terms of the
strength of Financial Advisors at Jalandhar. Bajaj Allianz recruit the Advisors from every section
of the society.
The recruitment procedure is according the guide lines of the IRDA, and the Financial Advisors
are given the commission of about 20% to 40% on its different plans and policies. Besides that
they enjoy the Membership and reorganization of the various elite clubs depending upon their
performance. Bajaj Allianz outsource its training of financial advisors to the Dream Weaver and
provides the in house training of products to the advisors.
Table 12:Benefits of BAJAJ ALLIANZ Financial Advisor :
Commission 20% to 40%

Career
regular employee in the organization
Extra Benefits Are paid for expenses for petrol, mobile.

Work support
Contest Are held on monthly and half yearly basis .
28
Table13:Requirement and Requisites of becoming the BAJAJ ALLIANZ LIFE Financial
Advisors/Agents:

unemployed.
Qualification.
Fees Rs 850
d) Kotak Mahindra Old Mutual Life Insurance:
It is a 76:24 joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak
Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India
and has shown remarkable growth since its inception in 2001.
Old Mutual, a company with 160 years experience in life insurance, is an international financial
services group listed on the London Stock Exchange and included in the FTSE 100 list of
companies, with assets under management worth $ 400 Billion as on 30th June, 2006. For
customers, this joint venture translates into a company that combines international expertise with
the understanding of the local market. Kotak Mahindra strated its business at the beginning of
2006. Kotak life success fully recruited the force of 450 financial advisors in the first year of its
operations in Jalandhar.
1. Training of Financial Advisors and career:

Kotak Mahindra provides the training to its Financial Advisors in there own facility in Prime
Tower Jalandhar. It has the dedicate team of Sales manager and training staff who provide both
basic and product training to its advisors. Kotak Mahindra also carry own the special session to
29
train their advisors. All the study material is provided to the advisors by the Kotak Mahindra
Life. Any one who is dedicated and wants to excel in his life is welcomed at Kotak Mahindra.
Just like others insurance organization the Kotak Mahindras financial Advisors also aim for
becoming the part of MDRTS club. The advisors who have the minimum qualification and had
achieved the desired performance level are given chance to be the team of the regular employee
of Kotak Mahindra and can lead the team of 10 to 15 financial advisors. After getting the license
the financial advisors get 500 Rs for referring and successful recruitments of the new advisor.
Table 14:Benefits of Being KOTAK MAHINDRA LIFES Financial Advisor :
18% to 22% on ULIP and 40 % on

Commission
traditional plans
Achievers are given chance to be the part of

Career regular sales force in organization and lead
the team of 10 to 15 advisors.
Are held weekly, monthly . Certain rewards

like music systems , handy cams , vacations
Contest
are give ;depending upon the achievement
of various slabs .
Are paid for expenses for petrol, mobile.

Extra Benefits Are paid Rs 500 for referring and on
successful recruitment of FA.
In house training and study material is

Training
provided by the organization.
30
Table15:Requirement and Requisites of becoming the KOTAK MAHINDRA LIFES
Financial Advisors/Agents:

unemployed, private teacher etc.
He/She must be able to devote the time to
the customers 24X7 Hrs.
Qualification .
Fees Rs 1000
e) Reliance Life :
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in asset management and mutual
funds, stock broking, life and general insurance, proprietary investments, private equity and other
activities in financial services. Agents are called as advisors in RLI., Advisors occupy a
intermediary position and are remunerated appropriately according to the business generated.
Advisorship in RLI means tremendous growth and empowerment in terms of knowledge,
personality development and wealth. Training at Jalandhar is given at Dream Weaver. The
advisors are paid extra for their expences in mobile and petrol. The Advisor also gets chance to
take part in the contest in which they can win LCD TV , Lap Top and even trip to abroad.Some
benefits of being the advisor at Reliance Life Insurance are
Table 16: Benefits of Financial Advisor of Reliance Life :
31
Commission 18% to 30 %
Are held daily, weekly, monthly . Certain

