bharti axa life insurance-dinesh

Sales Promotion, Recruitment, Training & Development of Life

Advisors

Submitted in Partial Fulfillment of the Requirements for the Award of Degree

OfMASTER OF BUSINESS ADMINISTRATION

By

DINESH PRATAP UPADHYAYRoll No. : 0814170012

June-August 2009

Under Guidance of : Under the Supervision of :ASHISH KUMAR SRIVASTAVA MISS SANDHYA KHAREAgency ManagerBharti Axa Life insurance Co.Gomti Nagar, Lucknow

SAGAR INSITTUTE OF TECHNOLOGY AND MANAGEMENT Barabanki

http://upload.wikimedia.org/wikipedia/en/5/5a/Sitm_logo.gif

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

DECLARATION

I the undersigned, hereby declare that this project entitled “SALES PROMOTION

RECRUITMENT, TRAINING AND DEVELOPMENT of Life advisors at

Bharti AXA Life Insurance, LUCKNOW” is written and submitted by me to

SAGAR INSTITUTE OF TECHNOLOGY AND MANAGEMENT, BARABANKI

in partial fulfillment of the requirements for the award of MASTER OF BUSINESS

ADMINISTRATION under the guidance of my company guide Mr. Ashish Kumar

Srivastava. This report neither full nor in part has ever been submitted for award of

any other course of either this Institute or any other Institute.

DINESH PRATAP UPADHYAY

MBA

2008-2010


ACKNOWLEDGEMENT

I sincerely thank Bharti Axa Life Insurance for providing me with an

opportunity to pursue my internship at their organization. I extend my thanks to

my guide Mr. Ashish Kumar Srivastava- Manager of Agency at Bharti Axa Life

Insurance and other members of the Division, Bharti Axa Life Insurance,

Lucknow for providing me the necessary guidance.

That project was a great experience for me. As is made aware of professional

culture that exists in an organization, about the market, qualities required work

and how to deal with the customers. I am extremely thankful to our respected

faculty Guide MISS SANDHYA KHARE“SITM Barabanki” for giving me there

wholehearted support, guidance and encouragement to me at every step of this

project. There valuable suggestions and advices have been a constant source of

inspiration to me in completing this project.

Finally, I express my thanks to the Respondents who took part in the survey.

Place : Lucknow

Date : 25.08.09

DINESH PRATAP UPADHYAY


TABLE OF CONTENTS

S. No. Contents1.0 Executive Summary2.0 Introduction to the Project2.1 Purpose of the Project2.2 Significance And Importance of the Project2.3 Objective of Project2.4 Scope of project2.5 Theory on Recruitment and Training2.6 Training and Development2.7 Types of Training and Development2.8 Limitations of the Project2.9 Brief history of the Insurance sector in India3.0 Profile of Organization3.1 Joint Venture Bharti and AXA3.1.1 Bharti AXA Life Insurance3.2 Products of Bharti AXA Life Insurance3.2.1 Products for Individuals3.2.2 Products for Groups4.0 Research Design and Methodology4.1 Research Design4.2 Sample Design4.3 Recruitment Process4.4 Survey Questionnaire5.0 Data Presentation, Analysis and Interpretation6.0 Findings and Suggestions6.1 Findings6.2 Suggestions7.0 Solutions8.0 Results9.0 Conclusion10.0 Bibliography11.0 Annexure11.1 Annexure 111.2 Annexure 2


EXECUTIVE SUMMARY

The project is about recruitment, training and development of Life advisors. The

project was undertaken by 6 member team and the entire task was divided into

sub- tasks. The process started from identifying the need, then advertising the

same to prospective individuals by distribution of pamphlets, holding various

activities in residential areas etc. then individuals were surveyed. The

questionnaire was designed in such a manner that it gave a general idea about

the ability and capability of respondent as a prospective life insurance advisor.

Certain scores were allotted depending on the answers given by the respondent.

Those who were high on the scores were motivated to visit the office for

conduction of their interview. After the successful completion of interview

individuals were informed if they were selected for training of Life advisors.

They were asked to fill the NAAF form and a fee was collected from them along

with their photographs. After successful completion of training an exam was

conducted and those who qualified the exam were selected as life advisors.

The project report submitted here covers theory on recruitment, training and

development, flowchart of activities undertaken for recruitment, training and

development, data analysis of the survey and a list of suggestions and

recommendations for the company at the end of the entire study.

During the process of summer project we conducted activities in Residential

colonies like “Lucknow, Gonda, Balrampur etc.. The samples of the pamphlets

that were designed and were distributed for such activities have been given in the

annexure.


INTRODUCTION TO THE PROJECT

PURPOSE OF THE PROJECT

The purpose of the company project study was to:

Get hands on experience of recruitment in Insurance sector.

Understand the external recruitment process of Life advisors.

Applying theoretical knowledge to the recruitment practices at Bharti AXA.


SIGNIFICANCE AND IMPORTANCE OF THE PROJECT

In the last few years, the market has undergone some fundamental changes in terms of

technologies, sources of recruitment, competition in the market etc. In an already

saturated market, where the practices like poaching and raiding are gaining

momentum, Sales professionals are constantly facing new challenges in one of their

most important function- Selling. They have to face and conquer various challenges to

find the best candidates for their organizations which can meet there targets.

The project focuses on the challenges facing the Sales department in the growing

insurance industry in India. Problems caused by the lack of skilled personnel and the

increasing demand for skilled employees are also discussed in the project.

In addition, challenges regarding the recruitment, training and development of

employees are examined. The project throws light on various measures taken by Sales

department in insurance organizations to improve the environment and the

productivity of employees.


OBJECTIVES OF THE PROJECTThe objectives were-

R- Recruitment

T- Training

D- Development

C- Coding and Licensing

I- Increase in Sales

To analysis insurance as an investment Plan.

To Analysis the pricing of different unit linked investment plans and

handling lindges with other P's of marketing.

To study the consumer perception preference and behaviour product of

Bharti AXA Life Insurance.

Team objective: To recruit more than 5 Life advisors during two months in

Lucknow region.

Individual objective: To interview prospective candidates to be recruited as LA,

assist Managers of Agency in selecting the candidates, make arrangements for

BOP’s and to assist in their training, coding and licensing thereby increasing the

sales of the company.


SCOPE OF THE PROJECT

The project involved recruiting life advisors for Bharti AXA Life insurance in

Lucknowregion. The task was taken up by a 6 member team and the entire

process of recruitment was divided into sub- tasks. To further it, the project also

involved arranging for preliminary training of Life advisors.

The process of recruiting and training Life advisors can be broken into the

following steps:

Identifying individuals who are willing to solicit insurance business as a

life advisor of the company.

Assisting in scheduling the training and examination of the life advisors.

Assisting and coordinating with Agency Development Manager of the

company for licensing and coding of Life Advisors.


THEORY ON SALES PROMOTION

By their very nature, Bharti AXA Life Insurance require higher advertisement

and sales promotion expenses than any consumer product offering measurable

performance. Different kinds of advertising and sales promotion exercises are

required to serve the needs of different classes of investors. For instance, an

aggressive ‘push’ marketing strategy is required for retail markets, where

investors are not adequately aware of the product and do not have specialized

skill in financial market, in contrast with ‘pull’ marketing strategies for the

wholesale market.

There are certain issues with reference to advertisement, publicity literature and

offer documents, which deserve attention. Most of the Life Insurance

advertisements look similar, focusing on scheme features, returns and incentives.

An investor exposed to the increasing number of Life Insurance products finds

that all the available brands are rather identical, and cannot appreciate any

distinction.

The present form of application, brochures and other literature is generally

lengthy, cumbersome and at times complicated leading to higher emphasis on

advertisement. One of the limiting factors is the regulatory framework governing

advertisements of Life Insurance products. For instance, in the offer documents,

Bharti AXA Life Insuranceare required to mention the fund objectives in clear

terms. Immediately thereafter, the first risk factor that has to be mentioned is

that there is no certainty whether the objectives of the fund will be achieved or

not. Some more relaxation in these may facilitate bringing more novelty in

advertisements, within a broad framework, without luring investors through

false promises, and will certainly improve the situation.

Another hurdle is the statutory disclaimer required to be carried along with

every advertisement. Bharti AXA Life Insurancehave to provide risk factors.

