26208097 recruitment process in insurance company

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A

SUMMER TRANING REPORTON

RECRUIPMENT OF ADVISORS

(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE

OFBACHELOR OF BUSINESS ADMINISTRATION

(SESSION 2013-14)

SUBMITTED TO: SUBMITED BY:

KURUKSHETRA UNIVERSITY SUMIT

KURUKSHETRA B.B.A. III YEAR

CLASS ROLL No. 7620

UNIVERSITY ROLL No.....

I.B.(P.G.) COLLEGE

AFFILIATED BY KURUKSHETRA UNIVERSISTY, KURUKSHETRA
http://www.google.co.in/url?sa=i&rct=j&q=sbi+life+insurance&source=images&cd=&cad=rja&docid=OJoojEoQf4IkhM&tbnid=FY0VwntvGtlg-M:&ved=0CAUQjRw&url=http%3A%2F%2Fihelpstudy.com%2Fsbi-life-insurance-recruitment-manger-nov2010mager-post-in-sbi-life-insurance-8178.html&ei=Cw8bUrrvA4bSrQeKoYGACA&psig=AFQjCNFj74FsuaeVumykeZEXUBoZLBJQfg&ust=1377591426167594


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DECLARATION

I SUMIT student of B.B.A. III year in I.B.(P.G.) College, Panipat

hereby declare that the project report entitled RECRUIPMENT OFADVISORS. submitted for the degree of B.B.A. III year is my originalwork and the project report has not formed the basis for the award of anydiploma, degree, associate ship, fellowship or similar other titles. It hasnot been submitted to any other university or institution for the award ofany degree or diploma.

PRINCIPAL SIGNATURE. SUMIT


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ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can

substitute which is possible while working in real situations. Application of

theoretical knowledge to practical situations is the bonanzas of this survey.

Without a proper combination of inspection and perspiration, its not easy to

achieve anything. There is always a sense of gratitude, which we express to others

for the help and the needy services they render during the different phases of our

lives. I too would like to do it as I really wish to express my gratitude toward all

those who have been helpful to me directly or indirectly during the development ofthis project.

I would like to thank my professorMISS.NISHA GUPTA who was always there

to help and guide me when I needed help. Her perceptive criticism kept me

working to make this project more full proof. I am thankful to her for his

encouraging and valuable support. Working under her was an extremely

knowledgeable and enriching experience for me. I am very thankful to her for all

the value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents

whose support helps me in all the way. Above all I shall thank my friends who

constantly encouraged and blessed me so as to enable me to do this work

successfully.

SUMIT


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EXECUTIVE SUMMARY

Project study report consists of brief description of company SBI LIFE INSURANCE

CO. LTD., SIKAR, the special focus on the human resources. My topic was Recruitment of

advisors. along with significant findings & suggestions that give idea how many the employees

in the company are satisfied andnot satisfied with welfare facilityof 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 procedure of SBI Life Insurance is very easy. A person with high educating

and well experience can be recruited after a personal interview and group discussion. After the

training program is completed the insurance agent has to appear for the pre-examination

conducted by IRDA. As he clear the exam he provides a license, which is the proof of a legalized

insurance agent, which permits him to deal in his insurance business.

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.
http://recruitment.naukrihub.com/recruitment-process.htmlhttp://recruitment.naukrihub.com/recruitment-process.html


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CHAPTER NO. CONTENTS PAGE NO.

Chapter No.-1 Introduction to the Industry 1-13

1.1 Introduction 21.2 Insurance industry 6

1.3 Life insurance 8

1.4 Life insurance in India 11

Chapter No.-2 Introduction to the Organization 14-34

2.1 SBI life insurance 15

2.2 Products 17

2.3 Tax benefits 21

2.4 Project profile 23

Chapter No.-3 Research Methodology 35-39

3.1 Title of the study 36

3.2 Duration of the project 363.3 Objective of study 36

3.4 Type of research 36

3.5 Sample size and method of selecting

sample

37

3.6 Scope of study 39

3.7 Limitation of study 39

Chapter No.-4 Facts and Findings 40-46

4.1 Market survey 41

4.2 Role of the development agency 46

Chapter No.-5 Analysis and Interpretation 47-535.1 Market survey report 48

5.2 Product policy queries 52

Chapter No.-6 SWOT 54-56

6.1 Strengths 55

6.2 Weakness 56

6.3 Opportunities 56

6.4 Threats 56

Chapter No.-7 Conclusion 57-58

Chapter No.-8 Recommendation and Suggestions 59-61

Appendix 62-65

Bibliography 66-67


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Chapter 1

Introduction to the Industry

Introduction

Insurance Industry

Life Insurance

Life Insurance in India


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INTRODUCTION TO THE INDUSTRY

1.1 Introduction

The insurance sector was opened up in the year 1999 facilitating the entry of private

players into the industry. With an annual growth rate of 24.31 percent and the largest number of

life insurance policies in force, the potential of the Indian insurance industry is huge. The year

1999 saw a revolution in the Indian insurance sector, as major structural changes took place with

the ending of Government monopoly and the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership.


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According to the CSO, the insurance and banking services contribution to the countrys

GDP is 7.1 percent out of which the gross premium collection forms a significant part. Life

insurance penetration in India was less than 1 percent till 1990-91. During the 90s, it was

between 1 and 2 percent and from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent. In

2007-08 it was 14percent.

The impetus for increase is due to the active role played by IRDA in licensing private

players and taking positive steps in increasing the insurance awareness among the people.

Besides, the insurance companies in general and private insurance companies in particular, are

reaching out to untapped potential in rural areas with aggressive campaigns.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling

private insurance companies to sign up Indian customers faster than anyone expected. Life

insurance is viewed as a tax saving device. People are now turning to the private sector for

providing them with new products and greater variety for their choice. The improvement in FDI

flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI

and for encouraging infusion of new technologies and management practices. The Governments

proposal to increase the FDI cap in the insurance sector from the present 26 percent to 49 percent

has raised expectations among the international insurance companies.

