Agent Recruitment--summer Training Report

RAJASTHAN TECHNICAL UNIVERSITY, KOTA A Project Report On Training Undertaken at

Titled “AGENT RECRUITMENT SKILLS AND MARKET RESEARCH OF INCOME NEEDS IN FUTURE GENERALI INDIA LIFE INSURANCE COMPANY LIMITED” Submitted in partial fulfilment for the Award of degree of Master of Business Administration (2008-2010)

Submitted by:-

Submitted to:-

Abhishek Chouhan M.B.A. (3rd Semester)

Mrs. Shalini Goyal

G.D. MEMORIAL COLLEGE OF MANAGEMENT & TECHNOLOGY

CERTIFICATE This is to certify that Mr. Abhishek Chouhan s/o Narendra Kumar Chouhan 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 Rajasthan Technical University, Kota 2008 – 2010.

Date: 16-01-2010

Prof: Manish Kachawa (Director)

PREFACE

I am very happy to place this project in the head of my esteemed readers. Work on the project of analysis of Future Generali Life Insurance agent’s recruitment and market survey is a very tough task but through the helping of my colleagues, professors and the other people it’s become simple. I would like to introduce myself as one of those aspirants, who are trying to make identity of their won in the crowd of approaches and opportunity. The project provides practical environment for us to explore. This report is the outcome of 45 days working with lot of enthusiasm and hardworking. Through this project, I got good experience and learned a lot about HR and as well as finance, which shall be of immense help in the future for me. I take this opportunity to present this report and sincerely hope that it would be of great use to its readers.

ABHISHEK CHOUHAN MBA 3rd semester

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. Ashish Sharma, Sales Manager of Future Generali India for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff of MBA Department, for their help and cooperation throughout our project.

ABHISHEK CHOUHAN 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 3. Objectives of the Research

4. Research Methodology 4.1

Title of the Study

4.2

Duration of the Project

4.3

Objective of Study

4.4

Type of Research

4.5

Sample Size and method of selecting sample

4.6

Scope of Study

4.7

Limitation of Study

5. Facts and Findings 6. Analysis and Interpretation 7. SWOT Analysis

8. Conclusion 9. Recommendation and Suggestions 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 time for 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 nonfunctional. 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.

SOME DFFINITIONS OF INSURANCE 1. Insurance, in law and economics, is a form of risk management primarily used to

hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. 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 an insurance 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).

BRIFE HISTORY OF INSURANCE

The business of insurance started with marine business, traders, who used to gather in the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship/the first insurance policy was issued in 1583 in England. In India, insurance began in 1870 with life insurance being transacted by an English company was the Albert. The first Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed in 1970. Later, the Hindustan cooperative was formed in Calcutta, the united India in Madras, the Bombay life in Bombay, the Jupiter in Bombay and the Lakshmi in New Delhi. These were all Indian companies, started as a result of the Swadeshi movement in the early 1900s. By the year 1956, when the life insurance business was nationalized and the Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. After the amendment to the relevant laws in 1999, the LIC did not have the exclusive privilege of doing life insurance business in India. By 31/3/2002, eleven new insurance had been registered and had begun to transact life insurance business in India.

PURPOSE & NEED OF INSURANCE Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non-economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc. The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ship are exposed to these risks, which are related to water damage, ship sinking, piracy etc. Those owning factors are not exposed to these risks, but they are exposed to different kinds of risks like fire, hailstorms, earthquakes, lightning, burglary etc. Like this, different kinds of risks. By this method, the heavy loss that any one of them may suffer (all of them may such losses at the same time) is divided into bearable small losses by all. In others words, the risks is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all. There are certain principles, which make it possible for insurance to remain a fair arrangement. The first is that it is difficult for any one individual to bear the consequence of the risks that he is exposed to. It will become bearable when the community shares the

