A Project Report

On

"Recruitment Process in Insurance

Company"

Prepare by:-

Vijay Chaturvedi
 CERTIFICATE
This is to certify that Ms. LEENA BIJARNIYA student of MBA II Year
(IIIrd Sem.) at COLLEGE OF ENGINEERING AND TECHNOLOGY,
BIKANER has completed training project report entitled
“RECRUITMENT PROCESS IN
INSURANCE COMPANY”.
The project has been completed after studying for
one year in MBA course and for partially fulfilling the requirements for
award of degree of Master of Business Administration of Rajasthan
Technical University, Kota.
The Training Project Report has been completed under the
guidance ofMr.
NARENDRA CHOUDHARY of CET and is as per norms and
guidelines
provided.
Date:
MR. NARENDRA CHOUDHARY
2
 PREFACE

“Success comes with knowledge & knowledge is comes with

training.”
MBA is a stepping stone to the management carrier and to
develop good manager. It is necessary that the theoretical must be
supplemented with exposure to the real environment. Theoretical
knowledge just provides the base and it’s not sufficient to produce a
good manager that’s why practical knowledge is needed.
Therefore the research product is an essential requirement for
the student of MBA. This research project not only helps the student
to utilize his skills properly learn field realities but also provides a
chance to the organization to find out talent among the budding
managers in the very beginning.
In accordance with the requirement of MBA course I have
summer training project on the topic “Recruitment Process in
Insurance Company” with SBI Life Insurance Ltd. The main
objective of the research project was to study the recruitment process
of financial consultants in any insurance company.
The information regarding the project research was collected
through the
questionnaire formed by me which was filled by the
customers there.
3

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Mr.

Narendra
Choudhary, HOD, Department of Management. For guiding
me right from the
inception till the successful completion of the project. I sincerely
acknowledge him for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the
moral support he had provided to me with all stages of this project.
I consider it a pleasant duty to express my heartfelt
appreciation, gratitude and indebtedness to Mr. Bhavesh Dhankani
(Sr. Branch Manager) for their keen interest, invaluable pains taking
& excellent guidance, patience, endurance, encouragement &
thoughtful advice for the project work.
I would take this opportunity to thank all my family members for
their helps & suggestions during the course of project work. I am also
thankful to all my friends who gave me constant & continuous
inspiration to complete this project.
I would also like to thank the supporting staff College of
Engineering &
Technology, Bikaner for their help and cooperation
throughout our project.
(
)
LEENA BIJARNIYA
4
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.
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 of service
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
12
about Rs. 400 crs. Life insurance is not a mere business
organization; it has nobler welfare responsibilities in the development
of the economy.
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) is 7% 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.
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
13
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. RNCOS’s 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 at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not
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 from 87.04 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.
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.
1.2.2 Report Highlights
•
Gains of liberalization in Indian insurance sector
14
•
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
1.3 Life Insurance
1.3.1 Definition
“The life insurance contract embodies an agreement in
which broadly
stated, the insurer undertakes to pay a stipulated sum upon
the death of the
insurer to a designated beneficiary.”
---J.H.MAGEE
“Life insurance contract may be defined whereby the insurer, in
consideration of premium paid either installment, undertakes to pay
an annuity on the death of the insured of a certain number of years.”
---R.S.SHARMA
“A contract of life assurance is that in which one party agrees to
pay a given sum on the happening of a particular event contingent
upon the duration of human life in consideration of immediate
payment of a smaller sum by another.”
---
BUNYON’S LAW
1.3.2 Advantages of life insurance
1. It is superior to an ordinary saving plan: this is so because
unlike other
saving plans, it offers full protection against risk of death.
15
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 CV’s 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 portals – i.e. posting the position with the job description and the
job specification on the job portal and also searching for the suitable
resumes posted on the site corresponding to the opening in the
organization.
•
Creating a complete online recruitment/application section in the
company’s 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 job portals to the organizations. It enables the employees to
screen and filter the resumes through pre-defined criteria’s and
requirements (skills, qualifications, experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes
to the employees facilitating the just-in-time hiring by the
organizations. Also, the 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.
35

•
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.
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
36
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 case of 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 othe

List of Figures:
S. No.
Title
Fig. No.
Page No.
1.
Recruitment process
Fig.2.1
26
2.
Sample size
Fig.3.1
38
3.
Category of life insurance
Fig.4.1
41
4.
Essentiality of life insurance
Fig.4.2
42
5.
Qualification for life insurance
Fig.4.3
42
6.
Age qualification for life insurance
Fig.4.4
43
7.
Causes of dissatisfaction
Fig.4.5
43
8.
Career in life insurance
Fig.4.6
44
9.
Life insurance is noble service or not? Fig.4.7
44
10.
Life insurance as a career
Fig.4.8
45
11.
Growth of life insurance
Fig.4.9
45
12.
Life insurance: public or private
Fig.4.10
46
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BIBLIOGRAPHY
Following are sources which helped me during my summer
training-
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
•
K. Aswattappa : Human Resource Management
MAGAZINES:
•
India Today
•
Business World
•
Business Economics
•
LSE’s Magazine
R EFERENCES:
•
Websites-
www.sbiindia.co.in
www.sbilife.co.in
www.irdaindia.org
www.liccouncil.org
www.businessconnect.com
www.google.co.in
www.netpnb.com
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