SUMMER TRAINING PROJECT REPORT SUBMITTED FOR THE AWARD OFBACHELOR OF BUSINESS ADMINISTRATION

2009-2012

ON

“SELECTION AND RECRUITMENT”

SUBMITTED BY:

Mahima SharmaRoll No. :

UNDER THE GUIDANCE OF :Mr. Anupam Aggrawal

Manager - Sales

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GOVINDAM BUSINESS SCHOOL MAHARISHI DAYANAND UNIVERSITY

ACKNOWLEDGEMENT

To accomplish a project it involves a lot of effort and contribution from a number of people. It is thus an opportunity for us to thanks those people who have helped me generously in the completion of this project.

Exchange of ideas generates a new object to working a better way. Apart from the ability, labour and time devotion, guidance and cooperation are the two pillars for the success of the project, whenever a person is helped or cooperated by others his heart is bound to pay gratitude to them.

In the chain we are immensely thankful and convey our sincere gratitude to our project guide “Mr.Anupam Aggrawal, ICICI Prudential” for his enlightening guidance, constant inspiration and keen interest shown on us during the project. We deliberate our profound sense of gratitude to him.

We are also highly indebted to “Mrs. Masooma Khan, Faculty(HR), Govindam Business School” for being the unfailing source of encouragement at pivotal juncture and fruitful guidance helped us in completions of this project.

Mahima Sharma

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CONTENTS

1. Synopsis

2. Executive summary

3. Industry profile

4. Company profile

5. Objective of study

6. Conceptual framework

7. History of insurance

8. Types of insurance policies

9. ICICI’s policies or products

10. About life insurance advisors

11. Recruitment and selection procedure of advisors

12. Conclusion

13. Recommendations

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14. Bibliography

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Synopsis

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PROJECT TITLE: The study of recruitment and selection procedure of insurance advisor/agent.

OBJECTIVE: To understand the procedure of recruitment and selection of insurance advisor. To know about life insurance its benefits and need. To find out possible advantages of insurance advisor in ICICI Prudential. To find the suitable person for the recruitment of insurance advisor.

INTRODUCTION OF THE COMPANY: ICICI Prudential Life Insurance Company is a joint venture company between ICICI Bank, a premier financial powerhouse and prudential Plc, a leading international financial service group headquartered in the United Kingdom. This joint venture is formed in the year December, 2000 and ICICI Prudential was amongst the first private sector companies to begin operations in December 2000 after receiving approval from the Insurance Regulatory Development Authority (IRDA). ICICI Prudential’s equity base stands at Rs 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period of April – Dec 2004 the company garnered Rs 8.6 billion of new business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 3,45,000 policies. Today the company is No-1 private life insurer in the country.

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RESEARCH METHODLOGY:1. Data was collected from primary as well as

secondary sources. Customer data was partly supplied by my industry mentor and was partly by my own source.

2. Data was segmented according to N.C.R areas.3. Sometimes meeting were pre-arranged and the

prospectus were somewhat known about the matter to be discussed and sometime it would be purely a cold call.

4. a different type of approach was adopted for each profile likewise:- Chartered Accountants, Servicemen, Self-employed, Housewife’s and students.

INTERNAL GUIDE: Mrs. Masooma Khan

SUBMITTED BY: Mahima Sharma

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EXECUTIVE

SUMMARY

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Executive summary:

A well developed and evolved insurance sector is needed for economic development as it is provides long term funds fir infrastructure development and the same time strengthen the risk taking ability.

Life insurance is also now being regarded as a versatile financial planning tool in India. India being a country having a huge population of around one billion people with only 33.2% of the insurance population in India possessing life insurance. The country has a vast potential that has been left untapped till now.

Therefore what this has led to is the flooding of the life insurance market with a number of private players which in collaboration with recognized foreign companies promises to deliver the best of services at the lest price. All these companies are trying to grasp the maximum of market share in life insurance sector. For that they are recruiting world-class insurance advisors/agents who sell their product or policies. Who are these advisors/agents? Who can become an advisor/agent? How they are recruited in ICICI prudential? , How much they can earn as an insurance advisor/agent, these are some questions we have tried to answer in our project report.

This report is trying to give the detail about recruitment and selection process of the life insurance advisors. Thus by going through the report one will get to know about the life insurance and recruitment & selection process of life insurance advisors/agents in ICICI Prudential life insurance company ltd.

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INDUSTRY

PROFILE

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Industry Profile

The insurance landscape in India is undergoing major change. Closed to foreign competition since nationalization in 1956, the life insurance had been protected from competitive pressures. Now, with the re-opening of the sector, several new players have entered the scene.

The game is old but rules are new and still developing. Ensconced in a monopoly run from the nationalization days beginning in 1956, the insurance industry has indeed awakened: to a deregulated environment in which several private players have partnered with multinational insurance giants.

However, despite its teeming one billion population, India still has a low insurance penetration of 1.95 per cent, 51st in the world. Despite the fact that India boasts a saving rate of around 25 per cent, less than 5 per cent is spent on insurance. Therefore the insurance market is looking very vast and each life insurance company is trying to get maximum market share in life insurance industry.

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There are lots of life insurance companies in the industry but only few are getting good benefits and successfully trying to establish themselves. Life insurance industry is an upcoming industry and having a huge potential for making huge benefits. Some of the know life insurance companies are:

LIFE INSURANCE CORPORATION OF INDIA (LIC) ICICI PRUDENTIAL INSURANCE COMPANY TATA AIG LIFE INSURANCE BIRLA SUN LIFE HDFC LIFE AVIVA LIFE INSURANCE

LIC is a government company so it one of the biggest life insurance company but if we look at to the private players then ICICI Prudential is No. 1 life insurance company among all private life insurance companies.

COMPANY

PROFILE

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Company’s profile:

ICICI Prudential Life Insurance Company is a joint venture between ICICI bank, a premier financial powerhouse and prudential plc, a leading international financial group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential equity base stands at Rs 6.75 billion with ICICI bank and prudential plc holding 74% and 26% stake respectively. In the quarter ended may 31, 2005, the company issued over 100,000 policies, for the total sum assured of over Rs 3,753 crores and new business premium income of Rs. 242 crore. The company has a network of over 36,000 advisors; as well as 11 banc assurance tie-ups. Today, ICICI Prudential has emerged as the No.1 private life insurer in the country, with a wide range of flexible products that meet the need of Indian customers at every step of life.

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ICICI Bank:

One of the biggest financial institutions in India.

Broad spectrum of financial solutions for corporate and retail customers.

Assets of Rs. 73,000 crores+

Better than sovereign rating (moody’s).

First Indian company to be listed on New York Stock Exchange.

Trusted by millions of Indians over the years.

Prudential plc:

Started operations in 1848 and is now one of the largest life insurance companies in the world.

Presence in U.K, Europe, US and throughout Asia.

Investor deposit base in U.K. alone exceeds Rs. 53,000 crores.

Solid reputation built over 150 years.

Already established as one of the biggest mutual fund companies in India (prudential ICICI AMC)

A truly global brand.

Prudential Asia:

75 years of experience in Asia.

Over 45,000 staff agents.

Over 1 million customers.

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In 12 countries throughout Asia.

