training and development at idbi bank

8/10/2019 Training and Development at IDBI Bank

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Training and development at IDBI Federal Life insurance co. ltd.

Submitted to,

Ms. Piyushi verma

Manager director.

Submitted by,

N. Kruthika Reddy

BBA - II

St. Josephs Degree

and PG college.

PREFACE:

Training is the acquisition of knowledge, skills, and competencies as a result of

the teaching of vocational or practical skills and knowledge that relate to specific

useful competencies. Training has specific goals of improving ones capability,

capacity, productivity and performance. It forms the core of apprenticeships and

provides the backbone of the content at institutes of technology. In addition to the

basic training required for a trade, occupation or profession, observers of the


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labour-market recognize as of 2008 the need to continue training beyond initial

qualifications: to maintain, upgrade and update skills throughout working life.

Training methods are of two types On the job training and Off the job training.

The on-the-job training method takes place in a normal working situation, using

actual tools, equipment, documents or material that trainees will use when fullytrained. The off-the-job training method takes place away from normal work

situationsimplying that the employee does not count as a directly productive

worker while such training takes place.

DECLARATION:

This is to certify that the projects titled: training and development regarding IDBI

FEDERAL LIFE INSURANCE COMPANY Products are a bonafide work

completed by N. KRUTHIKA REDDY, Enrollment Number 124060656, in partialfulfilment of the requirements of the BBA program and submitted to St. Josephs

Degree and PG college.

I declare that this project is a result of my

own efforts and has not been copied from any source. References from which

information has been taken have been given in the references section. This work

has not been submitted earlier at any other university or institute for the award of

the degree.

N. KRUTHIKA REDDY

12406056St. Josephs Degree and PG college.


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ACKNOWLEDGEMENT:

I wish to express our sincere thanks to Ms. Piyushi Verma for providing us anopportunity to work in IDBI Federal Life Insurance co. Ltd. I would also like to

express my gratitude to Ms. Piyushi Verma (My company guide) for providing

there valuable feedback and intense support relentlessly throughtout the project.

I sincerely express my gratitude to Anitha (My faculty

guide), for giving her valuable guidance, healthy support and suggestions to make

the project a successful one. I am really thankful to my parents and friends for

helping me to study and giving feedback in all possible ways to make me feel

comfortable during my project. There have been numerous influences, big andsmall that have helped me to work on my project successfully. Regardless of the

source, I thank all those who may have contributed to this project.

Framework of the project is as follows:

I. Internship certificate

II. Acknowledgement

III.Preface

IV.Declaration

1. Executive summary

2. Introduction

2.1

Background of the topic2.2 Objectives of the study

2.3 Need of the study

2.4 Methodology both primary and secondary

2.5 Scope and limitations

3. Economy and industry analysis

4. Company analysis

5. Project specific analysis

6. Conclusions and recommendations

7.

Outcome or contribution8. Learnings from SIP


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9. References

10.Appendix

1.

EXECUTIVE SUMMARY:

Training is the acquisition of knowledge, skills, and competencies as a result ofthe teaching of vocational or practical skills and knowledge that relate to specific

useful competencies. Training has specific goals of improving ones capability,

capacity, productivity and performance. It forms the core of apprenticeships and

provides the backbone of the content at institutes of technology. In addition to the

basic training required for a trade, occupation or profession, observers of the

labour-market recognize as of 2008 the need to continue training beyond initial

qualifications: to maintain, upgrade and update skills throughout working life.

Some commentators use a similar term for workplace learning toimprove performance: training and development. One can generally categorize

such training as on-the-job training or off-the-job training. The on-the-job training

method takes place in a normal working situation, using actual tools, equipment,

documents or material that trainees will use when fully trained. The off-the-job

training method takes place away from normal work situationsimplying that the

employee does not count as a directly productive worker while such training takes

place.

2. INTRODUCTION:

2.1 Description of the project:

Training and development is a function of Human Resource Management(HRM)

concerned with organizational activity aimed at bettering the performance of individuals


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and groups in organizational settings. It has been known by several names, including

Human Resource Developmnent, and learning and development.

Training and development encompasses three activities: Training, Education andDevelopment.

Training:This activity is both focused upon, and evaluated against, the job that

an individual currently holds.

Education:This activity focuses upon the jobs that an individual may potentially

hold in the future, and is evaluated against those jobs.

Development:this activity focuses upon the activities that the organization

employing the individual is part of, may partake in the future, and is almost impossible toevaluate.

2.2 Need of the study:

Training presents a prime opportunity to expand the knowledge base of all employees, but

many employers find the development opportunities expensive. Employees also miss out

on work time while attending training sessions, which may delay the completion of

projects. Despite the potential drawbacks, training and development provides both thecompany as a whole and the individual employees with benefits that make the cost and

time a worthwhile investment.

a. Addressing weakness

b. Improved employee performance

c. Consistency

d. Employee satisfaction

2.3 Objectives of the project:

1. To increase productivity.

2. To increase quality.

3. To help a company fulfil its future personnel needs.

4.

To improve health and safety.

5. To improve organizational climate.

6.

Personal growth.

2.4 Scope of the study:


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The reach out of training programmes, is far and wide. Depending upon the nature,

duration and purpose of the training programmes, the trainees may acquire attributes, like

skills, knowledge, analytical acumen, concepts, attributes, and ethical values.

Knowledge: The basic purpose of any training programme is to provide the participants

with the requisite knowledge to achieve the goals of the job. Knowledge is generally

developed through the processes of perception, learning and reasoning.

2.5 Limitations of the project:

1. Training is a costly affair and expensive process

2.

Training may result dislocation of work and loss of output because regular officework is likely to be interrupted or delayed because of the time spent in the training

3. Sometimes, it is difficult to obtain good training instructors and leaders.

4.

Selfreliance and capacity for new ideas might be stiffed.

3.

ECONOMIC INDUSTRY ANALYSIS

3.1. Introduction to Insurance Industry:

Insurance is a form of risk management that shields insured from the risk of any uncertain

of unfortunate events. In simple terms insurance can be defined as transfer of risk from

one entity to another in exchange of the payment. In a laymans term, insurance is a guard

against monetary loss arising on the happening of an unforeseen event. In developing

countries like India insurance sector still holds lot of potential which need to be tapped.

3.2.

Types of Insurance:

Insurance can be classified into three categories:


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Life Insurance:

Life Insurance is a concord between the insurer and the policyholder, where insurer

promises to pay beneficiary designated sum of money upon death of the insured

person. Life Insurance covers number of contingencies like Death, Disability,

Disease. General Insurance:

General Insurance is a non-life insurance policy including automobile and

homeowner policy. General insurance specifically consist of non- life insurance. It

includes property insurance, liability insurance and other forms of insurance. Fire

and Marine insurance are called property insurance.

Social Insurance:

Social insurance is another type of insurance for weaker section of the society. It

provides protection to weaker section of the society who are unable to pay

premium. Industrial Insurance, sickness insurance, pension plan, disability benefits,unemployment benefits are some the type of social insurance.

3.3.

Insurance Sector in India:

Indian insurance sector has gone through different phases of competition, from being an

open competitive market to a nationalized market and then again getting back to

liberalized market. Indian insurance sector has witnessed complete dynamism in past fewcenturies.

Insurance sector in India has a deep- rooted history. Its mention has been found in

writings of Manu (Manusmriti), Yagnavalkya (dharmashastra) and Kautilya

(Arthshastra). Ancient Indian history has preserved traces of insurance in the form of

marine trade loans and carrier contracts.

Insurance industry in India is governed by Insurance Act of 1938, Life Insurance

Corporation Act of 1956 and General Insurance business Act, 1972, Insurance Regulatory

and Development Authority (IRDA) Act of 1999 and other related acts. Insuranceindustry in India is considered as an industry with big potential market. One of the reason

that India is seen as huge potential market is because of its huge population and untapped

market area of this population. In terms of population India has an immense potential

expanding their life insurance cover. Majority of people in India are unaware of the

functions and benefits of Insurance because of which insurance sector has a bright future

in India. But it is relevant to consider factors like different varieties of social structure,

urban and rural composition other than very important factors like age, sex, income level,

literacy level. Making assessment of Life Insurance potential of India is very difficult task

due to wide variance in every aspect of Indian circumstances and without a refinedanalysis any estimate would be meaningless.


