recruitment in sbi life insurance

7/27/2019 Recruitment in SBI Life Insurance

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Chapter1

INTRODUCTION TO THE INDUSTRY

1.1 Introduction

The insurance sector was opened up in the year 1999 facilitating the entry of

private players into the industry. With an annual growth rate of 24.31 percent and

the largest number of life insurance policies in force, the potential of the Indian

insurance industry is huge. The year 1999 saw a revolution in the Indian insurance

sector, as major structural changes took place with the ending of Government

monopoly and the passage of the Insurance Regulatory and Development

Authority (IRDA) Bill, lifting entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership.

According to the CSO, the insurance and banking services contribution to

the countrys GDP is 7.1 percent out of which the gross premium collection forms

a significant part. Life insurance penetration in India was less than 1 percent

till1990-91. During the 90s, it was between 1 and 2 percent and from 2001 it was

over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08 it was 14percent.

The impetus for increase is due to the active role played by IRDA in

licensing private players and taking positive steps in increasing the insurance

awareness among the people. Besides, the insurance companies in general and


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private insurance companies in particular, are reaching out to untapped potential in

rural areas with aggressive campaigns.

Innovative products, smart marketing, and aggressive distribution have

enabled fledgling private insurance companies to sign up Indian customers

faster than anyone expected. Life insurance is viewed as a tax saving device.

People are now turning to the private sector for providing them with new products

and greater variety for their choice. The improvement in FDI flows reflected the

impact of recent initiatives aimed at creating an enabling environment for FDI

encouraging infusion of new technologies and management practices. The

Governments proposal to increase the FDI cap in the insurance sector from the

present 26 percent to 49 percent has raised expectations among the international

insurance companies.


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1.1.1 Definition

Insurance is a contract in which sum of money is paid to the assured

inconsideration of insurers incurring risk of paying a large sum upon a given

contingency.

---Justice Tindall

Insurance is a contract by which one party for a compensation called in the

premium assumes particular risks of the other party and promises to pay to him or

his nominee a certain sum of money on a specified contingency.

---E.W.Fitterson

Insurance may be described as social device whereby a large group of individuals,

through a system of equitable contribution, may reduce certain measurable risk of

economic loss common to all members of the group.

--Encyclopedia Britannica

The above definitions clearly show that insurance is a cooperative device to

spread the loss caused by a particular risk over a member of persons who are

exposed to it and who agree to insure themselves against risk. Insurance does not

eliminate risk but only reduces the financial burden, which may be very heavy.


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1.1.2Evolution of Insurance

In the days of yore insurance was in its crude form and was cooperative and

voluntary in nature. When, where and how it originated is still a matter of research

in one way or the other was prevalent in olden days. We can trace its history from

the evolution society from hunting stage to the modern industrial age. A word

YAGCHHEM occurs in the worlds most ancient Hindu Scripture Rig Veda.

The word YAGCHHEM means insurance. It clearly indicated that about

four thousand years ago insurance was prevalent in its crude form. It wascooperative and voluntary in nature. People formed different groups

of organizations to share the loss among themselves incase of a particular risk.

Each member contributed some amount to a common fund to meet the unforeseen

losses. Sometimes they also contributed equally to compensate person as and when

he suffered a loss. Traces of insurance in the ancient world are also found in the

form of marino trade loans or carriers contracts which included an element of

insurance.

Evidence is on records that arrangements embodying the idea of insurance

were made in Babylonia and India at quite an early period. References were made

to the concept of insurance in Manus code Manu Smrity. It was akin to

Yagakshemo of Rigveda in which the well being and security of the community

was aimed at. However, there is no evidence that insurance in its present farm was

practiced prior to twelfth century.


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1.1.3Nature of Insurance

The insurance has the following characteristics which are observed incases

of life, marine, fire and general insurance.

1. Sharing of risks: Insurance is a cooperative device to share the financial

losses which might befall on an individual or his facility on the occurrence

of specified event such as sudden death of the bread winner, marine perils in

marine insurance, fire in the fire insurance and theft insurance etc. in the

case of general insurance.

2. Cooperative device: A large number of persons agree to share the loss

arising sue to a particular risk. Thus, insurance is a cooperative device.

3. Value of risk: The risk is evaluated before insuring to charge the amount of

share called premium.

4. Payment made at contingency: The payment is made at a certain

contingency insured. The Contingency may be death, fire, marine prelisted.

5. Amount of payment: The amount of payment depends upon policy insured.


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1.1.4 Functions of Insurance

A)Primary Functions-

1) Insurance provides certainty: Insurance provides certainty of payments at the

uncertainty of losses. The element of uncertainty is reduced by better

planning and administration.

2) Insurance provides protection: The risk will occur or not, when will occur

and how much loss will be there. There are uncertainties of happening oftime and amount of losses. The main function of the insurance is to provide

protection against the losses.

3) Risk sharing: Risk is uncertain and therefore, the loss arising from the risk is

also uncertain. All business concern faces the problem of the risk and if the

concern is big enough the handling of risk becomes a specialized function.

Insurance, as a device is the outcome of the existence of various risks in our

day to day life. It spreads the whole losses over a large number of persons

who are exposed by a particular risk.

B) Secondary Functions-

1) Prevention of loss: Prevention is always better than cure. Prevention is by far

the best solution to the problem of risk. It is more effective and cheapest

method to avoid the unfortunate consequence. But sometimes prevention is

not always possible and Effective.


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2) Provides capital: It provides the capital to the society. For plan development

of country there is a great need for huge amount of capital. Now days, the

insurance companies are rendering positive help in the development of trade,

commerce and industry of the country.

3) Improves efficiency: Achievement of goals, it improves not only his

efficiency of the masses is also advanced. The insurance eliminates worries

and miseries of losses as death and destruction of property care free person

can devote his energies for better.