Contest rewards like lap top , LCD TV, gold coin,
trip to abroad.
Extra Benefits Are paid for expenses for petrol, mobile.
In house training and study material is

Training
provided by the organization.
Table17: Requirement and Requisites of becoming the RELIANCE LIFE INSURANCES

Financial Advisors/Agents:

Qualification .
Passport size Photographs 9 PP
Fees DD of Rs 500 in Favour of Reliance Life
Insurance Co. Pvt .Ltd Payable at
Chennai.
f) Tata AIG Life Insurance :
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed
by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the
Tata Groups pre-eminent leadership position in India and AIGs global presence as the worlds
32
leading international insurance and financial services organization. The Tata Group holds 74 per
cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life
provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company
was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.
1. Advisors at TATA AIG Life Insurance:
Tata AIG just like other life insurance organization recruit the Advisors having varied profiles.
They are recruited and trained as per the guide lines of IRDA. TATA AIG have its own system of
selecting the right person for the Advisor. The probable person Is first counseled by the Agency
Manager and then he/she has to go through the aptitude test, which the probable has to give at
the spot. After than he /she is approved to be eligible for the training of the FA. TATA AIG
advisors are given 100hrs training at NIS Sparta Institute in Jalandhar and the necessary product
training is given at the agency it self.
2 Career path of Financial Advisor at TATA AIG Life Insurance:
Tata AIG agent enjoy the member ship off all the esteemed clubs depending upon the
achievement of the desired premium goals he achieve , beside the membership of these clubs
Tata AIG offer the unique career opportunity Programme to there advisors. It is the only
company in India to offer this Programme. This Programme depends upon networking. The
advisor can start hi own business without investing any money. Tata AIG provide them to
become the Business Associate and recruit the team of 20 advisors under him and the average
potential remuneration per month can be up to Rs 50,000.
From Business Associate level onward, he can hire as many agen the wants and get Rs 2000 per
agent recruited and Rs 1500 per month for training. After he had recruited the team of 20
advisor under him he can become the SR. Business Associate and can keep two business
associate under him. After this he can also become Manager Business Associate and can keep a
team of 2 SR. Business Associate under him.
The Career path of the Advisor can be shown as:
33
Senior Manager
Advisor Bussiness Bussiness Bussiness
Associate Associate Associate
Fig: 2.2
Table18:Benefits of Being TATA-AIG LIFES Financial Advisor :
18% to 22% on ULIP and 40 % on

Commission
traditional plans
Advisor can work as Business Associate

and can lead a team of 15-20 advisors ,and
Career
after that he can become SBA,MBA in
successive steps.
Are held monthly. Certain rewards like

bags ,music system and paid vacations are
Contest
given; depending upon the achievement of
various slabs .
Are given Rs 2000 for successful recruiting

Extra Benefits the advisor and are given Rs 1500 for
training of these advisors.
In house product training and study

Training
material is provided by the organization.
34
Table19:Requirement and Requisites of becoming the TATA-AIG LIFES Financial
Advisors/Agents:
He/ She can be any person; citizen of India


Qualification .