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.

3.4. Indian Insurance Industry at present:

Life Insurance Corporation (LIC) had the monopoly over the market till the late 90s

when the insurance sector in India was opened for private players. Before that there were

only two state insurer, one was LIC (Life Insurance Corporation of India) and GIC

(General Insurance corporation of India).

Indian insurance sector at present has undergone many structural changes in 2000. The

Government of India has liberalized the insurance sector in 2000 with IRDA (Insurance

Regulatory and development authority) lifting all entry restriction of foreign players witha specific limit on direct foreign ownership. Under the current guideline 26% of equity

cap is there for foreign players in an insurance company and proposal is being given to

increase this limit to 49%. Post liberalization insurance industry in India have come a

long way and today it stands as one of the most competitive, challenging and exploring

industry in India. Increased use of new distribution channels are in limelight today due to

entry of private players. In the long run the use of these distribution channels and modern

IT tools has increased scope of the insurance industry. Also the changing economics

patterns, changing political scenario, modern IT tools will eventually help in reshaping

future of Indian financial market and Life Insurance business in the country.


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3.5. Major Players:

Various players in Indian Life insurance are given below:

1.

Life Insurance Corporation of India

2.IDBI federal Life Insurance Co. Ltd

3.Bajaj Allianz Life Insurance Co. Ltd

4.Birla Sun Life Insurance Co. Ltd

5.HDFC Standard Life Insurance Co. Ltd

6.

ICICI Prudential Life Insurance Co. Ltd7.

ING Vysya Life Insurance Co. Ltd

8.Max New York Life Insurance Co. Ltd

9.

Met Life India Insurance Co. Ltd

10.Kotak Mahindra old Mutual Life Insurance Ltd

11.

SBI Life Insurance Co. Ltd

12.Tata AIG Life Insurance Co. Ltd

13.

Reliance Life Insurance Co. Ltd

14. Aviva Life Insurance Co. India Pvt. Ltd

15.

Sahara India Life Insurance Co. Ltd16.Shriram Life Insurance Co. Ltd

17.

Bharti AXA Life Insurance Co. Ltd

18.Futute Generali Life Insurance Co. Ltd

19.Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

20.AEGON Religare Life Insurance Co. Ltd

21.DLF Pramerica Life Insurance Co. Ltd

22.Star Union Dai-ichi Life Insurance Co. Ltd


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Latest market share of all insurance companies as of march 2011:


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3.6.

Regulatory Issues:

Insurance Regulatory and Development Authority (IRDA) is a national agency of

government of India. It was formed by an act of Indian Parliament known as IRDA Act1999 which was amended in 2002 to incorporate some upcoming requirement. It is

responsible for protecting the interest of policy holders, to regulate and promote orderly

growth of Insurance Industry in India. To achieve this objective IRDA has taken

following steps:

IRDA has notified protection of policyholders Interest Regulation 2001 to provide

for: policy proposal document is in easily understandable language; claims

procedure in both life and non-life; setting up grievance redress machinery; speedysettlement of claims and policy holders servicing. The regulation also provides for

payment of interest by insurer for delay in settlement of claims.

Solvency margins are to be maintained by the insurer so that they can be in a

position to meet their obligation towards the policyholder with respect to payment

of claims.

The Insurance Company has to clearly disclose the benefits, terms and condition

under the policy.

The advertisement issued by the insurer should not mislead the insuring public.

Proper grievance redress machinery should be set up in the head office and all the

other offices by the insurer.

If any complaints are received by the policyholder with respect to the servicesprovided by the insurer under the insurance contact, then the authority takes up

with the insurer.

Insurer has to maintain separate account related to the fund of Policyholder. The

funds of the policyholder should be retained within the country.

According to the new regime, Insurance companies will have to exposure to rural

and social sector.


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3.7. Critical Success factors:

Post Liberalization Insurance industry in India has become very competitive. With

private players entering into the India market making the market lot more competitive.

Insurance industry in India has become highly competitive with different companies and

individual agents competing against each other to gain higher market share. In order to

gain higher market share companies have to differentiate themselves from others.

Companies can differentiate themselves in the market by using a number of critical

success factors:

Product Quality:

One the most important factor that differentiates companies is by the quality of

product it offers. Quality of product instills a confidence in the customer that the

product offered by the company is better. Better the quality of product, more

successful is the company.

Developing relationships with the customer:

Insurance Industry is a highly competitive industry. In order to gain the market

share first priority is to be given to the customer. Range of product and services

should be designed to give the customer what he desires.

Market Segmentation:

Greater market segmentation should be done in which target audience should be

divided into homogenous groups and products and services should be targeted

towards such market. This would tie company to their client by customized

combination of coverage, easy payment plan, risk management advice and quick

claim handling.

Designing new strategies:

Insurance Industry cannot be satisfied with consolidation of their existing market,

but have to achieve future growth and penetration. Companies must focus on new

distribution channels, strengthening their existing point of services, direct contact

with their ultimate customer, refresh their marketing setup, new comers should

focus on tapping the market which is left unexploited by public sector companies.


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Shift towards Rural market:

Rural market is India is still uncovered by this sector. Insurance penetration can be

achieved by tapping the untapped rural market of India.

Motivating sales force:Sales force is one the major strength that the company has that could differentiate

them from their competitors. A good sales force can do wonders to the future of

the company, because of which a proper motivation of sales force is very

important for the company. Life Insurance Company should constantly involve in

motivating their sales force so that they can meet their target on time.

Use of technology:

Technology plays a very important role in the success of the company. Internet

based Life insurance will help companies to reduce time and transaction cost andalso improves quality of services to its customer.

3.8.

Domestic Economic Conditions:

Domestic economic conditions play a major role in growth or downfall of an Insurance

company, No matter how financially stable an insurer is; none is immune to the slow

economic growth. In an Indian economy double digit inflation is one the uncomfortable

factor and RBI which is the central bank of India has a huge task of controlling theinflation without hampering the economic growth. Trade off between Interest rates and

Inflation has been the core the business of the RBI and the past one year has been very

difficult for the RBI. In an attempt to manage inflation, RBI has been constantly raising

repo rate and reverse-repo rates every quarter but it has not succeeded in moderating

inflation. This simply implies that inflation is more of a supply side issue than a

monetary implication. The implications of this relatively high interest rates and high

inflation regime are unlikely to be positive for insurance industry. It would be difficult

for an Insurance industry to manage return expectations as they are likely to be high.

While competing with a fixed income product higher assured returns are required forhigh.

Interest rates in order to increase penetration. There may be some reductions in actual

growth rates, but Indians longterm fundamentals remain intact as life Insurance being

an industry with long time horizon, it would be able to tide over economic cycle.

Inflation on the other hand means lower disposal incomes in the hand of the consumer

leading to lower household savings which currently stands at 34.7%, though significantly

lower than china which is 50%.

3.9. Global Economic Environment:


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According to the Swiss Res newly appointed Economist, KurlKarl low interest rates

and euro debt crisis will prove to be a problem for insurance industry. According to Kurt

karl momentum of growth has been slowed down due to this two factors, but the only

bright spot according to him is the ongoing growth in the emerging market. HoweverKurl is lot more optimistic looking forward to 2013 forecasting a pick-up in investment

yield and premium in a modest improvement in economic conditions.

Political Development:

Political developments are the more serious threat in Europe and US. In

Europe this can lead to serious sovereign defaults and also exit from the euro

monetary union.

Emerging markets has been negatively impacted by faltering growth in the

developed economy. Also tighter monetary policies on the part of several

emerging economies also slowed down growth. Both global in-force and new business life insurance fell in 2011, but it again

recovered. According to the economist in order to return to the pre-crisis

profitability short- term factors like low investment returns, high hedging cost

and more onerous capital requirement. Life Insurance industrys capitalization

has improved markedly and it is in the better shape to cope up with the future

challenges.

