A STUDY

ON
RECRUITMENT FOR THE POST OF
INSURANCE ADVISOR
SUMMER TRAINING PROJECT REPORT SUBMITTED FOR THE
PARTIAL FULFILLMENT
OF
MASTER’S DEGREE
IN
BUSINESS ADMINISTRATION

SESSION (2006-2008)

UNDER THE GUIDANCE OF

Mr. ABHISHEK DUBE

(AGENCY MANAGER)

SUBMITTED BY:

MONIKA AGRAWAL

DEPARTMENT OF MANAGEMENT STUDIES

MODI ISTITUTE OF MANAGEMENT & TECHNOLOGY,
MODI EDUCATION COMPLEX, DADABARI EXT.,
KOTA–324009 (RAJ.)
 PREFACE

In the insurance industry, there are two channels of distribution –Alternative distribution and
tide agency. Advisor recruitment is the part tide agency.
My project is about agency recruitment and channel distribution of SBI life insurance. Its
means company is recruiting advisor for expanding its business. Company adopts chain
marketing as a methodology for expansion.
In this project, I have to make a cold call to the target market, get the appointment with them,
convince them & close the sale positively. The queries, which asked by the client, should be
solved by the discussion with the company guide.
SBI is immensely concentrating on the agency recruitment. It has 33000 advisors and it is
planning to extend this number to 53000 by the end of the year 2006-07.
For recruiting advisors, SBI hold many activities like they do direct marketing for recruitment
of advisors, they also recruit the management trainee for recruitment of advisors, they also do
seminar and also include stall activities etc…
The Researcher express his sincere gratitude to MR. Abhishek Dube (Agency Manager), his
project guide who was so cooperative and helpful from the first day of his training till its end.
He also helped him a lot enhancing his knowledge about the technicalities of Insurance sector.
The researcher highly thankful to him for providing him constant support and encouragement
throughout the project. The researcher also thankful to his team members for giving him the
live experience of market and customers.
 ANKNOWLEDGEMENT

Achieving a milestone for any person is extremely difficult. However, there are motivations,
which come across the curvaceous path like twinkling stars in the sky and make our task
much easier. It becomes my humble and foremost duty to acknowledge all of them.
I am deeply indebted to and express my sincere appreciation and gratitude to
Mr. Abhishek dude (Agency manager) of SBI Life Insurance Company Ltd. for providing
their valuable guidance and encouragement throughout the summer training for keeping my
morale up and making it possible to complete and submit this project of mine in time.

I feel privilege to thanks to Mrs. Swati Sharma (faculty-MIMT), who as a guide and
mentor, has extended all possible support, cooperation and guidance in completing my project
work. Mr. Abhishek dube for his support and good wishes.
It would be unfair on my part if I do not thank my heartful thanks to my colleagues for
their unstinting help without which this work could never have been accomplished. They
made me realize the importance of a team, teamwork and also the leadership skills. I am
grateful to all of them for standing with me and supporting me in this project.
I would like to thanks the entire respondent for entertaining and satisfying all the
inquiries with great seriousness. finally I express my gratitude to all those who have directly
and indirectly rendered assistance guidance and support in completing my task and if course
my father & mother MR. Sushil Agrawal and Mrs. Usha Agrawal you motivating me to
accomplish the task in best possible .
 EXECUTIVE SUMMARY

Being a management trainee at SBI life insurance Jaipur, my objective was to study the
profile of Recruitment of Advisors from different localities of Jaipur.

The Study of knowing different profile of Advisors working or interested to work in SBI life
insurance Jaipur involves Demographic background, Educational background, Experience
background, and Industry background.

Beside this, it helps to identify successful Advisor and study their success patterns. This
involves the following activity.

 Setting Success Parameters for Recruitment of Advisors.

 Measuring the Business Performance with Business Parameters.

To give a strong base to my study I under took a Research at the Jaipur region and used
Questionnaire, personal interview and determining the Success parameter for Advisors. The
research gave findings to make conclusion about the success of Advisors on the basis of their
Age, Bachelor Qualification, Work field Experience.

From this report give the following Conclusions

 Advisors who are P.G’S are around 35 % and 65 % are graduates only.
 Most of the Advisors are B.Com.
 Maximum age of Advisors fall above the 30 age group.
 2 Advisors are turnout out of 10.
 About 50 % of Advisors are able to achieve the yearly targets of annualized
premiums and around 35 % of Advisors fall short of the yearly targets by 20

CONTENTS
 OBJECTIVES OF THE STUDY

 INTRODUCTION
 INDUSTRY PROFILE
 ORGANIZATION PROFILE
 ESTABLISHMENT OF THE COMPANY
 COMPANY VISION, MISSION STATEMENT AND AIM OF THE COMPANY
 ORGANIZATION STRUCTURE
 PROJECT: RECRUITMENT
 INSURANCE INDUSTRY AS a CAREER.
 ROLE OF INSURANCE AGENT
 PERSONAL DEVELOPMENT OF AN AGENT
 LIFE INSURANCE MARKETING
 RESEARCH METHODOLOGY
 ANALYSIS
 CONCLUSION
 SUGGESTION
 ANNUXE
 BIBLIOGRAPHY
 OBJECTIVE OF THE PROJECT STUDY

Beneath any activity or function pursued lies the purpose or the objectives. The
objectives underlying the survey conducted for this particular study are as under.

 General Objectives:-
Insurance sector is growing at a robust rate and in the recent time there
had been tremendous inflow of burning issues in this sector that may it be the hard-core
competition midst the LIC’s and private insurance co’s. So the general objective was to take
a glance of a sector which has so much potential for growth and get awareness and
knowledge about the working competition potential, services and trends in one of the fastest
growing and promising sectors of the corporate world.

Specific Objectives:-

1) To develop the awareness about the various activities of SBI Life Insurance
to the General Public
2) To build a strong line up of Advisors from various segments of market.
3) To stimulate the investment and risk decision.
4) To attract the potential Advisors from various other institution.
5) To study the services being provided by the SBI Life Insurance
6) To study the trend in different segement in Kota
7) To analyze the satisfaction level of Advisors.
8) To study the features, which attract people towards advisor ship
9) Find out the prospects of growth or underlying untapped potential market
in Pali.
 INTRODUCTION

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of
France. SBI Life Insurance is registered with an authorized capital of Rs 1000 crore and a
paid up capital of Rs 500 crores. SBI owns 74% of the total capital and Cardif the remaining
26%

. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate
Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country,
arguably the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which
is the Euro Zone’s leading Bank. BNP Paribas is one of the oldest foreign banks with a
presence in India dating back to 1860. Cardif is ranked 2nd worldwide in creditor’s insurance
offering protection to over 35 million policyholders and net income in excess of Euro 1
billion. Cardif has also been a pioneer in the art of selling insurance products through
commercial banks in France and in 35 more countries.

SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive
range of Life Insurance and pension products at competitive prices, ensuring high standards of
customer service and world class operating efficiency.

SBI Life has a unique multi-distribution model encompassing Bancassurance, Agency and
Group Corporates.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance
products along with its numerous banking product packages such as housing loans and
personal loans. SBI’s access to over 100 million accounts across the country provides a
vibrant base for insurance penetration across every region and economic strata in the country
ensuring true financial inclusion.

Agency Channel, comprising of the most productive force of more than 25,000 Insurance
Advisors, offers door to door insurance solutions to customers.
SBI Life’s HORIZON II is a unique, non participating Unit Linked Insurance Plan in Indian
Insurance Industry, where you need not to be a financial market expert. This plan offers the
flexibility of Unit Linked Plan along with Automatic Asset Allocation which provides
relatively higher returns on your money where as increasing death benefits provides higher
security to your family.

After liberalization

1993: Malhotra Committee, headed by former RBI Governor R.N.Malhotra, set up to draw up
a blue print for insurance sector reforms.
1994: Malhotra Committee recommends re-entry of private players, autonomy to PSU
insurers.
1997: Insurance regulator IRDA (Insurance Regulatory and Development Authority) Set up.
2000: IRDA starts giving licenses to private insurers; SBI Life Insurance first private life
insurers to sell a policy.
2001: Royal Sundaram Alliance first non-life insurer to sell a policy.
2002: Banks allowed selling insurance plans; as TPAs enter the scene, insurers start setting no
life claims in the cashless mode.

