SUMMER TRAINING PROJECT REPORT ON RECRUITMENT

AND TRAINING OF LIFE ASSOCIATE’S IN DLF

PRAMERICA LIFE INSURANCE COMPANY

In partial fulfillment of the requirement for the award of Degree of

MASTER OF COMMERCESESSION: 2010-11

SUBMITTEDTO: SUBMITTED BY:

KIRAN SHARMA M.COM ROLL NO: 2576

KAMLA LOHTIA SANATAN DHARAM COLLEGE, LUDHIANA

ACKNOWLEDGEMENT

The special thank goes to my helpful supervisor, prof. Rajesh Marwaha, H.O.D. of the commerce department of K.L.S.D College. The supervision and support that he gave truly help the progression and smoothness of the internship program. The co-operation is much indeed appreciated. My grateful thanks are also to both Mr. Gagandeep kalsi the deputy manager of DPLI and Miss. Ravneet the head of the training department in DPLI. A big contribution and hard worked from both of you during the six week is very great indeed. All projects during the program would be nothing without the enthusiasm and imagination from both of you. Besides, this internship program make me realized the value of working together as a team and as a new experience in working environment which challenges us every minute. Not forget, great appreciation go to the rest of DPLI staff that help me from time to time during the project. The whole program really bought us together to appreciate the true value of friendship and respect of each other. Great deals appreciated go to the contribution of my faculty-KLSD college. Last but not least I would like to thank my friends especially who works together as interns at DLF Pramerica Life Insurance the wise idea throughout the project.

INDEX

Chapter 1: About InsuranceChapter 2: Insurance Regulatory and Development Authority

Chapter 3: About CompanyChapter 4: Recruitment ProcessChapter 5: Training Process

CHAPTER 1: About Insurance

1. What is Insurance?2. History of Insurance in India3. Fundamental of Insurance4. Insurance Terminology

Chapter 2: Insurance Regulatory and Development Authority

1. Insurance Regulatory and Development Authority

2. Mission Statement of the Authority

3. Duties Powers and Functions of IRDA

4. Grievance Cell

Chapter 3: About Company

1. DLF Pramerica Life Insurance Company Punjab

2. About DLF3. About PFI4. Plans of DLF Pramerica Life

Insurance Company

Chapter 4: Recruitment Process

1. What is Recruitment2. Role and Responsibilities of Life Associate3. Recruitment Process4. Name Gathering- Fishing for Talent5. Approaching a Prospective Life Associate6. Partnering for Success7. Presentation Basics8. Candidate Assessment Interview9. Reference Check

10. Conducting an Effective Candidate Assessment Interview 11. Activity

Chapter 5: Training Process

1. What is Training2. IRDA Training3. IRDA Guidelines4. Selling with Training5. Knowledge Upgradetion

What Is Insurance?

Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium. (For background reading, see The History of Insurance in America.)

Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say "significant" because if the potential loss is small, then it doesn't make sense to pay a premium to protect against the loss. After all, you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense. (For more insight, see 15 Insurance Policies You Don't Need.)

Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. This may include: 

Protecting family after one's death from loss of income Ensuring debt repayment after death Covering contingent liabilities Protecting against the death of a key employee or person in

your business Buying out a partner or co-shareholder after his or her death Protecting your business from business interruption and loss

of income Protecting yourself against unforeseeable health expenses Protecting your home against theft, fire, flood and other

hazards Protecting yourself against lawsuits Protecting yourself in the event of disability Protecting your car against theft or losses incurred because of

accidents And many more

History of insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the

Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies-245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associations of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

  In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the

reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies are allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

  Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.    The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.  Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country’s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

Fundamentals Of Insurance

How does insurance work?

Insurance works by pooling risk. What does this mean? It simply means that a large group of people who want to insure against a particular loss pay their premiums into what we will call the insurance bucket, or pool. Because the number of insured individuals is so large, insurance companies can use statistical analysis to project what their actual losses will be within the given class. They know that not all insured individuals will suffer losses at the same time or at all. This allows the insurance companies to operate profitably and at the same time pay for claims that may arise. For instance, most people have auto insurance but only a few actually get into an accident. You pay for the probability of the loss and for the protection that you will be paid for losses in the event they occur.

Risks

Life is full of risks - some are preventable or can at least be minimized, some are avoidable and some are completely unforeseeable. What's important to know about risk when thinking about insurance is the type of risk, the effect of that risk, the cost of the risk and what you can do to mitigate the risk?  Let's take the example of driving a car. (For more insight on the concept of risk, see Determining Risk and the Risk Pyramid.)

Type of risk: Bodily injury, total loss of vehicle, having to fix Your car

The effect: Spending time in the hospital, having to rent a car and having to make car payments for a car that no longer exists

The costs: Can range from small to very large

Mitigating risk: Not driving at all (risk avoidance), becoming a safe driver

(You still have to contend with other drivers), or transferring the risk to someone else (insurance) 

let’s explore this concept of risk management (or mitigation) principles a little deeper and look at how you may apply them. The basic risk management tools indicate that risks that could bring financial losses and whose severity cannot be reduced should be transferred.  You should also consider the relationship between the cost of risk transfer and the value of Transferring that risk.

Risk Control 

There are two ways that risks can be controlled. You can avoid the risk Altogether or you can choose to reduce your risk.

Risk Financing

If you decide to retain your risk exposures, then you can either transfer that risk (i.e. to an insurance company), or you retain that risk either voluntarily (i.e. you identify and accept the risk) or involuntarily (you identify the risk, But No insurance is available).

Risk Sharing

Finally, you may also decide to share risk.  For example, a business owner may decide that while he is willing to assume the risk of a new venture, he may want to share the risk with other owners by incorporating his business.

So, back to our driving example.  If you could get rid of the risk altogether, there would be no need for insurance. The only way this might happen in this case would be to avoid driving altogether. Also, if the cost of the loss or the effect of the loss is reasonable to you, then you may not need insurance.