4) Ensures the welfare of society: Insurance is a saga ofservice and security

to thee society. Security of the life and property given by insurance bring

peace of mind to the insured. The investment in LIC in welfare schemes like

electricity, housing, water supply, agro industry estates are able to solve

many problems in India.

5) Helps in economic progress: Insurance provides an initiative to work hard

for the betterment of the masses. Life insurance involves the element of

saving investment through small savings. And which has been growing in

recent years at an annual rate of about Rs. 400 crs. Life insurance is not a

mere business organization; it has nobler welfare responsibilities in the

development of the economy.


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1.2 Insurance Industry

1.2.1Introduction

With an annual growth rate of 15-20% and the largest number of life

insurance policies in force, the potential of the Indian insurance industry is huge.

Total value of the Indian insurance market (2004-05) is estimated at Rs.450 billion

(US$10 billion). According to government sources, the insurance and banking

services contribution to the country's gross domestic product (GDP) is7% out of

which the gross premium collection forms a significant part.

The funds available with the state-owned Life Insurance Corporation

(LIC)for investments are 8% of GDP. Till date, only 20% of the total insurable

population of India is covered under various life insurance schemes, the

penetration rates of health and other non-life insurances in India is also well below

the international level. These facts indicate the of immense growth potential of the

insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as

major structural changes took place with the ending of government monopoly and

the passage of the Insurance Regulatory and Development Authority (IRDA) Bill,

lifting all entry restrictions for private players and allowing foreign players to

enter the market with some limits on direct foreign ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in

an insurance company, a proposal to increase this limit to 49% is pending with the

government. Since opening up of the insurance sector in 1999, foreign investments

of Rs. 8.7 billion have poured into the Indian market and 21 private companies

have been granted licenses.


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Innovative products, smart marketing, and aggressive distribution have

enabled fledgling private insurance companies to sign up Indian customers

faster than anyone expected. Indians, who had always seen life insurance as a tax

saving device, are now suddenly turning to the private sector and snapping up the

new innovative products on offer.

The life insurance industry in India grew by an impressive 36%, with

premium income from new business at Rs. 253.43 billion during the fiscal

year 2004-2005, braving stiff competition from private insurers. RNCOSs report,

Indian Insurance Industry: New Avenues for Growth 2012, finds that the market

share of the state behemoth, LIC, has clocked 21.87% growth in business

atRs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was

stilton enough to arrest the fall in its market share, as private players grew by

129%to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the last fiscal

year (2004-2005) compared to the previous one, its market share came down

from87.04 to 78.07%. The 14 private insurers increased their market share from

about 13% to about 22% in a year's time. The figures for the first two months

of the fiscal year 2005-06 also speak of the growing share of the private insurers.

The share of LIC for this period has further come down to 75 percent, while the

private players have grabbed over 24 percent.

There are presently 12 general insurance companies with four public sector

companies and eight private insurers. According to estimates, private insurance

companies collectively have a 10% share of the non-life insurance market.


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Though the focus of this market research report is on the potential growth

on the Indian Insurance Sector, it also talks about the market size, market

segmentation, and key developments in the market after 1999. The report gives an

instant overview of the Indian non-life insurance market, and covers fire, marine,

and other non-life insurance. The data is supplied in both graphical and tabular

format for ease of interpretation and analysis. This report also provides company

profiles of the major private insurance companies.

1.1.1 Report Highlights

Gains of liberalization in Indian insurance sector Indian insurance market segmentation by products Size of the market and market share of life insurers, in INR (crore) Market share of non-life insurers Forecast of life insurance growth up to 2012

Forecast of non-life insurance growth up to 2012 Market revenue of both public and private insurers Policies and measures taken by IRDA to develop the insurance market Research and development activities Regulation of insurance and reinsurance companies Major challenges that Indian insurance sector is facing Profiles of the major players


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INSURANCE INDUSTRY CLASSIFICATION

Fire Insurance Marine Insurance Mediclaim Motor Vehicle

INSURANCE

LIFE INSURANCE GENERAL INSURANCE


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Life insurance

Life insurance is a contract between the policy owner and the insurer, where the

insurer agrees to pay a designated beneficiary a sum of money upon the occurrence

of the insured individual's or individuals' death or other event, such as terminal

illness orcritical illness. In return, the policy owner agrees to pay a stipulated

amount (at regular intervals or in lump sums). There may be designs in some

countries where bills and death expenses plus catering for after funeral expenses

should be included in Policy Premium. In the United States, the predominant form

simply specifies a lump sum to be paid on the insured's demise.

Life policies are legal contracts and the terms of the contract describe the

limitations of the insured events. Specific exclusions are often written into the

contract to limit the liability of the insurer; for example claims relating to suicide,

fraud, war, riot and civil commotion.

Fire Insurance

Fire Insurance is one of the oldest forms of insurance and goes as far back as

Marine insurance. Its origins are in the age-old fear of fire and human failing to

control fire. In the early development of industrial society fire was the main source

of energy. No industrial activity or commerce was possible without fire and the

need to insure the risk of uncontrolled fire became the integral part of society.

Fire insurance is designed to provide for financial loss to property due to fire and

few other related hazards. Fire insurance is governed by Tariff under the Tariff

Advisory Committee (TAC).
http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Beneficiaryhttp://en.wikipedia.org/wiki/Deathhttp://en.wikipedia.org/wiki/Terminal_illnesshttp://en.wikipedia.org/wiki/Terminal_illnesshttp://en.wikipedia.org/wiki/Critical_illnesshttp://en.wikipedia.org/wiki/Critical_illnesshttp://en.wikipedia.org/wiki/Terminal_illnesshttp://en.wikipedia.org/wiki/Terminal_illnesshttp://en.wikipedia.org/wiki/Deathhttp://en.wikipedia.org/wiki/Beneficiaryhttp://en.wikipedia.org/wiki/Insurance


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Marine Insurance

Marine insurance business means the business of effecting contracts of insurance

upon vessels of any description, including cargoes freights and other interests

which may be legally insured in or in relation to such vessels, cargoes, freights,

goods, wares, merchandise and property of whatever description insured for any

transit by land or water or both, and whether or not including warehouses risks or

similar risks in addition or as incidental to such transit and includes any other risks

customarily included among the risks insured in marine policies.

