Priynka S Project
Priynka S Project
Priynka S Project
Project Report
On
Training Undertaken at
Titled
“AGENT RECRUITMENT SKILLS AND MARKET RESEARCH OF
INCOME NEEDS IN FUTURE GENERALI INDIA LIFE
INSURANCE COMPANY LIMITED”
This is to certify that Mr. Priyanka Sharma student of MBA 2nd semester two year full time
course, has satisfactorily completed his summer training on the topic of AGENT
RECRUITMENT SKILLS AND MARKET RESEARCH OF INCOME NEEDS at Future
Generali India Life Insurance Company Limited. He has submitted her training project
report in fulfillment of Master of Business Administration (MBA) programme by
ManavRachna International University, Faridabad2008 – 2010.
PRIYANKA SHARMA
MBA 3rd semester
ACKNOWLEDGEMENT
I would also like to thank the supporting staff of MBA Department, for their help and
cooperation throughout our project.
PRIYANKA SHARMA
MBA 3rd Semester
EXECUTIVE SUMMARY
In today’s competitive market, for life insurance sector, recruiting good agents has often
been considered the number one job & problem in agency management. It is certainly a
task that new companies in the Indian life insurance market have put much stress on. The
reason is that life insurance remains a product, not many are easily disposed to buy and
not many want to sell either. The survival of agency manager depends on his convincing
enough qualified and competent people to choose life insurance selling as a permanent
career. Recruitment involves selecting the right candidate for the agent’s job and selling the
agency idea to him.
Recruitment continuously is very much important for life insurance companies; because
FYP (First Year Premium) is directly depend on the number of Agents/Advisors, Activity
Ratio, Case Rate & Case Size. Apart from recruiting more & more advisors it is necessary
to recruit quality advisors to maintain activity ratio, case rate and case size.
Further, it is very important to know the target segment for recruitment, in this project work,
I have segmented the whole market mainly on the basis of demographic (occupation, &
age), and geographic (urban & sub-urban areas) segmentation, to identify the potential
segment for recruitment.
CONTENTS
1. Introduction of Industry
2. Introduction of Company
4. Research Methodology
7. SWOT Analysis
8. Conclusion
10. Appendix
11. Bibliography
INTRODUCTION OF INSURANCE
The business of insurance is related to the economic values of assets. Every asset has a
value. The asset would have been created through the efforts of the owner. The asset is
valuable to the owner, because he expects to get some benefits from it. The benefits may
be an income or something else. It is a benefit because it meets some of his needs. In the
case of a factory or a cow,the product generated by is sold and income generated. In the
case of a motor car, it provides comfort and convenience in transportation. There is no
direct income.
Every asset is expected to last for a certain period of time during which it will perform. After
that, the benefit may not be available. There is a life timefor a machine in a factory or a cow
or a motor car. None of them will last forever. The owner is aware of this and he can so
manage his affairs that by the end of that period or life time, a substitute is made available.
Thus,he makes sure that the value or income is not lost. However, the asset may get lost
earlier. An accident or some unfortunate event may destroy it or make it non-functional. In
that case, the owner and those deriving benefits there from, would be deprived of the
benefit and the planned substitute would not have been ready. There is an adverse or
unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such
adverse situations.
2. Plans in which individuals and organization who are concerned about potential risks
will pay premiums to an insurance company,who in return, will reimburse them if
there is loss. To generate a profit, the insurer will invest the premiums it receives.
3. A contract that provides compensation for specific losses in exchange for a periodic
payment. An individual contract is known as an insurance policy and the periodic
payment is known as aninsurance premium.
4. A contract in which one party agrees to pay for another party‘s financial loss
resulting from a specified incident(for example, a collision, theft or storm damage).
TYPES OF INSURANCE
1. Auto Insurance
This is insurance, which protect the insured against losses involving the use of
automobiles.
2. Business Insurance
Insurance that is intended to serve the insurance needs of a business rather than
the needs of an individual.
3. Health Insurance
A broad term applying to all types of insurance indemnifying or reimbursing for
losses caused by bodily injury or sickness or for expenses of medical treatment
necessitated by sickness or accidental bodily injury. Health policies can offer
many options and very in their approaches to coverage. It might also include
prescriptions and doctor visits.
4. Life Insurance
It provides for payment of a sum of money upon the death of the insured person.
6. Property Insurance
Property insurance provides protection against risks to property, such as fire,
theft or weather damage.
7. Travel Insurance
Is an insurance cover taken by those who travel abroad, which covers certain
losses such as medical expenses, loss of personal belongings, travel delay,
personal liabilities?
9. Insurance advice
Advice offered to you related to insurance.
1. Premiums paid under this plan are eligible for tax benefits under Section 80C
of the Income Tax Act, 1961. Any sum received under this plan is exempt
from tax under section 10(10D) of the Income Tax Act, 1961.
2. Attach Accident, Waiver of premium, Payer Benefit (for juvenile policy) and
Critical Illness riders to this policy at a nominal extra cost for added
protection.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.