1.1.1 Definition

Insurance is a contract in which sum of money is paid to the assured in consideration

of insurers incurring risk of paying a large sum upon a given contingency.

---Justice Tindall

Insurance is a contract by which one party for a compensation called in the premium

assumes particular risks of the other party and promises to pay to him or his nominee a certain

sum of money on a specified contingency.

--- E.W.Fitterson

Insurance may be described as social device whereby a large group of individuals,

through a system of equitable contribution, may reduce certain measurable risk of economic loss

common to all members of the group.

--- Encyclopedia Britannica


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The above definitions clearly shows that insurance is a cooperative device to spread the

loss caused by a particular risk over a member of persons who are exposed to it and who agree to

insure themselves against risk. Insurance does not eliminate risk but only reduces the financial

burden, which may be very heavy.

1.1.2 Evolution of Insurance

In the days of yore insurance was in its crude form and was cooperative and voluntary in

nature. When, where and how it originated is still a matter of research in one way or the other

was prevalent in olden days. We can trace its history from the evolution society from hunting

stage to the modern industrial age. A word YAGCHHEM occurs in the worlds most ancient

Hindu Scripture Rig Veda.

The word YAGCHHEM means insurance. It clearly indicated that about four thousand

years ago insurance was prevalent in its crude form. It was cooperative and voluntary in nature.

People formed different groups of organizations to share the loss among themselves incase of a

particular risk. Each member contributed some amount to a common fund to meet the unforeseen

losses. Sometimes they also contributed equally to compensate person as and when he suffered a

loss. Traces of insurance in the ancient world are also found in the form of marino trade loans or

carriers contracts which included an element of insurance.

Evidence is on records that arrangements embodying the idea of insurance were made in

Babylonia and India at quite an early period. References were made to the concept of insurancein Manus code Manu Smrity. It was akin to Yagakshemo of Rigveda in which the well

being and security of the community was aimed at. However, there is no evidence that insurance

in its present farm was practiced prior to twelfth century.

1.1.3 Nature of Insurance

The insurance has the following characteristics which are observed in cases of life,

marine, fire and general insurance.

1. Sharing of risks: Insurance is a cooperative device to share the financial losses which

might befall on an individual or his facility on the occurrence of specified event such as

sudden death of the bread winner, marine perils in marine insurance, fire in the fire

insurance and theft insurance etc. in the case of general insurance.


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2. Cooperative device: A large number of persons agree to share the loss arising sue to a

particular risk. Thus, insurance is a cooperative device.

3. Value of risk: The risk is evaluated before insuring to charge the amount of share called

premium.

4. Payment made at contingency: The payment is made at a certain contingency insured.

The Contingency may be death, fire, marine perils etc.

5. Amount of payment: The amount of payment depends upon policy insured.

1.1.4 Functions of Insurance

A) Primary Functions-

1) Insurance provides certainty: Insurance provides certainty of payments at the

uncertainty of losses. The element of uncertainty is reduced by better planning

and administration.

2) Insurance provides protection: The risk will occur or not, when will occur and

how much loss will be there. There are uncertainties of happening of time and

amount of losses. The main function of the insurance is to provide protection

against the losses.


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3) Risk sharing: Risk is uncertain and therefore, the loss arising from the risk is also

uncertain. All business concern faces the problem of the risk and if the concern is

big enough the handling of risk becomes a specialized function. Insurance, as a

device is the outcome of the existence of various risks in our day to day life. It

spreads the whole losses over a large number of persons who are exposed by a

particular risk.

B) Secondary Functions-

1) Prevention of loss: Prevention is always better than cure. Prevention is by far the

best solution to the problem of risk. It is more effective and cheapest method to

avoid the unfortunate consequence. But sometimes prevention is not always

possible and Effective.

2) Provides capital: It provides the capital to the society. For plan development of

country there is a great need for huge amount of capital. Now days, the insurance

companies are rendering positive help in the development of trade, commerce and

industry of the country.

3) Improves efficiency: Achievement of goals, it improves not only his efficiency of

the masses is also advanced. The insurance eliminates worries and miseries of

losses as death and destruction of property care free person can devote his

energies for better.4) Ensures the welfare of society: Insurance is a saga of service and security to

thee society. Security of the life and property given by insurance bring peace of

mind to the insured. The investment in LIC in welfare schemes like electricity,

housing, water supply, agro industry estates are able to solve many problems in

India.

5) Helps in economic progress: Insurance provides an initiative to work hard for the

betterment of the masses. Life insurance involves the element of saving

investment through small savings. And which has been growing in recent years at

an annual rate of about Rs. 400 crs. Life insurance is not a mere business

organization; it has nobler welfare responsibilities in the development of the

economy.


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1.2 Insurance Industry

1.2.1 Introduction

With an annual growth rate of 15-20% and the largest number of life insurance policies in

force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance

market (2004-05) is estimated at Rs.450 billion (US$10 billion). According to government

sources, the insurance and banking services contribution to the country's gross domestic product

(GDP) is 7% out of which the gross premium collection forms a significant part.


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The funds available with the state-owned Life Insurance Corporation (LIC) for

investments are 8% of GDP. Till date, only 20% of the total insurable population of India is

covered under various life insurance schemes, the penetration rates of health and other non-life

insurances in India is also well below the international level. These facts indicate the of immense

growth potential of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structural

changes took place with the ending of government monopoly and the passage of the Insurance

Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private

players and allowing foreign players to enter the market with some limits on direct foreign

ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in an insurance

company, a proposal to increase this limit to 49% is pending with the government. Since opening

up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the

Indian market and 21 private companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling

private insurance companies to sign up Indian customers faster than anyone expected. Indians,

who had always seen life insurance as a tax saving device, are now suddenly turning to the

private sector and snapping up the new innovative products on offer.