PRESENT SCENARIO

The Government of India liberalized the insurance sector in March 2000 with the passage of
the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions
for private players and allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign
partners in an insurance company. There is a proposal to increase this limit to 49 percent.
Premium rates of most general insurance policies come under the purview of the government
appointed Tariff Advisory Committee.
 INDUSTRY PROFILE

INTRODUCTION OF INSURANCE

The business of insurance is related to the protection of the economic values of assets. Every
asset has a value.
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. The benefit may be an income or
some thing else. It is a benefit because it meets some of his needs. In the case of a factory or a
cow, the product generated by is sold and income generated. In the case of a motor car, it
-provides comfort and convenience in transportation. There "is no direct income.
Thus, he makes sure that the Value or income is not lost. However, the asset may get Earlier.
An accident or some other unfortunate event may destroy it or make it non- functional. In that
case those deriving benefits there from would be pried of the benefit and the planned
substitute would. l have been ready. There is an adverse or unpleasant tuition. Insurance is a
mechanism that helps to reduce effect of such adverse situations.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather in 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 or because
of bad weather spoiling the goods or sinking the ship. The first insurance policy was issued
in 1583 in England. In India' insurance began in 1870 with life insurance being: transacted
by an English company, the European and the Albert. The first Indian insurance company
was the “Bombay Mutual Assurance Society Ltd”, formed in 1870. This was followed by
the Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the Empire of India in 1897.
Later, the Hindusthan Cooperative was formed in Calcutta, the United India in Madras, the
Bombay Life ill Bombay, the National in Calcutta, the New India in Bombay, and the upiter
in Bombay and the Lakshmi in New Delhi. These were all Indian companies, started as a
result of the swadeshi movement in the early 1900s. By the year 1956, when the life insurance
business was nationalizes and the Life Insurance Corporation of India (LIC) war formed on 1
1st September 1956, there were 170 companies and 75 provident fund societies transacting
life insurance 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 31.3.2002,
eleven new insurers had been registered and had begun to transact life insurance business in
India.

PURPOSE & NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental insurances.
Such possible occurrences like Fire, floods, breakdowns, lightning, earthquakes, etc, are
perils. If such perils can cause damage to the asset, we say that the asset is exposed to risk.
Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a
building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees,
depending on the cost of the buildings and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or may
not happen. Insurance is .one against the contingency that it may happen. There are to be
an uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there is
no certainty about the occurrence of an event, it cannot be lured against. In the case of a
human being, death is retain, but the time of death is uncertain. In the case of a resin that is
terminally ill, the time of death is not certain, though not exactly known. He cannot be
insured.

Insurance does not protect the asset. It does not prevent its vale due to the peril. The peril
cannot be avoided through insurance. The peril can sometimes be avoided, through better
safety and damage control management. Insurance only tries to reduce the impact of the
risk on the owner of e asset and those who depend on that asset.
Only economic consequences can be insured. If the loss is the financial, insurance
may not be possible. Examples of economic losses are love and affection of parents,
 leadership of managers, sentimental attachments to family, innovative and creative
abilities, etc.

ADVANTAGES OF LIFE INSURANCE

 Life insurance has no competition from any other business.

 Many people think that life insurance is an investment or a means of saving.

 When a person saves, the amount of funds available at any time is equal to the amount of
money set aside in the past, plus interest.

 This is so in a fixed deposit in the bank, in national savings certificates, in mutual funds and
all other savings instruments.

 If the money is invested in buying shares and stocks, there is the risk of the money being
lost in the fluctuations of the stock market.

 Even if there is no loss, the available money at any time is the amount invested plus
appreciation.

 In life insurance, however, the fund available is not the total of the savings already made
(premiums paid), but the amount one wished to have at the end’ of the savings period
(which is the next 20 or 30 years).
. There is a certain amount of compulsion to go though the plan of savings. In other
forms, if one changes the original plan of savings, there is no loss. In insurance, there is a
loss.
 Creditors cannot claim the life insurance moneys. They can be protected against
attachments by courts.
 There are tax benefits, both in income tax and in capital gains
 Marketability and liquidity are better. A life insurance policy is property and can be
transferred or mortgaged. Loans can be raised against the policy.
COMPANIES OF INSURNACE INDUSTRY

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

Number

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 Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

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 Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 MetLife India Insurance Company Pvt. Ltd.

SBI VISION
To make SBI the dominant Life and Pensions player built on trust by world-class people and
service.

STRATEGY this we hope to achieve by:

 Understanding the needs of customers and offering them superior products and
service
 Leveraging technology to service customers quickly, efficiently and conveniently
 Developing and implementing superior risk management and investment strategies
to offer sustainable and stable returns to our policyholders
 Providing an enabling environment to foster growth and learning for our employees
 And above all, building transparency in all our dealings.

COMPANY VALUES
The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes
what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play
a significant role in redefining and reshaping the sector. Given the quality of our parentage
and the commitment of our team, there are no limits to our growth.

COMPANY PROFILE
SBI Life Insurance is the 3rd largest private life insurance company in the country, with total
premium income exceeding Rs. 1000 crore in 2005-06, and the first to declare a profit after
just 5 years in operation. SBI Life is a joint venture of SBI, India's largest and most trusted
bank for 200 years, and Cardiff, the insurance arm of BNP Paribas with global expertise. We
take pride in our track record of growth, financial solidity, ethical practices, domain expertise,
and meritocratic culture. Expect a rewarding and an enriching career when you join us. We
invite candidates with strong interpersonal and communication skills, and with a will to excel,
to join us:

SBI Life Insurance

- leading private life insurance company of India

SBI Life Insurance Company is a joint venture between SBI Bank, a premier financial
powerhouse and prudential plc, a leading international financial services group headquartered
in the United Kingdom. SBI was amongst the first private sector insurance companies to
begin operations in

December 2000 after receiving approval from Insurance Regulatory Development Authority
(IRDA).SBI equity base stands at Rs. 675 crore with SBI Bank and Prudential plc holding
74% and 26% stake respectively. In the year ended March 31, 2004, the company had issued
over 430,000 policies, for a total sum assured of over Rs 8,000 crore and premium income in
excess of Rs. 980 crore. Today the company is the #1 private life insurers in the country.

ORGANIZATION PROFILE
SBI BANK CARDIDFF

Alliance

SBI LIFE
INSURANCE CO. LTD.

ORGANIZATION STRUCTURE
TOP MANAGEMENT
INVESTMENT SALES OPERATION
DEPARTMENT DEPARTMENT DEPARTMENT

FUNDS MANAGERS AREA OPERATION

MANAGER MANAGER

AGENCY OPERATION
MANAGER STAFF

ADVISORS

PROJECT
 RECRUITMENT FOR THE POST OF
INSURANCE ADVISOR IN SBI

INSURANCE AGENCY AS A CAREER

INSURANCE AGENCY AS A CAREER

Defination of an agent
Insurance agent is one who acts on behalf of another. The another' on whose behalf the
agent acts, is called the Principal. This is the simple definition. The lawyer is the agent of
the client, when he argues the case in court. An ambassador is an agent of his country.
.According to Section 182 of the Indian Contracts Act, an agent is a person employed to do
any act for another or represent another in dealing with a third person. The person for whom
such act is done or who is so represented called the 'principal'. In the insurance industry, the
term ‘Agent’ is ordinarily applied to a person engaged by the insurer to procure new
business.
Under Section 183 of the Contracts Act, any person who is a major, according to the law to
which he is subject, and' who is of sound mind, can employ an agent. Section 1841 provides

that as between the principal and third persons" any person may become an agent. Thus,
though a minor may be employed as an agent and the principal would be; bound by his
actions, the minor himself will not be liable to his principle.

METHODS OF REMUNERATING AGENTS

A life insurance agent works on commission basis. He is paid a stated percentage of the
premium collected through his agency. Section 40A (1) of the Insurance Act stipulates that the
maximum amount which can be paid to a life insurance agent, by way of commission or
remuneration in any form, shall be. 35% of the first year's premium, 7 1/2 % of the second
and third year's renewal premium and 5% of subsequent renewal premium.
There are some exceptions to this. During the first ten years of the insurer's business, he may
pay 40% instead of 35 % of first year's premium. Under certain circumstances, commission
of 6% can be paid on the renewal premium even beyond the third year. Within these limits,
the manner of remunerating the agent will be determined by to the insurer all the true facts
about the prospect and the subject of insurance. He should not mislead either.