INSURANCE IN INDIA
Insurance in India can be traced back to the Vedas. For instance, Yogakshema,the name
of Life Insurance Corporation of India's corporate headquarters, is derivedfrom the Rig
Veda. The term suggests that a form of "community insurance" wasprevalent around 1000
BC and practiced by the Aryans.
Burial societies of the kind found in ancient Rome were formed in theBuddhist period to
help families build houses, protect widows and children. BombayMutual Assurance Society,
the first Indian life assurance society, was formed in 1870.
Other companies like Oriental, Bharat and Empire of India were also set up in the1870-90s.
It was during the swadeshi movement in the early 20th century thatinsurance witnessed a
big boom in India with several more companies being set up.As these companies grew, the
government began to exercise control on them.The Insurance Act was passed in 1912,
followed by a detailed and amended InsuranceAct of 1938 that looked into investments,
expenditure and management of thesecompanies' funds.
By the mid-1950s, there were around 170 insurance companies and 80provident fund
societies in the country's life insurance scene. However, in the absenceof regulatory
systems, scams and irregularities were almost a way of life at most ofthese companies. As
a result, the government decided nationalizes the life assurancebusiness in India. The Life
Insurance Corporation of India was set up in 1956 to takeover around 250 life companies.
For years thereafter, insurance remained a monopoly of the public sector. Itwas only after
seven years of deliberation and debate - after the RN Malhotra Committee report of 1994
became the first serious document calling for the re-opening up of the insurance sector to
private players -- that the sector was finally opened up to private players in 2001.
The business of life insurance in India in its existing form started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the
important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute toregulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government tocollect
statistical information about both life and non-life insurance businesses.
1938:Earlier legislation consolidated and amended to by the Insurance Act with
theobjective of protecting the interests of the insuring public.
1956:245 Indian, foreign insurers and provident societies was taken over by thecentral
government and nationalized. LIC formed by an Act of Parliament, viz. LICAct, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
In 1994, the committee submitted the report and some of the key recommendations
included:
1) Structure
Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate.
2) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the industry.
No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only One State Level Life Insurance Company should be allowed to operate in each
state.
3) Regulatory Body
The Insurance Act should be changed.
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced
from 75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time).
5) Customer Service
LIC should pay interest on delays in payments beyond 30 days.
Insurance Companies:
IRDA has so far granted registration to 12 private life insurance companies and 9 general
insurance companies. If the existing public sector insurance companies are included, there
are currently 13 insurance companies in the life side and 13 companies operating in
general insurance business. General Insurance Corporation has been approved as the
"Indian reinsurer" for underwriting only reinsurance business. Particulars of the life
insurance companies and general insurance companies including their web address are
given below:
Company Profile
Future Generali is a joint venture between the India-based Future Group and the Italy-
based Generali Group.
Future Generali is present in India in both the Life and Non-Life businesses as Future
Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd.
Future Group
Future Group, led by Mr. Kishore Biyani, is positioned to cater to the entire Indian
consumption space. The Future Group operates through six verticals:
1. Future Retail (encompassing all lines of retail business)
2. Future Capital (financial products and services)
3. Future Brands (all brands owned or managed by group companies)
4. Future Space (management of retail real estate)
5. Future Logistics (management of supply chain and distribution)
6. Future Media (development and management of retail media spaces)
The group’s flagship enterprise, Pantaloon Retail, is India’s leading retail company with
presence in food, fashion and footwear, home solutions and consumer electronics, books
and music, health, wellness and beauty, general merchandise, communication products, E-
tailing and leisure and entertainment. The company owns and manages multiple retail
formats catering to a wide cross-section of the Indian society and its width and depth of
merchandise helps it capture almost the entire consumption basket of the Indian consumer.
Headquartered in Mumbai (Bombay), the company operates through 4 million square feet
of retail space, has over 150 stores across 35 cities in India and employs over 15,000
people. The company’s revenues for FY 05-06 were Rs. 2017 crore
Founded in 1987, as a garment manufacturing company, Pantaloon Retail forayed into
modern retail in 1997 with the opening up of a chain of department stores, Pantaloons. In
2001, it launched Big Bazaar, a hypermarket chain, followed by Food Bazaar, a
supermarket chain and went on to launch Central, a first of its kind, seamless mall located
in the heart of major Indian cities. Some of it’s other formats include, Collection I (home
improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and
stationaries), all (fashion apparel for plus-size individuals), Shoe Factory (footwear) and
Blue Sky (fashion accessories). It has recently launched its retailing venture,
futurebazaar.com.
Some of the group’s subsidiaries include Home Solutions Retail India Ltd, Future Bazaar
India Ltd and Converge Retail India Ltd, which leads the group’s foray into home
improvement, retailing and communication products, respectively. Other group companies
include, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. It has
also entered joint venture agreements with a number of companies including ETAM group,
Gini&Jony, Liberty Shoes, Staples and Planet Sports, a company that owns the franchisee
of international brands like Marks & Spencer, Debenhams, Guess and The Body Shop in
India.