Because of some Regulatory changes in China and India, coming two years

will see life insurance business in emerging market returning to its long term

trend of around 8%.

3.10.

Demand Drivers:

Insurance industry in India has become lot more competitive in recent years. With

private players entering into the market, competition level has significantly increased

with more private players trying to gain more market share. Some of the demand drivers

that give change

to the smaller companies to compete against giants like Life Insurance Corporation of

India Ltd (LIC) which has 70% market share are:

Rural market:

According to the Mckinsey report, titled India Insurance 2012: Fortune Favors

the Bold, finds that the sector is still in a dissident with different players in

different stage of development and market presence. According to the

Mckinseys report the rural penetration is likely to increase from about 25% at

present to around 35-40% in 2012. With 65% of the Life insurance coming

from rich urban class, smaller companies can look for rural and low incomegroup as potential demand driver.


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Product Mix;

A better product mix would also drive growth of insurance companies, with

companies making a move to lower the share of single premium products.

Life insurance product can also fill the gap that is created by growing demand

for investment products and long-term savings.

4. COMPANY ANALYSIS

4.1 Introduction:

IDBI federal is a joint venture of IDBI Bank, Indias premier development and

commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a

multinational insurance giant based out of Europe. In this venture IDBI owns 48% equity

while federal bank and Ageas own 26% equity each. IDBI federal endeavors to deliver

the product that provides value and convenience to the customer. Through a continuous

process of innovation in product and service delivery we intend to deliver world-class

wealth management, protection and retirement solution to the Indian customer. IDBI

federal started in March 2008 and within few months of inception it became one of the

fastest growing new insurance companies to garner Rs 100 Cr. in premium. The company

offers its services through a vast nationwide network across the branches of IDBI bank

and Federal Bank in addition to sizeable network of advisors and partners. As on 31st

March 2012 Company has issued over 3.76 lakh policies with over 21,578 Cr. in sum

assured.

Vision:

To be the leader provider of the wealth management, protection and retirement

solution that meets the need of the customer.

Mission:

1. To continue strive to enhance customer experience through innovative productoffering, dedicated relationship management and superior service while striving to

interact with our customer in most convenient and cost effective way.

2. To be transparent in the way we deal with our customer and act with integrity.

3. To invest in and build quality human capital in order to achieve our mission.

Values:

1. Transparency:

Crystal clear communication to our partners and stake holders

2. Value to customer:

A product and service offering in which customer perceive value


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3. Rock solid and Delivery on promise:

This translates into being financially strong, operationally robust and having

clarity in claims.

4.

Customer friendly:Advice and support in working with customers and partners.

5. Profit to stakeholders:

Balance the interest of the customers, partners, employees and community at

large

4.2 Insurance Value Chain:

4.3 Sales Organization Structure:


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4.4 Business Segmentation:

Businesses Segment can be defined as technique used by the companies to separate

business to reflect key develop, sell and develop differences. Segmentation is basically

done by grouping customer according to homogenous attributes. Segmentation of

business allows companies to focus its marketing where it is most productive. IDBI

federal has done its business segmentation by introducing different range of productsinto the market.

For eg: childsurance, Healthsurance etc. that allows IDBI to very examine very closely

that how individual product is performing and it also helps to focus its marketing on

product that is most productive.

4.5

Products and Services Offered by IDBI Federal Life Insurance:

Childsurance:


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IDBI federals childsuranceis for the parents who are looking to make their

childs future shock-proof is its powerful insurance benefits. Childsurance

allows to you to protect your child plan with triple insurance benefits so that

your wealth-building plan remains unaffected by unforeseen events and your

child future remains secure.

Healthsurance:

IDBI federal Healthsurance Hospitalization and surgical plan offers host of

features and benefits that is designed to help the customers to manage extra

burden that comes with hospitalization.

Lifesurance:

IDBI feral Lifesurance Plan is a saving insurance plan that helps you to safeguard

your wealth at the same time will present better opportunity to earning better

return.

Bondsurance:


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Bondsurance is designed for customer looking for guaranteed returns which will

not get affected by financial market conditions. It offers guaranteed return on

investment along with life insurance cover.

Wealthsurance:

Wealthsurance plan enables the policyholder to save and build wealth to meet

their financial goals. Wealthsurance plan comes up with a wide range of 13

investment option and 7 insurance benefits with low charge structure and

unmatched flexibility.

Homesurance:

Homesurance protection plan provides full insurance cover for properties under

construction, thus ensuring that beneficiary gets the full sanctioned amount in

case of an unfortunate event. It also has an innovative fixed cover for those who

would prepay their loans early.

Incomesurance:


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Knowing customer helped us to combine the Endowment & Money Back plans

into a single plan. It linked the returns to the G-sec rates, transparently declared

by the government. Also, the Guaranteed Annual Payout and other benefits upon

death are tax- free under Sec 10(10D).

Termsurance:

Teramsurance protection plan of IDBI federal offers unique increasing cover

option that can automatically increase the cover every year without increasing

the premium.

4.6 Promotional Practices:

IDBI federal Life Insurance Co Ltd is been involved in number of promotional

practices. IDBI uses different modes of advertisements for promoting their products.

Following are the different modes through which IDBI federal promotes its products:

Print Media:

Print media is one the most reliable, cost effective and easy mode ofadvertisement to reach the masses. Main ways of advertising via print media are:

1.

Newspaper:

Paper Pages Cost (in Rs.)

The Economic

Times

3rd 320 per sq. cm

Times of India 3r 320 per sq. cm

The Hindu 1st 400 per sq. cm


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2. Pamphlets:

Pamphlets are distributed across India at least 5 times in a month without any

cost. This distribution is mainly done to create maximum awareness about theproducts/services.

3. Magazines:

There is no specific magazine in which advertisement is given. Magazines are

selected based on their sales and reputation like outlook , money etc.

Television:

Television is another mode of advertisement used by IDBI federal Life Insurance

Co. Ltd. Like print media television is also very popular mode of advertisementwhich easily grasps attention of masses. Mainly the advertisements of IDBI

federal are shown on Cricket channels, star channels because of their popularity.

Main promotion is done in the month of February and March to:

Highlight tax benefits

To combat competition as all the competitor insurance companies would

advertise during this time at great frequency.

Also the companies will soon start displaying their advertisement on satellite TV

like Sun network etc.

Following are the cost associate with running the TVC:

Region/ Channel Cost (in Rs.) Duration/ SLOT

Tamil Nadu 45,000 10 seconds

Local Channels 6000-8000 10 seconds

Cricket channels 60,000 onwards 10 seconds

Word of Mouth:A strong network of distributors and parent advisors also helps a lot in promoting

products/ services of IDBI federal by Word of mouth.


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Online:

A viral campaign also runs on the internet by wherein flash videos of working of

product are explained in a very humorous manner. This video is shown onwww.bosskaboss.com

Hoarding:As of now, total number of Hoardings which are put up in Hyderabad regioncounts to be 17.

Cost (in Rs.) Time Lease

4,00,000 3 months

Local Events:Some are also created in and out of the city by IDBI federal to create moreawareness about the IDBI federal and free gifts were given wherein local

marketing people interact with the prospects and try to gauge their financial needs

and respectively pitch the products.

The overall costs associated with such an events totals to Rs. 2, 00,000 pm. Such

events are generally conducted in apartments and schools etc.

4.7

Business Life Cycle:

Business life cycle is referred as various stages of development of a small business.

Every stage has its own unique characteristics and focus on. There are five differentstages of business Life Cycle:
http://www.bosskaboss.com/http://www.bosskaboss.com/http://www.bosskaboss.com/


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1.

Stage 0- The Aspirational Stage:


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Stage 0 is referred as the aspiration stage or can also be termed as start-up stage,

this is the starting stage of business where people start their business.

2. Stage 1- The Entry Stage:

Stage 1 is the entry stage where people have decided to start their business and

they work actively building market and offers. IDBI federal was at entry stage onMarch 2008 when it started its operations.