Health InsuranceHealth Insurance mainly covers two types of benefits: one is related to the

reimbursement of medical expenses related to specific diseases and the other is

related to the hospitalization. Globally, the health covers operate in two ways

cashless and cash reimbursable ones.

The health insurance has changed the way medicine is dispensed and sold in the

most parts of the world. In India, its impact has yet to be felt. However, the

introduction of the now famous Mediclaim policy made a huge difference to an

ordinary citizens usage of insurance for medical cover purpose.

Healthcare Insurance Market in India is unique and has a strong growth potential

than the other insurance markets. Life insurance includes all risks related to the

lives of human beings. IRDA (Insurance Regulatory and Development Authority)

allowed to the customer to change their insurance company in case of

dissatisfaction with company. Health insurance portability gives the flexibility to

the customer and increases the fair competition among companies. The concept of

Portability is new in India so the awareness and perception towards portability of

customers depends on several factors. The study covers all the fundamental


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aspects of awareness and customer preference towards healthcare insurance

portability in India.

The objective of this study is therefore to examine some of the influences such as

consumer awareness and enthusiasm, the role of social influences like advertising,

services provided by company, groups and family in affecting consumers

perception and evaluations of health insurance.

Motor Insurance

Motor Insurance is one of the largest non-life insurance business in the world.

This is because it is statutorily mandated in most parts of world. All motor

vehicles are required to be registered with road transport authorities and insured

for third party liability. The basic premise is that motor vehicles could either cause

injury or be a subject to damage and injury and thus require insurance.

The Motor Vehicle Act of 1939 introduces compulsory insurance to take care of

those who may get injured in an accident. The insurance of damage to vehicle is

not mandatory


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EXECUTIVE SUMMARY

Project study report consists of brief description of company SBI LIFE

INSURANCE CO. LTD., the special focus on the human resources. My topic was

Recruitment and Selection Process in Insurance Company along with

significant findings & suggestions that give idea how many the employees in the

company are satisfied andnot satisfied with welfare facilityof the company.

Recruitment is the process of searching the candidates for employment and

stimulating them to apply for jobs in the organization. In the other words

recruitment is the activity that links employers and job seekers.

Recruitment procedure of SBI Life Insurance is very easy. A person with high

educating and well experience can be recruited after a personal interview and

group discussion. After the training program is completed the insurance agent has

to appear for the pre-examination conducted by IRDA. As he clear the exam he

provides a license, which is the proof of a legalized insurance agent, which permits

him to deal in his insurance business.

Recruitment of candidates is the function preceding the selection, which helps

create a pool of prospective employees for the organization so that the

management can select the right candidate for the right job from this pool. The

main objective of the recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a poolof qualified applicants for the future human resources needs even though specific

vacancies do not exist. Usually, the recruitment process starts when a manager

initiates an employee requisition for a specific vacancy or an anticipated vacancy.
http://recruitment.naukrihub.com/recruitment-process.htmlhttp://recruitment.naukrihub.com/recruitment-process.html


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OBJECTIVES OF THE STUDY:

The objective of the recruitment process is to obtain the number and quality of

employees that can be selected in order to help the organization to achieve its goals

and objectives.

1. To learn the HR recruitment process of SBI life insurance2. To critically analyze the various step in recruitment process3. To understand how each step is caused and factors taken into action for

developing the recruitment process

4. Finally, to recommend how recruitment process can be improvedSTRENGTHS

SBI Life has a unique multi-distribution model encompassing Banc assurance,

Agency and Group Corporate. SBI Life extensively leverages the State Bank

Group as a platform for cross-selling insurance products. At present SBI Life have

over 400 branch offices in India.

We take pride in our track record of growth, financial solidity, ethical practices,

domain expertise and meritocratic culture. Join us for a rewarding and an enriching

career.


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THREATS

1. People are hesitant to invest and put their hard earned money to the private life

insurance company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to

surmount the people of India despite lots of flaws and development and

liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and

securities also pose problems and threats to the working of the life insurance

sector.

4. Illiteracy and unemployment also pose threat.

Rising real estate industry also pose threat as people are investing a bulk of their

money over to that industry.


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CHAPTER -2

INTRODUCTION TO THE ORGANIZATION

2.1 SBI Life Insurance

SBI Life Insurance Company Limited is a joint venture between the State

Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with

an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores.

SBI owns 74% of the total capital and BNP Paribas Assurance the remaining26%.

State Bank of India enjoys the largest banking franchise in India. Along with

its 7 Associate Banks, SBI Group has the unrivalled strength of over

14,500branches across the country, arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of

BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top6

group of banks by market value and a European leader in global banking and

financial services, is one of the oldest foreign banks with a presence in India dating

back to 1860. BNP Paribas Assurance is the fourth largest life insurance company

in France, and a worldwide leader in Creditor insurance products offering

protection to over 50 million clients. BNP Paribas Assurance operates in41

countries mainly through the banc assurance and partnership model.

SBI Life has a unique multi-distribution model encompassing

Bancassurance, Agency and Group Corporate. SBI Life extensively leverages the

SBI Group as a platform for cross-selling insurance products along with its

numerous banking product packages such as housing loans and personal loans. SBI


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access to over 100 million accounts across the country provides a vibrant base for

insurance penetration across every region and economic strata in the country

ensuring true financial inclusion.