Under the present Life Insurance regulations, a prior approval by SEBI is a

must before a Life Insurance can launch its fund. In the regulation itself, a

period of one month has been provided. But in a month’s time, perhaps the

situation may so change, that the timing of launch gets affected. The requirement


for getting approval, which normally takes about 2 months’ time, defeats the

purpose for which the fund was designed also.

QUALITY OF SERVICE

This industry primarily sells quality of services, given that the performance

cannot be promised. It is with this attribute along with procedural simplicity,

that the fund gradually builds its brand and its class of loyal investors. The

qualities of services are broadly categorized as:

Timely services after the sale of the units; and

Continuous reporting of investment performance.

Life Insurance managers must give due attention and evaluate their

performance on each front. They may also consider an option of conducting a

service audit for controlling and improving the quality of service.


MARKET RESEARCH

Investment in Life Insurance is not a one-time activity. It is a continuous activity.

The same investor, if satisfied, will come to the fund again and again. When the

investor sends his application, it is not only an application, but it also contains

vital information. Most of this information if tabulated and analyzed, would

provide important insights into investor needs, preferences and behavior and

enables us to target customers need more accurately, to achieve better

penetration, deeper loyalty and reduced costs. It is in this context that direct

marketing will assume increased importance. Knowing the customer thoroughly

is of utmost importance. Unlike the consumer goods industry, it is not possible

for Life Insurance industry to test market and have pilot projects before launch.

At the same time, focusing and concentrating on a particular geographic area

where the fund has a strong presence and proven marketing network, can help

reduce network, can help reduce issue expenses and ultimately translate into

higher returns for the investor. Very little research on investor preference is

available, but the industry can collectively have a data bank, and share the

information for appropriate use.

Market Segmentation Different segments of the market have different risk-

return criteria, on the basis of which they take investment decisions. Not only

that, in a particular segment also there could be different sub-segments asking

for yet different risk-return attributes, and differential preference for various

investments attributes of financial product. Different investment attributes an

investor expects in a financial product are:

Liquidity,

Capital appreciation,

Safety of principal,

Tax treatment,

Dividend or interest income,

Regulatory restrictions,


Time period for investment, etc.

On the basis of these attributes the Life Insurance market may be broadly

segmented into five main segments as under.

1) Retail Segment

This segment characterizes large number of participants but low individual

volumes. It consists of individuals, Hindu Undivided Families, and firms. It may

be further sub-divided into:

i. Salaried class people;

ii. Retired people;

iii. Businessmen and firms having occasional surpluses;

iv. HUF’s for long term investment purpose.

These may be further classified on the basis of their income levels. It has been

observed that prospects in different classes of income levels have different

patterns of preferences of investment. Similarly, the investment preferences for

urban and rural prospects would differ and therefore the strategies for tapping

this segment would differ on the basis of differential life style, value and ethics,

social environment, media habits, and nature of work. Broadly, this class

requires security of the principal, liquidity, and regular income more than

capital appreciation. It lacks specialised investment skills in financial markets

and highly susceptible to mob behaviour. The marketing strategy involving

indirect selling through agency network and creating awareness through

appropriate media would be more effective in this segment.

2) Institutional Segment

This segment characterizes less number of participants, and large individual

volumes. It consists of banks, public sector units, financial institutions, foreign

institutional investors, insurance corporations, provident and pension funds.

This class normally looks for more specialized professional investment skills of


the fund managers and expects a structured product than a ready-made product.

The tax features and regulatory restrictions are the vital considerations in their

investment decisions. Each class of participants, such as banks, provides a niche

to the fund managers in this segment. It requires more of a personalized and

direct marketing to sustain and increase volumes.

3) Trusts

This is a highly regulated, high volumes segment. It consists of various types of

trusts, namely, charitable trusts, religious trust, educational trust, family trust,

social trust, etc. each with different objectives. Its basic investment need would

be safety of the principal, regular income and hedge against inflation rather than

liquidity and capital appreciation. This class offers vast potential to the fund

managers, if the regulators relax guidelines and allow the trusts to invest freely

in Life Insurances.

4) Non-Resident Indians

This segment consists of very risk sensitive participants, at times referred as ‘fair

weather friends.’ They need the highest cover against political and exchange

risk. They normally prefer easy exit with repatriation of income and principal.

They also hold a strategic importance as they bring in crucial foreign exchange –

a crucial input for developing country like ours. Marketing to this segment

requires special kind of products for groups of foreign countries depending upon

the provisions of tax treaties. The range of suitable products are required to

design to divert the funds flowing into bank accounts.

5) Corporates

Generally, the investment need of this segment is to park their occasional surplus

funds that earn return more than what they have to pay on account of holding

them. Alternatively, they also get surplus fund due to the seasonality of the

business, which typically become due for the payment within a year or quarter

or even a month. They need short term parking place for their fund,. This

segment offers a vast potential to specialized money market managers. Given the

relaxation in the regulatory guidelines, fund managers are expected design

products to this segment.


Thus, each segment and sub-segment have their own risk return preferences

forming niches in the market. Bharti AXA Life Insurancemanagers have to

analyze in detail the intrinsic needs of the prospects and design a variety of

suitable products for them. Not only is that, the products also required to be

marketed through appropriately different marketing strategies.

AD’S THE WAY

Increasing sales have given Life Insurance promoters the budget to spend more

on advertising, which has further boosted sales

The Atheists are turning believers. Life Insurances, private sector ones in

particular, who had written off advertising as the “ultimate waste of money”

have nearly tripled their press media spend from Rs.12.20 crore in the period

January to April 1998 to Rs. 31.6 crore in January to April 1999, according to

data supplied by Prudential ICICI AMC (PIAMC) and sourced from ORG-

MARG.

What’s interesting is that in this period the share of the private sector Bharti

AXA Life Insurancein the category’s total media spending has surged from 20

percent to 52 percent. This can be attributed to private sector funds (given the

data available with the Association of Bharti AXA Life Insuranceof India) seeing

an increase share of net inflows relative to the bank-sponsored counterparts in

the public sector.

For proof, take a look at some figures. PIAMC – which spent Rs. 4.5 crore on

advertising in the entire fiscal year 2000 has spent the same amount during the

first four months of the current fiscal itself. Kothari Pioneer Life Insurance

which spent a negligible amount on advertising in 1999-2000 and Rs.163 lakhs in

2001 has already spent Rs. 453 lakhs in the first three quarter.

Birla Life Insurance, which spent Rs. 1 crore on advertising in the year 1999-

2000 plans to double that amount.

Clearly advertising types have something to cheer about. But what’s caused this

sudden attitudinal shift towards advertising? According to experts, funds are

being pushed into advertising more by intermediaries like banks who are

reluctant to sell a product whose name is unfamiliar to investor. Besides, since


more open-ended schemes are now available, some form of ongoing support to

keep sales booming has been deemed necessary by the funds.

In the words of Mr. Rajiv Vij, vice president marketing, Templeton Asset

Management (India) Pvt. Ltd., “ The industry has discovered that advertising in

the changed climate today, when investors are most receptive to Life Insurances,

can perk up sales by anywhere between 20-40 percent.” PIAMC managing

director Ajay Srinivasan gives his rationale for stepping up marketing spends:

“we believe that the brand is an important part of the consumer’s decision to

invest in a category that is not yet clearly understood by people.” According to

the Life Insurance marketers, advertising helps bring recall when consumers are

looking at investment opportunities. Srinivasan says that tactical advertising has

raised PIAMC’s brand awareness from five percent in June 1993 to 34 percent

now, as per a recent IMRB survey.

Advertising backed by an integrated marketing and communication campaign

designed to attract investors with long term prospective has helped the fund post

a redemption-to-sales ratio of just about five percent as compared to 20-30

percent for the industry on an average.

But what mode of advertising do these funds choose? “To sell the category,”

avers VIJ, “mass media is more effective because one needs to target a large

segment of the population.” Life Insurance marketers feel that since the category

is ‘information – centric’, press is the best medium to get across one’s message.

Within the print media, most marketers feel that a combination of leading

mainline and financial newspapers complemented by finance/ business

magazines, with relevant thematic appeal and editorial content are the perfect

mix.

