113

A
PROJECT REPORT
ON
HUMAN RESOURCE DEVELOPMENT IN LIFE INSURANCE SECTOR
AT
LIFE INSURANCE CORPORATON OF INDIA
HYDERABAD
BY
RUBINA FATIMA
02808113
Project submitted in partial fulfillment for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
Osmania University, Hyderabad – 500007
HYDERABAD PRESIDENCY SCHOOL OF MANAGEMENT
Affiliated to Osmania University
Behind Qutub Shahi Tombs, Puppalguda

Hyderabad – 500 089, Andhra Pradesh
(2008-10)
DECLARATION
I hereby declare that the Project Report entitled Human Resource

Development in Life Insurance Sector is an original and bonafide work
undertaken by me in partial fulfillment of the requirement of the award of
Master of Business Administration, Osmania University.
This project report has not been submitted to any other university for
the award of degree or diploma.
Name of the student : RUBINA FATIMA

Roll No : 02808113
Date :
Signature of the student

ACKNOWLEDGEMENT
I take this opportunity to express gratitude to the faculty members

from the Department of MBA, Principal Mr. Syed Azam Hyderabad
Presidency School of Management for the facilities made available to me,
for having allowed me to do this project at LIC, with the active
encouragement of teaching faculty, who helped me in making this project
successful.
I am deeply grateful to Ms. Mary Sunanda faculty in H.R. for her
constant encouragement and cooperation at every stage of this a project.
She guided me in a very sophisticated manner so that this project became
conceptually understandable.
I thank Mr. Mir Mustafa Ali Khan, Chief Life Insurance Advisor
for giving me the opportunity for carrying out the project.
I would like to thank Mr. Mir Dastagir Ali Khan, Process Trainer,
under the training and guidance of whom this project has been prepared.
I would like to thank my parents, my husband and other family
members without whose co-operation and encouragement this work would
have been impossible. My heartfelt thanks to everyone who helped me
directly or indirectly in completing this project.
RUBINA FATIMA
ABSTRACT
The human is recognized as the most effective input for maximum output and efficiency
of any organization. Hence the development of competency of this human input is very
necessary for the lasting growth and development of the organization.
Human Resource Development is defined as organized learning activities arranged
within an organization in order to improve performance and/or personal growth for the
purpose of improving the job, the individual, and/or the organization.
It is a process of helping people to acquire new competencies.
In organizational context, it is continuous and planned way to acquiring news capabilities
of employees and creating opportunities for them and developing a sound organizational
culture. HRD is often taken as synonym of training but besides training, it is overall
development of the employees.
HRD applies to both micro as well as macro issues. HRD develops the newer capabilities
in people to enable them to achieve organizational goals. It ensures the long-term growth
and development of the organization which helps the economy of the nation.

Micro level
At micro level, Human Resource Development is related with grass-root development

in organizations. It is well received by companies’ management as they realized its
importance and foresee its future contribution for the individual and organizational
development. Generally, HRD at micro level talks about organization’s human resource
planning, selection, training, performance appraisal, development, potential appraisal,
compensation, organizational development etc. HRD involvement in all these areas
mainly aims at developing new capabilities in people so that they could meet the present
job challenges and prepare to accept future job requirements.

Macro level
At micro level, HRD is related with development of people for the nation’s well being.
At this level, it involves health, skills, capabilities and attitudes of people which are more
useful in development of nation as a whole. While calculating the national income and
economic growth, HRD examines the individuals’ potential, attitudes, skill, aspirations,
knowledge etc and develops a concrete base for economic planning. However, HRD at
macro level is not yet popular as it is at micro level.
CONTENTS
Chapter no. Chapter name Page no.
1. INTRODUCTION 1
2. REVIEW LITERATURE 14
3. COMPANY PROFILE 45
4. DATA ANALYSIS AND INTERPRETATION 60
5. CONCLUSION 90
6. BIBLIOGRAPHY 93
CHAPTER-1
INTRODUCTION
HUMAN RESOURCE DEVELOPMENT
All aspects of Human Resource Development focus on developing a more efficient

workforce, capable of serving the organization and the customer in a better manner.
Human Resource Development includes the organizational function that deals with the
human beings and matters like compensation, hiring, performance management, and
training. Each person in the organization is a Human Resource.
Don McIntosh differentiates Human Resource Management (HRM) and Human
Resource Development (HRD). He concludes, "In practical terms, the core practice of
HRD consists of two major areas of activity: training and development, and
organizational development."
It is a matter of general acceptance that the goal of HRD is improvement of the
performance of the organization by maximizing the efficiency and performance of
people. That is, HRD represents efforts to develop knowledge and skills, actions and
standards, motivation, incentives, attitudes and work environment of human factor in an
organization.
Definitions of HRD:
Organized learning activities arranged within an organization in order to improve
performance and/or personal growth for the purpose of improving the job, the individual,
and/or the organization.
HRD includes the areas of training and development, career development, and
organization development.
This is related to Human Resource Management -- a field which includes HR research
and information systems, union/labor relations, employee assistance,
compensation/benefits, selection and staffing, performance management systems, HR
planning, and organization/job design. (Robert H. Rouda & Mitchell E. Kusy, Jr.)
The previous definition of Human Resource Development (HRD) is Human Resource
Development is helping employees develop their skills, knowledge, and abilities. It does
include providing opportunities for training, career development, and improvement of
standard of living and so on.
The human resource development field has long been struggling to develop an identity as
a profession, especially in terms of its applied and interdisciplinary nature. One of the
more debated issues in the field has been the need for a unifying definition that would not
only provide a focus for the development of the profession but would also set limits on
the boundaries of the field. This article presents a justification for a unifying definition, a
history of the existing definitions of HRD, and several common themes or patterns found
in these definitions and other literature in the field. The author proposes a unifying
definition that would provide a vision for the profession and identifies several next steps
that the field should consider in its quest for professional recognition and growth.
The present definition of Human Resource Development (HRD) is systematic
understanding of the physical and mental conditions of employee(s), including their
potentials. It includes helping them develop their skills, knowledge, and abilities by
bringing about better relations with them and by enabling them to take advantage of
suitable opportunities for training, career development, improvement of standard of living
and so on, in consonance with the organizational objectives.
RESEARCH METHODOLOGY
RESEARCH DESIGN : Descriptive.

DATA SOURCES : Primary and Secondary.
PRIMARY DATA : Primary data is collected from respondents
through structured questionnaire.
SECONDARY DATA : Secondary data is collected from the
published data of the company
brochures and internet.
(www.licindia.com,
www.iciciprulife.com).
RESEARCH INSTRUMENT : A well-structured questionnaire.
POPULATION SIZE : 125
SAMPLE SIZE : 100
SAMPLING PROCEDURE : Convenience Sampling.
STATISTICAL TOOL : Chi-square test, Factor analysis.
SAMPLING UNIT : Executives & non-executives.
Data Sources:
Data is collected from primary and secondary sources.

