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A Project Report On "Recruitment Process in Insurance Company"

Prepare by:Vijay Chaturvedi

This is to certify that Ms. LEENA BIJARNIYA student of MBA II Year (IIIrd Sem.) at COLLEGE OF ENGINEERING AND TECHNOLOGY, BIKANER has completed training project report entitled


The project has been completed after studying for one year in MBA course and for partially fulfilling the requirements for award of degree of Master of Business Administration of Rajasthan Technical University, Kota. The Training Project Report has been completed under the guidance ofMr. NARENDRA CHOUDHARY of CET and is as per norms and guidelines provided. Date: MR. NARENDRA CHOUDHARY 2

Success comes with knowledge & knowledge is comes with training. MBA is a stepping stone to the management carrier and to develop good manager. It is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and its not sufficient to produce a good manager thats why practical knowledge is needed. Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. In accordance with the requirement of MBA course I have summer training project on the topic Recruitment Process in Insurance Company with SBI Life Insurance Ltd. The main objective of the research project was to study the recruitment process of financial consultants in any insurance company. The information regarding the project research was collected through the questionnaire formed by me which was filled by the customers there.

I express my sincere thanks to my project guide Mr. Narendra Choudhary, HOD, Department of Management. For guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I consider it a pleasant duty to express my heartfelt appreciation, gratitude and indebtedness to Mr. Bhavesh Dhankani (Sr. Branch Manager) for their keen interest, invaluable pains taking & excellent guidance, patience, endurance, encouragement & thoughtful advice for the project work. I would take this opportunity to thank all my family members for their helps & suggestions during the course of project work. I am also thankful to all my friends who gave me constant & continuous inspiration to complete this project. I would also like to thank the supporting staff College of Engineering &

Technology, Bikaner for their help and cooperation throughout our project. ( ) LEENA BIJARNIYA 4 the risk and if the concern is big enough the handling of risk becomes a specialized function. Insurance, as a device is the outcome of the existence of various risks in our day to day life. It spreads the whole losses over a large number of persons who are exposed by a particular risk. B) Secondary Functions1) Prevention of loss: Prevention is always better than cure. Prevention is by far the best solution to the problem of risk. It is more effective and cheapest method to avoid the unfortunate consequence. But sometimes prevention is not always possible and Effective. 2) Provides capital: It provides the capital to the society. For plan development of country there is a great need for huge amount of capital. Now days, the insurance companies are rendering positive help in the development of trade, commerce and industry of the country. 3) Improves efficiency: Achievement of goals, it improves not only his efficiency of the masses is also advanced. The insurance eliminates worries and miseries of losses as death and destruction of property care free person can devote his energies for better. 4) Ensures the welfare of society: Insurance is a saga of service and security to thee society. Security of the life and property given by

insurance bring peace of mind to the insured. The investment in LIC in welfare schemes like electricity, housing, water supply, agro industry estates are able to solve many problems in India. 5) Helps in economic progress: Insurance provides an initiative to work hard for the betterment of the masses. Life insurance involves the element of saving investment through small savings. And which has been growing in recent years at an annual rate of 12 about Rs. 400 crs. Life insurance is not a mere business organization; it has nobler welfare responsibilities in the development of the economy. 1.2 Insurance Industry 1.2.1Introduction With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs.450 billion (US$10 billion). According to government sources, the insurance and banking services contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company, a proposal to increase this limit to 49% is pending with the government. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax 13 saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. RNCOSs report, Indian Insurance Industry: New Avenues for Growth 2012, finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04. Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a

year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent. There are presently 12 general insurance companies with four public sector companies and eight private insurers. According to estimates, private insurance companies collectively have a 10% share of the non-life insurance market. Though the focus of this market research report is on the potential growth on the Indian Insurance Sector, it also talks about the market size, market segmentation, and key developments in the market after 1999. The report gives an instant overview of the Indian non-life insurance market, and covers fire, marine, and other non-life insurance. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. This report also provides company profiles of the major private insurance companies. 1.2.2 Report Highlights Gains of liberalization in Indian insurance sector 14 Indian insurance market segmentation by products Size of the market and market share of life insurers, in INR (crore) Market share of non-life insurers Forecast of life insurance growth up to 2012 Forecast of non-life insurance growth up to 2012 Market revenue of both public and private insurers