Distribution Channel In Pru. Life Insurance Co. Ltd.:

Tied AgenciesTied agencies are the largest distribution channel of ICICI prudential, compromising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales and people development, tied agency has emerged as a robust, predictable and sustainable business model.

Banc assurance and alliancesICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, banc assurance and alliances has emerged as a vital component of company’s sales and distribution strategy, contributing to approximately one third of the company’s business. The business philosophy at banc assurance and alliances is to leverage distribution synergies with our partners and add value to its customers as well as partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life insurer in India, having commenced operations in 62 cities and towns in India. These are:Agra, Ahmedbad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane, Trissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijayawada and Vizag.

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The company has ten bans assurance tie ups, having agreements with ICICI bank, Federal bank, South Indian bank, Bank of India, Lord Krishna bank, as well as some cooperative banks and corporate agents it has also tried up with organizations like dhan for distribution of salaam Zindagi, a policy for the economically underprivileged sections of society.

ICICI Prudential has recruited and trained over 36.000 insurance advisors/agents to interface with and advice customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

VISION

OF

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ICICI PRUDENTIAL

Vision of ICICI Pru. :

To make ICICI Prudential the dominant life pension player built on trust by world-class people and service.This we hope to achieve by:

Understanding the needs of customer and offering them superior products and services.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.

Proving an enabling environment to foster growth and learning for our employees.

And above all, building transparency in all our dealings.

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The success of the company will be founded in its unflinching commitment to 5 crore values – Integrity, Customer first, Ownership and Passion. Each of these values describes what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

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OBJECTIVE OF

THE STUDY

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Objective of Study:

To understand the procedure of recruitment and selection of Life Insurance advisors.

To know about Life Insurance, its benefits and need.

To find out possible advantages of Insurance advisor in ICICI prudential.

To find the suitable person for the recruitment of Insurance advisor.

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CONCEPTUAL

FRAMEWORK

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Conceptual Framework:

What is Life Insurance?

Life insurance is a contract providing for the payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of cetin event.

Uncertainly of death is inherited in human life. It is this rise, which gives rise to the necessity for some form of protection against the financial loss arising from the death. Insurance substitutes this uncertainty by certainly.

The objective of insurance is normally to provide

a. Family protection and/orb. Provision for old age.

Why Life Insurance?

You think twice before taking the plunge into buying life insurance. Is buying insurance is necessity now? Spending an extra amount as premium at regular intervals where do you not see immediate benefits does not seem a necessity at the moment. May be later.

Well you could be wrong. Buying insurance cannot be compared with any other form of investment. Insurance gives you a life long benefits and the returns will definitely come but only when you need it the most i.e. at the right time. Besides buying insurance early in life is one of the wise decisions you could take. Because the premium you would be paying would comparatively lower.

Most important of all it provides you with the unique sense of security that no other form of investment provides. It gives you a sense of financial support especially during that time of crisis irrespective of the fluctuation in the stock market. Insurance provides for your career goals right from the childhood years.

If the eating member of the family is no more your child’s educational need will not suffer. In fact his higher education too will be provided for. You

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need not spend sleepless night thinking about how to save for child’s marriage. Life insurance will take care of that typical once-in-a-life-time spending on marriage.

An accident or a disability may be devastating but a life insurance policy can be of utmost support for the family during such times too. Besides it provide for addition benefits such as bonuses. You need not worry about the your retirement years. The rising prices, taxes, and your lifestyle will be taken care of easily. And you can relax and spend your old age in comfort and peace.

Need for Life Insurance:

The need for life insurance comes from the need to safeguard our family. If you care for your family’s need you will definitely consider insurance.

Today insurance has become even more important due to the disintegration of the prevalent joint family system, a system in which a number of generations co-existed in harmony, a system in which a sense of financial security was always there as there were more earning members.

Times have changed and nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of insecurity is observed in it today besides, the family has shrunk. Needs are increasing with time and fulfillment of these needs is a big question mark.

How will you be able to satisfy all those needs? Better lifestyle, good education, and your long desired house. But again – you just cannot fritter away your earnings. You need to save a part of it for the future too – a wise decision. This is where insurance helps you.

Factors such as fewer numbers of earning members, stress, pollution, increasing competition, higher ambitions etc are some of the reasons why insurance has gained importance and where insurance plays a successful role.

Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and looks forward to relaxing can be painful if not planned properly. Have you consider the increasing inflation and taxes? Will your

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investment offer you attractive return under such circumstances? Will it take care of your family after you? An insurance policy will definitely take care of these and a lot more. Insurance today has opened up new vistas for every section of society. Even for a village farmer insurance holds a lot of potential. Considering how dependent our agriculture system is on the monsoon, the farmer sees a dim future. The uncertainty of the monsoon too can be taken care of by insurance. Looking at the advantages of the insurance policy a number of farmers have gone into the insurance. Insurance has become a necessity today. It provide timely financial as also rewarded with bonuses.

When is the right time to buy Insurance?

Buying life insurance cannot ever be compared with other investment decisions since it is very much contrast with those stock market investments where you wait for the right time to buy and sell. Neither is this like receiving tips on particular scrip doing well in the market and holding great future prospects.

Buy life insurance at the earliest. Do you know when you will fall ill? Are you sure about your future income earning potential? Are you sure you will never meet an accident? If not buy insurance now.

This is because the future is always uncertain. Just as buying insurance is a necessity so also buying insurance early in life is important too. With proper financial planning one can work out as to how much money an individual is entitled to after the end of a particular term. A policy that fulfills your child’s future education needs would have to be timed appropriately so that he receives the policy amount at the time when he needs it the most.

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What does the Life Insurance provide?

The proceeds accruing from life insurance policy can be utilized for

1. Final expenses resulting from death.

2. Guaranteed maintenance of lifestyle.

3. Replacement of income.

4. Mortgage or liquidation payment.

5. Cost of education.

6. Estate and other taxes.

7. Continuity and security of interest.

Why is Insurance superior to other form of saving?

An immediate estate is created in favor of the policyholder.

Protection in case of death.

Liquidity in case of need – easy loans are available.

Tax relief – income tax, wealth tax, etc.

Policies can be offered as collateral security.

Policies can be taken under M.P.W. Act 1874, to protect against creditors.

In simple words, insurance protect against untimely losses. Insurance has been found useful in the lives of persons both in short term and long term. Short term needs like sudden medical costs and long term needs like marriage expenses etc can be meet with using life insurance.

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HISTORY OF

INSURANCE

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History of Insurance:

The story so far

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be repaid with interest when the goods arrived safely. In 2100 BC, the code of Hammurabi granted legal status to the practice.

That perhaps, was how insurance made it’s beginning.

Life insurance, on the other hand, had its origin in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help supervisors by making some payment.

As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like.

The first step

Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd’s Coffee House in London, where merchants, ship owners and underwriters met to discuss and transact business to become one of the first modern insurance companies.

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Entry of companies

The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC.

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefits of ministers and their dependents. This was followed by the formation of Fire Insurance Corporations, first in New York City (1787) and then in Philadelphia (1794).

However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups.

The growing years

The 19th century shows huge developments in field of Insurance, with newer products being devised to meet the growing need of urbanization and industrialization.

In 1835, the infamous New York fire drew people’s attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British government passed the Workmen’s Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents.