burden. The second is that the peril should occur in an accidental manner. Nobody should be in a position to make the risks happen. In other words, none in the group should set fire to his assets and ask others to share the costs of damage. This would be taking unfair advantage of an arrangement put into place to protect people from the risks they are exposed to the occurrence has to be random, accidental and not the deliberate creation of insured person. Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns, lightning, earthquakes etc. are perils. If such perils cab case damage it the asset, we say that the asset is exposed to that risks. Perils are the events. Risks are the consequential losses or damages. The risk to an owner of a building, because of the peril of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of the building and the contents in it. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingence that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there are no uncertainties about the occurrences of an event, it cannot be insured against, in the case of a human being, death is certain, but the time of death is uncertain. In the case of a person who is terminally ill, the time of earth is not uncertain, though not exactly known. He cannot be insured. Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risks on the owner of the assets and those who depend on that asset. It only compensates the losses and that too not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non-economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc. If a Jumbo Jet with more than 350 passenger’s crashers, the loss would run into crores of rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo jets, come together into an insurance pool, whenever one of the Jumbo Jets in the pool crashes, the loss to be borne by each airline would come down to a few lakhs of rupees. Thus, insurance is a business of “haring”.

The manner in which the loss is to be shared can be shared can be determined beforehand. It may be proportional to the risk that each person is exposed to. This would be indicative of the benefit he would receive if he the peril befell him. The share could be collected from the members after the loss has occurred or the likely shares may be collected in advance, at the time of admission to the group. Insurance companies collect in advance and create a find from which the losses are paid. The collection to be made from each person in advance is determined on assumption. While it may not be possible to tell beforehand, which person will suffer, it may be possible to tell, on the basis of past experiences, how many person, on an average, may suffer losses.

INSURANCE AS A SECURITY TOOLS The united Nations Declaration of human Rights 1948 provides that “Everyone has a right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security the event of unemployment, sickness, disability, widowhood or other lack of livelihood in circumstances beyond the control”. When the breadwinner dies, to that extent, the family’s income dies. The economic condition of the family is affected, unless other arrangements come into being to restore the situation Life insurance provides if this did not happen, another family would be pushed into the lower strata creates a cost on society. The lower strata create a cost on society. Poor people cost the nation by way of subsidies and doles and so on. Poor people also cost by way of larger growth in population, poor education and vagaries in behavior of children. Life insu0rance tends to reduce such costs. In this sense life insurance business is complementary to the state’s efforts in social management. Under a socialistic system the responsibility of full security is placed upon the state to find resources for providing social security. In the capitalistic society, provisions of security are largely left to the individuals. The society provides instruments, which can be used in security this aim. Insurance is one of them. In a capitalistic society too, there is a tendency to provide some social security by the state under some schemes, where members are required to contribute e.g. Social Security Schemes in U.K. In India, social security finds a place in our constitution. Article41 requires state, within the limits of its economic capacity and development, to make effective provisions for security right to work, to education and to provide public assistance in case of unemployment, old

age, sickness and disablement and in other cases of undeserved want. Part of the state’s obligations to the poorer sections is met through the mechanism of life insurance.

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.

5. Loss of Income Insurance Insurance that covers workers who are unable to work for any reason. They are usually paid 80% of the insured income. They may have to be off work for 3 months before the policy comes in effect.

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?

8. Workers Compensation Insurance A State-mandated from of insurance covering workers injured in job-related accidents.

9. Insurance advice Advice offered to you related to insurance.

Tax Benefits, Riders and Age Eligibility 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 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 stuck to its schedule of framing regulations and registering the private sector insurance companies.

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 derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children. Bombay Mutual 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 the 187090s. It was during the swadeshi movement in the early 20th century that insurance 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 Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most 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.

For years thereafter, insurance remained a monopoly of the public sector. It was 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 Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured. 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-degree turn witnessed over a period of almost two centuries.

Milestone of Indian Life Insurance Industry 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 to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian, foreign insurers and provident societies was 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 India.

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 recommend 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".

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.

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No Company should deal in both Life and General Insurance through a single entity.

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Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

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Postal Life Insurance should be allowed to operate in the rural market.

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Only One State Level Life Insurance Company should be allowed to operate in each state.

3) Regulatory Body •

The Insurance Act should be changed.