Direct mail is another medium, which some funds have successfully used. But

rather than sending out mailers to all and sundry, there is a need for appropriate

targeting.

Educational seminars are the final leg in the marketing and communication

process. In these, investors conditioned by advertising and hooked by an

interesting mailer can have lingering doubts clarified.

Attractive point of purchase (POP) material can also help.


Another very successful media niche, which has been exploited to the hilt by

funds, is intermediary magazines and newsletters. Besides the low costs of

advertising in these newsletters, these publications circulate to those who are

looking for investment opportunities and thus represent an extremely lucrative

target segment.

Advertising content by most of the funds too has undergone a marked change

from concept-selling ads dispelling myths, to selling specific schemes that meet

defined objectives/ goals.

But why is advertising suddenly working for Bharti AXA Life Insurancewhen it

doesn’t seem to have made a difference earlier? A sustained marketing strategy

instead of a few, scrappy ads is now seen to be the key to investor demand.

According to Birla Sun Life AMC chief market development officer

N.K.Sharma, advertising serves as a reminder complementing a sales push by

the distributor. “Since the distributor wasn’t ready in earlier years, advertising

then, didn’t work, “he says. Brand building, is a long-term exercise. Just like

Bharti AXA Life Insuranceadvocate that investors take a long-term approach to

investing, similarly funds need to take a long-term approach to brand building.

Fund marketers and industry observers however, caution against the danger of

selling the product for the wrong reasons. Funds need to focus on sustainable

communication. They need to build brands that strike a chord with investors by

relating to their concerns rather than selling flavour-of-the-month style. The

winning formula as industry watchers put it is the troika of performance, service

and trust for meeting long term needs or goals.


Changes that have taken place since the advent of the Net

Lower Costs: Distribution of funds will fall in the online trading regime

by 2003. Bharti AXA Life Insurancecould bring down their

administrative costs to 0.75% if trading is done online. As per SEBI

regulations, bond funds can charge a maximum of 2.25% and equity

funds can charge 2.5% as administrative fees. Therefore if the

administrative costs are low, the benefits are passed down and hence

Bharti AXA Life Insuranceare able to attract mire investors and increase

their asset base.

Better advice: Bharti AXA Life Insurancecould provide better advice to

their investors through the Net rather than through the traditional

investment routes where there is an additional channel to deal with the

Brokers. Direct dealing with the fund could help the investor with their

financial planning.

In India, brokers could get more Net savvy than investors and could help

the investors with the knowledge through get from the Net.

New investors would prefer online: Bharti AXA Life Insurancecan target

investors who are young individuals and who are Net savvy, since

servicing them would be easier on the Net.

India has around 1.6 million net users who are prime target for these

funds and this could just be the beginning. The Internet users are going to

increase dramatically and Bharti AXA Life Insuranceare going to be the

best beneficiary. With smaller administrative costs more funds would be

mobilized .A fund manager must be ready to tackle the volatility and will

have to maintain sufficient amount of investments which are high

liquidity and low yielding investments to honor redemption.

Net based advertisements: There will be more sites involved in ads and

promotion of Life Insurances. In the U.S. sites like AOL offer detailed

research and financial details about the functioning of different funds and


their performance statistics. a is witnessing a genesis in this area . There

are many sites such as indiainfoline.com and indiafn.com that are doing

something similar and providing advice to investors regarding their

investments.

Reasons for bad performance of Bharti AXA Life Insurance

Most investors associate Bharti AXA Life Insurancewith Master gain, Monthly

Equity Plans of SBI Life Insurance, UTI and Canbank Life Insurance and of

course Morgan Stanley Growth Fund. This is so because these funds truly had

participation from masses, with a fund like Morgan Stanley having more than 1

million investors. Investors feel that after 5 years, Morgan Stanley Growth Fund

units still trade below the original IPO price of Rs 10.

It is incorrect to think that all Bharti AXA Life Insurancehave performed

poorly. If one looks at some income funds, they have come with reasonable

returns. It is only the performance of equity funds, which has been poor. Their

poor performance has been amplified by the closed end discounts i.e. units of

these funds quoting at sharp discounts to their NAV resulting in an even poorer

return to the investor.

One must remember that a Life Insurance does not provide assured returns and

neither can it "manufacture" returns out of thin air. Returns provided by Bharti

AXA Life Insuranceare a function of the returns in the underlying asset class in

which the fund invests. Good funds can beat returns in their asset class to some

extent but that’s all. E.g. take the case of a sector specific fund like a pharma

fund which invests only in shares of pharmaceutical companies. If the Govt.

comes with new regulation that severely restricts the pricing freedom of these

companies resulting in negative outlook for the sector, the prices of all stocks in

the sector could fall substantially resulting in severe erosion in the NAV of the

fund. No one can do anything about it. A good fund manager would probably sell

part of the fund before prices fall too much and wait for an opportune time to

reinvest at lower levels once the dust has settled. In that case, the NAV of the


fund would fall to a lesser extent – but fall it will. If the investor in the fund has

invested in some stocks in the sector on his own, in all probability, his personal

investments may have depreciated to a larger extent.

Most Life Insurance managers took some time to realize the changed

circumstances wherein the open economy ushered in by the liberalization took

the full impact of the global deflation in commodity prices. This problem was

compounded further by the Asian crisis after which cheap imports from Asia

caused severe pressure on profits.

One more issue is that the fund managers in many funds were not

"professionally qualified and experienced". This is especially true of some of the

funds floated by nationalized banks. Some of these individuals were transferred

from the parent organization and did not really know much about investment

management.

Lastly, investors would do well to have a look at the investments, which they

made on their own. In most cases, they would have done much worse than the

Life Insurances. We have received numerous requests for advice from individual

investors on what to do about their own investments. If that were any indicator,

investors would have done really badly.


Market Share of Bharti AXA Life Insurancein India

S.No. Asset Management Company AUM

(Rs. In Crore)

Market Share

( in %)

1. ABN Amro 1572.1 0.94

2 Alliance Capital 1341.91 0.80

3. Benchmark 495.85 0.30

4. Birla Sun Life 10722.37 6.38

5. BoB 124.85 0.07

6. CanBank 1895.46 1.13

7. Cholamandalam 910.79 0.54

8. Deutsche 2317.65 1.38

9. DSP ML 7074.2 4.21

10. Escorts 122.62 0.07

11. Fidelity 1495.4 0.89

12. Franklin Templeton 17079.3 10.17

13. Global Insurance Co. 122.09 0.07

14. HDFC 15709.86 9.35

15. HSBC 7569.61 4.51

16. ING Vysya 1925.17 1.15

17. JM Financial 3975.26 2.37

18. Kotak Mahindra 7296.86 4.34

19. LIC 2872.26 1.71


20. Morgan Stanely 1640.47 0.98

21. Principal 611.5 3.64

22. Pru ICICI 17196.43 10.24

23. Reliance 10129.89 6.03

24. Sahara 300 0.18

25. SBI 7182.29 4.28

26. Standard Chartered 8143 4.85

27. Sundram 1871.42 1.11

28. TATA 8164.23 4.86

29. Taurus 176.27 0.10

30. UTI MF 22443.74 13.36

Total AUM 167986.85 100.00


THEORY ON RECRUITMENT & TRAINING

The Recruitment Process: Recruitment refers to the process of sourcing, screening,

and selecting people for a job or vacancy within an organization. Though individuals

can undertake individual components of the recruitment process, mid- and large-size

organizations generally retain professional recruiters. These are the main stages in

recruitment.

A) Sourcing: Sourcing involves

1) Advertising- It is a common part of the recruiting process, often

encompassing multiple media, such as the Internet, general newspapers, job ad

newspapers, professional publications, window advertisements, job centers, and

campus graduate recruitment programs; and

2) Recruiting Research- which is the proactive identification of relevant talent

who may not respond to job postings and other recruitment advertising methods done

in #1. This initial research for so-called passive prospects, also called name-

generation, results in a list of prospects who can then be contacted to solicit interest,

obtain a resume/CV, and be screened (see below).

B) Screening & Selection:

Suitability for a job is typically assessed by looking for skills, e.g. communication,

typing, and computer skills. Qualifications may be shown through résumés, job

applications, interviews, educational or professional experience, the testimony of

references, or in-house testing, such as for software knowledge, typing skills,

numeracy, and literacy, through psychological tests or employment testing.