PROCEDURE FOR BECOMING AN AGENT

The Insurance Act, 1938 lays down that an insurance agent must possess a licence under
Section 42 of that Act. The licence is to be issued by the IRDA. The IRDA has authorized
designated persons, in each insurance company, to issue the licences on behalf of the IRDA.
The fee for the licence, the manner of making an application, etc., have been described in the
IRDA Regulations.
A licence issued by the IRDA will be valid for three years. The licence may be to act as an
agent for a life insurer, for a general insurer or as a "composite insurance agent"
working for a life insurer as well as a general insurer. No agent is allowed to work for more
than one life insurer or more then our general insurer.
The qualifications necessary before a licence can be given are that the person (individual or
corporate insurance executive) must be at least 18 years old have passed at least the 12th
standard or equivalent examination, if he is to be appointed in a place with Population of 5000
or more, or 10th standard otherwise have undergone practical training for at" least 100 hours
in life or general insurance business, as the case may be, from 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 150 hours practical training in life ~d
general insurance business, which may be spread over six to eight weeks.
He has to pass the pre-recruitment examination conducted by the Insurance Institute of India
or any other examination any recognized by the IRDA.

A person with the following disqualifications is debarred from holding a license:-

 He has been found to be of unsound mind by a court of competent jurisdiction.

 He has been found guilty of criminal breach of trust, misappropriation, cheating,

forgery or abetment or attempt to commit any such offence.

 The licence once issued, can be cancelled whenever the person acquires a
disqualification.

An applications for renewal have to make at least thirty days before the expiry of the
licence, along with 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 licence, an additional fee
of Rs. l00 is payable. If the application is made after the date of expiry, it would be
normally be refused.
The licence 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 licence,
along with 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 licence, an additional fee of
Rs.l 00 is payable. If (he application is made after the date of expiry, it would be normally
be refused.

ROLE OF INSURANCE AGENT

An insurance agent is defined in the Insurance Act. He requires a licence to be able to

function as an agent. He is remunerated by way of commissions on the premium paid under
policies procured through his efforts. Insurance designate agents differently like consultants,
advisors and so on. The designations do not matter. He is the main component of the
distribution channel for the life insurance business.
A life insurance agent would be required to solicit and procure new life insurance business, in
a manner that is consistent with the interests of the policyholders and the insurance company.
For this purpose, he would ha to do the following.

 Contact prospects for life insurance, study their neo and persuade them to buy.
 Complete all related formalities, including filling proposal forms, collecting
premium, arrange medical examination, collecting proofs (of age, income),
reports and other information required the underwriter.
After having sold a new insurance policy, the agent has to ensure that the policy continues,
without a lapse, till becomes a claim. The conservation of the policy is in interests of all the
three persons concerned, the insurer, policyholder and the agent. For this purpose, he has to,
 Keep in touch with the policyholder to make sure that renewal premiums are paid
in time.
  Ensure that nominations - are made or changed according to changing
circumstances.
 Assist in settlement of the claim, by helping the claimants to complete the
necessary formalities and requirements.
The other function is to be of assistance to the. policyholder in case he needs a loan under the
policy or wants to make an assignment. These services strengthen the relationship between
the agent and the policyholder

ELLING INSURANCE
 PRE-APPROACH
 APPROACH
 INTERVIEW
 OBJECTION
 CLOSE

PRE-APPROACH
Pre-approach means preparing to approach the prospect. The requires forming some idea as to
how the interview could begin and proceed, for which you require basic information
regarding his income, his habits, his concerns, his interests, .his saving capacity, his family
position, etc .These facts can be had from a variety of sources, and you may even have to
make a personal call on the man himself, and get from him the facts you need to persuade him
in taking a decision. If such a call is made, the proposal for insurance is not made at that
stage, although in some circumstances a pre-approach call may develop further end with the
proposal and cheque.
The information collected during pre-approach will provide a reasonable idea of the
prospect's financial position and his needs and concerns, and help to make a tentative
recommendation of a plan. If you make the sale first in your mind, you will find it easy to
make the sale to the prospect.
It is advisable to write down the proposal. The advantages of a written proposal are
1. Details are not missed by either the agent or the prospect.
2. The impression is more lasting.
3. The prospect can go back to earlier data on his own. The prospect can understand, at
 his own pace.
4. It is easy to stop at any point, clarify questions and continue further without losing 4the
trend.

APPROACH

When you knock on the prospect's door and are face to face with him, the dynamic phase of
sales begins. You should make known to the prospect, at the very earliest that you are calling
on him for life insurance. Then' is no need to hesitate on this or to 'feel apologetic. The agent
has to believe that he is calling on the prospect to render him the valuable service of ensuring
financial security for him and his family.
The agent should open the talk by explaining the purpose of his call in such a way so as to
arouse enough interest Otherwise, he may not pay attention to the proposal. In most of the
cases, the situation may arise where the prospect will come out with a 'No'. At this juncture or
approach, when the prospect says 'No', the agent should not be in a hurry to convert the 'No'
into 'Yes'. The purpose of the approach stage is not to sell insurance, but to sell an interview,
which gives him the opportunity 11 talks about what he wants the prospect to think about.

INTERVIEW
The interview should first of all, make the prospect listen. This happens if the agent refers
to things which interest him, his needs, or things that matter to him, without making it
appear like patronising or flattering. Any hint that the prospect's decisions of the past
(relating insurance or investments) were not appropriate or need to be changed, will have
the opposite effect. The proposal being made by the agent should be seen as beneficial and
complimentary to the existing arrangement.
The agent should follow some simple rules like the ones mentioned below
1. Do not talk more than necessary.
2. Ask questions, and make the prospect talk. Make it interactive.
3. Create doubts and get him to ask questions clarification.
4. Listen to the prospect's point of view carefully, not interrupt, contradict or argue.
People feel when they are listened to and then they listen better.
5. Make your talk interesting. Tell a true story of how life insurance has helped families
 in various situations and how families have suffered without it. Make the story have a
personal appeal. Use names of his children or relatives. That will make the story more
appealing.
6. Use pictorial aids, graphics and written presentations. If you have a lap top use Power
Point presentation.
7. Let the prospect write down the figures of his needs, of his liabilities, of benefits of
the insurance plan and of the premium. This ensures concentrated attention. Let your
advice be in the best interest of the prospect, not your interest.

OBJECTION
Prospects will raise objections, one after another. Objections are a part of every sale. If
prospects did not object, there would be no need for salesmen. People would buy on their
own. Also, if the prospect remained, silent, you will not know how his mind is working. The
objection is his way of referring to the further information that he needs.

CLOSING
The 'close' has to be sensed and timed, because very few prospects will, of their own accord,
say 'I will insure'. The agent sensing the close , takes the prospect's positive decision for
granted by asking for his implied (not direct) consent. "Will you pay the premium by cash or
cheque?", "Do you have your school certificate at hand now or can you give it tomorrow?"
(affirmative choice). A positive answer to any of these questions is an indication to go ahead.
If the interview does not end with a close and is put off to another time, the interview will
have to be gone through an over again.

PERSONAL DEVELOPMENT
This topic' deals with the development of an agent who is an individual, not a company or
firm. In the case of the latter, this topic would be relevant for the director or partner or any
other employee who may be performing the functions of meeting prospects, persuading them,
etc.
Personal development would result in. enhancing one's capabilities to function as an agent.
This would be measured partly by the business that is done and the commission that is
~

earned. It is also to be measured in terms of the reputation that the person enjoys in the
market. Agents can be spoken of well, as a person 'who knows, who can be trusted to look
after the customer's interests, who does not mislead, who is nice to deal with and so on. It is
such reputations that help one to collect more and more references from satisfied
policyholders and thus expand one's circle of contacts.

PRODECT KNOWLADGE
The primary requirement is to become' quite conversant with the product that one sells. In
i

other words, product knowledge is important.' Product knowledge does not end with
knowing the broad terms and conditions of the various plans of insurance. One has to be
aware of the possible drawbacks in the policy, the tax implications, the fit with the client’s
needs, the extent to which the client has to take precautions so that the benefits may not be
lost and so on. The agent must have knowledge of all the products offered by the insurer for
whom he works, and not merely of the few which are most frequently sold.

CUSTOMER ORIENTATION
An agent is a professional, in the sense that there is a body of specialized knowledge that has
to be studied an mastered. He is also a businessman. As a professional he has to keep his
client's interests in mind and not hi personal gains from a transaction. As a businessman, he is
concerned with the money that he makes from the transaction. The experience of highly
successful agents i that if the client's interests are taken care of and they al1 satisfied, one's
business tends to grow steadily. There is no conflict between the two. Both go hand in hand.
Customers are entitled to full information from those who provide services. This
requirement, the right information is enshrined in the “Consumer Protection Act” The law
is only stating a principle which every successful salesman practices. In the case of life
insurance the person representing the insurer and having the responsibility inform the
consumer, is the agent. Before the agent can inform the consumer, he has to be informed
himself. "That is why it is repeatedly pointed out that product know It'" is important.
PERSONAL GROWTH
Agents may have personal goals, like wanting to rise in the hierarchy of the company. Some
companies do provide opportunities for agents to accept higher responsibilities. One might
like to become a senior agent, helping newcomers in the field. Some senior agents make it a
point to attend seminars, workshops and conferences. They meet others in the profession. The
benefit is mutual. They receive as well as .give, as experiences differ and are unique.
Professional agents set aside both funds as well as time for such purposes. The pay-off is
high, although not immediately visible.

