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PREFACE

“Success comes with knowledge & knowledge is comes with training.”

MBA is a stepping stone to the management carrier and to develop good


manager. It is necessary that the theoretical must be supplemented with
exposure to the real environment. Theoretical knowledge just provides the base
and it’s not sufficient to produce a good manager that’s why practical
knowledge is needed. Therefore the research product is an essential
requirement for the student of MBA. . This research project not only helps
the student to utilize his skills properly learn field realities but also provides
a chance to the organization to find out talent among the budding managers
in the very beginning. In accordance with the requirement of MBA course. I
have summer training project on the topic “Recruitment Process Of CDA
Managers and Master Trainer ”in Reliance Life Insurance Ltd. . The main
objective of the research project was to study the recruitment process of
financial consultants in any insurance company.
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EXECUTIVE SUMMARY

Project study report consists of brief description of company Reliance Life


Insurance, Lucknow. My topic was “Recruitment Process of CDA Managers
and Master Trainers ” along with significant findings & suggestions that give
idea how many the employees in the company are satisfied and not satisfied with
welfare facility of the company. Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the
organization. In the other words recruitment is the activity that links employers and
job seekers. Recruitment of candidates is the function preceding the selection,
which helps create a pool of prospective employees for the organization so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop
a pool of qualified applicants for the future human resources needs even though
specific vacancies do not exist. Usually, the recruitment process starts when a
manger initiates an employee requisition for a specific vacancy or an anticipated
vacancy.
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S.NO CONTENTS PAGE NO.


1) Introduction about the 6-20
industry
1.1 Introduction 6
1.2 Insurance Industry 6-19
1.3 Life Insurance 9-16
1.4 Life Insurance in India 17-21
2) Introduction of a 22-23
Company
2.1 Company Profile 23-25
2.2 Company objective 25-26
3) Recuitment Process 27-48
3.1 Recruitment 27-33
introductiom
3.2 Recruitment process of 34-41
CDA Managers
3.3 Recruitment process of 42-47
master trainers.
4) Research Methodology 48-50
4.1Title of the study.
4.2 Duration of the project
4.3 Objective of study
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4.4 Type of research.


4.5 Sample Size and method
of selecting sample
4.6 Scope of study
5) Market survey & report 51-56
6) Data Analysis & 57-61
Interpretation
7) Conclusion 62
8) Recommendation & 63-64
Suggestions
9) Appendix 65-66
10) Bibliography 67
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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.

DIFFERENCE BEETWEN INSURANCE


AND ASSURANCE

Assurance is older in history and it was used to describe all types of


insurances. From 1826, the term assurance came to be used only for the risks
covered by life insurance and the term insurance was exclusively used to
denote the risks covered by marine, fire , etc. The word assurance indicated certainty. In
the word assurance indicated certainty. In life insurance , there is an
assurance from the insurance company to make payment under the policy
either on the maturity or at earlier death. On the other hand the word
insurance was used to denote indemnity type of insurances where the
insurance company was liable to pay only in case of the loss damage the
property. The insured event was bound to happen sooner or later under assurance but
the event insured against may or may not happen under insurance. Assurance is older in
history and it was used to describe all types of
insurances. From 1826 , the term assurance came to be used only for the risks
covered by life insurance and the term insurance was exclusively used to denote the risks
covered by marine , fire , etc.

The word assurance indicated certainty. In life insurance , there is an


assurance from the insurance company to make payment under the policy
either on the maturity or at earlier death. On the other hand the word
insurance was used to denote indemnity type of insurances where the
insurance company was liable to pay only in case of the loss damage the
property.

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

An insurance contract is based on some basic principles of insurance.

(1) Principle of “Uberrima Fides” or Principle of utmost good


faith

It means “maximum truth”. Both the parties should disclose all material information
regarding the subject matter of insurance.