SBI Life extensively leverages the State Bank Group relationship as a

platform for cross-selling insurance products along with its numerous banking

product packages such as housing loans and personal loans.

2.1.1 Mission

To emerge as the leading company offering a comprehensive range oflifeinsurance and pension products at competitive prices, ensuring high standards of

customer satisfaction and world class operating efficiency, and become a model

life insurance company in India in the post liberalization period.

2.1.2 Values

Trustworthiness

Ambition

Innovation

Dynamism

Excellence


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2.1.3Key Milestones

A)Financial Year 08-09:

Bagged the coveted personal finance award-Outlook Money NDTV Profit best

Life Insurer 2008.

Ranked among global top three in terms of number of Million DollarRound

Table (MDRT) members.

CRISIL has reaffirmed its highest financial rating AAA/Stable to SBI Life. In

2007 SBI Life became the first life insurer in India to receive this rating from

CRISIL, countrys leading rating agency.

Recently ICRA has assigned iAAA rating indicating highest claims paying ability

to SBI Life Insurance.

Retains ISO 9001:2000 certificate for superior claim settlement process.

B)Financial Year 07-08:

Rated as the The Most Trusted Private Life Insurer according to a survey

conducted by Brand Equity in association with AC Nielsen ORG-MARG and the

Economic Times Intelligence Bureau.

Became first life insurer in India to receive the highest financial ratingAAA

from CRISIL, the countrys best known rating agency in 2007.


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Ranked amongst global top five life insurance companies in the number

of MDRT members.

Forayed into micro insurance with the launch of Grameen Shakti in

Bhubaneshwar, Orissa for the economically underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim settlement process.

Became the only domestic life insurer to achieve CMMI Level 3certification for

IT processes and software development capabilities.

C)Financial Year 06-07:

Second consecutive year of profitability.

Leads Private Life Insurance Companies in Lives covered : 6.49 Million lives

covered.

D)Financial Year 05-06:

Becomes the first Life Insurer to make profits.


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Purpose & Importance Of Recruitment

Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates

for the organization.

Determine present and future requirements of the organization inconjunction with its personnel planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number ofvisibly under qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selectedwill leave the organization only after a short period of time.

Meet the organizations legal and social obligations regarding the compositionof its workforce.

Begin identifying and preparing potential job applicants who will beappropriate candidates.

Increase organization and individual effectiveness of various recruitingtechniques and sources for all types of job applicants


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2.4Project Profile

2.4.1Eligibility For Recruitment of an Insurance Agent

Every person who has cleared higher secondary examination can become an

agent other than a minor or the person who is convicted in any court for crime or

any legal proceedings. Men and women both can work as an Agent. A single

person can be associated with other life insurance companies.

A training program is there to train a person who wants to become an Agent.

There is 100 Hrs. training program which can be done either with the physical

appearance in the class room or the interest basis. In the classroom training thetrainee has to be physically present in the training session. There are difference

sessions of training program. A trainee can attend any session according to his

comfort. The training period is of 25 days approx. If the trainee does not have

enough time to devote in the classroom training, then there is another option left

that is training on Internet.

On the basis of Internet the trainee has provided a login number along with

the password through which he operated his login and completed his training as

convenient. Each and every hour pass on the net under his login head will be count

on his account. The test for the training program is also on line. This is only

procedure to be an Insurance Agent.


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2.4.2 Scope of Insurance Agent

In the present scenario the living standard is becoming higher and higher every

day. Every person who has a family to survive wants to provide his family each

and every possible comfortable thing. He wants his children to be a well dressed,

to be higher qualified in a well recognized school, colleges, institutes and wants his

children to go abroad for higher education. He wants to live a luxury life full of

pleasure.

To fulfill all of his needs he has to earn more and more. Any person can beon a job at a time or can be on a business cant fulfill his pleasure requirement.

There is a source through which he can make money in a legal way that is

insurance sector.

Becoming an insurance Agent provides him the legal source by which he can earn

money with his current status. It is the business in which you deal with you

personal contacts and can gain extra income. This business needs low investment

and not of much effort. Its all depending on your social contacts and your skills to

convince people by helping them to suggest the product which suited them the

most.

As due to critical diseases, growing percentage of accident and fear

of financial crisis everyone wants to secure his or her future. Insurance sector plays

a vital role in assuring people about their future. As the scope of insurance

enhancing, the need of an insurance Agent who can guide the potential customers

is growing.


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Being an insurance agent of SBI Life Insurance provides a legal mean to

earn money which protects a person from earning through an illegal source which

is harmful for society as well as him. For the youngsters it provides great platform

to prove them. On the basis of their performance they can be recruited as unit

manager.

2.4.3 Recruitment Process

The recruitment and selection is the major function of the human resource

department and recruitment process is the first step towards creating the

competitive strength and the strategic advantage for the organizations.Recruitment process involves a systematic procedure from sourcing the

candidates to arranging and conducting the interviews and requires many resources

and time. A general recruitment process is as follows:

1. Identifying the vacancy-The recruitment process begins with the humanresource department receiving requisitions for recruitment from any

department of the company. These contain:

Posts to be filled

Number of persons

Duties to be performed

Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and typeof employees (Advertising etc).

Short-listing and identifying the prospective employee with required

characteristics.

Arranging the interviews with the selected candidates.


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Conducting the interview and decision making

2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing6. Arrange interviews7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process

i.e. the final interviews and the decision making, conveying the decision and the

appointment formalities.


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Fig.2.1 Recruitment process

The recruitment procedure of life insurance is very easy. A person with high

educating and well experience can be recruited after a personal interview and

group discussion. After the training program is completed the Insurance Agent has

to appear for the pre-examination conducted by IRDA. As he clear the exam he

provides a license, which is the proof of a legalized insurance Agent, which

permits him to deal in his insurance business.