The life insurance industry in India grew by an impressive 36%, with premium income

from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiffcompetition from private insurers. RNCOSs report, Indian Insurance Industry: New Avenues

for Growth 2012, finds that the market share of the state behemoth, LIC, has clocked 21.87%

growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this

was still not enough to arrest the fall in its market share, as private players grew by 129% to mop

up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the last fiscal year (2004-2005)

compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private

insurers increased their market share from about 13% to about 22% in a year's time. The figures

for the first two months of the fiscal year 2005-06 also speak of the growing share of the private

insurers. The share of LIC for this period has further come down to 75 percent, while the private

players have grabbed over 24 percent.


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There are presently 12 general insurance companies with four public sector companies

and eight private insurers. According to estimates, private insurance companies collectively have

a 10% share of the non-life insurance market.

Though the focus of this market research report is on the potential growth on the Indian

Insurance Sector, it also talks about the market size, market segmentation, and key developments

in the market after 1999. The report gives an instant overview of the Indian non-life insurance

market, and covers fire, marine, and other non-life insurance. The data is supplied in both

graphical and tabular format for ease of interpretation and analysis. This report also provides

company profiles of the major private insurance companies.

1.2.2 Report Highlights

Gains of liberalization in Indian insurance sector

Indian insurance market segmentation by products

Size of the market and market share of life insurers, in INR (crore)

Market share of non-life insurers

Forecast of life insurance growth up to 2012

Forecast of non-life insurance growth up to 2012

Market revenue of both public and private insurers

Policies and measures taken by IRDA to develop the insurance market

Research and development activities

Regulation of insurance and reinsurance companies

Major challenges that Indian insurance sector is facing

Profiles of the major players

1.3 Life Insurance

1.3.1 Definition

The life insurance contract embodies an agreement in which broadly stated, the insurer

undertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary.

--- J.H.MAGEE


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Life insurance contract may be defined whereby the insurer, in consideration of

premium paid either installment, undertakes to pay an annuity on the death of the insured of a

certain number of years. --- R.S.SHARMA

A contract of life assurance is that in which one party agrees to pay a given sum on the

happening of a particular event contingent upon the duration of human life in consideration of

immediate payment of a smaller sum by another.

--- BUNYONS LAW

1.3.2 Advantages of life insurance

1. It is superior to an ordinary saving plan: this is so because unlike other saving plans, it

offers full protection against risk of death.

2. Insurance encourages and enforces thrift : many people may not have the will power to

continue a long term saving plan which they may formulate regular payments in face of

money other uses to which their limited income could be put.

3. Easy installments and protections against creditors: the proceeds of a life insurance policy

can be protected against the claims of the creditors of life assured by affection a valid

assignment of the policies.

4. Tax relief: the income tax act exempts from tax that part of an individuals income which

is devoted to payment of life insurance premium.

5. Estate duty: life insurance is the most practicable way to ensure definite payment onones death without having resort to conversion of realizable asset at a loss.

1.3.3 Why Life Insurance

?

Life Insurance has come a long way from the earlier days when it was originally

conceived as a risk covering medium for short periods of time, covering temporary risk


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situations, such as sea voyages. As life insurance became more established, it was realized what

a useful tool it was for a number of situations, including

1. Temporary needs / threats: The original purpose of life insurance remains an important

element, namely providing for replacement of income on death etc.

2. Regular Savings: Providing for one's family and oneself, as a medium to long term

exercise (through a series of regular payment of premiums). This has become more

relevant in recent times as people seek financial independence for their family.

3. Investment: Put simply, the building up of savings while safeguarding it from the

ravages of inflation. Unlike regular saving products, investment products are traditionally

lump sum investments, where the individual makes a one off payment.

4. Retirement: Provision for later years becomes increasingly necessary, especially in a

changing cultural and social environment. One can buy a suitable insurance policy, which

will provide periodical payments in one's old age.

Let us take an example to understand the need for insurance:

Mr. Pranay is 45 years of age and self-employed. His wife Nandini, who is a housewife,

looks after their two children aged 3 and 7 years.

They stay in a rented accommodation, where the rent is 15,000 rupees per month. Mr.

Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on average are 40,000 rupees. Mr.

Atul passes away in an unfortunate road accident. What are some of the financial implications ofhis death on his family? There may be several financial implications on his family. Some of

these are:

a) The monthly income, previously provided by Mr. Atul would stop.

b) His wife and children may have to seek financial assistance from other relatives.

c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.

d) The family may have to move into a cheaper accommodation.

e) His widow may have to take up work to earn money.

f) The education of his children may suffer.

This simple example illustrates the impact premature death can have on a family, where

the main earner has no life cover. Had Mr. Atul taken life cover, his family would not have faced

such hardships in the event of his unfortunate death. A simple life insurance policy could have


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provided Mr. Atul's family with a lump sum that could have been invested to provide an income

equal to all or part of his income.

In simple words, insurance protects against untimely losses. Insurance has been found

useful in the lives of persons both in the short term and long term. Short term needs like sudden

medical costs and long term needs like marriage expenses etc can be met with using life

insurance.

1.4 Life Insurance in India

With such a large population and the untapped market area of this population Insurance

happens to be a very big opportunity in India. Today it stands as a business growing at the rate of

15-20 per cent annually. Together with banking services, it adds about 7 percent to the countrys

GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is

very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health

insurance.

This is an indicator that growth potential for the insurance sector is immense in India. It

was due to this immense growth that the regulations were introduced in the insurance sector and

in continuation Malhotra Committee was constituted by the government in 1993 to examine

the various aspects of the industry. The key element of the reform process was Participation of

overseas insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea behind thisreform.