RECORD AND REVIEW

Every individual has to manage himself well. Salesmanship, which the agent will master in
course of time, is different from management. One does not have to be appointed as a
manager in a company to learn management. Management' is nothing more than using one's
resources well, in order to achieve the desired results. This implies that one has to always look
al whether one is getting or not getting what one is trying to get (goals) and also whether one
is utilizing one’s resources properly.

A good manager continuously' finds ways to improve the utilization of his resources. The
resources include skills, knowledge, materials, money and time. If one is able to get at one's
goal with lesser expenditure of resources, there is improvement. If the distances traveled per
call reduce, as a result of better scheduling of the movements, there is improvement. If there is
a reduction in the number of hours or calls required to complete a sale, there is improvement.
Like this, a number of inputs can be monitored and ways found to improve both efficiency
and effectiveness. To be able to do so, one has to maintain a record of one's activities and
analyze the same periodically. The maintenance of detailed records is, therefore, the first step
to good management of oneself.

TIME MANAGEMENT
One of the resources of any professional is 'Time'. Time is an input in work. The time taken to
do anything is an indicator of the skill of the doer. Novices take more time than an expert to
do the same job. One of the indicators of the professional development of an agent would be
the time he takes to do various activities as an agent, to get an appointment, to explain a point,
to conclude a sale. Time is necessary also for personal development, to read book and
journals, to do physical exercises, to unwind and relax, to attend spiritual discourses, to reflect
on ‘one' , behavior to introspect.
There are 'many things to do and time is required to do them. Many people say that they do
find time to do what they know is important, but has not been done. Many people are so busy
at work, that they do not have enough time to spend with the family. Many people manage
find time for everything, including relaxing. The time available is the same for everybody, 24
hours a day: How well are we using the available time? This question can be answered only
by each person himself.
Some of the ways in which people waste time are

 Having to do a job again because it was done wrongly. Correcting mistakes in a

job wrongly done takes more time than doing it right the first time. This is so in
arithmetic and in cooking.
 After embarking on a job, we find that the available information is either not
adequate or not relevant and the job has to wait till that information is obtained.
 Searching for things that have been misplaced or not kept in its proper place.
 Indecisiveness- inability to make up one's mind and keeping on changing one's plan.
 Attempts to be perfect. This leads to doing and redoing. It is not necessary to be
perfect.

TARGET MARKET
A good agent has to be clear about the market he is working in. For an insurance agent, the
whole world is potential market. But no one agent can insure the whole world. While the
whole world is the total potential market it is in fact several markets with distinctly different
need, and characteristics. The very rich have different need, compared to the middle class
salary earner. The young have different needs compared to the elderly. Working women with
dependents have different needs compared hi housewives. Thus, when the total market is
viewed in terms of needs, it will break up into a number of smaller segments.
The target-markets /segments may be identified in term of geographical location (residence or
office), age, occupation, religion, social status, income levels, family size, or business size,
nature of business, technology products, etc. Each, segment has to be approached in different
way. Agents tend to specialized in specific segments of the market. One big advantage in
doing so, that the agent acquires knowledge in depth of that segment and is also known within
that segment. Referrals become easier.
The segment in which an agent operates is called target market / segment. An agent may
have more then one target segment. One agent may be working only within one
department of government, like the police department or one big company with a salary
savings scheme, because he finds that the earnings from source are adequate and it takes
almost all his time servicing the policyholders.

TRUSTWORTHYNESS
An agent sells himself before he sells his product. This may be true in the many cases but is
particularly true in the case of life insurance, because of the very intangible nature of the
product as well as the long-term commitment. The customer buys mainly because he believes
the statements and promises made by the agent. He believes them as if they are promises
made on behalf of the insurance company. He is buying the promise. Whether he bought the
right thing or not, will be known only in the future, when the promises are to be redeemed.
That is the time of the claim. If an agent has to succeed professionally, he has to continue to
enjoy the trust of the, policyholder

LONG TERM RELATIONSHIP

An agent has to strive towards building long term relationships with the policyholders. Many
techniques can be suggested, but all of them depend on one simple principle. The other
person has to feel important and not slighted. He has to feel that his concerns are uppermost in
the agent's mind. The essential requirement is sensitivity to the other person's feelings and
genuine concern for his needs. If there is no genuine concern, the relationship cannot become
strong.
The following may help to build relationships

 An attitude that seeks to help.

 A voiding the slightest hint that the customer is ignorant or is at fault.

  Trying to understand the customer. The slogan 'The customer is always right' does not
mean that his contention or behavior is always right. It means that always, there is a
justification for his behavior or contention. If that is understood, it helps a lot to keep
him satisfied.
 Listening to what the customer says. People feel good when they are listened to. Listen
to the substance, not the words or manners. If he is angry, ignore the anger
and "listen", or pay attention, to the cause of the anger.

MOTIVATION
An agent is an independent professional. He can not wait for someone else to come along
and persuade him action. Others will demand that he perform. He has to feel the urge and
drive to perform. Otherwise he will not do. When a person feels the urge and drive to do, he
is said be motivated.
Why should an agent want to perform? Why should he be motivated? What are his needs to
be fulfilled? None of these answers would be the same for all agents. Even the need for
money may not be the first need for all agents. The need for money will lead one to complete
more and more business. Some agents may want to be counted among the top agents of the
branch or the insurer or the entire country. That may also lead them to do more and more
business. Some may want to be known as the most knowledgeable. That will lead them to
invest time and money in learning, attending lectures and seminars, etc. That same
motivation may also lead some to help and train newcomers into the profession, to write
books and articles based on one's experience. Some may want to build long-term
relationships with the customers. That will lead them to find justifications to call on the
customers as frequently as possible. Some agents may want to be known as financial
consultants providing total financial services to their clients. This may lead. them to link up,
through networks or otherwise, with stock brokers, security analysts and tax experts, offering
mutual funds, new issues, portfolio management, etc.
Motivations can be varied. The effort to learn and do well ay come also from a motivation to
avoid being among e non-performers. Some agents are driven by the need to be of help to the
community, on matters not directly connected to insurance. That motivation may lead lo u lot
if insurance business coming his way because of the high esteem in which he is held by the
community in which he operates.
MORAL
Customer buys because he trusts the agent and his promises. It implies that the behavior of
the agent has to be one that exudes confidence and positive thoughts about the insurance
company and its offerings. This is possible only if the agent feels good about his profession
and his business.
If he does not feel good, his disappointments and frustrations will be sensed in his voice and
manners and that will harm the process of sales. Feeling good or not good about one's work is
a question of morale or enthusiasm about work. If an agent is convinced that he is in a noble
profession that looks after the welfare of people and their families as nothing else can do, he
cannot but feel good about his work. To keep up his morale, he has only to say to himself that
his is a job that brings cheer. An others at a time, when a whole lot of circumstances have
conspired to take away that cheer. An eminently successful life insurance agent had said that
his commitment to the job became firm when one of his policyholders died young and he saw
that the widow was surrounded by people - erstwhile friends demanding payment of
outstanding bills and mortgages. He was the only one offering to pay her. How can such an
experience of joy in the widow's face, be anything but uplifting?
Apart from the nature of the business of insurance, the agent must also feel confident that
he is in a position I render effective service to his policyholders. It is possible that
sometimes something may go wrong in the insurance office. The agent is in a position to
make sure that the effects of that error do not reach the policyholder. Good agents with
adequate records can insulate their policyholders from the office, so that they experience
only the positive aspects about the service and claim settlement procedures. Customer
satisfaction and agent's morale will both be high as a consequence.

COMMUNICATION SKILL
Communication is normally understood to refer to the information that one has to send to
another, through words or symbols or pictures, in writing or verbally. Because of its
importance in commercial and private life the process of communication has been studied
and written about extensively.
An agent's main tool at work is his communication skills. He has to explain and to persuade.
Any misunderstanding might become evident only much later. It will then be attributed to the
failure of the agent to inform, alleging even deliberate cheating or suppression of material
facts. Good effective agents make written presentations about their recommendations for
insurance, pointing out both benefits and pitfalls. The written matter is explained during the
sales interview. A further explanation will take place when the policy delivered to the policy
holder.