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An Insurance Regulatory body should be set up.

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Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments

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Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.

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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.

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Insurance companies must be encouraged to set up unit linked pension plans.

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Computerization of operations and updating of technology to be carried out in the insurance industry 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.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the 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 as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

MAJOR POLICY CHANGES Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: •

Company is formed and registered under the Companies Act, 1956;

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The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;

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The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.

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The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

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The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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:

Indian Insurance sector touted to record a 18% growth According to K N Bhandari, the Secretary General of General Insurance Council, India's general insurance sector is slated to grow at an 18% rate in 2008. The comparable figure for 2007 was 13%. As per Mr. Bhandari, the present market value of the Indian general insurance sector is Rs 30,000-crore. The current penetration level of the Indian insurance sector is 0.65%. The Indian urban sector is a significant contributor to the general insurance market. In comparison, contribution from rural India is small. Efforts are afoot to capture the dormant rural market via strategies like awareness generation, institutional marketing and emarketing.

LIFE INSURERS

Websites

Public Sector Life Insurance Corporation of India www.licindia.com Private Sector Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in Birla Sun-Life Insurance Company Limited www.birlasunlife.com HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com ING Vysya Life Insurance Company Limited www.ingvysayalife.com Max New York Life Insurance Co. Limited www.maxnewyorklife.com MetLife Insurance Company Limited www.metlife.com Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com SBI Life Insurance Company Limited www.sbilife.co.in TATA AIG Life Insurance Company Limited www.tata-aig.com AMP Sanmar Assurance Company Limited www.ampsanmar.com Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com GENERAL INSURERS Public Sector National Insurance Company Limited www.nationalinsuranceindia.com New India Assurance Company Limited www.niacl.com Oriental Insurance Company Limited www.orientalinsurance.nic.in United India Insurance Company Limited www.uiic.co.in Private Sector Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com IFFCO-Tokyo General Insurance Co. Ltd. www.itgi.co.in Reliance General Insurance Co. Limited www.ril.com Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com TATA AIG General Insurance Co. Limited www.tata-aig.com Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com Export Credit Guarantee Corporation www.ecgcindia.com HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation of India

www.gicindia.com

Introduction of Future Generali India Life and Non Life Insurance Company Limited Company Profile Future Generali is a joint venture between the India-based Future Group and the Italybased 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, Etailing 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.

Generali Group Established in Trieste on December 26, 1831, Generali is an international group present in more than 40 countries and 5th largest company in the world with insurance companies and companies mostly operating in the financial and real estate sectors. Its ranked is 47th 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.

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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.

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Characterised since 1831 by a strong international drive.

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Implementing a decentralised multi-brand and multi-local approach.

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Focused on the retail market.

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Using a multi-channel distribution strategy.

Vision and values of Generali Group

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.

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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.

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We are committed to becoming the most attractive employer for the best performing people.

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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.

Passion for clients Emphasis on clients and their needs, searching for the optimal solution to satisfy them both by supplying high quality products and services as well as by providing them with transparent and thorough information.

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.

Business activity and Mission of Generali Group: The Group`s Activity The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group's Parent and principal operating Company, characterised from the outset by a strong international outlook and now present in 64 Countries, Assicurazioni Generali has consolidated its position among the world's leading insurance operators. It has in fact a strong position in western Europe, its main area of activity, with significant market shares in Germany, France, Austria, Spain, Switzerland as well as Israel. In recent years, the Group has made a significant return to central-eastern European markets and has set up offices in the principal markets of the Far East, among which China and India. In the last decade, the Group has widened its product offerings from only insurance to include the entire range of financial and real estate services and asset management.

The Group's Mission

The Mission of the Generali Group is to: •

Become the leading insurance group in terms of profitability in the major European countries in which the Group operates and play an important role in high-potential markets.

•

Grow in the retail and SME (Small & Medium-sized Enterprises) sectors by implementing a distribution strategy based primarily on agents networks and focused on a multi-brand approach.

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.

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Ensuring that all decision points are fully documented to assist with subsequent monitoring.