Since then the insurance industry has gone through many sea changes .The competition

LIC started facing from these companies were threatening to the existence of LIC. Since the

liberalization of the industry the insurance industry has never looked back and today stand as the

one of the most competitive and exploring industry in India. The entry of the private players and

the increased use of the new distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the longer run.

1.4.1 History

The origin of insurance is very old .The time when we were not even born; man has

sought some sort of protection from the unpredictable calamities of the nature. The basic urge in


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man to secure himself against any form of risk and uncertainty led to the origin of insurance. The

insurance came to India from UK; with the establishment of the Oriental Life insurance

Corporation in 1818.

The Indian life insurance company act 1912 was the first statutory body that started to

regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75

provident firms were been established in India. Then the central government took over these

companies and as a result the LIC was formed. Since then LIC has worked towards spreading

life insurance and building a wide network across the length and the breath of the country. After

the liberalization the entrance of foreign players has added to the competition in the market.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the year 1850

in Calcutta by the British. In 1957 General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair conduct and sound business

practices. In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

It was after this that 107 insurers amalgamated and grouped into four companies viz. the

National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a

company.

1.4.2 Present Scenario

The government of India liberalized the insurance sector in March 2000 with the passage

of the Insurance Regulatory and Development Authority (IRDA) bill. Policies come under the

purview of the government appointed Tariff Agenty Committee. The opening up of the sector is

likely to lead to greater spread and deepening of insurance in India and this may also

restructuring and revitalizing of the public sector companies. A host of private insurance

companies operating in both life and non life segments have started selling their insurance

policies since 2001.

Non life insurance market, In December 2000, the GIC subsidiaries were restructured as

independent insurance companies. At the same time, GIC was converted into national re-insurer.

In July2002, Parliament passed a bill, delinking the four subsidiaries from GIC.


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Presently there are 12 general insurance companies with 4 public sector companies and 8

private insurers. Although the public sector companies still dominate the general insurance

business, the private insurance companies have a 10 percent share of the market, up from 4

percent in 2001. In the first half of 2002, the private companies booked premium worth 6.34

billion. Most of the new entrants reported losses in first yr of their operation in 2001.

Insurance costs constitute roughly around 1.2 2 % of the total project costs. Under the

existing norms, insurance premium payments are treated as part of the fixed costs. Consequently

they are treated as pass through costs for tariff calculations. For projects costing up to Rs.1

billion, the tariff Agent committee sets the premium rates, for projects between 1 billion and 15

billion, the rates are set in keeping with committees guidelines; and projects above 15 billion are

subjected to reinsurance pricing. It is the last segment that has a number of additional products

and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally

one insurer takes the lead, shouldering about 40-50% of the risk and receiving proportionate

percentage of the premium.


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INTRODUCTION TO THE ORGANIZATION

Chapter 2

Introduction to the Organization

SBI Life Insurance

Products

Tax Benefits

Project Profile


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2.1 SBI Life Insurance

SBI Life Insurance Company Limited is a joint venture between the State Bank of India

and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs

2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP

Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7

Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the

country, arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas

- Euro Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market

value and a European leader in global banking and financial services, is one of the oldest foreign

banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest

life insurance company in France, and a worldwide leader in Creditor insurance products

offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries

mainly through the banc assurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency

and Group Corporate. SBI Life extensively leverages the SBI Group as a platform for cross-

selling insurance products along with its numerous banking product packages such as housing

loans and personal loans. SBI access to over 100 million accounts across the country provides avibrant base for insurance penetration across every region and economic strata in the country

ensuring true financial inclusion.

SBI Life extensively leverages the State Bank Group relationship as a platform for cross-

selling insurance products along with its numerous banking product packages such as housing

loans and personal loans.

2.1.1 Mission


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Ranked amongst global top five life insurance companies in the number of MDRT

members.

Forayed into micro insurance with the launch of Grameen Shakti in

Bhubaneshwar, Orissa for the economically underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim settlement process.

Became the only domestic life insurer to achieve CMMI Level 3 certification for

IT processes and software development capabilities.

C) Financial Year 06-07:

Second consecutive year of profitability.

Leads Private Life Insurance Companies in Lives covered : 6.49 Million lives

covered.

D) Financial Year 05-06:

Becomes the first Life Insurer to make profits.

2.2 Products

2.2.1 Horizon- II

SBI Life - Horizon II is a unique, non participating Unit Linked Insurance Plan in Indian

Insurance Industry, where you need not to be a financial market expert. This plan offers the

flexibility of Unit Linked Plan along with Automatic Asset Allocation which provides relatively

higher returns on your money where as increasing death bench.

Twin benefit of insurance cover and market linked returns profits provides higher

security to Hassle-free investment management of funds from inception to maturity, Automatic

Asset Allocation of funds, automatic rebalancing of funds at yearly intervals, free of cost higher

protection, to meet your family financial needs.

It is aunique, non-participating Unit Linked Insurance Plan. As per the plan and term

chosen by you, SBI Life will invest the net premium amount into each of the funds mentioned.

2.2.2 Maha Anand


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SBI Life - Maha Anand is a simple & convenient unit linked plan, which provides you

insurance cover without any medicals.

Life begins afresh when you become a parent and when the child takes that first step

towards you, the moment is filled with cheer, enthusiasm never felt before. This moment marks a

new beginning in the childs life and theres no looking back after that. The child keeps growing

and so are his dreams, aspirations which always aim to reach horizon and you want your child

achieve his/her dreams. But at the same time as a proud parent you also want to secure their

future against rising cost of education and other necessities.

Key Features-

Twin benefit of market linked returns and insurance cover

Simple Joining Process - No medical examination required

Option to pay premium, as low as Rs 500 p.m.