SEVEN C’S OF GOOD COMMUNICATION SKILL

 Completeness: - Stating all essential facts, anticipating and answering all possible
doubt.
 Courtesy: - Pleasantly worded, meant to gain goodwill, requesting instead of
commanding.

 Consideration: - Keeping in mind the reader’s interest and level of understanding.
 Clarity: - Using simple familiars words short sentences, avoiding technical jargon
and uncommon abbreviations.
 Conciseness: - Avoiding superfluous and redundant expression.
 Concreteness: - Avoiding complicated imagery and saying directly, leaving no
room for imagination.
 Correctness: - Particularly with number, dates and references.
SOME POPULAR INSURANCE PLAN

All insurers do not offer all plans. The same plan may be called by different name by
insurers. The variations between insurers are plenty. It is not possible to give details of all the
plans offered by all the insurers, mainly because insurers make change in their offers or
practices from time to time. If a reference is made to a plan of any particular I insurer the
accuracy of the information is not to be taken granted.

1. HORIZON II PENSION

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE

POLICYHOLDER

Introduction
A unique Unit Linked Pension Plan that will enable you to build a kitty good enough to
enable you to spend a peaceful and financially sound Retired life!
Horizon II Pension is a safe and a hassle free way to get high returns! Horizon II Pension
comes with the unique feature of Automatic Asset Allocation by means of which you truly,
don’t need to be an expert to grow your money!

Key Features:
Horizon II Pension is the simplest unit linked pension plan; all you need to do is:
o Choose your retirement date, the plan option and the regular premium amount.
o Based on the plan option and the term opted, SBI Life will invest your money
in three different funds viz., Equity Pension Fund, Bond Pension Fund and
Money Market Pension Fund.
o The funds are invested keeping in mind the term opted for and your money is
invested in safer funds as your policy approaches maturity.
  Available with two options:
o Pure Pension
o Pension cum Life Cover
 No medical required to enroll for Pure Pension
 Save tax upto Rs.33,600*/- p.a. u/s 80 CCC (1) of IT Act.
 Facility of top up available to boost your retirement kitty anytime during the policy
term.

No premium allocation charges from year 11 onwards.

*For highest tax bracket. Consult your tax advisor for details

 Unit Plus Bond Fund portfolio details as on 31 march 2007

Money market instrument 63.99 %

Government securities 32.05%
Corporate sector 30.96%
SBI Life Insurance Company is a 74: 26 Joint venture between SBI and Cardiff S.A. The
company was registered on 31/3/2001.It is a private sector company. The market share for the
first eight months of FY 2005-06 is 1.52%.
2.Unit Plus II Pension (UIN No: 111L032V01)

In this policy, the investment risk in investment portfolio is borne by the policyholder i

Introduction

We at SBI Life understand the basic needs for pension plan and give you financial strength to
maintain your life style even after the retirement. Unit Plus II Pension plan makes sure that
you have regular income after you retire and also helps you to maintain your standard of
living.

This is a unit linked pension plan wherein the policyholder chooses an investment period from
5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single
premium or pay regular premium for the entire policy term. Your contributions are invested
into 4 fund options as per your choice. P
O
Key Features
LICYHOLDER
 Choice to invest & control four different funds as per your risk appetite.
 Flexibility to choose between two options
o Pure Pension
o Pension cum Life Cover
 No medical required for Pure Pension, automatic acceptance facility.
 Save tax upto Rs.33,600/-* p.a. u/s 80 CCC (1) of IT Act.
 Flexibility to increase regular contribution.
 Top up payments: any amount, anytime.
Customize your plan by adding riders.

3.Unit Plus -II Plans

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS

BORNE BY THE POLICYHOLDER
It may be difficult to understand all your needs but as your preferred life insurance company,
SBI Life definitely understands all your financial & insurance needs. Unit Plus II Plans are
an attempt to meet all your financial & insurance needs through a single non participating
product. You can use it the way you like. What’s more you get market linked returns which in
the long term has always proved to give better returns than traditional savings products.
SBI Life Unit Plus II Plans: 2 plans depending on your premium mode:
1. Single Premium Mode : Unit Plus II Single
2. Regular Premium Mode : Unit Plus II Regular

4. Horizon- II (UIN No: 111L027V01)

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE

POLICYHOLDER
 Introduction

SBI Life’s HORIZON II is a unique, non participating Unit Linked Insurance Plan in Indian
Insurance Industry, where you need not to be a financial market expert. This plan offers the flexibility
of Unit Linked Plan along with Automatic Asset Allocation which provides relatively higher returns
on your money where as increasing death benefits provides higher security to your family.

Unique Features:

 Automatic Asset Allocation: HORIZON II comes with the unique feature of

Automatic Asset Allocation by means of which you truly, don’t need to be an expert to
grow your money! HORIZON II as a concept is formulated in association with our
partner Cardiff SA of France who has rich expertise in the arena of Unit Linked
Plans. This expertise has been customized for India to make sure that you get the
maximum from your investments. HORIZON II is a non participating plan.
 Increasing Death Benefit: For all in-force policies, in case of death after completion
of age 7 your nominee will receive Fund Value + Sum Assured otherwise Fund
Value is payable.

Key Features:
 Twin benefit of insurance cover and market linked returns
 Hassle-free investment management of funds from inception to maturity
 Automatic Asset Allocation of funds
 Automatic rebalancing of funds at yearly intervals, free of cost
 Higher protection, to meet your family financial needs.
 Automatic cover continuance
 Facility to top up your investment kitty
 Liquidity option after 3 years
5. LIFELONG PENSIONS (UIN No: 111N011V01)

Enjoy financial independence when you retire

Life expectancy is improving rapidly. People live longer. You cannot work throughout your
life. You will have to retire from work. In the post retirement period you have lot of time for
yourself. You would like to do things you have not done while you were working

You need to have a comprehensive plan to meet our post retirement financial needs ensuring
complete peace of mind.

To make your post retirement years truly golden, we at SBI Life introduce Lifelong
Pensions a unique Pension plan for your retirement days.

Advantages of the plan:

A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully deductible
from the taxable income (within the max. ceiling Rs. 1 lakh)

 Minimum Guaranteed returns of 4% p.a. (compounded annually) on your Personal

Pension Account (till 31st March 2010) + Vested bonus.
 It helps you to accumulate enough savings to meet the old age needs and look for a
reliable and enduring pension payment.
 It is an extremely flexible plan:
 Choice of the contribution amount you want depending on your premium
paying capacity
 You may exercise the Top-up facility whenever by paying additional amount
to increase your retirement kitty, irrespective of contribution payment mode.
 Choice of the choosing your own retirement age.
 Postponing/ Preponing to a convenient date, the decision for receiving the
Pension Benefits.
  Contribution holiday available from year 4 onwards
 The total/balance amount (after withdrawal from PPA, if any) can be utilized in
seeking immediate annuity
 Free to chose annuity from either SBI Life or other insurance companies

 At Vesting Age you have multiple choices of Pension/ Annuity options including Joint
Life Time Annuity.

 Rebates for Annual, Semi- Annual mode of premium and on high Contribution
amount. Enjoy financial independence when you retire.

15 days Free Look Period from the date on which you receive the policy documents.

6. Sudarshan
UIN No: 111N008V01)
An Endowment Policy

Sudarshan is an Endowment Policy designed to provide savings and protection to you and
your family. You can save regularly for the future. Thus at the end of the plan, you will
receive a substantial amount of savings along with the accumulated bonuses declared. At the
same time, your family will be protected for death risk for the full Sum Assured.

'Sudarshan' is available under two Plans.

 Fixed Sum Assured (Plan A): Fixed amount of cover for the entire duration of the
plan
 Increasing Sum Assured (Plan B): Increasing amount of cover every year for the
entire duration of the plan with level premium.
In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term
Assurance Cover, Accidental Death and Accidental Total Permanent Disability Cover
and Critical Illness Covers by paying nominal additional premiums.

This Scheme is ideal for you:

 If you intend to provide for your children's future education, marriage expenses or
even your own retirement - in a most flexible manner.
 If you look for an insurance plan which could also act as a hedging instrument.

If you want to provide for medical expenses. If you have to unfortunately face any of the
terminal or dreaded illnesses.