ID and Residence Proof Copy of Ration card /License/Passport/Pan
card

Fees DD of Rs 250, in favors of Tata-AIG Life
Insurance Co. Pvt. Ltd. Payable at
Jalandhar.
In Jalandhar the number of policies sold in different years has increased with the increase in the
number of the Financial Advisors. The organization having the largest number of work force of
financial advisors sells larger number of policies in a year.
So the hypothesis is that :
Number of policies sold by any Insurance organization in any a year is directly proportional to its
Number of its Financial Advisors in that year.
35
INSURANCE INDUSTRY IN INDIA
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 Indian natives were not being
insured by these companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives
were being treated as sub-standard lives and heavy extra premiums were being charged on them.
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.
The brief history of Insurance in India with some of its milestones in the life insurance
business in India are:
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business
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 nationalised. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
36
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
Among the emerging economies, India is one of the least insured countries, but the potential for
further growth is phenomenal. The demand for insurance is likely to increase with rising per
capital incomes, rising literacy rates and increase of the service sectors. After Korean and
Taiwanese insurance sectors were liberalized, the Korean market has grown 3 times faster than
GDP and Taiwan the rate of growth has been almost 4 times than that of its GDP. Further,
opening of the sector to private firms has and will further foster competition, innovation and
variety of products. It will also generate greater awareness on the need for buying insurance as a
service and not merely for tax exemption, which is currently done.
The insurance sector in India has come 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.
Insurance is one sector whose contribution to GDP is quite significant. Post independence, the
Indian Government nationalized the private life insurance companies with a view to raise funds
for the infrastructure developments, which lagged behind pathetically. Insurance is a Rs. 400
billion business in Indias and together with banking services adds about 7% to Indias gross
domestic product (GDP) gross premium collection is about 2 percent of GDP and growing
between 15 and 20 percent per annum. India also has highest number of life insurance policies in
force in the world.
Yet more than three fourth of Indias insurance population has no life insurance cover the
penetration of insurance is very low in India the following indices support this contention. While
37
per capita insurance premium in developed countries is very high, it is quite low in India per
capital insurance premium in India in 1999 was only $8 while it was $ 4800 for Japan, $ 1000
for Republic of Korea, $ 887 for Singapore, $ 823 for Hong Kong and $ 144 for Malaysia. The
insurance Premium as a Percentage ofGDP was 14% for Japan, 13% for south Africa, 12% for
Korea, 9% for UK and less than 2% in India in 1999 Similarly the insurance Premium as a
percentage of Gross Domestic saving (GDS) was 52% for U.K, 35% for other European and
American countries ,it was only 9% for India in 1999 The share of India in the World market in
terms of Gross insurance premium is again very 1000. For instance, While Japan has 31%,
European Union 25% ., South Africa 2.3%, Canada 1.7% share of the global insurance premium,
it is only 0.3% for India.
The insurance premium in India accounted for a mere 2% of GDP as against the world average
of 7.8% and G-7 average of 9.2% during 90s. The insurance premium as a percentage of savings
in India is 5.95% as compared to 52.5% in UK. The nationalised insurance companies could
barely unearth the vast potential of the Indian population since the policies lacked flexibility and
the Indian life insurance products are not linked to the contemporary investment avenues.
a) Global investors prefer Indian insurance markets:
Multinational insurers are keenly watching the transformation of the Indian insurance sector,
mainly because the domestic markets have become saturated for the respective insurer.
International insurers capture a significant part of their business from their multinational
operations only. UKs largest life and non-life insurers acquired 40% to 60% of their total
premium from their multinational operations. The foreign investors are finding the Indian market
more attractive because even a small share of a growing market looks lucrative. For example, the
Korean insurance market, the 30th largest market in the world premium volume in 1971 obtained
the 6th position in 1996, the reason being its multinational operations.
The other reason as to why the global insurers are interested in investing their funds is the nature
of the Indian markets. Generally insurance companies operate on the principle of spreading.
Spreading the area of operations over a wide geographical area would eliminate sudden dips in
earnings due to the unexpected risk spread. Sigma Report presented by the worlds second largest
reinsurer Swiss Re on global insurance, reports complete saturation of international market.
b) Effects Of Global Insurance
38
1.More job opportunities: Opening of the insurance sector to the foreign investors has led to a
renaissance in the Indian economy. Job opportunities show bright signals. The people working in
insurance sector in India are approximately the same as in the UK, which has 1/7th of Indian
population. There is the new concept of bancassurance that has paved the way for more job
opportunities in the financial sector. There would be demand for specialists in the area of
marketing, finance and human resource management apart from the demand for technical
expertise from professionals in the field of underwriting and claims management subjects.
2.Inflow of foreign capital: There would be huge inflow of funds into the country with foreign
capital splurging in the Indian insurance companies as start up capital.
3.Indigenous reinsurance: Even the reinsurance sector looks for opulence with global players
like Swiss Re and Munich Re keen on entering into the insurance industry in India. While there
will be a deep fall in the outward reinsurance, India would receive inflow of funds from the
neighbouring countries. If the legislative support offers a congenial atmosphere, a la Llyods in
India is not far off.
4.Technology transfer: Apart from the above monetary aspects, there would also be a revolution
in the transfer of technologies and knowledge from the global participants in the fields of
training, risk management, underwriting, introduction of new policies etc. With more participants
in the market, there would be healthy competition with increased advertisement expenditure for
brand building. There would be scientific pricing methods.
5.Wide distribution channel: The channel of distribution is widened once the products offered
are many. For instance, the seller himself at the point of sale itself can offer insurance for durable
consumer items such as a television or a refrigerator. In such cases, the non-financial sectors also
join in distributing the insurance products and benefit mutually.
The opening up of the market for private players has encouraged international insurance giants to
enter the Indian market through the medium of joint ventures with Indian promoters. However,
the foreign promoters' equity in an Indian insurance company is limited by law to 26%. The
market has attracted participants from across the globe. A rich tapestry of foreign promoters
from U.K., U.S.A., Canada, France, Germany, Netherlands, South Africa, Australia have
descended on the Indian scene. All these promoters have probably sought to re-establish
39
themselves in the Indian market where they had a presence prior to the nationalization of the
industry.
These companies have varied and rich experience in insurance underwriting and administration
and by joining hands with the Indian promoters have brought to Indian insurance market new
management techniques and practices, underwriting standards, risk analysis and risk
management techniques - all of which will indeed strengthen the Indian insurance market and
afford the Indian customers risk covers at competitive costs.
The participation from the Indian promoters point of view has also been rewarding. The
insurance market has attracted financial institutions, big industrial establishments etc., to enter
the insurance sector. Participation of banks and other financial institutions in the floatation of
insurance companies is also subject to clearance from the industry regulator viz., Reserve Bank
of India or National Housing Bank.
c) The Insurance Regulatory and Development Authority:

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies. The other decisions taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life insurance companies was the launch of
the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions
for imparting training to agents has also ensured that the insurance companies would have a
trained workforce of insurance agents in place to sell their products, which are expected to be
introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general insurance
companies have been registered.
In the liberalised insurance era, we have 15 life insurance players apart from the public sector
Life Insurance Corporation of India and 9 general insurance companies apart from the 4 state
owned companies viz. The United India Insurance, New India Assurance, Oriental Insurance,
National Insurance Company. The private insurers have already proved their success by way of
performance during the current financial year by way of 71% growth in the premium income.
40
TABLE 4: The list off all these Life Insurance companies are given as:
S.No. Name of the Company

1 HDFC Standard Life Insurance Company Ltd.
2 Max New York Life Insurance Co. Ltd.
3 ICICI Prudential Life Insurance Company Ltd.
4 Kotak Mahindra Old Mutual Life Insurance Limited
5 Birla Sun Life Insurance Company Ltd.
6 Tata AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Limited .
8 ING Vysya Life Insurance Company Private Limited
9 Bajaj Allianz Life Insurance Company Limited
10 Metlife India Insurance Company Pvt. Ltd.
11 AMP Sanmar Life Insurance Company Limited.
12 Aviva Life Insurance Co. India Pvt. Ltd.
13 Sahara Life Insurance Co. Pvt. Ltd.

