I hereby declare that this project titled “Recruitment Process at Life Insurance Corporation” has been genuinely undertaken and completed by me. All the details, facts, findings and suggestions included in the report have been collected, analyzed and included into the report on the basis of study done by me. I would further like to declare that this is an original piece of work without any concorted figures and any work of duplication and plagiarism. Thank you.

Mohd Aamir BBA – III 2010-2011



Dated:- 28th of November, 2010


This project is the fruit of many experiences, challenges and relationships involving great many people to whom I am more indebted than I can possibly acknowledge. Some however deserve special thanks. I must begin by thinking those who have supported me through my journeys. I wish to thank all who have directly and indirectly contributed to my research and writing up to this dissertation, making it such an enlightening, enjoyable and momentous intellectual experience. I would like to extend my profound gratitude and appreciation to my devoted parents, my brother and sister for their encouragement and immeasurable moral support throughout the tough times. They have been a loving and constantly restorative counterbalance to life. Without their patience and love, I would have never been able to make it through this intellectual endeavor. I would like to specially thank Mr.Rakesh Lal ,for his readiness to give of his time and knowledge through his constructive advice and guidance throughout the process of this thesis that kept me on a sound research path while his good nature and humbleness made working with him such a pleasure. Also I would like to acknowledge Mr Nasir Jahan BBA project lecturer Trikuta Collegeof computer & management sciences (affiliated with Jammu University) for her insightful comments and the lectures on how to approach and improve the quality of the research, which has been of great value and import to my thesis. I also express my gratitude to the practitioners in the field who participated in my survey. Their candid responses solidified my purpose for embarking upon this learning journey. I owe special thanks to all the respondents particularly retailers and wholesalers for the support to enhance my way of conducting the research. Special thanks go also to my colleagues from the BBA program for their cooperation and their constructive discussions.




1. INTRODUCTION………………………………………………………...... 1.1. Meaning of Human Resource management…………………... 1.2. Importance of Human Resource management…..…………… 1.3. Scope of Human Resource management……………………… 1.4. Recruitment Procedure…………………………………….….. 1.5. Methods of Recruitment……………………………………...... 1.6. Process of Recruitment…………………………………….…... . 2. COMPANY PROFILE…………………………………………………...... 2.1. Products and Services………………………………………...... 2.2. Life Insurance Policy List…………………………………........ 3. OBJECTIVES OF STUDY………………………………………………... 1.1. Scope of Study………………………………………………….. 1.2. Sampling……………..………………………………………..... 4 DATA ANLYSIS AND INTERPRETATION…………………………... 5. CONCLUSION………..………………………………………………….... 6. RECOMMENDATION…………………………………………………… 7. LIMITATIONS…………………………………………………………..... 8. QUESTIONNAIRE ………………………………………………………. 9 .BIBLIOGRAPHY …………………………………………………


After generating the resumes from the sites the next step is to shortlist the resume which best suite the requirements. My job profile was to generate resumes from the various job sites such as Employment exchange. It is a methodology in which the particular organization works and how a new candidate could be recruited in such a way that he/she would be fitted for the right kind of career. My job profile was to handle RECRUITMENT in my project.INTRODUCTION The project report is about recruitment and selection process that’s an important part of any organization which is considered as a necessary asset of a company. There are 2 forms of interview that a candidate can appear for: 1. I started my job as HR Trainee. It gives a organizational structure of the company. Now the short-listed candidates have to be given a phone call in order to find out their interests and schedule them for interview. Automobile Showrooms etc. Personal Interview. Telephonic Interview. The senior sales manager narrated me the whole procedure. Selection process or activities typically follow a standard patter. There are two types of factors that affect the Recruitment of candidates for the company  Internal factors  External factors The objective of selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. beginning with an initial screening interview and concluding with final employment decision. according to the requirements of the company. In fact. 2. 4 . recruitment and selection gives a home ground to the organization acumen that is needed for proper functioning of the organization.

It is said if right person is appointed at right place the half work has been done. 5 . In such form of an interview the candidate personally appears in front of the interviewer and gives his interview. thoroughly evaluating qualified candidates and selecting the most qualified candidate. The project report is all about recruitment and selection process that’s an important part of any organization.Personal Interview This is regarded to be the BEST FORM of interview. Telephonic Interview Sometimes an interview is taken on the phone. what the various method used for recruiting the candidates and on what basic the selections is done. Role of Human Resource in Recruitment Human Resource is a basic need of any work to be done. so it is necessary to enquire into the difference in human behaviors”. “There are great differences in development between countries which seem to have roughly equal resources. According to ARTHUR LEWIS. identifying qualified candidates. defining a selection strategy. A telephonic conversation is done between the interviewer and the interviewee where the interviewer calls up the candidate via phone and conducts the interview. talents and experience. Their selection involves developing a list of qualified candidates. This is regarded to be the best form of interview as the interviewee has the best chances of making his points clear in front of the interviewer. Jammu and tried to find out which methods and various other information related to recruitment and selection and tries to come to a conclusion at what time mostly the manpower planning is don’t . Recruitment highlights each applicant’s skills. . In this project I have tried to cover all the important point that should be kept in mind while recruitment and selection process and have conducted a research study through a questionnaire that I got it filled with all the sales managers of the LIFE INSURANCE CORPORATION.

Meaning Of Human Resource Management Human Resource plays a crucial role in the development process of the modern economics. human resource management means employing people. donor program. policy Strategic recommendations. • Compensation: Salary and benefit surveys. the basic nature of distinction lies in the scope or coverage and evolutionary stage. ability etc. talent. dental insurance. complaint / grievance procedures. labor administration. job descriptions. labormanagement relations. human assent management etc. In simple sense. Human resource management is the management of employee’s skill. maintaining and compensating their services in tune with the job and organizational requirements. supervision of department staff. aptitude. organizational evaluation. employee –employer relationship. labor management relationship. developing their resources. • Employee relations: Disciplinary processes. County Board relations. job evaluation. 6 . life insurance. disability insurance. creativity. and others. uniform allowance. sick leave. utilizing. job descriptions evaluation. They are labor management. knowledge abilities. section 125 plan. industrial relationship. different terms are used for denoting Human Resource Management. • Benefits: Health insurance. paid holidays. retirement benefits. human capital management. Though these terms can be used differently widely. incident investigations. educational incentive. vacation. Functions of Human Resource Management • Administration: planning.

resolution of enrollment or claim problems. total package costing. departmental budget. • Record-keeping: Performance appraisal: Employee files. insurance receivables. • Health and safety: Employee assistance. accounts payable. safety records and other administrative Job posting. payroll records. advertising. • Payroll administration: Computer-based or manual evaluation systems. insurance receivables. County approved leaves of absence. drug testing. total package costing. Educational assistance. • Fiscal: Staffing budgets. employee service awards. testing administration. workers compensation claims. employee newsletter. light duty assignments for temporary periods. employee discounts for recreational spots. insurance fund management. • files . insurance fund management. post-offer employment testing. rights upon return to work. litigation files. background investigations. supervisory training. • Leaves of absence: State and / or Federal Family and Medical Leave rights. 7 . compliance with timeliness standards.• Employee services: Enrollment in benefits. safety compliance and training. employment interviews.

• Recruitment: Recruitment is defined as a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures fir meet the requirement of the staffing schedule. • Selection: After identifying the sources of human resources. severance benefits. • Rights . Benefits orientation for new and transferring employees and supervisory newsletter. • Training and development: County-wide needs assessment. exit interviews Salary/wage plans. employee training and workshops. • Salary and benefits : Separations and terminations: upon termination of employment. unemployment compensation. employee benefits. 8 . the management has to perform the function of selecting the right man at right job and at the right time. development of supervisory and management skills. searching for prospective employees and stimulation helps too apply for jobs in an organization.

resulting in unavoidable consequences. when recruitment fails to meet organizational needs for talent. Make sue that there is match between cost and benefit. Furthermore. Thus the effectiveness of the recruitment process can play a major role in determining the resources that must be expended on other HR activates and their ultimate success. Whereas. Ensure that’s the selected candidate stays longer with the company. Helps the organization to create more culturally diverse workforce. This can distort traditional wages and salary relationship in organization. the poor quality of selection means extra cost on training and supervision.Importance of Human Resource Management • • • • Attract highly qualified and competent people. 9 . a typically response is to raise entry level pay scales.



Recruitment has been regarded as the most important function of the HR department . Recruitment is the discovering of potential applicant for actual or anticipated organizational vacancies. Edwin B. even the best plans. Accordingly the purpose of recruitment is to locate sources of manpower to meet the job requirements and job specification. It is defined as . Yoder points out that recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employee effective measures to attracting that manpower in adequate number to facilitate effective selection of an effective workforce. organization chart and control system would not do much good. “a process to discover the sources of manpower to meet the requirements of staffing schedule and to apply effective measures for attracting the manpower to adequate number to facilitate effective selection of an effective workforce” .Recruitment: Recruitment is “hiring” of employees from outside. The process begins when new recruits are sought and ends when their application are submitted. “It is the process of finding and attracting capable applicants for employment.” 12 . because unless the right type of people are hired. Flippo defines recruitment as. The result is a pool of applicants from which new employees are selected. “the process of searching for prospective employees and stimulating them to apply for the jobs in the organization”.

This is mainly done with the cooperation of the placement office of the college. technical magazines and brochures. Senior post is largely filled with such methods. Sometimes. Other direct methods include sending recruiters to conventions and seminars. in trade and professional journals. Indirect Method: Indirect method involves mainly advertising in newspapers.Methods of Recruitment: Dunn and Stephens summaries the possible recruiting methods into three categories. and lower level administrative employees. employees contact with public and mannered exhibits. as well as scientific. clerical employees. and using mobile offices to go the desired centers. Advertisements in newspapers and or trade journals and magazines are the most frequently used methods. Local newspaper can be good sources of blue collar workers. namely 1: Direct method 2: Indirect method 3: Third party method Direct Method: The direct method includes sending of the recruiters to different educational and professional institutions. Advertising is a very useful for recruiting blue color and hourly worker. One of the widely used methods is sending the recruiters to different colleges and technical schools. firms directly solicit information form the concerned professors about student with an outstanding records. and technical employees. 13 . on the radios. professional. setting up exhibits at fairs.

Professional organization or recruiting firms maintain complete information records about employed executive. Employers inform them of their personnel requirement. They operate placement services where complete bio data and other particular of the student are available. state agencies. The search for the top executive might include advertisement in a national periodical. while job seekers get information for them about the type of job are referred by the employer. Schools and colleges offer opportunities for recruiting their student. whereas the advertisement of the blue color jobs usually confine to the daily newspaper. First. to visualize the type of applicants one is trying to recruit. engineers and executives. Third. Second. to decide where to run the advertisement . computer staff. technical workers. are the main agencies for the public employment. Third Party: These include the use of commercial or private employment agencies. They specialize in specific occupation. They charge a small fee from the applicant.The main point is that the higher the position in the organization the more dispersed advertisement is likely to be. three main points need to be borne in the mind before an advertisement in inserted. These firms are looked upon as the head hunters. and friends and relatives. management consulting firms. salesmen. State or public employment agencies are also known as the employment or labour exchanges. to write out a list of advantages the company offers. 14 . not only in which area. general office help. and placement offices of schools colleges and professional associations recruiting firms.wide circulation. or why should the reader join the company. accountant. Private employment agencies are the most widely used sources. but also in which newspaper having a local. According to the Advertisement tactic and strategy in personnel Recruitment. These firms maintain complete information records about employed executives. raiders and pirates by organization which loses their personnel through their efforts. indoctrination seminars for college professors. state or a nation.

especially those short listed.Organizational culture .Role of trade unions . 4: Number of candidates at various stages of the recruitment and selection process.Company’s product . Factors Affecting Recruitment There are two types of factors that affect the Recruitment of candidates for the company.Evaluation of Recruitment Method The following are the evaluation of the recruitment method: 1: Number of initial enquires received which resulted in completed application forms 2: Number of candidates recruited. 1: Internal Factors: .Growth rate of the company .Cost of recruitment 15 .Company’s size .Quality of work life . 3: Number of candidates retained in the organization after six months.Company’s pay package .

Recruitment needs .Labor market condition .Political. legal and government factors .Supply and demand factors .Organizational and personal policies 16 .Recruitment sources .2: External Factors: .Government polices .Employment rate .Information system Factors to be undertaken while formulating recruitment policies The following factors should be undertaken while formulating the policies – .Recruitment cost .

and such as the efficiency in processing paper work association with the application. The individual take the decision usually on three different basic: 1: The objective factors 2: The critical contact 3: The subjective factor The objectives theory views that the process of organizational choice as being one of weighing and evaluating set of measurable characteristic of employment offers. the nature of job to performed. the subjective theory emphasizes the congruence. opportunity for advancement. Whereas. 17 . On the other hand. benefits . the nature of the physical facilities. the critical contact theory suggests that the typical candidates is unable to make a meaningful differentiation of organization’s offers in terms of objective or subjective factors. same way the prospective employee also has taken the decision whether or not to apply for the given job vacancy. location. because of his limited or very short contact with the organization. Choice can be made only when applicant can readily perceive the factors such as the behavior of the recruiters. such pay. Here the choices are made on highly personal and emotional basis.THEORIES REGARDING RECRUITMENT: Recruitment is two way street: it takes a recruiter has a choice whom to recruit. and education opportunities.

Preliminary Assessment: The short listed candidates go through a preliminary round of interviews. To have more data on the functional skills.Recruitment Process: The actual steps involved in recruitment follow a well defined path: Application shortlist: In this step. 18 . the candidates may be given a business case for analysis and presentation (This is done for certain positions only). we shortlist the resume received from various sources based on the suitability for the requirement. Final interview: Here the candidates who successfully clear the first round of interview go through another round of interview with one or more of the functional heads. Medical Evaluation: Candidates who are selected by Colgate are asked to undergo a medical test. This interview lays more emphasis on functional competencies.


2: JOB COMPATIBILITY QUESTIONNAIRE (JCQ): Job compatibility Questionnaire was developed to determine whether an applicant’s preference for the work match the characteristic of the job. The underlying assumption of JCQ is that. 4: Cost of recruitment 5: Time lapsed data. 3: Retention and performance of the candidate selection.Evaluation of Recruitment Process: The following are the evaluation of the recruitment process: 1: Return rate of application sent out. 6: Comments on image projected. These are as follows: 1: REALISTIC JOB PREVIEWS (RJP): Realistic Job Previews provides complete job related information to the applicants so that they can make the right decision before taking up the jobs. turnover and job satisfaction. greater the compatibility between an applicant’s preference for the job and characteristic 20 . It includes positive and the negative aspects of the job. 2: Number of suitable candidates for selection.absenteeism. The JCQ is designed to collect information on all aspects of the job which have a bearing in on employee performance . Philosophies of Recruitment Basically there are two Philosophies of recruitment.

of the job as perceived by the job seeker. the greater the probability of employee effectiveness and longer the tenure. Human Resource department at LIC: Human resource department Recruitment and selection Department Resource allocation Department Training and development Department 21 .

Meaning of Insurance: Facilitates reimbursement during crisis situation insurance means promise of compensation for any potential future losses. There are different insurance companies that offer wide range of insurance purchase can select as per own convenience and preference. Several insurance provide comprehensive coverage with affordable premiums .Premiums are periodical payment and different insurers offer diverse premium option. The periodical insurance premium are calculated according to the total insurance amount. The main meaning of insurance are used as effective tools of risk management .Quantified risks of different volumes can be insured. Major types of insurance are as mentioned below:  Life insurance: Descendents family receives financial benefits. Life insurance also offers paid proceeds to the beneficiary.  Automobile insurance: Usually automobile insurance cover damages and legal financial expenditure of the automobile drivers.  Health insurance: Health insurance cover the expenditure associated to treatment and medical expenditure.  Credit insurance: Borrowers often replay debt loans and mortgages due to certain unavoidable circumstances, credit insurance can be of great help during suh crisis.  Property insurance: Property protection insurance provide protection from risks associated to theft fire flood etc. This type of insurance can be further classified into specialized form as follows:  Fire insurance  Earthquake insurance  Flood insurance  Home insurance 22

 Boiler insuranceAt present insurance market is much vibrant than before and this has an impact on the rates of different insurance premium.

Types of Insurance

1) Life Insurance: In this policy, the insurance company pays in case of the demise of the policy holder or at the time of the maturity of the policy. Now a day a new policy has been launched by LIC in which you will be covered under the insurance policy even after the maturity of the policy 2) Property Insurance: This insurance helps you to prevent the losses against theft, fire, burglary or any natural calamity like Earthquake, Floods etc. based on the points mentioned in the policy. 3) Health Insurance: Health Insurance consists of a package of various types of insurance related to health. For example Medical Insurance is one the major part of health insurance however in most of the cases, dental issues are not covered in this policy so there is another Dental Insurance policy which covers dental problems and is also a part of health insurance. 23

4) Auto Insurance: Any financial loss due to accident of a vehicle is covered under the auto insurance policy. Sometimes the expenses on the medicines for treating injuries and all other medical expenditure are also covered under this policy. 5) Travel Insurance: Loss of personal belongings while traveling, medical coverage, delays in the travel are all part of the travel insurance policy. 6) Insurance at Amusement Points: This is a one of the new kinds of insurance policy (not very popular in India) where in you are insured against the equipments that you are using at the amusement joints. For example: if you are using boats for an independent boat ride , then they will charge you with some extra money for an property loss(say $5) and in case of any property damage you will not be liable to pay any amount required to repair the damaged property. 7) Credit Insurance: This type of insurance pays the loans of the policy holder in case of any accident of the policy holder or job loss or death

Concept of Insurance
1) Human life is subject to risk Human life is subject to risk 2) Loss of Human life means loss of income Loss of Human life means loss of income 3) Risk has element of unpredictability 4) The concept of insurance is that the losses are made good by contribution from many. Few are made good by contribution from many. 5) It is based on the law of large numbers. It stemmed from the need of man to find a solution for mitigation of losses. It also reflects the nature of man to find a solution collectively. The nature of man to find a solution collectively.


Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.Insurance Sector In India The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. 25 .

The Bombay Mutual Life Assurance Society. The Oriental Life Insurance Company. With the establishment of the Oriental Life Insurance Company in Kolkata. and also the country's largest investor. It was founded in 1956. the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India. and it charged Indians heftier premiums.03 billion).LIFE INSURANCE COMPANIES The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance company in India. formed in 1870. Other insurance companies established in the preindependence era included. Headquartered in Mumbai. which is considered the financial capital of India. the business of Indian life insurance started in the year 1818.2 million agents for soliciting life insurance business from the public. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. was the first native insurance provider. It is fully owned by the Government of India. It has assets estimated of 9. It also funds close to 24. and has a network of around 1. Europeans in India were its primary target market. • • • • • • Bharat Insurance Company (1896) United India (1906) National Indian (1906) National Insurance (1906) Co-operative Assurance (1906) Hindustan Co-operatives (1907) 26 .31 trillion (US$ 202.6% of the Indian Government's expenses. The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches. the first corporate entity in India offering life insurance coverage.

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. It witnessed. The first half of the 20th century also saw a heightened struggle for India's independence. providing the first regulatory mechanisms in the Life Insurance industry. Though the concept of insurance is largely a development of the recent past. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. and in between them the period of world wide economic crises triggered by the Great depression. later with the efforts of eminent people like Babu Muttylal Seal. and covered Indian lives at normal rates. 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. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. India's First War of Independence. The Life Insurance Act and the Provident Fund Act were passed in 1912. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Starting as Indian enterprise with highly patriotic motives. This had adversely affected the faith of the general public in the utility of obtaining life cover. The Swadeshi movement 27 . adverse effects of the World War I and World War II on the economy of India. insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. 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. Life Insurance in its modern form came to India from England in the year 1818. the foreign life insurance companies started insuring Indian lives. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. However. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil.The first 150 years were marked mostly by turbulent economic conditions.

However. 2. providing them adequate financial cover at a reasonable cost. The first two decades of the twentieth century saw lot of growth in insurance business. In 1907. 28 . The Indian Mercantile. 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956. Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko. National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. putting the Indian companies at a disadvantage.2. the Life Insurance Companies Act. Nationalization was accomplished in two stages. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.of 1905-1907 gave rise to more insurance companies. and later.298 crore in 1938. that life insurance in India was nationalized. The Life Insurance Companies Act. 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. in Calcutta. From 44 companies with total business-in-force as Rs. 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. and the Life Insurance Corporation of India was created on 1st September. 1956. About 154 Indian insurance companies. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. 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. But the Act discriminated between foreign and Indian companies on many accounts.44 crore. it was much later on the 19th of January. and the Provident Fund Act were passed. initially the management of the companies was taken over by means of an Ordinance. In the year 1912. The United India in Madras. Prior to 1912 India had no legislation to regulate insurance business. 1956. the ownership too by means of a comprehensive bill. house of the great poet Rabindranath Tagore. it rose to 176 companies with total business-in-force as Rs.