3. Stage 2- The Growth Stage:

Stage 2 is the growth stage. The entrepreneurs in the growth stage have a business

plan and are growing their revenues by meeting new clients and customers. IDBI

federal being started in March 2008 is in its Growth stage. The company is

growing very rapidly by becoming fastest growing new insurance company to

garner Rs. 100 cr. in premium.

4. Stage 3-The Crucible Stage:

Stage 3 is the Crucible stage or the maturity stage. In this stage the entrepreneurswork at full stream but the demands for their goods and services exceed their

ability to meet it.

5. Stage 4- The Cruise Stage:

Stage 4 is the cruise stage or can also be termed as the decline stage. In this stage

the entrepreneurs have to identify the bottlenecks that arrived at stage 3 and try to

remove them. They have the necessary team that allows them to focus on their

core competencies.

4.8

Competitor Analysis:Competitor analysis in marketing and strategic management is a judgment of strength

and weakness of the competitors. Companies generally do this analysis to understand

the strength and weakness of their current and potential competitors. This analysis

provides both offensive and defensive strategy to identify both opportunity and threats.

IDBI federal Life Insurance is one of emerging insurance company. It is one of the few

companies that have shown rapid growth since the day of its inception. In order to gain

higher market Share Company has to understand its competitors that is their strength

and weakness .Competitor analysis will help IDBI to understand strength and weakness

of their competitors. This analysis will help IDBI to come up with offensive ordefensive strategy to identify both opportunity and threats.

Some of the main competitors of IDBI federal are:

1. Life Insurance Corporation of India (LIC)

2. ICICI prudential

3. SBI Life

4. HDFC standard Life

5. Bajaj Alliance

Life Insurance Corporation of India ( LIC):


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LIC was founded in 1956 with the merger of 243 insurance company and

provident societies. It is the largest insurance and investment company in India. It

is a state owned with 100% stake owned by government of India.

Products offered by LIC are:

1. Jeevan Arogya plan:

Jeevan arogya plan is a unique non-linked health insurance plan which

provides health insurance against certain specified health risk. LICs jeevan

arogya plan is a direct competition to IDBIs Healthsurance plan.

2. Bima Account plan:

Under this plan the premiums payed by the customer after deduction of all

charges, will be credited to the policyholders account maintained separately for

each policyholder. If all premiums are paid the amount held in policyholders

account will earn an annual interest rate of 6% p.a

3. Endowment plan:

Its a unit linked endowment plan which offers investment cum insurance

cover during the term of the policy.

4. Children Plans

5. Plan for Handicapped Dependents

6. Endowment assurance plans

7. Plans for high worth Individual

8.

Money Back Plans9. Special Money Back Plan for Women

10.Whole Life Plans

11.Term assurance plans

12. Joint Life Plan

.1

SWOT Analysis of LIC:

SWOT Analysis is a strategic planning method used to analyze strength,

weakness, opportunity and threat involved in a business or a project.1. Strength:

LIC is Indias largest state-owned company and also Indias largest

investors

LIC has over 2000 branches all across India and more than 1, 00,000

agents.

LIC is the largest investor in India with largest fund base.

LIC has over 1, 15,000 employees across India.

LIC is the 8thmost trusted brand of India.


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LIC has subsidiaries like LIC card services Ltd, LIC Housing finance

Ltd, LIC Nomura mutual fund.

2. Weakness:

It lacks imagination since it has an image of a government company

Red tape, bureaucracy causes the problem since it is a governmentcompany.

During the economic crises managing a he workforce is a lot of

burden.

ICICI Prudential:ICICI prudential Life Insurance Company is the joint venture of ICICI bank and

Prudential Plc, one of the leading financial service groups in UK.

Products offered by ICICI prudential:

1.

ICICI pru care:

It is an insurance plan that protects familys future and ensures they lead their

life comfortably.

2. Save n Protect

3.

Cash back

4.

Home Assure5. Life Guard

6. ICICI pru iprotect

7.

Smartkid Regular premium

8. ICICI pru Elite Life

9.

Group term insurance plan

10.Group Gratuity plan

11.Annuity solution

12. ICICI pru life link pension SP

13.

Forever Life14.Immediate annuity

15.ICICI pru heath saver

16.ICICI pru Hospital care

17.

ICICI pru crisis cover

18.ICICI pru Mediassure

SWOT Analysis of ICICI prudential:


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5.2 ORGANIZATIONAL STRUCTURE

SALES ORGANIZATIONAL STRUCTURE


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HUMAN RESOURCE ORGANIZATIONAL STRUCTURE


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There are no Zonal Heads in the Human Resource Department the area Human

Resource executive only acts as the Human Resource Manager and reports all the

activities to the Head Office that is in MUMBAI.

OPERATIONS ORGANIZATIONAL STRUCTURE


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The Zonal Managers are supported by Branch Support Executives and the

Operations department is present only in the Head Office which is in MUMBAI.

6.INTRODUCTION TO TRAINING AND DEVELOPMENT

6.1 DEFINITION OF TRAINING :

Training is a systematic development of knowledge, skills and attitudes required by an

individual to perform adequately a given task or job. Training refers to efforts that help

enhance employee skills for carrying out the present job. According to Edwin & Flippo ,

training is the act of increasing knowledge and skills of an employee for doing a

particular job.


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Training and developmentis the field which is concerned with organizational activity

aimed at bettering the performance of individuals and groups in organizational settings. It

has been known by several names, including human resource development ,

and learning and development.

Training and development (T&D) encompasses three main activities: training, education,

and development.

Training and Development is a subsystem of an organization.

It ensures that randomness is reduced and learning or behavioral change takes place in

structured format.

Trainingis an educational process. People can learn new information, re-learn and

reinforce existing knowledge and skills, and most importantly have time to think and

consider what new options can help them improve their effectiveness at work.

Effective trainings convey relevant and useful information that inform participants and

develop skills and behaviors that can be transferred back to the workplace.

The goal of training is to create an impact that lasts beyond the end time of the training

itself. The focus is on creating specific action steps and commitments that focus peoples

attention on incorporating their new skills and ideas back at work.

Training can be offered as skill development for individuals and groups. In general,

trainings involve presentation and learning of content as a means for enhancing skill

development and improving workplace behaviors.

6.2 What is Training?

Train ing is the act of increasing the knowledge of an employee for doing a particular

Job.

Training is process of learning a sequence of programmed behavior. It is the applicationof knowledge. It gives people an awareness of the rules and procedures to guide their

behaviors. It attempts to improve their performance on the current job and prepares them

for an intended job.

What is Development?


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Development is a related process. It covers not only those activities which improve job

performance but also those which bring about growth of the personality. Training a

person for a bigger and higher job is development, this process includes not onlyimparting skills but also certain mental and personality attributes.

6.3 Needs for training :

To improve the current job performance of employees.

To familiarize employees with the policies and procedures of the organization.

To enhance the creativity, adaptability and versatility of the employees and to

facilitate learning at the work place.

To prepare employees for future job.

To change the skills, knowledge and attitude of the employees on a permanent

basis.

To help employees manage their careers.

To maintain knowledgeable work force. To gain competitive advantage through a knowledgeable work force.

To promote organizational growth through individual growth.

6.4 Areas of training :

Company policies and procedures.

Product based training.

Skill based training.

Problem solving training.

Training and development :

1. Deals with difficult behaviors

2. Critical conversations (strategies that work)

3.

Using emotional intelligence at work

4. Customer service for organizational success

5. Managing stress before it manages you

6. Goal setting for success

7. Using strategy to manage change

8.

Building Positive work place


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6.5 TRADITIONAL AND MODERN APPROACH OF TRAINING AND

DEVLOPMENT

Traditi onal ApproachMost of the organizations before never used to believe in

training. They were holding the traditional view that managers are born and not made.

There were also some views that training is a very costly affair and not worth.

Organizations used to believe more in executive pinching. But now the scenario seems to

be changing.