14 Shiriram Life Insurance Co. Pvt .Ltd.
15 Bharati AXA Life Insurance Co. Pvt. Ltd.
TABLE 5: GENERAL INSURER:
S.No. Name of the Company

1 Royal Sundaram Alliance Insurance Company Limited
2 Reliance General Insurance Company Limited.
3 IFFCO Tokio General Insurance Co. Ltd
4 TATA AIG General Insurance Company Ltd.
5 Bajaj Allianz General Insurance Company Limited
6 ICICI Lombard General Insurance Company Limited.
41
d) Mission statement of IRDA
To protect the interest of and secure fair treatment to policyholders;
To bring about speedy and orderly growth of the insurance industry (including annuity and
superannuation payments), for the benefit of the common man, and to provide long term
funds for accelerating growth of the economy;
To set, promote, monitor and enforce high standards of integrity, financial soundness, fair
dealing and competence of those it regulates;
To ensure that insurance customers receive precise, clear and correct information about
products and services and make them aware of their responsibilities and duties in this
regard;
To ensure speedy settlement of genuine claims, to prevent insurance frauds and other
malpractices and put in place effective grievance redressal machinery;
To promote fairness, transparency and orderly conduct in financial markets dealing with
insurance and build a reliable management information system to enforce high standards of
financial soundness amongst market players;
To take action where such standards are inadequate or ineffectively enforced;
To bring about optimum amount of self-regulation in day to day working of the industry
consistent with the requirements of prudential regulation.
e) Limitations:
1) The Data about the financial Advisors and number of policies in a year for various
organization is not available in the print or any other media. It is taken from the various sources
in the organization in the insurance organization at Jalandhar.
42
2) Most of the companies have just started their business in Jalandhar, so the data collected was
of only few months theirfor their correlation can not be calculated.
3)Information about the recruitment and the benefits of some of the insurance organization was
not available to the full extent.
4)The information about the benefits and career opportunity has to be gathered by personal
interaction by the officials of Insurance Organization.
5) The general public is unaware about the MetLife in the region
DATA ANALYSIS & INTERPRETATION
TABLE 20: NUMBER OF AGENTS AT JALANDHAR

2007-
INSURER 2002-03 2003-04 2004-05 2005-06 2006-07 2008
HDFC STANDARD
LIFE 0 350 553 630 729 857
SBI LIFE INSURANCE 0 0 0 0 175 250
ICICI PRUDENTIAL 604 1137 1465 1695 2045 2500
BAJAJ ALLIANZ LIFE 0 0 0 390 830 1100
METLIFE INDIA 0 0 0 0 0 350
43
Max New york Life 0 0 0 0 0 0
Tata AIG 0 0 0 0 0 160
Reliance Life 0 0 0 190 440 600
Birla Sunlife 0 0 0 0 390 700
AVIVA 0 0 0 0 180 550
ING Vysya 0 0 0 0 160 550
Kotak Mahindra 0 0 0 0 270 450
LIC 2385 3286 4175 5065 5850 6600
TABLE 21: NUMBER OF POLICIES SOLD IN JALANDHAR

2007-
INSURER 2002-03 2003-04 2004-05 2005-06 2006-07 2008
HDFC STANDARD
LIFE 0 6650 8848 12600 16038 17997
SBI LIFE
INSURANCE 0 0 0 0 3500 5125
BAJAJ ALLIANZ
LIFE 0 0 0 9280 22410 24200
METLIFE INDIA 0 0 0 0 0 4856
Max New york Life 0 0 0 0 0 0
Tata AIG 0 0 0 0 0 0
Reliance Life 0 0 0 4326 7920 11400
Birla Sunlife 0 0 0 0 2152 15645
AVIVA 0 0 0 0 2580 10450
ING Vysya 0 0 0 0 2430 9900
Kotak Mahindra 0 0 0 0 9016 10760
LIC 71680 85436 96025 101300 111150 138600
44
5.2 Correlation and test of hypothesis:
TABLE 22: Correlation for HDFC LIFE :

