PROJECT REPORT

ON
“ANALYSIS OF RECRUITMENT PROCEDURE OF ADVISORS
IN ICICI PRU. LIFE INSURANCE LTD.

This Project Report

Submitted in partial fulfillment of the requirements for the
Award of the POST GRADUATION DIPLOMA IN BUSINESS
ADMINISTRATION .

PROJECT GUIDE: SUBMITTED BY:

ASTHA CHATURVEDI
Reg.No: 200717359

ACADEMIC YEAR-2007 - 2011

1
 PREFACE

This study is the outcome of my Research Project and has been produced as
partial fulfillment of PGDBA, SCDL

The topic- “ANALYSIS OF RECRUITMENT PROCEDURE OF

ADVISORS IN ICICI PRU. LIFE INSURANCE LTD.” for the
purpose of the study has been chosen in consultation with the advice of Mr.
------Sales manager, ICICI Prudent Insurance under whose valued guidance the
study could be accomplished.

Through the project work the student gains lot about the equation of surviving in
the market. This project work imparts professional attitude in the students and
gives the knowledge about the gap that exists into the actual and practical life
and theories in the books. Its project work through which students come to about
the realities of the Corporate world.

The project work at ICICI Prudential insurance was a lifetime experience, which
becomes an integral part of knowledge through which a lot had been gained
which has boosted confidence and surely it is the integral part of a PGDBA
professional course.

A sincere attempt has been made to make the report explicit, comprehensive
and relevant to the topic of study.

2
 Acknowledgement
“No man is an island itself”, rightly proclaimed John Domme, the metaphysical
poet to let the world know the reality of human existence and human life. The
successful completion of any project requires guidance and help from a number
of people. We were fortunate enough to have all the support from our teachers.
We therefore, take this opportunity to express our profound sense of gratitude to
all those who extended their wholehearted help and support to us in carrying out
the project work.

In first place, I extend my deep sense of thankfulness to Mr.--------------- for

guiding me throughout the project. ICICI prudential for Jaipur division for
giving me his guidance from time to time which was of immense importance,
leading us to the successful completion of project, I would also like to thank
Mr.---------------, Branch Manager, ICICI prudential Jaipur for his valuable
suggestions and help in my project. In the end, we wish to thank all those whose
names have not been mentioned above but who have directly or indirectly helped
us in various ways in successfully carrying out the project.

DECLARATION

3
This is to declare that I have carried out the project work entitled
“ANALYSIS OF RECRUITMENT PROCEDURE OF ADVISORS IN ICICI
PRU. LIFE INSURANCE LTD.myself in part fulfillment of the PGDBA
program of SCDL.
The work is original, has not been copied from anywhere else and has not
been submitted to any other University/Institute for an award of any
degree/diploma.

Date:25-Sep-08
Place: Kota (Signature):
Name: Hiteshi Verma

4
 CERTIFICATE OF SUPERVISOR (GUIDE)
Certified that the work incorporated in this Project Report “ANALYSIS
OF RECRUITMENT PROCEDURE OF ADVISORS IN ICICI
PRU. LIFE INSURANCE LTD.” Submitted by Astha Chaturvedi
student of SCDL,Pune is her original work and completed under
my supervision. Material obtained from other sources has been
duly acknowledged in the Project Report.

Date: (Signature of Guide)

Place:Jaipur Name:

TABLE OF CONTENTS
PREFACE
ACKNOWLEDGMENT
CERTIFICATE
5
 SR. NO. CHAPTER
1 COMPANY PROFILE
2 PROJECT PROFILE
3 RESEARCH METHODOLOGY
4 ANALAYSIS & INTERPRETATION
5 CONCULSION&FINDINGS
6 SUGGESTIONS
7 BIBLIOGRAPHY

ANNEXURES
ANNEXURE 1- PROJECT PROPOSAL
ANNEXURE 2-IRDA NOTIFICATION FOR LICENSING OF INSURANCE AGENTS
(with application form)
ANNEXURE 3- QUESTIONNAIRE

6
 CHAPTER-1
COMPANY PROFILE

COMPANY PROFILE

1.1 INTRODUCATION TO INSURANCE

“Life Insurance is about living happily with financial peace in mind”
The business of insurance is related to the protection of the economies of asset every asset has
value & is expected to last for a certain period of time during which it will perform after that

7
the benefit may not be available but sometime after may get lost earlier, an accident or some
other unfitness may destroy it or make it non functional and deprive of the benefits. Which
may give to an adverse situation is a mechanism that helps to reduce the effect of such adverse
situation.
Insurance does not protect the asset. It does not prevent its loss due to the peril. The petil can
not be avoided through insurances. The peril can sometime avoid. Through better safety and
damage control management. Insurances only tries to reduce the impact of the risk on those
who depends on that asset it only compensates the losses and that too, not fully only economic
consequences insured. if the loss is not financial, insurance may not be possible.

There are certain principles, which make it possible for instanced to remain a fair arrangement.
It is difficult for any one individual to bear the consequences of the risk that he is exposed to it
will become bearable when the community shared the burden. The second is that peril should
occur in accidental manner. Insurance is done
Against the contingency that may happen in the case of human being, death is certain but the
time of death is not uncertain in the person who is terminally ill. The time of death is not
uncertain. Through not exactly known not be insured.
A human being is an income-generating asset. One’s manual labour, professional skill and
business acumen are the asset. This asset also can be lost through unexpectedly early death or
through sickness and disabilities caused by accidents. So life insurance is necessary to help
those who depend on the income which is lost due to accident.

1.2 CONCEPT OF INSURANCE

Basically insurance is a device to share the losses of few, by transferring a portion of the loss
to the insurance company in exchange for a certain cost. This means that a lot of people who
think they may suffer a loss, each put in a little money to cover financial costs for those among
them who actually sustain the loss. Obviously, since there is a cost you don’t insure anything
or everything, you will cover only those things that would cause a substantial financial burden
unexpectedly on you, if you had to replace them on your own.

8
Hence, insurance works on the concept of risk sharing, which divides risk a among may
people. For example, all of you run the risk of having your car stolen. However the past may
tell us that only of your cars will actually be stolen this year. Therefore you may all get
together and decided to each pay a small amount that will go to the unlucky person (could be
you) – will actually may have his car stolen.

1.3 TYPES OF INSURANCE

The insurance can be divided from two angles: from business point of view and from the risk
point of view. Which are following:-
(1) Life Insurance
Life Insurance is different from other insurance in the sense that the subject matter of
insurance is life of human being. The insurer will pay the fixed amount of insurance at the
death or at the expiry of certain period. At present, life insurance enjoys maximum scope
because each and every person requires the insurance. This insurance provides protection to
the family at the premature death or gives adequate amount at the old age when earning
capacities are reduced. Types of insurance plans offered in our country
- Term assurance plans
- Whole life plans
- Endowment assurance plans
- Assurances for children
- Family income policy
- Life annuity Joint life assurance
- Pension plans
- Unit linked plan
- Policy for maintenance of handicapped dependent
- Endowment policies with health insurance benefits
(2) General Insurance
The general insurance includes property insurance, liability insurance and other forms of
insurance. Fire and marine insurance comes under property insurance. Liability insurance
includes motor, theft, fidelity and machine insurances to ascertain extent. The strictest form of
liability insurance is fidelity insurance whereby the insurer compensates the loss to the insured
9
when he is under the liability of payment to the third party. Types of insurance policies
available are:
- Health insurance
- Medi-claim policy
- Personal accident policy
- Group insurance policy
- Automobile insurance
- Worker’s compensation
- Liability insurance
- Aviation insurance
- Business insurance
- Fire insurance policy
- Travel insurance policy
(3) Social Insurance
The social insurance is to provide protection to the weaker sections of the society who are
unable to pay the premium for adequate insurance. Pension plan, disability benefits,
unemployment benefits, sickness insurance and industrial insurance are the various forms of
social insurance. Risk point of view Insurance can be divided into property, liability and other
forms of insurance. Property Insurance Under the property insurance property of a person is
insured against a certain specified risks. The risk may be fire or marine perils, theft of property
or goods, damage to property at accident. Examples of this are:
- Home insurance
- Business insurance
- Commercial insurance
(4) Marine Insurance
Marine insurance provides protection against loss of marine perils. The marine perils are
collision with rock, or ship attacks by enemies, fire and capture by pirates etc. These perils
cause damage, destruction or disappearance of the ship and cargo and non-payment of freight.
So, marine insurance insures ship (Hull),cargo and freight. Types of policies are:
- Voyage policies
- Time policies
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- Valued policies
- Hull insurance
- Cargo insurance
- Freight insurance
(5) Fire Insurance
Fire insurance covers risks of fire. In the absence of fire insurance, the fire waste will increase
not only to the individual but to the society as well. With the help office insurance, the losses,
arising due to fire are compensated and the society is not losing much. The individual is
protected from such losses and his property or
business or industry will remain in the same position in which it was before the loss. The fire
insurance does not protect only losses but it provides certain consequential losses also.
Policies available in this insurance are:

- Consequential loss policy

- Comprehensive policy
- Valued policy
- Valuable policy
- Floating policy
- Average policy

(6) Miscellaneous Insurance

The property, goods, machine, furniture, automobile, valuable goods etc., can be insured
against the damage or destruction due to accident or disappearance due to theft. There are
different forms of insurances for each type of the said property whereby not only property
insurance exists but liability insurance and personal injuries are also insured. Miscellaneous
insurance covers:
 Motor
 Disability
 Engineering and aviation risks
 Credit insurance

11
  Construction risks
 Money insurance
 Burglary and theft insurance
 All risks insurance

1.4 INDIAN INSURANCE INDUSTRY

The following facts show how under-developed the Indian insurance business is due to state
monopoly and lack of aggressive marketing of insurance policies: -
 Per capita insurance premium in India is a mere US$ 10. Even in China, the
corresponding figure is US$27.78, when both the countries have the same premium
figure as % of GDP.
 Insurance premium in India accounts for a mere 2.3 per cent of GDP
(Compared of the world average of 7.8 percent)
 Insurance premium as a percentage of savings is barely 5.95 percent in Indian
(compared to 52.5 per cent in UK)
 The above figures show the huge scope that exists for new business in the insurance
sector.

Liberalization will obviously bring about strong marketing of different policies by rival
firms, with is expected to benefit the customer through a wider range of products and
better service. Till recently, policies have only been ‘bought’ by customers, ‘rarely
marketed’ by the insurance firms.
Insurance business is mainly divided into four classes:

1) Life insurance, 2)Fire, 3)Marine, and 4) Miscellaneous insurance.

Life insurance transacts life insurance business;
General Insurance transacts the rest. No composites are permitted as per law.
Indian insurance industry as on 1,4,2000, comprised of only two players in the state sector:
Ex. - Life insurance Corporation of India ( LIC)
Ex. - General insurance Corporation of India ( GIC)

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LEGISLATION (as on 1.4.2000)
Insurance is a central subject in India. The primary legislation that deals with insurance
business in India is insurance Act, 1983 and insurance Regulatory & Development Authority
Act, 1999. the key provisions for IRDA Act. Are:
 Single Company cannot carry on the life and non-life insurance business; separate
application and separate companies in case the same set of bidders desires license in
both.
 Foreign equity capped at 26% in life general and reinsurance ventures.

 Mandatory for Indian promoter to divest shareholding in excess of 26% after 10 year
from the commencement of business.
 Minimum capital fixed at Rs. 1 billion for life and general business and Rs. 2 billion
for reinsure business.
 Private insurance to maintain a Minimum Solvency Margin of
 Rs. 500 million for life insurance
 Highest of Rs 500 million or 20% of net premium income or 30% of net incurred
claims for general insurance and
 Rs. 1 billion for reinsurance.
 Policy holders funds to be invested within India
 Compulsory rural and social sector exposure; norms to be specified.
Future Trends: -
 Existing players are far too big to be dislodged from their leadership positions, but
enough competitive space creation is possible by the new entrants.
 This opening up (liberalization), will force players to offer innovative products,
better packaged, smooth delivery systems and improved customer pressures.
 Untapped or under served segments or niches will get exploited, due to competitive
services.
 Both the existing and new players will attempt new methods of delivery system
and service. (Online proposals, FAQS. ETC.)
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 1.5 Benefits of Life Insurance
 Protection
 Savings
 Education
 Retirement
 Others :-International Conventions, Rewards and Recognition- Life Honors
Flexibility No Capital Required

1.6 INTRODUCTION TO THE COMPANY

ICICI (Industrial Credit and Investment Corporation of India):

ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and corporate
finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financial conglomerate and
has become one of the largest public financial institutions in India.

ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies
and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs. 1, 13,070
crores, since inception.

Organizational structure of ICICI

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 ICICI Prudential Life Insurance
- leading private life insurance company of India

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

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

They hope to achieve this by:

 Understanding the needs of customers and offering them superior products and service.

15
  Leveraging technology to device customers quickly, efficiently and conveniently.

 Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to their policyholders.

 Providing an enabling environment to foster growth and learning for their employees.

 And above all, building transparency in all their dealings.

The success of the company is due to its unflinching commitment to 5 core values-

• Integrity,
• Customer First,
• Boundary less,
• Ownership,
• Passion.
Each of the core values describe what the company stands for, the qualities of their people
and the way they work.

ABOUT THE PROMOTER

ICICI and Prudential came together in 1993 to provide mutual fund products in India and
today are the largest private sector mutual fund company in India. Their latest venture ICICI
Prudential Life plans to take care of the insurance needs at various stages of life.

BANK

 ICICI Bank is India’s second-largest bank with total assets of about Rs.132,780 crores
at September 30,2004 and profit after tax of Rs.873 crores in the half year ended
September 30,2004(Rs.1,637 crores in fiscal 2004).

16
  ICICI Bank has a network of about 540 branches and extension counters and over 1800
ATMs.
 ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of banking products and
 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.

Established in 1848, Prudential plc is a leading international financial services company in

the UK, with some US$250 billion funds under management and more than 16 million
customers worldwide. Prudential has brought to market an integrated range of financial
services products that now includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia, Prudential is UK's largest life
insurance company with a vast network of 23 life and mutual fund operations in twelve
countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam.

ABOUT PRUDENTIAL
Origins

Prudential has had a continuous presence in Asia since 1923 and is now the largest UK life
insurer in the region. Prudential Corporation Asia, established in 1994, has its foundations in
general insurance agencies first established in 1923 in China, Malaya, the Philippines, India
and Japan, as part of a drive to establish the Prudential name throughout the world. The first
overseas agency for life insurance was based in India, also in 1923, and a life branch was
established in Singapore and Malaya in 1931. Although 'The Man from the Pru' was a
household name in the UK at this time, the name Prudential was at first unknown overseas; a
dedicated overseas sales force, combined with regional advertising campaigns worked to
establish brand awareness and create a strong reputation in these new markets.

Expansion

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Prudential's current business in Asia is based on the established markets in Hong Kong,
Malaysia and Singapore and new ventures in China, Vietnam, Thailand, Indonesia and the
Philippines. In November 1999 Prudential announced the launch of a new operation in
Taiwan; this was followed in 2001 with the launch of PCA Life in Japan, and the acquisition
of YoungPoong Life in Korea.

Prudential is the now largest UK life insurer in Asia, with operations in 12 countries, and a
rapidly expanding mutual fund business. More than 50,000 staff and agents develop and sell a
range of insurance and investment products tailored to the needs of each local market. Recent
product innovations include PRUparent, designed to help adult children in Malaysia Hong
Kong and Singapore to care for their elderly parents. In 2000, total insurance sales of £504
million in Asia were 75% up on 1999

HOLDINGS

ICICI Bank and Prudential plc came together in 1993 and formed Prudential ICICI Asset
Management Company. ICICI Bank has 74% stake in the company, and Prudential plc has
26%.

HOLDINGS

PRUDENTIAL
24%

ICICI BANK
76%

ICICI BANK PRUDENTIAL

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 EQUITY STRUCTURE

ICICI Prudential’s equity base stands at Rs.925 crores. In the quarter ended June 30,2005,the
company issued over 1,00,000 policies, for a total sum assured of over Rs. 3,753 crores and
had a new business premium income of Rs. 242 crores. The company’s market share is 36%
among private insurance players.

ORGANIZATION STRUCTURE, DEPARTMENTATION AND DETAILS OF

DIVISION HEAD

The CEO and Managing Director of ICICI Bank, Mr. K.V. Kamath is the Chairman of ICICI
Prudential Life Insurance Company. The structure is as follows:
Organization Chart – Head Of Management Team:

Ms. Shikha Sharma

- MD

Mr. Judho jit Das Mr. Sandeep Batra, Mr.Shridhar

Chief - HR CFO - CS Chief Sales & Mkt.

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 Mr. Puneet Nanda
Mr. V.Rajagopalan Head - Mr. Anil Tikoo
Appointed Actury Investment Head –Info. Tec.

Ms. Anita Pai-

Chief ope. & Und.

The ICICI Prudential Life Insurance Company Limited Board comprises of reputed
people from the finance industry both from India and abroad.
 Mr. K. V. Kamath, Chairman
 Mr. Mark Norbom
 Mrs. Lalita D. Gupte
 Mrs. Kalpana Morparia
 Mrs. Chandana Kochhar
 Mr. Kevin Holmgren
 Mr. M. P. Modi
 Mr. R. Narayanan
 Ms. Shikha Sharma, Managing Director
Ms. Shikha Sharma, Managing Director, is responsible for all the operations of the company.
She started her career in ICICI in 1980 and has worked in various divisions of ICICI like
Project Finance, Corporate Planning and Resource Raising. From 1992-1997,she was involved
in setting up of ICICI Securities, a Joint venture between ICICI & JP Morgan. In April 1997,
she became the General Manager, Strategic Planning and Policy department and Information
Technology.In August 1998, she was appointed the Senior General Manager of ICICI Personal
Financial Services Ltd., and was responsible for all the retail asset products of the company.

Ms. Shikha Sharma, has done her B.A. (Hons.), Master of Business Administration from the
Indian Institute of Management, Ahmedabad and a Post Graduate Diploma in Software
Technology, from the National centre for Software Technology, Mumbai.

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The various departments in the organization are:
1. The Human Resource Department
2. Investment Department
3. Customer Service and Operations Department
4. Information Technology Department
5. Strategy Department
6. Marketing Department.

1.7 PRODUCT MIX

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its 19 products are combined with up to 6
riders, to create a customized solution for each policyholder. The company provides insurance
solutions for both individuals as well as groups.

The insurance solutions for the individuals are:

Savings Solutions

1. Secure Plus is a Transparent and feature-packed savings plan that offers 3 levels of
protection.
2. Cash Plus is a transparent and feature-packed savings plan that offers 3 levels of
protection as well as liquidity options.
3. Save “n” protect is a traditional endowment savings plan that offers life protection
along with the adequate returns. This policy falls under the category of endowment
policy. The policy-holder gets the sum assured and bonuses on survival. Unlike the
cash back policy, there are no guaranteed bonuses here. The novel feature of the policy

21
 is that the policy holder is covered for life for 50 per cent of the sum assured for five
years beyond the maturity date.
4. Cash Back is the policy which is ideal for meeting milestone expenses like children’s
marriage, their higher education or to purchase any other asset. ICICI Prudential’s cash
back policy is structured on the lines of the money back policies offered by LIC and
others in the field. Simply put, the policyholder gets regular returns at pre-determined
intervals and the sum assured and bonus at the end of the period. ICICI Prudential’s
cash back policy has an interesting feature, in that, the company offers a guaranteed
bonus .LIC is regarded as an exception of sorts because the entity’s track record of
bonus gives one a fair idea of what can be expected. ICICI Prudential claims to be the
only one offering a guaranteed bonus in addition to another bonus that is contingent on
the returns the company generates on investment.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3
options- level term assurance, level term assurance with return of premium and single
premium. The company offers two pure life insurance products that have an umbrella
name, Life Guard. One of them involves a one-time premium for which there are no
maturity benefits. The other requires regular premium payments that are returned at the
end of the policy. Life Guard offers absolutely no investment-related return and is suitable
for individuals looking for an unadulterated insurance package.

Child Plans

Smart Kid education plans provide guaranteed educational benefits to a child along with
life insurance cover for the parent who purchases the policy. The policy is designed to
provide money at important milestones in the child’s life. Smartkid plans are also available
in unit-linked form-both single premium and regular premium.
Investment Solutions
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 1. Life Link Super is a single premium Market Linked Insurance Plan that combines
life insurance cover with the opportunity to stay invested in the stock market.
2. Life Time Super & Plus offers customers the flexibility and control to customize
the policy to meet the changing needs at different life stages. It offers 4-fund
options-Preserver, Protector, Balancer and Maximiser.
3. Premier Life Gold is a limited premium-paying plan that offers customers life
insurance cover till the age of 75.
4. Retirement Solutions

1. Forever Life is a retirement product targeted at individuals in their thirties.

2. Secure Plus Pension is a flexible pension plan that allows one to select
between 3 levels of cover.
3. Life Time Pension Super is a regular premium market-linked pension plan.
4. Life Link Pension Super is a single premium market-linked pension plan.

ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy
targeted at the economically underprivileged sections of the society.
The policies for groups are:
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees. They are:
1. ICICI Pru Group Gratuity Plan: ICICI Prudential’s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner .The plan can
also be customized to structure schemes that can provide benefits beyond the statutory
obligations.
2. ICICI Pru Group Superannuation Plan: ICICI Prudential offers a flexible defined
contribution superannuation scheme to provide a retirement solution for each member
of the group. Employees have the option of choosing from various annuity options or
opting for a partial commutation of the annuity at the time of retirement.

23
 3. ICICI Pru Group Term Plan: ICICI Prudential’s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or based
on designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost,
depending on the specific needs of the customer. Most of the riders come with the traditional
money back and endowment policies and the flexibility here may well be the USP of the latest
generation of insurance products.
The major advantage of the riders offered by ICICI Prudential, as well as its competitors, is
that a policyholder has the flexibility to mix and match the rider according to requirements,
and thereby avoid paying for benefits one does not need.

1. Accident and disability Benefit: If death occurs as the result of an

accident during the term of the policy, the beneficiary receives an additional
amount equal to the sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary will be entitled
to twice the sum assured as additional benefit.
2. Accident Benefit: This rider option pays the sum assured under the rider
on death due to accident.
3. Critical Illness Benefit: This protects the insured against financial loss in
the event of 9 specified critical illness. Benefits are payable to the insured for
medical expense prior to death.
4. Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life assured. It is
available on Smart kid, Secure Plus and Cash Plus.

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 5. Waiver of Premium: In case of total and permanent disability due to an
accident, the premiums are waived till maturity. This rider is available with
Secure Plus and Cash Plus.

Financial Performance

Year of review 2002-2003

ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICI
Prudential's annualized premium grew more than three fold over the previous year.

Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly expanded
its presence to 29 operational Branches (2001-2002: 16), with the Advisor
Force growing to over 18,000. Its has also strengthened its Alternate Distribution channels, i.e.
Banc assurance, Corporate Agents and Direct Marketing, making purchase of insurance more
accessible. Banc assurance and Direct Marketing channels have contributed to over 18% of the
Annualized Premium.

ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension
segment and launched two linked pension products- Lifetime Pension and Lifeline Pension,
which have been well received in the market

25
 Market share of ICICI Prudenrial Life insurance in terms of Premium.

Market share of pvt players in terms of premium up to may'06

MET LIFE
HDFC TATA AIG
1%
STANDARD 7%
9%

ING VYSYA ICICI

3% PRUDENTIAL
33%
MAX NEW YORK
6%
SBI
BIRLA SUNLIFE 7%
14%

AVIVA
OM KOTAK 4%
4% ALLIANZ BAJAJ
RELIANCE LIFE
11% 1%
ICICI PRUDENTIAL SBI AVIVA RELIANCE LIFE
ALLIANZ BAJAJ OM KOTAK BIRLA SUNLIFE MAX NEW YORK
ING VYSYA HDFC STANDARD MET LIFE TATA AIG

Among Fourteen Private players in insurance market ICICI Prudential holds 33% in terms of
premium collected at the end of may06.The major part of the business received under Life
time plan ( an Unit linked Plan).

Market Share of ICICI Prudential life insurance in terms of number of policies.

26
 Market share of pvt players in terms of no. of policies uo
to may'0 6
SAHARA LIFE SHRIRAM LIFE
0% 1%
MET LIFE
2% TATA AIG
9%
HDFC STANDARD ICICI PRUDENTIAL
6% 28%
ING VYSYA
4%

MAX NEWYORK s
11% SBI
3%
AVIVA
BIRLA SUNLIFE
5%
4% ALLIANZ BAJAJ AMP SANMAR
OM KOTAK 19% 6%
2%

ICICI PRUDENTIAL SBI AVIVA AMPSANMAR ALLIANZ BAJAJ

OMKOTAK BIRLA SUNLIFE MAX NEWYORK ING VYSYA HDFCSTANDARD
MET LIFE TATA AIG SAHARA LIFE SHRIRAMLIFE

Source: IRDA Journal July 2006

With the launching of two new private insurance company’s i.e. Sahara life & Shriram
Life the competition has gone up in the insurance market. But still ICICI Prudential is
dominating the market with the 28% share alone in terms of number of policies logged.

27
 CHAPTER -2
PROJECT PROFILE

RECRUITMENT

28
Introduction:
After the required number and kind of human resources are determined, the
Next step in the procurement function is to locate the sources wherefrom the required human
resources can be available and to attract then towards the organization. This is known as
“recruitment’.

Meaning of Recruitment
According to Flippo, Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organization. In the words of Yoder.
“Recruitment is a process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
number.”2 Recruitment needs are of there types – planned, anticipated and unexpected,
Planned needs arise from change in organization. An analysis of these definitions reveals the
following features:
(1) Recruitment is a process or a series of activities rather than a single act or event. (2)
Recruitment is a linking activity as it brings together those with jobs (employer) and those
seeking jobs. (Prospective employees)
(3) Recruitment is a positive function as it seeks to develop a pool of eligible person from
which most suitable ones can be selected.
(4) The basic purpose of recruitment is locate the sources of people required persons to meet
job requirement and attractive such people to offer them selves for employment in the
organization.
(5) Recruitment is an important function as it makes it possible to acquire the number and type
of persons necessary for the continued functioning of the organization. Careful recruitment of
employees is particularly important in India because the chances of mismatching the job and
the person are greater
(6) Recruitment is a pervasive function as all organization engages recruiting activity.

(7) Recruitment is a two-way process.

29
(8) Recruitment is a complex job because too many factors affect it. E.g. image of the
organization, nature of jobs offered organizational policies, working conditions and
compensations levels in the organization, rate of growth of the organization, past recruitment
record, employment conditions in the community.

STEPS IN RECRUITMENT PROCESS

The recruitment process consists of the following Steps:
 Recruitment process generally begins when the personnel department receives
requisitions for recruitment from any department of the company. The personnel
requisitions contain details about the position to be filled, number of persons to be
recruited, the duties to be performed, qualifications required from the candidate, terms
and conditions of employment and the time by which the person should be available
for appointment etc. locating and developing the sources of required number and type
of employees.
 Identifying the prospective employees with required characteristics.
 Communicating the information about the organization, the job and the terms and
conditions of service.
 Encouraging the identified candidates to apply for jobs in the organization.
 Evaluating the effectiveness of recruitment process.

30
 Fig. Steps of Recruitment

Human Recruiting Selecting Placing

Resource Required Qualified Selected
Planning Personnel Personnel Personnel
On Jobs

Finding and Search for prospective Evaluating

Developing employees Effectiveness
Sources of (a) Developing techniques Of recruiting
Potential (b) Attracting candidates
employees

Personnel research Transferring to new job

Internal
sources
Upgrading in same position
Job posting
Promoting to higher job
Experience

External Employee referals Providing Information

Sources

Advertising Clarifying doubts

scouting

According the Famulrao, recruitment process consists of five elements, namely a recruitment
policy, a recruitment organization, developing sources of recruitment, techniques used to tap
these sources and a method of assessing the recruitment programmer. Fig. 2.9 depicts the
elements of recruitment process along with place of recruitment in the procurement function.

31
RECRUITMENT POLICY-

Recruitment policy specifies the objectives of recruitment and provides a framework for the
implementation of the recruitment programmer. It may involve commitment to principles such
as enriching the organization’s human resources by filling vacancies with the best qualified
people, attitudes towards recruiting handicaps, minority groups, woman, friends and relatives
of present employees, promotion from within. It may also involve the organizational system to
be developed for implementing the recruitment programmer and procedures to be employed.
Recruitment policy should be based on the recognition that it is hard to find qualified
executives.
A recruitment policy involves the employer’s commitment to such general principles as –
(a) to find and employ the best qualified persons for each job:
(b) to retain the most promising of those hired ;
(c) to offer promising opportunities for life time working careers;
(d) to proved facilities and opportunities for personal growth on the bob;
A properly planned and systematic recruitment policy is necessary to minimize disruption
of the work due to changes in employment opportunities. A well-considered and per-planned
recruitment policy based on the goals, needs and environment of the organization will help to
avoid hasty or ill-conceived decisions and help to man the organization with the right kind of
personnel. The factors affecting recruitment policy include organization objectives, personnel
policies of the organization and of its competitors, government policies on reservation and
sons of the soil, preferred sources of recruitment, organization’s recruitment need, recruitment
costs and financial implications, selection criteria and preferences, etc.
There are several per-requisites of a good recruitment policy. It should:
 Abide by the relevant public and legislation on hiring and employment relationship.
 Provide employees with job security needs and continuous employee.
 Integrate organization need and employee needs;
 Provide each employee with freedom and opportunity to utilize and develop
knowledge and skill to the maximum possible extent ;
 Treat a employees fairly and equitably relation ships.

32
  provide suitable jobs and protection to handicapped, women and minority groups ;
 Encourage responsible trade unions
 Be flexible enough to meet the changing need of the organization.

Recruitment Organization:-

Recruitment practices differ from one organization to another. Some

Organizations like public sector banks adopt centralized recruitment whereas other
organization resorts to decentralized recruitment. Under centralized recruitment
personal department at the hade office performs all the functions of recruitment. Every
operating department sends requisitions or indents for recruitment to there central
office. On the other hand, each department / unite carries out case of decentralized
recruitment.

Centralized recruitment offers the following advantages:

1. It reduces the administrative cost by consolidation all recruitment activities at one

place.
2. It helps in better utilization of specialist.
3. It ensures uniformity in recruitment and selection of all types of
employees.
4. It facilitates interchangeability of staff between different units / zones.
5. It relives the line executives of recruitment problem thereby enabling them
to concentrate on their operational activities.
6. It tends to reduce favoritism in recruitment and make the recruitment
process mort scientific.
7. Centralized recruitment suffer from the following disadvantages.
8. There is delay in recruitment as operating units cannot recruit staff as and
when required.
9. The central office may not be fully familiar with job requirements of different
units and the most suitable sources for the required staff.

33
 10. Recruitment is not flexible because operating units lose control over the
recruitment process.
Both centralized recruitment and decentralized recruitment have their own merits. The
choice between the two will depend on the management philosophy and need of the
particular organization. In some cases a combination of both the system is used. Lower
level staff is recruited centrally whereas middle and top level executives are recruited
in a decentralized manner.

SOURCES OF RECRUITMENT:-

Various sources of recruitment may be classified in two broad categories, namely internal
sources and external sources.

Internal Sources: internal sources, consist of the following:-

 Present employee – Permanent, temporary and casual employees already on the

pay of the organization are a good source. Vacancies my be filled up form such
employees through promotions transfers, upgrading and even demotion. Transfer
implies shifting on employee from one job to another without any major change in
the status and responsibilities of the employee. On the other hand, promotion refers
to shifting of an employee to a higher position carrying higher status
responsibilities and pay.
 Retired and retrenched employee who wants to return to the company may be
rehired.
 Dependents and relatives of deceased and disabled employees.

34
 Internal sources have the following merits: -
 Morale and motivation of employees improve when they are assured
 That they would be preferred in filling up vacancies at higher levels. A sense of
security is created among employees.
 Suitability of existing employees can be judged batter as record of
 their qualification and performance is already available in the organization.
 Present employees are already familiar with the organization and its
 Policies. Therefore, time and costs of orientation and training are low.
 The time and expenditure of recruitment are reduced as there is little
 Need for advertising vacancies or arranging rigorous tests and interviews.
 Filling of higher level jobs through promotions within the
 organization helps to retain talented and ambitious employees. Labour turnover is
reduced.

Internal sources however have some demerits:-

 It may lead to inbreeding.
 It discourages flow of new blood in to the organization.
 If promotion is based on seniority really capable persons may be left out.
 The choice in selection is restricted. More talented outsiders may not be employed
 All vacancies cannot be filled up from within the organization.

This source of recruitment is not available to a newly established enterprise.

35
 Fig: Sources Of Recruitments
RECRUITMENT

Internal Sources External sources

(i) Transfers (i) Press Advertisements

(ii) Promotions (ii) Educational Institutions

(iii) Placement Agencies

(iv) Employment Exchanges

(v) Labour Contractors

(vi) Unsolicited Applicants

36
 (vii) Recommendations

(viii) Recruitment at Factory gate

External Sources: External sources of recruitment lie outside the organization. These
are as follows: -

Education and Training Institutions

 Recruiting Agencies.
 Employment Exchanges
 Labour Contractors.
 Gate Recruitment
 Similar Organizations
 Recommendations
 Press advertisements

External Sources Of Recruitment Offer The Following Advantage: -

 People having the requisite skill, education and training can be obtained.
 As recruitment is done from a wider market, best selection can be made irrespective of
caste, sex or religion.
 Expertise and experience from other organizations can be brought.
 It helps to bring new blood and new ideas into the organization.
 This source of recruitment never ‘dries up’. It is available to even new enterprises.
 External sources are best when suitable people from within are not available and when
the organization is diversifying or merging with other organizations.