Future Capital Holdings, the group’s financial arm, focuses on asset management through
real estate investment funds (Horizon and Kshitij) and consumer-related private equity
fund, in division. It also plans to get into insurance, consumer credit and offer other financial
products and services.
Future Group’s vision is to, "deliver Everything, Everywhere, Every time to Every Indian
Consumer in the most profitable manner." One of the core values at Future Group is,
‘Indian’ and its corporate credo is – Rewrite rules, Retain values.
http://www.generali.com/generalicom/home.do?
&idItem=1071&idSezione=1070&idLanguage=ENGenerali Group
Established in Trieste on December 26, 1831, Generali is an international group present in
more than 40 countries and 5 th largest company in the world with insurance companies and
companies mostly operating in the financial and real estate sectors. Its ranked is 47 th in
Global fortune list of 500’s (2009). Over the years, the Generali Group has reconstructed a
significant presence in Central Eastern Europe and has started to develop business in the
principal markets of the Far East, including China and India.
Generali Group is a key player in Continental Europe, with a significant presence in
all the principal countries.
Generali is the third largest European insurance group by premium written and the
47th largest company by revenues in the "Fortune Global 500" 2009 worldwide
ranking.
Characterised since 1831 by a strong international drive.
Group`s Vision
We are committed to being a leading international team that produces consistent,
excellent results for our stakeholders in the short and long term.
We believe in the value of our people and we build our competitive advantage
through the commitment of every individual. We will therefore seek to produce and
to leverage constantly a pioneering spirit, innovation and excellence.
We are committed to becoming the most attractive employer for the best performing
people.
We will work constantly to enhance our group identity, proud of our history and of the
richness of our diversities.
Pioneering spirit
Inclination towards innovation and continuous search for new and better solutions, being
open to changes and being ambitious to continuously improve and innovate.
Responsibility
Ethical choice of accepting the consequences of one’s own actions and of being loyal to
the organization, taking the initiative and making decisions within one’s own competence
and responsibility.
Respect
Strong belief that “doing business” implies respecting the rules; rules linked to our duties
towards shareholders as well as rules affecting the relationship with all our stakeholders,
especially our employees and the community where we operate.
Flexibility
Ability to be open and to encourage others to stay open to change, to maintain and
improve work effectiveness in new situations, to adapt one’s attitude and behaviour to work
effectively with different people, to readily adapt to changing priorities, new procedures and
methods, better ideas and strategies.
Integration
Ability to grow and work together by listening to each other and openly and constructively
comparing different ideas, which is fundamental to improve both oneself and business
results.
Professionalism
Continuous commitment of the individual and of the organization to develop knowledge
and to increase the value of experience, in order to achieve a specific and distinctive know-
how.
Transparency
A “must” in the exchange of opinions and information, based on clear purposes and on
behavioural coherence in order to create and strengthen confidence amongst people and
integrity in business performance.
INTRODUCTION OF RECRUITMENT
Recruitment and Selection system in Insurance sector had become vital for maximum
output and effective business results.
This study will provide sufficient information about Recruitment and Selection systems
carried out in Future Generali India Life Insurance Company Ltd.
Meaning:
“Recruitment and Selection system refers to sourcing and building efficient Human
Resource to the organization to attain its objectives”.
This policy complies with, and supports, the Company’s Equal Opportunities Policy by:
Ensuring that every stage of the recruitment and selection process is carried out in a
systematic way, based on pre-agreed criteria, to eliminate the potential for personal
bias affecting the decision making process.
Ensuring that all decision points are fully documented to assist with subsequent
monitoring.
Making the whole procedure as open as possible, to ensure that all candidates
understand why decisions have been taken and, where they wish, to obtain
meaningful feedback.
Enabling demonstration of robust, transparent processes and thereby providing a
basis for defense in the event of challenge.
Ensure all job profiles/descriptions reflect the real requirements of the job, rather
than describing the person who filled that job previously.
Write job profiles in language that encourages both men and women to apply –
including women of and Differing backgrounds. For example, avoid use of jargon
and acronyms that tend to be exclusive.
Recruitment of Agents
I) Need, Scope & Objective of the Policy
As most part of the insurance business is through agents/corporate agents whobring in non
face to face business relationships with the policyholders, therefore there is need for the
selection process of agents/corporate agents to be monitored carefully.
Agents/ Advisors who are dealing directly with the public (whether as members of staff or
agents) are the first point of contact with potential money launderers and their efforts are
therefore vital to the strategy in the fight against money laundering.
The Company monitoring the agents should monitor sales practices followed by agents and
ensure that if any unfair practice is being reported then action is taken after due
investigation.
Services of defaulting agents who expose the Company to AML related risks or are found
guilty of misconduct on multiple occasions should be terminated and the details reported to
IRDA for further action.