(2) Principle of indemnity


This means that if the insured suffers a loss against which the policy has been made, he
shall be fully indemnified only to the extent of loss. In other words, the insured is not
entitled to make a profit on his loss been made, he shall be fully indemnified only to
the extent of loss . In other words, the insured is not entitled to make a profit on his
loss.
.

(3) Principle of subrogation

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.

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of
Compensation.

(5) Principle of insurable interest

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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MEANING OF LIFE INSURANCE

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.

Another important person involved in a life insurance policy is the


beneficiary. The beneficiary is the person or persons who will receive the
policy proceeds upon the death of the insured.

Life insurance may be divided into two basic classes – term and permanent.

• Term life insurance provides for life insurance coverage for a


specified term of years for a specified premium. The policy does not
accumulate cash value.

• Permanent life insurance is life insurance that remains in force until


the policy matures, unless the owner fails to pay the premium when
due.

• 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.

• Universal life insurance (UL) is a relatively new insurance product


intended to provide permanent insurance coverage with greater
flexibility in premium payment and the potential for a higher rate of return.
A internal universal life policy includes a cash account.

Premiums increase the cash account.


 If you want insurance protection only, and not a savings and investment
product, buy a term life insurance policy
 If you want to buy a whole life, universal life, or other cash value policy,
plan to hold it for at least 15 years.
 Canceling these policies after only a few years can more than double your
life insurance costs. Check the National Association of Insurance
Commissioners website (www.naic.org/cis) or your local library for
information on the financial soundness of insurance companies.
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KEY FEATURES OF LIFE INSURANCE

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: -

If your intention is that your policy monies should go only to a particular


person, you need to assign the policy in favor of that person.

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.

4) CashValue: The cash value of a permanent life insurance policy is accumulated


throughout the life of the policy. It equals the amount a policy owner would
receive, after any applicable surrender charges, if the policy were
surrendered before the insured's death.

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.

8) Conversion from Term to Permanent: -

When in need of temporary protection, individuals often purchase term life


insurance. If one owns a term policy, sometimes a provision is available that
will allow her to convert her policy to a permanent one without providing
additional proof of insurability.

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life


insurance policy at an additional cost. It guarantees that coverage will stay in
force and continue to grow.

.
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BENEFITS OF LIFE INSURANCE

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: -

An individual can easily access loans from different financial institutions by


pledging his insurance policies.

4) Retirement Planning: -

What had provided protection against the financial consequences of


premature death may now be used to help them enjoy their retirement years.
Moreover the cash value can be used as an additional income in the old age.

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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LIFE INSURANCE PRODUCTS

Life insurance products are usually referred to as plans of insurance.

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.

4. A children’s deferred insurance policy is taken on the life of one’s child.

5. A term insurance plan can be for a long period.

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.

GROUP INSURANCE is a plan of insurance, which provides cover to a large number of


individuals under a single policy.

. 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

18. The basis of the cover in a group policy

a) amount of annual income,


B) Level in the hierarchy
C) Age of the person

19. The premium in the group policy can be paid by:


a)The insured persons only
b)The person who has the master policy only
c)Both the insured persons and policyholder jointly.

20. Group insurance differs from salary savings schemes in the following respects:

d) The person who pays the premium

e) Responsibility to pay the premium


f) Decision to take the policy
g) Number of persons insured under a policy
h) Responsibility of employer
i) Issue of premium receipts
j) Ownership of the policy
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k) Mode of payment of premium


l) Parties to the contract.

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

23. Employers have different options to fund their pension liabilities.

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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TIME LINE IN INSURANCE HISTORY


(MAJOR LANDMARKS)

 1818 British introduced the life insurance to India with the establishment of the Oriental
Life Insurance Company in Calcutta

 1850 Non life insurance started with Triton Insurance Company.


 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer.
 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance
business.
 1938 The Insurance Act was enacted.

 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.

 1994 Malhotra committee recommended reentry of private


players.

 1997 IRDA (Insurance Regulatory and Development

 March 2000 IRDA started giving license to private insurers. ICICI Prudential, HDFC
were first private players to sell insurance Policies

 2001 Royal Sundaram was the first non-life private player to


sell an insurance policy.