Steps in recruitment of Insurance Agents Approach to the likely person

Appointment as per condition

Discuss the topic

Give the document which includes:-


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1. Prospectus of the company

2. Brochure

3. Companys plan

4. Questionnaire

Collect the document after its completion

Forward it to project manager

Feed it in the computer as the database

Follow up as per conditions

Modes of Contact

Personal Contacts

References

Phone Calls

Guidance as per Unit Manager

E-Recruitment

Many big life insurance organizations use Internet as a source

of recruitment. E- Recruitment is the use of technology to assist the recruitment

process. They advertise job vacancies through worldwide web. The job seekers

send their applications or curriculum vitae i.e. CV through e mail using the

Internet. Alternatively job seekers place their CVs in worldwide web, which can

be drawn by prospective employees depending upon their requirements.

Advantages of e-recruitment are:

Low cost.

No intermediaries

Reduction in time for recruitment.

Recruitment of right type of people.

Efficiency of recruitment process.


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The buzzword and the latest trends in recruitment is the E-Recruitment.

Also known as Online recruitment, it is the use of technology or the web based

tools to assist the recruitment process. The tool can be either a job website

likenaukri.com, the organizations corporate web site or its own intranet. Many big

and small organizations are using Internet as a source of recruitment. They

advertise job vacancies through worldwide web. The job seekers send

their applications or curriculum vitae (CV) through an e-mail using the Internet.

Alternatively job seekers place their CVs in worldwide web, which can be drawn

by prospective employees depending upon their requirements.

The two kinds of e- recruitment that an organization can use is

Job portalsi.e. posting the position with the job description and the job

specification on the job portal and also searching for the suitable resume

posted on the site corresponding to the opening in the organization.

Creating a complete online recruitment/application section in the

companys own website. Companies have added an application system to

its website, where the passive job seekers can submit their resumes into

the database of the organization for consideration in future, as and when

the roles become available.

Resume Scanners: Resume scanner is one major benefit provided by the jobportals to the organizations. It enables the employees to screen and filter the

resumes through pre-defined criterias and requirements (skills,

qualifications, experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to theemployees facilitating the just-in-time hiring by the organizations. Also, the


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jobs can be posted on the site almost immediately and is also cheaper than

advertising in the employment newspapers. Sometimes companies can get

valuable references through the passers-by applicants. Online recruitment

helps the organizations to automate the recruitment process, save their time

and costs on recruitments.

Online recruitment techniques

Giving a detailed job description and job specifications in the job postings to

attract candidates with the right skill sets and qualifications at the first stage.

E-recruitment should be incorporated into the overall recruitment strategy of

the organization.

A well defined and structured applicant tracking system should be integrated

and the system should have a back-end support.

Along with the back-office support a comprehensive website to receive and

process job applications (through direct or online advertising) should be

developed.


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2.4.4 Sources of Recruitment

Every organization has the option of choosing the candidates for its

recruitment processes from two kinds of sources: internal and external sources.

The sources within the organization itself (like transfer of employees from one

department to other, promotions) to fill a position are known as the internal sources

of recruitment. Recruitment candidates from all the other sources (like outsourcing

agencies etc.) are known as the external sources of recruitment.

SOURCES OF RECRUITMENT


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Internal Sources

1. Transfer: The employees are transferred from one department to another

according to their efficiency and experience.

2. Promotions: The employees are promoted from one department to another

with more benefits and greater responsibility based on efficiency and

experience.

3. Others are Upgrading and Demotion of present employees according to their

performance.

4. Retired and Retrenched employees may also be recruited once again in caseof shortage of qualified personnel or increase in load of work. Recruitment

such people save time and costs of the organizations as the people are

already aware of the organizational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled

employees are also done by many companies so that the members of the

family do not become dependent on the mercy of others.

External Sources

1. Press Advertisements: Advertisements of the vacancy in newspapers and

journals are a widely used source of recruitment. The main advantage of this

method is that it has a wide reach.

2. Educational Institutes: Various management institutes, engineering colleges,

medical Colleges etc. are a good source of recruiting well qualified

executives, engineers, medical staff etc. They provide facilities for campus

interviews and placements. This source is known as Campus Recruitment.


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3. Placement Agencies: Several private consultancy firms perform recruitment

functions on behalf of client companies by charging a fee. These agencies

are particularly suitable for recruitment of executives and specialists. It is

also known as RPO (Recruitment Process Outsourcing)

4. Employment Exchange: Government establishes public employment

exchanges throughout the country. These exchanges provide job information

to job seekers and help employers in identifying suitable candidates.

5. Labor Contractors: Manual workers can be recruited through contractors

who maintain close contacts with the sources of such workers. This source is

used to recruit labor for construction jobs.

6. Unsolicited Applicants: Many job seekers visit the office of well-known

companies on their own. Such callers are considered nuisance to the daily

work routine of the enterprise. But can help in creating the talent pool or the

database of the probable candidates for the organization.

7. Employee Referrals / Recommendations: Many organizations have

structured system where the current employees of the organization can refer

their friends and relatives for some position in their organization. Also, the

office bearers of trade unions are often aware of the suitability of candidates.

Management can inquire these leaders for suitable jobs. In some


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organizations these are formal agreements to give priority in recruitment to

the candidates recommended by the trade union.

8. Recruitment at Factory Gate: Unskilled workers may be recruited at the

factory gate these may be employed whenever a permanent worker is absent.

More efficient among these may be recruited to fill permanent vacancies.

2.4.5 Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by a

mix of various internal and external forces. The internal forces or factors are the

factors that can be controlled by the organization. And the external factors are

those factors which cannot be controlled by the organization. The internal and

external forces affecting recruitment function of an organization are:


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Internal Factors

The internal factors i.e. the factors which can be controlled by the organization are:

1. Recruitment Policy: The recruitment policy of an organization specifies theobjectives of recruitment and provides a framework for implementation

of recruitment program. It may involve organizational system to be

developed for implementing recruitment programs and procedures by filling

up vacancies with best qualified people.