Insurance Company when faced with a non-compliant agent or corporate agent should take
necessary action to secure compliance, including when appropriate, terminating its
business relationship with such an agent/corporate agent.
By way of this policy, we have made an attempt to consolidate the regulatory provisions
involved in the recruitment, training and licensing process and designed the consequent
management / complaint handing process in case of any deviation from the policy.
This policy shall ensure that the smooth and robust Agency Recruitment, Training and
Licensing process. It highlights the role, responsibility of all the stakeholders.
This policy also puts in place the Consequence Management of Complaints Process, in
case of any misconduct by any agent or non-compliant agent.
II) Regulatory requirements for Insurers
a. Prohibition of payment by way of commission or otherwise for procuring
business,
b. Prohibition of rebates,
c. Register of Insurance Agents, etc.
(l) No person shall payor contract to pay to an insurance agent, and no insurance agent
shall receive or contract to receive by way of commission or remuneration in any form
in respect of any policy of life insurance issued in India by an insurer after the 31st day
of December, 1950, and effected through an insurance agent, an amount exceeding-
(a) Where the policy grants an immediate annuity or a deferred annuity in consideration
of a single premium, or where only one premium is payable on the policy, two per
cent of that premium,
(b) where the policy grants a deferred annuity in consideration or more than one
premium, seven and a half per cent of the first year's premium, and two per cent of
each renewal premium payable on the policy, and
(c) in any other case, thirty five per cent of the first year's premium, seven and a half
per cent of the second and third year's renewal premium, and thereafter five per
cent of each renewal premium payable on thepolicy:
Provided that in a case referred to in clause (c), an insurer, during the first ten years of his
business may pay to an insurance agent and an insurance agent may receive from such an
insurer, forty per cent of the first year's premium payable on the policy:
Provided further that in case referred to in clause (c) where the rate of commission
payable on the first year’s premium is equal to or less than twenty-one per cent thereof,
and the rate on the fourth and fifth year’s premiums does not exceed sis per cent thereof,
the Life Insurance Corporation of India may pay to an insurance agent, and the insurance
agent may receive from it, commission on the sixth and subsequent year’s renewal
premiums payable on the policy at a rate not exceeding six per cent of each renewal
premium.
(2) No person shall pay or contract to pay to a special agent, and no special agent, shall
receive or contract to receive, by way of commission or as remuneration in any form, in
respect of any policy of life insurance issued in India by an insurer after the 31st day of
December, 1950, and effected through a special agent, an amount exceeding -
a. In a case referred to in clause (a) of sub-section (1), one halfper cent of the
premium,
b. In a case referred to in clause (b) of sub-section (1), two per cent of the first
year's premium payable on the policy and
c. In a case referred to in clause (c) of sub-section (1), fifteen per cent of the first
year's premium payable on the policy:
Provided that in a case referred to in clause (c), an insurer, during the first tenyears of his
business, may pay to a special agent, and a special agent may receive from such an
insurer, seventeen and a half per cent of the first year'spremium payable on the policy:
Provided further that in a case referred to in clause (c), where the rate of commission
payable on the first year’s premium is equal to or less than twenty-one per cent thereof,
and the rate on the fourth and fifty year’s premiums does not exceed six per cent thereof,
the Life Insurance Corporation of India may pay to an insurance agent, and the insurance
agent may receive from it, commission on the sixth and subsequent year’s renewal
premiums payable on the policy at a rate not exceeding six per cent of each renewal
premium.
(3) No person shall pay or contract to pay to a special agent, and nospecial agent, shall
receive or contract to receive, by way of commission or remuneration in any form in
respect of any policy of general insurance issued inIndia by an insurer after the
Commencement of Insurance (Amendment Act, 1968, and effected through an
insurance agent, an amount not exceeding fifteen per cent of the premium payable on
the policy where the policy relates to fire or marine insurance or miscellaneous
insurance.
(4) No person shall pay or contract to pay to a principal agent, and no principal agent shall
receive or contract to receive, by way of commission or remuneration in any form, in
respect of any policy of general insurance issued in India by an insurer after the
commencement of the Insurance (Amendment) Act, l950, and effected through a
principal agent, an amount exceeding
a. In the case referred to in clause (a) of sub-section (3), twenty per cent of the
premium payable on the policy, and
b. In the case referred to in clause (b) of that sub-section, fifteen per cent on the
policy,
Less any commission payable to any insurance agent in respect of the said policy:
Provided that the Authority may, in such circumstances and to such extent and for such
period as may be specified, authorize the payment of commission or remuneration
exceeding the limits specified in this sub-section to a principal agent of an insurer
incorporated or domiciled elsewhere than in India, if such agent carries out and has
continuously carried out in his own office duties on behalf of the insurer which would
otherwise have been performed by the insurer.
(5) Without prejudice to the provisions of section 102 in respect of a contravention of any
of the provisions of the preceding sub-sections by an insurer, any insurance agent
who contravenes the provisions of sub-section (1) or sub-section (3) shall be
punishable with fine which may extend to one hundred rupees.