The Modern approachof training and developmentis that Indian Organizations have

realized the importance of corporate training. Training is now considered as more ofretention tool than a cost. The training system in Indian Industry has been changed to

create a smarter workforce and yield the best results

The stakeholders in training and development are categorized into several

classes.

Thesponsorsof training and development aresenior managers.

The clientsof training and development are business planners. Line managers are responsible for coaching, resources, and performance.

Theparticipantsare those who actually undergo the processes.

Thefacilitatorsare Human Resource Management staff.

Theprovidersare specialists in the field.

Each of these groups has its own agenda and motivations, which sometimes

conflict with the agendas and motivations of the others.

6.6 OBJECTIVE OF TRAINING:

To understand the environment of the company

To familiarize with the type of work


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To understand the environment of the company

To familiarize with the type of work

To get the insight knowledge of the company

To understand the operation of banks

To sell the companys product

To learn various marketing & financial technicalities

To understand various financial products

To understand the people and the market

7 . TRAINING AND DEVELOPMENT : IDBI FEDERAL LIFE INSURANCE Co.

Ltd.

7.1 Supportive management system : (Brief about IDBI Federal)

1. Infrastructure: Infrastructure pertains to organization structure and patterns of

autonomy. Patterns of autonomy include designations of responsibility and accompanying

measurement methods. IDBI Fortis was formed by the joint venture between three

leading financial conglomerates Indias premier development and commercial bank,IDBI Bank, one of Indias leading private sector banks, Federal Bank and Europes

banking and insurance giant, Fortis, each of which enjoys a significant status in their

respective business segments. In this venture, IDBI Bank owns 48% equity while Federal

Bank and Fortis own 26% equity each. IDBI Fortis is headed by Mr. G.V. Nageshwara

Rao. Since its inception in March 2008, IDBI Fortis is marching strongly into the Indian


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Insurance market with 150 branches and having Bancassurance facilities with IDBI and

Federal bank. Its flagship product Wealthsurance is making all heads turn with its unique

benefits of 11 riders combined in a single product.

2. Management Style and culture: Managerial styles can be of 2 types: Autocratic

style(external style) and Participative style(internal style). Corporate culture consists of

shared values, common perceptions, and common decision premises applied by

organizational participants to the activities and problems of the organization. At IDBI

Fortis, the managerial style is Participativein nature.

Wealthsurance advisors and their respective managers from different branches participate

to understand and satisfy a potential and existing customer. The culture at the

organization is also very encouraging. The vision statement says that IDBI Fortis wants to

be a leading provider of wealth management, protection and retirement solutionsthat meets the needs of our customers and adds value to their lives.

For achieving this objective, it has values like Transparency, Value to customers, Rocksolid delivery to promise, Customer friendly and profit to shareholders impregnated into

its management culture. For not achieving the target set for the Wealthsurance advisors,

the management style is constructive and not punitive. Employees are given motivation

by their seniors on how to strike a chord with their customers and illustrate the benefits of

the Wealthsurance plan to its customers.

3. Rewards system: Rewards are the incentives to the value contributions of individuals

to the organization. Incentives can be both tangible and non tangible and include

monetary compensation as well as non- monetary compensation such as organizational

purpose, desirable associations, acceptance, status, increased autonomy, pride of

workmanship, and desirable physical conditions. Informal rewards are stature oriented.

These rewards are bestowed upon the key team members within the informal system.

They are usually more intrinsic in nature. At IDBI Fortis the rewards system plays a

major role in motivating employees to attain their goal. In my SIP days, the company

glorified the rewards system and encouraged us to attain our goals.

Programs like Quick Starter king/Queen, Hero March, Super April, Best performer and

Best Project augmented the morale of the interns. Monetary compensation in the form of

commission and non monetary compensation (Stature oriented) like Best performer andBest project really gave us the drive to work in for the company.

4. Coordination and Integration: Coordination was proper between the different

functional groups at IDBI Fortis. The Training and development team and the Sales and

Marketing team regularly coordinated to provide all informations pertaining to the

company and the products to the students. The company was well integrated on how to

approach its customers. Its 3 pronged strategy to create a personalized plan for its


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customers helped to integrate the core values of the company with the working of the

Summer Interns.

5. Control: Like every other Insurance company in India, IDBI Fortis was controlled in

its operations by its parent companies and the Insurance Regulatory development

authority (IRDA) externally. Employees in the organization were controlled by Rewardssystem which was promotions and a constructive approach was undertaken to identify and

help the under- performers. As Summer Interns, we were also controlled by the level of

our performance.

As our performance increased which was selling of more no. of policies, we were given

more marks as allocated to the company guide and exceptional performance were assuredPPO. We were also controlled by the fact that as we were the brand ambassadors of the

company when we came across customers as so needed to work with the customer

adhering to full principles of TCF (treating customers fairly)

Training is must for every individual when he enters into the organization. Even

though the candidate has experience he also should get training. Why because the

organization culture, values and beliefs are different from one organization to other.Thats why the training program plays a key role in every organization.

7.2 Training program following by IDBI Fortis is different at various levels.

Training program for sales managers:


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The training program duration is 1520 days

They get training on product knowledge.

Motivating and encouraging Advisors

Training program for Advisors:

The training program duration is 1520 day

They get training on product knowledge

How to convince the people.

Objection Handling

Training program for operations executives:

They will get training on customer database files

Taking care of the customer files

Well trained in product information and documentation

Renewals will be informed periodically.

Required skills for employees in IDBI Fortis:

Interpersonal skills

Excellent communication skills

Understanding nature

Aggressiveness

Convincing skills

Ability to motivate others

Interest to learn

7.3 CAREERSURANCETM:

At IDBI Fortis Life Insurance, we strive to provide a greater value to our customers. Ouremployees are also our internal customers. It becomes imperative that we garner and

nurture a high-quality team that is dedicated to the common cause. We invest in this team

and provide them with exciting opportunities from time to time that can make them lookat insurance as a long term career. Let's address the myths about choosing a career inLife Insurance, below:

# Myth: People prefer other investments over life insurance.

# Fact: While insurance is preferred over mutual funds and direct equities, majority of

Indians still invest in post office and bank deposits. Wealthsurance is an

innovative look at insurance, it comes with a unique proposition, that

delivers greater value than other investments.

# Myth: The Company sets high expectations but offers no support


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3. Enhance Training Effectiveness:

- Collecting feedback received from Trainings and forwarding it to the HO

Team.

- Maintaining MIS for trainings conducted.

- Identifying needs and helping in developing relevant training modules to

ensure effectiveness.

4. Be a change agent:

- Initiate a positive and healthy culture change in the organization to ensure

that trainees look forward to attending training sessions.

TRAINING SESSIONS ON CUSTOMER PROFILES- Type of Investors


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1.Safe investor- Secure Investment Options

a.

Safety

b. Gauranteed Returns.

c. Flexibility to choose term of the plan.

d.

Liquidation of entire investment after five years.e. Option to generate double returns with little exposure to equity.f. Money invested in safe instruments like govt. bonds and term deposits.

i.Plans to be offered:

a)Wealthsurance with Gauranteed Return Fund.

b)Wealthsurance with Dynamic Gauranteed fund.c)

Incomesurance.

d)Incomesurance Endowment and Moneyback Plan.

e)Termsurance.

2.Umbrella Investor - Diverse Investment Options

a.

Hedging against market related risks.

b.

Long term and short term planning possible.

c. Expert fund manages portfolio of the customer through asset allocator fund.

d. Partial withdraw of money available after 3years.

e. Liquidation of entire investment after 5years.1) Plans to be offered:

a)Wealthsurance Equity Growth Fund(50%) + Monthly Gauranteed

Interest Fund(50%).

b)WealthsuranceEquity gowth fung + Income Fund.

c)WealthsuranceAsset allocator Fund (Moderate).

d)Incomesurance .

3.Active InvestorDynamic Investment Options

a. Diversified Portfolio.

b. Fund management by experts.

c. Long term returns.

d.