Factors affecting recruitment policy

Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization.

Recruitment costs and financial implications.

2. Human Resource Planning: Effective human resource planning helps in

determining the gaps present in the existing manpower of the organization. It

also helps in determining the number of employees to be recruited and what

qualification they must possess.

3. Size of the Firm: The size of the firm is an important factor in recruitment

process. If the organization is planning to increase its operations and expand

its business, it will think of hiring more personnel, which will handle its

operations.


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4. Cost: Recruitment incur cost to the employer, therefore, organizations try to

employ that source of recruitment which will bear a lower cost

of recruitment to the organization for each candidate.

5. Growth and Expansion: Organization will employ or think of employing

more personnel if it is expanding its operations.

External Factors

The external forces are the forces which cannot be controlled by the organization.The major external forces are:

1. Supply and Demand: The availability of manpower both within and outside

the organization is an important determinant in the recruitment process.

If the company has a demand for more professionals and there is limited

supply in the market for the professionals demanded by the company, then

the company will have to depend upon internal sources by providing them

special training and development programs.

2. Labor Market: Employment conditions in the community where theorganization is located will influence the recruiting efforts of the

organization. If there is surplus of manpower at the time of recruitment, even

informal attempts at the time of recruiting like notice boards display of the

requisition or announcement in the meeting etc will attract more than enough

applicants.


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3. Image / Goodwill: Image of the employer can work as a potential constraint

for recruitment. An organization with positive image and goodwill as an

employer finds it easier to attract and retain employees than an organization

with negative image. Image of a company is based on what organization

does and affected by industry. For example finance was taken up by fresher

MBAs when many finance companies were coming up.

4. Political-Social- Legal Environment: Various government regulations

prohibiting discrimination in hiring and employment have direct impact on

recruitment practices. For example, Government of India has introduced

legislation for reservation in employment for scheduled castes, scheduled

tribes, physically handicapped etc. Also, trade unions play important role in

recruitment. This restricts management freedom to select those individuals

who it believes would be the best performers. If the candidate cant meet

criteria stipulated by the union but union regulations can restrict recruitment

sources.

5. Unemployment Rate: One of the factors that influence the availability

of applicants is the growth of the economy (whether economy is growing

or not and its rate). When the company is not creating new jobs, there is

often oversupply of qualified labor which in turn leads to unemployment.

6. Competitors: The recruitment policies of the competitors also affect the

recruitment function of the organizations. To face the competition, many a

times the organizations have to change their recruitment policies according

to the policies being followed by the competitors.


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CAREERS WITH SBI LIFE

Why Join SBI

SBI Life is a young and dynamic organization drawing its inspiration from its

parent companiesState Bank of India, one of the largest banking franchise in

India and BNP Paribas Cardif, leader in Credit Life Products.

Recently, voted as the Most Trusted Private Life Insurer in 2011 by the Economic

Times, Brand Equity and Nielsen, Most Trusted Brand Survey 2011, SBI Life hasa presence in more than 700 locations with almost 8000 employees in the country.

We put a strong emphasis on growth of an Individual in the organization through

our extensive training programmes and cross functional exposure. Our training

programmes ensure holistic development of an individual comprising not only

skills development but also, managerial and leadership programmes.

They create a work environment that promotes growth, team work, innovativeness

and challenging goals. At SBI Life, our talent management initiatives recognize

aspiring individuals providing them with opportunities to fulfill their dreams and

perform to their true potential.


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They believe the amalgamation of right environment, talented work force and

passion to excel can create growth opportunities for the organization to scale new

heights.


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CHAPTER -3

RESEARCH METHODOLOGY

3.1 Title of the Study

Recruitment Process in Insurance Company. The study is showing

recruitment process of any candidate in insurance company. This research is done

at Sikar. This study also shows why people join insurance sector.

3.2 Duration of the Project

In June 2009, I have been assigned a project on recruiting process in

insurance company with special reference to SBI Life Insurance as a part of

our course curriculum. The duration of the research is approx 30 days.

3.3 Objective of Study

The objective of the recruitment process is to obtain the number and quality

of employees that can be selected in order to help the organization to achieve its

goals and objectives. Following are other objectives of recruitment process-

1.Support the organization ability to acquire, retain and develop the best talent and

skills.2.Increase the effectiveness of various recruiting techniques

3.4 Types of ResearchI used a descriptive type of research. It is one which includes surveys and

fact finding, enquiries of different kinds. The major purpose of such research is

description of the state of affairs, as it exists at present. Methodology or process


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involving in the research followed during the course of summer training is as

follows

Collection of data:

This is an important aspect in formulating the objective of research process where

the data is collected via two process:

(i) Primary Sources and(ii) (ii) Secondary sources

i. Primary sources- Where the data is collected primarily by interviewing andpersonal observation and is original in nature and accurate to the

considerable extent.

ii. Secondary sources- Where the data is obtained from some published and

printed sources such as newspaper, magazines, and websites and so on.

3.5 Sample Size and Method of Selecting Sample

To ensure complete representation the researcher identified target responded

through a stratified random sampling process stratified the population into number

of strata and sampling respondent is selected from each stratum. The selection of

respondent from each stratum was based on simple random sampling.

I have covered 100 employees.


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1.Insurance employees

a) Unit Manager

b) Team Leader

c) Agents

2.Businessmen

a) Retail shops

b) Wholesaler

c) Family business

3.Students

a) Management students

b) Law students

4.Other Professions

a) Engineers

b) Doctors

c) Bankers


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Fig.3.1 Sample size

Sampling is a process of obtaining a number of individuals taken a base for the

entire population since entire population cannot be asked about the necessary

objective upon which a questionnaire is put forth needed for the responses to be

derived for the purpose of generation of facts and customer view point

regarding their perception of particular product or services.