2002- 2003- 2004- 2005- 2006- 2007-
HDFC LIFE 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 350 553 630 729 857

NO. OF POLICIES(Y) 0 6650 8848 12600 16038 17997
COFFICIENT OF CORRELATION = 0.978166
For sample size of 6 the value of t = 12.41969 and t0.05 = 2.920, which is quite higher than the
table value hence the hypothesis is rejected. Hence it is likely that the numbers of agent are
correlated to the number of policies sold in Jalandhar.
TABLE 23: Correlation for SBI LIFE

2002- 2003- 2004- 2005- 2006- 2007-
SBI LIFE INSURANCE 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 0 175 250

NO. OF POLICIES(Y) 0 0 0 0 3500 5125
For sample size of 6 the value of t = 143.66 and t0.05 = 2.920 , which is quite higher than the table
value hence the hypothesis is rejected . Hence it is likely that the number of agent are correlated
to the number of policies sold in Jalandar.
TABLE 24: Correlation for ICICI PRUDENTIAL LIFE

2002- 2003- 2004- 2005- 2006- 2007-
NO. OF AGENTS (X) 604 1137 1465 1695 2045 2500

NO. OF POLICIES(Y) 15704 28425 33695 35595 47035 47500
45
For sample size of 6 the value of t = 80629 and t0.05 = 2.920 , which is quite higher than the table
TABLE 25: Correlation for BAJAJ ALLIANZ LIFE

2002- 2003- 2004- 2005- 2006- 2007-
BAJAJ ALLIANZ LIFE 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 390 830 1100

NO. OF POLICIES(Y) 0 0 0 9280 22410 24200
TABLE 26: CORRELATION OF RELIANCE LIFE

2002- 2003- 2004- 2005- 2006- 2007-
Reliance Life 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 190 440 600
NO. OF POLICIES(Y) 0 0 0 4326 7920 11400
TABLE 27: CORRELATION OF BIRLA SUN LIFE

2002- 2003- 2004- 2005- 2006- 2007-
BIRLA SUN LIFE 2003 2004 2005 2006 2007 2008
46
NO. OF AGENTS (X) 0 0 0 0 390 700
NO. OF POLICIES(Y) 0 0 0 0 2152 15645
TABLE 28: CORRELATION OF AVIVA LIFE INSURANCE

2002- 2003- 2004- 2005- 2006- 2007-
AVIVA LIFE 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 0 180 550

NO. OF POLICIES(Y) 0 0 0 0 2580 10450
TABLE 29: CORRELATION OF ING VYSAYA LIFE

2002- 2003- 2004- 2005- 2006- 2007-
ING VYSAYA 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 0 160 550

NO. OF POLICIES(Y) 0 0 0 0 2430 9900
47
TABLE 30: CORRELATION OF KOTAK MAHINDRA LIFE
KOTAK MAHINDRA 2002- 2003- 2004- 2005- 2006- 2007-
LIFE 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 0 0 0 0 270 450