 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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HISTORY OF LIFE INSURANCE

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

Illegal almost everywhere else in Europe, life insurance in England was


vigorously promoted in the three decades following the Glorious Revolution
of 1688. The type of insurance we see today owes it's roots to 17th century
England. Lloyd's of London, or as they were known then, Lloyd's Coffee
House, was the location where merchants, ship owners and underwriters met
20

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.

􀂾 Insurance moves to America

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

Compensation Act, which made it mandatory for a company to insure its


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 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
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
21

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.

ROLE OF LIFE INSURANCE IN THE


GROWTH OF THE ECONOMY

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.
22

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
23

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

petrochemicals with additional interests in telecommunications, informationtechnology, energy,


power, retail, textiles, infrastructure services, capital markets, & logistics. He is credited with
having pioneered a number of path-breaking financial innovations in the Indian capital markets.
He spearheaded the country's first forays into the overseas capital markets with international
public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he
directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year
Yankee bond issue for the company in January 1997.
24

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.

􀂷 Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer

􀂷 Under his leadership, Reliance pioneered India's first forays into overseas capital markets

with international public offerings of global depository receipts, convertibles and bond

􀂷 Wharton Board of Overseers, The Wharton School, USA

􀂷 Central Advisory Committee, Central Electricity Regulatory Commission

􀂷 Board of Governors, Indian Institute of Management, Ahmedabad

􀂷 Board of Governors Indian Institute of Technology, Kanpur

􀂷 In June 2004, he was elected for a six-year term as an independent member of the Rajya

Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on

March 25, 2006.

􀂷 Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management

Association, October 2002


25

􀂷 Awarded the First Wharton Indian Alumni Award by the Wharton India Economic

Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a

global leader in many of its business areas, December 2001

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 -:

Started operations in April 2006. Finished 3 successful years

 No. of CDAs recruited 25000 +


 CDAs operating from 1500 locations
 No. of Advisors 55000+ . No of CDA offices inaugurated 57
 Business generation 2006-07: 93crs; 2007-08: 425crs; 2008-09: 520 crs
 Business contribution to the company 2008-09 : 16%
 Market leader in this Channel ..
 YOY growth 28%
 Highest Premium Single Ticket (5cr) from CDA for RLIC.
 Channel contributed 50% TOT & COT’s; 25% MDRT’s last FY
 Gateway – Level I Basic Training
26

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 .

2) Interview with Regional Head: -


After clearing the project 40 interview, the applicant
should be interviewed by the Regional Head, who will check his/her
performance.

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 .
27

TRAINING AND DEVELOPMENT:-

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

They are providing 100 hours training to their advisors, who


are newly recruited. They are also providing the product training to their
advisors and Sales Managers, who are newly recruited. The 100 hours
training is to be conducted at Net Bios Computer Academy whereas the
product training is to be conducted at NIS SPARTA. The NIS SPARTA
Institute has more than 150 batches and is trained over 3000 agents for most
of the private insurance companies. This institute is approved by IDRA to
train agents/advisors.

CAREER DEVELOPMENT

They are also providing career development plans, which will identify
potential and create avenues for growth.

COMMUNICATION

Communication is the process through which an individual can exchange


their beliefs, things, information, and experience to others. In simple words,
it is the process of exchanging the information from one person to another.
They are providing an open environment, which enabling free interaction
between all levels.

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.
28

SERVICES

They are offering following certain services to their employees.


1) They are providing knowledge sharing and certification practices.
2) They are planned team building and fun events.
3) They are creating Reliance Life Insurance family, which includes
employees, associates and their families.