With the advent of the automobile, public liability insurance, this first made its appearance in the 1880s, gained importance and acceptance.

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In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low cost, members-only insurance.

In India

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Corporation of India’s corporate headquarters, is derived from Rig Veda. The term suggests that a form of “community insurance” was prevalent around 1000 BC and practiced by Aryans.

Bombay Mutual Assurance society, the first Indian Life Assurance society, was formed in 1870. Others companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s.

It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being setup.

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 Insurance Act of 1938 that looked into investments, expenditure and management of these companies.

As a result, the government decided nationalizes the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies.

Some of the important milestones in the life insurance in India are:

1912: The Indian Life Assurance Companies Act enacted as the First statue to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the Government to collect statistical information about both Lives And Non life insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interest of The insuring people.

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1956: 245 Indian and foreign insurers and provident societies taken Over by the central government and nationalized. LIC Formed by an Act of Parliament, viz. LIC Act, 1956, with a Capital contribution of Rs. 5 crore from the government of The India.

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 turn witnessed over a period of almost two centuries.

Insurance sector reforms:

In 1993, Malhotra committee, headed by former Finance Secretary and RBI Governor R.N.Malhotra, was formed to evaluate the Indian insurance industry and recommended its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently Underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”

The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. However, at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

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The Insurance Regulatory and Development Authority (IRDA):

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously struck to its schedule of framing regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting 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 work force 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.The important functions of IRDA are as follows:

To exercise all powers & functions of controller of Insurance. Protection of the interest of the policyholders. To issue, renew, modify, withdrawn or suspend certificate of

registration. To specify requisite qualification & training for insurance

intermediaries & agents. To promote & regulate professional organization connected with

Insurance. To conduct inspection/investigations etc. To prescribe methods of Insurance Accounting. To regulate investment of funds & margins of solvency. To adjudication upon disputes. To conduct inspection & audit of insurers, intermediaries & other

organizations concerned with Insurance.

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TYPES OF

INSURANCE

POLICIES

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Types of Insurance Policies:

Though there are lots of policies available in the market under different names and by different companies, the policies can broadly be classified into following categories:

Term Insurance policy. Whole life policy. Money back policy. Endowment policy. Pension plans or Annuities.

Term Insurance policy:

Term insurance provides life insurance coverage for a specific period of time. Presently one year, five year, ten year, and fifteen year, are the periods one can buy term life insurance policy. If the insured person dies during the period the insurance is in force, the insurance company pays off the face value of the policy. If the insured lives longer than the term of the policy, the policy is no longer in effect and nothing is paid.

Term insurance is the least expensive form of life insurance. It is commonly used when the insured needs temporary protection or can’t afford the premiums for the other forms of life insurance. The other reason an insured may want term insurance is to purchase life insurance and invest the difference between the term policy and cash value policy elsewhere.

Term insurance comes in several forms. There is renewable & non-renewable. Non-renewable means that on the expiry of your policy you must go under another physical test and filling out another questionnaire. On the other hand, with renewable policy you do not need to undergo these formalities again and you automatically re-qualify to continue your policy.

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Then there is convertible & non-convertible policy is the one which can be converted into a permanent policy, whereas non-convertible is the one which can not be converted into a permanent policy or in other words the policy can not be converted to any form of life insurance policy.

Whole life policy:

The whole life policy provides insurance coverage for the entire life of the insured regardless of how many years the insurance to paid. Premium may be paid throughout the insured entire life or for a portion of his life. Additionally the premium can be paid in one lump sum when the policy is taken out. This is referred to as single premium whole life policy.

When the premium is paid throughout the life it is known as straight life policy, but when the premium is paid for a specified period of time it is known as limited life policy.

The premiums are higher for whole life insurance as opposed to term insurance. The reason for this is that the policy helps investment features as well as death benefits. The cash value portion of the whole life insurance belongs to the insured. One can take it out in the form of policy loans or cash the policy in. Another advantage of whole life insurance is that the premium are fixed, i.e. regardless of your is, you pay the same amount for the coverage each year.

Universal life insurance policy:

Universal life insurance is a variation of whole life. The difference is that with universal life insurance part is separated from the investment portion of the policy. The cash value portion of the policy is treated, as an accumulation fund and investment income is credit to the accumulation fund.

Money back policy:

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Money back policies provide the periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive.

An important feature of this type of policies is that in the event of the death at nay time within the policy term, the death claim comprises the full sum assured, without deduction of nay of any of the survival benefit amount, which may have already been paid as money back components. Similarly the bonus is also calculated on the entire sum assured.

Endowment policy:

An Endowment policy covers the risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy. This feature of payment of endowment to the policyholder when the policies term is complete is responsible for the popularity of endowment policies.

The amount received on maturity can either be utilized either to buy an annuity policy to generate a monthly pension for the rest of the life, or put it into any other suitable investment of our choice. This is one important benefit, which the endowment policy offers over a whole life insurance policy.

Overall, endowment policies are the most suitable of all insurance plans for covering the risk to a family breadwinner’s life not only do these policies provide financial risk cover for the family, were the policy holder to die prematurely but the insurance amount is also repaid once this risk is over. The endowment amount can then be used for meeting major expenditures such as children, education and marriage etc.

Alternately, the endowment sum is available for a suitable investment geared to providing an income for the remainder of once own life. These types of plans are particularly suitable to those who other then having a risk cover is also interested in a saving component simultaneously.

Pension plan or Annuity:

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An annuity is an investment that we make, either in a single lump sum or through installments paid over a certain number of years, in return for which we receive a specific sum every year, every half-year of every month, either for whole life or a fixed number of year.

After the death of an annuitant or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, perhaps along with a small addition, calculated at that time. Annuities differ from all the other form of life insurance in one fundamental way-an annuity does provide any life insurance cover but instead offers a guaranteed income either for life or a certain period.

Typically annuities bought to generate income during one’s retired life, which is why they are also called pension plan. Annuity premiums are payments are fixed with reference to the duration of human life. Settlement Options:

When the life insurance policy becomes payable, the insured or the beneficiaries may elect to take payment in one lump sum. 1-Jowever, when the insured or the beneficiaries, elect not to take a lump sum payment, there are several other options available to him for receiving his payment which are as follows:

Interest Option:

According to this option, the entire proceeds are left with the insurance company and it pays a guaranteed interest rate on your amount, it is similar to leaving our IT100CY in a savings account. At any time in the future, the beneficiary can withdraw the money.

Fixed Amount Option:

In this option the beneficiary receives a fixed amount of money each month until the proceeds are exhausted.

Fixed Period Option:

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The fixed period option will pay the beneficiary equal payments over a fixed period of time, which may be 10 years, 20 tears or even just 5 years. Excess interest earned will increase the amount of these payments.

Life Income Option:

This option provides the beneficiary with the proceeds paid over the rest of his life. 1-lowever when the beneficiary dies the balance of the policy is considered used up.

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ICICI’S POLICIES

OR

PRODUCTS

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I CICI Prudential’s Insurance Policies / Products:

ICICI Pru Forever life:

An ideal solution for the people around 30 years of age, which offers retirement benefits and takes care of your present protection needs. The benefits being: Postponement of retirement age. Flexibility to choose from 4 annuity options and 4 modes of pension payment. Health cover till age 65 through add-on benefits. 100% spouse pension. Tax benefits u/s 80 CCC (l) for investment up to Rs. 10,000.