NO. OF POLICIES(Y) 0 0 0 0 9016 10760
TABLE 31: CORRELATION OF LIC

2002- 2003- 2004- 2005- 2006- 2007-
LIC 2003 2004 2005 2006 2007 2008
NO. OF AGENTS (X) 2385 3286 4175 5065 5850 6600

NO. OF POLICIES(Y) 71680 85436 96025 101300 111150 138600
COFFICIENT OF CORRELATION
= 0.962179
to the number of policies sold in Jalandhar.
From all the calculation done above and test for significance it is clear that the Insurance
organization having will have greater penetration in the market. Hence the LIC had greater
penetration in Jalandhar than any other company.
48
FINDINGS AND SUGGESTIONS
1) Tata-AIG has introduced the concept of NETWORKING which not only give a chance for the
career development to the advisors but also increases the strength of advisors in the organization.
MetLife Jalandhar if possible should follow the same concept to increase the number of its
financial advisors.
2) The fees taken by some of the insurance companies in Jalandhar is comparatively lower than the
MetLife. This is causing the desirable person to join those organizations. MetLife Jalandhar must
also try to implement certain schemes, so that to increase the possibilities of person to join
MetLife.
3) The organization like ICICI and Reliance etc. are giving their Advisors for their expenses on
Petrol and Mobile charges. MetLife should also try to provide similar compensation to the
advisors to attract them.
4) For attracting the new comers and to increase the strength of its Financial Advisors; MetLife can
organize the Business Opportunity Programme in the Private Schools and Other private
institutes.
49
5) MetLife can organize promotional activity in the various teaching institute to raise aware ness
about Life Insurance and MetLife.
6) Jalandhar has the lots of Travel Agents and Immigration offices, MetLife can make them their
agents to tap the NRI as their customers.
7) ICICI emerge as the second largest after LIC and holds the commanding position among the
private players and have 10 MDRT member.
8)There is need of more alternative distribution channels to tap more market in
Jalandhar. Many of the insurance organizations are providing the office space and their
infrastructure to their Financial Advisors.
50
CONCLUSION
1. The strength of the agents In any organization affects the business of
the
Insurance organization in Jalandhar.
2. LIC shows the maximum penetration, with the huge force 6600 Financial Advisors. It
also have 25 MDRT member.
3. New entrant like METLIFE has increased the competition in the market due to its
innovative policies for the cuwtomer and for its Advisors. It is evident from the fact that in a
short span of just 8 months in Jalandhar it has given 1 MDRT.
4. Better career opportunities and extra benefit given by the Insurance Organization for
recruitment; plays important role in attracting desiring candidates to take agency.
5. There is need of more alternative distribution channels to tap more market in
Jalandhar.
6. Many of the insurance organizations are providing the office space and their
infrastructure to their Financial Advisors.
7. Every kind of support and training facilities are provided time to time to the advisors.
8. Different contest give chance to the financial advisor to earn extra over and above their
commission.
9. Private players are paying healthier commission to their advisors.
51
10. Financial Advisors are also playing the role of End to End Vendor and their by help the
organization to increase their strength of Advisors.
11. Financial Advisors are getting more professional day by day; it is due to the various
training Programme which are being given to them by their respective organization.
12. Jalandhar has the huge potential for investment. Because Jalandhar alone has all the big
player of insurance in the market and all of these together has given 41 MDRTS.
These Financial Advisors are the real producers for any Insurance Organizations
52
BIBLIOGRAPHY
References to books:
Examination Book (2007), Pre-Recruitment Examination for Insurance Agent,

Insurance Institute of India, Mumbai.
Kothari.C.R (2007), Research Methodology, New Age Publisher, Delhi.
Gupta.S.P (2006), Statistical Method, Sultan Publisher, New Delhi.
References to Articles:
Bhaskaran. D. (2007), Insurance Umbrella Size To Double , Says Industry, Indian
Express, New Delhi.
Chavan. Vijay. (2006), Channeling The Future, Mastek ,USA.
Malhotra. R.N. (1994), Insurance India, New Delhi.
Oza. Arman.(2006), Importance Of Delivery system , IRDA, Mumbai.
Vishwanathan. S. (2006), Role of Distribution Channel, IRDA, Mumbai, India.
Zabik.J.Joseph (2006), Agents In Paradise, Producers View on Conferences and
Sales Contests, LIMRA International, Connecticut, USA.
References to web Pages:

http://www.avivaindia.com/
https://www.birlasunlife.com
http://www.domain-b.com/industry/associations/irda
http://www.gii.in/Insurance/Life_Insurance
53
http://www.hdfcinsurance.com/aboutus/aboutus.asp
http://www.icicipru.com
http://www.insuremagic.com/Content/Articles/Life
http://www.irda.org/annual
http://www.kotakmahindra.com
http://www.lifeinsurance council.org
https://www.limra.com/Default.aspx
www.ingvysyalife.com
http://www.maxnewyork.com/
http://www.metlife.co.in
http://us.rediff.com/money/2004/may
http://www.reliancelife.com
http://www.researchandmarkets.com/reportinfo
https://www.tataaig.com
http://timesofindia.indiatimes.com/articleshow
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CONTENTS

