YUGAL Project

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SUMMER TRAINING REPORT

ON

Recruitment and selection of life

insurance

Agent

In the partial fulfillment of the Degree of Master of Business Administration

Session (2008-2010)

Submitted to Submitted by

Miss. Anjali Kaushik Yugal Mehta

Assistant Professor MBA 3rd Semester

SASIIT, MOHALI

Regn. Cum Roll No.

254

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PREFACE

Practical training is an important part of management courses. Theoretical studies are notsufficient to get into corporate world and understand the complexities of large-scale

organizations.

Practical training exposes us to real practices of management in the organization. It alsoexposes students to the treasures of experience, knowledge and leaning whichprerequisites of making a successful career are.

I deem it privilege to have undergone this project. I acknowledge that the practicaltraining that I got from this cannot be gained otherwise. I found my project veryinteresting and challenging.

(Yugal Mehta)

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ACKNOWLEDEMENT

Project is a practical experience to add new knowledge. This is possible only in theguidance, advice and help from a number of sources. Like a human being cannot livewithout food like that it is not possible to make a project without the advice, help and

guidance.

I am finding it difficult that in what words I express my sense of indebt ness and gratitudeto all those who have helped me in accomplishing the project. Without the helped orguidance I am not able to fulfill my aim. So if I dont formally acknowledge to all thosewho assisted and guide me, it is a sense of self-centeredness.

So in my nest lines, I would like to appreciate and dive m special thanks to my projectguide Miss.Anjali kaushik for giving me the guidance, suggestion and time during myproject. Like a plant can grow only if water regularly provided to it in the same way myefforts are fruitful only with the suggestion and guidance of Miss.Anjali kaushik.

I would like to give my special thanks to Mr. Gurjeet kaur and Navjeevan Sharma(branch manager of bharta axa life insurance) under whose guidance I have completedmy training. Last but not the least I wish to thank almighty and my family, who helpedme in regenerating my enthusiasm whenever I have needed it the most.

I thank them for co-operation from all of them

(Yugal Mehta)

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STUDENT DECLARATION

I hereby declare that study of process of recruitment and selection of life insurance agent has beenexclusively done by me for the degree of MASTERS OF BUSINESS ADMINISTRATION and not forany other degree, Diploma or fellowship. This is my own study done under the guidance of guide and

company heads of the company.I hereby declare that the contents of this report are true and best to my knowledge.

Place:Solan Yugal Mehta

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DECLARATION

This is to certify that the project report entitled the process of recruitment and selection

of Life insurance agent submitted for the degree of MBA for Himachal PradeshUniversity, Shimla, On the basis of Industrial Internship (1july, 2009 to 31August,2009) is a bonafied research work carried by Yugal Mehta, student of SILB under myguidance.This assistance and help received during the course of investigation have been fullyacknowledged.

Project Co-coordinator

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Executive summary

Introduction: A general term insurance is related to service sector. Insurance isconcerned with the protection of economic value of assets. For example in case of afactory or a cow, the product generated by it is sold and income is generated. In this

project the Bharti AXA Life Insurance Company is undertaken which is one of thepopular sector insurance sectors. The analysis of Bharti AXA Life Insurance is takenform different sectors.For creating strong relationship and for a success full business every insurance companyrequired financial planner.

Objective of the study:How to recruit agents for Bharti-AXA life insurance.To understood the process of recruitment and selection of agent in life insurance.Why people are not willing to work as an agent in life insurance sector specially withprivate companies.

Need of the study:The study is undertaken to know how many people are interested to work as lifeinsurance agent in Bharti AXA and their thinking about the Bharti AXA Life InsuranceCompany or about private insurance company.

Conclusion:In India, there is throat cut competition in the market of life insurance that brand servicewhich adopt new strategies for sales. I concluding the whole story it can be said thatpeople are much more aware about the aspects of life insurance and also have knowledgeabout the role and act of agent but mostly people unwilling to work as life insurance

agent and mostly people prefer to work with LIC because it is a semi governmentcorporation.

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Table of Contents

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CHAPTER NO. PARTICULARS PAGE NO.

CHAPTER 1 INDUSTRY PROFILE 8-21

CHAPTER 2 Company profile 22-39

CHAPTER 3 INTRODUCTION 40-59

CHAPTER 4 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY,SAMPLE SIZE AND SAMPLINGTECHNIQUES

60-62

CHAPTER 5 ANALYSIS 62-78

CHAPTER 6 LIMITATIONS 79

CHAPTER 7 FINDINGS,CONCLUSION 80-81

CHAPTER 8 SUGGESTIONS 82-83

CHAPTER 9BIBLIOGRAPHY

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WHAT IS INSURANCE

The business of insurance is related to the protection of the ECONOMIC VALUES OFASSETS. Every asset has a value. The asset would have been created through the effortsof the owner. 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 form it. It is abenefit because it meets some of his needs. The benefit may be an income or in someother form. In the case of a factory or a cow, the product generated by it is sold andincome is generated. In the case of a motor car, it provides comfort and convenience intransportation. There is no direct income. Both are assets and provide benefits.

Every asset is expected to last for a certain period of time during which it will provide thebenefits. After that, the benefit may not be available.There is a life-time for a machine in factory or a cow or a motor car. None of them willlast for ever. The owner is aware of this and he can so manage his affairs that by the endof that period or life-time, a substitute is made available. Thus he makes sure that the

benefit is not lost. However, the asset may get lost earlier. An accident or some otherunfortunate event may destroy it or make it incapable of giving the benefits. An epidemicmay kill the cow suddenly. In that case, the owner and those enjoying the benefitstherefore, would be deprived of the benefits. The planned substitute would not have beenready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps toreduce the effects of such adverse situations. It promises to pay to the owner orbeneficiary of the asset, a certain sum if the loss occurs.

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HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000 BC. TheChinese traders, traveling treacherous river rapids would distribute their goodsamong several vessels, so that the loss form any one vessel being lost, would be

partial and shared, and not total. The Babylonian traders would agree to payadditional sums to lenders, as the price for writing off the loans, in case of theshipment being stolen. The inhabitants of Rhodes adopted the principle of generalaverage of general average, whereby, if goods are shipped together, the ownerswould bear the losses in proportion, if loss occurs, due to jettisoning duringdistress. {Captains of ships caught in storms, would throw away some of thecargo to reduce the weight and restore balance. Such throwing away is calledjettisoning} The Greeks had started benevolent societies in the late 7 th centuryAD, to take care of the funeral and families of members ho died. The great fire ofLondon in 1666,in which more than 13000 house were lost, gave a boost toinsurance and the first fire insurance company, called the fire office, was started

in 1680. The origins of insurance business as in vogue at present, is traced to the Lloyds

Coffee House in London. Traders, who used to gather in the Lloyds coffee housein 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 ofbecause of bad weather spoiling the goods or sinking the ship. In India, insurancebegan in 1818 with life insurance being transacted by an English company, theOriental Life Insurance Co. in 1870 in Mumbai. This was followed by the BharatInsurance co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai, TheUnited India in Chennai, the National, the National Indian and HindustanCooperative in Kolkata

Later, were established the cooperative Assurance in Lahore, the Bombay Life(originally called the swadeshi life), the India Mercantile, the new India and theJupiter in Mumbai and the Lakshmi in New Delhi. These were all Indiancompanies started as a result of the swadeshi movement in the early 1900s. By theyear 1956, when life insurance business was nationalized and the life InsuranceCorporation of India (LIC) was formed on1st September 1956, there were 170companies and 75 provident fund societies transacting life business in India. Afterthe amendments to the relevant laws in 1999, the L.I.C. did not have the exclusiveprivilege of doing life insurance business in India. By 31.8.2007, sixteen new lifeinsurers had been registered and were transacting life insurance business in India.

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The history of insurance in India

Insurance in India began in the year 1870.

As the Swadeshi movement was catching up many more Indian companies were

formed.

The insurance companies were nationalized in 1956.

There were 170 insurance companies and 75 provided fund securities which gotmerged and on 1st of sept 1956 Life Insurance Corporation of India was born.

In 1993, the Malhotra committee, headed by the former RBI Governor R. N. Malhotrawas appointed. This committee submitted the report a year later and recommendedPRIVATION.

Private players started operations in the year 2000.

The Insurance Regulatory & Development Authority (IRDA) came in being & nowregulates all insurance business in India.

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Life insurance a basic need

Life insurance is a contract providing for payment of a sum of money to the personassured or, failing him, to the person entitled to receive the same, on the happening of

certain event.

A family is generally dependent for its food, clothing and shelter on the income broughtin at regular intervals by the bread winner of the family. So long as the he lives and theincome is received steadily, that family is secure; but should death suddenly intervene thefamily may be left in a very difficult situation and sometimes, in stark poverty.

Uncertainty of death is inherent in human life. It is this uncertainty that is risk, whichgives rise to the necessity for some form of protection against the financial loss arisingfrom death; insurance substitutes this uncertainty by certainty.

Some outstanding advantages of life insurance.

1. It is superior to an ordinary savings plans: This is so because unlike other savingplans, it affords full protection against risk of death. In case of death, the full sum assuredis made available under a life assurance policy; whereas under other savings schemes thetotal accumulated savings alone will be available. The latter will be considerably lessthan the sum assured, if death occurs during early years.

2. Insurance encourages and forces thrift: a savings deposit can be too easilywithdrawn. Many may not be able to resist the temptation of using the balance for some

less worthy purpose. On the other hand, the payment of life insurance premiums becomesa habit and comes to be viewed wit the same seriousness as the payment of interest on amortgage. Thus insurance, in effect brings about compulsory saving.

3. Easy settlement and protection against creditors: the life assured can name a personor persons to whom the policy moneys would be payable in the event of his death. Theproceeds of a life insurance policy can be protected against.The claims of the creditors ofthe life assured by effecting a valid assignment of the policy. A married womensproperty act policy constitutes a trust in favor of the wife and children and no separateassignment is necessary. The beneficiaries are fully protected from creditors except to theextent of any interest in the policy retained by the assured

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4. Administering the legacy for beneficiaries: It often happens that a provision which ahusband or father has made through insurance is quickly lost through speculative orunwise investment or by unnecessary expenditure on luxuries. These contingencies canbe provided against in the case of insurance. The policyholder can arrange that in the in

the event of his death the beneficiary should receive, instead of a single sum (a). paymentof the net claim amount by equal installments over a specified period of years, or(b).payment of the claim amount by smaller monthly installments over the selectedperiod followed by a lump sum at the end thereof.

5. Ready marketability and suitability for quick borrowings: After an initial period, ifthe policy holder finds himself unable to continue payment of premiums he can surrenderthe policy for a cash sum. Alternatively he can tide over a temporary difficulty by takingloan on the sole security of the policy without delay. Further a life insurance policy issometimes acceptable as security for a commercial loan.

6. Tax relief: for computing income tax (especially in India the Indian income tax act)follows deduction from income tax payable, a certain percentage of a portion of thetaxable income of individuals which is diverted to payment of insurance premiums.When this tax relief is taken into account it will be found that the assured is n effectpaying a lower premium for his insurance.

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How insurance works

The mechanism of insurance is very simple. People who are exposed to the same riskscome together and agree that, if any one of the members suffers a loss, the others willshare the loss and make good to the person who lost. All people who send goods by ship

are exposed to the same risk related to water damage, ship sinking, piracy, etc. thoseowning factories are not exposed to these risks, but they are exposed to different kinds ofrisks like, fire, hailstorms, earthquakes, lightening, burglary, etc. like this, different kindsof risks can be identified and separate groups, made including those exposed to suchrisks. By this method, the risk is spread among the community and the likely big impacton one is reduced to smaller manageable impacts on all.

If a Jumbo Jet with more than 350 passengers crashes, the loss would run into severalcrores of rupees. No airline would be able to bear such a loss. It is unlikely that manyJumbo Jets will crash at the same time. If 100 airline companies flying Jumbo Jets, cometogether 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 sharing.

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Role of Insurance in Economic Development

For economic development, investments are necessary. Investments are made out ofsavings. A life insurance company is a major instrument for the mobilization of savingsof people, particularly from the middle and lower income groups. These savings are

channeled into investments for economic growth.

An insurance companys strength lies in the fact that huge amounts come by way ofpremiums. Every premium represents a risk that is covered by that premium. In effect,therefore, these vast amounts represent pooling of risks. The funds are collected and heldin trust for the benefit of the policyholders. The management of insurance companies isrequired to keep this aspect in mind and make all its decisions in ways that benefit thecommunity. This applies also to its investments. This is why successful insurancecompanies would not be found investing in speculative ventures. Their investmentsbenefit the society at large.

The system of insurance provides numerous direct and indirect benefits to the individualand his family as well as to industry and commerce and to the community and the nationas a whole. Those who insure, both individuals and corporate, are directly benefitedbecause they are protected from the consequences of the loss that may be caused by theaccident or fortuitous event. Insurance, thus, in a sense protects the capital in industry andreleases the capital for further expansion and development of business and industry.

The every existence of risk that is, uncertainty concerning the future, is a severehandicaps in economic activities. Insurance removes the fear, worry and anxietyassociated with this future uncertainty and thus encourages free investment of capital inbusiness enterprises and promotes efficient use of existing resources. Thus insurance

encourages commercial and industrial development and there by contributes to a vigorouseconomy and increased national productivity.

Present day organization of industry, commerce and trade depend entirely on insurancefor their operation, banks and financial institutions lend money to industrial andcommercial undertakings only on the basis of the collateral security of insurance. Nobank or financial institution would advance loans on property unless it is insured againstloss or damage by insurable perils.

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Insurers are closely associated with several agencies and institutions engaged in fire lossprevention, cargo loss prevention, cargo loss prevention, industrial safety and road safety.Before acceptance of a risk, insurers arrange survey and inspection of the property to beinsured, by qualified engineers and other experts. The object of these surveys is not only

to assess the risk for rating purposes but also to suggest and recommend to the insured,various improvements in the risk, which will attract lower rates of premium and what ismore important , reduce the loss potential. For example, burglary surveyors makerecommendation in regard to security measures such as better locking system,appointment of Watchman, etc. Engineering surveys play a most useful part in accidentprevention as valuable technical advice is provided in respect of plant and machinery.

Insurance ranks with export trade, shipping and banking services as earner of foreignexchange to the country. It helps to earn foreign exchange and represent invisible exports.

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History of bharti AXA life insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leadingbusiness groups with interests in telecom, agri business and retail, and AXA, world leaderin financial protection and wealth management. The joint venture company has a 74%stake from Bharti and 26%stake of AXA.

The company launched national operations in December 2006. Today, company haveover 8000 employees across over 12 states in the country and a national footprint ofdistributors trained to provide quality financial advice and insurance solutions to the largeIndian customer base. Open first branch office in Hyderabad. Introduces 2 unit linked

products- future confident and wealth confident

As we further expand our presence across the country with a large network ofdistributors, we continue to provide innovative product and service offerings to cater tospecific insurance and wealth management needs of customers. Whatever your plans inlife, you can be confident that Bharti AXA Life will offer the right financial solutions tohelp you achieve them.

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http://www.shriramlife.com/http://www.shriramlife.com/http://www.bharti-axalife.com/http://www.idbifortis.com/


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Executives

MR. Nitin ChopraChief Executive officer

Mr. V. SrinivasamChief Financial Officer

Mr. Mark MeehanCheir Operating Officer

Mr. Sandeep NandaChief Investment officer

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http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.aegonreligare.com/http://www.dlfpramericalife.com/http://www.irdaindia.org/www.bharti-axagi.co.in


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Bharti-AXA perform over following cities

Hyderabad

Mumbai

Delhi

Bangalore

Kolkata

Chennai

Ahmedabad

Ludhiana

Lucknow

Surat

Kochi

Indoor

Chandigarh

Vadodra

Bhubneshwar

Jaipur

Mohali

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Bharti-AXA strategy

To achieve a to 5 market position in India through a multi-distribution, Multi-product platform.

To adapt AXAs best practice blueprints as a sound platform for profitablegrowth.

To deliver high levels of shareholder return.

To build long term value with our business partners by enhancing the propositionfor their customers.

To be the employer of choice to attract and retain the best table in India.

To be recognized as being close and qualified by our customers.

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Bharti group

Bharti Airtel

Bharti Teletech

Telecom Seychelles

Comviva Technologies Ltd

Field Fresh Foods Pvt. Ltd

Bharti Retail

Bharti AXA General Insurance

Bharti AXA Life Insurance

Bharti AXA Investment Managers

Centum Learning Limited

Jersey Airtel

Guernsey Airtel

Bharti Foundation

Bharti Realty

Bharti Infratel

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http://www.airtel.in/http://www.bharti-teletech.net/http://www.airtel.sc/http://www.bhartitelesoft.com/http://www.fieldfreshfoods.in/http://bharti.com/ourcompanies.html#bhartiretailhttp://www.bharti-axagi.co.in/http://www.bharti-axalife.com/http://www.bhartiaxa-im.com/http://www.bhartiresources.com/http://www.airtel-vodafone.je/http://www.airtel-vodafone.gg/http://www.bhartifoundation.org/http://bharti.com/ourcompanies.html#bhartrealtyhttp://www.bharti-infratel.com/http://www.airtel.in/http://www.bharti-teletech.net/http://www.airtel.sc/http://www.bhartitelesoft.com/http://www.fieldfreshfoods.in/http://bharti.com/ourcompanies.html#bhartiretailhttp://www.bharti-axagi.co.in/http://www.bharti-axalife.com/http://www.bhartiaxa-im.com/http://www.bhartiresources.com/http://www.airtel-vodafone.je/http://www.airtel-vodafone.gg/http://www.bhartifoundation.org/http://bharti.com/ourcompanies.html#bhartrealtyhttp://www.bharti-infratel.com/


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Bharti Enterprises

Bharti Airtel Ltd:

Bharti Airtel Ltd is Indias leading provider of telecommunications service. The companyhas 4 distinct Business divisions- mobile and telephone services, broadband services,long distance services and enterprise services,

Bharti Teletech Ltd

Bharti Teletech Ltd manufactures and exports world-class telecom equipment under thebrand Beetel.

Telecom Seychelles Ltd

Telecom Seychelles ltd provides telecom services in Seychelles, under the brand Airtel.

Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading

business groups with interests in telecom, agri business and retail, and AXA, world leaderin financial protection and wealth management. The joint venture company has a 74%stake from Bharti and 26%stake of AXA.

Bharti Telesoft Ltd

Bharti Telesoft Ltd delivers best-in-class,Revenue-critical Vas products and service to telecom carriers,

Tele Tech Service Ltd

Tele Tech Service (India) Ltd is Joint venture with Tele Tech Inc., U.S.A. It offers arange of Customer Management Services.

Field Fresh Foods Pvt Ltd

Field Fresh Foods Pvt Ltd is Bhartis Venture with EL Rothschild Group owned ELROholding India Ltd., to export fresh Agricltural products exclusively to markets in Europeand USA.

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AXA

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diversegeographically, with major operations in Western Europe, North America and theAsia/Pacific area. AXA had Euro 1,315 billion in assets under management as ofDecember 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion,IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings toEuro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris StockExchange. The AXA American Depository Share is also listed on the NYSE under theticker symbol AXA.

AXA Asia Pacific Holdings

AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchangeand is 52.3% owned by AXA SA. AXA APH is responsible for AXA SAs life insuranceand wealth management businesses in the Asia-Pacific region. It has operations inAustralia, New Zealand, Hong Kong, Singapore, Indonesia, Philippines, Thailand, China,India and Malaysia. AXA APH had A$106.4 billion in total funds under management and

administration at 30 June 2007 and reported a profit after tax before non-recurring itemsof A$374.0 million for the six months ended 30 June 2007.

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MAJOR COMPETITORS OF BHARTI AXA LIFE AND GENERALMAJOR COMPETITORS OF BHARTI AXA LIFE AND GENERALINSURANCEINSURANCE

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956to spread the message of life insurance in the country and mobilise peoplessavings for nation-building activities. LIC with its central office in Mumbai andseven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur andBhopal, operates through 100 divisional offices in important cities and 2,048

branch offices. LIC has 5.59 lakh active agents spread over the country. The Corporation also transacts business abroad and has offices in Fiji, Mauritius

and United Kingdom. LIC is associated with joint ventures abroad in the field ofinsurance, namely, Ken-India Assurance Company Limited, Nairobi; UnitedOriental Assurance Company Limited, Kuala Lumpur; and Life InsuranceCorporation (International), E.C. Bahrain. It has also entered into an agreementwith the Sun Life (UK) for marketing unit linked life insurance and pensionpolicies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billionwhile GIC recorded a net premium of $ 1.3 Billion. During the last 15 years,

LIC's income grew at a healthy average of 10 per cent as against the industry's 6.7per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).

LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC's claimssettlement ratio at 95 per cent and GIC's at 74 per cent are higher than that ofglobal average of 40 per cent. Compounded annual growth rate for Life insurancebusiness has been 19.22 per cent per annum.

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that bringstogether two large forces - Max India Limited, a multi-business corporate,

together with New York Life International, a global expert in life insurance. Withtheir various Products and Riders, there are more than 400 product combinationsto choose from. They have a national presence with a network of 57 offices in 37cities across India.

ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,a premier financial powerhouse and prudential plc, a leading international

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financial services group headquartered in the United Kingdom. ICICI Prudentialwas amongst the first private sector insurance companies to begin operations inDecember 2000 after receiving approval from Insurance Regulatory DevelopmentAuthority (IRDA). The company has a network of about 56,000 advisors; as wellas 7 banc assurance and 150 corporate agent tie-ups.

Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between KotakMahindra Bank Ltd. (KMBL), and Old Mutual plc.

Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Groupand Sun Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

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Products of Bharti-AXA life insurance are:-

Bright stars

This is a regular premium unit-linked insurance policy, which, which offers youthe twin benefits of protecting your loved ones and creating wealth for them overthe desired period.

As a caring parent, you want only the best for your child. As your child grows, hisaspirations will grow too and so will your responsibilities. Whether its higherstudies abroad, a grand wedding or a comfortable home you can now ensurethat your child is always one step ahead

You can fulfill all the dreams you have for your child, and give him what hedeserves. A bright future!

The plan also offers the flexibility to make modifications, depending on thechanging needs of your child. As his dreams grow, the plan will grow too sofinancial hurdles will never come in the way of his growing dreams! With BhartiAXA Life Bright Stars,

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Parameter Eligibility

Minimum age at entry 18 years

Maximum age at entry 70 years minus policy benefit periodchosen.E.G: for policy benefit period of 17 years,the maximum age at entry is 53 years.

Maximum age at maturity 70 years

Minimum premium Rs.15,000 p.a. for annual & semi-annualmodes Rs18,000 p.a for monthly mode

Premium modes Annual, semi-annual and monthly

Policy benefit periods available 7 years,10 years,15 years, 17 years and 20years

Minimum top-up premium Rs. 2,500


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The main advantages of Bharti AXA Life Bright Star Product

You can enhance your protection in this product by adding riders.

You get a smart financial solution through this product. Not only does the SumAssured gets paid out in case of unfortunate event of death, but Bharti AXA Lifewill pay all your future premiums to ensure that the ambitions of your loved onesare achieved.

You have the option of investing across 4 funds, depending upon your riskappetite and return expectation and you can make use of the switch facility tochange your asset allocation.

Tax benefits for premiums paid and benefits received, as per the prevailing Taxlaws.

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Minimum age at vestingMaximum age at vesting

45 years80 years

Premium modes Single pay, yearly, Half-yearly ,Quarterlyand monthly

Minimum premium Annual Regular Premium:Rs.12, 000p.a.

Minimum policy term 10 years

Minimum top-up premium Rs.2, 500 and no maximum limit on top-uppremium and top up allowed only after firstpolicy year.

MERIT PLUS

This is a regular premium unit-linked insurance policy which offers you the twin benefitsof protection against financial loss in the unfortunate event of the death and helping you

to create wealth systematically over the long-term. Hence this product is suitable for yourlong-term objective like retirement planning, childrens future and giving a totalprotection to you and your family.


Minimum age at entry0 year

Maximum age at entry 60 years (For death benefit option A)55 years (For death benefit option b)

Maturity age 80 years (for death benefit option A)75 years (for death benefit option B)

Policy benefit period 80 year less age at entry (for death benefitoption A)75 years less age at entry (For death benefitoption B)

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Premium payable periodYearly, Half-Yearly And Monthly

Minimum premium Rs.10,000

Minimum Top-up premium 500

Benefits of Bharti AXA Life merit plus

Life Insurance benefit:

In merit plus the policy holder must have to choice one option out of the two.1. Death Benefit Option ASum assured(less all partial withdrawals made form the basic policy fundduring the 12 months prior to the date of death of life assured) or the policyFund Value as on the date of intimation of death, which is higher, will be paid.

2. Death benefit option B

The sum of sum assured and the policy fund value as on the date of intimationof death will be paid.

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Future confident

Future confident is a suitable product for you, if your objective is long-term targetedwealth creation over 15-20 year, either for your own retirement or for your childrens

future, while at the same time providing your family enhance financial protection.


Minimum age at entry0 year

Maximum age at entry 60 years

Maturity age 70 years

Policy benefit period 70 year less age at entry

Premium payable periodYearly, Half-Yearly, quarterly and Monthly

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Introduction of the process ofrecruitment and selection of

agent

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Objectives of the study:-

To understand the process of recruitment and selection of agent in Bharti AXAlife insurance.

How to recruits agent for Bharti-AXA life insurance

To know about the view of general public about the job of agent

Why people are not willing to work with as an agent, especially with privateplayer.

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Skills required using them.

However, you should also include work benefits (e.g., vacation, travel and perks), general

working conditions (e.g., scheduling, outside work) and the specific traits required (e.g.,teambuilding and communications skills). Ultimately, you want to be perceived as anattractive employer in a competitive market.

Find the right recruitment vehicle choose the vehicle that best works for your company,depending on your budget and resources.Word of mouth, or simply telling your employees, friends and colleagues about a jobopening, is a less expensive strategy but generates fewer candidates. The advantage isthat you already know something about your recruiters and their skills, knowledge andachievements. This is a preferred method with companies that have a finder's fee program

for their employees.

Advertising is a toss of the dice. If it goes well, it can help you find ideal candidates in aregional, national, or international pool. If not, it's a costly investment yielding fewresults. Make sure to factor in the time it takes to go througha large number of resumes.

Employment agencies cost more but generally provide a good range of candidates. The

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(g) The fee for a licence is Rs.825 for individual. A licence is granted for 3 years.It may be renewed after 3 years and again valid for 3 years.

A licence issued by the IRDA may be to act as an agent for a life insurer, for a general

insurer or as a composite insurance agent working for a life insurer as sell as a generalinsurer. No agent is allowed to work for more than one life insurer or more than onegeneral insurer.

The Qualifications necessary before a licence can be given are that the person must(a) Not a minor.(b) Have passed at least the 12th standard or equivalent examination, if he is to be

appointed in a place with a population of 5,000 or more. (10th standardotherwise.)

(c) Have undergone practical training for at least 50 hours in life or generalinsurance business, as the case may be, form an institution, approved and

notified by the IRDA. IN the case of a person wanting to become a compositeinsurance agent, the applicant should have completed at least 75 hourspractical training in life and general insurance business, which may be spreadover six to eight weeks.

(d) Have passed the pre-recruitment examination conducted by the insuranceinstitute of India or any other examination body authorized by the IRDA.

The licence once issued, can be cancelled whenever the person acquires adisqualification. Applications for renewal have to make at least thirty days before theexpiry of the licence, along either the renewal fee of Rs.250. If the application is notmade at least thirty days before the expiry, but is made before the date of expiry oflicence, an additional fee of Rs.100 is payable . If the application is made after the date ofexpiry, it would be normally being refused.

Prior to renewal of the licence, the agent should have completed at least 25 hourspractical training in life or general insurance business or at least 50 hours practicaltraining in life and general insurance business in the case of a composite insurance agent.

Insures who select agents for appointment, make arrangements for training, for appearingin the prescribed examinations, and obtaining the licence.

NOTE

The insurance Act provides, In Section 44, for payment of commission on renewalpremium even after termination of the agency. The commission will be limited to a rate

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not exceeding 4%, to be eligible for this; the agent should have been an agent with thatinsurer for at least

(1) five years and policies for at least Rs50,000 are in force one year beforetermination of agency or,

(2) 10 year.

This commission will be payable to the heirs of the agent after the agents death.

FUNCTION OF AN AGENT

Understanding the prospects needs and persuade him to buy a plan of lifeinsurance that suits his interests best.

Complete the formalities:- paper work, medical examination, which are necessaryto get the policy expeditiously.

Keep in touch to ensure that changing circumstances are reflected in thearrangements relating to premium payments, nomination and other necessaryalterations.

Facilitate quick settlement of claims. Be totally honest with both the prospect and the insurer.

Not to induce prospects to submit wrong information.

Career with Bharti AXA

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Opportunity to earn unlimited income.

Career Growth.

Be your own boss.

High quality training & Support to improve productivity.

Compensation amongst the best. Club member benefits.

Payout structured to facilitate your cash flows better.

Best in class & competitive products.

Pension for life.

Recruitment process

Develop a profile.

Develop sources of recruits.

Approaching the targeted recruits.

Initial\ Screening interviews.

Reality check.

Sources of recruitment

1) Controlled

2) Uncontrolled

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People known through social groups

People known through public service.

People you do business with.

Friends of friends.

CENTRE OF INFLUNCE

People with influence and prestige, other member of society believe and faith onthem.

People who have a big circle of relationships: like secretary in societies, presidentof an association.

People who are known to you and are wiling to help you.

People who have contacts with the class of people you want to deals with.

People who have faith in your leadership.

A centre of influence is a person who is in contact with many people throughsocial, political, religious or business angulations

Usually a respected individual with influence over the people with he/she is incontact.

Uncontrolled Sources

Job Ads/Inserts

This program should be on regular long range basis.

Example: Navajeevan sharma who is a relationship officer in bhrati AXA LifeInsurance company put an ad in the newspaper, in which he called for the readerto phone him during a specified 2 to 4 hours period on Monday or Sundaymorning,

From those who called Navjeevan Sharma was able to eliminate more misfits(who are not qualified) and arrange for two to six personal visits.

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Placement consultantsMOA can recruit a placement consultant or register him self in internet job searchsites to get list of prospects.

Seminars/job fairsManager of agency can also organized seminars atmanagement institutes and colleges.

OR

Bharti AXA life insurance company participate in the job fairs and then short listprospects and then look for further opportunities for them.

Cold Prospecting

MOA can use the telephone directory.

MOA and telecaller can use the directories of various business and socialorganizations.

Database

Primary data: Direct collection of data of from the source of information,technology including personal interviewing, survey etc.

Secondary Data: Indirect collection of data from sources canbe purchased from

the open market and various kind of database are available such as telephonedatabases of various surveys.

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Point to be note while recruiting a agents

Mature and responsible family person.

Ambitious, hungry for recognition, challenges.

Occupation.

Experience and current designation. For how many years he is living in the city.

Greedy person.

Occupation of parent.

Family income.

Any experience in life insurance sector.

Leadership qualities.

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Social and amiable.

During training we use following sources for recruitment and selection

of agent

1) Secondary data such as telephone directory.2) Market survey.3) Natural market.

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Telephone Script

Hello sir,

I am Paramjit Singh from Bharti AXA. I want your few minute to speak.

Sir, Bharti AXA is going to expend the Business by recruiting quality people and offeringthem the potential of a very rewarding career opportunity.

We have acquired your business card and we are aware of the company you work for andyou are one of the selective person with whom our company want to concern.

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So I would like to meet you for coffee to explain the exciting and rewarding opportunity.It may have for you in terms of career compensation and support..

(Excellent I look forward to meeting you please May I have your address and I willconfirm our meeting in writing)

OR

(According to your convenience will you please tell me when and where we can meet?)

Thank You Sir.

Documents Required

Age proof.

Address proof.

Photo 8. Education proof.

Q score sheet.

Agency application.

Form V A.

Fill NAAF.

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After collection of above mentionDocument the next step is

Interview section

During the interview the senior manager/MOA asked following question to the candidateto judge his ability, knowledge, details,

Qualification.

Present occupation.

Knowledge or experience in insurance sector

Tenor of stay in the town.

Number of family member.

Household income.

Occupation of parent.If selected then the senior manager/MOA approve the application,

The managers take the help of scoring Mechanism.Scoring Mechanism was filled at the time of apply.

Age Below 25 years Between 25-40 More than 40 score

Scoringmechanism

0 2 1

Marital status Unmarried married

1 2

Education 10th standard or12th standard

graduate Post graduate

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1 2 2

Tenor of stay incity/town

Less than 3years

3-5 years More than 5years

0 1 2

Household

income

Less than 2

lakhs

2-5 lakhs More than 5

lakhs

Total score

Q Score:Acceptable Range of Score Greater than or equal to 7

Additional Approvals 5 or 6

Rejected application if 4 or less

If the Q score is less than 7 then BSM/ARSM comments and signatures are required.

Next step

50 Hours Training and also provide a text book (IC-33 life insurance) for pre-recruitment Examination for Life Insurance Agents, which is based on syllabusprescribed by insurance Regulatory & Development Authority.

The Insurance RegulatoryAnd Development Authority,IRDA for short, has laid down that those who wish to become insurance agents will

be given licences only after they complete a course of study, training and pass anexamination prescribed by it.

During this training the knowledge about the entire essential concept related to lifeinsurance is provided to agent. Insurers will have different practices and offerdifferent benefits in their plans. All of them will be based on these concepts. Thedetails of the practices and the plans of each insurer will have to be learnt form therespective insures.

During training following things will be teaches.

What is insurance

Principles of life Assurance Premiums and Bonuses

Life Insurance products

Underwriting

Insurance Documents

Policy conditions

Claims

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Linked life insurance products

Insurance agency

Laws and Regulations

IRDA Regulation 2000.

IRDA Regulation 2002.

Examination and Code

Examination is the second last part of the recruitment and selection process.It include one hour test under, which contain 50 objective questions, one marks each,Pass marks are 25.

There are two method of examination.

Online

Manual

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In case of online the result is declared on the spot and in the case of manual result isdeclared with in one month.

After clearing the exam, ULIP training of two days will be given to the advisor about the

product of company and then agency code is generated.

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Research Methodology is the investigation of specific problem in detail. At first problemis defined carefully for conducting research. There should be a good research plan forconducting research. No research can be done without data collection. After all thisanalyze is made for getting solution for problem.

Defining the problem

Defining the sampling plan Collection of data

Analyze and interpretation

Defining the problemDefining the research problem is first necessary step for any research. This work shouldbe done carefully. Here research problem is to know wiliness of general public to work asan agent with private player or Bharti-AXA life insurance.

SAMPLING PLAN

The sampling plan calls for three decisions.

A) Sampling Unit: I have completed my survey in CHANDIGARH, MOHALI.B) Sample Size: The selection of 40 respondents. The sample was drawn fromshopkeepers. The selection of the respondent was done on the basis of simple randomsampling.C) Contract methodsI have conduct the respondent through personal interviews

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Data presentation and Interpretation

1) How many customers walk in daily on an average?

10-15 16-30 31-50 51-60 60-90 90+

61

Name: - Address:-Location:-Mobile no.Shop Type:- (Mobile stores, General store, Chemist, paanwala etc. Please specify


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8, 20%

8, 20%

5, 13%1, 3%

4, 10%

14, 34%less than 15

16-30

31-50

51-60

60-90

90+

20% people said that less than 15 customers walk in daily on an average.20% people said that 16 to 30 customers walk in daily on an average.13% people said that 31 to 50 customers walk in daily on an average.3% people said that 51 to 60 customers walk in daily on an average.10% people said that 61 to 90 customers walk in daily on an average.34% people said that 31 to 50 customers walk in daily on an average.

2) How much Airtel recharges do you sell in the month?

Less than 15 k

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15-30 k

30-60 k

Above 60 k

31, 77%

3, 7%

3, 8%

3, 8%0, 0%

0, 0%

NO

Less than 15 k

15-30k

30-60k60-150

above 150

77.5% of shopkeepers do not sell Airtel recharges.

7.5% of shopkeepers sell Airtel recharges less than 15 k in a month.

7.5% of shopkeepers sell Airtel recharges of 15-30 k in a month.

7.5% of shopkeepers Airtel sell recharges of 30-60 k in a month.

3) Would you like to introduce Bhartis other products to yourregular/ new customers?

Yes

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NO

11, 28%

29, 72%

, 0%, 0%

yes

no

28% of shopkeepers were ready to introduce Bhartis otherproducts to your regular/ new Customers.

72% of shopkeepers were not ready to introduce to introduceBhartis other products to your regular/ new Customers.

4) Do you sell New High Margin products to your regularcustomers?(Profit Margins 5-10%)

Yes

No

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Mr. Sunil Bharti mittal is introducing insurance to Punjab and Chandigarhretailers and would like to give you an opportunity to earn and setup a newincome which can give you 15-20% margin on an average.

In this business you only have to contact your known people or regular customers

and their references to introduce Bhartis product and get an appointment.

Post this, manager form Bharti-AXA will go, explain the product & close he salefor you. You will in turn receive 15-20 % margin on sale. E.g. if a policy is soldby Bharti-AXA manager for 10,000 you will receive 2,000.

We are here to understand your interest in this proposal specially designed by Mr.Sunil Bharti Mittal for Punjab and Chandigarh.

6) Would you be interested in taking up this business opportunity with Bharti?

Yes

No

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No

6, 15%

34, 85%

, 0%, 0%

no

yes

85% of shopkeeper said that they have knowledge about insurance.15% of shopkeeper said that they have no knowledge about insurance.

Experience as an agent

Yes

NO

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6, 15%

34, 85%

, 0%, 0%

yes

no

15% of shopkeepers have experience in the field of life insurance.85% of shopkeepers have no experience in the field of life insurance

If yes, then please specify the name of the company.

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4, 66%

1, 17%

1, 17%, 0%

LIC

HDFC

ICICI

Out of 6 people 66% (4) of shopkeeper working with LIC,

17% (1) of shopkeeper working with HDFC Standard Life insurance and 17% (1) of

shopkeeper working with ICICI Prudential Life Insurance Company Ltd.

9) Can you spare 1/2 day on training to understand to product and howcan introduce it to your customer?

Yes

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NO

4, 10%

36, 90%

, 0%, 0%

Yes

no

10 % of shopkeepers were interesting to spare 1/2 day on training to understand toproduct.

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Name: - Address:-Location:-Mobile no.

Shop Type:- (Mobile stores, General store, Chemist, paanwala etc. Please specify

QUESTIONNAIRE

1) How many customers walk in daily on an average?

10-15 16-30 31-50 51-60 60-90 90+

2) How much Airtel recharges do you sell in the month?

Not selling

Less than 15 thousands

15-30 thousands

30-60 thousands

Above 60 thousands

3) Would you like to introduce Bhartis other products to your regular/ newcustomers?

Yes

NO

4) Do you sell New High Margin products to your regularcustomers?

Yes

No

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5) How much time do you take to explain a new product to acustomer?

10 minute or less

10-30 minute

30 minute-1hr

More than 1 hr

Script

Bharti has expanded into new territories of business and they

now offer the best in class insurance products. This newventure is named Bharti- AXA.

Mr. Sunil Bharti mittal is introducing insurance to Punjab and Chandigarhretailers and would like to give you an opportunity to earn and setup a newincome which can give you 15-20% margin on an average.

In this business you only have to contact your known people or regular customersand their references to introduce Bhartis product and get an appointment.

Post this, manager form Bharti-AXA will go, explain the product & close he salefor you. You will in turn receive 15-20 % margin on sale. E.g. if a policy is soldby Bharti-AXA manager for 10,000 you will receive 2,000.

WE are here to understand your interest in this proposal specially designed by Mr.Sunil Bharti Mittal for Punjab and Chandigarh.

6) Would you be interested in taking up this business opportunity with Bharti?

Yes

No

7) How much time can you dedicate per day for this activity? (For gettingAppointments)

hr

1-2 hrs

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3-h hrs

5 hrs or more

8) Do you have any knowledge of or experience in Insurance?

Knowledge

Yes

No

Experience

Yes

NO

If yes, then please specify the name of the company.

9) Can you spare day on training to understand the product and how can introduceit to your customer?

Yes

NO

10) How many people do you know in this city?

Under 50

51-100

101-300

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301-600

Above 600

Limitation

1) I didnt get complete feed from the shopkeepers about the question as they arebusy in there work and had less time to fill questioned.

2) Sincerity of answering the questions cannot be judged.

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In these days LIC created a very well image in the mind of General public because it issemi Government Company and also an oldest company. In short most people of Indianbelieve upon the LIC only.

During the training period we fled that most of people who are already working ininsurance sector think that it is easy to sell the product of LIC than to sell the product ofother life insurance company.

Most of people say that this job affects upon there social relation with other and alsoeffect upon there business.

Most of people believe that private insurance companies carried out fraud activity thatswhy they never believe upon the private players.

People think that it is a time consuming activity and also required huge market skills.

Some people said that only greedy people like to work in insurance sector.

Because of three days compulsory training.

Conclusion

In India, there is throat cut competition in the market of life insurance that brand servicewhich adopt new strategies for sales. I concluding the whole story it can be said thatpeople are much more aware about the aspects of life insurance and also have knowledgeabout the role and act of agent but mostly people unwilling to work as life insurance

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An insurance company must work with honesty to win the confident of its agent andgeneral public.

Duration of training must be reducing as in these day people have no extra time.

Fees charged by companies from candidate for IRDA exam and training should reduce.

Many other extra facilities must be provide to agent to attract them such local and foreigntrips, special price on achieving a target, open bank account at free of cost,

Bharti-AXA Life Insurance Company must organize more and more seminars and alsoparticipate in the job trade fairs to find out more candidates.

Increase the commission of agents.

Company must relic to candidate or other people that they are doing a social service for

the welfare of society.

Better career opportunity must be provided to an adviser, such as on role job, promotionetc.

A special function must organize time to time in which the special prizes distributeamong those agent who perform well.

The duration of the process of recruitment and selection is too long (one and half month),during this process mostly candidate loss there interest, so there is an urgent need toreduce the duration of this period.

Reduce the minimum premium amount it will help company to attract the agent of othercompany, as it increases the scope of market of its agent.

BIBLIOGRAPHY

S. Balachandran, (2009), IC-33 Life Insurance, Shri S.J Gidwani Publishers, Mumbai

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the end u can say if u would achieve the targets that given by thecompany than u will get the promotion n some other companies

benefits

The opportunity

About 2/3 of the Indian population is insurableHigh % of population is uninsured or underinsurance.

We Indian are natural saversIndians save the maximum in the world.

Those insured are underinsured.

YUGAL Project

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Transcript of YUGAL Project