ICICI Pru Lifetime pension :

A regular premium market — linked pension plan. Part of your investment is used as premium for your chosen death benefit (if any, you have the option of choosing zero death benefit) and the balance is invested in the plan of your choice to save for your retirement. On retirement, the accumulated value of your investment is used to provide pension. It gives you the power to choose from 3 plans, 4 annuity options, vesting date (between 50- 70 years) and 3 add-on benefits. Tax benefits u/s 80 CCC (1) for investments up to Ps, 10.000.

ICIUPru Life link Pension:

A single premium market-linked pension plan. The insurance coverage is equal to 105% of the initial premiums and the top-ups that you make. You can opt for a zero insurance cover too. You will choose a term for investment after which you will start receiving a pension. You also have the power to choose from 4 different pension options. Tax benefits u/s 80 CCC (l) for investment up to Rs. 10,000.

ICICI Pru Reassure:

A safe and comprehensive plan for those about to retire or have retired. It combines the best of insurance and investment. It offers: liquidity with assured and steady annual returns. Life cover for up to 110% of premium paid. Complete safety of principal paid. Tax benefits u/s 88 available (as per prevailing income tax laws).

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ICICI Pru Life Time :

To accommodate your life’s changing investment and protection needs, this plan gives you flexibility and control. You can vary your cover in relation to your investment, while maintaining the same premium; choose amongst 3 market-linked investment options; maximiser, balanced or protector plan. Also get enhanced insurance protection with add- on benefits at a nominal extra premium. Tax benefits u/s 88 available (as per prevailing income tax laws).

1CIC1 Pru Smart Kid :

Guaranteed payments throughout your child’s educational life, no matter what! These benefits are available under two plan structures for you to choose from. In the unfortunate event of your not being there: the Sum Assured is paid immediately to your family, all future premiums are waived and the educational benefits u/s 88 available (as per prevailing income tax laws).

ICICI Pru Save ‘n ‘Protect: An ideal policy combining savings and life cover. It gives you the flexibility to choose between our add-on benefits for a nominal extra premium to ensure that you get comprehensive protection. What’s more you also stay insured for 5 years after maturity for 50% of the sum assured (on the basic policy) without having to pay for it. Tax benefits u/s 88 available (as per prevailing income tax laws).  ICICI Pru Cash Back :

An ideal, plan for every milestone in life. It combines life cover + Liquidity + savings. It offers the advantage of liquidity by providing survival benefits after every 3 or 4 years. You can also choose to benefit from our add-on benefits for a nominal extra premium. Tax benefits u/s 88 available (as per prevailing income tax laws).

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ICICI Pru Life Link: An ideal market-linked single premium insurance plan that enables you to enjoy the upside of market returns, while protecting your family from the downsides. It gives you the flexibility of choosing your investment options. You could choose between a maximiser, protector or balanced plan. Tax benefits u/s 88 available (as per prevailing income tax laws).

ICICI Pru Assurelnvest:

This is an ideal plan for a one-off investment with healthy returns and the added benefit of insurance protection. It’s a good way to use that windfall or a hefty bonus. This policy has a fixed term of 5, 7 or 10 years. Tax benefits u/s 88 available (as per prevailing income tax laws).

ICICI Pru Lifeguard:

An ideal, low cost policy that covers your family from life’s uncertainties. It comes with a choice of two convenient premium payment modes — one time and regular. The regular premium option gives you the flexibility of accident and disability cover, for a nominal extra premium. Tax benefits u/s available (as per prevailing income tax laws).

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ABOUT LIFE

INSURANCE ADVISOR

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About Life Insurance Advisors:

Who is Life Insurance Advisors or Agents:

An agent is the representative of an insurance company who sells different policies or product to its clients. Another term used for insurance agents is advisors; ICICI Prudential life insurance company Ltd. introduced this term.

Today in life insurance company’s advisors are known to be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis; they receive a certain commission on the policies they sell to the clients.

The eligibility required to become an advisor/agent is that he/she should be 12th pass to operate in urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to undergo 100 hrs training according to IRDA norms, which is compulsory.

70-75% of profits gained in life insurance business are through advisors/agents.

Who can become Insurance advisor/Agent :

Any person who is 12th pass and having a minimum age of 18 years can become insurance adviser but an Insurance company wants such persons who are having a very high zeal to earn more and more and should have a very good communication skill, which can satisfy the customer. Relationship skill is must in an insurance advisor/agent.

ICICI Prudential wants mainly five things in an Insurance Advisor:

Confidence Self motivation Persuasion Urge to be financially independent Relationship skills Most preferred profiles to recruit as an insurance advisors/agents

Full time advisors: Non life insurance agents, Credit card dealers, Post Office agents, Mutual fund agents, Persons having very good convincing power

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Part time advisors: Chartered accountants, Investment consultants. Tax Consultants, Property dealers, Doters, Advocates, Direct selling agents (DSA), Teachers, etc.

To provide ongoing financial advice for his/her clients:

Identify future clients Making appointments Conduct financial review meetings with prospects/clients Close sale Get referrals Provide service to clients

Follows internal sales and reporting system:

Working environment of company for an Insurance advisor:

To be a part of a world class sales team Work from own office or residence Work full time or part time Earn commission, bonus and incentives No upper limits on earnings Flexible career

Opportunity’ for an Insurance advisor/agent :

No startup capital required Flexible working environment Be your own boss Unlimited earning potential To be part of a world class team

Benefits Jar an Insurance advisor/agent :

A premium product portfolio that caters to a wide range of financial needs

Excellent back-end support Attractive payments and benefits Round the clock customer service

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Extensive for that edge over advisors competition

Recognition programs for an insurance advisor/agent

Foreign trips and seminars Select club membership i.e. President’s club, Achiever’s club,

ICICI Pru star club MDRT membership

Career progression & Future opportunities for an Insurance advisor

Pinnacle program Fast track pinnacle program

Program for career progression of advisors to Unit managers: Full time career, Growth to Senior Agency Manager, Fast trek advisor’s career, etc   C ompany ‘s support to the advisors

Field visits Training on product and selling skills Regular business reviews Be a coach and Mentor Recognize high performers Help you become financially independent

Company ‘s expectations from their Advisors / Agents Achieve sales targets Participate in all meetings Attend all training programs Weekly reviews at the office Follow the sales process Follow weekly reporting process

Payments & Benefits- Commission Structure

 

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RECRUITMENT AND SELECTION PROCESS

RECRUITMENT:

Recruitment is the process of exploring the sources of supply of the required

personnel and stimulating the prospective employee to apply for job in the

organization.

Recruitment is the first employee’s process, which aim to developing and

maintaining manpower resources for the organization.

Recruitment is a positive process because it attracts a large number of

qualified people from which the final selection can be made.

According to E. MC Farlan it is the process of attracting the potential

employees to the company. The aim of recruitment policy should be to

attract good quality applicants and to undertake reliable and cost effective

selection decisions.

According to Flippo , recruitment is the process of searching for prospective

employees and stimulating and encouraging them to apply for jobs in an

organization.