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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.

Analyzing Your Workplace: To assist you analyze your workplace to identify recruitment or selection issues for women, we suggest you: •

Revisit your workforce profile to find where your female employees are.

•

Consult with your employees.

•

Examine your existing recruitment and selection policies and practices.

Developing Policy and Procedures •

Put in place a policy requiring recruitment and selection processes to select the best person for the job.

•

Develop a quality, consistent process for recruitment that delivers diverse recruits.

•

Have a recruitment strategy that links to your business plan, and to a strategy to retain employees.

Reviewing Recruitment and Selection Opportunities •

Monitor each stage of the recruitment process to identify any practice that may disadvantage some candidates.

•

Investigate whether women have equal opportunity in the recruitment and selection process by collecting information on the numbers of men and women: ➢ applying for positions ➢ being short-listed ➢ being interviewed ➢ being appointed, and ➢ Survey staff about their perception of equity in recruitment procedures.

•

Consider collecting diversity information as part of the process. There could be a pool of diverse candidates you’re not reaching or unnecessarily excluding.

Reviewing Job Descriptions: •

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 who bring 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.

The Stakeholders of the policy are: a. Sales Manager, Agency Development Manager, Branch Manager, Regional

Manager and the Zonal Business Head of the Company. b. Prospective Agent/ Advisors. c. Agency team. d. Channel Operation team. e. Learning & Development Team.

f. Legal team.

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.

A) Limitation of expenditure on commission (l) No person shall pay or 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 the policy:

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 half per 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 ten years 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's premium 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 no special 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 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 rebate of 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:

Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub–section if at the time of such

acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by 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.

C) According to Section 43. Register of Insurance Agents

(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.

Single

premium

policies

Commission as % of premiums 2%

granting immediate / deferred annuity Other Single premium policies More than 1 premium policies granting deferred annuity Other policies

2%  7.5% of FY premium  2.0 % of renewals  40% of FY premium (After 1st years from commencement, 35%) 

7.5% of renewals for 2nd & 3rd years

 5% of renewals thereafter Agency commission (tied) has to be paid within following limits:

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:

a)

Possess at least the minimum qualification of a pass in 12th Standard or equivalent examination conducted by any recognised Board/Institution.

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.

Has passed pre-recruitment examination in life or general insurance business, or

c)

both, as the case may be, conducted by the Insurance Institute of India, Mumbai, or any other examination body.

Has the requisite knowledge to solicit and procure insurance business and is

d)

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.

IV) Responsibility of the Channel Operations team & Agency team This function is responsible for conducting Agency licensing / Re-licensing and other agency servicing.

Sr.

Particulars

No. 1.

Compliance Cycle

Before licenses are issued and the agent codes are On-going generated, the requisite formalities have been completed particularly as regards 

Possess at least the minimum qualification,

 Completed requisite training, 

passed pre-recruitment examination



Required documentations have been completed before starting the relationship.

TAT - to issue the License to the Agent within 2 working days 1.

of passing of the examination Applications for issuing licenses to act as insurance agents On-going are in line with the IRDA regulations. In particular it shall be

ensured that:  No persons, other than Agent is allowed to sell the policies.  Not to withhold licenses of any agent unless there are serious reasons which need to be duly recorded. 1.

Advisor/Agent codes have been auto blocked immediately on Immediately termination or on expiry of their licenses or on termination of termination.

2.

their agreements. In case if the agent/ advisors is found guilty of any On-going *misconduct (*see prescribed Code of Code), the agency should be terminated immediately.

3.

Maintain a Register of Agents (in electronic form) showing On-going the following (S 43):  Name and address of each agent  Date of appointment  Date of cessation

1.

Below Agency data to be submitted to Compliance team for reporting by them (Compliance team) to IRDA. •

Updated list of Corporate Agents as on March 31 and September 30 – TAT - Half yearly by April 10 & Oct 10 respectively.

•

Details of Termination of Corporate Agent – TAT Monthly by 5th of every month.

•

List of cases wherein the licenses have been withheld every month – TAT - Monthly by 5th of every month.