4) Reliance Life Insurance in a team building mode and is looking for


performance driven, achievement oriented and challenge loving
performance

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

They are providing following areas or departments:


1) Retail Sales
2) Under Writing
3) Actuarial
4) Insurance Operations
5) Customer Service
6) Quality and Processes
7) Human Resources
8) CEO
9) CMO
10)Channel Head
11) Regional Head
12)Branch Head
13) CDA Managers
14)Advisors/Agents
15)Customers
29

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

1. Transfer: The employees are transferred from one department to


another according to their efficiency and experience.
2. Promotions: The employees are promoted from one department to
another with more benefits and greater responsibility based on
efficiency and experience.
3. Others are Upgrading and Demotion of present employees
according to their performance.
4. Retired and Retrenched employees may also be recruited once again in case of shortage of
qualified personnel or increase in load of work. Recruitment such people save time and costs of
30

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.

2. Educational Institutes: Various management institutes, engineering colleges, medical Colleges


etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They
provide facilities for campus interviews and placements. This source is known as Campus
Recruitment

3. Placement Agencies: Several private consultancy firms perform recruitment functions on


behalf of client companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO (Recruitment Process
Outsourcing)

4. Employment Exchange: Government establishes public employment exchanges throughout the


country. These exchanges provide job information to job seekers and help employers in
identifying suitable candidates.

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.

6. Unsolicited Applicants: Many job seekers visit the office of wellknown


companies on their own. Such callers are considered nuisance to the daily work routine of the
enterprise. But can help in creating the talent pool or the database of the probable candidates
for the organization.
31

7. Employee Referrals / Recommendations: Many organizations have


structured system where the current employees of the organization
can refer their friends and relatives for some position in their organization. Also, the office
bearers of trade unions are often aware of the suitability of candidates. Management can inquire
these leaders for suitable jobs. In some organizations these are formal agreements to give priority
in recruitment to the candidates recommended by the trade union.

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
.

Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by


a mix of various internal and external forces. The internal forces or factors are
the factors that can be controlled by the organization. And the external factors

are those factors which cannot be controlled by the organization. The internal
and external forces affecting recruitment function of an organization are:

Factors Affecting Recruitment


32

Internal Factors

The internal factors i.e. the factors which can be controlled by the
organization are:

1. Recruitment Policy: The recruitment policy of an organization specifies the


objectives of recruitment and provides a framework for implementation of
recruitment program. It may involve organizational system to be
developed for implementing recruitment programs and procedures by
filling up vacancies with best qualified people.
Factors affecting recruitment policy
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.

Recruitment costs and financial implications.

2. Human Resource Planning: Effective human resource planning helps in


determining the gaps present in the existing manpower of the
organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.

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.

4. Cost: Recruitment incur cost to the employer, therefore, organizations try


to employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.

5. Growth and Expansion: Organization will employ or think of employing


more personnel if it is expanding 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,
33

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.

3. Image / Goodwill: Image of the employer can work as a potential


constraint for recruitment. An organization with positive image and
goodwill as an employer finds it easier to attract and retain employees
than an organization with negative image. Image of a company is based
on what organization does and affected by industry. For example finance
was taken up by fresher MBA’s when many finance companies were
coming up.

4. Political-Social- Legal Environment: Various government regulations


prohibiting discrimination in hiring and employment have direct impact on
recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped etc. Also, trade unions play important role
in recruitment. This restricts management freedom to select those
individuals who it believes would be the best performers. If the candidate
can’t meet criteria stipulated by the union but union regulations can restrict
recruitment sources.

5. Unemployment Rate: One of the factors that influence the availability of


applicants is the growth of the economy (whether economy is growing or
not and its rate). When the company is not creating new jobs, there is
often oversupply of qualified labor which in turn leads to unemployment.

6. Competitors: The recruitment policies of the competitors also affect the


recruitment function of the organizations. To face the competition, many a
times the organizations have to change their recruitment policies
according to the policies being followed by the competitors.
34

RECRUITMENT OF CDA MANAGERS

SCREENING BY ZONAL MANAGER

HUMAN RESOURCE PRE-REQUISITES

HR MANPOWER REQUISITION

EMPLOYEE APPLICATION

OFFER & APPOINTMENT PROCESS

SELECTION PROCESS :

1. Screening by Zonal manager –

Interview scheduling - Interview is taken by zonal manager.