External sources, however, suffer from the following disadvantages:-

37
  It is more expensive and time-consuming to recruit people from outside. Detailed
screening is necessary as very little is know about the candidate.
 The employees being unfamiliar with the organization, their orientation and training is
necessary.
 If higher level jobs are filled from external sources, motivation and loyalty of existing
staff are affected.
METHODS OF RECRUITMENT:-

Recruitment methods or techniques are the means by which an organization establishes

contact with potential candidates, provides them necessary information and encourages them
to apply for jobs. These methods are different from the sources of recruitment. Sources are the
locations where prospective employees are available. One the other hand, methods are ways of
establishing links with the prospective employees. Various methods employed for recruiting
employees may be classified into the following categories:-

1.Direct Methods:Under direct recruitment scouting, employee contacts, manned exhibits and
waiting lists are use. In scouting representatives of the organization are sent to education and
training institution. These traveling recruiters exchange information with the students clarify
their doubts; stimulate them to apply for jobs, conduct campus interviews and shirt list
candidates for further screening. They act in cooperation with the placement office/head of the
institution. Another direct method is to ask employee of the organization to contact the public
and tell about the vacancies. Manned exhibits involve sending recruiters to seminars and
convention, setting up exhibits at fairs and using mobile offices to go to the desired centers.
Some organization use waiting lists of candidates who have indicated their interest in jobs in
person, through mail or over telephone.
2.Indirect Methods: Advertisements in newspapers, journals, on the radio and television are
used to publicize vacancies. A well through out and clear advertisement enables candidates to
assess their suitability so that only those possessing the requisite qualifications will apply. This
method is appropriate when the organization wants to reach out to a large target group
scattered geographically. Whenever necessary a blind advertisement can be given in which

38
only box no is given without identifying the firm. Considerable details about jobs to be filled
and qualification required can be given in the advertisement. But a large number of applicants
may be unsuitable.

3.Third Party Methods: Various agencies can be used to recruit personnel. Public
employment exchanges, management consulting firms, professional societies, temporary help
societies, trade unions, labour contractors are the main agencies. In addition, friends and
relations of existing staff and deputation method can be used.

PROCEDURE FOR BECOMING AN ADVISOR:-

The insurance act 1938 lies down that an insurance agent must posses a license under section
42 of that Act. The licensed to be issued by the IRDA. The IRDA has authorized designated
persons, in each insurance company to issue the licensed on behalf of the IRDA. The free for
the licenses of making an applicant etc. Have describe in the IRDA regulations. A license
issued by the IRDA will be valid for three years. The license may act an agent for a life insurer
for a general or a “composite insurance agent” working for a life insurer as well as general
insurer. No agent is allowed to work for more then one life insurance or more then one general
life insurance company. The qualification necessary before a license can be given is that the
person (individual or corporate insurance executive) must.

 Be at least 18 years old

 Have passed at least the xii standard or equivalent examination. If he is to be appointed
in a place with a population of 5000 or more or 10th std otherwise.
 Have under gone practical training for at least 100 hours in life or general insurance
business. As the case may be , from an institution, approved and notified by IRDA in
the case of a person wanting to become a composite insurance agent, the applicant
should have completed 150 hours practical training in life and general insurance
business, which may be spread over six to eight weeks.
 Have passed the pre recruitment examination conducted by the insurance institute of
India or any other examination body recognized by the IRDA

39
  A person with the following disqualification in debarred from holding a license.

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

 He has been found guilty of criminal of trust, misappropriation, cheating, forgery or

abetment or attempt pt commits any such offence.

The license once issued can be cancelled whenever the person acquires a disqualification.
Application for renewal have to made at least thirty day before the expiry of the license, along
with the renewal fee of Rs. 250. If the application is not made at least thirty day before the
expiry. But is made before the date of expiry of license. An additional fee of Rs 100 is
payable. If the application made after date of expiry, it would be normal be refunded. Prior to
renewal of the license, the agent should have completed at least 25 hrs practical, training in
life or general insurance business or at least 50 hrs practical in life and general insurance
business in the case of composite insurance agent. To know the acceptability of private
insurance sector we interviewed the agent of various private insurance companies and they are
the person who is in contact with the consumers and best to tell about accept ability.

Selection and Training of Agents

The NGO partner is enlisted on the basis of recommendations from donor agencies and others
in the Indian development community. Once the NGO partner is selected, ICICI Prudential
asks then GO to draw a list of appropriate persons based on a ICICI Prudential’s profile of
ideal microagents. For example, the criteria for the selection of a CRIG leader include:
1. Must be a resident of the community in which a person will sell and service policies.
2. Preferably having passed the 12th school year or at least the 10th—this is to insure that she
is eligible to be licensed (an IRDA requirement).
3. Married: Since MI is long-term commitment to policyholders, an unmarried Ringleader may
migrate to her (future) husband’s village, leaving the CRIG and the policyholders in the lurch.
4. Ability to write English: Since the underwriting at the head office is in English, it
is imperative that the proposal forms are filled in English.

40
5. Good track record of integrity: Money handling is integral part of her duty as a
leader.
6. Effective leadership qualities: She has to manage a group of 4 other women.
7. Public speaking ability: She will be required to address large gatherings to
promote ICICI Prudential’s products.
8. Training skills: Since she is the only one trained on insurance, she has to train the other
four.
9. Must have a positive influence among the target market. Each leader, in her area, should
preferably be a woman who is admired for her integrity, forward looking,and progressive
nature, and must be able to use this influence to enable her CRIG members to achieve their
targets.
10. Preferably, she should have some previous work experience in the social sector.

This profile is constantly updated to reflect new learning from operations across the country.
On reflection, the skills required to become a CRIG leader are considerable and may restrict
the replication of the model in states with a scarcity of such skills among the rural poor,
especially women.

Once ICICI Prudential has a list of candidates, they take a written test to assess whether they
have the comprehension and analytical skills required for the job. This examination is
mandated by the regulator and it’s conducted by an external examiner. The successful
candidates then go through three days of icro insurance product training where they learn
about administrative processes.

After being licensed and forming their CRIGs, the agents start selling. Three months into their
insurance careers, most agents qualify for a soft skills development programmed that

ICICI Prudential refers to as the retraining module. There are three retraining modules held
over a
Period of a year and each lasts three days. These modules impart basic knowledge on retail
finance including insurance, analyzing company data, advice on objection handling,
41
teambuilding, communications development, leadership practices, as well as general
instruction on the relevance of micro insurance to the poor. Training is also provided on
computer usage, particularly the Internet to facilitate the use of the agent’s portal. The entire
programmed is in vernacular and based on activities and role plays.

CLAIM SETTLEMENT PROCESS

ICICI Prudential’s micro insurance products were designed to require almost no underwriting.
The ICICI Prudential’s micro insurance products were designed to require almost no
underwriting. The thought behind this was that underwriting all applicants is more expensive
then verifying a few claims extensively. While this saves costs, claims rejections cause ill will.
Such ill will could be avoided through more underwriting. The claims requirements for a
policyholder areas follows:

Good and Bad Practices in Micro insurance ICICI PRUDENTIAL LIFE

 Completed claim form by beneficiary/policyholder, the micro-agent, and the NGO

 Letter from a doctor as to the cause of death
 Death Certificate (or Certified Death Register Extract in lieu of it)
 Original policy document
 Relevant hospitalization records and relevant government records. Additional specified
 Documents such as, in the case of an accidental death, a first incident report from a
local
 Police station that indicates that the death was a result of an accident.
 Verifiable identity documents of insured and beneficiary
 The policyholder’s beneficiary, through the Agent/NGO, couriers these documents to
the ICICI Prudential Office.
The claim process is as follows:

42
  ICICI Prudential branch verifies claim documents (collected monthly from the NGO)
 ICICI Prudential Branch sends documents to home office at Mumbai
 Claims are be settled by cheque in the name of the beneficiary.
 NGO ensures receipt of the claim by beneficiary and liaises with a local bank to open
account.

At present, claims processing has been brought down to 30 days from receipt of a claims form
to settlement. This is still longer then it would take if the NGO settled the claim and then
claimed from the insurer. This lengthy process does not help the client with immediate
expenses that result from the death. In addition, as many do not have bank accounts, there may
be additional delays and transaction costs for the client to cash the cheque. The NGO partner
typically assists the beneficiary with opening a bank account. This is to comply with insurance
law that requires that the insurance company settles directly with the client, not through an
agent.

43
 Chapter-3
RESEARCH-METHODOLOGY

44
MEANING OF RESEARCH
Research is common parlance reference to search of knowledge. One can also define research
as scientific and systematic search for pertinent information on specific topic. In fact research
is a art of scientific investigation Research is an academic activity and as such the term should
be used in technical sense. According to Clifford woody research comprises defining and
redefining problems, formulating hypothesis or suggested solution; collecting, organizing and
evaluating data; making deduction and reaching conclusion; and at last carefully testing the
conclusion to determine whether the fit the formulating hypothesis.

TITLE OF RESEARCH
Title of research is under taken is acceptability and perception in private insurance sector and
recruitment of Insurance Advisor for ICICI PRUDENTIAL life insurance who are an
authorized salesmen for insurance acts on behalf of company. Making business is the main
motto of every organization in today’s scenario insurance sector is emerging with good
business opportunities; so all companies are penetrating in insurance sector to make more
profit. Today insurance is not govern by public organization but private companies are also
coming big way. The recruitment process is rational it is difficult to search for an likely
advisor who fulfill all optional and mandatory parameters to be an Insurance Advisor.
Although we face various problem regarding seeking information about target or to whom we
had to and hoe to approach but the co-operation from various friends, colleagues and specially
the staff we have completed our work with satisfaction.

OBJECTIVES OF THE RESEARCH

45
This Research focus on the acceptability and market perception of the private insurances
sector regarding the various insurance policies and recruitment procedure adopted by ICICI
Prudential Pvt. Ltd.
Objectives of the research are:
 To Find out Advisors for ICICI PRUDENTIAL life insurance Co. Ltd. Who well
suited to the criteria of likely advisor?
 To know the extent to which public rely on private insurance sector.
 To find and analyze the effectiveness & pitfalls recruitment procedures of ICICI
Prudential ltd.
It was a descriptive research as it covers both widespread objectives based on both
primary and secondary data. We collected data through various seminar, clubs meeting and
public joints. To know acceptability above private insurance we interviewed existing
advisor and some customers.

SIGNIFICANCE OF RESEARCH
Every one put his/her time money effort because of some signification.
• TO ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD: -
As bank got valuable data regarding acceptability of private insurance sector and pitfall of
private insurance in the private insurance in the insurance industry. Now the insurance
company can take some significant steps in the direction of increasing this market share
secondly ICICI PRUDENTIAL life got appropriate advisor, in their team who work
dedicatedly for the company.
• TO THE STUDENT: -
It also has a lot of significance to me we got the previous knowledge about
various function of insurance companies, their product and data regarding. The various
services, benefits provided by the companies. It helps us in identifying, targeting and
segmenting the potential area. It will help us in my future for the practical application
in real life.

46
RESEARCH DESIGN

A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact the research design conceptual structure with in research is conducted.

Fig: Research Design

Define research
problem

Review the
Literature

Design Research
f

Sample
Design

Collection of
data

Analysis of
data

f – feedback

Interpretation
& Findings
47
SAMPLE DESIGN
All time in any field of inquiry constitute a ‘universe’ or ‘population’. A complete
enumeration of all times in the ‘population’ is know as census inquiry .It can be presumed that
in such an in inquiry. When all items are covered no element is left & highest accuracy is
obtained. But in practice this may not be true. Besides this type of inquiry involves a great
deal of time money & energy. There for when the field of inquiry is large this method because
difficult to adopt because of resources involved. But when the field studies are taken in
practical life, consideration of time cost all most invariably to lead to a selection of only few
items that is technically called a sample & the selection process is called sampling technique .

RESEARCH MERHODOLOGY

Research methodology is the way to systematically solve the research problem. Research
Methodology is given briefly as follows:

Research Type:- Descriptive

Date source: - Primary / secondary
Location of Research:-Kota
Primary Data: - Survey
Sampling Method: - Random Sampling
Sampling plan: - Identify and select potential area

48
 Chapter-4
FACTS & FINDINGS

49
Public Vs Pvt. Sector Distribution of individual new business premium

PUBLIC Vs PVT. SECTOR DISTRIBUTION OF INDIVIDUAL NEW

BUSINESS PRIMIUM UNDERWRITTEN

Private
28%
LIC
72%

Private LIC

Source: IRDA Journal July 2006

Interpretation

The above Pie Chart depicts that of the 72% of LIC and 28 Private companies.

50
PROILES OF ADVISIORS WORKING WITH ICICI PRUDENTIAL LIFE
INSURANCE CO. LTD.

Bachelor Qualification of Advisor

GRADUATION BACKGROUND OF ADVISOR

B.Com. B.Sc.
40% 37%

B.E.
B.A. 5%
18%

B.Sc. B.E. B.A. B.Com.

S.No QUALIFICATION PERCENTAGE

1 Bachelor in Commerce 40%
2 Bachelor in Science 18%
3 Bachelor in Arts 37%
4 Bachelor in Engineering 5%

Interpretation

51
If the results of the sample are applied to the total number of Advisors, The result shows that
about 40% of Advisors are Commerce background, 37% of Advisors are Science Graduates,
18% of Advisors are of Arts Background and 5% are from Engineering background.

QUALIFICATION BREAKUP OF B.COM + P.G.

B.Com+M.B.A
B.Com 36%
53%

B.Com+ M.Com
3%
B.Com+Others
B.Com+M.A. 6%
2%

B.Com+M.B.A B.Com+ M.Com B.Com+Others B.Com+M.A. B.Com

QUALIFICATION PERCENTAGE
B.COM+MBA 36%
B.COM+M.COM 3%
B.COM+M.A 2%
B.COM 53%

Interpretation

The above Pie Chart depicts that of the 40% of Advisors who are B.coms,36% are Post
Graduate with Masters in Business Administration, further 11% Advisors have their other
master degree’s.

52
 QUALIFICATION BREAKUP OF B.Sc.+ P.G.

QUALIFICATION BREAKUP OF B.Sc.

B.Sc.+M.A.
B.Sc. 2%
35% B.Sc.+M.B.A
B.Sc.+Others 55%
8%

B.Sc.+M.B.A B.Sc.+Others B.Sc. B.Sc.+M.A.

QULIFICATOIN PERCENTAGE
B.Sc 35%
B.Sc+MBA 55%
B.Sc+MA 2%
B.Sc+others 8%

INTERPRETATION
The above Pie Chart depicts that of the 37% of Advisors who are B.Sc,58% are Post graduates
with Masters in Business Administration, further 10% Advisors have their other master
degree’s.

53
 QUALIFICATION BREAKUP OF B.A. + P.G.

QUALIFICATION BREAKUP OF ARTS

B.A.+M.A.
5% B.A.+M.B.A.
B.A. 40%
43%
B.A.+Others
12%

B.A.+M.B.A. B.A.+Others B.A. B.A.+M.A.

QULIFICATION PERCENTAGE
BA 43%
BA+MBA 40%
BA+MA 5%
BA+others 12%

INTERPRETATION

The above Chart depicts that of the 18% of Advisors who are B.A,40% are Post graduates
with Masters in business Administration, further 12% of Advisors have their other master’s
degree, and 5% of Advisors are Master’s in Arts.

54
 AGE DISTRIBUTION OF ADVISOR

AGE GROUP WISE DISTRIBUTION OF ADVISOR

Below 25 25 - 28
33 - above
7% 20%
31%

29 - 32
42%

Below 25 25 - 28 29 - 32 33 - above

S.No AGE GROUP PERCENTAGE

1 Below 25 years 7%
2 26 years-28 years 20%
3 29 years-32 years 42%
4 33 years & Above 31%

Interpretation

55
The above Pie Charts Depicts that 42% of Advisors are in the age group of 25-30 years,31%
are of advisors are above 30 years of age group. Thus the above chart reflects that 73% of
Advisors are in the 30’s.

WORK FIELD EXPERIENCE OF ADVISOR

INDUSTRY BACKGROUND OF ADVISORS

Others Banking &

18% Finance
Telecom 21% Insurance
17% 12%
Pharma IT
13% 19%

Banking & Finance Insurance IT Pharma Telecom Others

S.No. Experience No. of advisors

1 Less than 3 yrs 14%
2 3yrs-6yrs 39%
3 6-9yrs 25%
4 9yrs & above 22%

56
Interpretation

The above Pie Chart Depicts 39% of Advisors are having experience of 4 to 6 yrs, 25%
Advisors are having experience of 7 to 9 yrs,22 % of Advisors are having 10 yrs and above,
where only 14% are having less than 3 yrs of experience.

NUMBER OF POTENTIAL MALE IN COMPARISON TO FEMALES.

100%
No. of people

80%
60%
Series1
40%
20%
0%
Male Female
Gender

Gender No. of people

Male 85%

Female 15%

Interpretation
Under the survey of recruitment of Advisor Icici Prudential at Kota, Number of male
interested to become Advisor are more than the percentage as compare to females. From the
above table we come to know that 85% of them were Male.

57
 CURRENT OCCUPATION OF CUSTOMERS

Occupation of potential FC's

Housewifes
Student 5% Bussiness
15% 30%

Salaried
50%

Bussiness Salaried Student Housewifes

Occupation No. of people

Business 30%
Salaried 50%
Student 15%
Housewife’s 5%

Interpretation
On the part of occupation of potential Advisor, 50% of people i.e. 15 were salaried people
and 9 of them from Business Background.

58
 SECTOR WISE CLASSIFICATION

35% 30%
No. of people

30%
25% 20% 20% 20%
20% Series1
15% 10%
10%
5%
0%
ng

s
en

rin
m

er
i
nk

ar

th
tu
st
Ph

O
Ba

c
fa
ve

u
In

an
M

Field

Field No. of people

Banking 20%
Pharma 30%
Investment 20%
Manufacturing 10%
Others 20%

Interpretation
Under the survey conducted we come to know that most of the servicing people belongs to
Pharma sector i.e. 9 people belongs to this sector out of 30 people.

59
 EXPERIENCE OF SELLING OF FINANCIAL PRODUCTS

40%
No. of people

30%

20% Series1
10%

0%
Below 1yrs-2yrs 2yrs-3yrs 3 yrs &
1Yrs above
Experience in Yrs

Experience No. of people

Below 1Yrs 10%
1yrs-2yrs 25%
2yrs-3yrs 30%
3 yrs & above 35%

Interpretation
From the above table,35% of people under the survey, have more than 3yrs of sales
experience And only 10% of people have below one year of Sales experience.

60
 INTEREST TO WORK WITH ICICI PRUDENTIAL LIFE INSURANCE AS A
FINANCIAL CONSULTANT

Response to the recruitment

Can’t say
10%

Negative
30% Possitive
60%

Possitive Negative Can’t say

Response No. of people

Positives 60%
Negative 30%
Can’t say 10%

Interpretation
At last, there is a number of people who respond us in positive manner to become an Advisor
and like to work with ICICI PRUDENTIAL. Out of 30 people, 18 people responded in
positive manner and only 3 people didn’t gave any answer to the question.

BUSINESS SECTORS OF ICICI GROUP

61
 Materials

Engineering

8% 19% Energy
27%
Consumer products

24% Chemicals
5% 8% 9%
Communications and
information system
Services

Materials 19%
Engineering 24%
Energy 9%
Consumer products 8%
Chemicals 5%
Communications and information system 27%
Services 8%

Interpretation
The above Pie Chart Display the Materials 19%, Engineering, Energy 9% consumer Products
8 % Chemicals 5% Commutations and information System27% , Services 8%

62
 Chapter-5
SWOT ANALYSIS

STRENGTH
 Financial rating of companies
 Flexibility of plans

63
  Highly co-operative & skilled staff.
 Sales oriented organization.
 Aggressiveness of sales force in selling products.
 The company has expertise in managing big business.
 Effective and wider distribution network.
 Product designed for each age group & every area of personal.
 ICICI PRUDENTIAL life insurance provide unique training program for insurance
advisor called product training
 The company enjoys a very high brand loyalty & recall value among its customer.
 The company has a presence in all metros as well as in most of the major cities in
country.

WEAKNESS
 Less coverage in rural areas.
 Less staff
 Lack in making follow – up.
 Lack of corporate agent.
 Lack of customer services.
 Lack of promotional activities.

OPPORTUNITY
 There is continuous growth in insurance sector.
 People have started Turing towards private insurance sector as they know that
security and growth of money is better then another insurance company.
 Government has also started investing in private insurance sector.
 Market is fully to capture because the branch has recently set up its business.

THREATS

64
 Competition in insurance sector is increase sing with the entry of private giants like
HDFC Standard life , Tata - Aig , Bajaj Allanze, Sahara, Gic, LIC etc.
 Selling attitude the company always has to be maintained in order to company other
insurance company.
 Continuous follow up of the client and customers.
 As LIC has strong market position so it is little bit difficult to capture the market.
 Customer is still find risky to in private insurance sector.

65
 Chapter-6
CONCLUSION

66
 CONCLUSION

Being a trainee at ICICI prudential Life Insurance Kota, the project of ‘Analyzing the Segment
of Recruiting Advisors’ concludes with the following:

•Most of Advisors are from commerce back ground.

•Charted accountant is the most effective person in the insurance market.
•Higher premium are logged by C.A. in Kota district
•Advisors belongs to Pharma sector were good at logging number of policies.
•Students working at ICICI Pru. are more influenced with pinnacle programs.
•The distribution network of ICICI prudential is spreading like a fire in jungle.
•In Kota district the awareness about the company & its working is poor in Rajasthan.
• Advisors are getting motivated with the various program and reward given by the
company for their performance.
•Recruitments are sometimes based on the influence .
•More opportunity lies with the people from telecom sector.
•This sector has more opportunity to grow in Rajasthan , still big part of rural Rajasthan is
untapped.

67
 Chapter-7

SUGGESTIONS

68
 SUGGESTIONS

 Advisor should be given more training time to time to have better knowledge for
change in market.
 Mass insurance policy should be launched
 Untapped areas should be cover.
 There are more than 75 crores population in villages. This represents a vast potential.
 Advisor should be supervise regularly so that their work can be improved and made
effective and efficient.
 The advisor should be keeping in constant touch with his policy holder to become
aware of the change in his situation including marriage. Death of relatives. Releases of
mortgages.
 Any one of them may necessitation some changes like title to policy moneys or more
insurance. The contact conveys a message that agent and company cares for the policy
holder and the family mouth publicity it increase acceptability.
 Private insurance companies should highlight that they are managed privately but
completely governed by IRDA.
 To capture major chunk of business they need to open more branches in sub urban so
that they can fulfill all need of customers.
 Perspective customers should make more aware about the policies through advertising
and promotional activities.

69
BIBLIOGRAPHY

 Copper Schindder Business Research Methods ,8th Edition

 IRDA Journal 2006

 Datta, Debraj and Datta, Mahua: Marketing Management, Vrinda
Publications Ltd., Edition 2006.

 Kotler, P, Keller, KL., Marketing Management, Prentice Hall India,

Twelfth Edition.

 Ramaswamy,V.S,.Namakumari,S.,Marketing Management: Planning,

Implementation and Control, Macmillan, Third Edition.

 Coughlan, Anne T. Anderson, Erin, etc., Marketing Channels, Pearson

Prentice Hall, Seventh Edition.

 www.Iciciprulife.com
 Business world may 2006
 Company Quarterly report.
 Product Broachers.
 Hindustan times.

70
 ANNEXURE

Annexure 1 : The Malhotra committee customer Service

Report & IRA BILL
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor
R.N. Malhotra, was formed to evaluate the India insurance industry and recommend its
future direction in 1994, the committee submitted the report and gave the following
recommendations: -

Structure –
 Government stake in the insurance companies to be brought down to 50%.
 Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act its independent corporations.
 All the insurance companies should be given greater freedom to operate.

Competition: -
 Private companies with a minimum paid up capital of Rs. 1bn should be
allowed to enter the industry.
 No company should deal in both life and general insurance through a single
entity.
 Foreign companies may be allowed to enter the industry in collaboration with
the domestic companies.
 Post Life insurance should be allowed to operate in the rural market.
 Only one state- level insurance company should be allowed to operate in each
state.
Regulatory Body :-
 The insurance Act should be changed.
 An insurance regulation body should be set up.

71
  Controller of insurance (currently a part of the Finance Ministry) should be
made independent.

Investment: -

 Mandatory investments of LIC life Fund in government securities to be

reduced from 75% to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any company
( Current holding to be brought down to this level over a period of time)

Customer Service: -

 LIC should pay interest on delays in payment beyond 30 days.

 Insurance companies must be encouraged to set up unit linked pension plans.
 Computerization of operation and updating of technology to be carried out in
the insurance.
Overall, the committee strong felt that in order to improve the customer service and
increase the converge of the insurance industry should be opened up to competition.

72
 PROJECT PROPOSAL
TITLE OF THE PROJECT:

“ANALYSIS OF RECRUITMENT PROCEDURE OF ADVISORS

IN ICICI PRU. LIFE INSURANCE LTD.
OBJECTIVES

Increasing Liberalization and globalization has been given an exponential growth to the
Indian Insurance sector and this is still exploring the huge chunk of untapped market for
the Insurance. This trend will continue since the demand of the insurance products is
regularly increasing and unit link plans has given a entirely new look to the insurance
products .Now Insurance is not just a risk coverage avenue but also investors are looking
towards it as an investment avenue.
Therefore this study consists of the objectives given as follows:

1. To understand the concept of insurance

2. To learn various types of insurance policies
3. To learn the marketing strategies for insurance products
4. To analyze the various market segments for insurance products.
5. To record and analyze the customer perception about the traditional and new unit link
plans of insurance.
6. To analyze the market potential for insurance companies in hadoti region(Kota,Bundi
& Jhalawar district)
It is a exploratory research as it covers both widespread objectives based on both primary
and secondary data. We collected data through various seminar, clubs meeting and public

73
 joints. To know acceptability above private insurance we interviewed existing advisor and
some customers.
NEED FOR THE TOPIC

Title of research is under taken is acceptability and perception in private insurance sector and
recruitment of Insurance Advisor for ICICI PRUDENTIAL life insurance who are an
authorized salesmen for insurance acts on behalf of company. Making business is the main
motto of every organization in today’s scenario insurance sector is emerging with good
business opportunities; so all companies are penetrating in insurance sector to make more
profit. Today insurance is not govern by public organization but private companies are also
coming big way. The recruitment process is rational it is difficult to search for an likely
advisor who fulfill all optional and mandatory parameters to be an Insurance Advisor.
Although we face various problem regarding seeking information about target or to whom we
had to and hoe to approach but the co-operation from various friends, colleagues and specially
the staff we have completed our work with satisfaction.

The business of insurance is related to the protection of the economies of asset every asset has
value & is expected to last for a certain period of time during which it will perform after that
the benefit may not be available but sometime after may get lost earlier, an accident or some
other unfitness may destroy it or make it non functional and deprive of the benefits. Which
may give to an adverse situation is a mechanism that helps to reduce the effect of such adverse
situation.

The topic “MARKET ANALYSIS OF INSURANCE PRODUCTS IN KOTA CITY

WITH SPECIAL REFERENCE TO ICICI PRUDENTIAL”, is to understand the customer
perception for the insurance products and to know the marketing strategies adapted by the
insurance companies to grab the right perspectives.

74
Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril can
not be avoided through insurances. The peril can sometime avoid. Through better safety and
damage control management. Insurances only tries to reduce the impact of the risk on those
who depends on that asset it only compensates the losses and that too, not fully only economic
consequences insured. if the loss is not financial, insurance may not be possible.

SIGNIFICANCE OF RESEARCH
Every one put his/her time money effort because of some significance.
• TO LIFE INSURANCE COMPANY’S: - As bank got valuable data
regarding acceptability of private insurance sector and pitfall of private insurance in
the private insurance in the insurance industry. Now the insurance company can take
some significant steps in the direction of increasing this market share secondly ICICI
PRUDENTIAL and other insurance companies got appropriate advisor, in their team
who work dedicatedly for the company.
• TO THE STUDENT: -
It also has a lot of significance to me we got the previous knowledge about
various function of insurance companies, their product and data regarding. The various
services, benefits provided by the companies. It helps us in identifying, targeting and
segmenting the potential area. It will help us in my future for the practical application
in real life.

RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact the research design conceptual structure with in research is conducted.

75
 Define research
problem

Review the
Literature

Design Research
f

Sample
Design

Collection of
data

Analysis of
data

f – feedback

Interpretation
& Findings

76
RESEARCH MERHODOLOGY
Research methodology is the way to systematically solve the research problem. Research
Methodology is given briefly as follows:

Research Type: - Descriptive

Date source: - Primary / secondary
Location of Research: -Kota,Bundi & Jhalawar (Hodoti Region)
Primary Data: - Survey
Sampling Method: - Random Sampling
Sampling plan: - Identify and select potential area

TABLE OF CONTENTS
PREFACE
ACKNOWLEDGMENT
CERTIFICATE
SR. NO. CHAPTER
1 COMPANY PROFILE
2 PROJECT PROFILE
3 RESEARCH METHODOLOGY
4 ANALAYSIS & INTERPRETATION
5 CONCULSION&FINDINGS
6 SUGGESTIONS
7 BIBLIOGRAPHY

77
 DETAILED INFORMATION OF GUIDE

Name : Mr.Chetan Sharma

Address : 454, Dadabari Ext. Kota. (Raj.)-09
Contact No. +91-9414227322, (0744)2504675

Work Experience / Projects Undertaken:

• Lecturer in OM Khothari Institute Of Management,Kota

1nd July’2007 to till date.
(Subjects : Finanacial Management , Management Information System ,
Management Accounting ,Advanced Accountancy,Managerial Statistics etc..)
• Lecturer in NLS INSTITUTE OF COMPUTER TECHNOLOGY, Kota
from 2nd January’2006 to 30th June’2007 .
• Marketing Officer in Pyramid Blue Pages Lmt. from June ‘2002 to
August ‘2003
• Marketing Officer in RR Investors, Kota .from August to December
‘2005.
• Participated in the International Workshop On Case Writing ,MDS
University
Ajmer.
• Consultant in Manuvi Consultancy on Project CSI Survey of HP CLUB
(Hindustan petroleum Corporation Ltd. ) retail outlets in Kota, Bundi and Bara region from
2004 .
• Project Leader of Dainik Bhaskar on Project “LIFEBOY ACTIVITY”
(AB KOI
DAR NAHI) Program in the month of February, 2005.
• Project On “Study of Operations of Depository Participant” From
Stock Holding Corporation of India Ltd., Kota. (During MBA)
This training includes Special Assignments of NTPC IPO and TCS IPO issues.

78
 Visiting Faculty:in the following Institutes
 Raj Rani Institute,Kota
 Master Mind Computers ,Kota

Professional Qualification:

• MCA (2006) (Master of Computer Application from IGNOU) (63.22%),

• MBA (2003-2005) from Modi Institute of Mgmt & Technology, Kota.
(Affiliated to University Of Kota., Kota) Raj. (59 %)
 Specialization Subjects: Major: Finance Minor: Marketing
• PGDCA (Post Graduation Diploma in Computer Application(62.67%) from IGNOU
• ADCA (Advanced Diploma in Computer Application) (64.17%) from IGNOU.
• B.Sc in Computer Science from Bangalore University (63.82%).

Software’s and Web-sites Designed:

1) Application developed “ Paper Inventory System “ for Resonance limited
,Kota on Asp.net 2.0.
2) Assisted in Designing a Project on Point Of Sales PHP platform on Linux
Server, London
3) Web sites Designed :
(a) http://www.nlsamdhaniya.org
(b) http://www.vijayvargiyasamaj.com
(c) http://www.mtssameettee.com
(d) http://www.alokschoolkota.org
(f) http://www.greencitysoftwares.com

79
Technical Knowledge:

OPERATION MS-DOS, WINDOWS 95,98,2000,NT, UNIX

SYSTEM
LANGUAGES VT.NET, C, C++, JAVA
GUI Tools VISUAL BASIC 6.0
RDBMS ORACLE 8I, MS-SQL SERVER7.0,MS-ACCESS
Server Programing PHP , ASP , ASP .net 2.0
languages

Personal Profile:

1. Father’s Name : Mr. G.S.Sharma

2. Date of Birth : 2nd Aug 1981.
3. Marital Status : Bachelor

(Signature)

ICICI Prudential Life insurance Pvt Ltd. (Kota)

80
 Survey 2006-2007
PERSONAL INFORMATION

NAME : ………………………………..

AGE : ……………………………….

GENDER : Male Female

MARITAL STATUS : Single Married

ADDRESS : ………………………………………………
………………………………………………
………………………………………………

1.What is your Educational Qualification.

10th Pass 12th Pass Graduate Post Graduate

2. Any Professional Qualification.

MBA C.A ICWA Others

Specify…………………..

3. What is your current Occupation.

Business Salaried Student House wife

81
4.Is your family income is more than 2,00,000.

Yes No

5.If working which field you belongs to.

Banking Pharma Investment Others

6.Do you have any sales experience.

Yes No
If yes …… Yrs

7.Do you have experience of selling of Financial Products.

Yes No

8.Are you interested to work with ICICI Prudential life insurance as a Financial consultant.

Yes No

If No, Please specify why

……………………………………………………………………………………………………
…………………………………………………………..
Thanks for your Kind Co-operation.

(Signature)

82
 Licensing of Insurance Agents
THE GAZETTE OF INDIA: EXTRAORDINARY [PART III ---SEC. 4]

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY, NEW DELHI

NOTIFICATION
New Delhi, the 14th July, 2000

Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations,

2000

F.No.IRDA/Reg./7/2000.--

In exercise of the powers conferred by sub-section (6) of section 42 and

clauses (k), (l), (m), (n), (o) and (p) of sub-section (2) of section 114A of the

Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the

Insurance Advisory Committee, hereby makes the following regulations,

namely:-

1. Short title and commencement.--(1) These regulations may be called Insurance

Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.-In these regulations, unless the context otherwise requires, -

(a) “Act” means the Insurance Act, 1938 (4 of 1938);

(b) “Approved Institution” means an Institution engaged in education and/or training
particularly in the area of insurance sales, service and marketing, approved and notified by
the Authority;
(c) “Authority” means the Insurance Regulatory and Development Authority established
under the provisions of Section 3 of the Insurance Regulatory and Development Authority
Act, 1999 (41 of 1999);

83
(d) “Composite insurance agent” means an insurance agent who holds a licence to act as
an insurance agent for a life insurer and a general insurer;
(e) “Corporate Agent” means a person other than an individual as specified in clause (i);
(f) “Designated person” means an officer normally in charge of marketing operations, as
specified by an insurer, and authorised by the Authority to issue or renew licences under
these regulations;
(g) “Examination Body” means an Institution, which conducts pre-recruitment tests for
insurance agents and which is duly recognised by the Authority;
(h) “Licence” means a certificate of licence to act as an insurance agent issued under
these regulations;
(i) “Person” means ---
(i) an individual;
(ii) a firm; or
(iii) a company formed under the Companies Act, 1956 (1 of 1956), and includes a
banking company as defined in clause (4A) of section 2 of the Act;
(j) “Practical Training” includes orientation, particularly in the area of insurance sales,
service and marketing, through training modules as approved by the Authority;
(k) “Proposal form” means an application for purchase of an insurance product which shall
be the basis of insurance contract;
(l) “Prospect” means a potential purchaser of an insurance product;
(m) “Recognised Board or Institution” means such board or institution as may be recognised
by any State Government or the Central Government.
(2) All words and expressions used herein and not defined but defined in the Insurance Act,
1938(4 of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of
1999), shall have the meanings respectively assigned to them in those Acts.

3. Issue or renewal of licence.---(1) A person desiring to obtain or renew a licence

(hereinafter referred to as “the applicant”) to act as an insurance agent or a composite
insurance agent shall proceed as follows:-

(a) the applicant shall make an application to a designated person---

(i) in Form IRDA-Agents-VA, if the applicant is an individual;

(ii) in Form IRDA-Agents-VC, if the applicant is a firm or a company:

Provided that the applicant, who desires to be a composite insurance agent, shall make two
separate applications.

(b) The fees payable by the applicant to the Authority shall be as specified in Regulation 7.

(2) The designated person may, on receipt of the application along with the evidence of
payment of fees to the Authority, and on being satisfied that the applicant, ---

(i) possesses the qualifications as specified under Regulation 4;

(ii) possesses the practical training as specified under Regulation 5;

84
 (iii) has passed the examination as specified under Regulation 6;
(iv) has furnished the application complete in all respects;
(v) has the requisite knowledge to solicit and procure insurance business; and
(vi) is capable of providing the necessary service to the policyholders;

grant or renew, as the case may be, a licence in Form IRDA-Agents-VB, along with identity
card in Form IRDA-Agents-VZ:

Provided that in the case of a corporate agent, the identity card shall be in Form IRDA-Agent-
VY.

Provided further that such identity card from one life insurer and such identity card from one
general insurer shall be provided to the applicant seeking licence to act as a composite
insurance agent.

Provided further that in the case of a firm or a company, all of its partners or directors, as the
case may be, shall fulfil the requirements of sub-clauses (i) to (iii).

Provided further a licence issued in accordance with this regulation shall entitle the applicant
to act as insurance agent for one life insurer or one general insurer or both, as the case may be.

(3) If the designated person refuses to grant or renew a licence under this regulation, he shall
give the reasons therefor to the applicant.

4. Qualifications of the applicant.--- The applicant shall possess the minimum qualification
of a pass in 12th Standard or equivalent examination conducted by any recognised
Board/Institution, where the applicant resides in a place with a population of five thousand or
more as per the last census, and a pass in 10th Standard or equivalent examination from a
recognised Board/ Institution if the applicant resides in any other place.

5. Practical Training . --- (1) The applicant shall have completed from an approved
institution, at least, one hundred hours’ practical training in life or general insurance business,
as the case may be, which may be spread over three to four weeks, where such applicant is
seeking licence for the first time to act as insurance agent.

Provided that the applicant shall have completed from an approved institution, at least, one
hundred fifty hours’ practical training in life and general insurance business, which may be
spread over six to eight weeks, where such applicant is seeking licence for the first time to act
as a composite insurance agent.

(2) Where the applicant, referred to under sub-regulation (1), is---

(a) an Associate/Fellow of the Insurance Institute of India, Mumbai;

(b) an Associate/Fellow of the Institute of Chartered Accountants of India, New Delhi;
(c) an Associate/Fellow of the Institute of Costs and Works Accountants of India, Calcutta;
85
(d) an Associate/Fellow of the Institute of Company Secretaries of India, New Delhi;
(e) an Associate/Fellow of the Actuarial Society of India, Mumbai;
(f) a Master of Business Administration of any Institution / University recognised by any
State Government or the Central Government; or
(g) possessing any professional qualification in marketing from any Institution / University
recognised by any State Government or the Central Government--

he shall have completed, at least, fifty hours’ practical training from an approved institution.

Provided that such applicant shall have completed from an approved institution, at least,
seventy hours’ practical training in life and general insurance business, where such applicant is
seeking licence for the first time to act as a composite insurance agent.

(3) An applicant, who has been granted a licence after the commencement of these regulations,
before seeking renewal of licence to act as an insurance agent, shall have completed, at least
twenty-five hours’ practical training in life or general insurance business, as the case may be,
from an approved institution.

Provided that such applicant before seeking renewal of licence to act as a composite insurance
agent shall have completed from an approved institution, at least, fifty hours’ practical training
in life and general insurance business.

6. Examination.—The Applicant shall have passed the pre-recruitment examination in life or

general insurance business, or both, as the case may be, conducted by the Insurance Institute
of India, Mumbai, or any other examination body.

7. Fees payable.-- (1) The fees payable to the Authority for issue or renewal of licence to act
as insurance agent or a composite insurance agent shall be rupees two hundred and fifty.

(2) The additional fees payable to the Authority, under the circumstances mentioned in sub-
section (3) of section 42 of the Act, shall be rupees one hundred.

8. Code of Conduct.----(1) Every person holding a licence, shall adhere to the code of
conduct specified below:-

(i) Every insurance agent shall,---

(a) identify himself and the insurance company of whom he is an insurance agent;
(b) disclose his licence to the prospect on demand;
(c) disseminate the requisite information in respect of insurance products offered for sale by
his insurer and take into account the needs of the prospect while recommending a specific
insurance plan;
(d) disclose the scales of commission in respect of the insurance product offered for sale, if
asked by the prospect;

86
(e) indicate the premium to be charged by the insurer for the insurance product offered for
sale;
(f) explain to the prospect the nature of information required in the proposal form by the
insurer, and also the importance of disclosure of material information in the purchase of an
insurance contract;
(g) bring to the notice of the insurer any adverse habits or income inconsistency of the
prospect, in the form of a report (called “Insurance Agent’s Confidential Report”) along
with every proposal submitted to the insurer, and any material fact that may adversely
affect the underwriting decision of the insurer as regards acceptance of the proposal, by
making all reasonable enquiries about the prospect;
(h) inform promptly the prospect about the acceptance or rejection of the proposal by the
insurer;
(i) obtain the requisite documents at the time of filing the proposal form with the insurer; and
other documents subsequently asked for by the insurer for completion of the proposal;
(j) render necessary assistance to the policyholders or claimants or beneficiaries in complying
with the requirements for settlement of claims by the insurer;
(k) advise every individual policyholder to effect nomination or assignment or change of
address or exercise of options, as the case may be, and offer necessary assistance in this
behalf, wherever necessary;

(ii) No insurance agent shall,----

(a) solicit or procure insurance business without holding a valid licence;
(b) induce the prospect to omit any material information in the proposal form;
(c) induce the prospect to submit wrong information in the proposal form or documents
submitted to the insurer for acceptance of the proposal;
(d) behave in a discourteous manner with the prospect;
(e) interfere with any proposal introduced by any other insurance agent;
(f) offer different rates, advantages, terms and conditions other than those offered by his
insurer;
(g) demand or receive a share of proceeds from the beneficiary under an insurance contract;
(h) force a policyholder to terminate the existing policy and to effect a new proposal from him
within three years from the date of such termination;
(i) have, in case of a corporate agent, a portfolio of insurance business under which the
premium is in excess of fifty percent of total premium procured, in any year, from one
person (who is not an individual) or one organisation or one group of organisations;
(j) apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by
the designated person, and a period of five years has not elapsed from the date of such
cancellation;

87
(k) become or remain a director of any insurance company;

(iii) Every insurance agent shall, with a view to conserve the insurance business already
procured through him, make every attempt to ensure remittance of the premiums by the
policyholders within the stipulated time, by giving notice to the policyholder orally and in
writing;

9. Cancellation of licence.--- The designated person may cancel a licence of an insurance

agent, if the insurance agent suffers, at any time during the currency of the licence, from any
of the disqualifications mentioned in sub-section (4) of section 42 of the Act, and recover from
him the licence and the identity card issued earlier.

10. Issue of duplicate licence.---The Authority may issue a duplicate licence replace a licence
lost, destroyed, or mutilated on payment a fee of rupees fifty.

11. Non-application to existing insurance agents. --- Nothing contained in Regulations 4 to

6 of these Regulations shall apply to the existing agents before the commencement of these
Regulations.

88
 FORM IRDA-AGENTS-VA
(See Regulation 3)
Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations,
2000.
APPLICATION FOR A LICENCE / RENEWAL OF LICENCE TO ACT AS AN
INSURANCE AGENT

TO
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,
DEPARTMENT OF LICENSING,
NEW DELHI.

DEAR SIRS,

I request that ---

(a) a licence to act as an insurance agent* / a composite insurance agent* may be
granted to me.
(b) *my licence bearing number ____________________ and expiry
date_____________ may be renewed for a further period of three years.

2. I hereby declare that particulars given below are true and that the licence for which I apply
will be used only by myself for soliciting or procuring insurance business for one life
insurer* / one general insurer* / both*.

(1) Name: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]

(2) Father's/Husband's Name [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]

(3) Full Address:

House No. : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Street: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Town: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
District: : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
State : : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
[ ]
Pin Code: : [ ][ ][ ][ ][ ][ ]
Telephone No. [ ][ ][ ][ ][ ][ ]---[ ][ ][ ][ ][ ][ ][ ][ ]
(STD Code -- Number):

(4) Date of Birth: Day- Month-Year [ ][ ]-[ ] [ ]-[ ][ ][ ][ ]

(5) Title : State 1 if are Mr., 2 Mrs., 3 Miss: [ ]

(6) If you ever held a Licence, state No. and date of expiry, otherwise say "Nil".
89
(a) Licence Number: [ ][ ][ ][ ] [ ][ ][ ][ ] [ ] [ ]
(b) Date of Expiry: Day- Month-Year [ ][ ]-[ ] [ ]-[ ][ ][ ][ ]

(7) If you apply for licence to work for a life insurer,

state 1, for a general insurer, state 2, for both state 3 in the box. [ ]
(8) If you are an applicant from a rural place,
state 1, in the box. [ ]
(9) Educational Qualifications.
State 1, if you passed Class X ; 2: Class XII; 3: Graduate;
4: Post-graduate ; 5: if you hold a professional qualification
such as ACA, FASI, AICWA.): [ ]

(10) Give particulars of pass in pre-recruitment test conducted by the Insurance Institute of
India or any examination body:

(a) Name of Examination Body: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]

[ ]
(b) Candidate's Number: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(c) Centre of Examination: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
[]
(d) Date of Passing: [ ][ ]-[ ][ ]-[ ][ ][ ][ ]
(Day- Month-Year)

(11) Give particulars of Practical Training completed from an approved institution.

(a) Training Hours completed:
(b) Name of Training Institute:
(c) Candidate's Number:
(d) Centre (Place) of Training:
(e) Starting Date of Training:
(Day- Month-Year)
[ ][ ]
[ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
[ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
[ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ] ]
[ ][ ]-[ ][ ]-[ ][ ][ ][ ]

3. I further declare that----

(a) I have not been found to be of unsound mind by a court of competent jurisdiction;
(b) I have not been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery
or an abetment of or attempt to commit any such offence by a court of competent jurisdiction;
(c) I have not been found guilty of or to have knowingly participated in or connived at any fraud, dishonestly or
mis-representation against an insurer or an insured in the course of any judicial proceeding relating to any
policy of insurance or the winding up of an insurance company or in the course of an investigation of the
affairs of an insurer; and
(d) #I have not violated the code of conduct specified under Regulation 8 of Insurance Regulatory and
Development Authority (Licensing of Insurance Agents) Regulations, 2000).

4. I have made the payment of licence fee of rupees two hundred and fifty and for which I
enclose the documentary evidence.

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5. I enclose the following documents in support of the educational qualification, pre-
recruitment test, and the practical training.
(a) ______________________ (b)_________________________

Place Yours faithfully,

Date: Signature of applicant

(* Strike out portion not required.)
(# not applicable to the applicants seeking licence for the first time.)

Notes and Instructions

1. An individual can apply for only one licence which will entitle him to solicit or procure
insurance business of any class and to act as an insurance agent for one life insurer, one
general insurer, or both.
2. The application should be filled in, as far as possible, in Hindi language or English
language.
3. Any correction or alteration made in any answer to the questions in the application should
be initialled by the applicant.
4. An applicant must be at least 18 years of age on the date of the application. If required the
applicant shall furnish proof of age.
5. An applicant shall furnish the proof of educational qualification, pass in the pre-
recruitment test conducted by the Insurance Institute of India, Mumbai or an examination
body approved by the Insurance Regulatory and Development Authority, and completion
of practical training from a training institution approved by the Insurance Regulatory and
Development Authority, along with the application. This is not applicable where the
applicant is an absorbed agent.
6. The fees payable by an applicant is rupees two hundred and fifty.
7. The name and the licence No. given in the application are identical with those shown in
the last licence held. If there is any subsequent change in the name, the reasons for the
same should be stated furnishing documentary evidence for the same.
8. The application should reach the designated person before the expiry of licence held by the
applicant but not more than three months before such expiry. If the application does not
reach the designated person at least 30 days before the date on which the last licence
ceases to be in force, an additional fee of one hundred rupees should be payable. In this
connection please also refer to the provisions of sub-sections (3) and (3A) of section 42 of
the Insurance Act, 1938.
9. If the applicant desires to work for a life insurer or a general insurer or both, as the case
may be, he should enclose the documentary evidence of the relevant pass in the pre-
recruitment test and the completion of the relevant practical training.

91
 FORM IRDA-AGENTS-VB
(SEE REGULATION 3)
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (LICENSING
OF INSURANCE AGENTS) REGULATIONS, 2000.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,

NEW DELHI

LICENCE NO. [ ][ ][ ][ ] [ ][ ][ ][ ] [ ] [ ]

LICENCE TO ACT AS AN INSURANCE AGENT UNDER PART II OF THE

INSURANCE ACT, 1938 (IV OF 1938)

NAME OF INSURANCE AGENT*/

COMPOSITE INSURANCE AGENT*:__________________________________

ADRESSS:

Having paid the prescribed fee and having made the necessary declaration is hereby authorised
to act an insurance agent for three years from__________________ for procuring or soliciting
insurance business of one life insurer* / one general insurer*/both*.

(*strike out portion not required)

Place

Date for Insurance Regulatory and Development

Authority

Designated Person:

Signature of Licence holder:

This licence is not valid unless it bears a fascimile of the signature of the chairperson of the
Insurance Regulatory and Development Authority and the initials of a person authorised by
him in this behalf, the signature of the licence holder and the identity card(s). The licence
holder should put his signature as soon as licence is received.
92
 (See Notes on the reverse)

Notes

1. If it is desired to renew this licence for a further period the procedure laid down in
Regulation 3 of INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(LICENSING OF INSURANCE AGENTS) REGULATIONS, 2000, shall be followed,
and application for renewal should reach the Designated Person before the licence expires.
In this connection attention is also invited to the provisions of sub-sections (3) and (3A) of
section 42 of the Insurance Act, 1938.
2. This licence authorises the licence holder to act as an agent for the insurance business
specified thereunder, and therefore no identifying mark or note of any description by
which the identity of an insurer might be established should be placed on the licence.
3. No correction in this licence will be valid unless initialled by the Insurance Regulatory and
Development Authority or a person authorised by him in this behalf.
4. The attention of the licence holder is drawn to the code of conduct specified under
Regulation 8 of INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(LICENSING OF INSURANCE AGENTS) REGULATIONS, 2000, and any violation of
code of conduct may result in cancellation of licence.

93
 FORM IRDA-AGENTS-VC
(See Regulation 3)
Insurance Regulatory and Development Authority (Licensing of Insurance Agents)
Regulations, 2000

APPLICATION FROM A FIRM OR COMPANY FOR A LICENCE / RENEWAL OF

LICENCE TO ACT AS AN INSURANCE AGENT

TO
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,
DEPARTMENT OF LICENSING,
NEW DELHI.

DEAR SIRS,

It is requested that ---

(a) *a licence to act as an insurance agent*/a composite insurance agent* may be
granted to our Firm/Company;
(b) *our licence bearning number ____________________ and expiry
date_____________ may be renewed for a further period of three years.

2. It is hereby declared that particulars given below are true and that the licence for which our
Firm/Company apply will be used only by our Firm/Company for soliciting or procuring
insurance business.

(1) Name: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]

(2) Full Address:

House No. : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Street: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Town: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
District: : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
State : : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Pin Code: : [ ][ ][ ][ ][ ][ ]
Telephone No. [ ][ ][ ][ ][ ][ ]---[ ][ ][ ][ ][ ][ ][ ][ ]
(STD Code -- Number):

(3) (i) (In the case of a Firm) the names of all the partners therein:

(iii) (In the case of a Company) the names of the Directors:

94
(4) Whether the Partnership Deed*/Memorandum of Association* contains as main objects
the carrying on of soliciting or procuring insurance business as an insurance agent. (Please
enclose a certified copy of the Partnership Deed*/Memorandum of Association*)

(5) The date from when the licence should be effective:

(6) If you apply for licence to work for a life insurer,
state 1, a general insurer, state 2, for both, state 3 in the box. [ ]

3. It is further declared that----

(a) any partner of our Firm*/ any Director of our Company* has not been found to be of
unsound mind by a court of competent jurisdiction;
(b) any partner of our Firm*/ any Director of our Company* has not been found guilty of
criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment
of or attempt to commit any such offence by a court of competent jurisdiction;
(c) any partner of our Firm*/ any Director of our Company* has not been found guilty of or to
have knowingly participated in or connived at any fraud, dishonestly or mis-representation
against an insurer or an insured in the course of any judicial proceeding relating to any
policy of insurance or the winding up of an insurance company or in the course of an
investigation of the affairs of an insurer;
(d) any partner of our Firm*/ any Director of our Company* has not violated the code of
conduct specified under Regulation 8 of Insurance Regulatory and Development Authority
(Licensing of Insurance Agents) Regulations, 2000);
(e) the application in Form IRDA-Agents-V for each partner of our Firm*/each Director of
our Company* has been enclosed along with this form;
(f) any partner of our Firm*/ any Director of our Company* is not a minor.

4. The payment of licence fee of rupees two hundred and fifty has been made and for which
the receipt is enclosed.

5. The documents in support of the educational qualification, pre-recruitment test, and the
practical training, in respect of all partners of our Firm*/ all Directors of our Company*
have been enclosed along with this form.

(* Strike out portion not required.)

Place Yours faithfully,

Date: Signature of applicant

95
 Notes

1. The application should be filled in, as far as possible, in Hindi language or English
language.
2. Any correction or alteration made in any answer to the questions in the application should
be initialled by the applicant.
3. The fees payable by an applicant is rupees two hundred and fifty.
4. The name and the licence No. given in the application are identical with those shown in
the last licence held. If there is any subsequent change in the name, the reasons for the
same should be stated furnishing documentary evidence for the same.
5. The application should reach the designated person before the expiry of licence held by the
application but not more than three months before such expiry. If the application does not
reach the designated person at least 30 days before the date on which the last licence
ceases to be in force, an additional fee of one hundred rupees should be payable. In this
connection please also refer to the provisions of sub-sections (3) and (3A) of section 42 of
the Insurance Act, 1938.
6. If the Firm or Company desires to act as an insurance agent or a composite insurance agent
, as the case may be, the documentary evidence of the relevant pass in the pre-recruitment
test and the completion of the relevant practical training of partners of the Firm or
directors of the Company should be enclosed.
7. In case of a Firm, the signatory to the application (being a partner) should enclose a
certified copy of the resolution of all the partners authorising him to make the application.
In the case of a Company, the signatory to the application (being a director) should enclose
a certified copy of the resolution of Board of Directors authorising him to make the
application.

96
 FORM IRDA-AGENTS-VZ

(See Regulation 3)
Insurance Regulatory and Development Authority (Licensing of Insurance Agents)
Regulations, 2000)

Individual Insurance Agent's identity card

Photo

Agent's Licence No.:

Name of the Agent:
Father's/Husband's Name:
Office of the Insurer with whom the agent is attached:
Agent's
signature
The holder of this card is authorised to sell our insurance products,
Male/Female as per our terms and conditions.
Issued on:
[ ][ ]-[ ][ ]-[ ][ ] Signature of Designated Person
Valid upto: Name of Insurer (With Seal)
[ ][ ]-[ ][ ]-[ ][ ]
born on:
[ ][ ]-[ ][ ]-[ ][ ] (Please see on the reverse)

Address and telephone numbers of the Insurer: (If required to be

contacted by any one in connection with the holder of this card):

Address and telephone numbers of the Agent:

97
 FORM IRDA-AGENTS-VY

(See Regulation 3)
Insurance Regulatory and Development Authority (Licensing of Insurance Agents)
Regulations, 2000)

Corporate Agent’s Identity Card

Corporate Insurance Agent's Licence No.:

Name of the Corporate Insurance Agent:

Signature of the Applicant (as authorised by the Corporate Agent)

Office of the Insurer with whom the corporate insurance agent is

attached:

Valid upto: This card authorises the corporate insurance agent named above to
[ ][ ]-[ ][ ]-[ ][ ] sell our insurance products, as per our terms and conditions.
born on:
[ ][ ]-[ ][ ]-[ ][ ] Signature of Designated Person
Name of Insurer (With Seal)

(Please see on the reverse)

Address and telephone numbers of the Insurer: (If required to be contact by any one in
connection with the holder of this card):

Address and telephone numbers of the Corporate Insurance Agent:

Names of Partners / Directors of the Corporate Insurance Agent:

N. RANGACHARY, Chairperson
[No. Advt.-3/4/Exty/161/2000]

98