Collection of the data is of primary importance in the research process. Data which is
collected for the purpose of research helps in proper analysis which is helpful to conduct
research effectively. The data source, which is very important in the collection of data, is
primary data and secondary data. Both primary and secondary data are taken into
consideration for the study of Human Resource Department in Life Insurance Sector.
Primary Data:
Primary data is collected through administering the questionnaire by direct contact and
also involved in personal discussions to obtain insights of the information.
Secondary Data:
The Secondary data is collected from records, manuals and brochures maintained by the
personnel department.
Research Approach:
Survey Approach:
The questionnaire was administered through contacts with respondents.
Questionnaire:
A structured questionnaire is designed which consists of open ended and closed ended
questions with 5-point scale and the respondents were made personally to get their
responses. The 5-point scale is named as strongly agree, undecided, disagree and strongly
disagree.
Sampling Plan:
Sample size : 100

Sampling procedure : Convenience Sampling.
Statistical tool : Chi square test, Factor analysis.
To achieve the objective of research, a planned and strategic descriptive
investigation is carried out. Descriptive study is helpful to know the proportion of
People in a given population who have behaved in particular manner making projection
of a certain thing or determining the relationship between two or more variables.
Descriptive study tends to be rigid and its approach cannot be changed every now and
then. Care should be taken only in the initial stages of planning and research, otherwise
data collected will be inadequate and the procedure used will be cumbersome and
expensive. Descriptive method is adopted to study the ‘Human Resource Department’ in
‘Life Insurance Sector’.
Chi–Square Test:
Some times researcher would normally come across situation or problems, which
are complex, involving two or more variables, in which, case analysis based on only one
variable will not be relevant. The bivariate analysis would be more appropriate than
univariate analysis.
In examining the relationship between two or more variables, the first step is to
step up a frequency table, which in such cases is called a contingency table. Each cell of a
contingency table shows a certain relationship or interaction between the two variables.
We use the chi-square test as a test of goodness of fit, where the population and sample
were classified on the basis of a single attribute. It may be noted that the chi- square test
need not be confined to a multinomial population but can be applied to other continuous
distributions such as the normal distribution. Here, we will be concerned with the use of
chi-square as a test of independence. With the help of this technique, we can test whether
or not two or more attributes are associated.
OBJECTIVES OF THE STUDY
 To study the Human Resource Department in Life Insurance Sector.

 To assess the factors which determine the Human Resource Department in Life
Insurance Sector.
 To study the different training procedures in Life Insurance Sector.
CHAPTER-2
REVIEW LITERATURE
HUMAN RESOURCE MANAGEMENT
MANAGEMENT DEFINITION:
Management is the art of getting things done
through and with the people in formally organized group. Management is the process
of designing and maintaining an environment in which individuals working together
in groups efficiently accomplished selected aims.
HRM DEFINITION:
Human Resource Management (HRM) is the function within an
organization that focuses on recruitment, management and providing direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers. Human Resource Management is the organizational
function that deals with issues related to people such as compensation, hiring,
performance management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training . It refers to the system
approach to the problem in any organization.
MEANING OF HRM:
Different terms are used to denote Human Resource
Management. They are labor management, labor administration, labor - management
relations, employee – employer relations, industrial relations, personnel relations,
personnel management. Though these terms can be differentiated widely the basic
distinction lies in the scope or coverage and evolutionary stage. In simple sense, HRM
means employing people, developing their resources, utilizing, maintaining and
compensating their services with the job and organizational requirements.
Personnel management is a responsibility of all those who manage
people as well as being a description of the work who are employed as specialists. It is
that part of management which in concerned with people at work and their relationships
with in an enterprise it applies not only to industry and commerce but to all fields of
employment.
FUNCTIONS OF HRM:
The functions of HRM can be easily classified into two
categories.
(I) Managerial functions
a) Planning.
b) Organizing.
c) Directing.
d) Controlling.
(ii) Operative functions
a) Employment
1. Job Analysis.
2. Human Resource Planning.
3. Recruitment.
4. Selection.
5. Placement.
6. Induction or Orientation.
b) Human Resource Development
1. Performance Appraisal.
2. Training.
3. Management Development.
4. Career Planning and Development.
5. Inter Mobility.
6. Transfer.
7. Promotion.
8. Demotion.
9. Organization Development.
c) Compensation
d) Human relation
e) Human Resource Accounting
f) Human Resource Audit
g) Human Resource Research
NATURE OF HUMAN RESOURCE MANAGEMENT:

The nature of HRM can be studied in the following way.
 Complex Dynamism
 Social System
 Challenging Task
SCOPE OF HUMAN RESOURCE MANAGEMENT:

Human Resource Management facilitates in identifying the right king of people,
socializing them in most appropriate way. Training and developing them in the right
direction, assigning the tasks which are best suited for every individual so as to bring out
their best. Motivating them to make their contribution and creating conditions for the
people to enjoy their work.
Human Resource Management approach improves the organization efficiency
work culture, job satisfaction of people, better understanding and human relations in
cardinal industrial relations and better productivity. HRM has great scope to improve
organization climate and efficiency.
SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT:

Globalization of business is an important aspect of change which takes place in
the business environment of today, necessitating a human resource approach to man
power. Dynamic growth oriented organizations do require effective management of
people in a fast changing environment. The human resource management approach which
has been gaining the attention of management professionals during the last decade has
become the need of the development process of modern economics.
CHARACTERISTICS OF HRM:
I) Management of Human Resource – Arranging the people and managing them
at work so that they give their best to the organization.
II) Interpersonal Relationship – HRM defines the relationship between employer
and employee and also between employee and employee.
III) HRM is specialized branch of General Management.
IV) HRM posses definite principles and policies which help over all development
of human force.
ASSUMPTIONS OF HRM:
 There is a scope for unlimited developments of these resources.
 The members of an organization are reservoirs of untapped resources.
 It is more in the nature of self development than development thrust from
outside.
 The organization also further develops a culture in which utmost emphasis
is placed on harmonious superior – subordinate relations, team work.
 Top management takes the initiative for HRM, formulates necessary plans
and strategies and creates an over all climate and support for its
implementation
PRINCIPLES OF HRM:
The labor management institute of England has given nine principles. They are as
follows:
 Principle of maximum individual development.
 Principle of scientific selection.
 Principle of high morale.
 Principle of effective communication.
 Principle of dignity of labor.
 Principle of team spirit.
 Principle of fair reward.
 Principle of joint management.
 Principle of contribution of national property.
COMPONENTS OF HRM:
 Human Resource Organization.
 Human Resource System.
 Human Resource Development.
 Human Resource Relationships.
 Human Resource Utilization.
LIMITATIONS OF HRM:
HRM is of recent origin and it takes a universally approved academic
base. As there is no general definition accepted and an operational frame work is
universally approved, a skeptical approach.
HRM may not produce expected result over night. Gradual effect may be
expected and the management must have patience to wait and watch.
Most of the HRD programmers are limited to classroom training in many
organizations. Many managers neglect to collect and store the required
information with out which HRM practice is difficult.
In many organizations HRM is understood as Human Resource
Development. Human Resource Development is only part of Human Resource
Management.
HRD PROCESS IN LIFE INSURANCE SECTOR
HRD PROCESS:
Human Resource Development has got four crucial ingredients to be

taken into consideration.
They are as given below:

 Individual (person).
 Role.
 Teams.
 Organization.
These are four important ingredients at the primary level of the organization.
Individual:
Individuals are responsible for running the front & back operations of
the organization.
Main Individuals who come under the life insurance sector are:
1. Agents of LIC & Development Officers.
2. Insurance Consultants & Unit Managers.
3. Insurance Consultants & Agency Managers.
These are the main persons responsible for running the front end (Marketing
Operations) of the organization.
Role:
Role of the person is very imp in an organization.
Role states that each person has to play a very imp role in the organization
related to a particular process within that organization.
Each person is given his/her respective role in the organization.
Ex: Role play is imp in Sales & Marketing & also Leadership process related to the
organization.
Teams:
Teams are yet another crucial aspect related to the organization.
In a Life Insurance Sector there are:

1. Training Team.
2. Recruitment Team.
3. Coordination Team.
4. Management Team.
These teams are essential to run the organization in a smooth manner.
Organization:
Organization is the founding pillar of that field or industry.
In its inception the category classified for an organization is:

(a) Profit motive organization.
(b) Service motive organization.
Organization has to serve on the ‘Professional Methodology’.
Individual Efficiency:
• Under Life Insurance the individual has the capacity of becoming ‘whatever
he/she wants’.
• Primary Process: Under primary process the person remains ‘Agent – Agent’.
• Secondary Process: Under secondary process persons starts from ‘Agent –