There is an Interview assessment sheet .whatever the Interviewer observe about


interviewee Write in the IAS.

The IAS Provides Following Entitlements:

􀂷 Name of the candidates


􀂷 Position Considered for
􀂷 Location
􀂷 Source/Reference
􀂷 Date
35

􀂷 Behavioral Strengths
􀂷 Area Of Improvement
􀂷 Recommendation

Criteria for selection-. The cda managers should possess the


following things-

1. They should be an M.B.A.


2. The age of them should be between 25 to 35 years.
3. They should have good communication skill.
4. They should have at least sales experience of 3 years.
5. They should have the capability to handle the team.
6. Their job profile includes recruitment, training, guiding, motivating and in turn getting
business out of a team.

The certain important points which are important during interview-:

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.

1. Human resource pre-requisites-

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

References are checked for following reasons-:

 To check whether or not the applicant was truthful about his or her employment history

 To know weaknesses, strengths of the applicant

3)- Human resource manpower requisition

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

5) Offer & Joining process-

a) OFFER CLOSING

1. Closing is done by a HR manager .In this HR Person mainly focus on salary.

2. negotiation.

3. Offer closing is based on the persons Qualification, Total no. of work


experience, Last CTC earned Last company brand. When the salary
negotiated is accepted by the candidate then offer mail is released

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.

5. The offer mail entitles the following details:


6. Date of joining
7. Day of joining
8. Designation Of The candidates
9. 􀂷Package per annum
10. 􀂷Venue
11. Along with this following document is asked to bring at
the time of joining:
12. Resignation acceptance which should be signed and stamped by immediate
boss
13. Last Company appointment letter
14. Last drawn Salary slip (if the candidates was an agent then he is required to
15. bring IRDA license ,commission statement ,Bank Statement , or form 16A
16. Pan Card If applied then Acknowledgement for the same.
17. Identity prove: Driving license/ ration card/voter ID card/Passport
10 Photographs with blue background.
18. Qualification certificates and mark sheet
19. NOC of the previous company.
20. Person should be aware of his blood group.
38

c) CDA MANAGER 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.

BASE DATA FORM

It is an on line form present on the official website of Reliance Life Insurance


(www.rclhrssg.com). This form contain all the personal details of the employee which is
recorded in the employee data base .After completion of base data form a BD number
is assign to each employee. This BD number is being written on the Joining kit of
employee.

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.

BASE DATA FORM

Following information is to be filled in this form:


􀂷 Name
􀂷 Gender
􀂷 Fathers name
􀂷 DOB, Place of Birth
􀂷 Blood Group, Height, Weight
􀂷 Identification Mark
􀂷 Present & Permanent Address(Period of staying)
􀂷 Contact Number
􀂷 PAN
􀂷 E mail ID
􀂷 Place of posting
 Submitted to Regional HR & in UP- Uttaranchal Region

CONTENT JOINING KIT BOOKLET


􀂷 Joining report
􀂷 Personal Information Form
􀂷 Information Released form
􀂷 Data Reference Check Form
􀂷 Salary Account Declaration
39

􀂷 Medical Insurance data


􀂷 I Card Form
􀂷 Requisition Form For E Mail
􀂷 Business Card Requisition
􀂷 Hardware Requisition Form
􀂷 Data Card Requisition Form
􀂷 PF/EPS Declaration/ Nomination Form
 PF Transfer Form
􀂷 Gratuity Nomination Form
􀂷 Superannuation Nomination Form
􀂷 Term Insurance Nomination Form
􀂷 CTC Allocation Plan
􀂷 InvestmentDeclaration Form
􀂷 Data Ownership Undertaking

IT security Policy Declaration


􀂷 Code Of Ethics Undertaking
􀂷 Specimen Signature Form

JOINING KIT EVALUATION

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.