There are two type of sampling-

i. Random sampling- Random sampling is a process of selecting thesample size randomly and no choice or preference to be made about

the selection of respondents for the market survey and questionnaire

to be put forth against him. Here, Random sampling being adopted by

me.

ii. Systematic sampling- It is a sampling where the limited number ofselected respondents is figured out based on some criteria so that only

those respondents can be asked for the purpose of filing questionnaire.

Sample size

Insurance

employees

Students

Businessmen


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3.6 Scope of Study

Every research is conducted to fulfill certain objectives and this objective in turn

fulfill some purpose and is of significance for one or more then one party. This

research is significant for:

3.6.1 To the student-

This study provides the student a practical insight of various activities and

functions of the company.

The will also be able to develop in depth knowledge of Human Research

sector.

The study is also required for the partial fulfillment of the requirement for

the degree of M.B.A. as per the curriculum.

3.6.2 To the company

The study would help SBI to know the Employee`s attitude towards the

company. To know the latest trend of the company.

3.7 Limitation of Study

The research area was restricted only within the Sikar city. This may not

reflect the exact position of the total market.

Sample size was also so less, limitation of time means and resource forced

for small size.

Questionnaire includes.. questions, which affects the mentality

of respondents that is time consuming.


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CHAPTER -4

FACTS AND FINDINGS

4.1 Market Survey

Category of life insurance:-

Fig.4.1 Category of life insurance

LIFE INSURANCE IS:

51

38

16

0

10

20

30

40

5060

Protection of

human asset value

against uncertainty

Tax benefit device Both

CATEGORY

RESPONSES


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Essentiality of life insurance :-

Fig.4.2 Essentiality of life insurance

Qualification for life insurance:-

Fig.4.3 Qualification for life insurance

78

27

0

10

20

30

40

50

60

70

80

NO.OF

RESPONDENTS

Yes No

RESPONSES

IS LIFE INSURANCE ESSENTIAL?

RESPONDENT'S QUALIFICATION

33%

10%

57%

Post graduate

Graduate

Senior se condary


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Age qualification for life insurance :-

Fig.4.4 Age qualification for life insurance

Causes of dissatisfaction :-

Fig.4.5 Causes of dissatisfaction

AGE QUALIFICAITON:

39%

20%

6%

35%

18-25 age group

25 35 age group

35 45 age group

Above 45 age group

CAUSES OF DISSATISFACTION

17%

16%

10%23%

34%

Low employment

Low earning / income

Low status

Huge capital investment

All of the above


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Career in life insurance :-

Fig.4.6 Career in life insurance

Life insurance is noble service or not? :-

Fig.4.7 Life insurance is noble service or not?

ABOUT CAREER IN LIFE INSURANCE

59

46

0

10

20

30

40

50

60

70

Yes NoRESPONSES

NO.OF

RESPONDENTS

86

19

0

20

40

60

80

100

NO.OF

RESPONDENTS

Yes No

RESPONSES

IS LIFE INSURANCE A NOBLE SERVICE?


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Life insurance as a career :-

Fig.4.8 Life insurance as a career

CHAPTER -5

ANALYSIS AND INTERPRETATION

Analyzing of collected data-The data collected through market survey andpublished sources are then processed to obtained necessary inferences and findingsfor the purpose of achieving the objective as well as to derive necessaryconclusion. A considerable skill and knowledge is involved in analyzing the datafor the purpose of interpreting thereof.

Interpreting of data-It is the significant step where the data collected andanalyzed is interpreted in the forms of graphs and figures is depicted in the reportcalled project report.

Summarizing of data-Thereby necessary summary is prepared which is essentialin the project report of the summer training being done under an organization.

18

41

0

10

20

30

40

50

NO.OF

RESPONDENT

Yes No

RESPONSES

ACCEPT LIFE INSURANCE AS A CAREER?


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5.1Market Survey Report Category of life insurance

Protection human asset valueagainst uncertainly 51

Tax benefits device 38

Both 16

From the survey it was drawn that life insurance is more a protectionof human asset value against uncertainty (conferred by 51 respondents) where it isa tax saving option (being accepted by 38 respondents).

Life insurance is a service involving both these prerequisites as depicted by

remaining 16 respondents.

Essentiality of life insurance.Yes 78

No 27

It has been observed and applied as a Life insurance is an essential serviceand should be applicable to every one, as favored by considerable 78respondentswhere it is not essential to an extent by 27 respondents from the summer training

project survey by putting forth the set questionnaire.

Qualification for life insurancePost graduate 35

Graduate 59Senior secondary 11

When further enquired about the qualification of respondents, it was foundthat 57% of the respondents were graduates, 33% were post graduates andremaining 10% were of higher secondary out of total 105 respondents.


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Life insurance is noble service or not?

Yes 86

No 19

Indeed Life insurance is a noble business as it provides a needful financialsupport in the situation of fatal calamity where the family is deprived by the fact tolive in future and sustains their living. When surveyed about life insurance as anoble service. 86 respondents agreed and believe that insurance is a betteringservice to human life and society as a whole where as 19 respondents showdisagreement.

Life insurance as a career?Yes 18

No 41

From the 59 respondents who agreed to know about the life insurance as acareer, 18 of them agreed to join HDFC Standard life insurance for agency andcome to the company fore more information whereas 41 still took time to think and

postponed to some future date. People are highly dissatisfied from the earning,status and living standard they are sustaining at present and would definitely like tomake some additional source of earning and for this agency for life insurancewould prove a boon.