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Recruitment needs are of three types-

Planned

Anticipated

Unexpected

SOURCES OF RECRUITMENT:

RECRUITMENT

INTERNAL SOURCES EXTERNAL SOURCES

1.Transfers 1. Press Advertisement

2.Promotions 2. Educational Institutions

3. Placement Agencies

4. Employment Exchanges

5. Labour Contractors

6. Recommendations

7. Unsolicited Applicants

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INTERNAL SOURCES:

Internal sources consist of the following:

1. Permanent, temporary and casual employees already on the pay of the

organization are a good source. Vacancies may be filled up from such

employees through promotions, transfers, and upgrading and even

demotion.

2. Retired and retrenched employees who want to return to the company

may be rehired.

3. Dependents and relatives of deceased and disabled employees.

EXTERNAL SOURCES:

External sources of recruitment lie outside the organization. These

are as follows:

1. EDUCATIONAL AND TRAINING INSTITUTIONS:

Various institutes provide facilities for campus interviews and placement.

Good institutions have placement cells/officers to serves as liaison

49

between the employers and the students. This source is known as campus

recruitment.

2. RECRUITING AGENCIES:

Several private consultancy firms e.g. A.F. ABC consultants etc. these

agencies are particularly suitable for recruitment of executives and

specialists. They perform all the functions of recruitment and selection so

that the client is relieved of this burden. But the cost of recruitment

through these agencies is quite high.

3. EMPLOYMENT EXCHANGES:

Government of India has established public employment exchanges

throughout the country. These exchanges provide information about job

vacancies to the jobseekers and help employers in identifying suitable

candidates. They contain a data bank of candidates for different types of

jobs.

4. CASUAL CALLERS:

Due to widespread unemployment in the country, many jobseekers visit

the offices of well-known companies on their own. Such caller is

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generally considered a nuisance to the daily work routine of the

enterprise. But a waiting list of such unsolicited visitors can be prepared

to fill temporary and lower level jobs. It is very expensive source of

recruitment.

5. LABOUR CONTRACTORS:

Manual workers can be recruited through contractors who maintain close

links with the sources of such workers. This source is often used to

recruit labour for construction jobs.

6. GATE RECRUITMENT:

Unskilled workers may be recruited at the factory gate. In some

industries like jute a large number of workers works as badli or substitute

workers. These may be employed whenever a permanent worker is

absent. More efficient among these badli worker may be recruited to fill

permanent vacancies.

7. SIMILAR ORGANISATION:

Experienced employees can be recruited by offering better benefits to the

people working in similar organizations. Newly established organizations

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of well-known business houses often lure experienced executives and

technical experts from the public sector.

8. RECOMMENDATIONS:

Office bearers of trade unions are often aware of suitability of candidates.

Management can enquire these leaders for suitable jobs. In some

organizations there are formal agreements to give priority in recruitment

to the candidates recommended by the trade union.

9. PRESS ADVERTISEMENTS:

Advertisements in newspapers and journals are a widely used source of

recruitment. The advantage of this method is that it has a very reach. One

advertisement in a leading daily can cover millions of persons throughout

the country. Cost per person is very low. This method can be used for

clerical, technical and managerial jobs.

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STEPS IN RECRUITMENT PROCESS:

The recruitment process consists of the following steps :

1. Recruitment process generally begins when the personnel department

receives requisitions for recruitment from any department of the

company.

2. Locating and development the sources of required number and type of

employees.

3. Identifying the prospective employees with required characteristics.

4. Communicating in the information about the organization, the job and

the conditions of service.

5. Encouraging the identified candidates to apply for jobs in the

organization.

6. Evaluating the effectives of recruitment process.

METHODS OF RECRUITMENT:

Recruitment methods are the means by which an organization establishes

contact with potential candidates, provide them necessary information

and encourages them to apply for jobs.

Various methods employed for recruiting employees may be classified

into the following categories

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1. DIRECT METHODS:

Under direct recruitment scouting, employee contacts, manned exhibits

and waiting lists are used. These include sending traveling recruiters to

educational and professional institution; employee contact with public

and manned exhibits.

Most college recruiting is done co-operation help in attracting students,

arranging interviews furnishing spaces, and providing student resumes.

Other, direct method include sending recruiters to conventions and

seminars, selling up exhibits at fairs, and using mobile offices to go to the

desired centers. Some organizations use waiting lists of candidates who

have indicated their interest in jobs in person, through mail or over

telephone.

2. INDIRECT METHODS:

Advertisements in newspapers, journals, on the radio and television are

used to publicist vacancies. This method is appropriate when the

organization wants to reach out of a large target group scattered

geographically.

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Local newspaper can be a good source of blue-collar worker, clerical

employee and low-level administrative employee.

According to advertisement tactics and strategy in personal recruitment,

three points need to be born in mind before and advertisement is inserted.

FIRST, to visualize the type of application one is trying to recruit.

SECOND, to write a list of the advantages of the company offers in the

other word, why the reader should work for the company.

THIRD, to decide where to run the advertisement, not only in which area

but in which newspaper having a local, state or nation wide circulation.

3. THIRD PARTY METHODS:

Various agencies can be used to recruit personnel. In addition, friends

and relations of existing staff and deputation method can also be used.

These include the use of commercial or private employment agents, state

agencies, placement office of school colleges and professional

association, casual labor or application at the gate etc.

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SELECTION PROCESS

Selection is the process of choosing the most suitable persons out of all

the applicants. In this process relevant information about applicants is

collected through a series of steps so as to evaluate their stability for the

job to be filled. Selection is the process of matching the qualifications of

applicants with the job requirements; selection divides all the applicants

into two categories

Suitable

Unsuitable

The purpose of selection is to pick up the right person for every job.

Selection is an important function as no organization can achieve its

goals without selecting the right people. Faulty selection leads to wastage

of time and money and spoils the environment of an organization.

Scientific selection and placement personnel can go a long way in

building up a stable work force. It helps to reduce absenteeism and labour

turnover. Proper selection is helpful in increasing the efficiency and

productivity of the enterprise.

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The selection process can be successful if the following conditions are

satisfied.

1. Some one should have the authority to select. This authority comes

from the employment requisition as developed through an analysis of

the workload or work force.

2. There must be some standard of personnel with which applicant can

be compared.

3. There must be a sufficient number of applicants from whom the

required number of employees may be selected.

SELECTION PROCEDURE

The selection procedure consists of a series of steps. Steps involve in

employee selection may be described as under:

1. PRELIMINARY INTERVIEW

First of all, initial screening is done to weed out totally

undesirable/unqualified candidates at the outset. Preliminary interview is

essentially assorting process in which prospective candidates are given

the necessary information about the nature of job and the organization.

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Preliminary interview saves time and efforts both the company and

candidate. It avoids unnecessary waiting for a rejected candidate and

waste of money on further processing of an unsuitable candidate.

Preliminary interview helps to determine whether it is worthwhile for a

candidate to fill up application form. Preliminary interview is the first

contact of an individual with the organization.

APPLICATION BLANK

Application from is a traditional and widely used device for collecting

information from candidates. Small firms design no application from and

ask the candidates to writ details about their age, marital status,

education, work experience, etc. On a plain sheet of paper. But big

companies use different types of application forms for different jobs.