B)Prohibition of rebates
(1)No person shall allow or offer to allow, either directly or indirectly, as an inducement to
any person to take or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebateof the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the insurer:
(2) Any person making default in complying with the provisions of this section shall be
punishable with fine which may extend to five hundred rupees.
(l) Every insurer and every person who acting on behalf of an insurer employs insurance
agents shall maintain a register showing the name and address of every insurance
agent appointed by him and the date on which his appointment began and the date, if
any, on which his appointment ceased.
Agency commission (tied) has to be paid within following limits:
Commission as % of premiums
Single premium policies 2%
granting immediate / deferred
annuity
Other Single premium policies 2%
More than 1 premium policies 7.5% of FY premium
granting deferred annuity 2.0 % of renewals
Other policies 40% of FY premium (After 1 st years from
commencement, 35%)
7.5% of renewals for 2nd& 3rd years
5% of renewals thereafter
III) Regulatory requirements for Agents
Recruitment, Training & Licensing
In relation to recruitment, training & Licensing of advisors, IRDA has prescribed detailed
guidelines which are as follows:
Every Agent under the Insurance Regulatory and Development Authority (Licensing of
Insurance Agents) Regulations, 2000 is required to obtain a license before soliciting any
insurance Business. Any individual desiring to obtain the License shall fulfil the following
criteria:
b) Completed from an approved institution, at least, fifty hours’ practical training in life
or general insurance business, as the case may be, which may be spread over one
to two weeks, whereas in case of Composite License, have completed from an
approved institution, at least, seventy five hours’ practical training in life and general
insurance business, which may be spread over two to three weeks.
d) Has the requisite knowledge to solicit and procure insurance business and is
capable of providing the necessary service to the policyholders;
He has to make an application for obtaining the license to designated person (DP) of the
insurer in prescribed form together with the fees of Two hundred and fifty rupees.
The license to act an agent shall be valid for a period of three years from the date of its
issue.
In case of renewal of license, the agent has to undergo twenty five hours of additional
training in life or general business. In case of composite insurance agent, additional fifty
hours of training is required.
This function is responsible for conducting Agency licensing / Re-licensing and other
agency servicing.
The sales team (all channels) is responsible to ensure that none of the agents, advisors,
sales executive deviate from the requirements discussed hereunder.
Every Insurance Agents/ Advisors are required to strictly follow The Code of Conduct as
prescribed by the IRDA:
(a) Identify himself and the insurance company of whom he is an insurance agent.
(b) Disclose his licence to the prospect on demand.
(c) Disseminate the requisite information in respect of insurance products offered for sale
by his insurer and take into account the needs of the prospect while recommending
a specific insurance plan.
(d) Disclose the scales of commission in respect of the insurance product offered for sale, if
asked by the prospect.
(e) Indicate the premium to be charged by the insurer for the insurance product offered for
sale.
(f) Explain to the prospect the nature of information required in the proposal form by the
insurer, and also the importance of disclosure of material information in the purchase
of an insurance contract.
(g) bring to the notice of the insurer any adverse habits or income inconsistency of the
prospect, in the form of a report (called “Insurance Agent’s Confidential Report”)
along with every proposal submitted to the insurer, and any material fact that may
adversely affect the underwriting decision of the insurer as regards acceptance of
the proposal, by making all reasonable enquiries about the prospect.
(h) Inform promptly the prospect about the acceptance or rejection of the proposal by the
insurer.
(i) Obtain the requisite documents at the time of filing the proposal form with the insurer;
and other documents subsequently asked for by the insurer for completion of the
proposal.
(j) Render necessary assistance to the policyholders or claimants or beneficiaries in
complying with the requirements for settlement of claims by the insurer.
(k) Advise every individual policyholder to effect nomination or assignment or change of
address or exercise of options, as the case may be, and offer necessary assistance
in this behalf, wherever necessary.
Agent should be communicated that, if he commits or practices any of the above don’t, he
shall be liable to be terminated.
Every Insurance Agent should endeavor to conserve the insurance business already
procured and make every attempt to ensure premium remittance by the policyholders is
within the stipulated time, by giving renewal premium notices in writing and orally to
policyholders.
Any deviation from the above prescribed code of conduct will be considered non-adherence
and appropriate action will be initiated as per the Consequence Management Process
against the concerned agent and he shall be guilty of misconduct
Shall be directly responsible for undertaking the following recruitment process within the
regulatory guidelines and must ensure:
Documents are submitted as per process note released by Channel Operations team
from time to time and that the documents are not fake or forged.
Agents complete the stipulated training from the Agent Training Institute and prepare
them for undertaking the examination conducted by Insurance Institute of India
Photograph in the hall ticket and in the examination form are identical (recentone).
Exam centre allotted to the candidate is nearest exam centre to the branch office of
the company where he is taking agency.
Agents registered with the company take the exam on the day pre-fixed.