•

Complete details of each person sponsored for examination and training – TAT - Monthly by 5th of every month.

•

Details of agents whose services are terminated for reasons other than non-performance – TAT - Monthly by 5th of every month.

Half Yearly/ Monthly

on

8.

Details of agents who are involved in any form of

Ongoing

*malpractices (*see prescribed Code of Code) to be submitted to the Compliance team immediately for publishing it on the Company’s website along with the date from which they said agent ceases to be agent.

9.

Duly approved advertisements from the Marketing & Ongoing Compliance department are used/issued by the Agent and in case of advertisements not developed or issued by the Company; prior written approval is taken from the Marketing

10.

& Compliance department before making any advertisement. Agents are paid by way of commission as per the limits Ongoing prescribed by the IRDA and he is not paid in any form any amount in respect of any policy not effected through him.

11.

Only pre-approved sales material/benefit illustrations have Ongoing been used by the agents/ advisors.

Prescribed Code of Conduct

V)

The sales team (all channels) is responsible to ensure that none of the agents, advisors, sales executive deviate from the requirements discussed hereunder.

DO’s & DONT’s: Every Insurance Agents/ Advisors are required to strictly follow The Code of Conduct as prescribed by the IRDA: (a) (b) (c)

Identify himself and the insurance company of whom he is an insurance agent. Disclose his licence to the prospect on demand.

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.

Insurance Agents shall NOT Practice the following: (a)Solicit

or procure insurance business without holding a valid licence.

(b)Induce

the prospect to omit any material information in the proposal form.

(c)Induce

the prospect to submit wrong information in the proposal form or documents

submitted to the insurer for acceptance of the proposal. Behave in a discourteous manner with the prospect.

(d)

(e)Interfere (f)Offer

with any proposal introduced by any other insurance agent.

different rates, advantages, terms and conditions other than those offered by his

insurer. (g)Demand

or receive a share of proceeds from the beneficiary under an insurance

contract.

(h)Force

a policyholder to terminate the existing policy and to effect a new proposal from

him within three years from the date of such termination. (i)Have,

in case of a corporate agent, a portfolio of insurance business under which the

premium is in excess of fifty percent of total premium procured, in any year, from one person (who is not an individual) or one organisation or one group of organisations. (j)Apply

for fresh licence to act as an insurance agent, if his licence was earlier cancelled

by the designated person, and a period of five years has not elapsed from the date of such cancellation. (k)Become

or remain a director of any insurance company.

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

VI) Recruitment Process of Agents/ Advisors: Responsibility and Accountability: 1)

Sales Manager (SM):

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 (recent one).

•

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.

2) Agency Development Manager (ADM): 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.

3) Branch Manager (BM): 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.

4) Regional Manager (RM) 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

•

Have a mechanism whereby compliance is reviewed periodically during branch reviews

•

Ensure there is a sign-off process at the end of review

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 RM.

5) Zone Business Head (ZBH): 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

•

Have a mechanism whereby compliance is reviewed periodically during Zonal reviews

•

Ensure there is a sign-off process at the end of review

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.

VII) Responsibility of the Learning & Development (L&D) team: 1.

Should provide training to all new agents/ advisors on background to money laundering, mandatory KYC norms and AML related Compliances.

2.

Contents in the training modules pertaining to any regulations/statue/law shall be preapproved by the compliance department.

3.

Ensure that all prospective agents/agents undergo training as per the new syllabus and adhere to the new norms of training hours prescribed in this policy ;

4.

Ensure that the list of rules and regulations covering performance of agents and corporate agents must be put in place.

Ensure that the agents and corporate Agents/ advisors should be made aware of the

5.

insurance institution’s policy for dealing with non-regular customers particularly where large transactions are involved, and the need for extra vigilance in these cases. Agents /advisors who receive completed proposals and cheques for payment of the

6.

single premium contribution should be appropriately trained in the processing and verification procedures by the L&D team. 7.