For risks that involve a high severity of loss and a low frequency of loss, then risk transference (i.e. insurance) is probably the most appropriate protection technique. Insurance is appropriate if the loss will cause you or your loved ones a significant financial loss or inconvenience. Do keep in mind that in some instances, you are required to purchase insurance (i.e. if operating a motor vehicle). For risks that are of low loss severity but high loss frequency, the most suitable method is either retention or reduction because the cost to transfer (or insure) the risk might be costly. In

other words, some damages are so inexpensive that it's worth taking the risk of having to pay for them yourself, rather than forking extra money over to the Insurance Company each month.

The Risk Management Process

After you have determined that you would like to insure against a loss, the next step is to seek out insurance coverage. Here you have many options available to you but it's always best to shop around. You can go directly to the insurer through an agent, who can bind the policy. The process of binding a policy is simply a written acknowledgement identifying the main components of your insurance contract. It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company. It should be noted that agents work exclusively for the insurance company. There are two types of agents:

1. Captive Agents: Captive agents represent a single insurance company and are required to only do business with that one company.  

2. Independent Agent: Independent agents represent multiple companies and work on behalf of the client (not the insurance company) to find the most appropriate policy. 

Underwriting

Underwriting is the process of evaluating the risk to be insured. This is done by the insurer when determining how likely it is that the loss will occur, how much the loss could be and then using this information to determine how much you should pay to insure against the risk. The underwriting process will enable the insurer to determine what applicants meet their approval standards. For example, an insurance company might only accept applicants that they estimate will have actual loss experiences that are comparable

to the expected loss experience factored into the company's premium fees. Depending on the type of insurance product you are buying, the underwriting process may examine your health records, driving history, insurable interest etc. 

The concept of "insurable interest" stems from the idea that insurance is meant to protect and compensate for losses for an individual or individuals who may be adversely affected by a specific loss. Insurance is not meant to be a profit center for the policy's beneficiary. People are considered to have an insurable interest on their lives, the life of their spouses (possibly domestic partners) and dependents.  Business partners may also have an insurable interest on each other and businesses can have an insurable interest in the lives of their employees, especially any key employees.

Insurance Contract

The insurance contract is a legal document that spells out the coverage, features, conditions and limitations of an insurance policy. It is critical that you read the contract and ask questions if you don't understand the coverage. You don't want to pay for the insurance and then find out that what you thought was covered isn't included.

(For more insight, read Understand Your Insurance Contract.)

Insurance terminology

Bound: Once the insurance has been accepted and is in place, it is called "bound". The process of being bound is Called the binding process.

Insurer: A person or company that accepts the risk of loss and compensates the insured in the event of loss in exchange for a premium or payment. This is usually an insurance company.

Insured: The person or company transferring the risk of loss to a third party through a contractual agreement (insurance policy). This is the person or entity who will be compensated for loss by an insurer under the terms of the Insurance contract.

Insurance Rider /Endorsement:  An attachment to an insurance policy that alters the policy's coverage or terms. (To learn more, read Let Life Insurance Riders Drive Your Coverage.)

Insurance Umbrella Policy: When insurance coverage is insufficient, an umbrella policy may be purchased to cover losses above the limit of an underlying policy or policies, such as

homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of Underlying policies.

Insurable Interest: In order to insure something or someone, the insured must provide proof that the loss will have a genuine economic impact in the event the loss occurs. Without an insurable interest, insurers will not cover the loss. It is worth noting that for property insurance policies, an insurable interest must exist during the underwriting process and at the time of loss. However, unlike with property insurance, with life insurance, an insurable interest must exist at the time of purchase only. 

Now that you have the basics of insurance, let's discuss specific types of policies.

Life Insurance

Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death. Today, life insurance is used for many reasons, including wealth preservation and estate tax planning. (For background reading, see The History Of Insurance In America.)

Life insurance provides you with the opportunity to protect yourself and your family from personal risk exposures like repayment of debts after death, providing for a surviving spouse and children, fulfilling other economic goals (such as putting your kids through college), leaving a charitable legacy, paying for funeral expenses, etc. Life insurance protection is also important if you are a business owner or a key person in someone else's business, where your death (or your partner's death) might wreak financial havoc.

Life insurance is a great financial planning tool, but should never be thought of as a savings vehicle. In general, there are often far better places to hold and grow your money as you get older.

Who Needs It?Not everybody needs life insurance. If you are single and have no dependents, it may not be worth the expense. If, however, you have anyone who financially depends on you (even partially), life

insurance may be appropriate for you. When considering life insurance, the questions to ask you are this:

Do I need life insurance? How much do I need? How long will I need it? What type of policy makes sense for me? (this will be

answered in our next section)

Your need for life insurance will depend on your personal circumstances, including your current income, your current expenses, your current savings and your family's goals. Rules of thumb might indicate that purchasing life insurance that covers six to 10 times your gross annual income is the right amount of coverage. But, that's merely a guide. Your family may need more or less than that. When deciding how much coverage is necessary, you really have to lay out the details of what you have versus what goals you'd like for your family once you are gone, keeping in mind that their security can often carry a higher price tag than you originally thought.

(For more insight, see How Much Life Insurance Should You Carry? and Five Life Insurance Questions You Should Ask)

Types Of Life Insurance

Life insurance protection comes in many forms, and not all policies are created equal, as you will soon discover. While the death benefit amounts may be the same, the costs, structure, durations, etc. vary tremendously across the types Of policies.

Whole Life

Whole life insurance provides guaranteed insurance protection for the entire life of the insured, otherwise known as permanent coverage. These policies carry a "cash value" component that grows tax deferred at a contractually guaranteed amount (usually a low interest rate) until the contract is surrendered. The premiums are usually level for the life of the insured and the death benefit is guaranteed for the insured's lifetime.

With whole life payments, part of your premium is applied toward the insurance portion of your policy, another part of your premium goes toward administrative expenses and the balance of your premium goes toward the investment, or cash, portion of your policy. The interest you accumulate through the investment portion of your policy is tax-free until you withdraw it (if that is allowed under the terms of your policy). Any withdrawal you make will typically be tax free up to your basis in the policy. Your basis is the amount of premiums you have paid into the policy minus any prior dividends paid or previous withdrawals. Any amounts

withdrawn above your basis may be taxed as ordinary income. As you might expect, given their permanent protection, these policies tend to have a much higher initial premium than other types of life insurance. But, the cash build up in the policy can be used toward premium payments, provided cash is available. This is known as a participating whole life policy, which combines the benefits of permanent life insurance protection with a savings component, and provides the policy owner some additional payment flexibility.  (Fore related reading, see Buying Life Insurance: Term Vs. Permanent and Permanent Life Policies: Whole Vs. Universal.)