Any deviation from the above mentioned process will be considered non-adherence and
appropriate action will be initiated as per the Consequence Management Process against
the concerned agent and the Sales Manger and he shall be guilty of misconduct.
A Quarterly declaration to the effect that there is complete adherence to this policy shall be
given by each SM.
ADM will be directly responsible for supervising the above recruitment process within the
regulatory guidelines.
Any deviation from the above mentioned process will be considered non adherence and
appropriate action will be initiated as per the Consequence Management Process against
the concerned Manager and he shall be guilty of misconduct.
A Quarterly declaration to the effect that there is complete adherence to this policy shall be
given by each ADM.
Shall be directly responsible for verifying the above recruitment process within the
regulatory guidelines at the branch level and must:
Oversee the activities concerning recruitments and will be
overall responsible for the code of conduct of the sales teams working in the branch.
Act as a guide and ensure that every team member is made
aware of the recruitment policy, regulatory provisions and company guidelines and
processes in force
Ensure all documents that are being presented are in order and
take full responsibility regarding its authenticity.
Ensure proper/rightful use of company seal/stamp. Must ensure
that there are no extra/duplicate stamps in the branch in order to stop misuse.
Ensure candidates registered for exams do appear themselves.
Any attempt to use unfair means will have to be brought to the notice of company
officers immediately.
Ensure that the training institute is fully compliant as per the
guidelines laid down by the regulator as well as internal guidelines circulated by
Channels Operations from time to time
Since the BMs are administrative heads of branches it is expected that they drive a culture
of compliance in their respective branches and ensure that the provisions laid out are
implemented fully at all times.
Any deviation from the above mentioned process will be considered non adherence and
appropriate action will be initiated as per the Consequence Management Process against
the concerned Manager and he shall be guilty of misconduct.
A Quarterly declaration to the effect that there is complete adherence to this policy shall be
given by each BM.
Shall be directly responsible for verifying the above recruitment process within the
regulatory guidelines at the regional level and must:
Review the process in every branch from time to time
A Quarterly declaration to the effect that there is complete adherence to this policy shall be
given by each RM.
Shall be directly and overall responsible for ensuring 100% compliance of the above
recruitment process within the regulatory guidelines at the zonal level and must:
Review the various processes in review meetings
Any deviation from the above mentioned process will be considered non adherence and
appropriate action will be initiated as per the Consequence Management Process against
the concerned Manager and he shall be guilty of misconduct.
A declaration to the effect that there is complete adherence to this policy shall be given by
each ZBH.
1) SOLICITATION
Following needs to be seen:
Evaluate customer’s life insurance need
Ability of customer to pay premiums over intended policy duration
2) PRESENTATIONS
For presentations, please use the pre-approved material or the material provided by the
Company.
3) TELEMARKETING
Telemarketing is also advertising. The Company is registered with the National Do Not Call
Registry (NDNC Registry) Telecom Regulatory Authority of India (TRAI). All telemarketing
scripts require pre-approval from Compliance. The NDNC Registry will be a data base
having the list of all telephone numbers of the subscribers who do not want to receive
unsolicited commercial communication UCC. Verify calling telephone numbers list with the
NDNC registry before making a call to the customer. The Company as telemarketers who
make calls to the numbers registered in Do Not Call List, whereby shall be payable to pay
Rs.500/ - to the service provider for every first (UCC) and Rs.1000/- shall be payable for
subsequent UCC. There is a provision for disconnection of the Company telephone number
/ telecom resource if the UCC is sent even after levy of Rs.500/- & Rs.1000/- tariff.
4) REBATING / DISCOUNTING
Rebating is prohibited. Any person making default shall be punishable with fine which may
extend to five hundred rupees.
5) MISREPRESENTING
1.1.a No person is authorized to issue, circulate or use directly or indirectly, any written
or oral statement or circular misrepresenting the terms of any policy issued or to be
issued by the company, or misrepresenting the benefits or privileges promised
under any policy or estimating the future bonuses, accruals, guarantees payable
under any policy otherwise than mentioned in the terms of the policy.
1.1.b Misrepresenting also includes failure to properly explain the policy provisions or to
unintentionally or intentionally make mistakes in completing the application for
insurance. Misrepresenting any facts in order to sell insurance is fraudulent.
1.1.c In the case of any deviations from the above the company shall take strict
disciplinary action as per the approved malpractice matrix.
1.1.d Misrepresent about tax benefits which could be claimed under any insurance plan.
The case shall be reported, in case the matter needs immediate attention/escalation, a
mail may be sent to Agency Head or Company Secretary and Legal Head.
Kindly note that any delay in bringing the matter to notice of the Legal department will
be construed as an attempt to hide facts.
The Company shall conduct an enquiry to be conducted by authorized independent
personnel (preferably by the Internal Audit team) to find out the facts of the case with
relevant supporting and share with the Legal team within 3 days of its occurrence.
The Legal team shall in consultation with the Agency team give their suggestions with
action points to close the cases within 3 days of the case being reported to them.