CLIA’ at Marketing & Sales Side.
• Corporation Side: Corporation side the person has got chance from ‘BM to
Zonal Manager’.
Individual Effectiveness:
• Under Life Insurance Sector it is to do with the objectives of the

organization & what should be the objectives of the ‘Individual’.
• Individual has to perform the given tasks which are to be stated under the
duties of the organization.
• Under Marketing: Entire Sales Objectives.
• Under Organization: Entire Administrative objective related to org & also

sales etc.
• This would prove the effectiveness of a person handling the objective.
Individual Style:
• In a Life Insurance Sector all the life insurance organizations work on the
style of ‘Convergent’.
• The meaning of Convergent is ‘Thinking & Doing’.
• It is not only important to the insurance consultant who sells the policy but
also for the organization to expand its operations in the long run.
• Convergent has got 2 aspects 1. Related to the Investor 2. Related to the
organization.
Individual Leadership:
In Life Insurance Sector ‘Leadership’ is present at every level of the organization.
In every setup level of life insurance co there are:
1. Corporate Office – Chairman.
2. Zonal Office – Zonal manager.
3. Divisional Office – Sr. Divisional manager.
4. Branch Office – Branch Manger or Chief Manager.
5. In addition to this Satellite branch manger for satellite branches.
Role Competencies:
Role becomes much more important when you take into consideration
‘Competencies’.
Under Life Insurance Sector there are two classifications of competencies:
1. Organization’s competency.
2. Individual’s competency.
Competency is very vital for the long run of the organization & it’s individual.
Internally it is the strength of the organization & externally it is a threat to its
competitors.
Role Motivation:
• Under Life Insurance Sector the main motivator towards the marketing &
sales side is the most ‘Premier Insurance Consultant’.
• At an organization side they are ‘Chief Manger, Sr. Divisional Manager,
Zonal Manager & the Chairman’.
• From time to time they are external faculties which come into consideration.
• They are on the expense of the organization & that these faculties would
perform the said act.
Role Frustration:
• In Life Insurance Sector at an organization the biggest threat is ‘Sales’ &
after ‘Sales Service’.
• An Insurance Consultant happens to sell the policy but could not provide after
sales service related to the ‘Policy Servicing’.
• Very few people happen to understand this and take the profession seriously.
• After which they are kicked out of the organization in the organizations
manner.
Role Success:
Success in Life Insurance Sector is at every level.
They are based on 2 categories:
1. Marketing & Sales (Insurance Consultants).
2. Administrative Board (DO to Chairman).
At an administrative side the success rate is very high.
After which people are directly recruited at a very high positions.
Teams – Life Insurance:

Teams in LIC have got their special presence at every level.
They can be named as:
1. Training Team.
2. Recruitment Team.
3. Management Team.
Management Teams are present on every level of organization.
To give the green signal on the strategies they have the board along with the chairman
to decide.
Organization – Life Insurance:

• Organization has got the ability to go not in the performing times but also in
the testing times.
• Communication is the key for the growth of any organization.
• The life insurance organization has to be a learning organization.
• It also needs to change from the changing times in the prescribed sector.
• Its development is the development of the organization.
TRAINING PROCEDURE IN LIFE INSURANCE SECTOR:
Training:
Training is a process where in the efficiency of the employee or an agent is enhanced.
It is a learning process that involves the acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees.
Need of Training:
It is generally classified into three levels.
1. Organizational Level.
2. Individual Need.
3. Operational Level.
The resources which are required for running the organization are understood by
‘Need of Training’.
Organizational Level:
1. Internal Environment: The factors for internal environment are:

(a) Organizational Procedure.
(b) Structure.
(c) Weaknesses.
2. External Factors:
(a) Opportunities.
(b) Threats.
Individual Level:
• This is done when the organization comes to a conclusion that there is a

difference between the expected performance & actual performance.
• This performance for every individual which is within the organization.
• The employer checks whether the respected employee is performing at a

desired level.
Operational Level:
• The job which is being assigned to the designated individual of the

organization.
• Job Analyst: He/She is the person who takes the responsibility of making
everyone understand the job or their work within the organization.
• He is also responsible not only for assigning the present tasks but also the
future tasks related to the organization in any field.
Objectives of Training:
These objectives can be understood as:
1. Trainer.
2. Trainee.
3. Designer.
4. Evaluator.
Trainer:
He/She is the primary person in the objectives as they would be the first person to
confront the objectives & the trainees of the respective organization.
Trainee:
He is the person who gets trained to understand his/her work; secondly it helps the
trainee to understand the training module or methodology.
Designer:
When the designer is convinced with the training module then he/she will buy the
training module for training & development of the organization.
Evaluator:
It is for measuring the importance of the trainee & its understanding with the module
for better performance.
Importance of Training:
The fifteen important aspects of training are:
1. Optimum Utilization of Human Resources.
2. Development of Human Resources.
3. Development of skill of employees.
4. Productivity.
5. Team Spirit.
6. Organization Culture.
7. Organization Climate.
8. Quality.
9. Healthy – Work environment.
10. Health & Safety.
11. Morale.
12. Image.
13. Profitability.
14. Organizational Development.
15. Aids Leadership, Motivation, Loyalty etc.
Training Procedure: Training procedure in life insurance companies are 2 fold:

1. Recruitment Training.
2. Training within the organization.
These trainings are very important for an employee or the insurance consultant
working for a life insurance company in India.
Training Procedure under Recruitment Training:

Under this there are two scenarios of taking up the training.
Scenario 1: Under this scenario the person who wanted to be an insurance consultant
working for life insurance corporation (Prior to IRDA Act 2000).
Scenario 2: Under this scenario the person has to under go the IRDA training &
become an agent with the life insurance corporation or any other co operating in
India.
Training before IRDA:
Before IRDA: Before IRDA the person who terms himself as had only had to be an
Agent of LIC.
Training procedure: Training procedure would be once when the agent would get
himself/herself recruited by the development officer.
This would only be after the payment of Rs. 15 and a DD favoring Life Insurance
Corporation of India.
Training after IRDA Act:
 The IRDA act came into existence in the year 2000 on 6th January. It makes
compulsory that every person desiring to become an “AGENT” or
“INSURANCE CONSULTANT” of LIC or any other co. has to comply
with the said act.
 There is a procedure for taking up the IRDA training in life insurance subject.
Training Procedure as per the IRDA Act:
Training methodology as per IRDA is as follows:

1. The person has to declare that he wants to become an Insurance Consultant in
any one of the 14 companies of IRDA.
2. The person has to be recruited by a Development Officer/Unit
Manager/Agency Manager.
3. He/she has to give minimum Rs. 150 to 200 as the training charges in any of
the centers specified.
4. The person has to attend the 100 hours training (Prior 2007) & get an in-depth
knowledge of the subject of life insurance.
5. The person has to also take up the mock exams conducted by various centers
all over India.
6. The person has to then at last take the IRDA exam subject to condition
minimum 75 % training attendance.
7. The person has to then report back to DO/UM or AM.
Recruitment Procedure of an Insurance Consultant:
1. IRDA exam: After the IRDA exam the Insurance Consultant working for an
organization would get a license & would have to report to a particular
branch.
2. Then the Insurance Consultant would have to sell the respective plans & also
the group insurance schemes as per a life insurance co working in Indian
union.
Training Within the Organization:
 Training within the organization is under taken by the development officer.

 In private companies there are Unit Managers & Agency Managers.
 The branch manager or the chief manager would give the further training on
the subject related to life insurance & its products & various updates on the
organization etc.
Product Training:
The product training is taken on a very exhaustive base.
They are generally 3 categories:
(a) Conventional products of the insurance co.
(b) Non – Conventional products of the insurance co.
(c) Group Insurance by the insurance co.
Insurance Consultancy:
Insurance consultant under Life Insurance Corporation banner has the growth of
becoming:
1. Insurance Consultant.
2. All India High Net worth Agent.
3. Wealth Manager.
4. CLIA (Chief Life Insurance Advisor).
Insurance Consultant:
 A person remains an Insurance Consultant at an entry level.