Universal Life

Universal life insurance, also known as flexible premium or adjustable life, is a variation of whole life insurance. Like whole life, it is also a permanent policy providing cash value benefits based on current interest rates. The feature that distinguishes this policy from its whole life cousin is that the premiums, cash values and level amount of protection can each be adjusted up or down during the contract term as the insured's needs change. Cash values earn an interest rate that is set periodically by the insurance company and is generally guaranteed not to drop below a certain level. (For related reading, see Cashing In Your Life Insurance Policy.)

Variable Life

Variable life insurance is designed to combine the traditional protection and savings features of whole life insurance with the growth potential of investment funds. This type of policy is comprised of two distinct components: the general account and the separate account. The general account is the reserve or liability account of the insurance provider, and is not allocated to the individual policy. The separate account is comprised of various

investment funds within the insurance company's portfolio, such as an equity fund, a money market fund, a bond fund, or some combination of these. Because of this underlying investment feature, the value of the cash and death benefit may fluctuate, thus the name "variable life". (For more on this, read Variable Vs. Variable Universal Life Insurance and Vary Your Options With Variable Insurance.)

Variable Universal Life

Variable universal life insurance combines the features of universal life with variable life and gives the consumer the flexibility of adjusting premiums, death benefits and the selection of investment choices. These policies are technically classified as securities and are therefore subject to Securities and Exchange Commission (SEC) regulation and the oversight of the state insurance commissioner. Unfortunately, all the investment risk lies with the policy owner; as a result, the death benefit value may rise or fall depending on the success of the policy's underlying investments. However, policies may provide some type of guarantee that at least a minimum death benefit will be paid to beneficiaries.

Term Life

One of the most commonly used policies is term life insurance. Term insurance can help protect your beneficiaries against financial loss resulting from your death; it pays the face amount of the policy, but only provides protection for a definite, but limited, amount of time. Term policies do not build cash values and the maximum term period is usually 30 years. Term policies are useful when there is a limited time needed for protection and when the dollars available for coverage are limited. The premiums for these types of policies are significantly lower than the costs for whole

life. They also (initially) provide more insurance protection per dollar spent than any form of permanent policies. Unfortunately, the cost of premiums increases as the policy owner gets older and as the end of the specified term nears. (To learn more, read Buying Life Insurance: Term Vs. Permanent and What is term insurance?)

Term polices can have some variations, including, but not Limited to:

Annual Renewable and Convertible Term: This policy provides protection for one year, but allows the insured to renew the policy for successive periods thereafter, but at higher premiums without having to furnish evidence of insurability. These policies may also be converted into whole life policies without any additional underwriting. 

Level Term: This policy has an initial guaranteed premium level for specified periods; the longer the guarantee, the greater the cost to the buyer (but usually still far more affordable than permanent policies). These policies may be renewed after the guarantee period, but the premiums do increase as the insured gets older.

Decreasing Term: This policy has a level premium, but the amount of the death benefit decreases with time. This is often used in conjunction with mortgage debt protection.

Many term life insurance policies have major features that provide additional flexibility for the insured/policyholder. A renewability feature, perhaps the most important feature associated with term policies, guarantees that the insured can renew the policy for a limited number of years (i.e. a term between 5 and 30 years) based on attained age. Convertibility provisions permit the policy owner to exchange a term contract for permanent coverage within a specific time frame without providing additional evidence of

insurability.

Food for Thought

Many insurance consumers only need to replace their income until they've reached retirement age, have accumulated a fair amount of wealth, or their dependents are old enough to take care of themselves. When evaluating life insurance policies for you and your family, you must carefully consider the purchase of temporary versus permanent coverage. As you have just read, there are many differences in how policies may be structured and how death benefits are determined. There are also vast differences in their pricing and in the duration of life Insurance protection.  

Many consumers opt to buy term insurance as a temporary risk protection and then invest the savings (the difference between the cost of term and what they would have paid for permanent coverage) into an alternative investment, such as a brokerage account, mutual fund or retirement plan.

Life Insurance Considerations

There are other important considerations that you should know about life insurance before you buy it. (For more insight, read Life Insurance Clauses Determine Your Coverage.)

Tax Treatment

The death benefit proceeds of life insurance policies are not taxable to the beneficiaries. They are, however, included as a part of the estate in some cases, depending on how the life insurance policy is owned. This, however, is beyond the scope of this tutorial. Distributions from cash values of whole life policies (loans or withdrawals) may be tax-free or taxable depending on whether they exceed the cost basis (or premiums paid) of the policy. Meanwhile, the earnings or growth of the cash value is tax deferred until a distribution is made. (For related reading, see Life Insurance Distributions And Benefits.)

Standard Provisions

A life insurance policy and your application for the coverage constitute a binding contract between the applicant and the insurer. It is understood that the information provided by the applicant is warranted to be true and that no misrepresentations have been made to attain coverage. The incontestable clause protects the insurance company if at a later date, as benefits are paid; it is revealed that the insured lied about his or her health or risk exposures. Once a policy is in force for at least two years, the

validity of that contract cannot be questioned under the incontestable clause, unless in the case of fraud. If the insured commits suicide within one or two years of the policy being in force, then no death benefits will be paid, only a refund of premiums.

Beneficiaries

In the assignment of beneficiary designations, there are always two categories: primary and contingent beneficiaries. The primary beneficiary is the person (or entity) who is first entitled to the death proceeds. Of course, more than one primary beneficiary can be named. The contingent beneficiary is the person (or entity) who would be entitled to the death benefits if the primary beneficiary or beneficiaries are dead or unable to receive benefits. One easy way to deal with beneficiary assignments of multiple family generations is to use either the "per capita" or "per stripes" description. It's easy to accidentally disinherit family members without proper wording. If your intent is to leave your benefits, for example, to your surviving children, a "per capita" designation might be appropriate, whereby your surviving children would share the proceeds equally. If however, your intent is to fairly distribute proceeds by line of descent, then the "per strips" designation accomplishes this. If this is done, the children of a deceased beneficiary will each receive an equal share of the benefits intended for that family line. It is critical that both primary and contingent beneficiaries be named to ensure the proper planning.