Choice of 3 fund options to choose from

Flexibility to increase your investments, through Top-up Investment

Flexibility through Switching and Redirection Options

Liquidity through partial withdrawals

Attractive Tax benefits under the Income Tax Act, 1961

2.2.3 Unit Plus- II

We at SBI Life understand the basic needs for pension plan and give you financial

strength to maintain your life style even after the retirement. SBI Life - Unit Plus II Pension plan

makes sure that you have regular income after you retire and also helps you to maintain your

standard of living.

This is a unit linked pension plan wherein the policyholder chooses an investment period

from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single

premium or pay regular premium for the entire policy term. Your contributions are invested

into 5 fund options as per your choice.


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2.2.4 Unit Plus Child Plan

We at SBI LIFE understand you better and hence have developed SBI Life - Unit Plus

Child Plan to suit you and your needs best. This Plan is meant for parents in the age group of 18-

57 having a child between the age group of 0-15 years.

Key Features-

Market related returns to match increasing cost of education

Peace of Mind by giving you triple benefits

Loyalty units to celebrate your child reaching 18 years

New Investment Fund (Equity Optimizer Fund) in addition to existing funds.

Pay Premium for a limited period and reap benefits over a long time.

Flexible plan which adapts to your changing needs as and when you want.

2.2.5 Pension plan

We at SBI Life understand the basic needs for pension plan and give you financial

strength to maintain your life style even after the retirement. SBI Life - Unit Plus II Pension plan

makes sure that you have regular income after you retire and also helps you to maintain your

standard of living.

This is a unit linked pension plan wherein the policyholder chooses an investment period

from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single

premium or pay regular premium for the entire policy term. Your contributions are invested

into 5 fund option.

Key Features-

Choice to invest & control four different funds as per your risk appetite

Choice to invest & control four different funds as per your risk appetite.

Flexibility to choose between two options

Pure Pension

Pension cum Life Cover

No medical required for Pure Pension, automatic acceptance facility

Flexibility to increase regular contribution

Top up payments: any amount, anytime


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Customize your plan by adding riders

15 days free look period

2.2.6 Smart ULIP

In the current volatile market scenario you need a plan which not only protects yourinvestment, but also enables you to get market related returns. SBI Life - Smart ULIP is the

perfect answer to your need, and will give you not only Guarantee on select NAVs during the

first seven years, but also gives you the added attraction of participating in the market upside.

Key Features-

Guarantee of the highest of select NAVs, during the first seven years on maturity.

Investment cum Insurance plan giving market related returns

Convenience through shorter premium paying term, giving you a choice betweentwo premium paying terms (PPT)

Power of more- Guaranteed Maturity NAV, continues beyond the premium

payment term.

Innovation structured investment fund-Flexi protect Fund

Hassle free plan- we manage your investment, giving you maximum opportunity

for growth while protecting your investments against adverse market conditions.

Attractive Tax benefits under the Income Tax Act, 1961

2.2.7 Health Products

Financial planning is incomplete without planning health insurance. Due to todays hectic

lifestyle, improper diet, lack of exercise we are at higher risk of contingencies of untimely

serious illnesses. Sudden health problems could have deep hole in your pockets. Medical science

has advanced by leaps and bounds in the last few decades. Theres a definite need to cover for

health insurance to reduce the financial burden.

SBI Life Insurance features both individual and group products like:

1. Unit Linked Products- this is a single non participating product group that meets both the

financial as well as insurance needs.

2. Pension Products- these comprehensive plans help to meet your post retirement financial

needs.


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3. Pure Protection Products- nobody can predict future. So, any time anything can shatter ones

dreams. Pure Protection Products help to keep one safe and secure during these trouble times.

SBI Life also offers some protection cum savings products and money back scheme

products. SBI also has products for brokers. These products take inspiration from the endeavors

of various industries and make your life easy.

2.3 Tax Benefits

SBI Life Insurance Company has outperformed ICICI Prudential Life Insurance in terms

of new business premium collection this year, according to the data published by the Insurance

Regulatory and Development Authority (IRDA). Life Insurance Corporation (LIC) still retains

the top rank among all the insurers, with a market share of 61.88 per cent in the first two months

(April-May) of the present financial year. SBI Life has taken the second position, with Rs 783.94

crore new business premiums collected in this year, amounting to 9.06 percent of the market

share. ICICI Prudential Life Insurance, which still has the largest market share among the private

life insurers as per capitalization and number of lives covered, has slipped to the third rank, with

a premium collection of Rs 483 crore and a market share of 5.59 per cent up to May.

SBI life had collected Rs 546.34 crore in the previous year compared with ICICI

Prudential that had gathered Rs 951.76 crore. SBI Life Insurance has a capital of Rs 2,000 crore

and a paid-up capital of Rs 1,000 crore. SBI owns 74 per cent of the total capital with BNP

Paribas Assurance holding the remaining 26 per cent.

According to figures made available by IRDA, LIC was on the top position with a market

share of 41 per cent on the new business premium collection in the previous year. LIC was

followed by ICICI Prudential, with 12.2 per cent market share and SBI Life, with 8.9 percent.

The insurance companies ranking is often based on the new business premium coming out of

the new policies that are sold, though a large chunk of the money also comes from renewal

premium. Other leading life insurance companies, such as Bajaj Allianz Life, Max New York

Life and Reliance Life insurance, enjoy a market share of 3 to 4 per cent each. In the previous

financial year, when the global financial crisis unfolded, insurance companies saw no growth in

business when compared with the previous year. This was primarily because of weak investor

confidence and the flight to safety that the investors had adopted after the equity markets came

crashing down.


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"All insurance advertising offers a solution after implicitly raising the fear of death or

uncertainty of retirement. There are 14-15 players in the market, all saying more or less the same

negative things. So we wondered, is there any other way to reflect what we wanted," says Mr.

Muralidharan. On the surface, insurance is about death. But why should one insure? "It's to make

sure an individual, and then her or his dependants, live well. So, if insurance is portrayed in this

light, we can get a larger number of people to accept it," he adds.