Generally, an application form contains the following information:

2. Identifying information – name, address, telephone no, etc

3. Personal information- age, sex, place of birth, martial status,

dependents, etc

4. Physical characteristics- height, weight, eye sight, etc

5. Family background

6. Education- academic, technical and professional

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7. Experience- job held, employers, duties performed, salary drawn, etc.

8. References

9. Miscellaneous- extra curricular activities, hobbies, games and sports,

membership of professional bodies, etc.

SELECTION TEST

Psychological tests are being increasingly used in employee selection.

A test is a sample of some aspect of an individual’s attitudes, behavior

and performance. It also provides a systematic basis for comparing the

behavior, performance and attitudes of two more persons. Test are

based on assumption that individual differ in their in their job related

traits which can be measured. Test helps to reduce bias in the

selection by serving as a supplementary screening device. Tests are

useful when the number of applicants is large.

EMPLOYMENT INTERVIEW

An interview is a conversation between two persons. In selection it

involves a personal, observational and face to face appraisal of

candidates for employment.

A selection interview serves three purposes

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Obtaining information about the background, education, training,

work history and interests of the candidate,

Giving information to candidates about the company, the specific job

and personnel policies

Establishing a friendly relationship between the employer and the

candidate so as to motivate the successful applicant to work for the

organization.

MEDICAL EXAMINATION

Such examination serves the following purposes

It determines whether the candidate is physically fit to perform the

job. Those who are physically unfit are rejected.

It reveals existing disabilities and provides a record of the employee’s

health at the time of selection.

It prevents the employment of people suffering from contagious

diseases.

REFERENCE CHECKS

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If an applicant is declared successful, some personal information is

collected about the candidate from those persons who have been

entered in the form as reference.

This information is chiefly connected with the character of the

applicant, his social relation’s background etc.

The opinion of referees can be useful in judging the future behavior

and performance of a candidate.

FINAL APPROVAL

The final interview is usually conducted in two stages.

FIRSTLY, the personnel manager gets a detailed information about

the applicant and after they are found competent after his assessment,

they are send to department manager concerned for interview’s.

SECONDLY, the department managers satisfy themselves after a tete-

a-tete in detail about the nature of work and then they are declared

successful.

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PSYCHOLOGICAL TESTS

Psychological tests are being increasingly used in selecting

employees. These tests provide a systematic procedure for sampling

human behavior. Psychological tests are based on assumption that no

two individual are equal in term of intelligence, attitudes, personality

and other traits. Psychological tests help to predict the success of a

candidate on the jobs. They help to reduce bias and subjective

judgment in the selection process. They are more useful for

identifying and screening out unsuitable candidates. Tests are also

critised for invading the privacy of candidates.

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TYPES OF TESTS

1. APPTITUDE OR POTENTIAL ABILITY

These tests measure the latent ability or potential of a candidate to

learn a new job or skill.

Such tests are of the following types:

A. MENTAL OR INTELLGENCE TESTS

The assumption behind this test is that a more intelligent person can

easily and quickly learn any job and the enterprise do not have to

spend more on their training.

B. MECHANICAL APTITUDE TEST

These tests are measure a person’s capacity to learn a particular type

of mechanical work. Capacity for spatial visulation, perceptual speed

etc. these are useful for selecting apprentices maintenance workers

and mechanical technicians.

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C. SKILL TEST

These tests measure a person’s ability to perform a specific job. These

are primarily used for selecting worker who have to perform semi-

skilled and repetitive jobs.

1. ACHIEVEMENT OR PROFICIENCY TEST

These teste are measure what a person can do. Their tests are of two

types

A. JOB KNOWLEDGE TEST

Such tests are useful in the selection of stenographers, typist, office

worker etc.

B. WORK SAMPLE

In these tests a candidate is given a piece of work to how

efficiently he does it.

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2. PERSONALITY TEST

These tests are used to select supervisors and executives and for

counseling people. These are widely used in industry as these provide an

all round picture of a candidate’s personality.

These are of three types

A. OBJECTIVE TESTS

These tests measure neurotic tendencies, self-sufficiency and self-

confidence.

B. PROJECTIVE TESTS

The way in which he responds to these stimuli reflect his own values and

motives and personality.

C. SITUTATION TESTS

Group discussion and basket methods are used to administer these test

these test measure a candidate’s reactions when placed in a particular

situation.

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3. INTEREST TESTS

These test are inventories of a candidate’s like and dislikes in relation to

work. There are used to discover a area of interest and to identify the

kind of work that will satisfy him.

DATA ANALYSIS AND INTERPRETATION

RECURITMENT AND SELECTION PROCESS AT ICICI

WHEN VACANCY ARISES IN ANY DEPARTMENT

In ICICI the procedure of selection and recruitment starts by the

availability of vacancy in any department.

The head of the related department consult with the HR Manager in case

of vacancy and than process starts.

FIND OUT EXTERNAL OR INTERNAL MEMBER

The nature of vacancy is main aim of dependence an internal and external

source of member. The internal members are those members who are

already on the payroll.

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First preference should be given to internal employees. After that

external should be taken if internal not find out suitable. If the post is

vacant promotion is done or the post is merged and the power and duties

of that post are given to its relative post holder.

ADVERTISING IN THE NEWSPAPER OR CONSULTANT

After that the advertising for vacancy is given in the newspaper or some

consultant by the permission of general manager (HR and ADM.) the no

of vacancies, qualification, work experience are mentioned in the

advertisement and the last date for submission of the application.]

RECOVERY OF APPLICATION

When the advertisement is published in the newspaper, the applications

are received against the advertisement and against some private agencies.

Unconsolidated applications are also received from the applicants, who

mark direct esquires from the company time to time for the vacancies.

These applications are put up into the live bio-data bank for

consideration.

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SUITABLE APPLICATION OF CANDIDATE

A pool of application is received and than suitable application of the

candidate is selected. Only those applications are selected who satisfy all

the requirement of the desired vacancies end other are rejected by the

panel, left applications are put into application blank.

CALL FOR INTERVIEW

After selection of applicant the selected applicant informed to face the

interview. They are informed about the data, time and venue of the

interview and they are asked to bring their qualification certificate and

additional certificate if needed.

The candidate who applies for the post of managers and above is given

traveling allowances by the company.

INTERVIEW PANEL

The candidates who are selected for the interview have to face the panel

of members.

This panel includes

HR Manager

G.M (manufacturing)

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G.M (HRD& ADM.)

HOD

If the vacancy is some technical job then the panel includes

G.M (engg.) for technical job

G.M (fin.) for commercial job

Each member of penal has an assessment sheet containing 100 marks and

these are as follows

S.NO particulars total marks obtainedAcademic record 20Subject knowledge 40General knowledge 20Overall personality 10Overall suitability 10 100

Date

signature

Name

Designation

After passing the panel interview if the panel member thinks the

candidate is suitable for the job he is send to MD for final interview.

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OFFICE LETTER

After the selection of candidate the offer letter is provided to the

candidate, which includes all the rules and regulations of the company.

The salary is also mentioned in offer letter.

APPOINTMENT LETTER

The appointment letter is given to the candidate, which mentions the post

and date of meeting with the GM regarding the joining date.