Beneficiary designations can be deemed revocable or irrevocable, depending on the contract's flexibility. If revocable, the policy owner can change the beneficiary designation at any time without the beneficiary's consent or notification. With an irrevocable designation, the policy owner cannot change the beneficiary designation without the beneficiary's consent, such as in a business or key man policy. 

(For more insight, see Life Insurance Distribution And Benefits.)

Distribution Options

Life insurance benefits can be distributed in a number of ways. The most obvious is the lump sum distribution, which is essentially a one-time payment in cash. With an "interest option", the death benefits are left with the insurance company but paid out at a later time, in which case a minimum guaranteed rate of interest is paid to beneficiaries. Beneficiaries can also opt for an "installment option", whether a fixed installment period or fixed installment amount. The latter option is sometimes used by policy owners to ensure that the beneficiary does not spend all the money at once. Finally, the "life income" option, which is much like an annuity, also pays the life insurance proceeds over time, but based on the beneficiary's life expectancy. The life income option has several payout possibilities:

Straight Life Income:  Proceeds are paid to the beneficiary on the basis of life expectancy.

Life Income with Period Certain: The beneficiary is paid for as long as he or she is alive, but with a minimum Number of guaranteed payments.

Life Income with Refund:  The beneficiary is paid as long as he or she lives, and if original principal remains after the beneficiary dies, then it is paid to a contingent beneficiary.

Joint and Survivor Income: Income is paid to two beneficiaries, with payments continuing to the survivor after the first payee dies.

Insurance Regulatory and Development Authority

Insurance Act

The passage of the Insurance Act, 1938 and its subsequent amendments in 1950 and 1999 are serious attempts to bring order in the business of insurance in India. The Act attempted to address various issues relating to the business. Some of them are:

Protection of policy holder interest Limiting the expenses of insurance organizations Establishment of tariff advisory committee Solvency levels to be maintained Creation of Insurance organization Defining the roles and responsibilities of various

functionaries associated with the business

Insurance Regulatory and Development Authority Act

The passage of Insurance Regulatory and Development Authority Act in 1999 can be seen a dividing line for insurance business in India. It was an outcome of the implementation of the recommendations of a high powered committee, which suggested the setting up of a statutory body called the Insurance Regulatory Authority in 1996. This body was later renamed as Insurance regulatory and Development Authority with the passage of IRDA Act by the parliament.

Objectives of IRDA Act

To protect the investor's interest To promote orderly growth of insurance industry in the

country, including registration of insurance companies To administer the provisions of Insurance Acts To devise control activities needed for smooth functioning of

the insurance companies including investment of funds and solvency requirements to be maintained by insurance companies.

To lay down the accounting methodology to be adopted To adjudicate on disputes

Functions of IRDA

As defined by the IRDA Act, 1999, the broad functions of IRDA are as follows:

Ensure orderly growth of the Insurance industry Protection of policyholder's interest Issue consumer protection guidelines to insurance companies Grant, modify, and suspend license for insurance companies Lay down procedure for accounting policies to be adopted by

the insurance companies Inspect and audit of insurance companies and other related

agencies Regulation of capital adequacy, solvency, and prudential

requirements of insurance business Regulation of product development and their pricing

including free pricing of products Promote and regulate Self Regulating organizations in the

insurance industry Re-insurance limit monitoring Monitor investments Vetting of accounting standards, transparency requirements

in reporting

Ensure the health of the industry by preventing sickness through appropriate action

Publish information about the industry Prescribe qualification and training needs of agents Monitor the charges for various services provided by

insurance companies

IRDA Initiatives

Some of the initiatives of IRDA, by way of subsequent rules framed by it are:

IRDA's regulation stipulate that the prospectus issued by the insurer should explicitly state the scope of benefits, conditions, warranties, entitlements exceptions, and right to participate in bonus under every planof insurance

A decision on the proposal should be made by the insurer within 15 days

IRDA has framed regulations regarding advertisement by insurance companies and other intermediaries. They apply to all categories and media employed

IRDA can adjudicate disputes between the insurance companies and intermediaries

IRDA regulation requires that every insurance company appoint an actuary

IRDA regulation has laid down the following stipulations as regards settlement of claim:

a. All the requirements needed under death claim are to be sought in one instance

b. Admit or repudiate the claim in 30 days c. All investigations need to be completed in 6 months d. Interest at 2 % over bank rate is payable in case of

delayed settlement

MISSION STATEMENT OF THE AUTHORITY

To protect the interest of and secure fair treatment to policyholders

To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy;

To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates;

To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery;

To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players;

  To take action where such standards are inadequate or ineffectively enforced; 

  To bring about optimum amount of self-regulation in day-to-day working of the industry consistent with the requirements of prudential regulation.

Duties Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, -

1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

2. protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;

3. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents

4. Specifying the code of conduct for surveyors and loss assessors;

5. Promoting efficiency in the conduct of insurance business;

6. Promoting and regulating professional organizations connected with the insurance and re-insurance business;

7. Levying fees and other charges for carrying out the purposes of this Act;

8. calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

9. control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

10. Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;

11. Regulating investment of funds by insurance companies;

12. Regulating maintenance of margin of solvency;

13. Adjudication of disputes between insurers and intermediaries or insurance intermediaries;

14. Supervising the functioning of the Tariff Advisory Committee;

15. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);

16. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

17. Exercising such other power as May prescribed.

Grievance Cell

 Cell for redressal of grievances of Policyholders

The Grievance Redressal Cell of the Insurance Regulatory and Development Authority looks into complaints from policyholders. Complaints against Life and Non-life insurers are handled separately. This Cell plays a facilitative role by taking up complaints with the respective insurers.

Policyholders who have complaints against insurers are required to first approach the Grievance / Customer Complaints Cell of the concerned insurer. If they do not receive a response from insurer(s) within a reasonable period of time or are dissatisfied with the response of the company, they may approach the Grievance Cell of the IRDA. The complaints need to be addressed to the Non-life insurance Grievance Cell of the IRDA and forwarded to the address given below.

Only cases of delay/non-response regarding matters relating to policies and claims are taken up by the Cell with the insurers for speedy disposal.

As claims/policy contracts in dispute require adjudication and the IRDA does not carry out any adjudication, insured are advised to approach the available quasi-judicial or judicial channels, i.e., the Insurance Ombudsmen, Consumer fora or the Civil courts for such complaints. The list of Insurance Ombudsmen along with their contact details are available on this website under the heading

‘Ombudsmen’.

Only complaints from the insured themselves or the claimants shall be entertained. The Cell shall not entertain complaints written on behalf of policyholders by advocates or agents or any third parties.

Where complaints are being sent through e-mail, complainants are requested to submit complete details of the complaint as required in the complaints registration form. Without this the Cell will not be in a position to register the complaint.

Registration of Complaints:

Policyholders wishing to register complaints with the IRDA are requested to use the registration form put on this website (to provide the link).

CALL CENTER : TOLL FREE NO:155255

Contact information:

Complaints against Non-life insurance companies: Private Insurers:Shri K.Srinivas, Asst. Director,Insurance Regulatory and Development AuthorityConsumer Affairs DepartmentUnited India Tower, 9th floor, 3-5-817/818, Basheerbagh, Hyderabad – 500 029. e-mail ids:complaints@irda.gov.inPublic Sector Insurers: Mr.R.Srinivasan, Officer on Special DutyInsurance Regulatory and Development AuthorityConsumer Affairs Department

United India Tower, 9th floor, 3-5-817/818, Basheerbagh, Hyderabad – 500 029. 

e-mail ids: complaints@irda.gov.in

Complaints against Life Insurance Companies:Mr. T Venkateswara Rao, Deputy DirectorInsurance Regulatory and Development AuthorityConsumer Affairs DepartmentUnited India Tower, 9th floor, 3-5-817/818, Basheerbagh, Hyderabad – 500 029. 

Dlf Pramerica Life Insurance Company Punjab.

DLF Pramerica Life Insurance Co. is a joint venture between DLF Limited (“DLF”), a leading real estate development company in India, and Prudential International Insurance Holdings, Ltd. (“PIIH”), a fully-owned subsidiary of Prudential Financial, Inc. (“PFI”), a financial services leader headquartered in the U.S. The company commenced operations in India on September 01, 2008 and is expanding its presence in the country in a phased manner. After establishing a strong presence in North India, it has now ventured into West India, starting with Gujarat. It recently opened a branch office in Ahmedabad.

DPLI currently has 14 innovative insurance products in its portfolio, including pure protection, pension, child and unit-linked products. Most of these offer additional Riders - the DLF Pramerica Critical Illness Rider and DLF Pramerica Accidental Death Benefit Rider - giving customers the option to choose from different product combinations. Over time, the company plans to add health and annuity products as well as additional long-tenor protection oriented products. For further information on the company, please visit http://www.dlfpramericalife.com.

About DLF

DLF Limited is India's largest real estate company in terms of revenues, earnings, market capitalization and developable area. It has a track record of over 62-years of sustained growth, customer satisfaction, and innovation and currently has pan India presence across 30 cities. The company has approximately 238 million sq. ft. of completed development and 432 million sq. ft. of planned projects, of which 56 million sq. ft. of projects were under construction during the FY10. DLF is the only listed real estate company to be included in the BSE Sensex, NSE Nifty, MSCI India Index and MSCI Emerging Markets Asia Index. DLF’s core business traditionally has been development of residential, commercial and retail properties. DLF has a unique business model with earnings arising from real estate development and leasing. DLF has entered into several strategic alliances with global industry leaders and has business interests across infrastructure, SEZ, financial services and hotel businesses. Further information on the Company is available on its website http://www.dlf.in/dlf/wcm/connect/DLF_Common/DLF_SITE/HO ...

About PFI

Pramerica is a trade name used by Prudential Financial, Inc. (“PFI”), a company incorporated and with its principal place of business in the United States, and its affiliated companies in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with approximately $693 billion of assets under management as of March 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, PFI is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. PFI's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/. Prudential Financial, Inc. of the United States is not affiliated in any manner with prudential plc, a company incorporated in the United Kingdom.

Plans of DLF Pramerica Life Insurance

Protection Plan - Currently available products to purchase

1. DLF Pramerica Family Income Plan- A plan that ensures that in case you are not there, then your family receives a monthly financial support, the amount of which you have fixed, until the end of the plan term. Your family will receive at least 36 monthly installments.

2. DLF Pramerica Family First - It is designed to ensure your family will be spared the financial gaps in their lives.

3. DLF Pramerica Tatkaal Suraksha Gold – It offers you life insurance without the hassles of lengthy paperwork and gives assured savings without the worry of the ups-and-downs of the market.

Child Progress Plan - Currently available products to purchase

1. DLF Pramerica Free Protect + - It is a unique insurance product that addresses your vital concern as a parent - protecting your child’s school education, come what may.

2. DLF Pramerica Fee Protect – It is a simple, affordable and

straightforward plan that secures the most important priority that any parent has—the schooling of your child.

Saving Plan - Currently available products to purchase

1. DLF Pramerica Dhan Suraksha – It is a money back endowment plan, an ideal savings cum protection plan. With this plan, while you have all the advantages and benefits of a comprehensive insurance cover, you also have assurance of a guaranteed return, free from speculation or risk.

2. DLF Pramerica Assure Money + - A plan that gives the assurance of a minimum guaranteed benefit at maturity along with the advantage of a life insurance cover.

3. DLF Pramerica Wealth+ Premier - The plan gives you a security that your family will be safe & secure in case you are not there to support them. The plan covers the features like-Protection to your family, Potential on higher returns, flexibility, and withdrawal option, offers you option to continue and avail taxBenefit too.

4. DLF Pramerica Ezee Wealth+ - It is a unit linked plan which offers you life insurance without the hassle of lengthy paperwork.

RECRUITMENT AND TRAINING OF LIFE

ASSOCIATE’S IN DLF PRAMERICA LIFE

INSURANCE COMPANY

WHAT IS RECRUITMENT ?

Recruitment is the process of finding, contacting and attracting potential life associates.In DLF PRAMERICA LIFE INSURANCE COMPANY your success as a sales manager, your ability to grow in the agency, your desire to fulfill all your ambitions depends on your ability to do one thing and only one thing exceptionally well, and that is building a team of successful life associates.

The success of your unit depends on the success of the individuals comprising your team and the success of these individuals depends on the quality of folks you bring in.

There are 2 ways to recruit:1. One is on a crash basis, when training starts.2. The second is to recruit continuously so that there is always a steady flow of qualified prospects irrespective of when training starts.For agency to be a successful, recruitment has to be a continuous process.

For recruitment to be continuous, you must take care of the following

1. Attitude- that is positive.

2. Confidence- that you can train and develop the associates you bring.3. Belief-in the job of a life associate in organization and your prospects.

4. Knowledge-of insurance and financial markets.

5. Guts- to wait for the right candidate.

6. Action- to get out and do it.

Recruitment will become fun when it becomes a process!

Making recruitment a habit will help us gain the best people that the industry has to offer. This will make each of our team a strong and robust unit that works to grow the company, the people, and the team.

ROLE AND RESPONSIBILITIES OF LIFE ASSOCIATE

“As a sales manger with DLF Pramerica Life, you are a leader and a driving force.”

You will become the person “who gets things done”. You will be the one who hires new life associates. You will recruit and select them, train them, and work closely with them on sales. You will be a supervisor and a leader. You will also be respective for the morale, team spirit, enthusiasm and success of your team. You must lead by example while inspiring trust and confidence in others.

Key characteristics of a successful sales manager:Leadership

- Be a role model on implementation of different processes- Walk the talk

Production- focus on needs- based selling and activity management- ensure alignment of volume and market share objectives for

the retail business- monitor and evaluate achievement of sales against

expectation- ensure service excellence through effective use of customized

training modules and selling skills program

Recruitment- hire and build a competent team of life associates

Development- self development- team development

o develop professional competencies of the life associateso ensure implementation of the development plans in the

terms of required training and certification for the life associates

o provide on the job training to the life associates in his/her team

Recruitment process

Appointment

Approach

Partnering for success

Candidates’ assessment

sheet & social

network 100

MP-Interview

Name Gathering

Hiring a life associate includes:1. Selling the idea that he needs on opportunity that will help him fulfils his dreams2. Selling your ability to bring success within his reach3. Selling the opportunity4. Selling the organization and its future

Name Gathering-Fishing for Talent

Name gathering is done by following sources1. Controlled sources2. Uncontrolled sources

Controlled Sources

Understanding Controlled Sources:

Personal Contacts: being a life associate is a rewarding opportunity-in terms of earning ability, rewards and recognition. Among people whom we know like our friends and family members, there would be some suitable for being life associates. Identifying and developing them would help build a mutually beneficial and rewarding relationship. And it will give us an opportunity to work with people like us.

Personal Observation: a successful sales manager is a also keen observer. He is on the look out for prospective life associates at all times-while at work, when shopping with family, at a party with friends or a movie with elders. he grabs every opportunity to expend his team with successful and energetic sales professionls.when he observes a great sales person, he steps ahead to get know him better.

Existing Life Associates: given their deep understanding of the business, existing life associates are the single best source for quality prospects. Being successful, they are well versed with the life insurance business and know the requirements to be successful as insurance sales professional. It gives them an opportunity to work with like minded people while making their team successful.

Nominators: the key responsibility of a sales manager recruits quality life associates. It will help us to have a circle of friends/acquaintances that can provide us a steady source of quality names. Nominators help you do just this. a nominators is a person who has the image of a person we are seeking as a life associates due to his profession or position in the society. He/she may be known or unknown to us. Nominators provide names of people they know who may be suitable for this

Who can be nominators?

Nominators may be someone I know or someone I don’t know. A friend who feels is an ideal life associate may not be willing for a change at this point of time. He may however like to help me be successful and therefore provide names of his friends who may be suitable for this opportunity. An aggressive credit card seller whom I met at a mail and contacted for being an insurance sale professional may want to help me for the relation I develop with during my belief interactions.

Controlled sources are more effective as compared to uncontrolled sources.

Uncontrolled SourcesNewspaper AdvertisementDirect MailersNewspaper ArticlesExisting Customer Database

Approaching a prospective life associates

When approaching a prospective life associate our sale objective is to fix a mutually convenient time for a partnering for success program.

Many sales managers start selling the opportunity at the time of approach. This usually does not result in building a productive for successful sales manager sells the opportunity at the partnering for success program.

The approach talk can be either:1. Face 2 face2. Telephonic

Partnering for Success

One of the key challenges of the life insurance industry today is recruitment and selection of candidates with the right caliber.Unfortunately. Most of the recruitment and selection is done on a crash basis. Also a lot of life associates are hired with the idea that they should try to succeed. They may not be committed to the fact that they want to become a life associates. It has been found that recruitment process is selling the opportunity before we know about the industry and the organization to make a definite commitment.

The most effective way to eliminate these problems is through the partnering for success.

Advantages of conducting a partnering for success:

1. Partnering for success helps prospective life associates get a realistic picture of the insurance business and the role of a life associates.

2. It is during partnering for success that we build interest and confidence in our company and show a bright future ahead.3. continuously conducting partnering will provide us a steady flow of prospective candidates and avoid a” one out of one” crisis decision for recruiting life associates.

Presentation Basics

Be smartly dressed and well prepared for your presentation

1. smile-it is the shortest distances between two individuals

2. Make eye contact with all participates as often as possible-make each person feels that you are talking to him or her

3. Avoid too many hand and body movements-they are distracting and make you seem nervous

4. Use a white boars or flip chart to list main points, or draw diagrams or sketches while you talk

5. Pause when making an important point, to check if the participants have understood

6. Stay within the limit-stay on the subject

7. It is a nice idea to ask questions. It helps resolve queries in the minds of the participants

8. Use voice modulation to stress important points

Candidate Assessment Interview

The candidate selection interview is an opportunity to determine the suitability of the candidates

“It is based on the premise that future performance can be predicted using past

behavior”

Be carefully observing the skills and behavior he has exhibited in the past, a sales manager can predict the the chances of success of a prospective life associates.

During the interview, the sales manager attempts to know:Values and motivatorsCompetenciesCoaching ability of the candidateAbility to handle adversity and disappointment

Reference Check

Reference checks come in handy and are conducted for:

1. Job-related inquiries2. Verification of an applicant’s previous work history and skills knowledge and abilities3. Finalists only prior to making a hiring decision and commitment

The applicant gives the details of people from whom you can do the reference check. They usually are previous supervisors and people with who she/he has worked with previously.

How to conduct a reference check:

1. Introduce yourself and state the purpose of your call. Be sure the reference has time to talk. (a) confirm the relationship between the reference and the applicant

(b) Briefly describe the position for which the applicant has applied. Verify basic data such as job title, duties and dates of employment2. Ask job related questions to draw out the references observation and personal assessments of observed work behaviors.3. be consistent. Obtain references for all applicants that you wish to hire4. Maintain confidentiality. Remember that the information you would be receiving from the reference is confidential information.

Conducting an Effective Candidates Assessment Interview

Do’s1. Be prepared for an interview. Doesn’t start with lazy man

interviewing technique: tell me something about yourself?2. create a relaxed atmosphere3. remain objective4. make a record of all questions to bring out the candidates true

personality5. base your judgment on facts

Don’t1. interrupt the candidates train of thoughts2. take a boss vs. subordinate attitude3. Be interrupted while conducting the interview. its best to put

the phone on silent

Activity

Identity which of the following is a recommended behavior of the sales manager:-

1. When interviewing a prospective life associates, a sales finds that he has very good communication and persuasion skills. However the candidate is interested in an opportunity with fixed working hours.

2. When interviewing a prospective life associates, a sales manager finds that their hometown is the same. The sales manager therefore decides to recruit him.

3. While interviewing a prospective life associates, the sales manager found a very good person. He however revealed that he shares commission with his clients to get business. While this is unethical, the sales manager decides to ignore it and recruit this candidate.

4. The sales manager was unable to complete his recruitment targets. He met a candidate who was desperately in need of a

job. Even though he did not have the competencies to be a successful life associates, the sales manager decided to recruit him. After all his need for money was a great motivator.

5. ABC is a very successful sales manager. He has been very good in personal production and now wants to build a great team. While interviewing a prospective life associate, he continuously answered his client calls and 2 hours to complete.

6. While interviewing a candidate, the sales manager finds out that he was asked to leave his previous job. Since he was uncomfortable discussing such a situation, he decided to reject the candidate.

7. The sales manager meets a candidate who has very good communication skills. However he has been working as accounts executive for the last 10 years, since his communication skills are good, sales manager decide to recruit him. This may be his big break in life.

After important discussion and meeting, sales manager take the decision to recruit that person as a life associate or not.

Sales manger briefly checks the documents of prospective life associate and verifies the documents carefully.

The whole process which is given above is the recruitment process of prospective life associate in DLF Pramerica Insurance Company

WHAT IS TRAINING

It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees.

Training is activity leading to skilled behavior.

It’s not what you want in life, but it’s knowing how to reach it

It’s not where you want to go, but it’s knowing how to get there

It’s not how high you want to rise, but it’s knowing how to take off

It may not be quite the outcome you were aiming for, but it will be an outcome

It’s not what you dream of doing, but it’s having the knowledge to do it

It's not a set of goals, but it’s more like a vision It’s not the goal you set, but it’s what you need to achieve it

Training is about knowing where you stand (no matter how good or bad the current situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through professional development.

ROLE OF TRAINING

IRDA TRAINING

To enable insurance agents to get mandatory training on a virtual mode, the Insurance Regulatory and Development Authority (IRDA) has recently authorized C&K Management Ltd to offer on-line training facility.

The web-based methodology enables the candidate to learn from any location, at any time. The course offers a minimum of 150 hours of e-learning. Every person intending to become insurance agent must have minimum 100 hours practical training at IRDA approved institutes. So far, the authority had given approval to the traditional classroom-based institutes.

C&K Management offers training through its TheManageMentor.com with a standardized course curriculum and methodology. The ‘self study online’ and ‘interactive learning’ approaches make the learning customized to individual learners. The portal is Asia’s first knowledge & networking eClub and electronic Continuous Professional Education (eCPE) tool for professionals across domains, industries and geographical

locations. There are about 23 new players in the market with an estimated five lakh job opportunities in the next five years...

IRDA GUIDELINES

STANDARD INSTRUCTIONS AND GUIDELINES APPLICABLE FOR APPROVAL/RENEWAL OF ON-LINE AGENTS TRAINING INSTITUTES (PORTALS) APPROVED/TO BE APPROVED BY THE AUTHORITY

These instructions/guidelines are applicable to all the on-line training institutes. These guidelines will be effective from 1st June, 2010 any violation, non-adherence and breach of these instructions shall be treated as violation of provisions of IRDA Act, Insurance Act and regulations made there under requiring practical training for the grant of license to an insurance agent and renewal thereof and met with penal provisions including fine, suspension, and cancellation of the approval granted by the Authority from time to time

  1. The fresh accreditation will be given twice in a year on need basis and depending upon the availability of good infrastructure in

the Institute for the purpose of hosting on-line training portal. In order to ensure that only professional players come into such business, the following standards are mandatory for the all the applicant for fresh/renewal of on line portal:-

Institutes who are engaged in online training for financial/insurance products for more than 3 years are eligible to apply for starting an online portal however this shall not apply to insurer to go for online portal provided they meet all the criteria laid down for online training institutes.

Only companies registered with ROC, Societies & Trusts are eligible to apply for accreditation.

On-line ATI should have ISO-9000 certification for education and training.

On-line ATI shall host the training portal in an exclusive server hosted in a data center located either at its premises or at an ISP’s location based in India

The Internet Data Center should have been classified as Tier-3 and above.

The data CENTER should have ISO-20001for services & 270001 certifications.

Firewall / UTM setup of training portal should be exclusive for the portal.

System logs, Web server log, Firewall logs and all different logs essential for security audit should be maintained for minimum period of 6 months.