In some countries, employers are legally mandated to provide equal opportunity in

hiring.

C) On boarding:

http://en.wikipedia.org/wiki/Equal_opportunity


A well-planned introduction helps new employees become fully operational

quickly and is often integrated with the recruitment process.


SOURCES OF RECRUITMENT


Training and Development

In organizational development, the related field of training and development (T & D)

deals with the design and delivery of learning to improve performance, skills, or

knowledge within organizations.

In some organizations the term Learning and Development is used instead of Training

and Development in order to emphasize the importance of learning for the individual

and the organization. In other organizations, the term Human Resource Development

is used.

Types of T & D

1. Coaching

2. Continuing Professional Development or CPD

3. E-learning aka Online Learning, Distance Learning, Web-Based

Learning

4. Executive education

5. Executive development

6. Leadership development

7. Instructional Animation

8. Instructional Design

9. Instructional Strategies

10. Knowledge Management

11. Organizational Learning

12. Organizational knowledge

13. Mentoring

14. Teaching Method

15. Blended learning

16. Outbound Management Development Programmes

17. Performance Management

The various forms of Training and development are explained below.


1. Coaching is a method of directing, instructing and training a person or

group of people, with the aim to achieve some goal or develop specific

skills. There are many ways to coach, types of coaching and methods to

coaching. Direction may include motivational speaking. Training may

include seminars, workshops, and supervised practice.

2. Continuing Professional Development (CPD) or Continuing Professional

Education (CPE) is the means by which members of professional

associations maintain, improve and broaden their knowledge and skills

and develop the personal qualities required in their professional lives.

CPD is defined as the holistic commitment to structured skills enhancement

and personal or professional competence.

3. Electronic learning (or e-Learning or eLearning) is a type of education

where the medium of instruction is computer technology. No in-person

interaction may take place in some instances. E-learning is used

interchangeably in a wide variety of contexts. In companies, it refers to

the strategies that use the company network to deliver training courses to

employees. In the USA, it is defined as a planned teaching/learning

experience that uses a wide spectrum of technologies, mainly Internet or

computer-based, to reach learners at a distance. Lately in most

Universities, e-learning is used to define a specific mode to attend a course

or programmes of study where the students rarely, if ever, attend face-to-

face for on-campus access to educational facilities, because they study

online.

4. Executive Education is the term used for programs at graduate-level

business schools that aim to give classes for Chief Executives and other

top managers or entrepreneurs. These programs do not usually end in a

http://en.wikipedia.org/wiki/Motivational_speaker


degree, although there is an ever-growing number of an Executive MBA

program that are very similar and offer a Masters of Business

Administration upon completion of the coursework.

5. Executive development is the whole of activities aimed at developing the

skills and competencies of those that (will) have executive positions in

organizations. While "executive" and "manager" and "leader" is often

used interchangeably, "executive" is commonly used to signify the top 5%

to 10% of the organization. Similarly, "development" and "training" and

"education" are often used as synonyms, however "development" is

generally seen as the most encompassing of the three in terms of activities

that build skills and competencies.

6. Leadership development: Leadership development refers to any activity

that enhances the quality of leadership within an individual or

organization. These activities have ranged from MBA style programs

offered at university business schools to high-ropes courses and executive

retreats.

7. Instructional Animations are animations that are used either to provide

instructions for immediate performance of a task or to support more

permanent learning of subject matter. While both of these uses can be

described as instructional animations, when the goal is to support

learning, the term educational animation may be preferred.

8. Instructional Design is the practice of arranging media (communication

technology) and content to help learners and teachers transfer knowledge

most effectively. The process consists broadly of determining the current


state of learner understanding, defining the end goal of instruction, and

creating some media-based "intervention" to assist in the transition.

Ideally the process is informed by pedagogically tested theories of

learning and may take place in student-only, teacher-led or community-

based settings. The outcome of this instruction may be directly observable

and scientifically measured or completely hidden and assumed.

9. Knowledge Management ('KM') comprises a range of practices used by

organizations to identify, create, represent, distribute and enable

adoption of what it knows, and how it knows it. It has been an established

discipline since 1995 with a body of university courses and both

professional and academic journals dedicated to it. Many large companies

have resources dedicated to Knowledge Management, often as a part of

'Information Technology', 'Human Resource Management' or Business

strategy departments. Knowledge Management is a multi-billion dollar

world-wide market.

10. Organizational learning is an area of knowledge within organizational

theory that studies models and theories about the way an organization

learns and adapts. In Organizational development (OD), learning is a

characteristic of an adaptive organization, i.e., an organization that is able

to sense changes in signals from its environment (both internal and

external) and adapt accordingly. OD specialists endeavor to assist their

clients to learn from experience and incorporate the learning as feedback

into the planning process.

11. Organizational knowledge: What is the nature of knowledge created,

traded and used in organizations? Some of this knowledge can be termed

technical – knowing the meaning of technical words and phrases, being


able to read and make sense of economic data and being able to act on the

basis of law-like generalizations. Scientific knowledge is ‘propositional’; it

takes the form of causal generalizations – whenever A, then B. For

example, whenever water reaches the temperature of 100 degrees, it boils;

whenever it boils, it turns into steam; steam generates pressure when in

an enclosed space; pressure drives engines. And so forth.

12. Mentorship refers to a developmental relationship between a more

experienced mentor and a less experienced partner referred to as a

protégé, mentoree, or (person) being mentored—a person guided and

protected by a more prominent person.

13. Teaching methods are best articulated by answering the questions, "What

is the purpose of education?" and "What are the best ways of achieving

these purposes?". For much of prehistory, educational methods were

largely informal, and consisted of children imitating or modeling their

behavior on that of their elders, learning through observation and play.

In this sense the children are the students, and the elder is the teacher. A

teacher creates the course materials to be taught and then enforces it.

14. Blended Learning is the combination of multiple approaches to learning.

Blended learning can be accomplished through the use of 'blended'

virtual and physical resources. A typical example of this would be a

combination of technology-based materials and face-to-face sessions used

together

to deliver instruction. In the strictest sense, blended learning is when an

instructor combines two methods of delivery of instruction. However, this


term most often applies to the use of technology on instruction. A good

example of blended learning would be to give a well-structured introductory

lesson in the classroom, and then to provide follow-up materials online.

15. Outbound Management Development Programmes are a training method

for enhancing organizational performance through experiential learning.

These programmes generally revolve around activities designed to

improve leadership, communication skills, planning, change management,

delegation, teamwork, and motivation. Participants are divided into

teams and assigned tasks or activities for completion in a specified time.

Achievement and performance during these activities is reviewed in

group discussions to identify behaviors that enhance performance or lead

to failure or decreased performance.

16. Performance measurement is the process of assessing progress toward

achieving predetermined goals. Performance management is building on

that process, adding the relevant communication and action on the

progress achieved against these predetermined goals.

In network performance management

(a) A set of functions that evaluate and report the behavior of

telecommunications equipment and the effectiveness of the network or

network element and

(b) a set of various sub-functions, such as gathering statistical information,

maintaining and examining historical logs, determining system performance

under natural and artificial conditions, and altering system modes of

operation.

In organizational development (OD), performance can be thought of as

Actual Results vs Desired Results. Any discrepancy, where Actual is less


than Desired, could constitute the performance improvement zone.

Performance management and improvement can be thought of as a cycle:

1. Performance planning: where goals and objectives are established

2. Performance coaching: where a manager intervenes to give feedback and

adjust performance

3. Performance appraisal: where individual performance is formally

documented and feedback delivered.


LIMITATIONS OF THE PROJECT

Following are some reasons that demotivate and demoralize people from

becoming Life advisors. I came across the following obstacles that arose in the

process of recruitment:

Lack of awareness among the people – This is the biggest limitation found

in this sector. Most of the people are not aware about the importance and the

necessity of the insurance in their life. They are not aware how useful life

insurance can be for their family members if something happens to them.

Perception of the people towards Insurance sector – People still consider

insurance just as a Tax saving device. So today also there is always a rush to buy

an Insurance Policy only at the end of the financial year like January, February

and March making the other 9 months dry for this business.