PROCESS OF KIT DISPATCHING

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)

Preparing of Partial kit


􀂷 Personal Information
􀂷 Interview Assessment sheet
􀂷 Curricular Vitae of the candidate
􀂷 Resignation of previous company
􀂷 Appointment Letter of RLIC
􀂷 Background verification form
􀂷 Salary Account Declaration
40

All these are further processed for Xerox and then


original of Following:

􀂷 Requisition Form For E Mail


􀂷 Business Card Requisition
􀂷 Hardware Requisition Form
Are kept regional office for record

CDA MANAGER JOINING

 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

Designation Salary at joining (per Salary to be immediately


annum) increased
Prob CDA Manager 125,000 150,000
Jr CDA Manager 175,000 200,000
CDA Manager 225,000 250,000

 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.

Performance Review Process (PIP)

 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

CDA Manager – Incentives Unlimited

 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.

Incentives Unlimited- CDA Recruitment Bonus

 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

RECRUITMENT OF MASTER TRAINER

SCREENING BY TRAINING MANAGER

HUMAN RESOURCE REQUISITES

OFFER & CONTRACT PROCESS

SELECTION PROCESS

a) Screening by training manager-

Interview of a candidate is taken by training manager. The important points during


assessment-:

1. Technical strengths (Product Training/Process Training)

2. Behavioral strengths (Language/Communication Skills


3. Areas of improvement/ probe
4. Reasons of persons fitting in to the position.

Criteria for selection

1. They should be an M.B.A.


2. The age of them should be between 25 to 35 years.
3. They should have good communication skil
4.. They should have the capability to handle the team.
5. Their job profile includes recruitment, training, guiding, motivating and in turn getting
business out of a team
.

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

They are providing 100 hours training to their advisors, who


are newly recruited. They are also providing the product training to their
advisors and Sales Managers, who are newly recruited.

Objectives: of master trainer


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

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

 He would be reporting to the respective SRM/ZM.


 There would be 14 training managers in all with average CTC of 4 lacs per annum.
 He would get Rs 30 for each candidate attending exam
 He would get Rs 60 on licensing of one candidate
 For every Early Bird high fliers he gets Rs 1000/-.
 For every first month MDRT he gets Rs 2000/-.
 He earns Rs 50 for making every club member and all the prize amount would be
accumulated and paid at the end of the Financial year.
 Each Training Manager would have 5 to 6 Master Trainers.
 Pls Note – An active CDA is one who is upgraded from being a Rookie to a Silver CDA.

 He would be responsible for the developmental process of the entire area
 His KPI would be linked to the Advisor licensing, CDA & Advisor Productivity, and
company club membership.

Training the Advisors

3 different training programs have been decided for advisors

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.

2. Product Training - 1 day - 3 to 4 hours (1 to 2 products per day) | Faculty -


Training Manager or Master Trainer

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

3. Sales Training : - 1 day - 3 to 4 hours (1 topic) | Faculty - Training Manager or


Master Trainer

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.

Training the CDAs

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. CDA Training : 1 day - 3 to 4 hours (1 topic) | Faculty - Training Manager or


Master Trainer
It is also important that a CDAs is aware about the products or is trained on process of
recruitment or any other subject which we may feel important, so small activity based
training or product knowledge sessions can be planned for CDAs of same location.

3. CDA Induction Program - 2 days - Residential | Faculty - Training Manager

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.

4. CDA Advance Training program - 2 days - Residential | Faculty - Expert


Training Manager
46

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.

Training the Territory Managers

TM Induction Program - 3 days - Residential | Faculty - Expert Training Manager

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.

Training the CDA Managers

CDA Manager Induction Program - 3 days - Residential | Faculty - Training Manager or


Expert Training Manager

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.

For Advisor or CDA Training :


47

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

Agrawal) and ZM for conducting the Training Program

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.

b) Human resource pre-requisites


Checking of all documents required for master trainer.The documents which are required
are
 C.V
 Two photograph.
 High school and intermediate school marksheet
 Pan card
 Driving license.
 Graduation marksheet.
 Postgraduation marksheet.