The size of the life insurance market is Rs 11,323 crore. SBI Life, which started

operations in 2001, has a market share of 1.49 per cent in terms of premium and 8.97 per cent in

terms of number of people insured, says Mr. Muralidharan. Old and major player LIC has 67 per

cent in terms of lives insured and a market share of 74.26 per cent. Insurance companies also

face the challenge of getting younger people to invest. Most people under thirty think they are

"indestructible," says Mr. Muralidharan. The ads are "unpalatable" and "determine your death"

and definitely discourage a lot of very suave, articulate people from even contemplating

insurance, so our campaign aims to "remove the whiff of death" from it and make it a "happiness

product", he says.

2.4Project Profile

2.4.1 Eligibility For Recruitment of an Insurance Agent

Every person who has cleared higher secondary examination can become an agent other

than a minor or the person who is convicted in any court for crime or any legal proceedings.

Men and women both can work as an Agent. A single person can be associated with other life

insurance companies.

A training program is there to train a person who wants to become an Agent. There is 100

Hrs. training program which can be done either with the physical appearance in the class room or

the interest basis. In the classroom training the trainee has to be physically present in the training

session. There are difference sessions of training program. A trainee can attend any session

according to his comfort. The training period is of 25 days approx. If the trainee does not have

enough time to devote in the classroom training, then there is another option left that is training

on Internet.


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On the basis of Internet the trainee has provided a login number along with the password

through which he operated his login and completed his training as convenient. Each and every

hour pass on the net under his login head will be count on his account. The test for the training

program is also on line. This is only procedure to be an Insurance Agent.

2.4.2 Scope of Insurance Agent

In the present scenario the living standard is becoming higher and higher every day.

Every person who has a family to survive wants to provide his family each and every possible

comfortable thing. He wants his children to be a well dressed, to be higher qualified in a well

recognized school, colleges, institutes and wants his children to go abroad for higher education.

He wants to live a luxury life full of pleasure.

To fulfill all of his needs he has to earn more and more. Any person can be on a job at a

time or can be on a business cant fulfill his pleasure requirement. There is a source through

which he can make money in a legal way that is insurance sector.

Becoming an insurance Agent provides him the legal source by which he can earn money

with his current status. It is the business in which you deal with you personal contacts and can

gain extra income. This business needs low investment and not of much effort. Its all depending

on your social contacts and your skills to convince people by helping them to suggest the product

which suited them the most.

As due to critical diseases, growing percentage of accident and fear of financial crisiseveryone wants to secure his or her future. Insurance sector plays a vital role in assuring people

about their future. As the scope of insurance enhancing, the need of an insurance Agent who can

guide the potential customers is growing.

Being an insurance agent of SBI Life Insurance provides a legal mean to earn money

which protects a person from earning through an illegal source which is harmful for society as

well as him. For the youngsters it provides great platform to prove them. On the basis of their

performance they can be recruited as unit manager.

2.4.3 Recruitment Process

The recruitment and selection is the major function of the human resource department

and recruitment process is the first step towards creating the competitive strength and the

strategic advantage for the organizations. Recruitment process involves a systematic procedure


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from sourcing the candidates to arranging and conducting the interviews and requires many

resources and time. A general recruitment process is as follows:

1. Identifying the vacancy-The recruitment process begins with the human resource

department receiving requisitions for recruitment from any department of the company.

These contain:

Posts to be filled

Number of persons

Duties to be performed

Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees

(Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final

interviews and the decision making, conveying the decision and the appointment formalities.


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Fig.2.1 Recruitment process

The recruitment procedure of life insurance is very easy. A person with high educating

and well experience can be recruited after a personal interview and group discussion. After the

training program is completed the Insurance Agent has to appear for the pre-examination

conducted by IRDA. As he clear the exam he provides a license, which is the proof of a legalized

insurance Agent, which permits him to deal in his insurance business.

Steps in recruitment of Insurance Agents

Approach to the likely person

Appointment as per condition

Discuss the topic

Give the documents which includes:-

1. Prospectus of the company

2. Brochure

3. Companys plan

4. Questionnaire

Collect the document after its completion

Forward it to project manager

Feed it in the computer as the database

Follow up as per conditions

Modes of Contact

Personal Contacts

References

Phone Calls

Guidance as per Unit Manager


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E-Recruitment

Many big life insurance organizations use Internet as a source of recruitment. E-

Recruitment is the use of technology to assist the recruitment process. They advertise job

vacancies through worldwide web. The job seekers send their applications or curriculum vitae

i.e. CV through e mail using the Internet. Alternatively job seekers place their CVs in

worldwide web, which can be drawn by prospective employees depending upon their

requirements.

Advantages of e-recruitment are:

Low cost.

No intermediaries

Reduction in time for recruitment.

Recruitment of right type of people.

Efficiency of recruitment process.

The buzzword and the latest trends in recruitment is the E-Recruitment. Also known as

Online recruitment, it is the use of technology or the web based tools to assist the recruitment

process. The tool can be either a job website like naukri.com, the organizations corporate web

site or its own intranet. Many big and small organizations are using Internet as a source of

recruitment. They advertise job vacancies through worldwide web. The job seekers send their

applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job

seekers place their CVs in worldwide web, which can be drawn by prospective employees

depending upon their requirements.

The two kinds of e- recruitment that an organization can use is

Job portals i.e. posting the position with the job description and the job specification on

the job portal and also searching for the suitable resumes posted on the site corresponding

to the opening in the organization.

Creating a complete online recruitment/application section in the companys own

website. Companies have added an application system to its website, where the passive

job seekers can submit their resumes into the database of the organization for

consideration in future, as and when the roles become available.


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Resume Scanners: Resume scanner is one major benefit provided by the job portals to the

organizations. It enables the employees to screen and filter the resumes through pre-

defined criterias and requirements (skills, qualifications, experience, payroll etc.) of the

job.