2. The initial approval will be for a period of one year and consideration of further renewal depends on the satisfactory compliance of requirements of accreditation and the training conducted during the period of approval.

3. Every Institute should have permanent/part time faculty qualified as prescribed by the Authority for each stream to solve the on-line queries of the students. The number of such faculty will

depend on average number of candidates undergoing training on the basis of one trainer per 500 candidates in a month.

4. The Training Institute should have adequate arrangement in place to incorporate changes in the portal at short notice. The following technical changes are to be effective before June 1st 2010, continue with training:

Challenge questions on Insurance domain at random intervals: Each candidate will be posed challenge questions at random intervals which has to be answered within a pre-defined time limit. These questions will be picked up from a large pool of questions maintained by the online ATI. The questions will be posed based on difficulty and the syllabus already covered by the candidate. A set of rules should be defined which the application will check and based on which the decision will be taken on the candidate proceeding with the training or not.

“Captcha” at random intervals during the training: A captcha challenge is posed to the candidate at random intervals. This can be a combination of letters and digits challenges. The user has to respond to the challenge within a pre-defined time and if the answer is incorrect then the candidate is not allowed to progress with the training.

Centralized Repository / Monitoring System for On-line Training Institutes: Online ATIs will be provided separate web services using which the transactions can be transferred to IRDA on real time.

Linking MAC address to each training session: Multiple logins should not be allowed from the same computer. All ATIs to incorporate this in their application software and prove it to the independent authority referred to in the earlier recommendation. Each ATI will provide the independent authority a test login to verify the same.

Password Communications through SMS: For all those candidates who wish to take online training, the email ID & mobile phone are mandatory. Whenever, the candidate wishes to take a training session, he will make an online request in ATI portal requesting for the password. The portal will immediately send the password through SMS to the candidate. The password communicates to the candidate would valid for a session and automatically expire at the end-of- Each session. Session detail will capture the IP address, login, password, date/time stamp and the captcha challenge details. At each logoff the password will change and communicated through SMS to the candidates.

Learning Session: Study Session should be restricted to four hours and after expiry of each session a new password should be generated and sent to the candidates through SMS only.

System logs, Web server log, Firewall logs and all different logs essential for security audit should be maintained for a minimum period of 6-months.

5. The existing and new ATI must have obtained the audit certificate through an empanelled auditor of CERT.

6. Periodic Audits: IRDA will conduct periodic audit of the ATI’s process and technology. These should be surprise audits to ensure that the all the policies laid out by IRDA are adhered to.

7. The employment details of the faculty/Web administrator whether full-time or part-time with payment made should be available at the Institute.

8. The online ATI’s will register and impart training to insurers sponsored candidate on IRDA portal and mark the completion of training on IRDA training portal only.

9. Database should be maintained by the Web administrator at the

training institute giving details of candidates who have completed their training, name of the faculty/administrator who solved the on-line user’s problem during the tenure of the training. The record of test at the end of each chapter or at the end of the training on the basis of question bank of the training provided must be recorded in the database.

10. No marketing fee/consultancy fee/brokerage fee payment is permitted for getting the trainees.

11. (i) - The existing Institutes may convey their willingness to abide by these instructions on a simple form. The information may include: Name & Address of the Institute, Date of Accreditation of the Institute, Expiry date of validity of the Accreditation, Accreditation granted for Life/General or both, Name of the In-charge of the Institute.(ii)- The above information must reach the Authority within 15 days from the date of issuance of these guidelines. The consolidated list of approved training institutes will then be placed and updated from time to time on our web-site so that Insurance Companies can approach them for conduct of training.

12. Prior approval of the Authority must be obtained if the Training Institute intends to change any of the particulars, details or provisions already approved by the Authority. All such changes would be simultaneously incorporated on IRDA web-site.

13. There must be an exclusive portal for the on-line agents training and on the portal no advertisement should be displayed.

14. All the training institute who wish to apply the on-line training accreditation may be required to make a live demonstration of the portal at the Authorities headquarters at Hyderabad.

15. A set of other technical points (Annexure I) must be

incorporated for new / renewal of the license for on-line training institutes (portals).

16. On-line facility to monitor login/ logout and other activities on their site is attached as annexure-II.

17. During the process of granting accreditation the applications will be sent to Insurance Institute of India who will engage an expert organization in web based technology for the purpose of verification of these guidelines by the applicant.

SELLING WITH TRAINING

In the training portion, DLF co. give training to newly recruited life associate to know the working of life associate. Training is given by the sales manager or authorized person of IRDA. This training is based on the working of life associate. It is necessary for every life associate to know the working profile of a successful life associate.

When a person is recruited as a life associate, he take the training from company in which he want to be a life associate. His/her inner qualities are developed by the trainer by the training.

In selling with training portion trainees take the advantage to face actual life

Following procedure is used in selling with training in DLF insurance co.:

-Telephonic Approach: in the telephonic approach trainee trained by using telephones. Trainees connected the various people through their contact numbers which is given by the co. or their own contacts

Trainer gives a prescribed script which is used by the trainees. That script helps the trainee to know how they communicate with customer to earn the business.

-Meetings: in meetings trainees meet the customer at a suitable time which is mutually set by the customer and the life associate through telephonic approach.

In the meeting they learn about to how they present the plans and policies of the co. which is easily understand by the customer.-Presenting: in presenting portion trainees come to know about the presentation of plans and policies premium sum assured and many more things which is essential for insurance business.

-Closing: in the closing pat trainees learns about the procedure of closing the meeting with insurance business. If customer is not ready to invest the money in the business then that is not balled closing.

-References: after taking business from the customer life associate ask for some references which helps the life associate to expand the business of the co.

That is the process of selling with training

KNOWLEDGE UPGRADETION

-IRDA Guidelines: in the knowledge upgradetion trainees know the important guidelines of the IRDA. This guidelines used in every step of insurance sector.

-Product Training: in product training trainees take the information about the different products of the company

-Learn Changes: trainees also know the changes which occur during the specified period.

This is the process of training of life associate in DLF Pramerica Life Insurance Company which is given above.

BIBLIOGRAPHY

WWW.GOOGLE .COM

WWW.DLFPRAMERICALIFEINSURANCECO.COM

OWN RESERCH