Returns as per investors risk appetite and investment time horizon.e. Three risk return options availableaggressive, moderate and cautious.

f. Partial withdraw of money available after 3years.

g. Liquidation of entire investment after 5years.

h. Save tax at the time of investment and also at withdrawal.I . Plans to be offered :

a) WealthsuranceEquity Growth Fund/ Nifty Index Fund/ Mid cap Fund.

b) WealthsuranceAsset allocator fund (Aggressive/Moderate).

c) WealthsuranceDo it yourself (Choose your own fund combination andactively manage with unlimited free switching and redirection.)


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4.Focused InvestorGoal Driven Investment Options.

a.

Providing best quality education to children.

b. Cost of luxurious marriage ceremony to children.

c. Providing for a comfortable retired life for self and spouse.

d.

Purchase of home for the familye. Plan for the future with added convinience and flexibility.f. Availing market linked returns to meet the increasing education costs or any other

dream.

g. Flexible withdrawal options to support financial needs at key milestones.

h. Save tax at the time of maturity as well as investment.i.

Flexibilty to continue the account for 5 more years even after the maturity.

I . Plans to be offered.

a) Incomesurance

b) Wealthsurance

c)

Retiresurance

5.Aggressive investorMarket based investment options.

a. Booking profits in growing market.

b. Investing in fallen market to get good picks.

c. Shifting the funds to safer instruments during high votality.d. Equity growth fund.

e. Midcap fund.

f.

FMC low of 1.35%.

g. Dynamic gauranteed fund.

h. Systemize gauranteed investments automatically moving into equity or vice versa

through auto switcher facility.

i. Facility to partially withdraw money available after 3 years.

j. Facility to liquidate entire investment after 5years.

k. Save tax at the time of investment and also at withdrawal.I. Plans to be offered :

a)Wealthsurance (Equity growth fund/ Nifty fund / midcap fund / dynamic

gauranteed fund) : Do it yourself, choose your own fund and

combination.b)Wealthsurance (aggressive asset allocator fund) let the fund manager

manage the portfolio avtively for no extra cost and optimize your returns.

6. Wealth protector

a. Guaranteed Return Funds.

Guaranteed return fund gives you written guarantee of minimum growth for 5years/10years

Money is invested in short term and long term safe bonds.

On maturity you can redeem units at the guaranteed NAV or prevailing NAVwhichever is higher.


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You can enter the fund at the available NAV on the investment date.

7.4 Training Reward PointTrainer to Employee :

1.

Quick startSelf Learning Moduleso

Period is 2days.o

Chapters:

Insurance sector, i.e., current insurance Environment.

IRDA- Detail study, acts/regulations, sections for insurance.

Industry introduction, i.e., about IDBI Federal Life Insurance Co.Ltd.

Organizational structure or hierarchy.

Brief about major competitors in the sector.

My time Credit

Motivational talks by the management Level people. Credit Point system

Quick Starter - 10 points

Silver Starter - 30 points

Gold Starter - 30 points

Platinum Starter - 30 points

Government Bonds, Securities and Interest Rates.

Sales2 policies to be closed.

2.Product Training

oPeriod is 2 days.

oIncludes basic idea about the Life Insurance Terminologies.

Sum Assured - The assured amount, to the person, to be paid.

ConsiderationPremium.

Insurer/ProposerThe person who is sponsoring the policy.

InsuredThe person whose life is insured or the policy is taken up.

ContractEnforceable agreement between the Insurer and the Insured.

Insurable InterestLoss due to the persons death.Husband-Wife, Wife-Husband, Father-Child,

Creditor-Debtor, Employer-Employee.Utmost Good FaithThe mutual trust between the insurer and

the insured.

PremiumMortality, Investment, Contingency/Death Benefit, Expense.

NomineeThe person who shall get the death benefit if anycontingency occurs to the insured person.

o Detailed Chapters on:

IncomesuranceTM Endowment & Money Back Plan. WealthsuranceTM Brochure.


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HomesuranceTM Protections Plan Brochure.

HomesuranceTM Plan Brochure.

BondsuranceTM Brochure.

TermsuranceTM Grameen Suraksha Brochure.

TermsuranceTM Protection Plan Brochure.

TermsuranceTM Grameen Bachat Yojana.

Homesurance TM Plan(single premium).

HomesuranceTM Plan(regular premium).

TermsuranceTMpremium Insurance Plan.

7.5 Process Training:

o Period is 1 day.

o Online Console Training

Tracking NAVNet Asset Value.

Premium Calculators And Tools.

Paying Online.o

Filling up the Forms.

o

Basic knowledge about the Medical Reports.

Training on AML Guidelines and KYC :

Reserve Bank of India has formulated a new set of guidelines KNOW YOURCUSTOMER Guidelines and ANTI MONEY LAUNDERING STANDARDS vide

their circular dated 26thNovember 2004. RBI has advised the banks to formulate a

policy and put it in place, duly approved by the Boards.


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Definition of KYCKnow Your Customer.

KYC is a term used for customer identification process.

It involves making reasonable efforts to determine true identity and beneficialownership of accounts, source of funds, the nature of customers business,

reasonableness of operations in the account in relation to the customers business,etc.

It turn helps the banks to manage their risks prudently.

The objective of the KYC guidelines is to prevent banks being used, intentionallyor unintentionally by criminal elements for money laundering.

KYC has two components - Identity and Address. While identity remains the same,the address may change and hence the banks are required to periodically update

their records

Definition of Money Laundering:

Section 3 of the Prevention of Money Laundering (PML) Act 2002 has defined theoffence of money laundering as under:

Whosoever directly or indirectly attempts to indulge or knowingly assists or

knowingly is a party or is actually involved in any process or activity connected

with the proceeds of crime and projecting it as untainted property shall be guilty of

offence of money laundering.

Money Laundering and KYC perception :

Banks are exposed to the following risks which arise out of Money Laundering Activities

and non-adherence of KYC standards.

Reputation RiskRisk of loss due to severe impact in banks reputation. This maybe of particular concern given the nature of the banks business, which requires the

confidence of depositors, creditors and the general market place.

Compliance Risk Risk of loss due to failure of compliance with key regulators

governing the banks operations.

Operational RiskRisk of loss resulting from inadequate or failed internal process,people and systems, or from external events.

Legal Risk Risk of loss to any legal action the bank or its staff may face due tofailure to comply with the law.

Investment Basics:

What is Investment?


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The money you earn is partly spent and the rest saved for meeting future expenses.

Instead of keeping the savings idle you may like to use savings in order to get return on it

in the future. This is called Investment.

Why should one invest?

One needs to invest to :

Earn return on your idle resources.

Generate a specified sum of money for a specific goal in life.

Make a provision for an uncertain future.

When to start Investing?

The sooner one starts Investing the better. By investing early you allow investments moreto grow, whereby the concept of compounding increases your income, by accumulating

the principal and the interest or dividend earned on it, year after year.

What is the Regulatory Body for Mutual Funds?

Securities Exchange Board of India(SEBI) is the regulatory body for all the mutual funds.

All the mutual funds must get registered with SEBI.

What are the benefits of investing in Mutual Funds?

There are several benefits from investing in a Mutual Fund:

Small Investments : Mutual funds help you to reap the benefit of returns by a

portfolio spread across a wide spectrum of companies with small investments.

Professional Fund Management : Professionals having considerable expertise,

experience and resources manage the pool of money collected by a mutual fund. Theythoroughly analyze the markets and economy to pick good investment opportunities.

Spreading Risk: An investor with limited funds might be able to invest in only oneor two stocks, thus increasing his or her risk. However, a mutual fund will spread its

risk by investing a number of sound stocks or bonds. A fund normally invests in

companies across a wide range of industries, so the risk is diversified.

Transparency : Mutual Funds regularly provide investors with information on the

value of their investments.

Choice:The large amount of Mutual Funds offer the investor a wide variety to choosefrom. An investor can pick up a scheme depending upon his risk/return profile.

Regulations:All the mutual funds are registered with SEBI and they function withinthe provisions of strict regulation designed to protect the interest of the investor.


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What is NAV?