JOINING LETTER

When the candidate go in the company after getting the appointment

letter and satisfy all the terms and condition of the company, he gives a

written letter that I have joined the post from this particular date and

time.

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RECRUITMENT

AND

SELECTION

PROCEDURE

OF

ADVISORS

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Recruitment and Selection of Insurance Advisors:

As we know that “Recruitment involves seeking and attracting a pool of

people, from which qualified candidates for job vacancies can be chosen.

Recruitment sets out the necessary stages to clarify what kind of person is

required, where he/she might be found and how to make the right choice”.

Recruitment of Life insurance agent is also a very impressive criterion

because in this process we need to recruit and select those persons who bear

some special characteristics, which are very necessary to sell insurance. Life

insurance is an intangible product and it needs those insurance advisors who

are having tremendous skills to sell an intangible product.

The key to good selection is preparation. So many people are proud of their

ability to pick a good sales person and so often, that person is good but not

at the particular job which needs to be done. It is vital to be clear about what

job needs doing and what kind of person would do it best; and then to find

that person (or person. Once the plan has been decided, the choice of

candidate should be made carefully.

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The effectiveness of the unit manager is dependent to a great extent on the

effectiveness of the team of advisors supporting him, because an advisor

works under a unit manager. So it is very important to recruit a very good

team of Life insurance advisors who can give their best to increase the

effectiveness and the profit of the company. ICICI prudential give very

much stress on it and try to recruit only those persons as a life insurance

advisor who is having some key skills specifies by the company.

Further we will show the recruitment and selection procedure of life

insurance advisor in ICICI prudential insurance company ltd, and try to

analyze whether it is the best process of recruitment or company can do

certain new modifications to enhance their recruitment processor for the

increment of company’s effectiveness. From the next page, we will see the

recruitment and selection procedure of life insurance advisors.

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Sequence of recruitment process of advisors in ICICI

Prudential:

Before an organization begins recruiting applicants, it should form a

checklist of questions, which outline a chronological sequence for the

recruitment and selection process. Same is to be done with the ICICI

prudential’s recruitment and selection procedure, it also forms a checklist of

questions, which are termed as the initial starter for the recruitment

procedure. The questions are given below with the specifications along with

them:

1. What kind of job is to be filled?

This question has a wide spectrum of answers. Hence, to answer this

question in to tally following sub-questions are to be answered.

• Name of the job: Life Insurance Advisor

• Who is the boss: No Boss

• Job objective: To sell Life Insurance policies or product and achieve sales

targets.

• How far the job holder is personally responsible for achieving results :

job holder will not be responsible for achieving the sales targets because in

this kind of job there is no salary paid, no boss over them and it is totally

commission based job, so it is on the advisor whether he think himself

responsible or not.

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• This job is principally dealing with the end users who are interested to be

insured.

• ICICI Prudential looking for the persons who fulfill this job for life long

because life insurance business is a life long business and will not end till

the human being is their on the earth.

• Salary and Remuneration: it is totally commission-based job and 1CICI

do not provide any fixed salary for this. There is much scope of getting a

huge collection of incentives in the form of gifts, trips and other services.

After getting the answer of these questions, we will move towards next

question.

 

4. What sort of person would do the job successfully?

It is very important to know that what sort of person would do this job

of Life insurance advisor successfully. ICICI prudential specifies

some qualities, which must be there in a Life insurance advisor. These

qualities suggest some skills that are listed below:

Confidence: This is the main skill, which an advisor must contain because

till he will not confident, he would not be able to convince the different kind

of people.

• Self-Motivation: Self-motivation is an essential quality, which must be,

possess by an insurance advisor because in this job, rejection is much more

than acceptance, so an advisor has to be very strong from heart and should

not depressed soon.

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• Persuasion: It is one of the very effective qualities, which must be there in

an insurance advisor. It shows the perceiving ability of an advisor for his

job.

• Urge to be financially independent: for a job which is commission based,

an urge should be their in an advisor to become financially independent, then

only he would be able to generate more money for himself and for the

company.

• Relationship Skills: this is a very necessary element of quality shown in

an advisor by the ICICI prudential because this skill helps the advisor to

make good relation from his customers which is very necessary for the

future of the company.

3. Where will this person be found?

Now, we know what the job is and what kind of person is required for the

job-only we need to find this person. The persons for this kind of job of an

life insurance advisor can be found at many places through many resources

hut most of the insurance agents chosen from the relations and with direct

contacts. The following are the sources from where we can found out the

persons who can become good life insurance agent:

• Employment agencies: Employment agencies can be used as a wide

source for the persons to this job.

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Advertising: It also plays a very effective role in finding of the

persons for becoming an insurance agent. ICICI prudential also use

this source.

Educational institutes: They are one of the main sources for the

company to find out the person as an advisor.

Direct contact with people: ICICI prudential also uses direct

contacts with the people and offers business opportunity to them,

company representative’s contact to the persons and explains business

opportunity presentation to them.

5. Which person is to be recruited?

The simple answer to this is that the one who best fits the specification and

who has the essential characteristics as defined should be recruited. This

implies a structured approach of three steps. These are:

• First, compare company’s specification for an advisor with that of the

prospect’s specifications and remove all those who do not meet the essential

criteria.

• Secondly, move on to those areas where the ‘Measuring Instruments’ and

an assessment at interview are needed. For instance,

o Education: which should be at least 12th pass.

o Age: above 18 years.

o Work history: fresher can also apply.

o Family background: does not matter but it should be Indian.

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o Ambitions and Future plans: should possess high ambitions and zeal

to become financially independent.

Thirdly, involves the identification pattern of behavior, which will

help in forming judgments.

After all the three steps have been followed and care has been taken to see

that the candidate fits into the specific job requirements one can be sure of

choosing the right candidate for the right job.

 

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Selection and Placement of Insurance Advisors :

“A selection system is a set of successive screens at any of which an

applicant may be dropped from further consideration”. The process of

selection of insurance advisors differs from companies to company

depending upon the requirements. In ICICI prudential the applicant goes

through various stages, the chances of selection get better as more and more

stages are cleared.

Selection procedure: The following selection procedure is used by for the

selection of Life insurance advisor in ICICI prudential company.

• Preliminary interview: In this interview the applicant have face-to-face

interaction with the respective Unit Manager and clear out all his queries and

doubts about the job. After this interview session, the prospect gives his

confirmation whether he is interesting to join the organization or not.

• Formal application after the confirmation of the prospect the next step is

to filling up of application form with the submission of all the necessary

documents that are listed below:

- Birth certificate (10th class passing certificate, driving license, etc)

- Address proof (ration card, voter id card, telephone bill, etc)

- 6 passport size colour photographs

- Highest qualification certificates (Mark sheets)

- A demand draft of Rs. 1000 on the favor of” ICICI Prudential company

ltd”, payable at Mumbai

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After checking the form and all documents the operations department give

its confirmation that the prospect is genuine and is subject for further

process.