Should provide a higher level of instruction covering all aspects of money laundering procedures to Administration/Operations supervisors and managers with the responsibility for supervising or managing staff. Should also provide ongoing training in the form of refresher training at regular

8.

intervals to ensure that staff does not forget their responsibilities by a twelve or sixmonthly review of training. Should verify the status of Agent Training Institute from IRDA website before

9.

sponsoring candidates for training to said Institute. 10. Should ensure that the candidate sponsored for training by the Company passes the Agents pre-recruitment examination within six months of completing his/her training failing which, he/she would be required to undergo the training again. 11. Agents/Advisors should be made aware of the Company’s Human Capital Policy. While product training, the rider understanding should be very clear. 12. In case of ULIP Training, the importance of market risk factors associated with the ULIP Products should be properly communicated to the customers by the advisors/ agents. 13. Should oversee the proper conduct of the training at the training institute through regular audit and inspection and ensure that no candidate is sponsored to those institutes that are not maintaining the required standards of and facilities for the training.

VIII) Other Important Points: 1) SOLICITATION Following needs to be seen: •

Evaluate customer’s life insurance need

•

Ability of customer to pay premiums over intended policy duration

1)

•

Suitability of product for him

•

Explain the product in full

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.

6) MISLEADING COMMENTS ABOUT COMPETITORS Do not: a)

Make false or misleading statements about competitors.

b) Make any unfair or incomplete comparisons with other insurers, their policies, benefits, agents, services, method of marketing or compare unlike policies. c)

Make misleading, derogatory, false or maliciously critical statements about the financial condition of any insurance company.

IX) Consequence Management of Complaints Process: •

As and when such fraud cases occurs or any non-adherence or in case of any incident that can harm the interest of the organization the concerned Manager must as a first step inform and report (with all the necessary details, documents, facts of the case) to the immediate supervisor concerned Zonal Manager who in turn ensures that it is shared with Legal Department and Head Agency at Head Office on the same day.

•

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.

COURSE OF ACTION IF: A) The Agent/ Advisors are found guilty of misconduct

or are non-

compliant: •

Necessary action shall be taken to secure compliance.

•

The concerned Agent /Advisors shall be given a warning, in case of 1st instance.

•

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.

B) The Sales Manager (SM) / Agency Development Manager (ADM)/ Branch Manager (BM) is non–complaint to the process and is found guilty of misconduct: •

Necessary action shall be taken to secure compliance.

•

Further, the concerned SM/ADM shall be given a warning, in case of 1st instance.

•

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.

C) The Regional Manager (RM) / Zonal Business Head (ZBH) is non complaint to the process and is found guilty of misconduct: •

Necessary action shall be taken to secure compliance.

•

Further, the concerned RM/ZBH shall be given a warning, in case of 1st instance.

•

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.

Illustration of Agency related Complaints/ Misconduct: •

Documents that are being presented are not in order /they are forged or fake.

•

Improper/wrongful use of company seal/stamp.

•

Unfair means are used pass in the pre recruitment examination by the prospective agents/ advisors.

•

Not completed the requisite practical training.

REASERCH METHODOLOGY INTRODUCTION

Research in common parlance refers to a search for knowledge. The advanced learner’s dictionary of current English lays down the meaning of research as “a careful investigation of enquiry especially through search for new facts in any branch of knowledge.”

The systematic approach concerning generalization and the formulation of a theory is also research. The purpose of research is to discover answers to questions through the application of scientific procedures.

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

➢ The study was conducted for period of 45 days.

OBJECTIVE OF STUDY •

To study the Recruitment and Selection System in the organization.

•

To study the process of intake of employees with relation to Experience, Communication skills and Qualification in the organization

•

To know strategies which using for recruitment in FGI.

•

Awareness of agents regarding to supplementary income needs of agents.

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

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

➢ It is the arrangement of classified data in an orderly manner. This involves creating table for recording the filled in interview schedule. These tables are

of immense help to analysis by using the statistics tools help to analysis by using the statistical tools.

TOOLS USED FOR ANALYSIS

Simple percentage analysis ➢ It is simple analysis tool. In this method, based on the opinions of the respondents, percentage and bar chart is calculated for the respective scales of each factor.