In case of 2nd repeated instance, the concerned Agent /Advisors shall be issued a show
cause notice and escalation to concerned SM shall be done and further if necessary &
deemed appropriate,terminating its business relationship with such an agent.
In case of 2nd repeated instance, the concerned SM/ADM /BM shall be issued a show
because notice and escalation to concerned Supervisor shall be done and further if
necessary & deemed appropriate shall be liable to be terminated from the services of
the Company.
The concerned immediate supervisor will be given warning in case of first incident.
However, in case of second incident the concerned immediate supervisor shall be
issued a show because notice and escalation to the Head Agency & Legal Head shall
be done and further if necessary & deemed appropriate shall be liable to be terminated
from the services of the Company.
However, in case of second incident the concerned RM/ ZBH shall be issued a show
cause notice and escalation to the Chief Sales & Business Development Officer (CSBD)
and CEO shall be done and further if necessary & deemed appropriate shall be liable to
be terminated from the services of the Company.
Then, on monthly basis the excel report of all such cases shall be prepared by the
Agency team with the action taken (i.e. the closure of the case) as per the specific
suggestion of the Legal team and forwarded to the Legal team.
Legal team should ensure that the required action has been taken and all such cases
are closed before reporting the same to the CSBD & CEO.
The Legal team shall on monthly basis report all such cases to the CSBD & CEO.
Documents that are being presented are not in order /they are
forged or fake.
Improper/wrongful use of company seal/stamp.
REASERCH METHODOLOGY
INTRODUCTION
TITLE OF STUDY
The title of this study is to carry on brief study on “AGENT RECRUITMENT SKILLS
AND INCOME NEEDS IN FUTURE GENERALI INDIA LIFE INSURANCE
COMPANY LIMITED”
DURATION OF STUDY
OBJECTIVE OF STUDY
RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.” - JOHN.W.BEST
Research may be defined as “any organized inquiry designed and carried out to provide
information for solving a problem”. - EMORY
“Research is essentially an investigation, a recording and an analysis of evidence for the
purpose of gaining knowledge”. - ROBERT ROSS
Descriptive research design studies are those studies, which are concerned with describing
the character of a group.
The researcher makes a plan of the study his research work. That will enable the
researcher to save and resources such a plan of study or blue print or study is called a
research design.
DATA COLLECTION
The study was based on questionnaire method. The study was about the Recruitment and
Selection System.
There are two types of data collection:
Primary data
Secondary data
Primary data
The primary data are those, which are collected a fresh and for the first time happen
to be original in character. It has been collected through a Questionnaire and personal
interview.
Secondary data
Secondary data are those which have already been collected by someone else and
which have already been passed through the stratified process. It has collected through the
books, journals & Internet.
RESEARCH INSTRUMENT
Questionnaire containing closed ended questions.
SAMPLE DESIGN:
POPULATION
It covers the 70 employees working in Future Generali India Life Insurance
Company Ltd.
SAMPLE UNIT
Sample unit is 70 Future Generali India Life Insurance Company Ltd.
Total Employee strength of the particular branch is above eighty.
SAMPLE PROCEDURES
In this study convenient sampling method was adopted. First the each
organization was divided into different departments like Operations, Customer
Services, Human Resources, Internet Marketing and under writing
departments. From this department, the respondents were selected on the
basis of convenience.
CONTACT METHOD
Respondents were contacted personally.
INTERVEIW SCHEDULE
The interview schedule has been used to collect the data. Information can be
gathered even when the respondents happen to be literate or illiterate.
TABULATION
Formula:
Simple percentage =No of Respondents
Total No of Sample Size
INTERPRETATION:
The above table depicts that 50% of the respondents are below the age group of 25-30
years age`, 25.71% of the respondents are between the age group of 30-35 years,10% of
the respondents are comes under the category of 35-40 years age group and 1% of the
respondents are comes under category of above below-25 years of age group.
TABLE NO: 2
Q2. What is your Gender?
2. Female 15 21.43
TOTAL 70 100
INTERPRETATION
The above table reveals that 78.57% of the respondents are male and 21.43% of the
respondents are female.
TABLE NO: 3
Q3. What is yourcurrent profession?
INTERPRETATION
The above pie chart shows that 37% of the respondents has pursuing professional job,
while 24% of respondents are doing private service, 23% of respondents are self employed
12%of the respondents are in public service and 4% are in other sectors.
TABLE NO: 4
Q4. What are your current salary particulars which are given by
company?
INTERPRETATION:
The above table depicts that 43.3% of respondents are earned comes the salary of 5000-
10000, 36.6% of the respondents have got RS 10000-15000 per month, 16.6% are fall in
the income group of above 15000 and 3.3% of the respondents comes under the 5000
level of category.
TABLE NO: 5
Q5. Are you satisfied with your current job?
S.NO DESCRIPTION NO OF PERCENTAGE
RESPONDENTS
1. Yes 49 70
2. No 21 30
TOTAL 70 100
INTERPRETATION:
The above table depicts that 70% of respondents are says that they are satisfy with their
current job while 30% of respondent are not satisfy their job.