C)OFFER AND CONTRACT PROCESS

After obtaining information through the preceding steps, selection


decision is to be made. The other stages of selection process have been used to narrow the
number of candidates. The final decision is to be made from the pool
of individuals who pass the tests, interviews.
48

RESEARCH METHODOLOGY

1. Title of the Study

“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.

2. Duration of the Project

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

The objective of the recruitment process is to obtain the number and


quality of employees that can be selected in order to help the organization to
achieve its goals and objectives.

Following are other objectives of recruitment process-


1. Support the organization ability to acquire, retain and develop the best
talent and skills.
2. Increase the effectiveness of various recruiting techniques.

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 –

Collection of data: This is an important aspect in formulating the objective of


research process where the data is collected via two process: (i) Primary
Sources and (ii) Secondary sources
Primary sources- Where the data is collected primarily by
interviewing and personal observation and is original in nature and
accurate to the considerable extent.
ii. Secondary sources- Where the data is obtained from some
published and printed sources such as newspaper, magazines, and
49

websites and so on.


5 . Sample Size and Method of Selecting Sample

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

I have covered 100 employees.


1. Insurance employees
a) Unit Manager
b) Team Leader
c) Agents

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.

There are two type of sampling is

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

Every research is conducted to fulfill certain objectives and this objective


in turn fulfill some purpose and is of significance for one or more then one
party. This research is significant for:

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.
.

To know the latest trend of 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

MARKET SURVEY REPORT

1. Data gives preference of respondents of the insurance


companies

Respondents of insurance company


2%
7%

10%
L.I.C
3% Reliance life
Icici prudential
sbi life
Hdfc

78%

2. Data gives benefits of insurance perceived by respondents

Benefits of insurance

25%

Cover future uncertainity


Tax deduction
Future investment
55%

20%
52

3. Data provides number of insurance policy type respondents

80

70

60

50
life policy
40
non life policy
Both
30

20

10

0
no.of respondents

3. Data gives people perception about insurance

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

4. Qualification for life insurance

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

6. Career in life insurance

70

60

50

40

30

20

10

0
YES NO

Yes 59%, no- 46%


no. Of repondent responses-

7. Life insurance is noble service or not? :-

90
80
70
60
50
40
30
20
10
0
YES NO

RESPONSE

Yes -86%, No-19%

No of respondent responses-
55

8. Life insurance: public or private :-

AGREE WITH PRIVATISATION OF LIFE

INSURANCE

80
70
60
50
40
30
20
10
0
YES NO

Responses YES-74%, NO- 31%

No. Of respondents-
56

9. Growth of life insurance :-

IS LIFE INSURANCE INDUSTRY GROWING?

100
90
80
70
60
50
40
30
20
10
0
YES NO

YES – 92%, NO-13 % RESPONSES

NO. OF RESPONDENTS-
57

ANALYSIS AND INTERPRETATION

A. Analyzing of collected data-

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.

Market Survey Report

i. Data gives preference of respondents of the insurance companies

Company’s name No.of respondent Share (%)


L.i.c. 78 78
Reliance life insurance 3 3
Icici prudential 10 10
Sbi life 7 7
Hdfc 2 2
Total 100 100
58

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that
percent of respondents.

ii. Data gives benefits of insurance perceived by respondents

Benefits No.of respondents Share (%)


Cover Future Uncertainty 55 55
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100

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.

iii. Data provides number of insurance policy type respondents

Policy type No. Of respondents Share (%)


Life policy 75 75
Non life policy 15 15
Both 10 10

INTERPRETATION

 75% of the respondents have Life Insurance Policy while 15% have both. The % is
calculated out of 280 positive response)
59

iv. Data gives people perception about insurance

Response No. Of respondents Share (%)


A saving tool 80 80%
A tax saving device 15 15%
A tool to protect your 5 5%
family

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.

v. Qualification for life insurance

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

vi. Age qualification for life

18-25 age group 41


25-35 age group 37
35-45 age group 21
Above 45 age group 6

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

vii. Causes of dissatisfaction

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

viii. Career in life insurance?

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

ix. Life insurance is noble service or not?

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

x. Life insurance as a career?

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.

xi. Is Life insurance industry growing?

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.

xii. Agree with privatization of life insurance?

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.
62

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

RECOMMENDATION AND SUGGESTIONS

Recommendations-

Following are suggestions made for the benefits and augmentation of the sound working of the
company RELIANCE LIFE INSURANCE.

1. Need to train and develop life insurance agents with more


comprehensive knowledge and skills to counter every queries of
the customer.

2. It is suggested that company should not left any stone


unturned towards sound advertisement and promotional measures
on every section whether it is printed, media or air via radio.

3. It is also suggested that skilled management graduates need


to be places on sales and marketing of financial services that can
render their best ideas for the accomplishment of the company
goals and objectives to the best extent.

4. Also, care need to be taken that every customer’s grievance


should be met with delight whether before purchase or after sales.

5. There should be an expansion measure for more offices and


location of more centers for offices of the company is established
sop that company may grow its network.

6. Life insurance Products should be made flexible so as to suit


every section of society

Suggestions-

Following are suggestions made for the benefits and augmentation of


the sound working of the company –RELIANCE LIFE INSURANCE

1. Need to train and develop life insurance agents with more


comprehensive knowledge and skills to counter every queries of the
customer.

2. It is suggested that company should not left any stone unturned


64

towards sound advertisement and promotional measures on every section


whether it is printed, media or air via radio.

3. The advisors should be made aware and educated so that they


can extend their services not only in terms of collection of premium checks
from the customer but also to educate them about the insurance and the
latest nontraditional plans.

4. All the company should come out of a unit link product that should
aid every selection of the society.

5. It is also suggested that skilled management graduates need to be


places on sales and marketing of financial services who can render their best
ideas for the accomplishment of the company goals and objectives to the
best extent.

6. Also, care need to be taken that every customer’s grievance


should be met with delight whether before purchase or after sales.
7. There should be an expansion measure for more offices and
location of more centers for offices of the company be established sop that
company may grow its network.

8. Life insurance Products should be made flexible so as to suit every


section of society.
65

APPENDIX

Questionnaire:
Q.1. What do you mean by life insurance?

a) Protection of human asset value against uncertainty



b) A sum received after death 
c) Both 

Q.2. Do you think life insurance is essential for every one?

a) Yes 
b) No 

Q.3. What is your qualification?

a) Post graduate 
b) Graduate 
c) Senior secondary 

Q.4. Do you come under:

a) 18-25 age group 


b) 25 – 35 age group 
c) 35 – 45 age group 

d) Above 45 age group 

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

Q.6. Do you perceive that life insurance business is a noble service


oriented business?

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 

Q.9. Do you favor the privatization of life insurance by the Government


where a significant numberof companies now in the market for life
insurance to the customers with the alliance of multinationals?

a) Yes 
b) No 

SUGGESTION:

1. ………………………………………………

2. ……………………………………………………………
3. ……………………………………………………………

PERSONAL INFORMATION:

Name: - ………………………………………………………………

Location: - ……………………………………………………………

Occupation: - …………………………………………………………
67

BIBLIOGRAPHY

Following are sources which helped me during my summer training

BOOKS:

 KOTHARI C.R.: Research Methodology Management, 3rd Edition.

 KOTLER PHILIP: Marketing Management” 11th Revised edition, 2002.


 K. Aswattappa : Human Resource Management.
 Kotler Philip : Marketing Management, Prentice Hall of India, New Delhi.

MAGAZINES:

 India Today
 Business World
 Business Economics

R EFERENCES:

Websites

www.google.com
www.rlic.com
www.encyclopedia.com

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