 He/She has to sell the policies related to life insurance co.
 He/She if in LIC of India gets commission scales ranging from 2 to 35 %.
 He/She if in the private insurance co also is entitled for a commission as well
as a handsome salary.
All India High Net Worth Agent – LIC of India:
 AIHNWA is an Agent who is serving the “HIGH NETWORTH

INDIVIDUAL”.
 HNWI: HNWI is an individual who earns more than 60,000 per month by any
profession he/she is skilled in.
 The insurance consultant has to attend the training session of AIHNWA at
ZTC Gurgeon.
 Then he is not only qualified but also certified as “AIHNWA”.
Wealth Manager LIC of India:
 Wealth manager is a person who is selected by corporate office; again the

person has to be an insurance consultant working for LIC.
 This training is again attended at ZTC (Gurgeon).
 Again the person is certified under the norms of the organization.
Chief Life Insurance Advisor – LIC of India:
 CLIA is currently the highest position in terms of marketing & Sales related to
life insurance consultant.
 The CLIA has to recruit agents under him & do the respective marketing &
sales related to life insurance policies of Life Insurance Corporation.
Commission Scale:
The commission scales are different under different plans of life insurance.
 Whole Life Plans: If PPT is more than 15 years then it is 25 % the applicable
bonus is paid to the insurance consultant @ 40 %.
 Money Back Plans: The first year commission is 15 % & bonus commission is
40 %.
 Term Assurance Policies: Less than 15 years then the first year are 7.5 % &
No bonus to these plans.
 Ulip Plans: Under ULIP plans of LIC the rate is 10 % & 7.5 %, in the same
LIC policy under ULIP for single premium it is 2 %.
 Annuity Plans: Under annuity plans of LIC there are 2 % for immediate
annuity. For deferred annuity it is 7.5 % & in both cases no bonus for
insurance consultant.
Other Benefits of Agent:
 Fringe Benefits: In order to qualify for the fringe benefits there are 2
conditions:
Condition no 1:
 45 lives of S.A 15 lakhs to become a BM club manager.
 90 lives of S.A 40 lakhs to become a DM club member.
 115 lives of S.A 60 lakhs to become a ZM club member.
 170 lives of S.A 1 Crore to become a Chairman club member.
 In the entire year for BM – 523, DM – 275, ZM – 170 & Chairman its 242 in
a financial year.
Condition no 2:
 BM club: 5 lakhs S.A & 120 lives in a financial year with FYC 20,000 on
every live & 30,000 on the RC base.
 DM club: 10 lakhs S.A & 230 lives in a financial year with FYC 35,000 on
every live & 55,000 on the RC base.
 ZM club: 15 lakhs S.A & 370 lives in a financial year with the FYC 70,000 on
every live & 80,000 RC base.
 Chairman’s club: 25 lakhs S.A & 550 lives in a financial year with the FYC 1,
10,000 on every live & 1, 00,000 RC base.
Fringe Benefits:
Fringe benefits are the benefits divided as:
 Office Allowance: BM – 1,000 P.A , DM – 8,500 P.A, ZM – 17,000 P.A,

Chairman – 30,000 P.A
 Call Charges: BM – N/A, DM – N/A, ZM – 300 local calls & Chairman – 300
local calls + rentals charges.
 Sales & Promotional Gifts: BM – 180, DM – 500, ZM – 840 & Chairman’s
Club – 1400.
 Letter Heads & Envelops: BM – 300, DM – 500, ZM – 750 & Chairman’s
Club – 1000.
 Visiting Cards: BM – 100, DM – 150, ZM – 200 & Chairman’s Club – 250.
 Out of Pocket Expenses: BM – 200, DM – 400, ZM – 1100, CC – 2500.
 Vehicle Advances: 2 wheeler (Purchase price, deduction 60 monthly
installments).
 Purchase price or 7.5 % of 2 years RC or Rs. 3, 50,000 (8 years).
 Purchase price or 2 years.
 Housing Loan: 5 % P.A or 7.5 % P.A for a MRP loan of Rs. 10, 00,000 by
LIC of India under the portfolio of LIC HFL.
 ZM – 8, 00,000 & for CC – 8, 50,000.
 Group Term Insurance: BM – 18750 P.A (Up to 60 years of Age), DM –
37,500 P.A, ZM – 75,000 & CC – 1, 25,000 P.A (S.A).
Housing Finance Agents:
 Sale deep for 15 years.

 Certificate from branch/divisional authorities for 15 years.
 Municipality permission.
 Municipality plan approval.
 Estimates from civil engineers.
 Income certificates.
Based upon the above conditions the housing loan is released from the LIC HFL.
Process Training:
• Process Training is related to the organization, its setup.

• It covers the history of the organization, its various aspects which are related
to marketing, sales & after sales services.
• Finance & Human resources aspects also.
• Along with that it would also cover various aspects related to underwriting
etc.
• For a individual which is 24 years old a policy would be issued if that
individual would get 1 passport size photograph, 1 address proof & 1 Date of
Birth along with the premium amount.
• For a 32 year old individual the underwriting procedure would be 1 passport
size photograph, 1 address proof, 1 date of birth certificate & a general
examination by the authorized physician under the governance of LIC.
• If the investor is an NRI person then he/she should do from a foreign
physician who should be minimum MBBS.
• After this examination & payment of premium the policy bond would be
issued.
Product Training:
When it comes to Life Insurance sector, life insurance sector in any insurance
organization has got 3 product trainings.
(a) Conventional plans of the co.
(b) Non Conventional plans of the co.
(c) Group Insurance schemes of the co.
Conventional Plan Category:

1. Whole Life Plans.
2. Ltd. Payment Endowment Plans.
3. Children Plans.
4. Special Plans.
5. Pension Plans.
Non Conventional Plans Category:
1. Bima + plan.
2. Jeevan + plan.
3. Money + plan.
4. Market + plan.
5. Health + plan.
6. Money + I plan.
7. Market + I plan.
Group Insurance Schemes:

1. Group Insurance.
2. Group Gratuity Scheme.
3. Group Super Annuation Scheme.
4. Group Leave Encashment Scheme.
5. Group Savings Linked Insurance Scheme.
6. Janashri Bima Yojana (JBY).
7. GMRA (Group Mortgage Redemption on Assurance).
Insurance Broking:
When an insurance consultant is given training related to the process & also related to
the product he/she also gets to know about ‘Insurance Broking’.
Insurance Broking: Apart from the regular life insurance co’s doing the business of
life insurance, it is to be noted that even banks are selling life insurance.
At the time of opening a bank account, the person in that bank needs Rs. 1,000 to
open the account.
After which over a period of time the respective bank would approach the account
holder for insuring him/her through the bank account.
Premiums are paid by the bank account directly & every month it is deducted.
Portfolio Advisory:
In an Insurance co the use of portfolio advisory is taken into consideration.
As it is used widely in 3 portfolios:
1. Life Insurance Portfolio.
2. Mutual Funds Portfolio.
3. Health Insurance Portfolio.
Soft Skills Development:

Soft Skills Development is initiated by an organization which is external to the
insurance organization.
There are many organizations which are into soft skills so an insurance consultant has
to go in for some courses.
Irrespective of the private insurance company which gives a bit of soft skills into
insurance, the insurance consultants have to go & get trained externally.
RECRUITMENT AND PLANNING IN LIC:
 Recruitment is a process where a qualified person, with a specialized skill set

is taken on board by the co.
 Planning has got to do with the process & the people who have the ability to
take care of these processes.
These two are the main functions of Human Resource Department.
Organization Setup:
Organization Setup in Life Insurance Corporation under Life Insurance portfolio
has got:
1. 1 Corporate Office.
2. 8 Zonal Offices.
3. 105 Divisional Offices.
4. 2048 Branches.
In addition to the above information LIC has got 500 + Satellite Offices or Satellite
Branches.
Corporate Office Setup and Recruited People:
In corporate office there are different recruitments in various departments of the
organization.
They are as given below:
Actuarial Board: It is the ‘Actuarial or the Actuarial Head’
This department is into:
(a) Actuarial Research
(b) Product Design
(c) Valuation.
Audit: The second most department is the Audit which is taken care by the internal
auditor.
Board Secretariat: Board Secretariat is into 2 planning:

(a) Public Relations.
(b) Government References.
Corporate Communication: This department is into 2 functions:

(a) Corporate Communications.
(b) Publicity.
Corporate Planning: Corporate Planning department is into 3 functions:

(a) Corporate Planning.
(b) Plan Finalization.
(c) Operational Research.
CRM: This dept at the corporate office has got 3 functions to perform:
(a) Queries from Customers.
(b) Complaints Tracking.
(c) Customer Service.
Finance & Accounts: F/A has got 5 functions within the organization:
(a) Corporate Accounts.
(b) Financial Budget.
(c) Finance.
(d) Provident Fund & Pension.
(e) Income Tax.
HRD/OD: HRD & Organizational Department is under the supervision of Chairman

& the 3 MDS.
Inspection Dept: The inspection dept has got 3 functions:
(a) Over viewing inspection operations.
(b) Inspection of Zonal Offices.
(c) All other related inspection corporate level jobs.
Investment Department: They are into:
(a) Investments related to funds.
(b) Investments related to Loans & Mortgage.
Management Development Centre: MDC has got 2 functions:

(a) Management Development Centre.
(b) Managerial/Executive Learning Programmes.
Marketing: Marketing Department has to take care of 3 functions:

(a) Planning & Review.
(b) Sales Promotion.
(c) ULIPS.
Health Insurance: The corporate office has Health Insurance portfolio also.
Underwriting & Re-Insurance: Corporate office has also got to take care of
underwriting decisions as well as Re-Insurance
They are more than 14 departments at the corporate office.
Zonal Office Setup and Recruited People:
Zonal Office: The various departments under Zonal Office are:
Actuarial Board: It is the Actuarial or the Actuarial Head
This department is into:
(a) Actuarial Research
(b) Product Design
(c) Valuation.
Audit: The second most department is the Audit which is taken care by the internal
auditor.
Board Secretariat: Board Secretariat is into 2 planning:

(a) Public Relations.
(b) Government References.
Corporate Communication: This department is into 2 functions:

(a) Corporate Communications.
(b) Publicity.
CRM: This department at the zonal office has got 3 functions to perform:
(a) Queries from Customers.
(b) Complaints Tracking.
(c) Customer Service.
F/A: F/A has got 3 functions:

(a) Zonal Office Accounts.
(b) Consolidation of Accounts.
(c) Provident fund & pension.
STC: Sales Training Centre & Training to Field professionals.
ZTC: Zonal Training Centre & Training to Field Personnel.
Health Insurance: It has got Health Insurance Portfolio.

Zonal office has got more than 9 departments.
Divisional Office Setup and Recruited People:

Divisional Office: Various departments in divisional office are:
Claims Department: They are:
(a) Death Claims processing.
(b) Consolidation of data from Branches.
CRM: They are:

(a) Customer Relations.
(b) Complaint Tracking.
F/A: F/A it has got 3 functions:

(a) Divisional office accounts.
(b) Consolidated accounts.
(c) Surplus fund transferred.
Marketing: Marketing has got 3 functions:

All jobs related to marketing.
(b) Publicity.
(c) Matters dealing with Agents/DOS.
NB: New Business Department is also having 3 functions:

(a) Underwriting.
(b) Actuarial Studies.
(c) Valuation.
P& MR: P & MR have 2 functions:
(a) Marketing Research.
(b) Planning.
Branch Office Setup and Recruited People:

Branch Office: At the Branch Office level you have got:
Claims: Claims have got 2 functions:
(a) SBC
(b) DBC
(c) MBC
F/A: The F/A has got 4 functions to perform:

(a) Cash Receipts/Payments.
(b) Banking.
(c) General Accounts.
(d) Preparation of Trail Balance.
IT Dept: IT department has got 2 functions:

(a) Computer operations.
(b) Computer operations applications.
NB: NB has got 3 functions:

(a) Underwriting.
(b) Policy Issue.
(c) Valuation.
OM: Office Management has got 4 functions:

(a) Office upkeep.
(b) Furniture & Stationery.
(c) Salary & Leave Records.
(d) Employee Records & Employee Matters.
CHAPTER-3
COMPANY PROFILE
LIFE INSURANCE CORPORATION
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss and
disaster existed in primitive men also. They too sought to avert the evil consequences of
fire and flood and loss of life and were willing to make some sort of sacrifice in order to
achieve security. Though the concept of insurance is largely a development of the recent
past, particularly after the industrial era – past few centuries – yet its beginnings date
back almost 6000 years.
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. Starting as Indian enterprise with
highly patriotic motives, insurance companies came into existence to carry the message
of insurance and social security through insurance to various sectors of society. Bharat
Insurance Company (1896) was also one of such companies inspired by nationalism. The
Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United
India in Madras, National Indian and National Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative
Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great
poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and
Swadeshi Life (later Bombay Life) were some of the companies established during the
same period. Prior to 1912 India had no legislation to regulate insurance business. In the
year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed.
The Life Insurance Companies Act, 1912 made it necessary that the premium rate
tables and periodical valuations of companies should be certified by an actuary. But the
Act discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming
of insurance companies many financially unsound concerns were also floated which
failed miserably. The Insurance Act 1938 was the first legislation governing not only life
insurance but also non-life insurance to provide strict state control over insurance
business. The demand for nationalization of life insurance industry was made repeatedly
in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance
Act 1938 was introduced in the Legislative Assembly. However, it was much later on the
19th of January, 1956, that life insurance in India was nationalized. About 154 Indian
insurance companies, 16 non-Indian companies and 75 provident were operating in India
at the time of nationalization. Nationalization was accomplished in two stages; initially
the management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. 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.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district headquarter.
re-organization of LIC took place and large numbers of new branch offices were opened.
As a result of re-organization servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the performance of the
corporation. It may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years
for LIC to cross 2000.00 crore mark of new business. But with re-organization happening
in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,
7 zonal offices and the corporate office. LIC’s 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. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New
Delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized records of the
satellite offices will facilitate anywhere servicing and many other conveniences in the
future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records.
LIC has issued over one crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families.
Mission
"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering
resources for economic development."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and
Pride of India."
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
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 are 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.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
Objectives of LIC:
1. Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all insurable
persons in the country and providing them adequate financial cover against death
at a reasonable cost.
2. Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
3. Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.
4. Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
5. Act as trustees of the insured public in their individual and collective capacities.
6. Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
7. Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
8. Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
ICICI PRUDENTIAL
ICICI Bank is India's second-largest bank. The Bank has a network of about 573
branches and extension counters and over 2,000 ATMs. ICICI Bank was originally
promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-
owned subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of
Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada
and Russia, branches in Singapore and Bahrain and representative offices in the United
States, China, United Arab Emirates, Bangladesh and South Africa.
Today, ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
Past three years history of ICICI:
2006:
ICICI Bank became the first private entity in India to offer a discount to retail investors
for its follow-up offer.
ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.
ICICI Bank subsidiary set up in Russia.

2007:
Introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit scheme for
nonresident Indians.
Representative offices opened in Thailand, Indonesia and Malaysia.
ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allow banking transactions to be conducted on the field. A low-
cost solution, this became an effective delivery option for ICICI Bank's micro finance
institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond
offering by an Indian bank.
Sangli Bank amalgamated with ICICI Bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer.
ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in
the sterling market from an Indian issuer and also the largest deal in the sterling market
from Asia.
Launched India's first ever jewellery card in association with jewelry major Gitanjali
Group.
ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card.
Foundation stone laid for a regional hub in Gandhinagar, Gujarat.
Introduced SME Toolkit, an online resource centre, to help small and medium enterprises
start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed rate on
car loans, commercial vehicles loans, construction equipment loans and professional
equipment loans.
In a first of its kind, nation wide initiative to attract bright graduate students to pursue a
career in banking, ICICI Bank launched the "Probationary Officer Programme".
Launched Bank@home services for all savings and current a/c customers residing in
India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008:
ICICI Bank enters US, launches its first branch in New York.
ICICI Bank enters Germany, opens its first branch in Frankfurt.
ICICI Bank launched iMobile, a breakthrough innovation in banking where practically

