You are on page 1of 50



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 receives or agrees to receive payment 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

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 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 feedback 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
Insurance 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
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
companies 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.

There are three main channel of distribution. Which are:

1. Tied Channel (Financial Advisors and Sales Managers)
2. Corporate Agents ; &
3. Bancassurance

d) Training & Examination of The Financial 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 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 licensing examination
is called Pre-Recruitment Examination for Life Insurance Agents.

The Insurance Organization at Mumbai goes for In-house training or outsource

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 hours the Financial Advisors are also given the product training to the FAS
by these insurance organization at their own agencies.

e) 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 passes 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 method of motivating their
Agents and during the whole process they help in building the career for the
Agents. At these insurance organization 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.




To know the penetration of the various Life Insurance Organization in

To know the extra benefits that any Financial Advisor or Agent is
provided in the various insurance Organization.
To know the career opportunity for the advisors in there organization.
To know the Scope for Financial Advisors in the present scenario of
competition in the Mumbai.
To suggest the method to increase the strength of Financial Advisors in
MetLife Mumbai.



In Mumbai 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 Mumbai and what is the effect of strength
of Financial Advisors on the business of any Insurance Organization operating
in Mumbai.

Sources of study :-
The study is based on the Secondary data collected from the various
organizations in Mumbai. The data is confidential in nature and is not published
in any of the website and in any of the newspapers. The data thus here within is
collected by using various links in the other organizations in Mumbai. 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 is collected. Correlation among the number of agents and
the number of policies sold is calculated by using the formula of Karl Pearsons
coefficient 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 Mumbai 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 than 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

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


(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 Mumbai.
2) Most of the companies have just started their business in Mumbai, so the data
collected was of only few months there for their correlation cannot be
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.




Mobile no:-

Would you be interested in taking up a fantastic business/career

opportunity with LIC?

a) Yes
b) No

In which age group do you belong?

a) Less than 25
b) 25-40
c) More than 40

What is your marital status?

a) Single
b) Married

What is your educational qualification?

a) 10th pass or 12th pass
b) Graduate
c) Post graduate

What is your household income?

a) Less than 2 lakh
b) 2-5 lakh
c) More than 5 lakh

What is your occupation?

a) Student
b) Service
c) Business
d) Any other


Are you prepared for your future planning?

a) Yes
b) No

Do you have any Insurance Policy?

a) Yes
b) No

Do you have any knowledge of or experience in Insurance?

a) Yes b) No

a) Yes b) No

Thanking you for your kind cooperation



The business of insurance is related to the ECONOMIC VALUES OF

ASSETS. Every asset has a value. The asset would have been created through
the efforts of the owner. The asset would have been created through the efforts
of the owner. The asset is valuable to the owner, because he expects to get some


benefits from it. It is a benefit because it meets some of needs. The benefit may
be an income or in some other form. In the case of a factory or a cow, the
product generated by it sold and income is generated. In the case of a motor car,
it provides comfort and convenience in transportation. There is no direct
income. Both are assets and provide benefits

Every asset is expected to last for a certain period of time during which it will
provide the benefits. After that the benefit may not be available. There is a life
time for a machine in factory or a cow or a motor car. None of them will last
forever. The owner is aware of this and he can so manage his affairs that by the
end of that period or life time, a substitute is made available. Thus he makes
sure that the benefit is not lost. However, the asset may get lost earlier. An
accident or some other unfortunate event may destroy it or make it incapable of
giving the benefits. An epidemic may kill the cow suddenly. In that case, the
owner and those enjoying the benefits therefore, would be deprived of the
benefits. The planned substitute would not have been ready. There is an adverse
or unpleasant situation. Insurance is a mechanism that helps to reduce the
effects of such adverse situation. It promises to pay to the owner or beneficiary
of the asset a certain sum if the loss occurs.


Insurance has been known to exist in some form or other since 3000 BC. The
Chinese traders, traveling treacherous river rapids would distribute their goods
among several vessels, so that the loss from any one vessel being lost would be
partial and shared, and not total. The Babylonian traders would agree to pay
additional sums to lenders, as the price for writing off the loans, in case of the
shipment being stolen. The inhabitants of Rhodes adopted the principle of
general average of general average; whereby, if goods are shipped together, the
owners would bear the losses in proportion, if loss occurs, due to jettisoning
during distress. {Captains of ships caught in storms, would throw away some of