NAV or Net Asset Value of the fund is the cumulative market value of the assets of

the fund net of its liabilities. NAV per unit is simply the net value of assets divided by

the number of units outstanding. Buying and selling into funds is done on the basis of

NAV-related prices.

The NAV of a mutual fund are required to be published in newspapers. The NAV of

an open end scheme should be disclosed on a daily basis and the NAV of a close end

scheme should be disclosed at least on a weekly basis.

What is Entry/Exit Load?

A load is charge, which the mutual fund may collect on entry and/or exit from a fund.A load is levied to cover the up-front cost incurred by the mutual fund for selling the

fund. It also covers one time processing costs.

Some funds do not charge any entry or exit load. These funds are referred to as No

Load Fund. Funds usually charge an entry load ranging 1.00% and 2.00%. Exit loads

vary between 0.25% and 2.00%.

Trainer Led Sessions:

This program is led by the Trainer and the Assistant Manager HR, This program is

exclusively done for the trainees to get into the business immediately.

There are total Three Steps in this process:

1.Welcome: The employees are put into a process with respect to their profile as co-

ordinate with the Recruiting team. The process may be either of the following:


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a) Sales manager ,

b) Tele caller,

c) Back office operator, andd) Database administrator.

2.Basic of Sales Process:

a) Market IntelligenceMarket Intelligence within this context is information relating

to building network, that suit tour requirement within a specific geographical

location. It is crucial that every employee develop a process by which this type of

network is developed. This is done in the hope that an employee may discoverclients who can generate areas for profit. Within the process of the collection of this

information it is important to discover:

The details of the key contacts and decision makers who can be useful.

Potential customers within your area who may generate profit on a regular basis.

b)

Regular Time to Develop Leads: The most Important point to make about time isthat a long term plan is crucial to ensure a sustained and continuous approach to

marketing. However, one day per week is often sufficient to handle these leads and

this day can often be divided into blocks of half-day at a time, thus maximizing theirpotential.

Below are found some typical figures for the volumes of leads that can be handed

and the results when using the above mentioned strategy:

Up to 25 separate contacts/companies per day.

Around 8-10 new leads, 15+ recalls.

Approximately 10-12+ new letters/emails out per day.

Between 1-2 appointments agreed.

Up to 150+ contacts under development at any one time.

Generally 3-5 targeted potential HNI clients per month.

Generally one strong new connection every 6-7weeks.

c) Executive Support:The management level employees support the sales and marketing areas of the

company. One of the best ways in which they do this is they make sure that they are

flexible in the time that they allocate for appointments with potential clients.

d) Encouragement of sales input across the Company :In a firm it is important to remember that the sales and marketing areas is on the

only source of new prospects for the company. Instead the opposite is true because


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in principle, every member of the company can come across new prospects and

projects of interest through the local press, local gossip or local knowledge, business

contacts and personal networks.

These projects are often very valuable because they are based upon personal connections

with employees with the firm. This being the case a system to encourage and reward suchinput is put in place. This system is managed properly at a minimal cost to the company.

3.Product Refresher:

A quick go through about the products/plans offered by IDBI Federal Life Insurance Co.

Ltd. The products include:

a)

IncomesuranceTM Endowment & Money Back Plan.

b) WealthsuranceTM Brochure.

c)

HomesuranceTM

Protection Plan Brochure.d) HomesuranceTM Plan Brochure.

e) InsuranceBasketTM Brochure.

f) BondsuranceTM Brochure.g)

TermsuranceTM Grameen Suraksha Brochure.

h)

TermsuranceTM Protection Plan Brochure.

i) RetiresuranceTM Brochure.

j) IncomesuranceTM Immediate Annuity.

MDPManagement Development Program

MDP is to build on the core selling skills and to introduce more advanced sales concepts.

To analyze in depth how behaviour impacts on the way customers buy and to establish

ways of identifying these customer preferences thereby converting them intoopportunities to sell. This program is for Management Level employees, who are

responsible for major accounts, or who would benefit from further skill development.

This program also enables delegates to have a clear understanding of Sales Managementrole and how to become more effective managers. The program is suitable for

experienced Managers, as well as those who have been or are about to be, promoted intoExecutive Level Management

Program Objective :

Access the buying preferences of the customer.

List effective questions that can be used to develop an understanding of the

customers motivational drivers and aspirations. Demonstrate how to build rapport with a wide variety of customers.


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Describe how to match product solutions to customers individual needs andbuying styles.

Demonstrate how to gain commitment to the next step.

Describe how to get effective results from a sales team using sales plan and target

techniques.

Explain how to prepare a successful sales plan.

Describe the recruitment and selection process for staff.

Describe an effective interview strategy.

Explain how to implement a seccessful training plan for the team.

List the ways to run effective meetings.

Describe how to negotiate to a win/win situation.

List the skills needed to tackle problems and make decisions.

Explain the rewards and benefits of team building.

List the skills required for effective communication.

Describe ways to improve performance appraisal skills. Describe the techniques to improve presentation skills.

Evaluation :

Evaluation table is as below:Credit sessions reward points will be given by trainerconducting the specific sessions.

Sl.No Desposit Sessions Training Reward Points

Self Learning Modules

01. Quick Start 10

02. Process Training 10

03. Product Training 10

04. AML Guidelines and KYC 20


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05. Investment Basics 20

Trainer Led Sessions

06. Get Set Go 20

07. ABCD of Closing 10

08. MDP 20

Sales

09. Quick Starter 10

10. Silver Starter 30

11. Gold Starter 30

12. Platinum Starter 30

Awards and Functions :

Best trainee scoring maximum marks is awarded with a Certificate and aMedal/Trophy. A function is organised to celebrate the event.

After the completion of each starter, every employee is given a certificate and a

Medal/Trophy.

Training Reward PointEmployee to Distributor

Training given to the Distributor

Investment Basics and Taxation :

Life Insurance and retirement plans are out of the most effective ways of saving

taxes.

Life Insurance Plans and certain types of annuity plans are eligible for deduction

under section 80C.

Specified pension Plans are eligible for a deduction under sectionb 80CC.

The contributions/payments made towards the life insurance plans and

annuity/pension plans are eligible for an overall tax deduction of Rs 1,00,000/-.


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Health insurance plans/Riders are seperately eligible for deduction under section80D.

The proceeds or withdrawals from Life Insurance Policies are exempt under Section10(10D), subject to norms prescribed in that section.

AML Guidelines and KYC Norms.

Definition of KYCKnow your Customer.

Definition of Money Laundering.

Money Laundering and KYC perceptions.

Product Training

Knowledge about all the Insurance Products offered by IDBI Federal is given to the

distributors.

ABCD of Closing

Lead

Calling

Appointment Explanation

Documentation

Pick-up

Closing

Log-in

Issuance

Awards and Functions

Best Distributors scoring maximum premium is awarded with a certificate and

Medal/Trophy. A function is organised to celebrate the event. After the completion of each starter, every employee is given a certificate and a

Medal/Trophy.


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8. SWOT ANALYSIS OF IDBI

STRENGTHS

IDBI Federal is a private Insurance Company having stake of IDBI Bank.

IDBI Federal offers ULIP plan Wealthsurance with increased returns.

Good place to work.

Lower response time with efficient and effective service.

Dedicated workforce aiming at making a long term career in the field.

Strong and well spread network of qualified intermediaries and sales person.

Large pool of technically skilled manpower with in-depth knowledge and

understanding of the market.

WEAKNESSES

Less popularity of IDBI Federal in villages as well as in urban areas due to thereason that its relatively new in the market.

Training program is not intensive.

Most of the people have faith on LIC as it is the oldest Government

Organization. Low customer confidence on the private players.

OPPORTUNITIES

Insurable population: According to IRDA only 10% of the population is insuredwhich represent around 30% of the insurable population. This suggests more than

300m people, with the potential to buy insurance, remain uninsured.

International companies will help in building world class expertise in local market

by introducing the best global practice.

The IDBI Federal group is going to open 100 branches from existing 33 of IDBIFederal.


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Fast-track career development opportunities on an industry-wide basis.