LIFE INSURANCE MARKETING

The purpose of all business is to create and retain customers. Without customers, there can be
no business. Customers do not come on their own. They have to become aware of the
availability of the goods or services on offer. Awareness is not enough. It must be convenient
to access the offer. The cost must be seen to be reasonable for the benefit offered. An excellent
product does not guarantee that sales will happen, unless people interested in that product
come to know about it and find that the effort to get it is not too taxing. They will continue as
customers when they are satisfied with what they have got. Business, therefore, has to inform
the likely customers through media that reach them, make the goods and services available at
convenient outlets and ensure that the customers experience satisfactions while using them.
Marketing is the activity that comprises of all these. It focuses on the customer.
The marketer asks questions like what do people buy, why do they buy (what are the needs),
when and where do they buy, how do they buy, how much are they prepared to pay, what are
their preferences and priorities, what do they look for while buying, what are their concerns,
etc. The products and the distributions are then designed in ways that try to match these
requirements. Studies over the years have developed ideas and concepts that help marketers
become more effective in their function.
Marketing concepts relevant to tangible products like.' motor cars, refrigerators and
cosmetics are not entirely applicable to the service businesses, like hotels, finance, health
care, credit cards or travel. Every service is different. The needs of their customers are
different. The ways of producing the services are different. Every service is catering' to a
different kind of need and is different in the internal dynamics of making the service
available. Those entering a disco parlour are totally different from those entering a casualty
department of a hospital. The two places cannot have the same ambience. 'Even in insurance,
life is different from general.

THE DISTRIBUTION CHANNEL

A distribution channel is the route by which the product (or offer) prepared by the
producer reaches the ultimate consumer (or buyer). The distribution channel bridges the
distance between the producer'(point of manufacture) and the consumer (point of sale). In
the case of goods, the 'product manufactured in the factory passes through wholesalers,
stockists and retailers, before it reaches the consumer. In the case of life insurance, the agent
is the primary component of the distribution channel.
Another method being attempted is the use of the extensive network of branches of banks.
The customers of both banks and life insurers, are practically from the same segments of
population. Through the same contact, the prospect can be helped to arrange for' both bank
deposit. A and life insurance There would be saving in infrastructure costs and overheads.
New insurers find this an easy way to access vast areas. It may be possible to develop
composite products having the elements of both life insurance and banking. These trends
have to develop.

SOLD, NOT BOUGHT

Life insurance is not bought by anybody. General insurance is often bought because there is
compulsion under the law (motor vehicles) or from the financers asking for insurance as
collateral security. In the case c life insurance, there is very little compulsion. The tendency
is to defer the decision. The possibility of death is either ignored or not considered imminent.
The requirements of today take priority over the requirement of tomorrow. Even if not
absolutely 'essential, till requirements of today seem to be more compelling. Tomorrow
never comes.
Superstitious beliefs and cultural or religious background often interfere with the process. of
considering usefulness of life' insurance. There is also a tendency leave everything to. fate.
There are notions about I insurance not being a good investment (yields are low, money after
20 years is worth much less) and so on. By the time someone realizes himself \ the need for
life insurance, the chances are that he may not be in the hest of health and the insurer may
have doubts about the insurability. Life insurance has to be had when in the hest of health.
Otherwise, the insurer will refuse to grant the insurance cover. In this complex milieu, people
need to be persuaded that there. is need to be concerned about the future and that life
insurance is a necessity, not an option. Insurance pas to be sold.

THE CUSTOMER
The service of life insurance happens at the time of claim, when people will experience how
the promises are being kept. Until then, it is a hope, a promise, the significance of which is
vague. The customer in life insurance is not only the person who bought the policy, but also
the person who is making the claim. He is the one experiencing the service. This difference is
not only in death claim cases. .Even in the case of a maturity claim, where the claimant is
same as the policyholder or life insured, the two mind sets are different. At the start, at the
buying stage, the mind set is one of anxiety and fear at the possibility of death and welfare of
the family. At the end, there could be, satisfaction that nothing untoward had happened, but
also there could be disappointment that the moneys could have been utilized elsewhere better.
.

STRENGTHENING RELATION
The agent is the main intermediary between the customer and the insurer. The customer agent
link is stronger the agent-company link (this tends to be impersonal which in turn, is stronger
than the customer-company link. Customer loyalty to the insurer depends on how strong the
agent's link with the customer is. A death claim provides a tremendous opportunity to
strengthen this link.
The agent is expected to keep in constant touch .with policyholders to become are of the
changes in situation including marriages, deaths of relatives, release of mortgages. Anyone of
them may necessitate so changes like title to policy moneys or more insurances. The contact
conveys a message that the agent cares for policyholder and the family. An agent who is seen
only the time the policy was bring bought, is likely to be perceived as selfish" not concerned
about policyholder's interests and therefore, not believed. The agent's show of concern could
also be interpreted as not genuine and therefore, his promises not very dependable.

FUNCTION OF AN AGENT
The agent's main function is to solicit and procure life insurance business for the insurer,
which has appointed him for that purpose. At the same time, he is trusted by the 'prospect to
advise him suitably keeping his circumstances and needs in mind. He is thus in the unique
role of a person trusted by both parties to the transaction. His functions would include.
 understand the prospect's needs and persuade him to buy a plan of life insurance that
suits his interests best.
 complete the formalities (paper work, medical examination) 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 alterations.
1. facilitate quick settlement of claims.
2. Be totally honest with both the prospect and the insurer.
The Regulations framed by the IRDA lay down a code of conduct which incorporates
some of these concepts.

 Identify himself and the insurance company of which he is an agent.

 Disclose the licence to the prospect on demand.

 Explain all available options to the prospect
 Recommend a suitable plan. taking into account the needs of the prospect
 Disclose the scales of commission, if asked for by the prospect
 Explain the nature and importance of the information required in the proposal form

 Impress upon the prospect the need to disclose all information.

 Make all enquiries about the prospect.

 Inform the insurer about any material facts, including habits that could adversely
affect the underwriting decision.

 Convey to the prospect about the acceptance or rejection of the proposal .

 Render necessary assistance to policyholders or claimants' or beneficiaries in

complying with requirements asked for by the insure.

 Advise policyholders to effect nomination.

 Make every attempt to ensure remittance of premium by the policyholders within the

stipulated time, by giving notice orally and in writing.

 Not to induce prospects to submit wrong information.

 Not to interfere with the proposals introduced by other insurance agents.

ADVERTISEMENT
Life insurance is rarely bought as a response to advertisements. Advertisements are effective.

 As renders to intimate change of address, pay premium, make nominations etc.

 As information on bonus declaration, special revival schemes, concessions, new plans,

etc.
 To build corporate image as financially strong, as responsible social citizen, etc.

The Regulations framed by the IRDA have made some stipulations about advertisements by
insurers as well as by intermediaries like agents. These stipulations apply to all messages in
the print and electronic media, hoardings, internet, leaflets, business cards, etc., that urge
others to buy life insurance. These stipulations, inter alia, state that:-
 Claims made about the benefits should not be beyond the ability of the policy
to deliver.
 Benefits described should match policy provisions words or phrases should not
be used in such a way as to hide or minimize the cost of hazards.
 Important exclusions, limitations and conditions of the contract should be
disclosed sufficiently.
 Information should not be misleading.
 Illustrations about future benefits or assumptions should not be unrealistic or
unrealizable in the light of current performance.

KEEPING CUSTOMERS HAPPY

A customer is satisfied when the product meets his need. In life insurance, this happens at the
time of the claim which is a long way off. It is important to keep him happy during this
period, to 'avoid what is called 'Cognitive Dissonance'. This arises because of doubts about
the decision to buy. In the case of life insurance, such doubt may easily arise because others
(friends and agents) will talk about better alternative plans, better insurers, and so on. The
only way to counter these possibilities is to be touch with the prospect and reassure him at
every possible opportunity that the purchase he made was not a mistake. In other words, the
agent will be effectively repeating the sales talk, overcoming objections, till the benefits are
seen through claims.
Studies show that people are happy when they are recognized and respected and not taken for
granted. Recognition happens when one's feelings, requirements etc, are understood and not
ignored. Agents can do a lot in terms of recognizing people. One way is to be available
whenever the prospect or the policyholder has a point for clarification. These may happen
during the policy term itself, when a change in job or place may raise doubts as to the effects
on the policy. Another way is to avoid denying the validity of his thoughts. There is nothing I

more demeaning than to be discredited for one's, ideas. This is important while handling
objections during a sale. Recognition is high when the thoughts of the other person are
anticipated and attended to.
Two other factors which make customers happy are responsiveness (willingness to help) and
Ease of Access. On both counts, agents can do much more than what the insurer's office can
do. It is difficult for an office to be warm and personalized when dealing with anybody. The
agent can. Some agents do not let the policyholders go to the office at all. They get everything
done. Such agents are reinforcing the impression that the agent is trustworthy and can be
depended upon to fulfill his promises. The image of the insurer remains high.