the cargo to reduce the weight and restore balance. Such throwing away is
called jettisoning} The Greeks had started benevolent societies in the late 7th
century AD, to take care of the funeral and families of members who died. The
great fire of London in 1666, in which more than 13000 house were lost, gave a
boost to insurance and the first fire insurance company, called the fire office,
was started in 1680.The origins of insurance business as in vogue at present, is
traced to the Lloyd; s Coffee House in London, agreed to share the losses to
their goods while being carried by ships. The losses used to occur because of
pirates who robbed on the high seas of because of bad weather spoiling goods or
sinking the ship. In India, insurance began in 1818 with life insurance Co. in
1870 in Mumbai. This was followed by the Bharat insurance co. in 1896 in
Delhi, the Empire of India in 1897 in Mumbai. The United India IN Chennai,
the National, the National Indian and Hindustan Cooperative in Kolkata.
Later, were established the cooperative Assurance in Lahore, the Bombay Life
(originally called the swadeshi life), the Lakshmi in New Delhi. These wear all
Indian companies started as a result of the swadeshi life), the India Mercantile,
the new India and the Jupiter in Mumbai and Lakshmi in New Delhi. These
were all India companies started as a result of the swadeshi movement in the
early 1900s. By the year 1956, when life insurance business was nationalized
and the life Insurance Corporation of India (LIC) was formed on1st September
1956, there 170 companies and 75 provident fund societies transacting life
business in India. After the amendments to the relevant laws in 1999, the L.I.C.
did not have the exclusive privilege of doing life insurance business in India. By
31.8.2007, sixteen new life insurers had been registered and were transacting
life insurance business in India.


Some of important milestones in the life in the insurance business

in India are:

1912 - The Indian Life Assurance Companies Act enacted as the

first statute.
To regulate the life insurance business.


1928 - The Indian Insurance Companies Act enacted to enable the

To collect statistical information about life and non-life
insurance businesses.
1938 - Earlier legislation consolidated to by the insurance Act with
the objective of protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized LIC formed
by an Act of Parliament viz. LIC Act 1956 with a capital
contribution of Rs.5 crore from the Government of India.

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.


Life insurance is a contract providing for payment of a sum of money to the

person assured or, failing him, to the person entitled to receive the same on the
happening of certain event.

A family is generally dependent for its food, clothing and shelter on the income
brought in at regular intervals by the bread winner of family. So long as he lives
and the income is received steadily, that family is secure; but should death
suddenly intervene the family may be left in a very difficult situation and
sometimes in stark poverty.


Uncertainty of death is inherent in human life. It is this uncertainty that is risk,

which gives rise to the necessity for some form of protection against the
financial loss arising from death; insurance substitutes this uncertainty by

Few advantages of Life Insurance.

1. It is superior to an ordinary savings plans:
This is so because unlike other saving plans, it affords full protection against
risk of death. In case of death, the full sum assured is made available under a
life insurance policy; whereas under other savings schemes the total
accumulated savings alone will be available. The latter will be considerably less
than the sum assured, if death occurs during early year.

2. Insurance encourages and forces thrift:

A savings deposit can be too easily withdrawn. Many may not be able to resist
the temptation of using the balance for some less worthy purpose. On the other
hand the payment of life insurance premiums becomes a habit and comes to be
viewed with the same seriousness as the payment of interest on a mortgage.
Thus insurance, in effect brings about compulsory savings.

3. Easy settlement and protection against creditors:

The life assured can be name a person or persons to whom the policy moneys
would be payable in the event of his death. The proceeds of a life insurance
policy can be protected against the claims of the creditors of the life assured by
effecting a valid agreement of the policy. A married womens property act
policy constitutes a trust in favor of the wife and children and no separate
assignment is necessary. The beneficiaries are fully protected from creditors
except to the extent of any interest in the policy retained by the assured.

4. Administering the legacy for beneficiaries

If often happens that a provision which a husband or father has made through
insurance is quickly lost through speculative or unwise investment or by
unnecessary expenditure on

Luxuries these contingencies can be provided against in the case of insurance

the policyholder can arrange that in the in the event of his death the beneficiary


should receive instead of a single sum (A) payment of the claim amount by
installments over a specified period of years or (b) payment of the claim amount
by smaller monthly installments over the selected period followed by a lump
sum at the end thereof

5. Ready marketability and suitability for quick borrowings

After an initial period if the policy holder finds himself unable to continue
payment of premiums he can surrender the policy for a cash sum Alternatively
he can tide over a temporary difficulty by taking loan on the sole security of the
policy without delay Further a life insurance policy is sometimes acceptable as
security for a commercial loan

6. Tax relief:
For computing income tax (especially in India the Indian income tax act)
follows deduction from income tax payable a certain percentage of a portion of
the taxable income of individuals which is diverted to payment of an insurance
premiums When this Tax relief is takes into account it will be found that the
assured is an effect paying a lower premium for sis insurance.