Job sites provide a 24*7 access to the database of the resumes to the employees

facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site

almost immediately and is also cheaper than advertising in the employment newspapers.

Sometimes companies can get valuable references through the passers-by applicants. Online

recruitment helps the organizations to automate the recruitment process, save their time and costs

on recruitments.

Online recruitment techniques

Giving a detailed job description and job specifications in the job postings to attract

candidates with the right skill sets and qualifications at the first stage.

E-recruitment should be incorporated into the overall recruitment strategy of the

organization.

A well defined and structured applicant tracking system should be integrated and the

system should have a back-end support.

Along with the back-office support a comprehensive website to receive and process job

applications (through direct or online advertising) should be developed.

2.4.4 Sources of Recruitment

Every organization has the option of choosing the candidates for its recruitment processes

from two kinds of sources: internal and external sources. The sources within the organization

itself (like transfer of employees from one department to other, promotions) to fill a position are

known as the internal sources of recruitment. Recruitment candidates from all the other sources(like outsourcing agencies etc.) are known as the external sources of recruitment.

SOURCES OF RECRUITMENT


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Internal Sources

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

according to their efficiency and experience.

2. Promotions: The employees are promoted from one department to another with

more benefits and greater responsibility based on efficiency and experience.

3. Others are Upgrading and Demotion of present employees according to their

performance.

4. Retired and Retrenched employees may also be recruited once again in case of

shortage of qualified personnel or increase in load of work. Recruitment such

people save time and costs of the organizations as the people are already aware of

the organizational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employees are

also done by many companies so that the members of the family do not become

dependent on the mercy of others.


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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 well-knowncompanies 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.

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.


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2.4.5 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

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.


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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, 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 attractmore 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


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a company is based on what organization does and affected by industry. For example

finance was taken up by fresher MBAs 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 cant 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.


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Chapter 3

Research Methodology

Title of the Study

Duration of the Project

Objective of Study

Type of Research

Sample Size and Method of Selecting Sample

Scope of Study

Limitation of Study


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RESEARCH METHODOLOGY

3.1 Title of the Study

Recruitment Process in Insurance Company. The study is showing recruitment process

of any candidate in insurance company. This research is done at Sikar. This study also shows

why people join insurance sector.

3.2 Duration of the Project

In June 2009, I have been assigned a project on recruiting process in insurance company

with special reference to SBI Life Insurance as a part of our course curriculum. The duration of

the research is approx 30 days.

3.3 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

3.4 Types of ResearchI 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

i. Primary sources- Where the data is collected primarily by interviewing and

personal observation and is original in nature and accurate to the considerable

extent.


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ii. Secondary sources- Where the data is obtained from some published and printed

sources such as newspaper, magazines, and websites and so on.

3.5 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 students4. Other Professions

a) Engineers

b) Doctors

c) Bankers


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Sample size

InsuranceemployeesStudents

Businessmen

Otherprofessions

Fig.3.1 Sample size

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-

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.


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3.6Scope 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 issignificant for:

3.6.1 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.

3.6.2 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.

3.7 Limitation of Study

The research area was restricted only within the Sikar city. 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.


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Chapter 4

Facts and Findings

Market Survey

Role of the Development Agency


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FACTS AND FINDINGS

4.1Market Survey

Category of life insurance:-

LIFE INSURANCE IS:

51

38

16

0

10

20

30

40

50

60

Protection of

human asset valueagainst uncertainty

Tax benefit device Both

CATEGORY

RESPONSES

Fig.4.1 Category of life insurance


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Essentiality of life insurance :-

78

27

0

10

20

30

40

50

60

70

80

NO.OF

RESPONDENT

Yes No

RESPONSES

IS LIFE INSURANCE ESSENTIAL?

Fig.4.2 Essentiality of life insurance

Qualification for life insurance:-

RESPONDENT'S QUALIFICATION

33%

10%

57%

Post graduate

Graduate

Senior se condary

Fig.4.3 Qualification for life insurance


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Age qualification for life insurance :-

AGE QUALIFICAITON:

39%

20%

6%

35%

18-25 age group

25 35 age group

35 45 age group

Above 45 age group

Fig.4.4 Age qualification for life insurance

Causes of dissatisfaction :-

CAUSES OF DISSATISFACTION

17%

16%

10%23%

34%

Low employment

Low earning / income

Low status

Huge capital investment

All of the above

Fig.4.5 Causes of dissatisfaction


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Career in life insurance :-

ABOUT CAREER IN LIFE INSURANCE

59

46

0

10

20

30

40

50

60

70

Yes NoRESPONSES

NO.OF

RESPONDEN

T

Fig.4.6 Career in life insurance

Life insurance is noble service or not? :-

86

19

0

20

40

60

80

100

NO.OF

RESPONDENTS

Yes No

RESPONSES

IS LIFE INSURANCE A NOBLE SERVICE?

Fig.4.7 Life insurance is noble service or not?


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Life insurance as a career :-

18

41

0

10

20

30

40

50

NO.OF

RESPONDENTS

Yes No

RESPONSES

ACCEPT LIFE INSURANCE AS A CAREER?

Fig.4.8 Life insurance as a career

Growth of life insurance :-

92

13

0

20

40

60

80

100

RESPONDENTS

Yes No

RESPONSES

IS LIFE INSURANCE INDUSTRY GROWING?

Fig.4.9 Growth of life insurance


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Life insurance: public or private :-

AGREE WITH PRIVATISATION OF LIFE

INSURANCE?

74

31

0

10

20

30

40

50

60

7080

Yes NoRESPONSES

RESPONDENTS

Fig.4.10 Life insurance: public or private

4.2 Role of the Development Agency

Due to the nature of the groups covered, SBI Life will be passing certain administrative

tasks onto the Development Agency. By passing on these tasks the premium charged can be

lower. These tasks would include:

Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to group members

These tasks would be in addition to the usual duties of a policyholder such as:

Payment of premiums

Reporting of claims

Keeping policy holder information up to date


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Chapter 5

Analysis and Interpretation

Market Survey Report

Product Policy Queries


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ANALYSIS AND INTERPRETATION

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.