An apploied research centre to create opportunities for developing techniques to

provide added-value services.

THREATS

Big public sector insurance companies like Life Insurance Corporation(LIC) ofIndia, National Insurance Company Limited, Oriented Insurance Limited, New

India Assurance Company Limited and United India Insurance Company Limited.

People trust and go to them more.

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors.

Lack of infrastructural in rural areas could constrain investment.

9.Questionnaire

Name:

Age :

Gender : Male Female

Designation :

Email id :

Mobile No. :

1. According to you; what is the purpose of Training?

Knowledge and SkillAcquisition Performance Enhancement

Both

1. Do you feel that training program is in line with the business requirement?

Yes No

2.

What is your opinion about the Trainers knowledge?


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What additional benefits you would like to have?

_____________________________________________________________________

____________________________________________________

9. Analysis and Interpretation

Total Respondents 50

Average Age (in years) 34.56

Male 35

Female 15

Ques 1. According to you; what is the purpose of Training?

35

15

Male Female

Gender

Gender


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Percentage

Knowledge and SkillAcquisition 17 34

Performance Enhancement 15 30

Both 18 36

Interpretation :

34% of employees think that Training is for acquiring Knowledge and Skills, while 30%

of the employees said that it is for enhancing their performance and 36% say its both.

Ques 2 .Do you feel that training program is in line with the business requirement?

Percentage

Yes 43 86

No 07 14

34

30

36

Percentage

Knowledge & Skill Acquisition

Performance Enhancement

Both


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Interpretation:

86% employees said that the training program is in line to the business requirement. 14%

employees said that it is not.

Ques 3. What is your opinion about the Trainers knowledge?

Percentage

Excellent 0 0

Good 5 10

Fair 26 52

Poor 16 32

Very Poor 3 6

86%

14%

Percentage

Yes No


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Interpretation:

62% employees said that the trainers knowledge is up to the mark.38% of totalrespondents are unhappy about the trainers knowledge.

Ques 4. According to you; what should be the tentative time / convenient time

for the training classes?

Percentage

Morning 26 52

Afternoon 15 30

Evening 9 18

Excellent Good Fair Poor Very Poor

0 10

52

32

6

Percentage

Options


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Interpretation :

52% employees are comfortable with the morning sessions, while 30% employees arecomfortable with Afternoon Sessions. Evening Sessions are preferred by 18% Employees.

Ques 5. Is there any requirement for the training sessions on Calling?

Percentage

Yes 45 90

No 5 10

52%

30%

18%

Percentage

Morning Afternoon Evening


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Interpretation :

90% employees think that mock calling should be a part of the Training Program.

Ques 6. Do you require sessions on successionplanning program?

Percentage

Yes 41 82No 9 18

90%

10%

Percentage

Yes No


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Interpretation:

82% employees said that they require secession-planning program.

Ques 7. What is your opinion about the Training Reward Point System?

Percentage

Excellent 0 0

Good 30 60

Fair 8 16Poor 11 22

Very Poor 1 2

82%

18%

Percentage

Yes No


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Interpretation :

76% employees said that TRP system is good and fair, while 24% employees said that

this is not good.

Ques 8 . In which areas an employee needs training?

Percentage

Company policies and procedures 7 14

Product based training 6 12

Problem Solving Skills 11 22

All of them 26 52

0%

60%16%

22%

2%

Percentage

Excellent

Good

Fair

Poor

Very Poor


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Interpretation :

52% employees think that an employee should be trained in all the areas, while 22% saidthat Problem Solving Skills are of utmost importance.

14%

12%

22%

52%

Percentage

Company policies and

procedures

Product Based training

Problem solving skills

All of them


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Ques 9. Please rate the improvement in your performance after the training program:

Percentage

1 6 12

2 16 323 26 52

4 2 4

5 0 0

Interpretation :

About 44% employees said that there is not much of improvement in performance after

training program, while 52% employees said that there is a little improvement.

Ques 10. How much you are satisfied with Training Process?

Percentage

Extremely Satisfied 1 2

Satisfied 9 18

Neither Satisfied Nor Dissatisfied 7 14

Dissatisfied 30 60

Extremely Dissatisfied 3 6

0 5 10 15 20 25 30

1

2

3

4

5

Column2

Column1

Series 1


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Interpretation :

66% employees are not satisfied with the training process, while 20% are satisfied.

10.1 Testing of Hypothesis :

Z-Test

Sample Size, n = 50

p = 0.622

q= 0.378

E(p) = 0.60

Where P = Number of respondents who were affirmative to the Query.

Q = Number of respondents who were not affirmative to the query.

E(p) = Standard error of p

N = Sample size

H0 = Majority of the employees at IDBI Federal who are satisfied with the Training Program

0

5

10

15

20

25

30

Extremely

Satisfied

Satisfied Neither

Satisfied norDissatisfied

Dissatisfied Extremely

Dissatisfied

Options

Options


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H1 = Majority of the employees at IDBI Federal who are not satisfied with the Training Program.

Therefore, H0 H1

Hence, it is a two tailed test.

Assuming that H0is true computing the test statistic at 5% Level of Significance,.

Zcal= pE(p)/S.E of p ; Where S.E of p = sqrt (pq/n)

Calculations:

S.E of P = 0.62*0.38/50=0.068

Zcal= 0.62-0.60/0.068= 0.29 i.e. 29%

Decision:

Since |Zcal| < |Ztab| ; We accept H1 and reject H0

Therefore the hypothesis proves that 71% of employees at IDBI Federal are not satisfied with training

program

11 . Facts And Findings:

Total respondents50.

Average Age34 years.

Male35, Female15.

Overall satisfaction percentage of training process is only 20%.

36% employees feel that training is for both Knowledge and Skills Acquisition and performance

Enhancement.

86% employees feel that the training process meets business requirements.

38% employees feel that trainers knowledge is not up to the mark.

More than 50% employees feel that training should be given in all the areas like Policies and

Procedures, Product based Training and Problem Solving Skills.

90% employees feel that Mock Calling Sessions has to be included in Training Module.

76% employees find the TRP system is fair and good.

82% employees feel the need of having session on Successionplanning.

52% employees have rated their improvement after Training. While 44% employees felt very

little or little improvement in their performance after Training Program.


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12. Recommendations:

The training process needs to be made more intensive.

AML guidelines and KYC modules should be discussed more.

Case studies should be given to the trainees so as to overcome critical issues immediately. Computer Based Training can be introduced to save on cost.

Online Training can also be implemented to save time.

Mock Calling Techniques should be introduced to help employees learn various

techniques of talking to customers and convincing on phone.

Online Premium Payment is available on IDBI Federal website. Online Applications can

also be added to save on cost and provide ease of access to the knowledgeable customers.

Create awareness: The Company has to take care of awareness creation about the

products and services among the Advisors/Agents.

Charges: The Company has to reduce the mortality and administration charges.

Product promotion strategies should be improved.

Company should consider the present competition and should act according to the

customer needs.

There should be long term training like Succession - Planning class which would help the

employees to grow into Managers in the near future.


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13.Conclusion:

On the basis of my study, I conclude that

IDBI Federal Life Insurance Co. Ltd is a new private player in the Indian

Insurance Market.

It is the private company with a 48% stake of IDBI Bank.

Its a very fast growing insurer.

The Training and Development process at IDBI Federal is systematic.

The training process is carried out session wise.

The entire training process is based on Training Reward Point System.

There are 2 broad types of training, as per TRP system:

o

Trainer to Employee

o Employee to Distributor

The training sessions are divided into 2 phases.

o

Self Learning Modules

o Trainer Led Sessions

These are different chapters for each modules and are explained in a

PowerPoint presentation method to the trainees.

There is also a training module for Management Level Employees(MDP)

There are modules on Sales, to enhance selling techniques of the employees.

Awards are given to the employees and distributors to appraise their

performance. System is fair and clean. There are no complaints whatsoever as been told by

the respective managers.


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14. CASE STUDY :

CASE 1 . A CASE STUDY ON MONEY LAUNDERING

training and development at idbi bank

Documents