Insurance does not give good returns – Still today people think that

Insurance does not give good returns. They are not aware of the modern Unit

Linked Insurance Plans which are offered by most of the Private sector players.

They are still under the perception that if they take Insurance they will get only

5-6% returns which is not true nowadays.

Lack of awareness about the earning opportunity in the Insurance

sector – People still today are not aware about the earning opportunity that the

Insurance sector gives. After the privatization of the insurance sector many

private giants have entered the insurance sector. These private companies in

order to beat the competition and to increase their Insurance Advisors to

increase their reach to the customers are giving very high commission rates but

people are not aware of that.

Increased competition – Today the competition in the Insurance sector has

became very stiff. Currently there are 14 Life Insurance companies working in

India including the LIC (life insurance Corporation of India). Today each and

every company is trying to increase their Insurance Advisors so that they can

increase their reach in the market. This situation has created a scenario in which


to recruit Life insurance Advisors and to sell life Insurance Policy has became very-

very difficult.


Brief History of the Insurance Sector in India

The business of life insurance in India in its existing form started in India in the

year 1818 with the establishment of the Oriental Life Insurance Company in

Calcutta.

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against

loss and disaster existed in primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing to make some sort

of sacrifice in order to achieve security. Though the concept of insurance is

largely a development of the recent past, particularly after the industrial era –

past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first

life insurance company on Indian Soil. All the insurance companies established

during that period were brought up with the purpose of looking after the needs

of European community and these companies were not insuring Indian natives.

Bombay Mutual Life Assurance Society heralded the birth of first Indian

life insurance company in the year 1870, and covered Indian lives at

normal rates.

Bharat Insurance Company (1896) was also one of such companies

inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise

to more insurance companies.

The United India in Madras, National Indian and National Insurance in

Calcutta and the Co-operative Assurance at Lahore were established in

1906.

In 1907, Hindustan Co-operative Insurance Company took its birth in one

of the rooms of the Jorasanko, house of the great poet Rabindranath

Tagore, in Calcutta.

The Indian Mercantile, General Assurance and Swadeshi Life (later

Bombay Life) were some of the companies established during the same

period.


The Parliament of India passed the Life Insurance Corporation Act on the 19th

of June 1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much more

widely and in particular to the rural areas with a view to reach all insurable

persons in the country, providing them adequate financial cover at a reasonable

cost.


Some of the important milestones in the life insurance business in

India are:

1850: Non life insurance debuts with triton insurance company.

1870: Bombay mutual life assurance society is the first Indian owned life insurer.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India.


Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI

Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and

recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms

initiated in the financial sector.

The reforms were aimed at “creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the structural

changes currently underway and recognizing that insurance is an important part of the

overall financial system where it was necessary to address the need for similar

reforms…”.


The Insurance Regulatory and Development Authority (IRDA)

The Insurance Act, 1938 had provided for setting up of the Controller of

Insurance to act as a strong and powerful supervisory and regulatory authority

for insurance. Post nationalization, the role of Controller of Insurance

diminished considerably in significance since the Government owned the

insurance companies.

But the scenario changed with the private and foreign companies foraying in to

the insurance sector. This necessitated the need for a strong, independent and

autonomous Insurance Regulatory Authority was felt. As the enacting of

legislation would have taken time, the then Government constituted through a

Government resolution an Interim Insurance Regulatory Authority pending the

enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to

provide for the establishment of an Authority to protect the interests of holders

of insurance policies, to regulate, promote and ensure orderly growth of the

insurance industry and for matters connected therewith or incidental thereto

and further to amend the Insurance Act, 1938, the Life Insurance Corporation

Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end

the monopoly of the Life Insurance Corporation of India (for life insurance

business) and General Insurance Corporation and its subsidiaries (for general

insurance business).


PROFILE OF ORGANIZATION

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading

business groups with interests in telecom, agri business and retail, and AXA, world

leader in 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, we have over

5200 employees across over 12 states in the country. Our business philosophy is built

around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth

management needs with our product and service offerings, we continue to bring 'life

confidence' to customers spread across India. Whatever your plans in life, you can be

confident that Bharti AXA Life will offer the right financial solutions to help you

achieve them.


The Joint Venture BHARTI and AXA

BHARTI

Bharti Enterprises is one of India’s leading business groups with interests in telecom,

agri business, insurance and retail. Bharti has been a pioneering force in the telecom

sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group

company, is one of India’s leading private sector providers of telecommunications

services with an aggregate of 60 million customers, spanning mobile, fixed line,

broadband and enterprise services. Bharti Airtel was ranked amongst the best

performing companies in the world in the BusinessWeek IT 100 list 2007. Bharti

Teletech is the country’s largest manufacturer and exporter of telephone terminals.

Bharti has a joint venture with ELRo Holdings India

Ltd. – ‘FieldFresh Foods Pvt. Ltd’ - for global distribution of fresh fruits and

vegetables. Bharti also has a joint venture - ‘Bharti AXA Life Insurance Company

Ltd.’ - with AXA, world leader in financial protection and wealth management. Bharti

has recently forayed into the retail business under a company called Bharti Retail Pvt.

Ltd. It also has a joint venture – ‘Bharti Wal-Mart Private Limited’ – with Wal-Mart,

for wholesale cash-and-carry and back-end supply chain management operations.

AXA Group

AXA Group is a worldwide leader in Financial Protection. AXA's operations are

diverse geographically, with major operations in Western Europe, North America and

the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of

December 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 to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris

Stock Exchange. The AXA American Depository Share is also listed on the NYSE

under the ticker symbol AXA.


Bharti AXA Life Insurance

Vision

To be a leader and the preferred company for financial protection and wealth

management in India by 2012.

Values

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

Strategy

To achieve a top 5 market position in India through a multi-distribution, multi-

product platform

To adapt AXA's best practice blueprints as a sound platform for profitable

growth

To leverage Bharti's local knowledge, infrastructure and customer base

To deliver high levels of shareholder return

To build long term value with our business partners by enhancing the

proposition to their customers

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

To be recognized as being close and qualified by our customers


GOOD PRACTICES

The guiding Human Resources principles at Bharti AXA are:

1. Provide Clearly define scope of responsibilities and empower people to deliver

2. people with the means to develop their competencies

3. Consider individual training and development a priority investment

4. Build organizations that are conducive to teamwork and that involve everyone

5. Promote ongoing dialogue between managers and the people who report to them

6. Make cultural difference a key source of strength.

Strategic differentiators:

Strong partner Bharti - provides access to customer base of more than 20

million.

Multi channel execution capability.

Current Asia product range which is a strong match to products sold to the

mass and mass affluent.

Global scale providing cost effective and speedy re-use of systems, products

and business capability.

Strong AXA and Bharti brands which can be leveraged to attract and retain a

high quality management team.


Insurance Products of Bharti AXA

Life insurance products for individuals:

Bharti AXA Dream Life Pension

A Unit Linked Pension Product

Dream Life Pension, Bharti AXA Life Insurance’s unique pension product ensures

that your retirement life is your Dream Life.

Bharti AXA Life Aspire Life

Unit Linked Endowment Product.

Aspire Life helps you create a pool of wealth to meet your long-term needs, while

also providing you adequate protection in case the need arises.

Bharti AXA Life Invest Confident

Unit Linked Single Premium Product.

You have always strived hard to achieve the best for you and your loved ones, so

when it comes to making an investment decision, we know that you would expect the

best from it too.

Bharti AXA Life Wealth Confident

A unit-linked investment cum protection policy.

Your wealth, your status ensures that you get preferential status wherever you go. So

why shouldn't your money get the same?

Bharti AXA Life Future Confident

A unit-linked policy which offers comprehensive protection along with wealth

creation in the long term.


Bharti AXA Life Future Confident II

A unit-linked product which offers enhanced protection along with wealth creation in

the long term.

Bharti AXA Life Save Confident

for your family. Traditional money back insurance product for long term savings.

Your changing lifestages decide your financial milestone planning. When you foresee

intermittent financial requirements in the years to come, like regular expenses related

to your child’s education, liquidity becomes a key aspect of your planning along with

long term savings, and protection

Bharti AXA Life Secure Confident

A Long Term Life Insurance.