Sr. CONTENTS Page

b) Life Insurance Business 1

4. DATA ANALYSIS & INTERPRETATION 42

5. FINDINGS & SUGGESTIONS 48

INTRODUCTION TO INSURANCE AGENTS

The insurance sector is of considerable importance to every developing economy; it inculcates

c) Distribution Channel In Life Insurance:

There are three main channel of distribution. Which are :

Table 1: Number of Licenses granted to the advisors :

2007-2008 2006-2007 2005-2006 2004-2005 2003-2004

The market share private insurance organization as on April 2008 was :

TABLE 2: 2008 MDRT COMMISSION REQUIREMENTS

India 678,600 2,035,800 4,071,600 8.2958

China 149,400 448,200 896,400 1.8264

Pakistan 913,600 2,740,800 5,481,600 11.1687

Bangladesh 993,100 2,979,300 5,958,600 12.1405

Sri Lanka 1,486,600 4,459,800 8,919,600 18.1735

Nepal 777,500 2,332,500 4,665,000 9.5048

TABLE 3: Month wise Commission for MDRT, COT and TOT

Month MDRT MDRT COT COT TOT TOT

January 56,550 226,200 169,650 678,600 339,300 1,357,200

February 113,100 452,400 339,300 1,357,200 678,600 2,714,400

March 169,650 678,600 508,950 2,035,800 1,017,900 4,071,600

April 226,200 904,800 678,600 2,714,400 1,357,200 5,228,800

June 339,300 1,357,200 1,017,900 4,071,600 2,035,800 8,143,200

July 395,850 1,583,400 1,187,550 4,750,200 2,375,100 9,500,400

August 452,400 1,809,600 1,357,200 5,428,800 2,714,400 10,857,600

September 508,950 2,035,800 1,526,850 6,107,400 3,053,700 12,214,800

October 565,500 2,262,000 1,696,500 6,786,000 3,393,000 13,572,000

November 622,050 2,488,200 1,866,150 7,464,600 3,732,300 14,929,200

December 678,600 2,714,400 2,035,800 8,143,200 4,071,600 16,286,400

e) Training & Examination Of The Fi nancial Advisors:

f) Eligibility For Examination:

g) Motivational Factors for a Life Insurance Agent:

Following Formula are being used for the calculations:

2) t-Test = Ryx (n-2)

Where; Ryx = Coefficient of the correlation between X and Y

(n-2) = Degree of Freedom.

sources in the organization in the insurance organization at Jalandhar.

of only few months theirfor their correlation can not be calculated.

not available to the full extent.

interaction by the officials of Insurance Organization.

5) The general public is unaware about the MetLife in the region

In 1931 MetLife provided the outside capital to build Rockefeller Center.

b) MET LIFE INDIA:

d) Products Offered by MetLife In India :

f) History of MET LIFE Financial Advisors :

g) Training At Met Life JALANDHAR:

METLIFE Jalandhar training program focuses on developing skills, knowledge and

IRDA exam and licencing.

h) Career Path Of Financial Advisors at METLIFE:

i) Benefits Of being METLIFES Financial Advisor:

1. Rewards And Recognition:

The Reward and Recognition Stages can be shown as :

GOLDEN EAGLE AWARD

SILVER EAGLE AWARD

RAPID FIRE CHAMP

TABLE 7: Benefits of Being METLIFES Financial Advisor:

Exceptional Performer are absorb at the

Are held weekly, monthly and in festive

TABLE 8: REQUISITE OF FA:

He/ She can be any person citizen of India

Passport size Photographs 5