all internet banking transactions can now be simply done on mobile phones.
ICICI Bank concluded India's largest ever securitization transaction of a pool of retail
loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-
tranche issue backed by four different asset categories. It is also the largest deal in Asia
(ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia)
since the beginning of 2007.
ICICI Group:
ICICI Group offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
group companies, subsidiaries and affiliates in the areas of personal banking, investment
banking, life and general insurance, venture capital and asset management. With a strong
customer focus, the ICICI Group Companies have maintained and enhanced their
leadership position in their respective sectors.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$
100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended
March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian
stock exchanges in terms of free float market capitalization. The Bank has a network of
about 1,308 branches and 3,950 ATMs in India and presence in 18 countries.
ICICI Prudential Life Insurance Company is a 74:26 joint venture with prudential plc
(UK). It is the largest private sector life insurance company offering a comprehensive
suite of life, health and pensions products. It is also the pioneer in launching innovative
health care products like Diabetes Care and Cancer Care. The company operates on a
multi-channel platform and has distribution strength of over 2, 90,000 financial advisors
operating from 1956 branches spread across 1669 locations across the country. In
addition to the agency force, it also has tie-ups with various banks, corporate agents and
brokers. In fiscal 2008, ICICI Prudential attained a market share of 12.7% with new
business weighted premium growth of 68.3% to Rs. 66.84 billion and held assets of Rs.
285.78 billion at March 31, 2008.
ICICI Lombard General Insurance Company, a joint venture with the Canada based
Fairfax Financial Holdings, is the largest private sector general insurance company. It has
a comprehensive product portfolio catering to all corporate and retail insurance needs and
is present in over 200 locations across the country. ICICI Lombard General Insurance
has achieved a market share of 29.8% among private sector general insurance companies
and an overall market share of 11.9% during fiscal 2008. The gross return premium grew
by 11.4% from Rs. 30.3 billion in fiscal 2007 to Rs. 33.45 billion in fiscal 2008.
ICICI Securities Ltd is the largest equity house in the country providing end-to-end
solutions (including web-based services) through the largest non-banking distribution
channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI
Securities (I-Sec) has a dominant position in its core segments of its operations -
Corporate Finance including Equity Capital Markets Advisory Services, Institutional
Equities, Retail and Financial Product Distribution.
ICICI Securities Primary Dealership is the largest primary dealer in Government
securities. In fiscal 2008, it achieved a profit after tax of Rs.1.40 billion.
ICICI Prudential Asset Management is the second largest mutual fund with asset under
management of Rs. 547.74 billion and a market share of 10.2% as on March 31, 2008.
The Company manages a comprehensive range of mutual fund schemes and portfolio
management services to meet the varying investment needs of its investors through 235
branches spread across the country.
Incorporated in 1987, ICICI Venture is the oldest and the largest private equity firm in
India. The funds under management of ICICI Venture have increased at a 5 year CAGR
of 49% to Rs.95.50 billion as on March 31, 2008.
ICICI Products:
ICICI Group has always been at the forefront of developing innovative financial
products, which caters to various needs of people from all walks of life. Over the years, it
has launched several financial products that offer financial support, security and more to
not just individuals, but to big and small organizations too.
BANKING
 Personal Banking
o Savings & Deposits

o Loans
o Cards
o Wealth Management
 Global Private Clients

 Corporate Banking
o Transaction Banking
o Treasury Banking
o Investment Banking
o Capital Markets
o Custodial Services
o Rural & Agri Banking
o Structured Finance
o Technology Finance
 Business Banking
o Current Account
o Business Loans
o Forex
o Trade
o Cash Management Services
 NRI Banking
o Money Transfer
o Bank Accounts
o Investment
o Property Solutions
o Insurance
o Loans
INSURANCE AND INVESTMENT
 Life Insurance
o Life Insurance
o Retirement Solutions
o Health Solutions
o Education Solutions
 General Insurance
o Health Insurance
o Overseas Travel Insurance
o Student Medical Insurance
o Motor Insurance
o Home Insurance
 Securities
o Corporate Finance
o Primary Dealership
o Institutional Equities
o Retail Equities
 Mutual Fund
o Our Funds
o Performance Analyses
o Systematic Investing
o Compare Schemes
 Private Equity Practice

CHAPTER-4
DATA ANALYSIS AND

INTERPRETATION
DATA ANALYSIS AND INTERPRETATION OF LIC
1. At work, I am always identified by the tasks I perform.
S.No. Options No. of Respondents

1. Strongly agree 30
2. Agree 53
3. Undecided 6
4. Disagree 8
5. Strongly disagree 3
TASK IDENTITY
No of Respondents
8% 3% 1
6% 30%
2
3
4
53% 5
Inference:
From the table it is referred that 83% of the respondents opine that there is task
identity in the organization and 60% are undecided and 11% disagree with it.
2. I am always informed of expectations and my current performance.
S.No No of Respondents
Options No of Respondents
2. Agree 53
3. Undecided 8
4. Disagree 19
5. Strongly disagree
4% 4
16% 1
19%
2
FEED BACK
3
8% 4
53% 5
Inference:
From the above table it is inferred that 68% of the employees opine that there is
feedback and 8% are undecided and 23% disagree with it.
3. Goals are mutually set here.
S.No Options No of Respondents

2. Agree 37
3. Undecided 21
4. Disagree 18
No ofdisagree
Respondents
5. Strongly 5
TARGET SETTING & INVOLVEMENT
5% 19%
18% 1
2
3
4
21%
37% 5
Inference:
From the above table it is inferred that 56% of the employees opine that there is target
setting % involvement and 21% are undecided and 23% disagree with it.
4. Rewards are commensurate with our appraisal ratings.

1. Strongly agree 8
2. Agree 37
3. Undecided 27
4. Disagree 28
5. NoStrongly disagree
of Respondents 0
PERFORMANCE APPRAISAL AND REWARDS
0% 8% 1
28%
2
3
37%
4
27% 5
Inference:
From the above table it is inferred that 45% of the employees opine that rewards are
commensurate with appraisal and 27% are undecided and 28% disagree with it.
5. The organization counsels its members on career options & guides them
too.

1. Strongly agree 9
2. Agree 47
3. Undecided 21
4. Disagree 23
CAREER PLANNING
No of Respondents
23% 0% 9% 1
2
3
47% 4
21%
5
Inference:
career planning and 21% are undecided and 23% disagree with it.
6. Training is facilitative and helps me to perform better.

2. Agree 54
3. Undecided 4
4. Disagree 5
TRAINING AND DEVELOPMENT
No of Respondents
4% 5% 0% 1
37% 2
3
4
54%
5
Inference:
From the above table it is inferred that 91% of the employees opined that the training
helps them to perform better and 4% are undecided and 5% disagree with it.
7. I need not worry about my job as long as I meet the standards.

2. Agree 51
3. Undecided 7
4. Disagree 6
JOB SECURITY
No of Respondents
7% 6% 1% 1
35% 2
3
4
51% 5
Inference:
From the above table it is inferred that 86% of the employees opine that there is job
security and 7% are undecided and 7% disagree with it.
8. The conditions need to be far improved.

2. Agree 53
3. Undecided 18
4. Disagree 13
WORKING CONDITIONS
No of Respondents
13% 0% 16% 1
18% 2
3
4
53% 5
Inference:
From the above table it is inferred that 68% of the employees opine that working
conditions need to be improved and 18% are undecided and 31% disagree with it.
9. I have always been rewarded for the contribution I have made.

2. Agree 33
3. Undecided 19
4. Disagree 16
RECOGNITION
No of Respondents
8% 17% 1
18%
2
3
4
21% 36%
5
Inference:
From the above table it is inferred that 48% of the employees opine that recognition is
there for the contributions they have made and 19% are undecided and 23% disagree
with it.
10. I am satisfied with the leave facilities in the organization.

2. Agree 50
3. Undecided 4
4. Disagree 28
RESPONDENTS
No of Respondents
2% 16% 1
28%
2
3
4% 4
50% 5
Inference:
From the above table it is inferred that 66% of the employees opine are satisfied with
the leave facilities in the organization and 30% are disagree with it.
11. The kind of work I do makes me responsible for my activities.

2. Agree 56
3. Undecided 5
4. Disagree 3
RESPONSIBLE
No of Respondents
5% 3%1% 1
35%
2
3
4
56%
5
Inference:
From the above table it is inferred that 91% of the employees opine that work they do
makes them responsible for their activities.
Test 1
Null Hypothesis: Presence of hygiene factors doesn’t prevent dissatisfaction.
Alternative Hypothesis: Presence of hygiene factors prevents dissatisfaction.
H
Y
G
I HUMAN RESOURCE DEPARTMENT
Satisfied Dissatisfied
E
N
E
TOTAL
Present 76 12 88
F
A
C Absent 5 7 12
T
O
TOTAL 81 19 100
R
S
O E (O-E) (O-E)2 (O-E)2/E

76 71 5 25 0.3
12 17 -5 25 1.5
5 10 -5 25 2.5
7 2 5 25 12.5
0 X2=16.8
Degree of freedom= (2-1) (2-1) =1
Tabulation value of X2 for 1 degree of freedom=3.841
Conclusion:
Since the calculated value of chi square is greater than tabulated value of
chi square at 25% level of significance, null hypothesis is rejected. Hence we conclude
that presence of hygiene factors prevent dissatisfaction.
Test II
Null Hypothesis: Presence of motivational factors doesn’t leads to job satisfaction.
Alternative Hypothesis: Presence of motivational factors leads to job satisfaction.
M
O
T HUMAN RESOURCE DEPARTMENT
I
V F TOTAL
Present 67 8 75
A A
T C
Absent 14 11 25
I T
O O TOTAL 81 19 100
N R
A S
OL E (O-E) (O-E)2 (O-E)2/E
67 60.75 6.25 39.06 0.6430
8 14.25 -6.25 39.06 2.7411
14 20.25 -6.25 39.06 1.9289
11 4.75 6.25 39.06 8.2232
0 X2=13.5362

Conclusion:
Since the calculated value of chi square (13.5362) is greater than tabulated
value of chi square at 5% level of significance, null hypothesis is rejected. Hence we
conclude that presence of motivational factors leads to job satisfaction.
DATA ANALYSIS AND INTERPRETATION OF ICICI
 At work, I am always identified by the tasks I perform.

S.No. Options No. of Respondents
2. Agree 58
3. Undecided 5
4. Disagree 7
TASK IDENTITY
No. of Respondents
7% 3%
5% 27%
1
2
3
4
5
58%
Inference:
From the table it is referred that 85% of the respondents opine that there is task
identity in the organization and 5% are undecided and 10% disagree with it.
 I am always informed of expectations and my current performance.

2. Agree 52
3. Undecided 6
4. Disagree 20
FEED BACK
No. of Respondents
8% 14%
20% 1
2
3
4
6%
5
52%
Inference:
feedback and 6% are undecided and 28% disagree with it.
 Goals are mutually set here.

2. Agree 31
3. Undecided 22
4. Disagree 20
TARGET SETTING & INVOLVEMENT
No. of Respondents
9% 18%
20% 1
2
3
4
31% 5
22%
Inference:
From the above table it is inferred that 49% of the employees opine that there is target
setting & involvement and 22% are undecided and 29% disagree with it.
 Rewards are commensurate with our appraisal ratings.

2. Agree 20
3. Undecided 10
4. Disagree 20
PERFORMANCE APPRAISAL AND REWARDS
No of Respondents
5%
20% 1
45% 2
3
10% 4
5
20%
Inference:
From the above table it is inferred that 65% of the employees opine that rewards are
commensurate with appraisal and 10% are undecided and 25% disagree with it.
 The organization counsels its members on career options & guides them too.
2. Agree 30
3. Undecided 25
4. Disagree 25
CAREER PLANNING
No of Respondents
0% 20%
25% 1
2
3
4
25% 30% 5
Inference:
career planning and 25% are undecided and 25% disagree with it.
 Training is facilitative and helps me to perform better.

2. Agree 40
3. Undecided 10
4. Disagree 15
TRAINING AND DEVELOPMENT
No of Respondents
15% 0%
1
10% 35%
2
3
4
40% 5
Inference:
From the above table it is inferred that 75% of the employees opined that the training
helps them to perform better and 10% are undecided and 15% disagree with it.
 I need not worry about my job as long as I meet the standards.

2. Agree 50
3. Undecided 5
4. Disagree 8
JOB SECURITY
No of Respondents
8% 2%
5% 1
35%
2
3
4
50% 5
Inference:
From the above table it is inferred that 85% of the employees opine that there is job
security and 5% are undecided and 10% disagree with it.
 The conditions need to be far improved.

2. Agree 40
3. Undecided 15
4. Disagree 20
WORKING CONDITIONS
No of Respondents
10% 15% 1
20% 2
3
4
15% 40% 5
Inference:
From the above table it is inferred that 55% of the employees opine that working
conditions need to be improved and 15% are undecided and 30% disagree with it.
 I have always been rewarded for the contribution I have made.

1. StronglyNo
agree
of Respondents 20
2. Agree 38
3. Undecided 9
4. Disagree 23
10% 20% 1
RECOGNITION
23% 2
3
4
9% 38% 5
Inference:
From the above table it is inferred that 58% of the employees opine that recognition is
there for the contributions they have made and 9% are undecided and 33% disagree
with it.
 I am satisfied with the leave facilities in the organization.

2. Agree No of Respondents 45
3. Undecided 11
4. Disagree 25
RESPONDENTS
7% 12%
1
25% 2
3
4
45%
11% 5
Inference:
From the above table it is inferred that 57% of the employees opine are satisfied with
the leave facilities in the organization, 11 are undecided and 32% are disagree with it.
 The kind of work I do makes me responsible for my activities.

2. Agree 47
3. Undecided 5
4. Disagree 9
No of Respondents
RESPONSIBLE
9% 4%
1
5% 35%
2
3
4
47% 5
Inference:
From the above table it is inferred that 82% of the employees opine that work they do
makes them responsible for their activities.5% are undecided and 13% disagree with
it.
Test 1
Null Hypothesis: Presence of hygiene factors doesn’t prevent dissatisfaction.
Alternative Hypothesis: Presence of hygiene factors prevents dissatisfaction.
H
Y
G
I HUMAN RESOURCE DEPARTMENT
E
N
E
TOTAL
Present 75 15 90
F
A
C Absent 5 5 10
T
O
TOTAL 80 20 100
R
S
O E (O-E) (O-E)2 (O-E)2/E
75 71 4 16 0.22
15 17 -2 4 0.235
5 10 -5 25 2.5
5 2 3 9 4.5
0 X2=7.455

Conclusion:
Since the calculated value of chi square is greater than tabulated value of
chi square at 25% level of significance, null hypothesis is rejected. Hence we conclude
that presence of hygiene factors prevent dissatisfaction.
Test II
Null Hypothesis: Presence of motivational factors doesn’t leads to job satisfaction.
Alternative Hypothesis: Presence of motivational factors leads to job satisfaction.
M
O
T HUMAN RESOURCE DEPARTMENT
I
V F TOTAL
A A Present 70 8 78
T C
I T Absent 15 7 22
O O
TOTAL 85 15 100
N R
A S
L
O E (O-E) (O-E)2 (O-E)2/E

70 60.75 9.25 85.5625 1.4084
8 14.25 -6.25 32.8125 2.302
15 20.25 -5.25 27.5625 1.316
7 4.75 2.25 5.0625 1.065
0 X2=6.1364

Conclusion:
Since the calculated value of chi square (6.1364) is greater than tabulated
value of chi square at 5% level of significance, null hypothesis is rejected. Hence we
conclude that presence of motivational factors leads to job satisfaction.
QUESTIONNAIRE
Name of the employees :