All of us desire to maximise the happiness for our family at all times, irrespective of

the circumstances. The thought of unfortunate events befalling us may cause us

anxiety about providing a secured happiness to our loved ones.


Life insurance products for Group Insurance:

Bharti AXA Life Mortgage Credit Shield

Mortgage Credit Shield is a Group Product that provides coverage to people who have

availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.

Bharti AXA Life Credit Shield

Credit Shield is a Group Product that provides coverage to people who have availed

of a loan for 1 to 5 years from Group Policy holder.


RESEARCH DESIGN AND METHODOLOGY


RESEARCH METHODOLOGYResearch methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done. We can say

that research methodology has many dimensions and research methods do

constitute a part of the research methodology. The study of research

methodology gives the student the necessary training in gathering material and

arranging or car-indexing them, participation in field work when required, and

also training in techniques for the collection of data appropriate to particular

problem, in the use of statistics, questionnaires and controlled experimentation

and in recording evidences, sorting it out and interpreting it. Knowledge of

research methodology plays a key role in project work. It consists of series of

actions or steps necessary to effectively carry out research and the desired

sequencing of these steps.

Data Collection Method

Data can be collected by Primary as well as secondary method.

1) Primary Data SourcesQuestionnaire methods and discussions with the HR and the employees were used to

collect data.

Questionnaire Designed: Questionnaire was used for the survey.

2) Secondary Data SourcesThe secondary data sources were collected from the company manuals,

handbooks, and management books and are edited to suite the purpose.

Investment in Life Insurance is not a one-time activity. It is a continuous activity.

The same investor, if satisfied, will come to the fund again and again. When the

investor sends his application, it is not only an application, but it also contains

vital information. Most of this information if tabulated and analyzed, would

provide important insights into investor needs, preferences and behavior and

enables us to target customers need more accurately, to achieve better

penetration, deeper loyalty and reduced costs. It is in this context that direct

marketing will assume increased importance. Knowing the customer thoroughly

is of utmost importance. Unlike the consumer goods industry, it is not possible

for Life Insurance industry to test market and have pilot projects before launch.


At the same time, focusing and concentrating on a particular geographic area

where the fund has a strong presence and proven marketing network, can help

reduce network, can help reduce issue expenses and ultimately translate into

higher returns for the investor. Very little research on investor preference is

available, but the industry can collectively have a data bank, and share the

information for appropriate use.

This study on Life Insurances in India has been based on primary as well as

secondary data sources.

The primary data is collected by the getting the questionnaire filled from the

common investor above the age of 25.

For this research, I have made use of a questionnaire for ascertaining the

investment pattern of a common investor.

The questionnaire consisted of 13 questions in total, each question having

various multiple choices. Depending upon the choice selected by the respondent,

each respondent gets a total score which represents his degree of favorability

towards the kind of investment he makes and his knowledge about the

investments.

The main aim of conducting the survey using a questionnaire was to

understand the perception of small investors, who are the most exploited in

Indian capital Market, analyze the type of funds available for the investor,

understand the investment pattern of a common investor, importance of

marketing Strategies in Life Insurances.

This was done by ascertaining the average response of all the samples for the

total 13 questions asked in the questionnaire. The results for the 13 questions

asked were further graphically represented, showing the favorability towards

different parameters.

The secondary resources used in the study are:

• Books

• Journals

• Magazine Articles


• Internet Websites.


RESEARCH DESIGN

Exploratory type of research designs adopted because sources of information are

relatively few and the purpose is merely to find and to understand the possible

actions. The major purposes of exploratory study are:

Identification of problem

The precise formulation of problems including the identification of

variables

Formulation of alternative course of action

An exploratory research is often the first in the series of projects that culminates

in one concerned with the drawing of inferences that are used as a basis of

monetary action. Exploratory study is often used as a introductory phase of a

larger study and results are used in developing specific technique for larger

study. Of the study the relevant questionnaire was prepared and circulated

among a stratified sample of 50 employees of BHARTI AXA LIFE INSURANCE

Limited. This questionnaire formed the basis for the views on each of the points

raised in the questionnaire. The data thus obtained formed the basis of

information regarding the existing recruitment and selection processes at

BHARTI AXA LIFE INSURANCE. and the same is analyzed and interference is

drawn regarding the various aspects of recruitment and the entire process of

selection at BHARTI AXA LIFE INSURANCE


SAMPLE DESIGNSampling technique:Stratified sampling technique is adopted to conduct the research. Stratified purposive

sapling is a selection method for achieving a greater degree of representatives,

therefore decreasing the probable sampling error. It is based on the concept that a

homogeneous population produces samples with smaller sampling errors than does a

heterogeneous population. Stratified sampling is accomplished by placing all the

members of the population into groups according to some characteristics that is

common among them, that is homogeneous subsets of the population. Then specified

number of unit is chosen from each of the groups or strata by purposive means.

Sampling PlansThe sampling plan consists of sampling units, e.g. from functional departments

namely Marketing, Commercial, Technical and Human Resource. These employees

constitute the manpower in the company who are engaged in the day to day

functioning of the company, thus it is very important for them to understand the

various aspects of the entire selection process and also the importance of performance

appraisal system. Therefore, they had been selected for the project sampling

Sample Size:- Sample size was taken 1100 to undertake the survey.


The Recruitment Process flowchart:-Following is the flowchart of steps followed in recruitment of Life advisors:

Identifying Vacancy & advertising it¯

Prepare Job Description and person Specification¯

Short-listing on the basis of ‘Q’ scores¯

Conduction of interview¯

Filling up the compulsory IRDA form¯

Scheduling the training¯

Conduction of examination¯

Final selection as LA

The elaboration on all the steps given in the flow chart above is given in the following

pages.

1. Identifying vacancy and advertising it: the following changes in the

scenario led to the increasing vacancy for life advisors in Bharti AXA Pune.

Expansion of business as well as market.

Growing competition.

Change in demographics.


After the identification of vacancy pamphlets containing the details were prepared

and were distributed. The pamphlets used by us have been provided as Annexure

1, 2 and 3.

2. Preparing job description and person specification:

2.1 Career Bandwidth as a Life advisor at Bharti AXA:

2.1.1 As a Life Advisor at Bharti AXA, there is only one way to grow. And

that’s by meeting and exceeding your targets.

2.1.2 As a good performer, you stand to get promoted from Bronze to Diamond

Club and enjoy special remuneration benefits.

2.1.3 As a Life Advisor, you can get appointed as an Agency Manager within a

span of just 9 months to 1 year.

2.1.4 As a Life Advisor, you also get to participate in various business related

projects and committees.

2.2 Compensation

2.2.1 As a Life Advisor, you have the opportunity to create attractive earnings

for the first year and for the long term through payouts.

2.2.2 Higher the business you generate in the first year, higher the income you

stand to earn year after year.

2.2.3 Get rewarded through Best in Class Rewards and Recognition programs

including overseas conventions.

2.3 Support

2.3.1 All Bharti AXA branches have HR services for support on all matters

related to compensation and career so you can redress your concerns

immediately.


2.3.2 State-of-the-art Distribution Training support.

2.3.3 Comprehensive marketing support in terms of brochures, illustrations etc.

2.3.4 Sales Management Support for on the job training and business closure.

2.3.5 Infrastructure & Technology support through dedicated Life Advisor’s bay

equipped with telephones, computers and internet at Bharti AXA premises.

2.3.6 Customer Service and operations support.

2.3.7 The details about the rewards and recognition are given in Annexure 4.

3. Short Listing on the basis of Q scores:

3.1 The five Qs- The Qs are 5 different criteria where the candidates are to be

analyzed.

3.1.1 Q1- The candidate should have been a resident of Lucknowfor at least five

years.

3.1.2 Q2- He/ She should be married.

3.1.3 Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs.

3.1.4 Q4- He/ She should be a graduate.

3.1.5 Q5- Minimum age to be eligible for being a life advisor is 18.

3.2 The significance of Qs

3.2.1 A high Q score implies possibility of better performance by the candidate

as a life advisor (meaning better revenue generation ability). On an

average only a candidate with a score of Q4 or Q5 was interviewed.

3.2.2 A low Q score implies lesser possibility of such performance.


4. Conduction of interview:

4.1 Pre- interview: Preparation of recruitment /selection document for

Advertising.

4.1.1 Preparing advertisement

4.1.2 Media selection

4.1.3 Positioning

4.2 Response handling

4.2.1 Initial interview online or telephone

4.2.2 Short-listing for interviews

4.2.3 Interview arrangement

4.2.4 Sending emails or calling short listed candidates

4.2.5 Interview details to the short listed candidates

4.3 During Interview

4.3.1 HR interview

4.3.2 Technical interview

4.3.3 Conducting tests [Aptitude / Mathematical / Analytical etc.]

4.3.4 Initial final list of candidates

4.3.5 Reference check (if required)

4.4 Post interview


4.4.1 Email or Telephone call to unsuccessful candidates.

4.4.2 Technical Manager approval for a start up date.

4.4.3 Email or Telephone call to successful candidates.

4.4.4 HRM prepares a letter of appointment.

4.5 Selection Process

4.5.1 Starts with the preliminary interview.

4.5.2 Ends with contract of employment.

4.5.3 Different process for different organization.

4.5.4 Different process for different job in same organization.

4.5.5 Selection easy for shop floor workers.

4.5.6 Selection of managers are crucial.

4.5.7 Affected by internal & external environment.

4.5.8 Mutual decision making.

5. Filling up of compulsory IRDA form: A NAAF (New advisor application

form) is to be filled up by the candidate. Provided as annexure.

6. Scheduling of the training: Guidelines as per provisions of IRDA Act for

training of life advisors (effective from 31st October 2004).

6.1 The applicant shall have to undergo at least 100 hours’ practical training in life

or general insurance business which may be spread over three to four weeks,

where such applicant is seeking license for the first time to act as an insurance

agent.


6.2 The training duration should be minimum 18 working days excluding Sundays

and holidays.

6.3 No product training/market survey should be included into this hundred 100

hours training. The product training, if any, to be given by the insurance

company should be over and above the minimum training hours prescribed by

the Authority

6.4 The attendance record of the trainees should be maintained at the Institute for

necessary inspection at any given point of time.

6.5 In case of short-fall of attendance, extra class may be permitted but the extra

hours may be specified separately with proper attendance and details of

faculty.

6.6 Every Institute should have at least one qualified permanent faculty who is an

Associate or Fellow from the Insurance Institute of India for each stream i.e.

for Life and Non-Life.

6.7 The attendance register of the faculty members should be maintained at the

training institutes.

6.8 The record of the payment made to faculty should be maintained at the

training institute i.e. batch-wise payment detail should be maintained.

6.9 The faculty should provide details of the other Institutes with whom they have

been empanelled as part-time/guest faculty.

6.10 Register should be maintained at the training institute giving details of batches

completed, strength of the each batch, number of candidates decertified, name

of the sponsored insurer and details of faculty who imparted the training with

dates.

6.11 The seating capacity of each class-room should not exceed 40.

6.12 The fresh accreditation will be given on need basis after assessing the needs of

the particular city/town.


6.13 The initial approval will be for a period of 3 years and consideration of further

renewal up to 3 years would depend on the satisfactory compliance of

requirements of accreditation.

6.14 The insurance companies would regularly send their officials to oversee the

proper conduct of the training at the institutes and would not sponsor

candidates to those institutes that are not maintaining the required standards of

and facilities for the training.

6.15 The training institute must display the certificate of accreditation to impart

training issued by the Authority at the training institute.

6.16 The Institute should not allow a franchisee to conduct courses on its behalf

even if the faculty is that of the Institute. The Institute should conduct the

training on its own premises or hired premises with proper infrastructure.

6.17 No marketing fee/consultancy fee payment is permitted for getting the training

batches.

6.18 It will be the responsibility of the Insurance Company to check the status of

the institute before sponsoring any candidates for training.

6.19 In case of mofussil areas or the cities where there are no accredited institutes

and an insurance company intends to appoint agents, it will be the

responsibility of the insurance company to conduct training.

6.20 The Institutes must keep with them one set of records of the training at the

place where the training is being imparted.

6.21 The Institute should confine its activities only to the place/city for which it has

been given the approval. No training outside the said place/city is permitted.

6.22 The Institutes must submit a copy of the lease deed/rent agreement at the time

of seeking fresh accreditation/renewal/change of address of the institute.

6.23 On successful completion of training the candidates get COT i.e. the

Completion of Training Certificate by Bharti AXA.


7. Conduction of examination:

7.1 Syllabus: the syllabus prescribed by the authority for life insurance agents is

given in annexure 6. it is indicative and not exhaustive. The self study course

material developed by institute in book form only the broad basis of

examination which is available for sale with the institute and its associated

institutes. A candidate is expected to study the course material in depth and

also assimilate general information relevant to the subject. Candidate is also

expected to know up-to-date developments in the insurance industry.

7.2 Pattern of examination: normally objective type multiple choice

questions are asked. A candidate is required to indicate the correct alternative.

A candidate is required to secure at least 50% marks to be declared successful.

But the institute reserves the right to change, the pattern of question paper for

the examinations without notice to anyone to test the knowledge of the

candidate as it deems fit.

7.3 Mode of examination: The test can be taken up in either of the two

modes- online or offline. Depending on the mode of testing the training is also

arranged. For online mode the training is also done online whereas in offline

mode the training is done in the class room format of. The duration of

classroom training is 6+2 days. Where 6 days are reserved for compulsory

IRDA training and the remaining 2 days are for product based training.

7.4 Admission card: No candidate will be allowed to appear for the

examination unless he/ she produces the admission card. The admission card

will be issued by Bharti AXA. Besides admission card candidate must possess

COT issued by Bharti AXA.

7.5 Sample questions: a list of sample questions is given as annexure.

8. Final selection as Life Advisor: the final selection as Life advisor is

communicated to the candidate.


SURVEY QUESTIONNAIRE1. Name:2. Age:3. Sex: Male Female4. Occupation:

Government Employee Private Employee Student Proprietor Others

5. Number of Years spent in Pune: Less than 1 year 1-2 Years 2-3 Years 4-5 Years

6. Marital Status: Married Unmarried

7. Do you live in joint family? Yes No

8. If married do you have children, how many? 1 child 2 children


3 children 4 children

9. Which is your biggest concern for future? Child education Retirement Child’s marriage Medical illness

10. Have you made provision for future liabilities? Yes No

11. Given a chance would you like to make extra money? Yes No


Analysis 1

Age of respondents: the following is the distribution of age of the respondents.

Age <25 Years 25-35 Years 35-45 Years >45 Years

Number of

individuals

584 396 73 47

Less than 25 years of age individuals constitute 53% of sample size.

Whereas individuals with more than 45 years of age constitute only 4%.

Interpretation: sample which has been surveyed is dominated by younger

individuals.

Age of respondents

584

396

73 47

0

100

200

300

400

500

600

700

<25 years 25-35 years 35-45 years >45 years

Age

Num

ber o

f ind

ivid

uals


Analysis 2

Sex of respondents

Sex of Respondent

male, 814, 74%

female, 286, 26%

male female

Interpretation: Sample is dominated by males which constitute 74% of total size.


Analysis 3

Occupation of Respondents

Occupation Student Pvt.

Employee

Govt.

Employee

Proprietor Others

Number 436 395 87 135 47

govt. employee, 87

pvt. Employee, 395

student, 436

proprietor, 135

others, 47

govt. employee

pvt. Employee

student

proprietor

others

Interpretation: Sample is dominated by students and Private Employees (76%).


Analysis 4Number of Years spent in lucknow.

Interpretation: Most of the individuals (less than 1 yr) have come to Lucknow to

study or work. The individuals with 4-5 years spent in Lucknow or more are basically

localites.

Number of years spent in Lucknow

468

158

231

243

0 50 100 150 200 250 300 350 400 450 500

less than 1 year

1-2 years

2-3 years

4-5 years

num

ber o

f yea

rs

number of individuals


Analysis 5

Marital status:

Marital status

368, 33%

732, 67%

married

unmarried

Interpretation: two thirds of the sample size is Unmarried people.


Analysis 6

Question: Do you stay in a joint family in Lucknow?

Yes – 387 No- 713

Family type of respondent

387

713

0

100

200

300

400

500

600

700

800

staying in joint family not staying in joint family

Interpretation: Almost 65% of Individuals are staying either alone or in a nuclear

family. They are basically students or individuals who have come to Lucknow for job

opportunities.


Analysis 7

Question: If you are married, do you have any children? How many?

Number of children 1 child 2 children 3 children 4 children

Number of

individuals

97 72 15 1

Number of children if married.

97

72

15

10

20

40

60

80

100

120

1 child 2 children 3 children 4 children

Num

ber o

f ind

ivid

uals

Interpretation: Only 185 respondents have children, of which 50% have only one

child.


Analysis 8

Question: What is your biggest concern for future?

Biggest concern for future

child education, 433, 39%

retirement, 217, 20%

child's marriage, 103, 9%

medical illness, 347, 32%

child education

retirement

child's marriage

medical illness

Interpretation: medical illness (32%) & child education (39%) are major concern

for future.


Analysis 9

Question: Have you made provision for future liabilities?

Yes: 304 No: 796

Have you made provision for future Liabilities.

yes, 304, 28%

no, 796, 72%

Interpretation: 72% of the individuals have made no provision for the future

liabilities.


Analysis 10

Question: Given a chance would you like to make extra money?

Yes: 833 No: 267

Given a chance would you like to make extra money?

yes, 833, 76%

no, 267, 24%

Interpretation: 76% of the individuals would like to make extra money. Such

individuals are identified and then they are motivated become Life advisors for an

extra source of income.


FINDINGS

The findings are based on the survey undertaken and interview of individuals for the procurement of life advisors.

The major findings are:1. The Individuals finally selected as Life advisors constitute 0.72% of Sample

size.2. 47.05% of the Individuals who underwent the training cleared the exam.3. 3.30% of the individuals who wanted to make extra money could finally be

selected for the Job.

Total number of Individuals surveyed -1100

Among the individuals surveyed, the individuals who were

willing to make extra money- 833

Among the individuals who were willing to make extra money, those with Q score greater than 3-

242

Among the Individuals with scores

> than Q3, those interviewed- 30

Individuals selected for IRDA training

17

8Finally selected Life advisors


SUGGESTIONS

The fee charged from candidates as application money should be waved off. It

should rather be paid by the Insurance Company.

The strict training schedule should be made flexible. For a person who is Q4

or Q5 on score it is difficult for him/ her to be able to come for training

especially in case when he/ she is already working.

The incentive system should be more attractive to motivate more and more

people for becoming Life Advisors.

More and more promotional activities should be held for enhanced brand

building which will facilitate revenue generation and increased satisfaction

leading to customer retention in the long run.

There is need to have in place a properly managed performance appraisal

system even for life advisors that would contribute to effective retention of

personnel.


SOLUTIONS

The usual procedure to go about the project is to conduct the Group Field

Activity (GFA). In that, the trainees are sent to the market to gather data and leads.

They have only the survey questionnaire with them. We conducted this for the first 2

weeks. But the results were not up to the mark. The main reasons have been cited in

the limitations. To counter the hurdles faced, we came up with the following

solutions:

1. Promotion:

While interacting with the prospects, we had to convey the idea orally. The

retention time is very little as the respondents are in some hurry. Besides, the GFA, is

something such as a brochure could be handed out to the prospects, it would stay on

their minds. The Brochure would contain all the major details such as the benefits, the

compensation, the work flexibility and the requirements of being an Life Advisor.

Thus we designed a brochure/pamphlet on the same lines. But being trainees,

the expenses had to be borne by us. So we decided to print the brochure as flyers on

cheap recycled paper. We decided to distribute these flyers while taking survey.

Along with distributing the flyers, we decided to put the flyers

along with our contact information in the newspapers of the area. For this, we

contacted the local newspaper vendor. This gave us higher number of leads as we

were approaching the right target prospect.


2. Event:

To generate more leads, we required to attract more people. This could be

done by a small event at some school or a social place like a mall or a shop. We

decided to approach a nearby primary school and offered to hold a drawing

competition for the students. The holiday season was nearing and this would mean

that more students would participate. The parents would come to the event as well and

hence we could generate leads.

3. Initial Screening Forms:

These are the forms which calculate the Q scores of the probable prospects. So

we decided to take the Initial screening form (ISF) questionnaire and get it filled by

the prospects in the first interaction itself so that we could shortlist candidates for the

second process. This saved time considerably as we did not have to go into details to

screen out the candidates. Now we could calculate the Q score directly.

4. Secondary Database:

We approached our respective guides to provide us with the database of the

current and past customers of the nearby areas. That way, we could hold a telephonic

conversation and hence generate leads.

Along with the GFA, the aforesaid actions helped us gather more leads for the

Business Opportunity Presentation.


RESULT

After undertaking the entire process of questionnaire survey, individuals were

analyzed on the basis of their Q scores.

Those individuals whose Q score was greater than 3 were considered better

prospects to be Life advisors.

30 individuals were Interviewed.

17 individuals were selected for IRDA training.

8 individuals successfully completed the training and passed the Exam and

were Finally selected as Life advisors at Bharti AXA Life Insurance, Gomti

Nagar, Lucknow.


For the purpose of this report, it was found that the questionnaire and interview

questions, employee manual were sufficient to obtain the information required to

analyze the process of requirement and selection within the organization. It has

been found that the organization has a sound understanding of what process

need to be used in order to achieve effective recruitment and selection of Life

advisors. In addition to this, there are several recommendations for the

organization.

For any firm to be successful the main objectives should be:

Sustainable long-term growth,

Stable income and

Asset preservation;

Need to emphasize quality and diversification in both equity and fixed

income asset classes.

Focus should be on long-term consistent investment performance.

Emphasis towards training and enhancing skills of recruits needs to be

more.

Invest more in current staff than in Recruitment:

Conduct internal audit.

Be Creative

Understand and manage salary:

The general perception of life insurance has to change in India before progress is

made in this field.

BIBLIOGRAPHY


www.irdaindia.org

www.bharti-axalife.com

NAAF

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

http://www.irdaindia.org/


Annexure 1PERSONAL DETAIL FORM

DATE:

NAME: CONTACT NUMBER: FATHER’S NAME:AGE: D.O.B:OCCUPATION:ADDRESS:

FAMILY HISTORY: NAME AGE OCCUPATIONFATHER:

MOTHER:

BROTHER:

SISTER:

E-MAIL:


Annexure 2Broad syllabus for pre- recruitment exam for life insurance agent:

1. Introduction to insurance:

What is insurance

Purpose and need of insurance

Classification of risk

The human asset

Insurance as a social security tool

Role of insurance in economic development

2. Principles of life assurance:

life insurance contracts

principle of utmost good faith

insurable interest

principle of indemnity

different risks

3. Premium and bonus

what is premium?

Premium calculation

Life fund

Actuarial valuation

Bonus

4. Life insurance products

basic elements

some popular plans

variable insurance plans

salary saving schemes


riders

annuities

group insurance

5. Underwriting introduction

classification of risk

financial underwriting

assessing risk

adverse selection

non medical underwriting

recent rends

6. Insurance documents proposal form and personal statements

first/ renewal payment receipt

policy document

endorsement

prospectus

7. Policy conditions age, days of grace

lapse and non- forfeiture

paid up value

revival

assignment, nomination

surrenders and loan

foreclosure

alterations

married women’s property act policy


8. Claims maturity claims

survival benefit payments

death claims

accident and disability benefits

claims concessions.

9. Unit linked life insurance products what is linked policy

option of funds

net asset value (NAV)

flexibility

lock in

charges

ULIP and traditional insurance

Annuities and pensions

10.Insurance agency definition of an agent

agents’ regulation

procedure for becoming an agent

methods of remunerating agents

agency as a profession

functions of agents

responsibilities of an agent

pre requisites for success

ethical behavior

11.Law and regulations insurance act 1938

LIC act 1956

IRDA act 1999


Consumer protection act 1986 (COPA)

Ombudsman

Income tax act

MWP act

Rural and social sector

Micro insurance

bharti axa life insurance-dinesh

Documents

training training

training of life advisors

project purpose

project significance

sales promotion recruitment

development types of

process of summer project

project brief history