• Declaration of date of training and venue: After the previous step,

operation department give the details about the details about training date

and about the venue of the training. The training is a necessary part of the

selection procedure. This

 

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Training is under the curriculum of Insurance Regulatory and Development

Authority (IRDA). The duration of this training is 100 hours and it can he

get in three ways:

- Full-time training (10:00 AM to 05:00 PM)

- Part-time training (06:00 PM to 09:00 PM)

- Online training

Testing: After completing the training conducted by IRDA, a test is

conducted on the same venue. This test is taken based on training and

contains the syllabus, which is prescribed by the IRDA. This test and

previous training is necessary for every body who wants to become an

insurance advisor.

Issue of License: after passing out the test conducted by IRDA, a license is

issued from the IRDA. This license is the proof for the insurance advisor and

an advisor can start his work just after getting this license. Getting the

license is the last step in selection process.

Assignment to the Unit Manager: The following advisor is assigned to a

unit manager to whom he has to report about his work and about any query

concerning about insurance and about the company.

The above are the following steps which are use to select an Insurance

advisor/agent. The license issued by the IRDA is the only authorized power.

Which gives the person a right to do insurance. This license is supposed to

renew after every three years.

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RESEARCH METHODOLOGY

(a) Sample

In recruitment we have to choose one group of people who want to recruit in

such company.

We have decided to choose the area of New Delhi and picked up small

group of educated people and collect the sample regarding the recruitment

for the job of clerk through the questionnaire.

We have got the meaningful information about recruitment from those

people.

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(b) Instrument used

We have used several instruments for this project –

1. We have discussed about the advertisement of the job to the

various newspaper managers.

2. We have visited engineering & management institution Like

3. Using questionnaire for the target group of the people who want to

recruit in the company.

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(c) Methods of Data Collection

There are three main methods, which we have used in the company for

recruitment procedure:

1. Direct Method

Mr. Sanjeev Mittal (HR Manager of the company acted as a

Placement Officer. He sent representatives in many engineering &

management institutes in the area of New Delhi and adjoining area

of New Delhi, Traveling recruiters exchange information with the

students clarify their doubts, conduct, campus interview & short

listing another direct method is to ask employees of the

organization to contact the public and tell about the vacancies and

it also include – exhibits at fairs like Trade Fair, or using mail &

Telephone source.

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2. Indirect Method

They are using Advertisements in Newspapers, Journals.

A well though out and clear advertisement enables candidates to

assess their suitability so that only those possessing the requisite

qualification will apply.

This method is appropriate when the company wants to reach out

to a large group of people.

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3. Third Party Method

Various agencies can be used for recruitment of personnel.

Recruitment agencies – Several private consultancy firms

e.g. – ABC Consultants, A.F. Ferguson Associates etc.

perform recruiting function on behalf of client companies by

charging fees.

These agencies perform all the functions of recruitment &

selection so that the client is relieved of this burden.

Casual caller – Some time many Jobseekers visit the

company on their own.

Labour contractors – Manual workers recruited through

contractors who maintain close links with the sources of

such workers.

Gate recruitment – Unskilled worker recruited at the factory

gate. The notice of the job specified on the company gate.

Similar company – Engineers can be recruited by offering

better benefits to the people working in similar company.

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4. Data Analysis

People give more emphasis on:

Source %Age

Newspaper 50%

Visual Media on T.V. 30%

Consultancy firms 20%

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5. Data Analysis

Methods of recruitment:

Source %Age

Advertisements 30%

Newspapers 40%

Consultancy firms 20%

Labour Contractor 10%

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INTERPRETATION

1. For recruitment procedure most of the company uses newspaper

or journals very widely, the percentage is 40%.

The advantage for this method is that is has a very wide reach.

One advt in a leading daily newspaper can cover millions of

persons the throughout the country, the cost per person is very

low. This method is used for clerical, technical and managerial

jobs.

The people give more emphasis on this method because it is

easy source of recruitment.

2. 30% people give more attention to the visual media

advertisement like – T.V. or Radio, Internet etc.

Similarly 30% people adopting this method for recruitment

procedure.

3. Very few people get recruit through consultancy firm. Because,

now a days the consultancy firms charging very high service

cost. Even some consultancy firm charging one-month salary

after the selection of the concerned person.

4. Manual labour generally recruited through gate recruitment &

through labour contractor.

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CONCLUSION

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Conclusion

Life insurance is also now being regarded as a versatile financial planning

tool. Research indicates that Indians have four basic financial needs during

their life asset accumulation (such as buying a house or car), protecting their

family, securing their children’s education, and provision for their

retirement. So, while there are three basic types of insurance, these have

been structured with increased flexibility to meet focused requirements.

Furthermore, these can be enhanced with riders to protect one against

disability and provide monetary compensation at times of critical illnesses or

surgeries.

India being a country having a huge population of around one billion people

with only 32% of the insurable population in India possessing life insurance

the country has a vast potential, which has been left untapped till now.

For every insurance company life insurance advisors are the lifeline and a

very huge asset so each company try to recruit and select a potential force of

life insurance advisors because this is the advisors who generate maximum

business for the insurance company. Life insurance advisors provide a very

strong support to the insurance cornpan3 and do all possible efforts to

generate huge amount of profit to the company and for him.

In ICICI prudential recruitment and selection procedure is really very

impressive. By the help of this process, company recruits a very good class

of advisors .A detail study is done before starting the recruitment and

selection procedure that help the company to select the best advisors. The

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recruitment, selection and training process of life insurance advisors is a

slight long process because of the training provided by the insurance

Regulatory And Development Authority (IRDA).

Form the detailed study of recruitment and selection procedure of the life

insurance advisors we come on the conclusion that it is a very impressive

process carried out by ICICI prudential. This study helps us to understand all

the possible aspects related to the ICICI prudential’s recruitment and

selection procedure.

 

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RECOMMENDATIONS

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Recommendations:

Need to create and effectively deploy differentiated strategies in finding out more resources to recruit insurance advisors.

Right prospects identification and thus segmentation, which need to be appropriate.

Design and manage sales force, which yields high performance. More training of the employees can be done so that they produce best results.

Recruitment processes need to be slightly fast, so that prospects can retain same confidence as in starting.

Need to create better, differentiated detailed brochures for advisor’s recruitment.

Increase advisors sales force quality as well as quantity by employing some HR professional, who time to time take some actions for the improvement of insurance advisors.

More advertising strategies should be taken to grasp the attention of those people who want to become life insurance advisors.

Generate some innovative and alternative channels of distribution, using the sources that can straight play with the

emotions of the person and influence so high that it forces the human being to go for insurance and that to willingly. Recruit those prospects that really want to take this job as a challenge.

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BIBLIOGRAPHY

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Bibliography:

TATA yellow pages List of CA’s Website: www.iciciprudential.com ICICI’s brochure of advisors recruitment.

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QUESTIONNAIRE

Recruitment

Q1 What is your qualification?

Graduate –

Post Graduate –

Higher Secondary –

Q2 Are you technically or professionally qualified?

Yes No

Q3 Are you having experience?

Yes No

Q4 Have you got registered in Employment exchange?

Yes No

Q5 Do you have faith on consultancy firm?

Yes No

Q6 Do you go through with the employment newspaper?

Yes No

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Q7 You have collected information for this job through?

Newspaper –

T.V. or Radio –

Consultancy Firms -

Q8 What was your past job designation?

________________________________________________________

________________________________________________________

Q9 Which post do you want to apply?

________________________________________________________

________________________________________________________

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