Age :
Qualification :
Department :
1. At work, I am always identified by the tasks I perform. ( )
a. Strongly agree b.Agree c.Undecided d.Disagree e.Strongly
disagree.
2. I am always informed of expectations and my current performance( )
disagree.
3. Goals are mutually set here. ( )
disagree.
4. Rewards are commensurate with our appraisal ratings. ( )
disagree.
5. The organization counsels its members on career options & guides them too.
(
)
disagree.
6. Training is facilitative and helps me to perform better. ( )
disagree.
7. I need not worry about my job as long as I meet the standards. ( )
disagree.
8. The conditions need to be far improved. ( )
disagree.
9. I have always been rewarded for the contribution I have made. ( )
disagree.
10. I am satisfied with the leave facilities in the organization. ( )
disagree.
11. The kind of work I do makes me responsible for my activities. ( )
disagree.
12. Are you satisfied by the safety measures taken by the company? ( )
disagree.
13. Are you provided with any extra benefits apart from the basic pay? Yes/No. If
yes: ( )
a. Bonus benefits b.Canteen benefits. C. Free medical facility d. All
the above.
14. I am given enough freedom to decide on issues under my preview. ( )
disagree.
15. I am satisfied with the relations in the company. ( )
disagree.
CHAPTER-5
CONCLUSION
FINDINGS
 69% of the employees in the company feel that feedback seems to be more
often in the company and 23% don’t accept with this and 8% are undecided.
 56% of the employees in the company feel that goals are mutually set in the
company, 23% disagree with it and 21% of the employees are undecided.
 47% of the employees in the company fell that the equitable reward system is
effective in the organization and 31% disagree with it and 21% of the
employees are undecided.
 56% of the employees in the company feel that they have guidance of counsel
members in the carrier paths, 23% disagree with this and 21% are undecided.
 48% of the employees in the company are satisfied with succession planning
and 23% are dissatisfied and 19% are undecided.
 69% of the employees in the company feel that the working conditions in the
organization need to be far improved and 18% disagree and 13% are
undecided.
 48% of the employees in the company feel that there is recognition for their
work and 23% disagree with this and 19% are undecided.
 Majorities of the employees (91%) in the company feel that training programs
seems to be more effective in the organization to perform better.
 Safety measures seem to be good in the organization as majorities of the
employees (87%) are satisfied with the measures taken by the company.
 Majority of the employees (86%) feel that morale is increased by the job
security provided by the organization.
 Commitment is observed to be more in the majority of the employees (91%)
as they are responsible for their activities.
 It is observed and proved by chi square test that the presence of hygiene
factors in the organization prevents dissatisfaction among the employees and
the customers as well.
SUGGESTIONS
 Participate in planning and mutual goal setting may be introduced to increase

feedback opportunities and freedom at work place.
 Targets can be systematically set, measured objectively to reward high
performers.
 Performance linked incentives would ensure greater satisfaction and equity
amongst employees and 360 appraisal is recommended to minimize the
dissatisfaction level.
 Experience and merit should be recognized in the form of promotions, job
enrichment and job rotations.
 Letters of appreciation, presence & mementos could be given at employee
congregation as a mark of recognition and appreciation.
 Working conditions shall be improved by using dust filters, using of sound
mufflers, planting of trees etc.
 Career counseling activities may be implemented with true sprit.
 The company needs to implement sound succession planning system to
increase morale and satisfaction of employees.
 It is observed and proved by chi-square test the presence of motivation factors
in the organizations leads to greater satisfaction among employees as well as
customers.
 It is found that HR initiative is the major factor that influences the satisfaction
of both the employees and the customer.
 HRD is the department in any organization which recognizes the major facets
of the employees, the customers and on the whole the organization.
CONCLUSION
 Life Insurance Sector witnessed a lot of change after the year 2000 as the IRDA
act came into existence.
 Until 1999, the Life Insurance field was mainly operated by Life Insurance
Company of India and LIC was the sole Life Insurance seller.
 Keeping in view prior 1999 LIC recruited mainly insurance agents and
Development Officers at a very large scale.
 After 2000, the Insurance Sector witnessed more than 14 companies making its
way into insurance operations.
 After 2000, there was a mass recruitment of people into insurance field.
 Employment according to March 31st, 2005 census on pay roll basis in all the 14
companies reached to 2 lakh employees.
 According to 2004, 31st March census the insurance consultancy reached 15.58
lakhs.
 HRD process in insurance is more at the marketing side as insurance selling is
purely on marketing basis.
 Hence forth, the HRD processes in an insurance sector are mainly projects on
recruitment of more and more insurance consultants and officials at marketing
side.
CHAPTER-6
BIBLIOGRAPHY
BIBLIOGRAPHY
1. C.R.KOTHARI, Research Methodology, Vishwa Prakasham, New Delhi, 2 nd

edition.
2. S.P.GUPTA, Statistical Methods, Sultan Chand & sons.
3. DAVID A DECENZO, STEPHEN P.ROBBINS, Human Resource Management.
4. P.SUBBA RAP, Human Resource Management.
5. L.M.PRASAD, Human Resource Management.
6. FRED LUTHANS, Organization Behavior.
7. ROBERT H.RONDA, Human Resource Development.
Websites:
www.google.com
The information on HRD in Life Insurance Sector is
extracted.
www.licindia.com
This is the official website from which the information on company
has been taken.
www.iciciprulife.com
This is the official website from which the information on company
has been taken.
www.indianinsurancecouncil.com
The official website from which the insurance data is collected.
www.irdaindia.org
The official website from which the information on Insurance Regulatory
Development Authority has been collected.

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HUMAN RESOURCE DEVELOPMENT IN LIFE INSURANCE SECTOR

Project submitted in partial fulfillment for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Osmania University, Hyderabad – 500007

HYDERABAD PRESIDENCY SCHOOL OF MANAGEMENT

Affiliated to Osmania University

Behind Qutub Shahi Tombs, Puppalguda

I hereby declare that the Project Report entitled Human Resource

Name of the student : RUBINA FATIMA

Signature of the student

I take this opportunity to express gratitude to the faculty members

At micro level, Human Resource Development is related with grass-root development

Chapter no. Chapter name Page no.

4. DATA ANALYSIS AND INTERPRETATION 60

All aspects of Human Resource Development focus on developing a more efficient

RESEARCH DESIGN : Descriptive.

Data is collected from primary and secondary sources.

The questionnaire was administered through contacts with respondents.

Sample size : 100

 To study the Human Resource Department in Life Insurance Sector.

NATURE OF HUMAN RESOURCE MANAGEMENT:

SCOPE OF HUMAN RESOURCE MANAGEMENT:

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT:

Human Resource Development has got four crucial ingredients to be

They are as given below:

In a Life Insurance Sector there are:

In its inception the category classified for an organization is:

Organization has to serve on the ‘Professional Methodology’.

• Secondary Process: Under secondary process persons starts from ‘Agent –

• Under Life Insurance Sector it is to do with the objectives of the

• Under Organization: Entire Administrative objective related to org & also

Teams – Life Insurance:

Organization – Life Insurance:

• The life insurance organization has to be a learning organization.

• Its development is the development of the organization.

TRAINING PROCEDURE IN LIFE INSURANCE SECTOR:

1. Internal Environment: The factors for internal environment are:

• This is done when the organization comes to a conclusion that there is a

• The employer checks whether the respected employee is performing at a

• The job which is being assigned to the designated individual of the

Training Procedure: Training procedure in life insurance companies are 2 fold:

Training Procedure under Recruitment Training:

Training Procedure as per the IRDA Act:

Training methodology as per IRDA is as follows:

Recruitment Procedure of an Insurance Consultant:

Training Within the Organization:

 Training within the organization is under taken by the development officer.

 A person remains an Insurance Consultant at an entry level.

All India High Net Worth Agent – LIC of India:

 AIHNWA is an Agent who is serving the “HIGH NETWORTH

 Wealth manager is a person who is selected by corporate office; again the

Chief Life Insurance Advisor – LIC of India:

 Office Allowance: BM – 1,000 P.A , DM – 8,500 P.A, ZM – 17,000 P.A,

Housing Finance Agents:

 Sale deep for 15 years.

• Process Training is related to the organization, its setup.

Conventional Plan Category:

Group Insurance Schemes:

Soft Skills Development:

RECRUITMENT AND PLANNING IN LIC:

 Recruitment is a process where a qualified person, with a specialized skill set

Board Secretariat: Board Secretariat is into 2 planning:

Corporate Communication: This department is into 2 functions: