Professional Documents
Culture Documents
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PREFACE
EXECUTIVE SUMMARY
INSURANCE INDUSTRY
MEANING OF INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of
loss to life and property. Insurance is a collective bearing of risk. Insurance
is a financial device to spread the risks and losses of few people among a
large number of people , as people prefer small fixed liability instead of big
uncertain and changing liability. Insurance can be defined as a “legal contract between
two parties whereby one party called insurer undertakes to pay a fixed amount of money
on the happening of a particular event, which may be certain or uncertain.” The other
party called insured pays in exchange a fixed sum known as premium. Insurance is
desired to safeguard oneself and one’s family against possible losses on account of risks
and perils. It provides financial compensation for the losses suffered due to the happening
of any unforeseen events.
IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial market . Insurance services
play predominant role in the process of financial intermediary. Today insurance industry is
one of the most growing sectors in India. There is lot of potential in the Indian Insurance
Industry There are many issues, which require study. The scope of the study of insurance
industry of India would be very great as there are ongoing developments in the industry
after the opening of the sector. The major issue right now is the hike in FDI (Foreign
Direct Investment) limit from 26% to 49% in the insurance sector. Government may in
near future allow 49% FDI in Insurance. This would lead to more capital inflow by
foreign partners. Another major issue is the effects on LIC after the entry of private
players in the market. Though market share of LIC has been affected, it has improved in
terms of
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efficiency. There are number of other hot topics like Rural marketing of insurance, new
distribution channels, new product ranges, insurance brokers’ regulation , incentive scheme
of development officers of LIC etc. So it offers lot of scope for studying the insurance
industry. Right now the insurance industry has great opportunities in a country like India
or China which huge population. Also the penetration of insurance in India is very low in
both life and non-life segment so there is lot potential to be tapped. Before starting the
discussion on insurance industry and related issues, we have to start with the basics of
insurance. So first we understand what is insurance? How the word ‘insurance’ is
different from the word ‘assurance’? etc.
The insured event was bound to happen sooner or later under assurance but
the event insured against may or may not happen under insurance .The principle of
“indemnity” applies to “insurance contracts” (non-life) only. The scope of the word, insurance
is wider.
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PRINCIPLES OF INSURANCE
It means “maximum truth”. Both the parties should disclose all material information
regarding the subject matter of insurance.
This means the insurer has the right to stand in the place of the insured after
settlement of claims in so far as the insured’s right of recovery from an alternative
source is involved. The insurer before the settlement of the claim may exercise the right.
In other words, the insurer is entitled to recover from a negligent third party any loss
payments made to the insured. The purposes of subrogation are to hold the negligent
person responsible for the loss and prevent the insured from collecting twice for the same
loss. The concept of ‘Third Party Claims’ is based on the same principle.
The cause of loss must be direct and an insured one in order to claim of
Compensation.
The assured must have insurance interest in the life or property insured.
Insurable interest is that interest which considerably alters the position of
the assured in the event of loss taking place and if the event does not take
placed, he remains in the same old position.
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There are three parties in a life insurance transaction: the insurer, the
insured, and the owner of the policy (policyholder), although the owner and
the insured are often the same person.
Life insurance may be divided into two basic classes – term and permanent.
• Whole life insurance provides for a level premium, and a cash value
table included in the policy guaranteed by the company. The primary
advantages of whole life are guaranteed death benefits, guaranteed
cash values, fixed and known annual premiums, and mortality and
expense charges will not reduce the cash value shown in the policy.
1) Nomination
When one makes a nomination, as the policyholder you continue to be the
owner of the policy and the nominee does not have any right under the
policy so long as you are alive. The nominee has only the right to receive the
policy monies in case of your death within the term of the policy.
2) Assignment: -
3) Death Benefit: -
The primary feature of a life insurance policy is the death benefit it provides.
Permanent policies provide a death benefit that is guaranteed for the life of
the insured, provided the premiums have been paid and the policy has not
been surrendered.
5) Dividends: -
Many life insurance companies issue life insurance policies that entitle the
policy owner to share in the company's divisible surplus.
6) Paid-Up Additions: -
Dividends paid to a policy owner of a participating policy can be used in
numerous ways, one of which is toward the purchase of additional coverage,
called paid-up additions.
7) Policy Loans: -
Some life insurance policies allow a policyowner to apply for a loan against
the value of their policy. Either a fixed or variable rate of interest is charged.
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This feature allows the policy owner an easily accessible loan in times of
need or opportunity.
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1) Risk cover: -
Life Insurance contracts allow an individual to have a risk cover against any
unfortunate event of the future.
2) Tax Deduction: -
Under section 80C of the Income Tax Act of 1961 one can get tax deduction
on premiums up to one lakh rupees. Life Insurance policies thus decrease the
total taxable income of an individual
3) Loans: -
4) Retirement Planning: -
5) Educational Needs: -
Similar to retirement planning the cash values that flow from ones life
insurance schemes can be utilized for educational needs of the insurer or his
children.
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1. A plan of insurance is said to be different from another if: the conditions when the sum
assured becomes payable are different. The conditions for payment of sum assured are different,
the conditions when the sum assured becomes payable are different.
2. Every plan of insurance is a combination of two basic plans.(pure term and pure endowment)
. A whole life plan is basically a term insurance plan .A Whole Life plan is a term assurance plan
with an indefinite term. For the same age and SA, the premium under an ordinary Whole Life
policy will be less than in a limited payment Whole Life policy.
6. The sum assured under some policies increase every year. The sum assured under some
policies reduce every year .
7. The SA payable on death can be more than the SA payable on maturity. The SA payable on
maturity can be more than the SA payable on death. The SA payable on death may be paid long
after the death of the insured.
8. In a limited payment policy, the premium stops before the end of the term. For the same age
and benefits, the premium under a limited payment policy will be more than in a non-limited
plan. Limited payment plan policies may be preferred by persons whose careers are likely to be
short. Limited payment plan policies may be preferred by persons who do not expect to be in
active employment for long.
9. For the same age, SA and term, the premium under an Endowment polic y will be less than in
a limited payment Endowment policy.
A convertible Plan: which provides in its terms and conditions, that it can be changed to
another plan, after or within a certain period after commencement.
10. In a convertible plan, the conversion is done on the request of the policyholder. Convertible
plans allow whole life plans to be altered to endowment plans. If the option of conversion is not
exercised, the policy will continue as before. A conversion becomes effective when the
policyholder exercises the option. Money back policies are not convertible plan policies.
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11. A joint life policy may cover a married couple under one policy and may cover partners in
business under one policy. The premium here will be less than the cost for insuring the two
persons separately.
Insurance can be taken on the lives of children, who are minors.The proposal will have to be
made by a parent or a guardian. The date on which the risk commences for the child at the
end of the deferment period is called the‘deferment date’. The policy anniversary after
attaining the age of maturity, that is 18, or any later date as may be chosen ,will be the
‘vesting date’.
12. In Children’s policies minor children are insured. The insured child becomes the owner of
the policy on vesting date. The ownership of the policy changes on the vesting date .The policy
vests at age 18 last birthday. Risk will commence on deferred date automatically .On the
deferred date, the insured child need not be a major. The vesting date and deferred date is a
policy anniversary.
13. A variable insurance plan combines an insurance plan with an investment plan It is good
when investment conditions are favorable and when the stock market is booming.
14. Industrial assurance is meant for people with low incomes. In industrial assurance the lapse
rates tend to be high.
In SSS policies, the insurer arranges with the employer to deduct the premium from the salary
of the worker policyholders and remit the same to the insurer’s office every month.
. 15. A salary savings scheme policy can be taken for a SA of Rs.10 lakh. In salary savings
scheme plans, the premium is deducted from the pay roll. The policyholder, the insurer and the
agent are benefited if a policy is under the salary savings scheme. The premium under a SSS
policy is paid monthly and the premium under a SSS policy is one twelfth the annual premium.
In a SSS policy, the policyholder has to ensure that premium is paid.
16. In group insurance, a single policy is issued covering many persons and there is only one
proposal to insure many. A master policy is issued and the proposal is made by the employer. It
is relatively cheaper than individual insurances. The amount of cover for each member is fixed
by the terms of the policy and its scheme. The cover for an
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employee can be equal to his age multiplied by a fixed number. The members of a housing
society, members of a toddy tappers association, trade union or a sports club can get a group
policy for its members, a bank can take out a group policy for its account holders or a finance
company can take out a group policy for those taking loans from it. Hence, Group insurance
business is growing faster than individual business & it socially very relevant.
17. In group insurance, the members covered and premium charged changes every year. The
amount of insurance for any member may change from year to year. Premiums under some
group policies are paidby governments. In group policies, the chance of adverse selection is low
because there is no option to choose quantum of insurance cover and there is no option to choose
entry or exit. Personal histories are not examined. Entry into and exit from group cover, is
controlled by the terms of the policy. A group insurance cover is given only if there is a certain
minimum number (25 is adequate). A group policy is not granted if the group has been formed
only to avail of cover. The cover could depend on the ages of the lives insured. The cover could
be a uniform flat rate for all employees of a certain category. Employees have less anxiety if
employers have taken group policies. Group policies give employees benefits better than legally
required. Group insurance policies can be tailor made to suit specific needs. Members of a group
will get certificates showing details of cover Profit sharing, in group insurance, is worked on
actuarial bases
20. Group insurance differs from salary savings schemes in the following respects:
21. Group superannuation polices provide pensions to retiring employees and require that
trustees be appointed.
22. Group gratuity policies require that trustees be appointed. Group policies help employers to
avoid fluctuations in gratuity outgoes
24. In life insurance, the word ‘rider’ refers to additional clauses a rider supplements or adds to
an existing condition in the policy, Riders provide supplementary benefits to the basic plan. A
premium waiver option is allowed as a rider. The premium on riders cannot exceed specified
limits of the basic premium. Annuities are called the reverse of life insurance. Here a
person agrees to pay to the insurer a specified capital sum in return for a
promise from the insurer to make a series of payments to him so long as he lives.
25. There is no death risk cover in an annuity. Though called an annuity, the payments may be
paid every month. An annuity policy guarantees a pension. Annuities purchased during different
years may all commence on the same date. Physically handicapped persons may be given
annuities at ordinary rates. The amount of annuity depends on the age at which the annuity
commences.
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HISTORY OF INSURANCE
The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land
of Babylonia where traders used to bear risk of the carvan by giving loans, which were later
repaid with interest when the goods arrived safely. The concept of insurance as we know today
took shap transact business. This coffee house became so popular that century. Marine insurance
companies came into existence by the end of the Lloyd’s became the one of the first modern
insurance companies by the end of the eighteenth century. These companies were empowered to
write fire and life in 1688 at a place called Lloyd’s Coffee House in London where risk bearers
used to meet to insurance as well as marine. The Great Fire of London in 1966 caused huge loss
of property and life. With a view to providing fire insurance facilities.
Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire office.
The early history of insurance in India can be traced back to the Vedas. The Sanskrit term
‘Yogakshema’ (meaning well being), the name of Life Insurance Corporation of India’s
corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of
‘community insurance’ around 1000 BC.
Life insurance in its modern form came to India from England in 1818. The Oriental Life
Insurance Company was the first insurance company to be set up in India to help the widows of
European community. The insurance companies, which came into existence between 1818 and
1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent. The
first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence
in 1870 to cover Indian lives at normal rates.
The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life
branches of insurance were enacted to provide strict state control over insurance business. This
amended insurance Act looked into investments, expenditure and management of these
companies. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and
75 provident societies carrying on life insurance business in India. Insurance business flourished
and so did scams, irregularities and dubious investment practices by scores of companies. As a
result the government decided to nationalize the life assurance business in India. The Life
Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life
insurance was followed by general insurance in 1972.
.
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1818 British introduced the life insurance to India with the establishment of the Oriental
Life Insurance Company in Calcutta
1956 Nationalization took place. Government took over 245 Indian and foreign insurers
and provident societies.
.
1972 Non-life business nationalized, General Insurance.
1993 Malhotra committee was constituted under the chairmanship of former RBI chief R.
N. Malhotra to draw a blue print for insurance sector reforms.
March 2000 IRDA started giving license to private insurers. ICICI Prudential, HDFC
were first private players to sell insurance Policies
2002 Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting
non-life claims in the cashless mode.ket in India
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Risk protection has been a primary goal of humans and institutions throughout history.
Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance
was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent,
that as a way of spreading the risk, a number of ships would carry a portion of
another ship's cargo so that if one ship was captured, the entire shipment would not be lost.
In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders
used to bear risk of the caravan trade by giving loans that had to be later repaid with interest
when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the
practice. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia”
referring to cargo. These provided the underpinning for marine insurance contracts. Such
contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a
surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders
were the underwriters.
Life insurance came about a little later in ancient Rome, where burial clubs
were formed to cover the funeral expenses of its members, as well as help
survivors monetarily. With Rome's fall, around 450 A.D., most of the
concepts of insurance were abandoned, but aspects of it did continue through
the Middle Ages, particularly with merchant and artisan guilds. These
provided forms of member insurance covering risks like fire, flood, theft,
disability, death, and even imprisonment.
During the feudal period, early forms of insurance ebbed with the decline of travel and long-
distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance
would again reemerge. Insurance in India can be traced back to the Vedas. For instance,
yogakshema, the name of Life Insurance Corporation of India's corporate
headquarters, is derived from the Rig Veda. The term suggests that a form of
"community insurance" was prevalent around 1000 BC and practiced by the
Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist
period to help families build houses, and to protect widows and children.
Modern Insurance
to discuss and transact business deals. While serving as a means of risk-avoidance, life insurance
also appealed strongly to the gambling instincts of England's burgeoning middle class.
Gambling was so rampant, in fact, that when newspapers published names of prominent people
who were seriously ill, bets were placed at Lloyd’s on their anticipated dates of death. Reacting
against such practices, 79 merchant underwriters broke away in 1769 and two years later formed
a “New Lloyd’s Coffee House” that became known as the “real Lloyd’s.” Making wagers on
people's deaths ceased in 1774 when parliament forbade the practice.
The U.S. insurance industry was built on the British model. The year 1735
saw the birth of the first insurance company in the American colonies in
Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored
the first life insurance corporation in America for the benefit of ministers
and their dependents. And the first life insurance policy for the general
public in the United States was issued, in Philadelphia, on May 22, 1761.
But it wasn't until 80 years later (after 1840), that life insurance really took
off in a big way. The key to its success was reducing the opposition from
religious groups.
In 1835, the infamous New York fire drew people's attention to the need to provide for sudden
and large losses. Two years later, Massachusetts became the first state to require companies by
law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can
cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the
risks are spread among several companies, was devised specifically for such situations. With the
creation of the automobile, public liability insurance, which first made its appearance in the
1880s, gained importance and acceptance? More advancement was made to insurance during the
process of industrialization. In 1897, the British government passed the Workmen's
With the creation of the automobile, public liability insurance, which first made its appearance in
the 1880s, gained importance and acceptance? More advancement was made to insurance during
the process of industrialization. In 1897, the British government passed the Workmen's
Compensation Act, which made it mandatory for a company to insure its
coverage to members, as do most labor organizations. Manyemployers sponsor group insurance
policies for their employees, providing employees against industrial accidents. During the 19th
century, many societies were founded to insure the life and health of their members, while
fraternal orders provided low-cost, membersonly. insurance. Even today, such fraternal orders
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continue to provide insurance not just life insurance, but sickness and accident benefits and old-
age pensions. Employees contribute a certain percentage of the premium for
these policies.
Final Thoughts
Even though the American insurance industry was greatly influenced by Britain, the US market
developed somewhat differently from that of the United Kingdom. Contributing to that was
America's size; land diversity and the overwhelming desire to be independent. As America
moved from acolonial outpost to an independent force, from a farming country to an industrial
nation, the insurance business developed from a small number of
companies to a large industry. Insurance became more sophisticated, offering new types of
coverage and diversified services for an increasingly complex country.
The Life Insurance Industry has an enviable track record among public sector units. It has a
Consistent profit and d investments in the Government sector and socially- oriented sectors the
Industry has contributed immensely to the nation's development. The industry is recognized as
one of the largest financial Institutions in the country. The ventures initiated by the industry in
the areas of Mutual Fund Housing Finance has done exceedingly well in recent years. To protect
the country's foreign exchange reserves, the reinsurance arrangement are so organized that
maximum retention is made possible within the country while at the same time protecting
interests of the policy holders. Dividend paying record accompanied by a steady growth in its
financial resources.
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Company profile
Founder
Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud
patriot, the leader of men, the architect of India’s capital markets, the champion of
shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealthconverted this
fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned Reliance a
place on the global Fortune 500 list, the first ever Indian
Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a
place patronised by a small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors
to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Under Dhirubhai’s extraordinary vision and leadership Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become India’s largest private sector enterprise.
Though the company's oil-related operations form the core of its business, it has
diversified its operations in recent years. After severe differences between the
founder's two sons, Mukesh and Anil Ambani, the group was divided between them in 2006.
Reliance Capital (RCAP), a non banking financial company, is the financial service arm of the
Anil Dhirubhai Ambani Group (ADAG) which has varied interests in areas like telecom, energy,
entertainment. Reliance Capital is one of India's leading and fastest.
growing private sector financial services companies and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth.
Through the company’s subsidiaries, it offers products and services like mutual fund, life
insurance and general insurance. It has sizable private equity and proprietary investments and is
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pursuing new ventures like stock broking, consumer financing and the asset recovery business as
well. Reliance Capital, initially focused on the asset management business, has recently
expanded its presence in life insurance, general insurance space and ebroking business as well.
Reliance Capital launched Reliance Money, a retail broking and distributor of a range of
financial service products. It has a network of over 2,200 outlets (India’s largest retail network
by a non banking financial services company). Reliance Capital has 100% economic interest in
all the business.
“We will create the next generation communication network and information
technology infrastructure that will bring immense value to every Indian, and
leapfrog India into the center stage of global Infocomm space “
“We were small then - an infant in industry
we are small now - at the doorsteps of opportunity.”
- Dhirubhai Ambani
Elected in India as
“Businessman of the Millennium”
Founded by Shri. Dhirubhai Ambani in the year 1966. technology, energy, power, retail,
textiles, infrastructure services, capital
markets, & logistics
Reliance Group was started with a capital of Rs. 15000/-.
He converted this fledgling enterprise into a Rs. 95,000 crore colossus.
Over time, Reliance Group has diversified into a core specialization in
Chairman
Shri. Anil D. Ambani was born to Dhirubhai Ambani and Kokilaben Ambani on June 04,
1959 at Mumbai
He did his schooling and graduation in Mumbai and thereafter pursued his Masters of
Business Administration from Wharton Business School, USA
Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance
Communications, Reliance Capital, Reliance Energy, Reliance Health, Reliance
Entertainment and Reliance Natural Resources Limited.
Under his leadership, Reliance pioneered India's first forays into overseas capital markets
with international public offerings of global depository receipts, convertibles and bond
In June 2004, he was elected for a six-year term as an independent member of the Rajya
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic
COMPANY OBJECTIVE
At Reliance Life Insurance, we strongly believe that as life is different at every stage, life
insurance must offer flexibility and choice to go with that stage. We are fully prepared
and committed to guide you on insurance products and services through our well-trained
advisors, backed by competent marketing and customer services, in the best possible
way.
It is our aim to become one of the top private life insurance companies in India
and to become a cornerstone of RLI integrated financial services business in
India.
COMPANY MISSION
“To set the standard in helping our customers manage their financial future .
ACHIEVEMENTS -:
RECRUITMENT
Recruitment is the process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are submitted. The
result is a pool of applicants from which new employees are selected.
SELECTION
Selection is the process of picking individuals (out of the pool of job
applications) with requisite qualifications and competence to fill job in the
organization. In simple words, it is the process of differentiating between
applicants in order to identify these with a greater likelihood of success in a
job.
The Branch Manager, which includes-, will conduct the process of selection
of cda manager
1) Personal Interview: -
The first step of selection of CDA Manager Reliance Life Insurance Company Limited is to
conduct a personal interview of an applicant by the Branch Manager .
3) Negotiation: -
After clearing the interview with Regional Head, the
negotiation will be provided to the applicant.
. 4) Medical Examination: -
After that, the medical check up should e made to the
applicant.
5) Selection: -
After clearing all the above steps the applicant should be
appointed/selected as a CDA Manager .
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Training and Development is any attempt to improve current or future employee performance by
increasing an employee’s ability to perform through learning usually by changing the employee’s
attitude or increasing his/her skills and knowledge. The need for training and development is
determined by the employee’s performance deficiency, computed as follows
:
CAREER DEVELOPMENT
They are also providing career development plans, which will identify
potential and create avenues for growth.
COMMUNICATION
INCENTIVES
Incentives are monetary benefits paid to workmen in recognition of their
outstanding performance. They are providing an aggressive reward and
recognition plans, which are including sales incentives.
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SERVICES
PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of the individual with respect to his/her
performance on the job and his/her potential for development. Performance appraisal is a formal,
structured system of measuring and evaluating an employee’s job related behaviors and
outcomes to discover how and why the employee is presently performing on the job
and how the employee can perform more effectively in the future so that the
employee, organization and society all benefit. They are providing a balanced scorecard
approach for strategy deployment and performance measurement, which goals and measure
financial, customer focused, process related and employee development related initiatives. In
addition to this, the Branch Manager should measure the performance of the CDA Managers at
every six months and the CDA Manager should measure the performance of the advisors/agents.
If the performance is best then he/she will be prompted.
DEPARTMENT
Sources of Recruitment
Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external sources.
The sources within the organization itself (like transfer of employees from one
department to other, promotions) to fill a position are known as the internal
sources of recruitment. Recruitment candidates from all the other sources (like
outsourcing agencies etc.) are known as the external sources of recruitment.
SOURCES OF RECRUITMENT
Internal Sources
the organizations as the people are already aware of the organizational culture and the policies
and procedures.
.
5. The dependents and relatives of Deceased employees and
Disabled employees are also done by many companies so that the
members of the family do not become dependent on the mercy of
others.
External Sources
1. Press Advertisements: Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment. The main advantage of this method is that it has a wide reach.
5. Labor Contractors: Manual workers can be recruited through contractors who maintain close
contacts with the sources of such workers. This source is used to recruit labor for construction
jobs.
8) Recruitment at Factory Gate: Unskilled workers may be recruited at the factory gate these
may be employed whenever a permanent worker is absent. More efficient among these may be
recruited to fill permanent vacancies
.
are those factors which cannot be controlled by the organization. The internal
and external forces affecting recruitment function of an organization are:
Internal Factors
The internal factors i.e. the factors which can be controlled by the
organization are:
3. Size of the Firm: The size of the firm is an important factor in recruitment
process. If the organization is planning to increase its operations and
expand its business, it will think of hiring more personnel, which will
handle its operations.
External Factors
The external forces are the forces which cannot be controlled by the organization. The major
external forces are:
1. Supply and Demand: The availability of manpower both within and outside
the organization is an important determinant in the recruitment process. If
the company has a demand for more professionals and there is limited
supply in the market for the professionals demanded by the company,
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then the company will have to depend upon internal sources by providing
them special training and development programs.
2. Labor Market: Employment conditions in the community where the
organization is located will influence the recruiting efforts of the
organization. If there is surplus of manpower at the time of recruitment,
even informal attempts at the time of recruiting like notice boards display
of the requisition or announcement in the meeting etc will attract more than enough applicants.
HR MANPOWER REQUISITION
EMPLOYEE APPLICATION
SELECTION PROCESS :
Behavioral Strengths
Area Of Improvement
Recommendation
1. If applied / shortlisted by any Reliance ADA Group: Yes/No.____ If yes status & contact
person .
2. Technical Strength.
3. Behavioral Strength.
4. Reasons of person fitting into the position.
5. Areas of improvement / probe.
CDA MANAGERS
Role of CDA managers-
To develop a team of channel develop associates.
To develop them and motivate them to build a strong team of advisors under
them.
To solicit business from them.
Reference check-
Once the hiring decision is taken, the candidate is contacted and informed about the decision to
conduct a reference check with the referees whose names have been provided in the personal
history form. Many employers request names, addresses and telephone numbers of references for
the purpose of verifying information and perhaps gaining additional background information on
an applicant.
36
To check whether or not the applicant was truthful about his or her employment history
Checking of all documents required for cda manager job . The documents which are
required are
C.V
Two photograph.
High school and intermediate school marksheet
Pan card
Driving license.
Graduation marksheet.
Postgraduation marksheet.
Reference letter of a previous company.
AOP (Annual Operating Plan), this process is taken up every year. It is taken up at Personal
Level and Entity Level. Several points like Revenue generation, Acquisition number, etc.
4) Employee application
Online application is also important for uploading resume and applying for cda
manager post.
It is done by following method-:
Click on website www.reliancelifeinsurance.com
Then select career option from tab.
Click on vacancies opotion. After that select cda manager post according to the
location prefferd.
Application form is appeared on the screen. After filling of form thank you page
is shown it means form is accepted by the administrator
37
a) OFFER CLOSING
2. negotiation.
b) OFFERMAIL
4. An offer mail is being released to all the selected candidate .In this offer
mail all the details regarding joining are present. Generally an offer mail is
floated before two days of joining.
PROCESS OF JOINING
Final Joining date is the date decided by the HR person .Jonnie has to fill two forms on
the day of joining. One form is online and one is Joining kit.
VALIDATION
: Base data form is used as a reference during validation of an employee joining kit.
Without validation a joining kit cannot be dispatched to HO.
While evaluating the joining kit it is required that joiner must submit Xerox of the entire
document that were asked in the offer mail. Signature of the joiner is mandatory in the company
appointment letter. It is also to be check that joining kit is been properly filled with out any
errors.
Before dispatching the joining kit to Mumbai head office following things are
provided:
Compensation sheet.(CTC Comparables)
Reference check for E3 and above
BDF validation(validation of the salary , designation, grade, function,
reporting authority, SAP code)
Any individual with strong entrepreneur skills and will to entrust himself for the
growth of self and the company can be considered for the position.
Based on the capaility and salary from the previous employment, a CDA Manager
can be recruited at any of the following 3 levels
If CDA Manager fails to achieve his 3 month goal sheet, within the stipulated
time, his salary will continue to be the same as the time of joining.
However if he completes his cumulative target at the end of next month his salary
will be then changed as per the above provision.
Each CDA Manager will be reviewed every 3 months for his activities and
achievements.
Written review letters (PIP )to be given with proper acknowledgement and clearly
mentioning the rareas of poor performance, time for improvement and seperation
from the company.
Minimum bench mark level for every month has to be delivered, even if the WRP
targets as per the goal sheet is followed.
41
Apart from the Salary and Career Progression, CDA managers are also
entitled for incentives to boost their earnings.
CDA Managers at all levels are entitled for the following incentives
o CDA Recruitment Bonus
o Client Acquistion Bonus
o WRP Bonus
CDA Managers will also be entitled for
o Branch office set up & maintenance allowance
o Club lounge.
CDA Recruitment Bonus, motivates and enables every CDA Manager to earn
more as he recruits more and more CDASs under him.
Recruitment Bonus will be calculated and paid every quarter, based on the
number of direct CDAs recruited by a CDA Manager in the resprective quarter.
(Quarter ending June,Sept,December and March)
CDA Recruitment stands for a CDA, who logs in atleast 2 Active ARFof RS
10000 WRP.Each or 1 Active ARF of min Rs 20,000 WRP, in the month of
joining.
Month of joining will begin from the 1st day of next month of the date of actual
joining of a CDA.
42
SELECTION PROCESS
MASTER TRAINER
43
A person who gives training to the advisors CDA agents and employees. Training and
Development is any attempt to improve current or future employee performance by increasing an
employee’s ability to perform through learning usually by changing the employee’s attitude or
increasing
his/her skills and knowledge. The need for training and development is
determined by the employee’s performance deficiency, computed as follows:
Training & Development = Standard Performance – Actual Performance
Objectives:
Advisors
1. Improving the pass percentage
2. Improving productivity
3. Product-Process training
4. More Early Bird high-fliers.
5. More first month MDRT
6. Creating maximum club members
CDAs
1. Creating more trained CDAs
2. Gateway Training
3. Business Asset Training
4. Level 3 Training
Employees
1. Induction Training
2. Product-Process training
44
ROLE OF MASTERTRAINER
1. IC 33 Refresher Training - 2 days - 4 hours per day ( 2 Papers per day ) or 1 day -
6 hours ( 3 Papers ) | Faculty - Training Manager or Master Trainer
Times ahead it is felt that licensing will be made mandatory and it will become necessary
for every candidate to pass the exam, so we have designed a set of 4 question papers with
most likely questions, which shall be discussed during the training with the concerned
advisors. Solving the question papers will enable to boost confidence and gain knowledge
in the participants and chances of passing the exams will be enhanced.
Enabling the advisor with the product sales pitch is a very essential need of the hour.
Therefore it is been decided to focus on only 1 or 2 products in the product training sessions
and instead of teaching the product through PPT, the product sales pitch to be delivered with
apt and simple examples, including mock sessions.
45
Topics which could aid in increasing the sales may be taken as and when felt, such as
Income Tax benefits on Insurance, Financial Planning, Goldmine etc. Small activity
based sessions to be planned to increase the knowledge with fun.
1. Gateway Training - Online Training - Within the month of Joining of New CDA |
Facilitator - Training Manager or Master Trainer
It is imperative for every new joining CDA to understand about the way our channel
works, TM/CDA Manager are the best people to train them upon the same, but we have
also designed a standard Gateway Training Online Program, which the CDAs can
directly undergo in their free time and appear for the exam thereafter.(Both the module
and the test paper are made available
on the CDA 1 View - The exclusive portal for every CDA). However Training Managers
or Master Trainers would also facilitate the new joining CDAs immediately in the month
of their joining while they try to undergo the Gateway Training. Therefore requesting
you all is to pass on the data of all the new joining CDAs to the Training Managers
so that the gateway training can be smoothly planned.
2 day program for the newly converted Silver Level CDAs to be planned within the month of
conversion. Number of participants per program should be between 25 - 30. Ideally the CDA
Induction Program should be locationwise (to optimise on cost) but if forum from a single
location is not created than it can be planned regionwise.