Ahmedabad. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. 992 satellite offices and the corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. by 1985-86 LIC had already crossed 7000. and it took another 10 years for LIC to cross 2000.00 crores only in the year 1969-70. 2005. 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. From then to now. Chennai. Bangalore. LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller.32.01. It worked wonders with the performance of the corporation.955 new policies by 15th Oct. LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. New Delhi. It has crossed the milestone of issuing 1. Kolkata. 109 divisional offices. Re-organization of LIC took place and large numbers of new branch offices were opened. Apart from on-line Kiosks and IVRS. and branches were made accounting units. apart from its corporate office in the year 1956. Today LIC functions with 2048 fully computerized branch offices.LIC had 5 zonal offices. posting a healthy growth rate of 16. 29 .00 crore Sum Assured on new policies. With a vision of providing easy access to its policyholders. 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. As a result of re-organization servicing functions were transferred to the branches.00 crore mark of new business. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. 8 zonal offices. Info Centers have been commissioned at Mumbai. leaner an closer to the customer. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. LIC has issued over one crore policies during the current year.00 crores of New Business in 1957 the corporation crossed 1000.67% over the corresponding period of the previous year. 33 divisional offices and 212 branch offices. But with re-organization happening in the early eighties. It may be seen that from about 200. Pune and many other cities. Hyderabad.

LIC formed by an Act of Parliament. 1870: Bombay Mutual Life Assurance Society. the first Indian life insurance company started its business. the first life insurance company on Indian soil started functioning. 30 . the first general insurance company established in the year 1850 in Calcutta by the British. can trace its roots to the Triton Insurance Company Ltd. LIC Act.. The General insurance business in India. viz. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. Some Of The Important Milestones In The Life Insurance Business In India Are: 1818: Oriental Life Insurance Company. on the other hand. 1956. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized.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. with a capital contribution of Rs. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 5 crore from the Government of India.

107 insurers amalgamated and grouped into four companies viz. set up. the National Insurance Company Ltd. frames a code of conduct for ensuring fair conduct and sound business practices. the Oriental Insurance Company Ltd. 1972: The General Insurance Business (Nationalization) Act. the first company to transact all classes of general insurance business.. and the United India Insurance Company Ltd. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. a wing of the Insurance Association of India. GIC incorporated as a company.Some Of The Important Milestones In The General Insurance Business In India Are: 1907: The Indian Mercantile Insurance Ltd.. the New India Assurance Company Ltd. 31 . 1957: General Insurance Council. 1972 nationalized the general insurance business in India with effect from 1st January 1973.

Comparison Between The Share Of LIC And Other Private Players In Indian Market: LIC 78% Private PLAYER 22% 32 .

and contributed around 7 % of India's GDP in 2006.aspx?d=CDB&f=srID:6080). created huge surpluses.Current status: LIC building. and employs over 1.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. which started its business with around 300 offices. 5 for a US http://data. New Delhi. 109 divisional offices and 8 zonal offices. Life Insurance Corporation of India. The organization now comprises 2048 branches. It also operates in 12 other countries.6 billion).org/Data.149 agents. which commanded a monopoly of soliciting and selling life insurance in India. 1986. Over its existence of around 50 years. at Connaught Place. primarily to cater to the needs of Non Resident Indians. designed by Charles Correa. 5. The corporate Office of LIC is in Mumbai. has grown to 25000 servicing around 180 million policies and a corpus of over 8 trillion (US$ 173. 33 .un.002. The Corporation.

Indian as well as transnational Life Insurance brands. with the lion's share of 55%. the monopolistic position of the Life Insurance Corporation of India was diluted. and it has had to compete with a number of other corporate entities.The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. and the subsequent relaxation of state control over several sectors of the economy.With the change in the India's economic philosophy from the early 1990s. However. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world) 34 . it still manages to be the largest player in the Indian market.

Bear in mind. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. keeping in view national priorities and obligations of attractive return. whose money it holds in trust. • • • • Promote amongst all agents and employees of the Corporation a sense of participation. leading to better market standing. without losing sight of the interest of the community as a whole. 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. thereby increase the goodwill and equity for the Company. 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. in the investment of funds.Objectives of LIC of India: • • Spread and provide life insurance to the masses at a reasonable cost. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. the primary obligation to its policyholders. 35 . Act as trustees of the insured public in their individual and collective capacities. • Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. • • Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. the funds to be deployed to the best advantage of the investors as well as the community as a whole. • • To attract potential employees into the rolls of the company To make a positive impact with our clients.

• LIC Guiding Principles: • • • • • • Recruit the best Accept personal responsibility Build an empowered team Building a shared vision and purpose Leadership Development Reward and Recognition 36 .

Under Unit Linked Fund. indexation and partial withdrawals.Products & Services /Polices: They have a full range of transparent. The Unit Linked Fund is designed to provide relatively more progressive capital growth wherein customer automatically receive the benefit related to the investment performance of the fund. They can choose between their unit linked fund or our with profit fund. They also offer customer a choice of investment options. Term (LifeShield). LifeSaver Plus). endowment (LifeSaver. EasyLife Plus. With Profits Fund guarantees that the selling price of the units will never fall. child policy (Young Achiever. The unit value of this fund is increased by crediting bonuses on a daily compounding basis. LIC products are modern and contemporary unitised products that offer unique customer benefits like flexibility to choose cover levels. on some of our products they offer a choice of fund options : • • • • Protector Fund Secure Fund Growth Fund Balanced Fund LIFE INSURANCE POLICY LIST 37 . LifeBond Plus). fixed term protection plan (Freedom LifePlan) and a 5 year recurring premium investment cum protection plan (LifeBond5). flexible and value for money products that include whole life (LifeLong). Pension (PensionPlus). SaveGuard Junior) single premium (LifeBond. The fund provides investment security to the capital.

Group Super Annuation Scheme lic policy 20. Group Savings Linked Insurance Scheme lic policy 19. BimaBachatlic policy 5. JeevanBharatilic policy 29. Group Mortgage Redemption Assurance Scheme lic policy 18. JeevanMitra(Triple CoverEndowment Plan) lic policy 38 . AnmolJeevan-I lic policy 4. CDA Endowment Vesting At 18 lic policy 7. Child Career Plan lic policy 9. Child Future Plan lic policy 10.1. Group Gratuity Scheme lic policy 15. JeevanAmritlic policy 26. JeevanAnuraglic policy 28. JeevanAkshay-V lic policy 25. AamAdmiBimaYojanalic policy 2. Jeevan Kishore JeevanChhayalic policy 30. JeevanMitra(Double CoverEndowment Plan) lic policy 32. AmulyaJeevan-I lic policy 3. JeevanMadhurlic policy 31. Group Leave Encashment Schemelic policy 17. Group Term Insurance Schemes lic policy 21. Health Plus lic policy 22. JeevanAadharlic policy 24. JanaShreeBimaYojana (JBY) lic policy 23. Educational Annuity Plan lic policy 11. Gratuity Plus lic policy 13. Fortune Plus lic policy 12. Group Insurance Scheme in Lieu Of EDLI lic policy 16. BimaNivesh 2005 lic policy 6. JeevanAnandlic policy 27. CDA Endowment Vesting At 21 lic policy 8. Group Critical Illness Riderlic policy 14.

JeevanNidhilic policy 34. JeevanPramukhlic policy 35. Jeevan Surabhi-20 Years lic policy 40. Management Team 39 . KomalJeevanlic policy 44. Policy-Limited Payment lic policy 58. Jeevan Surabhi-15 Years lic policy 39. The Endowment Assurance Policy lic policy 56. The Whole Life Policy. Jeevan Surabhi-25 Years lic policy 41. The Convertible Term Assurance Policy lic policy 55. ShikshaSahayogYojanalic policy 54. Money Plus-I lic policy 47. Profit Plus lic policy 53. 61. New JeevanSuraksha-I lic policy 52.33. The Money Back Policy-20 Years lic policy 59. New Janaraksha Plan lic policy 50. JeevanTaranglic policy 42. Market Plus lic policy 45.Single Premium lic policy. Marriage Endowment lic policy 46. New Bima Gold lic policy 49. The Money Back Policy-25 Years lic policy 60. New JeevanDhara-I lic policy 51. JeevanSaathilic policy 36. Jeevan Shree-I lic policy 38. Mortgage Redemption lic policy 48. The Whole Life Policy lic policy. JeevanVishwaslic policy 43. The Endowment Assurance 57. JeevanSarallic policy 37.

GIC of India OBJECTIVES OF THE STUDY: 40 . Dept. Vijayan -. Dept of Economic Affairs. of Financial Services .K. Secretary. Mehrotra – MD LIC Thomas Mathew T – MD LIC A K Dasgupta – MD LIC Arun Ramanathan – Secretary .Chairman • • • • D.Addl.C. Ministry of Finance • Sindhushree Khullar .Chairman cum MD T. Ministry of Finance • • Yogesh Lohiya . Export Import Bank of India. Venkat Subramanian ..S. Financial Services.T.Chairman & MD.

 To learn what is the process of recruitment that should be followed.  To know the need for training.  To study the various sources of recruitment used by LIFE INSURANCE CORPORATION.The main objectives for undertaking this research are:  To study the recruitment and selection procedure followed in LIFE INSURANCE CORPORATION. Meaning of Research 41 .

Research Method Process The research process is start with the situation analysis and formulation of hypotheses selecting from among various methods of research scope of the study.• Research is composed of two syllables. • Search means to examine closely and carefully. over again. • Research is an organized and systematic way of finding answers to questions. to probe. to test and try. • Applied research is designed with a practical outcome in mind and with the assumption that some group or society as a whole will gain specific benefits from the research. data collection. Sampling Unit • Sampling unit and element for this particular study was the people of the Jammu Sample Size • Sample size for this research was hundred people Sampling technique • Sampling technique used for this study was convenience technique Statistical Tool Used for Data Analysis ● Pi-chart ● Flow-chart ● Percentage 42 . a prefix ‘Re’ and a verb ‘Search’. Basic Research and Applied Research • Basic research is geared toward advancing our knowledge about human behavior with little concern for any immediate practical benefits that might result. data analysis and suggestion & solution. a new. • ‘Re’ means again.

interest etc. Implement the design. This statement gives direction to the research process . • • • Generate ideas on how to fulfill the need. The issue related to the problem may also be confirmed. period etc. Scope Of The Study: A complete study of any problem is well near non. And the problem solving steps in the situation analysis are: • • • Organize the knowledge about the system/situation.) the purpose of this limit is to make study manageable in the terms of the researcher’s aim.manageable would involve an vast mountain of data therefore the scope and dimension of the study should be encircled with reference to the tropical scope ( Like breadth and depth. Perform design based on the concepts. Analyze the model for problem solving ideas Significance Of The Problem: The research should be defined and pointing out its core nature and its importance. geographical area. 43 . Develop a functional model of the system/situation.Situation Analysis : A project process involves the following steps: • Recognition of a need .to me it means that the functional requirements have been clearly defined and stated.

etc. and be as specific as possible. or process was the event discovered? • • Method of detection. During testing? During Productions run? • Find out if there is a similar event in historical records. If the answer is "yes. test conditions. Internally? Externally? Find out when the event happened. or a set of premises. Check vendor Materials. usually the results of experience. Five basic steps are outlined below that will help determine what data to Collect: • Find out what happened. This may consist of numbers. particularly as measurements or observations of a set of variables.Data Collection Data refers to a collection of organized in formation . 44 . At what level in the overall system. or images. words. • Find out if there have been any recent changes. product. observation or experiment." it could save time by eliminating some data collection.

and CDA on confirming or falsifying existing hypotheses. The automatic data information gathering technique is usually desirable where continuous monitoring is necessary . and possibly different names. Data analysis is closely related to Data mining. Data is sometimes taken automatically through the use of electronic devices that send information directly to a database. where the EDA focuses on discovering new features in the data. in different fields Methods of Research: 45 . There are no standards for how to record or store data. and often uses data that was originally collected for a different purpose. Some people divide data analysis into exploratory data analysis and confirmatory data analysis. with less emphasis on making inference. but data mining tends to focus on larger data sets. Data Analysis Data analysis is the process of looking at and summarizing data with the intent to extract useful information and develop conclusions. Data analysis assumes different aspects. manually or automatically. There are many software packages on the market that can be readily tailored to fit specific needs.How Will Data Be Collected and Reported Data may be collected by either manual or automatic means. Most test results or observations are recorded manually on forms customized to collect specific information then input into a computer database. both retrieval and use become obviously better. When data is input into a computer.

• Correlation Method : to investigate the extent to which variations in one factor correlate with variations in one or more other factors based on correlation coefficient. • Case And Field Method: to study intensively the background. • Action Research: to develop skills or new approaches and to solve problems with direct application to the classroom or other applied setting. • Descriptive Method : to describe systematically a situation or area of interest factually and Accurately. • Casual-Comparative Or “Ex Post Facto” Method: to investigate possible cause-and-effect relationships by observing some existing consequence and looking back through the data for plausible casual factors. . and environmental interactions of a given social unit. • Developmental Method : to investigate patterns and sequences of growth and/or change as a function of time. • True Experimental Method: to investigate possible cause-and-effect relationships by exposing one or more experimental groups to one or more treatment conditions and comparing the results to one or more control groups not receiving the treatment. current status. often in relation to the Tenability of a hypothesis. random assignment being essential. Research Problem 46 . • Quasi-Experimental Method: to investigate the conditions of the true experiment in a setting which does not allow the control or manipulation of all relevant variables.• Historical Method: to reconstruct the past objectively and accurately.

the decision problem is translated a research problem .To ensure that the true decision problem is addressed . it is useful for the research to authic possible scenarios of the research results & then for the decision maker to formulate plans of action under each scenario. Research Design Marketing research can be classified as: 47 . The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences. The objective of the research would be defined clearly . For example. Thus.The decision problem faced by management must be translated into a market research problem in the form of questions that define the required to make the decision & how this information can be obtained. The corresponding research problem might be to assess whether the market would accept the new product. a decision problem may be whether to launch a new product .

In some cases the research will fall into one of these categories. The Questionnaire should be listed thoroughly prior to conducting the survey. These problems in life call for acceptable and effective solutions and for this purpose. Certain people about their experiences.  Exploratory Research Has the goal of formulating problems more precisely. so significant effort should be put into the Questionnaire Design . clarifying concepts.• • • Exploratory Research Descriptive Research Causal Research These classifications are made according to the objective of the research. surveying. Poorly constructed questions can result in large errors & invalidate the research data . Research was carried out at LIFE INSURANCE CORPORATION to find out the “Recruitment process”. research is required and a methodology applied for the solutions can be found out. financial problems. social. economical. gathering explanations. determine the proportion of the population that uses a product . The insurance sector is marked with a high level of attrition and 48 . gaining insight. It can be performed using literature search. Sources of Information: In everyday life human being has to face many problems viz. but in other cases different phases of the some research project will fall into different categories. focus groups & case studies  Descriptive Research It is more rigid then explanatory research & seeks to describes users of a product . eliminating impractical ideas & forming hypotheses. It has two basic types : Questionnaire Design: It is an important tool for gathering primary data .

etc. Secondary Data: Data was collected from books.S. I was particularly involved with the sourcing of candidates for the regions in Jammu. Gandhinagar and Sainik Welfare Board. it gave me the opportunity of involving myself directly with the recruitment process and analyzing the process so that suitable recommendations can be given. My area of focus was the recruitment particularly at LIFE INSURANCE CORPORATION. web sites. It is the data which has been collected by individual or someone else for the purpose of other than those of our particular research study. I was directly involved with the recruitment of candidates for the LIFE INSURANCE CORPORATION. Or in other words we can say that secondary data is the data used previously for the analysis and the results are undertaken for the next process. going through the records of the organization. The questionnaires were carefully designed by taking into account the parameters of my study. The data was collected through Employment Exchange Office. DATA COLLECTION Primary Data: Primary data was collected through survey method by distributing questionnaires to branch manager and other sales manager. Since my summer training was in the months of May-June.Pura 49 .therefore recruitment process becomes a crucial function of the organization. Amphalla for Recruitment of agents in LIC on the basis of following criteria:  Minimum Qualification: 12th  Area restricted: Between Vijaypur to Jammu Between Akhnoor to R. magazines. This project is centered on identifying best hiring practices in the insurance industries.