TABLE NO: 6
Q6. Are you satisfied with the recruitment process of the company?
INTERPRETATION:
The above table depicts that 50% of respondents are says that recruitment process is fine,
44.28% of respondent says that recruitment process is good and 5.72% respondent says
recruitment process is bad.
TABLE NO: 7
Q7.Is there training requires for improve the performance of an advisor?
1. YES 49 70
2. NO 21 30
TOTAL 70 100
INTERPRETATION
The above table shows that 70% of respondents are says that training is require for
improvement in performance of agents while 30% of respondents are not agree for arrange
the training session for improve in agents performance.
TABLE NO: 8
Q8. According to you, which quality plays important role in recruitment
and selection process of agents?
INTERPRETATION:
The above table shows that 50% of respondents are says that communication skill is an
important quality for agent while 30% of respondents are says that leadership is important
skill for an agent, and 20% of respondents are says qualification is important in recruitment
and selection process.
TABLE NO: 9
Q9. Which segment do you think is the best for recruitment for as an
advisor?
2. Govt. Employees 21 30
3. Retired Person 21 30
4. House wife 8 10
5. Fresher 10 15
TOTAL 70 100
INTERPRETATION
The above table shows that 30% of respondents was suggested govt. employees and
retired person are the best option for recruit as an agents and 15% respondents says that
businessman and fresher while 10% respondents says that house wife are the best option
for recruit as agents.
TABLE NO: 10
Q10. Would you be interested in a source of supplementary income?
TABLE NO-11
Q11. Which source will you preferred for supplement ones income?
S.NO. DISCRIPTION NO. OF PERCENTAGE
RESPONDENTS
1. Life Insurance Agency 45 65
2. Multi level Marketing 10 15
3. Tuitions 4 5
4. Part Time Business 7 10
5. Trading and Investment in stocks 4 5
Total 70 100
INTERPRETATION:
The above table depicts that 65% of respondents are says that they will prefer life
insurance sector for supplement incomewhile 15% of respondent are prefer multi level
marketing, 10% of respondents are prefer part time business, 5% of respondents are
prefer tuitions and 5% of respondents prefer trading and investment in stocks for
supplement income.
TABLE-12
Q12. Would you be interested in a source of supplementary income
offers flexible working hours and unlimited earning opportunity?
INTERPRETATION
The above table shows that 68% of respondents were interested in source of
supplementary income for unlimited earning opportunity and 21% of respondents were not
interested in supplementary income while 11% respondents were not sure about source of
supplementary income.
1. STRENGTHS:
3. OPPORTUNITIES
4. THREATS
After overhauling the all situation that boosted a number of Pvt. Companies associated with
multinational in the Insurance Sector to give befitting competition to the established
behemoth Future Generali in private sector, we come at the conclusion that :
1. They should increase the employee’s morale and helphim to attain the target.
2. They should improve their agent recruitment procedure and recruit more
experienced employees.
3. Candidates who enter into the Job Market must make sure that their efficiency in
Communication is up to the expectation of an organization.
5. The organization should provide or set up a communication lab for the benefit of the
fresher and existing employees that makes a career development and new
opportunity to grow up in the organization.
6. The company should allot funds to create a communication laboratory for the
beneficiary of all the employees.
7. Sub-Urban areas are the most potential segment for recruitment than the urban
areas, company should target more on Sub-Urban to get quality recruitment.
8. According to survey, company should target the govt. employees and retired
persons for recruit as agents because they have a number of contacts and
references which can help in sell the products and achieve the pre-determined target
of company and increase the profit.
9. Company should make some attractive offers which will attract citizens and
company can recruit more agents.
e. g. They can offer free life insurance for agents of the company after they will
join the company.
APPENDIX
Q4. What are your current salary particulars which are given by company?
1. Below 5000 2. 5000-10000
3.10000-15000 4.Above 15000
Q6. Are you satisfied with the recruitment process of the company?
1. Good
2. Fine
3. Bad
Q8. According to you, which quality plays important role in recruitment and
selection process of agents?
1.Leadership
2.Qualification
3.Communication
Q9. Which segment do you think is the best for recruitment for as an advisor?
1.Businessman 2.Govt. Employees
3.Retired Person 4.House wife
5.Fresher
2.No
3. May be
Q11. Which source will you preferred for supplement ones income?
1.Life Insurance Agency 2. Multi level Marketing
3.Tuitions 4.Part Time Business
5.Trading and Investment in stocks
Q12. Would you be interested in a source of supplementary income offers
flexible working hours and unlimited earning opportunity?
1. Yes
2. No
3. May Be
BIBLIOGRAPHY
Websites
www.futuregeneraliindia.com
www.irdaindia.org
www.thehindubusinessline.com
www.nurcmedianext.com
www.scribd.com
www.google.com
www.wekipidea.com
Magazines
Insurance World
The Outlook Money
IRDA-33