Formula: Simple percentage =

No of Respondents Total No of Sample Size

LIMITATIONS OF THE STUDY ➢ The study is focused only in Future Generali India Life Insurance Company Ltd.

➢ Thus the respondents are not come forward to provide their feedback regarding their organization than the result is bias. ➢ In this study the sample size is 70. The result might vary when the sample size

values changes it. ➢ Researcher fined the difficulty in searching the appropriate advisor and respondent throughout the city. ➢ The research was limited to the Jodhpur city.

ANALYSIS AND INTERPRETATION TABLE NO: 1 Q1. What is your age?

S.NO DESCRIPTION

NUMBER OF

PERCENTAGE (%) 14.29

1.

Below-25

RESPONDENTS 10

2.

25-30

35

50

3.

30-35

18

25.71

4.

35-40

7

10

TOTAL

70

100

S.NO DESCRIPTION

NO OF

PERCENTAGE

RESPONDENTS 55

% 78.57

1.

Male

2.

Female

15

21.43

TOTAL

70

100

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?

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 your current profession?

So. No. 1. 2. 3. 4. 5.

TYPE OF PROFESSION

NO.OF

PERCENTAGE

Professional Private - Service Public - Service Self – Employed Any Other Total

RESPONDENTS 26 17 8 16 3 70

37 24 12 23 4 100

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?

S.NO DESCRIPTION

NO OF

PERCENTAGE

RESPONDENTS 1.

Below 5000

3

4.28

2.

5000-10000

30

42.86

3.

10000-15000

26

37.14

4.

Above 15000

11

15.72

70

100

TOTAL S.NO

DESCRIPTION

NO OF

PERCENTAGE

RESPONDENTS 1. 2.

Yes No TOTAL

49 21 70

70 30 100

INTERPRETATION: The above table depicts that 43.3% of respondents are earned comes the salary of 500010000, 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?

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?

S.NO DESCRIPTION

NO OF

PERCENTAGE

RESPONDENTS 1.

Good

31

44.28

2.

Fine

35

50.00

3.

Bad

4

5.72

TOTAL

70

100

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?

S.NO.

DISCRIPTION

NO. OF

PERCENTAGE

RESPONDENTS 1. 2.

YES NO TOTAL

49 21 70

70 30 100

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?

S.NO. 1. 2. 3.

QUALITY

NO. OF

PERCENTAGE

Leadership Qualification Communication Total

RESPONDENTS 21 14 35 70

30 20 50 100

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 S.NO.

DISCRIPTION

NO. OF

PERCENTAGE

1.

Businessman

RESPONDENTS 10

15

2.

Govt. Employees

21

30

3.

Retired Person

21

30

4.

House wife

8

10

5.

Fresher

10

15

TOTAL

70

100

advisor?

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?

S. No.

DISCRIPTION

No. OF RESPONDENTS

PERCENTAGE

1.

Yes

32

46

2.

No

7

9.33

3.

May be

31

44.67

TOTAL

70

100

INTERPRETATION: The above table shows that 46% of respondents were interest in supplementary income source while 44.67% of respondent are not sure about supplementary income source and remaining were not interested for that.

TABLE NO-11 Q11. Which source will you preferred for supplement ones income?

S.NO. 1. 2. 3. 4. 5.

DISCRIPTION

NO. OF

PERCENTAGE

Life Insurance Agency Multi level Marketing Tuitions Part Time Business Trading and Investment in stocks Total

RESPONDENTS 45 10 4 7 4 70

65 15 5 10 5 100

INTERPRETATION: The above table depicts that 65% of respondents are says that they will prefer life insurance sector for supplement income while 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?

S.NO. 1. 2. 3.

DISCRIPTION

NO. OF

PERCENTAGE

YES NO MAY BE TOTAL

RESPONDENTS 14 47 9 70

21 68 11 100

.

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.

SWOT ANALYSIS OF FUTURE GENERALI 1. STRENGTHS: i.