33% for data bank. 50 .DATA ANALYSIS AND INTERPRETATION Preferable sources for recruitment and selection Cam interviews pus Placm agencies ent Data bank Casual applicants 25% 34% 33% 8% In LIFE INSUARANCE CORPORATION 34% of the manager go for campus interviews. 25% from the casual application that are received and only 8% go for any placement agencies.

51 .Preferred way of recruitment Indirect Third party Direct 32% 65% 3% About 65% of the manager go for direct recruitment and selection and 32% go for indirect and 3% go for third party recruitment way.

Prefer to go for manpower planning? Yearly Quaterly No fixed tim e 20% 30% 50% Around 50% of the managers go for Quarterly manpower planning and 20% do not follow any pattern they don’t have any fixed where as 20% go for yearly. 52 .

33% go for data bank.Preferred sources for external recruitment are Cam Recruitm pus ent Placement Agencies Data Bank Casual Applications 25% 34% 33% 8% In LIFE INSURANCE CORPORATION 34% of manager go for campus interviews. 53 . 25% from the casual application that are received and only 8% go for any placement agencies.

30% prefer to take telephonic interviews where as only 10% go for video conferencing and rest 5% adopt some other means of interviews.Preferable form of interview Personal interviews Telephonic interview Video confrencing Other 5% 10% 30% 55% Most of the managers prefer personal interviews. 54 .

The conclusion is 55 . CONCLUSION This report presents the summary of the study and survey done in relation to the Recruitment and Selection in LIFE INSURANCE CORPORATION.Rating of HR practices of the company Verygood Good Average Bad 10% 30% 20% 40% 50% of the managers feel that HR department is good where and 30% say that’s its very good where as 20% says its average and only 10% manager feel it’s bad.

About 75% of the managers say that they prefer both internal as well as external source for recruitment and selection. That is why the search or headhunt of people should be of those whose skill fits into the company’s values. Most of the manager Prefer Personal interviews. Mostly the manpower planning is done Quarterly and 20 % do not follow any pattern they don’t have any fixed time. LIFE INSURANCE CORPORATION prefers to go for campus interviews and even casual application that are received for recruitment but they hardly prefer placement agencies. Selection process is good but it should also be modified according to the requirements and should job profile so that main objective of selecting the candidate could be achieved. 30% prefer to take telephonic interviews where as only 20% goes for video conferencing and rest 10% adopt some other means of interviews. The recruitment process at LIFE INSURANCE CORPORATION to some extent is not done objectively and therefore lot of bias hampers the future of the employees.drawn from the study and survey of the company regarding the Recruitment and Selection process carried out there. Most of the employees were satisfied but changes are required according to the changing scenario as recruitment process has a great impact on the working of the company as a fresh blood. new idea enters in the company. RECOMMENDATIONS 56 . About 65% of the mangers go for direct recruitment and selection and less number for mangers prefer indirect or third party. In LIFE INSURANCE CORPORATION most of the employees feel that’s the HR department is good.

If the manpower requirement is high and the recruitment team of the HR department alone cannot satisfy it. The recruitment and selection procedure should not to lengthy and time consuming. LIMITATIONS 57 . or tending to procure. then help from the placement agencies is needed. anything procuring. The recruitment and selection through placement agencies as the last resort and is utilized only when need. or commends to favor. or to secure acceptance and adoption. • • • • Time management is very essential and it should not be ignored at any level of the process. a favorable reception. as. • • Manpower requirement for each department in the company is identified well in advance.That which recommends. he brought excellent recommendations. The candidates called for interview should be allotted timings and it should not overlap with each other. Below mentioned are the recommendations after conducting the survey.

would have been to use a qualitative method as a complement for quantitative method. the choice of only focusing on specific selected customers made it possible to dig deeper into that specific company and the attitudes of its customers. Due to the time pressure. Therefore. Another angle. which also could have given more data to analyze. we consider that the quantitative method gave us the best result taking into account the extent of the study.Writing this research project has been a time consuming task. we agree on the fact that we have found the most suitable theories. The questions made this thesis were conducted in English. Overall. which have helped us answer the purpose of the thesis. Even though there will always be smaller issues to change in the project. the time plan that we had sketched was helpful for planning and coordinating the process. there is a possibility that some meanings could be biased due to the translation process. However. however. we consider that we have come to the point where we feel satisfied with what we have accomplished. BIBLIOGRAPHY 58 .

• • • • • Aswahthappa. K. www.projectparadise. Human Resource and Personnel Management.• Mamoria. C. Human Resource Management. & Gankar. P. Pardeshi. Himalaya www. Personal Management Text and Cases. (2005) QUESTIONNAIRE USED IN THE SURVEY 59 . (2004). (2001).

• • • • When do you prefer to go for manpower planning? Yearly Quarterly No fixed time None Q.:-____________________ E-mail:-________________________ Occupation:-____________________ Income:-________________________________ Q.Personal information of respondent: Name:-________________________ R/O:-_________________________ Contact No. 1. Which method do you mostly prefer for recruitment and selection preferred way of recruitment? • • • • Third Party Indirect Direct None Q. 3. What are the sources for recruitment and selection? • • • • Internal sources External sources Both None Q. 2. 4. What are the preferred sources for external recruitment? 60 .

How do you rate the HR practices of the company? • • • • Very good Good Bad Average 61 . What form of interview did you prefer? • • • • Personal interviews Telephonic interviews Video conferencing Other Q.• • • • Campus interviews Placement agencies Data bank Casual applicants Q. 5. 6.

62 .

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