2 day program for the lite and above level CDAs to be planned once in six months. Number
of participants per program should be between 25 - 30. Ideally the CDA Induction Program
should be regionwise but if forum from a region is not created than it can be planned
zonewise.
As the fact goes that our TMs are our Heroes, so specially designed 3 days residential induction
program for all our new joining TMs has been planned.Number of TM per program should be
between 20 - 25 and the program can be conducted zonewise.
CDA Manager is our most looked upon profile, so specially designed 3 days residential
induction program for all our new joining CDA Managers has been planned.Number of CDA
Manager per program should be between 25 - 30 and the program can be conducted zonewise.
Outbound and advanced training program for TMs and CDA Managers are also on
completion which I shall forward you once we are done.
Please note for conducting any of the above training program it is also important to follow a
simple process so that the program can be planned in a systematic and effective manner and also
the effectiveness of the program can be later on evaluated.
1. TM or CDA Manager to raise a request for training the advisors/CDAs through a mail marked
to the concerned Training Manager with a CC to RM and ZM alongwith the list of candidates to
be trained.
2. On receiving the request Training Manager to co-ordinate with the concerned TM, RM and
ZM and plan for the venue and training either through self or through the Master Trainer.
3. Once planned, Training Manager to seek an approval for the same from me(Arun
4. Entire costing, venue details and dates proposed will have to sent for seeking approval,
which I shall after looking at the feasibility be further communicating to HOD - Sanjay
Sir for his approval. As soon as I receive an approval from him, I shall confirm back.
5. After getting the approval from both, Training Managers to communicate the same to
the concerned TM and Master Trainer(if applicable) and co-ordinate for a smooth
execution.
6. Post training, Training Manager to provide the completed feedback forms to me and
summary of the same to concerned TM, RM, ZM and me, with the attendance sheet of all
the candidates who attended the program.
RESEARCH METHODOLOGY
“Recruitment Process in Reliance Life Insurance Company”. The study is showing recruitment
process of any candidate in insurance company. This research is done at Lucknow. This study
also shows why people join insurance sector.
In May 2010. I have been assigned a project on recruiting process in insurance company with
special reference to Reliance Life Insurance as a part of our course curriculum. The duration of
research is 60 days.
3. Objective of Study
4. Types of Research
I used a descriptive type of research. It is one which includes surveys and fact finding, enquiries
of different kinds. The major purpose of such research is description of the state of affairs, as it
exists at present. Methodology or process involving in the research followed during the course of
summer training is as follows –
To ensure complete representation the researcher identified target responded through a stratified
random sampling process stratified the population into number of strata and sampling respondent
is selected from each stratum. The selection of respondent from each stratum was based on
simple random sampling
2. Businessmen
a) Retail shops
b) Wholesaler
c) Family business
3.Students
a) Management students
b) Law students
4. Other Professions
a) Engineers
b) Doctors
c) Bankers
Sampling is a process of obtaining a number of individuals taken a base for the entire population
since entire population cannot be asked about the necessary objective upon which a
questionnaire is put forth needed for the responses to be derived for the purpose of generation of
facts and customer view point regarding their perception of particular product or services.
i. Random sampling- Random sampling is a process of selecting the sample size randomly
and no choice or preference to be made about the selection of respondents for the market
survey and questionnaire to be put forth against him. Here, Random sampling being
adopted by me.
ii. Systematic sampling- It is a sampling where the limited number of selected respondents
is figured out based on some criteria so that only those respondents can be asked for the
purpose of filing Questionnaire
50
6. Scope of Study
To the student-
This study provides the student a practical insight of various activities and functions of the
company.
The will also be able to develop in depth knowledge of Human Research sector.
The study is also required for the partial fulfillment of the requirement for the degree of
M.B.A. as per the curriculum.
To the company
The study would help SBI to know the Employee`s attitude towards the company.
.
7. Limitation of Study
The research area was restricted only within Lucknow. This may not reflect the exact
position of the total market.
Sample size was also so less, limitation of time means and resource forced for small size.
Questionnaire includes 16 questions, which affects the mentality of respondents that is time
consuming.
51
10%
L.I.C
3% Reliance life
Icici prudential
sbi life
Hdfc
78%
Benefits of insurance
25%
20%
52
80
70
60
50
life policy
40
non life policy
Both
30
20
10
0
no.of respondents
90
80
70
60
50 A saving tool
A tax saving device
40 A tool to protect your
family
30
20
10
0
No. Of respondent
53
RESPONDENT'S QUALIFICATION
Age qualification
20% 18-25
39% 25-35
35-45
Above 45
35%
5. Causes of dissatisfaction
23%
34% low employment
all of the above
huge capital
10% investment
low status
low income
17% 16%
54
70
60
50
40
30
20
10
0
YES NO
90
80
70
60
50
40
30
20
10
0
YES NO
RESPONSE
No of respondent responses-
55
INSURANCE
80
70
60
50
40
30
20
10
0
YES NO
No. Of respondents-
56
100
90
80
70
60
50
40
30
20
10
0
YES NO
NO. OF RESPONDENTS-
57
The data collected through market survey and published sources are then processed to obtained
necessary inferences and findings for the purpose of achieving the objective as well as to derive
necessary conclusion. A considerable skill and knowledge is involved in analyzing the data
for the purpose of interpreting thereof.
B. .Interpreting of data-
It is the significant step where the data collected and analyzed is interpreted in the forms of
graphs and figures is depicted in the report called project report.
C. Summarizing of data-
Thereby necessary summary is prepared which is essential in the project report of the
summer training being done under an organization.
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that
percent of respondents.
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest
benefit of an insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and
future investments respectively.
INTERPRETATION
75% of the respondents have Life Insurance Policy while 15% have both. The % is
calculated out of 280 positive response)
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INTERPRETATION
80% of the respondents have perception of Insurance being a saving tool.
And 15% of the respondents have perception of Insurance being a tax saving
device.
Postgraduate 35
Graduate 59
Senior secondary 11
When further enquired about the qualification of respondents, it was found that 57% of the
respondents were graduates, 33% were post graduates and remaining 10% were of higher
secondary out of total 105 respondents
Further, the age qualification for agency recruitment, it was found that 39% respondents
were belonging to 18 – 25 age group, 35% were belonging to 25 – 35 age group where as
20% to 35 - 45 age group and remaining 6% to above 45 age group.
60
Respondents had different views about the dissatisfaction from t present status of working or
occupation. Dissatisfaction has been depicted in a table below and graphically above-
Low employment 24
Low earning 36
Huge capital investment 17
Low status 18
All of the above 10
Yes 59
No 46
career in life insurance agency where they can fulfill any and every desire of their life, 59
respondents agreed while 46 respondents said No and will see later sometime in future. It
has been depicted that life insurance sector should be promoted at the wide extent as it
contribute to the economy as a useful source beneficial for both nation as well as its
citizens.
When asked about whether they would like to know about a glorified
Yes 86
No 19
Indeed Life insurance is a noble business as it provides a needful financial support in the
situation of fatal calamity where the family is deprived by the fact to live in future and sustains
their living. When surveyed about life insurance as a noble service. 86 respondents agreed and
believe that insurance is a bettering service to human life and society as a whole where as 19
respondents show disagreement
.
61
Yes 18
No 41
From the 59 respondents who agreed to know about the life insurance as
a career, 18 of them agreed to join HDFC Standard life insurance for agency and
come to the company fore more information whereas 41 still took time to think
and postponed to some future date. People are highly dissatisfied from the
earning, status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this agency for
life insurance would prove a boon.
Yes 92
No 13
From all 105 respondents, 92 agreed that life insurance sector is a growing concern and will
grow at a rapid pace in future where as 13 took as a mere stagnant industry. Financial services
are growing at a tremendous pace as people are urging to make their investment in lucrative
opportunities and therefore life insurance sector is playing a vital role in educating the people to
make their investment which could secure their future, needs and living despite some
fatal calamity that might or might not occur.
Yes 74
No 31
Among 74 respondents from 105 respondents favored the privatization of the life
insurance and perceive that the people of India will know be more aware and
knowledgeable with respect to life insurance than that in the past 50 years with the
working of LIC.
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CONCLUSION
Summer training is a best example for a trainee to learn about the Company working,
corporate culture under which is operating the functions. Reliance life insurance company
under which I gained a significant knowledge with respect to life insurance, its importance and
applicability as well as undertook the task to recruit capable life insurance advisors which is
conducive for the company to grow with more prosperity. What I taught in the management
institute utilized them fruitfully leading to the best advantage to the company and to the best
experience for mine. In all Public Service jurisdictions, new approaches to recruitment are being
used. In many territories, the strategies are man provision of government services to the public is
timely and effective, that the goods are of consistent high quality. Life insurance is a noble
service which is very important for every citizen to learn and realize its importance because this
is the only source which can remain the status where one is with the family bread earner and ever
when he is not. With the growing financial sector I would like to opt this industry for my future
career advancement and as an opportunity to service this industry and that the organizations
achieve the objectives for which they have been established.
63
Recommendations-
Following are suggestions made for the benefits and augmentation of the sound working of the
company RELIANCE LIFE INSURANCE.
Suggestions-
4. All the company should come out of a unit link product that should
aid every selection of the society.
APPENDIX
Questionnaire:
Q.1. What do you mean by life insurance?
a) Yes
b) No
a) Post graduate
b) Graduate
c) Senior secondary
Q.5. Would you like to know about a career in life insurance advisor ship where you
can fulfill every desire of your life?
a) Yes
b) No
66
a) Yes
b) No
Q.7. Would you like to become or opt for life insurance advisor under
esteemed and prospering organization SBI Life insurance?
a) Yes
b) No
Q.8. Do you agree that the life insurance business is a growing industry
and will grow and rapid pace in future?
a) Yes
b) No
a) Yes
b) No
SUGGESTION:
1. ………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
PERSONAL INFORMATION:
Name: - ………………………………………………………………
Location: - ……………………………………………………………
Occupation: - …………………………………………………………
67
BIBLIOGRAPHY
BOOKS:
MAGAZINES:
India Today
Business World
Business Economics
R EFERENCES:
Websites
www.google.com
www.rlic.com
www.encyclopedia.com