The mechanism of insurance is very simple. People who are exposed to the
same risks come together and agree that, if any one of the members suffers a
loss, the others will share the loss and make good to the person who lost. All
people who send goods by ship are exposed to the same risk related to water
damage, ship sinking, piracy, etc. those owning factories are not exposed to
these risks, but they are exposed to different kinds of risks like, fire, hailstorms,
earthquakes, lightening, burglary, etc. like this, different kinds of risks can be
identified and separate groups, made including those exposed to such risks. By
this method, the risk is separated among the community and the likely big
impact on one is reduced to smaller manageable impacts on all.

If a Jumbo Jet with more than 350 passengers crashes, the loss would run into
several crores of rupees. No airline would be able to bear such a loss. It is


unlikely that many Jumbo Jets will crash at the same time. If 100 airline
companies flying Jumbo Jets, come together into an insurance pool, whenever
one of the Jumbo Jets in the pool crashes, the loss to be borne by each airline
would come down to a few lacks of rupees. Thus, insurance is a business


For economic development, investments are necessary. Investments are made

out of savings. A life Insurance company is a major instrument for the
mobilization of savings of people, particularly form the middle and lower
income groups. These savings are channeled into investments for economic
An insurance companys strength lies in the fact that huge amounts come by
way of premiums. Every premium represents a risk that is covered by that
premium. In effect, therefore, these vast amounts represent pooling of risks. The
funds are collected and held in trust for the policyholders.
The management of Insurance companies is required to keep this aspect in mind
and make all its decisions in ways that benefit the community. This applies also
to its investment. This is why successful Insurance companies would not be
found investing in speculative ventures. Their investment benefit the society at
The system of Insurance provides numerous direct and indirect benefits to the
individual and his family as well as to industry and commerce and to the
community and the nation as a whole. Those who insure, both individuals and
corporate, are directly benefited because they are protected from the
consequences of the loss that may be caused by the accident or fortuitous event.
Insurance, thus, in a sense protects the capital in industry and releases the
capital for further expansion and development of business and industry.
The very existence of risk is, uncertainty concerning the future, is a severe
handicaps in economic activities. Insurance removes the fear, worry and anxiety
associated with this future uncertainty and thus encourages free investment of
capital in business enterprises and promotes efficient use of existing resources.
Thus insurance encourages commercial and industrial development and there by
contributes to a vigorous economy and increased national productivity.


Present day organization of industry, commerce and trade depend entirely

on insurance for their operation, banks and financial institutions lend money to
industrial and commercial undertakings only on the basis of the collateral
security of insurance. No bank or financial institution would advance loans on
property unless it is insured against loss or damage by insurable perils.

Insurers are closely associated with several agencies and institutions

engaged in fire loss prevention, cargo loss prevention, industrial safety and road
safety. Before acceptance of a risk, insurers arrange survey and inspection of the
property to be insured, by qualifies engineers and other experts.

The object of these surveys is not only to assess the risk for rating purposes but
also suggest and recommend to the insured, various improvements in the risk,
which will attract lower rates of premium and what is more important, reduce
the loss potential. For example, burglary surveyors make recommendation in
regard to security measures such as better locking system, appointment of
Watchman, etc. Engineers surveys play a most useful part in accident prevention
as valuable technical advice is provided in respect of plant and machinery.

Insurance ranks with export trade, shipping and banking services as earner of
foreign exchange to the country. It helps to earn foreign exchange and represent
invisible exports.


List of Life Insurance Companies

Sl.No. Registration Date of Reg. Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd
2 104 15.11.2000 Max New York Life Insurance Co. Ltd
3 105 24.11.2000 ICICI prudential Life Insurance Company
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance company Limited
8 114 02.08.2001 ING Vysya Life insurance company private
9 116 03.08.2001 Bajaj Allianz Life Insurance Company
10 117 03.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life insurance
Company Ltd.
12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
13 102 23.10.2000 Royal Sundaram Alliance insurance
Company Ltd
14 103 23.10.2000. Reliance General Insurance Company
15 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd.
16 108 22.01.2001 TATA AIG General Insurance Company
17 113 02.05.2001 Bajaj Allianz General Insurance Company
18 115 03.08.2001 ICICI Lombard General insurance Company
19 131 03.08.2007 Apollo DKV insurance Company Limited
20 132 04.09.2007 Future general India insurance Company
21 134 19.11.2007 Universal Sompo General Insurance
Company Ltd
22 121 03.01.2002 Reliance Life insurance Company Ltd
23 122 14.05.2002 Aviva Life Insurance CO. India Pvt. Ltd
24 127 06.02.2004 Sahara India Insurance Company Ltd
25 128 17.11.2006 Shriram Life Insurance Company Ltd.
26 130 14.07.2006 Bharti AXA Life Insurance Company Ltd
27 133 04.09.2007 Future General India Life Insurance
Company Ltd
28 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd
29 136 08.05.2008 Canara HSBC Oriental Bank of Commerce
Life Insurance Company Ltd
30 138 27.06.2008 Aegon Religare Life Insurance Company Ltd