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CHAPTER-6

SWOT

6.1 StrengthsSBI Life has a unique multi-distribution model encompassing

Bancassurance, Agency and Group Corporate. SBI Life extensively leverages theState Bank Group as a platform for cross-selling insurance products. A t presentSBI Life has over 400 branch offices in India.

We take pride in our track record of growth, financial solidity, ethicalpractices, domain expertise and meritocratic culture. Join us for a rewarding and anenriching career.

About SBI Life InsuranceBagged the most coveted personal financial services award OutlookMoney NDTV Profit Best Life Insurer 2008.

Ranks among Global Top Three at Million Dollar Round Table (MDRT).

Has been assigned IAAA rating indicating highest claims paying ability, by

ICRA, one of the Indias leading rating agencies. This rating reflects SBILifes fundamentally strong position and the prospect of meeting its

policyholders obligations as highest.

Has been reaffirmed "AAA/Stable" rating, the highest financial rating by

CRISIL, Indias leading rating agency. Last year SBI Life became the firstinsurance company to get the highest rating of AAA/Stable" from CRISIL.

This rating reflects highest financial strength to meetpolicyholder obligations.

More than 40,000 insurance advisors work with SBI Life Insurance inIndia.

SBI Life Insurance is known for qualities like trustworthiness, ambition,innovation, dynamism and excellence in its area of specialization.

The SBI Group owns more than 14,500 branches located across the countryof India.


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6.2 Weakness

1. LIC is prevalent and sustains even today a major source of population.

2. Low number of offices and network and number of life insurance agents.

3. Lack of knowledge and expertise.

6.3 Opportunities

1. Life insurance has captured its mere15 20% growth therefore a wideopen untapped market is open to the company to develop, grow and

measure its success.

2. Still the numbers of companies are few and company has every capabilityto grow and forward its performance areas to the widest.

6.4 Threats

1. People are hesitant to invest and put their hard earned money to theprivate life insurance company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobiais continue tosurmount the people of India despite lots of flaws and development andliberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, shareand securities also pose problems and threats to the working of the lifeinsurance sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are investing a bulkof their money over to that industry.


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CHAPTER7

Conclusion

Summer training is a best example for a trainee to learn about the companyworking, corporate culture under which is operating the functions. SBI lifeinsurance company under which I gained a significant knowledge with respect tolife insurance, its importance and applicability as well as undertook the task torecruit capable life insurance advisors which is conducive for the company to growwith more prosperity. What I taught in the management institute utilized themfruitfully leading to the best advantage to the company and to the best experiencefor mine .

In all Public Service jurisdictions, new approaches to recruitment are beingused. In many territories, the strategies are manual but, as automated methodsbecome more pervasive, those mechanisms that support its use will assume greaterpopularity.

Whatever the strategies selected for use, the objective is to recruit the mostqualified, committed individuals into the organizations and ensure that the

provision of government services to the public is timely and effective, that thegoods are of consistent high quality and that the organizations achieve theobjectives for which they have been established .

Life insurance is a noble service which is very important for every citizen tolearn and realize its importance because this is the only source which can remainthe status where one is with the family bread earner and ever when he is not .

With the growing financial sector I would like to opt this industry for myfuture career advancement and as an opportunity to service this industry.


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CHAPTER -8

Recommendation and Suggestions

Recommendations-

Following are suggestions made for the benefits and augmentation of thesound working of the companySBI life insurance

1.Need to train and develop life insurance agents with more comprehensiveknowledge and skills to counter every queries of the customer.

2. It is suggested that company should not left any stone unturned towardssound advertisement and promotional measures on every section whetherit is printed, media or air via radio.

3. It is also suggested that skilled management graduates need to be placeson sales and marketing of financial services that can render their bestideas for the accomplishment of the company goals and objectives to the

best extent.

4. Also, care need to be taken that every customers grievance should bemet with delight whether before purchase or after sales.

5. There should be an expansion measure for more offices and location ofmore centers for offices of the company is established sop that companymay grow its network.

6. Life insurance Products should be made flexible so as to suite verysection of society.


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Suggestions-

Following are suggestions made for the benefits and augmentation of thesound working of the companySBI life insurance:

1. Need to train and develop life insurance agents with more comprehensiveknowledge and skills to counter every queries of the customer.

2. It is suggested that company should not left any stone unturned towardssound advertisement and promotional measures on every section whether it is

printed, media or air via radio.

3. The advisors should be made aware and educated so that they can extendtheir services not only in terms of collection of premium checks from the

customer but also to educate them about the insurance and the latestnontraditional plans.

4. All the company should come out of a unit link product that should aid everyselection of the society.

5. It is also suggested that skilled management graduates need to be places onsales and marketing of financial services who can render their best ideas forthe accomplishment of the company goals and objectives to the best extent.

6. Also, care need to be taken that every customers grievance should be metwith delight whether before purchase or after sales.

7. There should be an expansion measure for more offices and location of morecenters for offices of the company be established sop that company maygrow its network.

8. Life insurance Products should be made flexible so as to suit every sectionof society.


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BIBLIOGRAPHY

Following are sources which helped me during my project

BOOKS:

KOTHARI C.R.: Research Methodology Management 3rd Edition KOTLER PHILIP: Marketing Management 11th Revised edition, 2002 GUPTA S.P.: Statistical Methods Thirteen revised edition, 2001 Kotler Philip : Marketing Management, Prentice Hall of India, New Delhi Mathew M.J. : Insurance, RBSA Publishers Jaipur Handa Sunil : Insurance, Sheel Write Well (P) Ltd., Jaipur Aswattappa : Human Resource Management India Today Business

REFERENCES:

Websiteswww.sbiindia.co.in

www.sbilife.co.in

www.google.co.in
http://www.sbiindia.co.in/http://www.sbilife.co.in/http://www.google.co.in/http://www.google.co.in/http://www.sbilife.co.in/http://www.sbiindia.co.in/

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