Future Generali is the largest private player in India, with a market share of around 36% amongst the private players

ii. Future Generali has deposited a paid up capital of Rs 925 crore

with IRDA caution deposit, the highest among all the life insurance company in India where as LIC has deposited Rs 60 crore so far. iii. Future Generali is the first life insurance company to offer ECS

debit facility. iv. Future Generali is the first company to introduce unit link life

insurance and pension products. Presently the maximum numbers of ranges are under ULIP life insurance, investment as well as pension plan. v. Products:

•

Flexibility to switch your fund value at your own discretion four times a year viz. maximizer, protector, balancer, preserver.

•

Greater

transparency-policy

holder

knows

what

is

happening to his money and where the company has invested his money. •

Liquidity options-you can make complete or partial withdrawals any time after 3 years.

•

Life insurance plans are eligible for deduction under sec 80.

1. WEAKNESSES: i. Industry in nascent stage. ii. Rural areas still not covered. iii. Not very known among Indian population. iv. Lack of credibility among the people because Future Generali

being a private player. v. Premiums are high as compared to its competitors. vi. Very few branches in the country. vii. Products: •

The policy doesn’t have the surrender option before third year.

•

Plan does not offer any guarantee or assured return.

•

Product profile is not very comprehensive.

•

Mortality, management and administrative charges are sky scrapping as compared to its competitors.

1. OPPORTUNITIES i. Liberalization of Indian economy. ii. As the industry is growing the whole market is virgin. iii. The whole private sector is opened to be trapped even though the competition

is

fierce

from

government

owned

insurance

companies. iv. It’s a volume business that is even if the company has few good

corporate the turnover cease to increase by manifold. v. Products: •

Preserver funds look good due to comfortable liquidity in the economy and there is little chance hike in short-term rate by RBI.

•

Finance minister unveiled a budget favoring consumer spending, boosting demand and therefore higher economic growth.

1. THREATS i. The government players will become aggressive thus growth is going to be tough. ii. Entry of other players is not ruled out. iii. Apprehension towards Future Generali being a private life

insurance company. iv. We expect the industry to rationalize in future that is mergers and

acquisitions will happen, which will impact the industry and Future Generali fortunes. v. Products: •

Past performance of these plans is not indicative of the future performance of the plan.

•

The sum invested in the funds is subject to market risks and there can be no assurance that the objective of plan will be achieved.

•

All benefits payable under the policy are subject to tax laws and other financial enactment, as they exist from time to time.

CONCLUSION 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 : •

Recruitment process is fine and it is according to company’s policies for recruit experienced and more skilled employees and they take interest in supplementary income sources.

•

Respondents want to arrange the training session for improve their communication and convince skills. Because they says communication skills is the quality which plays important role in recruitment and selection process of agents. And Dynamic and growth-oriented organization recognizes Communication as an important aspect of the Recruitment and Selection system for managerial function in a rapidly changing and economic environment.

•

Mostly respondents prefer insurance sector for the source of supplementary income as a part time income. But they does not interested in the supplementary income which offers flexible working hours and unlimited earning opportunity.

RECOMMENDATION AND SUGGETIONS

1. They

2. They

should increase the employee’s morale and help him to attain the target.

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.

4. Company

should provide the training session for agents.

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

Q1. What is your age?

1. Below-25

2. 25-30

3. 30-35

4. 35-40

Q2. What is your Gender? 1. Male 2. Female

Q3. What is your current profession? 1. Professional

2. Private – Service

3. Public – Service

4. Self – Employed

5. Any Other

Q4. What are your current salary particulars which are given by company? 1. Below 5000 3. 10000-15000

2. 5000-10000 4. Above 15000

Q5. Are you satisfied with your current job? 1. Yes 2. No

Q6. Are you satisfied with the recruitment process of the company? 1. Good 2. Fine 3. Bad

Q7. Is there training requires for improve the performance of an advisor 1. Yes 2. No

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

Q10. Would you be interested in a source of supplementary income? 1. Yes 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

Materials provided by Future Generali India Life Insurance Company