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.

Summarizing of data- Thereby necessary summary is prepared which is essential in the

project report of the summer training being done under an organization.

5.1 Market Survey Report

Category of life insurance

Protection of human asset value against uncertainty 51

Tax benefit device 38

Both 16

From the survey it was drawn that life insurance is more a protection of human asset

value against uncertainty (conferred by 51 respondents) where it is a tax saving option (being

accepted by 38 respondents).

Life insurance is a service involving both these prerequisites as depicted by remaining 16

respondents.


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Essentiality of life insurance

Yes 78

No 27

It has been observed and applied as a Life insurance is an essential service and should be

applicable to every one, as favored by considerable 78 respondents where it is not essential to an

extent by 27 respondents from the summer training project survey by putting forth the set

questionnaire.

Qualification for life insurance

Post graduate 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.

Age qualification for life insurance

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.


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Causes of dissatisfaction

Respondents had different views about the dissatisfaction from the 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

Career in life insurance?

Yes 59

No 46

When asked about whether they would like to know about a glorified 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.

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 andbelieve that insurance is a bettering service to human life and society as a whole where as 19

respondents show disagreement.

Life insurance as a career?


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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.

Is Life insurance industry growing?

Yes 92No 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.

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 knowledgeablewith respect to life insurance than that in the past 50 years with the working of LIC.

5.2 Policy Product Queries

1. What are the basic elements of Life Insurance?

The two basic elements to all individuals are


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a. Risk coverage (i.e. Term Insurance)

b. Savings for future (i.e. Pure Endowment)

2. What is Term Insurance?

Term Insurance covers Risk and Risk means Death. Here a lump sum amount is payable

only if death occurs during a selected period. If the insured survives till the end of the selected

period, nothing becomes payable.

3. What is Endowment product?

The insurer will receive a lump sum amount either at death during the term or at maturity of

the term.

4. What is a Whole Life insurance product?

Whole life insurance risk covers the death of the insured, whenever it may happen. It means

that there is no fixed term under whole life insurance. Most policies provide a dividend to the

policy holder which helps with retirement.

There are two variations in the whole life insurance products-a. Pure Whole Life Insurance: - where premiums are payable continuously throughout the

life of the insured till death. Risk coverage is for the entire duration of life and the life

insured amount is paid on the happening of the death of the insured at any time.

b. Limited Payment Whole life Insurance: - where premiums are paid for a limited and

shorter period and the option of the insured or till death if earlier. Risk coverage is

however throughout the life of the insured.

5. What is a Guaranteed Surrender Value?

The policy can be surrendered for cash only after the premiums have been paid for at least

three years. The minimum surrender value allowed is equal to a certain percentage of the total

amount of premiums paid excluding the premiums for the first year and all extra premiums or

additional premiums for accident benefits that may have been paid.


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SWOT

Chapter 6

SWOT

Strengths

Weakness

Opportunities

Threats


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6.1 Strengths

SBI Life has a unique multi-distribution model encompassing Bancassurance, Agency

and Group Corporate. SBI Life extensively leverages the State Bank Group as a platform for

cross-selling insurance products. At present SBI Life has over 400 branch offices in India.We take pride in our track record of growth, financial solidity, ethical practices, domain

expertise and meritocratic culture. Join us for a rewarding and an enriching career.

About SBI Life Insurance

Bagged the most coveted personal financial services award Outlook Money NDTV

Profit Best Life Insurer 2008.

Ranks among Global Top Three at Million Dollar Round Table (MDRT).

Has been assigned IAAA rating indicating highest claims paying ability, by ICRA, one of

the Indias leading rating agencies. This rating reflects SBI Lifes fundamentally strong

position and the prospect of meeting its policyholders obligations as highest.

Has been reaffirmed "AAA/Stable" rating, the highest financial rating by CRISIL, Indias

leading rating agency. Last year SBI Life became the first insurance company to get the

highest rating of AAA/Stable" from CRISIL. This rating reflects highest financial

strength to meet policyholder obligations.

More than 40,000 insurance advisors work with SBI Life Insurance in India.

SBI Life Insurance is known for qualities like trustworthiness, ambition, innovation,

dynamism and excellence in its area of specialization.

The SBI Group owns more than 14,500 branches located across the country of India.

6.2 Weakness

1. LIC is prevalent and sustains even today a major source of population.

2. Low number of offices and network and number of life insurance agents.

3. Lack of knowledge and expertise.

6.3 Opportunities


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1. Life insurance has captured its mere15 20% growth therefore a wide open

untapped market is open to the company to develop, grow and measure its

success.

2. Still the numbers of companies are few and company has every capability to grow

and forward its performance areas to the widest.

6.4 Threats

1. People are hesitant to invest and put their hard earned money to the private life

insurance company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to

surmount the people of India despite lots of flaws and development and

liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and

securities also pose problems and threats to the working of the life insurance

sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are investing a bulk of their

money over to that industry.


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Chapter 7

Conclusion

Conclusion


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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. SBI 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 manual but, as automated methods become more pervasive, those

mechanisms that support its use will assume greater popularity.

Whatever the strategies selected for use, the objective is to recruit the most qualified,

committed individuals into the organizations and ensure that the provision of government

services to the public is timely and effective, that the goods are of consistent high quality and

that the organizations achieve the objectives for which they have been established.

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.


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Chapter 8

Recommendation and Suggestions

Recommendations

Suggestions


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RECOMMENDATION AND SUGGESTIONS

Recommendations-

Following are suggestions made for the benefits and augmentation of the sound working

of the company SBI 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 customers 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

26208097 recruitment process in insurance company

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