31 104 27.06.2008 DLF Pramerica Life Insurance Company Ltd

List Of General Insurance Companies

1 123 15.07.2002 Cholamandalam General Insurance

Company Ltd
2 124 27.08.2002 Export Credit Guarantee Corporation Ltd
3 125 27.08.2002 HDSC-Chubb General Insurance Co. Ltd
1 139 .27.06.2008 Bharti Axa General Insurance Company Ltd
2 141 15.12.2008 Raheja QBE General Insurance Co. Ltd.


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. 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

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 everyone.

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) Henryson"" chairman of the board of directors, president and
""chief executive officer"" of MetLife, Inc. Henryson 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

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.


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.


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.


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
Business giants like SATYAM, ORACLE, BANK OF AMERICA,
OF PUNJAB, J&K BANK, and 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 their
investment. The List of these product is given below:

MetLife India Insurance Products

The products offered by MetLife may be enumerated as below:

Individual Plans


Child Plan
Met Bhavishya
Met Junior Moneyback
Met Junior Endowment
Met Smart Child

Met Sukh
Met Saral
Met Suvidha
Met 100

Met Suraksha
Met Suraksha Plus
Met Suraksha TROP
Met Mortgage Protector Plus

Met Vishwas
Met Grameen Ashray
Met Suvidha Rural

Met Dhan Samriddhi
Met Smart One
Met Smart Platinum
Met Easy Super

Met Health Cash
Met Health Care


Monthly Income
Met Monthly Income Plan
Met Monthly Income Plan 15 Pay
Met Monthly Income Plan 7 Pay


Money Back
Met Money Back

e) Future plans:
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.
The company plans to expand its agency and office networks to enable
the growth in India.
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.
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.

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 MUMBAI:

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 licensing.

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 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 achievers 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 Rest 5 lakh, he/she will earn


Rest 1.5 lakh at a commission rate of 30% on an average. Or, if generates a

business of Rest 30 lakh, he/she will earn Rest 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 recruiting the financial advisor. For this effort he is paid 2500 Rest 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
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:













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-

1. Training and Career:

LIC strictly follows the rule and regulations framed by the IRDA for the
recruitment and the training of the Agents. In Jalandhar LIC have their own
training facility at their own agency. LIC Jalandhar have their 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 so 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. 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.

Requirement and Requisites of becoming the LIC Financial


He/ She can be any person citizen of

Probable Agent Profile India having his/her business, shop or
Minimum Qualification Plus Two OR any of the Higher
Date of Birth Proof 10th standard certificates
ID and Residence Proof Copy of Ration card /License/Passport
Passport size Photographs 5

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 Rest. 20.60 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In Jalandhar ICICI
PRDEMTIAL started in 2001.

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 their 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 their 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 Rest for the recruitment of
an additional Advisor.

c) Bajaj Allianz General Insurance Company Limited:


Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited 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, and 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 Bajaj Allianz 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.

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.

1. Training of Financial Advisors and career:

Kotak Mahindra provides the training to its Financial Advisors in their 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 train their advisors. All
the study material is provided to the advisors by the Kotak Mahindra Life.
Anyone 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 Rest for referring and
successful recruitments of the new advisor.

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

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 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:

Senior Manager
Advisor Bussiness Bussiness Bussiness
Associate Associate Associate


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
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business
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
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 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

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

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 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 liberalized 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.

The list of 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.

S.No. Name of the Company
1 Royal Sundaram Alliance Insurance
Company Limited
2 Reliance General Insurance Company
3 IFFCO Tokio General Insurance Co. Ltd
4 TATA AIG General Insurance Company Ltd.
5 Bajaj Allianz General Insurance Company
6 ICICI Lombard General Insurance Company


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

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

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


To bring about optimum amount of self-regulation in day to day working of

the industry consistent with the requirements of prudential regulation.



According to section 182 of Indian contracts Act, an agent is a person

employed to do any act for another or to represent another in dealing with a
third person In the insurance industry, the term agent is ordinarily applied to a
person engaged by the insurance industry, the term agent is ordinarily applied
to a person engaged by the insurer to procure new business. The insurance Act
definers and insurance agent as one who is licensed under Section 42 of that act
and is paid by way of commission or otherwise, in consideration if his soliciting
insurance business, including business relating to the continuance, renewal or
revival of policies of insurance. He is, for all purposes, an authorized salesman
for insurance and needs a license.