PREMIUMS AND BONUSES

What is premium ?

Premium is the consideration that the policyholder has to pay in order to secure the
benefits offered by the insurance company. It can be looked upon as the price of the
insurance .It may be a one-time payment. That is not in million. Often, it has to be paid
regularly over a period. A default in premium can endanger the continuance of the policy. If
that happen the policy will be lapsed and the expected benefits will not be Insurable.

Risk And Pure premium

Other risk premium would be adequate to pay the claims, if all the policies were term
assurance policies for one year', In the case of Endowment policies, claims have to be paid on
survival after some years. Therefore, the actual premium collected would have to be more
than the risk premium; to the extent of being able to pay the survival benefits, whenever
falling due. Here also, the mortality tables would be used to estimate the number of person!!
who may survive the terms.

The premiums collected by insurers are not utile send every year for payment of claims. This
is so for many reasons. One is that the real experience may not be exactly all indicated by the
mortality tables. Second, the portion of the premium is meant to meet survival benefits. The
balance premium remaining with the insurer will be invested and will earn some interest. To
the extent of the expected interest earnings, the premium charged can be reduced. The
premium worked out after taking into the account .the interest, is called the net premium or
pure premium.

LOADINGS
The administrative expenses of the insurer have to be met out of the premiums paid by the
policyholders. To this extent, the premium to be collected will be higher. Such additions to
the pure premium are called 'loadings'.
One of the loadings is due to administrative expenses. Loadings may be made for other
reasons as well. One of them would be for unexpected contingencies and fluctuations. A
major catastrophe like an earthquake or accident or riots or epidemic, can raise the number
of deaths to a much higher level than normal. The risk premium based on mortality tables
would be found to be Inadequate to meet catastrophic claims. Insurers, therefore, as a
matter of safety, provide for such negligence’s and fluctuations, by 'loading' the premium
suitably.
Bonus has to be given to participating policyholders. Bonus is declared out of the
surpluses determined after actuarial valuations. Surpluses, in a way, reflect the
profitability of the business or the quality of management of the business. Nevertheless,
insurers load premiums on account of the bonus. In practice the actual bonus declared
should be higher than the loading. otherwise, it would mean that the quality of the
management of the business leaves much to be desired.

LEVEL PREMIUMS

If it is expected that out of 10,000 persons at a specified age is likely to die within one
year, the mortality rate that age is said to be 0.01%. The risk premium Chargeable for
persons at that age would be Rs.O.1O per 1,000 sum assured. If a 'policy has a. term of 20
years, I risk premium and' therefore the premium charged would vary for each of the 20
years. Apart from being difficult to administer, the premium at later ages; towards, the end of
the policy term, would be very high. People would find this beyond their ability to pay. That
means they will be without the protection of insurance at times when they need it most. To
offset this problem, insurers spread the risk premium on a uniform basis, throughout the term
of the policy. Thus, the premium remains constant for 20 years. Such uniform premium is
called Level Premium. This implies that the premium collected in the early years of the
policy would be more than necessary for the risk, and less than necessary towards the latter
part of the policy.

OFFICE PRIMIUM

The premium figure arrived at after loading the net premium or pure premium, is called the
Office premium. They are now ready for use. The premium figures printed in the promotional
literature and brochures are the office premiums.

The actual premium to be charged in any one case would require further adjustments,
depending on the practice of the insurer. For example, the administrative costs are more if the
premium is paid every quarter or month, instead of once in a year. The number of renewal
notices and receipts to be issued and consequential accounting entries would vary according
to the mode. If the mode is yearly, the probability of default in the subsequent renewal
premium, to complete the year, does not arise. The insurer can utilize this amount for the
entire year and earn more interest than if the premium were paid in installments. Therefore,
the premium rates would have to be slightly increased or decreased depending on the
preferred mode of payment.

EXTRA PRIMIUM
Extra premiums may be charged on any particular policy. This may happen because of
the grant of some benefit in additional to the basic benefits under the plan, like accident
benifits or premium waiver benefit. Riders provide adadditional supplementary benefits. Extra
premium may become chargeable because of underwriting decisions. If the risk of the life to
be insured is assessed as more than normal because of health or because of nature of jobs or
habits, underwriters may charge extra premiums. These are usually stated as say, Rs. 2 per
thousand, and will be added to the premium otherwise chargeable.
CALCULATION OF AGE
The premium to be charged will vary according to the age! of the life assured. Premium
rates for each plan 0 assurance are calculated for each age. If, after the policy II issued, the
age is found to be different from the age state, in the proposal, the premium mentioned in the
policy will be changed from inception. Either the shortfall will be collected as arrears or the
excess will be refunded Insurers prefer to admit the age at the commencement of the policy.

Age has to be determined as on the date 01 commencement of the policy. As the

date of Commencement of the policy would not be the date of birth of the life insured, and
age has to be reckoned only in complete years, not months and days, three different methods
are followed by insurers. These are age next birthday, age fast birthday or age nearest
birthday. If a person is born on 20th August 1976, the age next birthday on 10'h July 2002
would be 26, the age last birthday would be 25 and the age nearest birthday would be 26.

PREMIUM CALCULATION
. The following illustrations are based on certain assumptions with regard to practices of
insurers. These assumptions are specified at the appropriate places. Whilo making
calculations for any policy, the practices of that insurer must be conformed to.

Step:- 1 Find out tabular premium i.e. Premium quoted in published premium rates for given age

(nearer, next or last birthday as the case may be) for the relevant plan and '1st term. This
premium is per thousand sum assured. Assume the figure is Rs. 45.60.

Step2 : Deduct adjustment for large sum assured, if applicable. Assuming that the insurer
allows rebates.

BONUS
The distribution of the valuation surplus to policyholder. is done through the declaration of
'Bonus'. Only policyholders who opt for 'Participating' or 'With profit' policies would be
entitled to bonus. Other policyholder .who have 'Non-participating' or 'Without Profit’
policies would be paying a slightly lesser amount of premium for the same kind of'

insurance cover, because of the factor of 'bonus loading' .

Bonus is declared in various ways. The most common method is the 'simple reversionary
bonus'. The amount or bonus, is added to the S.A. If the SA under the policy is Rs. 50000,
and. the bonus declared is Rs 60 per thousand SA or 6% of S.A., the SA under the policy
would become (' Rs. 53000 straightaway. If a similar bonus is declared the subsequent year,
the SA would become Rs. 56000.
A variety of practices are followed with regard to bonus. Some make the vesting of bonus
conditional on the policy , continuing to be in force throughout. In other words, it be
payable only on a claim arising, but not if the policy is terminated earlier for other reasons.
Sometimes, the bonus is made payable only on maturity. Sometimes, higher bonus is
declared for policies that have been in the books for a minimum number of years. Some
insurers use the bonus to be discounted and enchased
Immediately. Some insurers use the bonus to reduce the subsequent premiums.

All policies do not contribute equally to the generation of surplus . In the early years of a
policy, there would be very margin in the premium, after meeting the costs. The
Contribution would depend on how the premium adds to fund and that would differ
according to the plan, according to the age of the life insured or according to the term of the
policy. The actuary, makes an analysis of the elements that have generated the surplus in the
fund and to declare bonuses in such ways that compensate policyholders, according to the
contributions made by the different kind of policies. The attempt to be fair, however,
limitations, because the policies have necessarily to be grouped, for practical reasons.

INTERIM BONUS
 Bonus is usually declared on policies, which are in fori on the date of valuation. For
example, the bonus after 2nd valuation as on 31.3.2003 will be declared sometime I
September 2003 and will benefit holders of policies which were in force on 31.3.2003.
Policies which become claim after 31.3.2003 before the next results are announced I
September 2003, would not get the benefit of bonus although they have the right to
participate till the date claim. In order to overcome such anomalies, actuaries usually declare
'Interim Bonuses' payable on sue policies, which become claims between two valuations.

CLAIMS
A claim is the demand that the insurer should redeem the promise made in the contract. The
insurer has then to perform his part of the contract i.e. settle the claim, after satisfying
himself that all the conditions and requirements for settlement of claim have been complied.
In particular he should check
 Whether insured event has taken place?
 What are the obligations assumed under the contract, which are required to be
performed? These may be payment of bonus, payment of sum assured in installments,
waiver of future premiums, etc.
 Whether the policyholder has performed his part?, The policy status with regard to
premium position, age admission, outstanding loan & interest, survival benefits, if, any,
legal requirements such as under MWP Act, Foreign Exchange Regulations, report of
investigation, police reports, if any.
 Who. are the persons en'fitl0d to demand performance? Nomination / assignments/
income tax notice / prohibitory orders / official assignee's notice - are all relevant .

MATURITY CLAIMS
Under endowment type of policies, the SA is to be paid when. the term of the policy is over.
The date on which the term is complete, is the date of maturity and the settlement

of the SA on that date, is the maturity claim. The amount payable on maturity is the SA, less
any debts like loan and interest or outstanding premiums. To this bonuses, if any, would be
added, if it is a with-profit policy.
 Action on maturity claims is initiated by the insurer, based on the records showing the
policies that will mature every month. The insurer normally sends advance intimations to
the insured. The insurer has to satisfy that:-
1. There are no assignments
2. The identity of the policyholder is proved.
3. The age stands admitted.
4. The premiums are all paid (this is not required for a paid-up policy)
5. The original policy is handed in
The insurer is expected to make payment on the maturity date. Post-dated cheques are
normally sent a few days in advance of the maturity date, provided the discharge form

is received duly signed.

Sometimes, the original policy is reported to be lost. Caution is to be exercised to ensure that
there is no attempt to defraud. It could have been pledged elsewhere for a loan. But if the loss
seems to be genuine, it is possible to settle the claim on the basis of an indemnity and also, an
advertisement in the newspaper, as a precaution

Under MWP Act policies" the proceeds of the policy will be paid to the trustees. If there is no
trustee, the official trustees will step in. But if the beneficiaries are major and competent to
contract, payment can be made directly to them without the' intervention of trustees. The
policyholder is not expected to sign the discharge voucher.

In case of absolute assignment, the payment will be made to the assignee. If the assignment
is conditional, reverting to the life assured on maturity, payment can be made to the assured
himself. It will be prudent however, to check that the assignee has no outstanding claims.
Some maturity claims may be payable not on the date of maturity, but later; not as a lump
sum, but in installments. While the decision to settle may be taken on the date of
maturity, the settlement process will continue for a few years.

RESEARCH METHODLOGY
In this section of my project, the requirement is to describe the sources of collecting primary
and secondary data. For collecting primary data, method adopted was focus group method

Source of primary data

Natural market
1. Relative 2. Friends
3. Neighbour
Survey

Sources of secondary data

 Yellow pages
 Database of different company
 Telecalling Leads
 References data
Research – research in common refers to a search for knowledge. Once can also define
research as scientific and systematic search pertinent on a specific topic.
According to Clifford woody research comprises defining and redefining problem,
formulating hypothesis or suggested solution; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
Types of research;
1. Descriptive vs. analytical 2. Applied vs. fundamental
3. Quantitative vs. qualitative 4. Conceptual vs. empirical

My report used descriptive and analytical research:

Descriptive research includes surveys and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. In analytical research, on the other hand, the researcher has to used facts or
information already available, and analyze these to make a critical evaluation of the
material.

LIMITATION OF THE STUDY:

  As the movement throughout the city is not possible due to certain constraints so
the movement was quite restricted.
 People are not ready to go for training. As the training period is of 17 days and it
involves full day, so it becomes difficult for them to leave their offices and or shops
for such a long time.
 The compulsion of selling 12 policies in a year also restrict them for becoming
advisors. If they do not fulfill there target, their license is cancelled after one year.
 Lack of trust on any company in private sector.
 Lack of knowledge about the product of the company and the total blind faith on
LIC.
 Some time, fresh graduates want to become advisors but the company denies making
them an advisor as they are fickle-minded and also unreliable.
 There is a problem in targeting charted accountant. ICAI does not allow C.A to
become advisor.
 Some people do comparatively analysis with LIC.
 Some people consider fees 1000rs as a constraint.
 Non availability of Part-time training.
 One person cane not take two company agencies.
 Time constraints are the biggest problem in taking up the study.

SAMPALE SIZE: - 100

SAMPALE UNIT:- 100
RESEARCH PROCEDURE :- QUENTIONNAIRE
 ANALYSIS
&
INTERPRATATION
ANALYSIS & INTERPRATATION
 How many people interested in SBI life insurance? (According to Gender)

Man 80
Woman 20

 How many people interested in SBI life insurance?

Interested 67
Not interested 33

 How many people take policy?

Take policy 24%
Not take policy 76%

76%

80%
70%
60%
50%
24%
40% Series1
30%
20%
10%
0%
Take policy Not take
Policy

 People take deferent polices?

Unit Plus II Pension 44%

Unit Plus -II Plans 12%
Horizon- II 44%

Where deposits of the customers?

o FD 32% Securities 35%
o Mutual Fund 13% Insurance 20%
 Which features attractive you to be the advisor for SBI life insurance ?
1. GROWTH 2. COMPANY BRAND
3. WORKING ENVIRONMENT 4. JOB PROFILE

RECOMMEDATIONS / SUGGESTION
In order to survive in this era of cutthroat competition, it is very important for an organization
to give the best to its customers and the most reasonable price.
After going through the study on my project, I would like to come up with following
recommendations to the customers:
As of now insurance has limited awareness and only sells because of the Tax benefits
available to the customer not for the insurance. Thus, the companies should widen their
horizons at a very brisk pace and should aware the customers about the benefits of insurance.
 All the company should come out of a Unit Linked product that should aid
every section of the society.
 The advisors should be made aware and educated so that they can extend their
services not only in terms of collection of premium cheques from the policy
holders but also to educate them about the insurance and the latest Non
Traditional products.
 The company has invested 85% of the premium received with Government. In
order to give eye-catching returns to the public, it should diversify its portfolio
and invest in places where the returns are high

CONCLUSION
Being a trainee at SBI Life Insurance jaipur, the project of ‘Analyzing the Segment of
Recruiting Advisors’ concludes with the following:

 SBI LIFE INSURANCE COMPANY has great goodwill in the market. There are 13 big
companies in Indian market and ICICI is the no. one in the private insurance companies.
 There is lot of scope of life insurance in India only 2.5% people are secure with life
insurance so that the insurance sector is its booming stage.
 Good profile insurance advisor could do better job. If SBI Life Insurance mentions the
level of advisor then they may give great sale to the company.
 SBI has tuff competition with LIC…as well as ICICI, TATA AIG, BAJAJ ALLIANCE,
BIRLA SULIFE, ING VYSVA, OM KOTAK MAHINDRA, HDFC INSURANCE.
 If the company starts to concentrate on village segment market. Then company can get
great business.
 I got the good profile people near by bank and share market. When I concentrated on the
20-25 year age group people I found good result.
 In this age group people made interest to purchase the children plan and pension money
back plan.
 I found that in insurance sector a person should have great communication skill and
convenience skill.
 People take interest in the business opportunity of SBI because there are lots of chances to
increases earnings and make high place in the company.
 People take lot of interest in the pinnacle program and also life of the professional
environment of the company.
 Charted accountant is the most effective person in the insurance market.
 Students working at SBI are more influenced with pinnacle programs.
 Advisors are getting motivated with the various program and reward given by the
company for their performance.
 This sector has more opportunity to grow.
ANNEXURE
 QUESTIONNAIRE

Name:

Occupation:

 Annual income:
(A) Upto 70000 (B) 70000-100000
(C) 100000-150000 (D) 150000 and above

 Where you deposit your saving?

o FD
o Securities
o Mutual Fund
o Insurance
 Are you know about invest with Insurance plan?
o Yes
o No

 Which insurance company you know?

o LIC
o ICICI
o SBI
o HDFC
 How did you come to now about this company?
o PRINT MEDIA
o ELECTRONIC MEDIA
o REFERENCES
 o PERSONAL APPROACH

 Which type of policies you prefer?

o CHILD PLAN
o UNIT PLAN
o RETIREMENT PLAN
o HORIZAN PLAN

 How did you think about company products?

o GOOD
o VERY GOOD
o FAIR
o EXELLENT

 What other benefit would you seek for if you don’t want to with other company?
o GROWTH
o COMPANY BRAND
o WORKING ENVIORMENT
o JOB PROFILE

 Why you want in policy?

o PROTECTION
o TAX RATE
o INVESTMENT
o ALL
 BIBLIOGRAPHY
WEB SITES:
 www.sbiprulife.com
 www.sbi.co.in
 www.irdaindia.org
REFERENCE:
 Kothari C.R.: Research Methodology, New age international (p) Ltd, publisher,
New Delhi, 2005
 Gupta Dr. C. B.: Human resource management, Sultan chand & Sons, New Delhi,
2003

MAGAZINES:--
 Insurance Plus
 Business India
 Economic Times
 Material Provided by the company
 Survey

Search Engines:
 www.google.com
 www.yahoo.com

Project guide:
Abhishek Dube (Agency Manager)