Policies and measures taken by IRDA to develop the insurance market Research and development activities Regulation of insurance and reinsurance companies Major challenges that Indian insurance sector is facing Profiles of the major players 1.3 Life Insurance 1.3.1 Definition The life insurance contract embodies an agreement in which broadly stated, the insurer undertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary. ---J.H.MAGEE Life insurance contract may be defined whereby the insurer, in consideration of premium paid either installment, undertakes to pay an annuity on the death of the insured of a certain number of years. ---R.S.SHARMA A contract of life assurance is that in which one party agrees to pay a given sum on the happening of a particular event contingent upon the duration of human life in consideration of immediate payment of a smaller sum by another. --BUNYONS LAW 1.3.2 Advantages of life insurance 1. It is superior to an ordinary saving plan: this is so because unlike other saving plans, it offers full protection against risk of death. 15 and small organizations are using Internet as a source of recruitment. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-

mail using the Internet. Alternatively job seekers place their CVs in worldwide web, which can be drawn by prospective employees depending upon their requirements. The two kinds of e- recruitment that an organization can use is Job portals i.e. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization. Creating a complete online recruitment/application section in the companys own website. Companies have added an application system to its website, where the passive job seekers can submit their resumes into the database of the organization for consideration in future, as and when the roles become available. Resume Scanners: Resume scanner is one major benefit provided by the job portals to the organizations. It enables the employees to screen and filter the resumes through pre-defined criterias and requirements (skills, qualifications, experience, payroll etc.) of the job. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the passers-by applicants. Online recruitment helps the organizations to automate the recruitment process, save their time and costs on recruitments. Online recruitment techniques

Giving a detailed job description and job specifications in the job postings to attract candidates with the right skill sets and qualifications at the first stage. 35

E-recruitment should be incorporated into the overall recruitment strategy of the organization. A well defined and structured applicant tracking system should be integrated and the system should have a back-end support. Along with the back-office support a comprehensive website to receive and process job applications (through direct or online advertising) should be developed. 2.4.4 Sources of Recruitment

Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. SOURCES OF RECRUITMENT 36 Internal Sources 1.Transfer: The employees are transferred from one department to another according to their efficiency and experience. 2.Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. 3. Others are Upgrading and Demotion of present employees according to their performance. 4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures. 5. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of othe List of Figures: S. No. Title Fig. No. Page No.

1. Recruitment process Fig.2.1 26 2. Sample size Fig.3.1 38 3. Category of life insurance Fig.4.1 41 4. Essentiality of life insurance Fig.4.2 42 5. Qualification for life insurance Fig.4.3 42 6. Age qualification for life insurance Fig.4.4 43 7. Causes of dissatisfaction Fig.4.5 43 8. Career in life insurance Fig.4.6 44 9. Life insurance is noble service or not? Fig.4.7 44 10. Life insurance as a career Fig.4.8 45

11. Growth of life insurance Fig.4.9 45 12. Life insurance: public or private Fig.4.10 46 72 BIBLIOGRAPHY Following are sources which helped me during my summer trainingBOOKS: KOTHARI C.R.: Research Methodology Management, 3rd Edition KOTLER PHILIP: Marketing Management 11th Revised edition, 2002 GUPTA S.P.: Statistical Methods Thirteen revised edition, 2001 Kotler Philip : Marketing Management, Prentice Hall of India, New Delhi Mathew M.J. : Insurance, RBSA Publishers Jaipur Handa Sunil : Insurance, Sheel Write Well (P) Ltd., Jaipur K. Aswattappa : Human Resource Management MAGAZINES: India Today Business World Business Economics

LSEs Magazine R EFERENCES: 73