An agent is one who acts on behalf of another the another on whose behalf
the agent acts, is called the principal in this case The insurance company is the
principal in the case. The lawyer is the agent of the client, when he argues the
case in court. An ambassador is an agent of his country. The agent as advisers,
consultants etc on his behalf. Some insurers designate their agents as
advisers, consultants etc. as if they are independent advisor or consultant
would not be approached for advice or consultation. Some insurance agents may
acquire that status. All insurance agents should strive to attain that status.

An agent is one who acts on behalf of another the another on whose behalf
the agent acts, is called the principal in this case The insurance company is the
principal in the case. The lawyer is the agent of the client, when he argues the
case in court. An ambassador is an agent of his country. The agent as advisers,
consultants etc on his behalf. Some insurers designate their agents as
advisers, consultants etc. as if they are independent advisor or consultant
would not be approached for advice or consultation. Some insurance agents may
acquire that status. All insurance agents should strive to attain that status.



The Insurance Act, 1938 lay down that an insurance agent must possess a lice
under Section 42 of that act. The license is to be issued by the IRDA .The IRDA
has authorized designated persons, in each insurance company to issue the
licenses on behalf Of the IRDA In terms of the Insurance Act; license will not
be given if the person is:
(a) Minor
(b) Found
(c) Found guilty of criminal misappropriation or criminal misappropriation
or criminal breach of trust or cheating or forgery or an abetment of or
attempt to commit any such offence
(d) Found guilty of or knowingly participation in or conniving at any fraud,
dishonesty or misrepresentation against an insurer or an insured
(e) Not possessing the requisite qualifications and specified training
(f) Found violating the code of conduct as specified in the regulations.
(g) The fee for a license is Rs.825 for individual. A license is granted for 3
years. It may be renewed after 3 years and again valid for 3years.

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

The Qualifications necessary before a license can be given are that the person
must be
(a) Not a minor
(b) Have passed at least the 12th standard or equivalent examination, if he is
to be appointed in a place with a population of 5,000 or more. (10 th
standard otherwise.)
(c) Have undergone practical training for at least 50 hours in life or general
insurance business, as the case may be, form an institution, approved and
notified by the IRDA. IN the case of a person wanting to become a
composite insurance agent, the applicant should have completed at least


75 hours practical training in life and general insurance business, which

may be spread over six to eight weeks.
d) Have passed the pre-recruitment examination conducted by the insurance
institute of India or any other examination body authorized by the IRDA. The
license once issued, can be cancelled whenever the person acquires a
disqualification. Applications for renewal have to make at least thirty days
before the expiry of the license, along either the renewal fee of Rs.250. If the
application is not made at least thirty days before the expiry, but is made before
the date of expiry of license, an additional fee of Rs.100 is payable. If the
application is made after the date of expiry, it would be normally being refused.
Prior to renewal of the license, the agent should have completed at least 25
hours practical training in life or general insurance business or at least 50 hours
practical training in life and general insurance business in the case so a
composite insurance agent.
Insures who select agents for appointment, make arrangements for training, for
appearing in the prescribed examinations, and obtaining the license.

The insurance Act provides, In Section 44, for payment of commission on
renewal premium even after termination of the agency. The commission will be
limited to a rate not exceeding 4%, to be eligible for this; the agent should have
been an agent with that insurer for at least:
i) five years and policies for at least Rs. 50000 are in force one year
before termination of agency or,
ii) 10 year, This commission will be payable to their heirs of the agent
after the agents death.


Understanding the prospects needs and persuade him to buy a plan of life
insurance that suits his interests best.

Complete the formalities: - paper work, medical examination, which are

necessary to get the policy expeditiously.


Keep in touch to ensure that changing circumstances are reflected in the

arrangements relating to premium payments, nomination and other necessary

Facilitate quick settlement of claims.

be totally honest with both the prospect and the insurer.

Not to induce prospects to submit wrong information.


Opportunity to earn unlimited income.

Career growth.

Be your own boss.

High quality Training & Support to improve productivity.

Compensation amongst the best.

Club member benefits: (Acers club, Directors club, & CEOs club).

Payout structured to facilitate your cash flows better.

Best in class & competitive products.

Pension for life.



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
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
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



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.


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.


1. The strength of the agents In any organization affects

the business of the
Insurance organization in Mumbai.
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 Mumbai 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
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.
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. Mumbai has the huge potential for investment. Because Mumbai 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


References to web Pages: