recruitment and selection of life insurance agent
TRANSCRIPT
Recruitment and Selection of Life Insurance Advisors at Bharti AXA LIC Ltd.
(A Project Report)
(For the partial fulfillment of the Degree of Master of Business Administration, Assam University, Silchar) Session (2010-2012)
UNDER THE GUIDANCE OF
Mr.Angshuman Das
Branch ManagerBharti AXA LIC
Silchar
SUBMITTED TO
DEPARTMENT OF BUSINESS ADMINISTRATION
ASSAM UNIVERSITY, SILCHAR
SUBMITTED BY
NABANITA DAS
REGISTRATION NO.: 10103977 OF 2007-2008
DEPARTMENT OF BUSINESS ADMINISTRATION, ASSAM UNIVERSITY, SILCHAR
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PREFACE2
Practical training is an important part of management courses.
Theoretical studies are not sufficient to get into corporate world and
understand the complexities of large-scale organizations.
People are a company’s most important assets. They can make or
break the fortunes of a business. In today’s highly competitive
business environment placing the right people in the right position is
very crucial for the success of any organization. This project however is
an attempt to share as best as possible my experience in corporate
world with all my colleagues and my faculty.
Practical training exposes us to real practices of management in the
organization. It also exposes students to the treasures of experience
knowledge and leaning which prerequisites of making a successful
career are.
I deem it privilege to have undergone this project. I acknowledge that
the practical training that I got from this cannot be gained otherwise. I
found my project very interesting and challenging.
I would be delighted to receive reader’s comments which may be
valuable lessons for my future projects.
Nabanita Das
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DBA-
JNSMS
A.U. SILCHAR
STUDENT DECLARATION
I hereby declare that study of “Process of Recruitment and
Selection of Life Insurance Advisors” has been exclusively done
by me for the degree of MASTERS OF BUSINESS ADMINISTRATION and
not for any other degree Diploma or fellowship this is my own study
done under the guidance of guide and Managers of the company.
I hereby declare that the contents of this report are true and best to
my knowledge.
Nabanita Das
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To Whom It May Concern
This is to certify that the project report entitled “The Process of
Recruitment and Selection of Life Insurance Agent “submitted for the
degree of MBA for Jawaharlal Nehru School of Management Studies,
Assam University, Silchar 17th May-30th June is a bonafide research
work carried by Nabanita Das, student of Jawaharlal Nehru School of
Management Studies, Assam University.
This assistance and help received during the course of investigation
have been fully acknowledged.
Mr. Angshuman Das
BSM, Bharti AXA LIC
Hospital Road, Silchar
Project Co- coordinator
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Executive Summary1. Introduction:
A general term ‘insurance’ is related to service sector. Insurance is concerned with the protection of economic value of assets. For example in case of a factory or a cow, the product generated by it is sold & income is generated. In this project the Bharti AXA LIC is undertaken which is one of the popular sector insurance sectors .The analysis of “Bharti AXA” is taken from different sectors. For creating strong relationship & for a successful business every insurance company required financial planner.
2. Title of the Project: “RECRUITMENT AND SELECTION OF LIFE INSURANCE AGENTS” Undertaken in Bharti AXA LIC Ltd.
3. Name and Address of the Organization : Bharti AXA LIC Insurance Ltd. Hospital rd. Silchar.
4. Organizational Guide: Mr. Angshuman Das
BSM, Bharti AXA LIC Ltd. Silchar
5. Objectives of the study: How to recruit agents for Bharti AXA Life Insurance Company Ltd. To understand the process of recruitment and selection of agent in life
insurance. Why people are not willing to work as an agent in life insurance sector
especially with private companies.
6. Need of the study:
The study is undertaken to know how people are interested to work as life insurance agent in Bharti AXA Insurance Company or about private insurance company.
7. Conclusion:
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In India, there is a heavy competition in the market of life insurance that brand service which adopt new strategies for sales. I concluding the whole story it can be said that people are aware about the aspects of life insurance & also have knowledge about the role and act of agent but there is still requirement of much more awareness about the true, real & better side of insurance.
Table of ContentsCHAPTER NO.
PARTICULARS PAGE NO.
1 INDUSTRY PROFILE 8-18
2 COMPANY PROFILE 19-34
3 RECRUITMENT & SELECTION PROCESS OF AN AGENT
35-53
4 OBJECTIVES & RESEARCH METHODOLOGY
54-57
5 DATA ANALYSIS & INTERPRETATION 58-69
6 FINDINGS,CHALLENGES,OPPORTUNITIES,SUGESTIONS
& CONCLUSION
70-73
7 BIBLIOGRAPHY 74
8 SCRIPT 75-77
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CHAPTER 1
Industry Profile
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WHAT IS INSURANCE
The business of insurance is related to the ECONOMIC VALUES OF
ASSETS. Every asset has a value. The asset would have been created
through the efforts of the owner. The asset would have been created
through the efforts of the owner. The asset is valuable to the owner,
because he expects to get some benefits from it. It is a benefit
because it meets some of needs. The benefit may be an income or in
some other form. In the case of a factory or a cow, the product
generated by it sold and income is generated. In the case of a motor
car, it provides comfort and convenience in transportation. There is no
direct income. Both are assets and provide benefits
Every asset is expected to last for a certain period of time during which
it will provide the benefits. After that the benefit may not be available.
There is a life time for a machine in factory or a cow or a motor car.
None of them will last forever. The owner is aware of this and he can
so manage his affairs that by the end of that period or life time, a
substitute is made available. Thus he makes sure that the benefit is
not lost. However, the asset may get lost earlier. An accident or some
other unfortunate event may destroy it or make it incapable of giving
the benefits. An epidemic may kill the cow suddenly. In that case, the
owner and those enjoying the benefits therefore, would be deprived of
the benefits. The planned substitute would not have been ready. There
is an adverse or unpleasant situation. Insurance is a mechanism that
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helps to reduce the effects of such adverse situation. It promises to
pay to the owner or beneficiary of the asset a certain sum if the loss
occurs.
HISTORY OF INSURANCEInsurance has been known to exist in some form or other since 3000 BC. The Chinese traders, traveling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost would be partial and shared, and not total. The Babylonian traders would agree to pay additional sums to lenders, as the price for writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of general average of ‘general average; whereby, if goods are shipped together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning during distress. {Captains of ships caught in storms, would throw away some of the cargo to reduce the weight and restore balance. Such throwing away is called jettisoning} The Greeks had started benevolent societies in the late 7th century AD, to take care of the funeral and families of members who died. The great fire of London in 1666, in which more than 13000 house were lost, gave a boost to insurance and the first fire insurance company, called the fire office, was started in 1680.The origins of insurance business as in vogue at present, is traced to the Lloyd; s Coffee House in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas of because of bad weather spoiling goods or sinking the ship. In India, insurance began in 1818 with life insurance Co. in 1870 in Mumbai. This was followed by the Bharat insurance co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai. The United India IN Chennai, the National, the National Indian and Hindustan Cooperative in Kolkata.
Later, were established the cooperative Assurance in Lahore, the Bombay Life (originally called the swadeshi life), the Lakshmi in New Delhi. These wear all Indian companies started as a result of the
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swadeshi life), the India Mercantile, the new India and and the Jupiter in Mumbai and Lakshmi in New Delhi. These were all India companies started as a result of the swadeshi movement in the early 1900s. By the year 1956, when life insurance business was nationalized and the life Insurance Corporation of India (LIC) was formed on1st September 1956, there 170 companies and 75 provident fund societies transacting life business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life insurance business in India. By 31.8.2007, sixteen new life insurers had been registered and were transacting life insurance business in India.
THE HISTORY OF INSURANCE IN INDIA
Some of important milestones in the life in the insurance business in India are:
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 life and non-life insurance businesses.
1938 - Earlier legislation consolidated to by the insurance Act
with the objective of protecting the interests of the
insuring public.
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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.
The General insurance business in India on the other hand can trace its roots to the Triton Insurance Company Ltd the first general insurance company established in the year 1850 in Calcutta by the British.
LIFE INSURANCE - A BASIC NEED
Life insurance is a contract providing for payment of a sum of money
to the person assured or, failing him, to the person entitled to receive
the same on the happening of certain event.
A family is generally dependent for its food, clothing and shelter on the
income brought in at regular intervals by the bread winner of family.
So long as he lives and the income is received steadily, that family is
secure; but should death suddenly intervene the family may be left in
a very difficult situation and sometimes in stark poverty.
Uncertainty of death is inherent in human life. It is this uncertainty that
is risk, which gives rise to the necessity for some form of protection
against the financial loss arising from death; insurance substitutes this
uncertainty by certainly.
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Few advantages of Life Insurance.
1. It is superior to an ordinary savings plans:
This is so because unlike other saving plans, it affords full protection
against risk of death. In case of death, the full sum assured is made
available under a life insurance policy; whereas under other savings
schemes the total accumulated savings alone will be available. The
latter will be considerably less than the sum assured, if death occurs
during early year.
2. Insurance encourages and forces thrift:
A savings deposit can be too easily withdrawn. Many may not be able
to resist the temptation of using the balance for some less worthy
purpose. On the other hand the payment of life insurance premiums
becomes a habit and comes to be viewed with the same seriousness as
the payment of interest on a mortgage. Thus insurance, in effect brings
about compulsory savings.
3. Easy settlement and protection against creditors:
The life assured can be name a person or persons to whom the policy
moneys would be payable in the event of his death. The proceeds of a
life insurance policy can be protected against the claims of the
creditors of the life assured by effecting a valid agreement of the
policy. A married women’s property act policy constitutes a trust in
favor of the wife and children and no separate assignment is
necessary. The beneficiaries are fully protected from creditors except
to the extent of any interest in the policy retained by the assured.
4. Administering the legacy for beneficiaries
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If often happens that a provision which a husband or father has made
through insurance is quickly lost through speculative or unwise
investment or by unnecessary expenditure on
Luxuries these contingencies can be provided against in the case of
insurance the policyholder can arrange that in the in the event of his
death the beneficiary should receive instead of a single sum (A)
payment of the claim amount by installments over a specified period of
years or (b) payment of the claim amount by smaller monthly
installments over the selected period followed by a lump sum at the
end thereof
5. Ready marketability and suitability for quick borrowings
After an initial period if the policy holder finds himself unable to
continue payment of premiums he can surrender the policy for a cash
sum Alternatively he can tide over a temporary difficulty by taking loan
on the sole security of the policy without delay Further a life insurance
policy is sometimes acceptable as security for a commercial loan
6. Tax relief:
For computing income tax (especially in India the Indian income tax act) follows deduction from income tax payable a certain percentage of a portion of the taxable income of individuals which is diverted to payment of a insurance premiums When this Tax relief is takes into account it will be found that the assured is n effect paying a lower premium for sis insurance.
HOW INSURANCE WORKS
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The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of the members suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ship are exposed to the same risk related to water damage, ship sinking, piracy, etc. those owning factories are not exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms, earthquakes, lightening, burglary, etc. like this, different kinds of risks can be identified and separate groups, made including those exposed to such risks. By this method, the risk is separated among the community and the likely big impact on one is reduced to smaller manageable impacts on all.
If a Jumbo Jet with more than 350 passenger’s crashes, the loss would run into several crores of rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an insurance pool, whenever one of the Jumbo Jets in the pool crashes, the loss to be borne by each airline would come down to a few lacks of rupees. Thus, insurance is a business ‘SHARING’.
ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT
For economic development, investments are necessary. Investments are made out of savings. A life Insurance company is a major instrument for the mobilization of savings of people, particularly form the middle and lower income groups. These savings are channeled into investments for economic growth.
An insurance company’s strength lies in the fact that huge amounts come by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast
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amounts represent pooling of risks. The funds are collected and held in trust for the policyholders.
The management of Insurance companies is required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investment. This is why successful Insurance companies would not be found investing in speculative ventures. Their investment benefit the society at large
The system of Insurance provides numerous direct and indirect benefits to the individual and his family as well as to industry and commerce and to the community and the nation as a whole. Those who insure, both individuals and corporate, are directly benefited because they are protected from the consequences of the loss that may be caused by the accident or fortuitous event. Insurance, thus, in a sense protects the capital in industry and releases the capital for further expansion and development of business and industry.
The every existence of risk is, uncertainty concerning the future, is a severe handicaps in economic activities. Insurance removes the fear, worry and anxiety associated with this future uncertainty and thus encourages free investment of capital in business enterprises and promotes efficient use of existing resources.
Thus insurance encourages commercial and industrial development and there by contributes to a vigorous economy and increased national productivity.
Present day organization of industry, commerce and trade depend entirely on insurance for their operation, banks and financial institutions lend money to industrial and commercial undertakings only on the basis of the collateral security of insurance. No bank or financial institution would advance loans on property unless it is insured against loss or damage by insurable perils.
Insurers are closely associated with several agencies and institutions engaged in fire loss prevention, cargo loss prevention, industrial safety and road safety. Before acceptance of a risk,
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insurers arrange survey and inspection of the property to be insured, by qualifies engineers and other experts.
The object of these surveys is not only to assess the risk for rating purposes but also suggest and recommend to the insured, various improvements in the risk, which will attract lower rates of premium and what is more important, reduce the loss potential. For example, burglary surveyors make recommendation in regard to security measures such as better locking system, appointment of Watchman, etc. Engineers surveys play a most useful part in accident prevention as valuable technical advice is provided in respect of plant and machinery.
Insurance ranks with export trade, shipping and banking services as earner of foreign exchange to the country. It helps to earn foreign exchange and represent invisible exports.
LIST OF INSURANCE COMPANIES LISTED IN DIFFERENT YEARS
List Of Life Insurance Companies
Sl.No. Registration Date of Reg. Name of the Company
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Number
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd
2 104 15.11.2000 Max New York Life Insurance Co. Ltd
3 105 24.11.2000 ICICI prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Co.Ltd
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance company Limited
8 114 02.08.2001 ING Vysya Life insurance company private Ltd.
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 03.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life insurance Company Ltd.
12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
13 102 23.10.2000 Royal Sundaram Alliance insurance Company Ltd
14 103 23.10.2000. Reliance General Insurance Company Limited
15 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd.
16 108 22.01.2001 TATA AIG General Insurance Company
17 113 02.05.2001 Bajaj Allianz General Insurance Company Limited
18 115 03.08.2001 ICICI Lombard General insurance Company Ltd.
19 131 03.08.2007 Apollo DKV insurance Company Limited
20 132 04.09.2007 Future general India insurance Company limited
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21 134 19.11.2007 Universal Sompo General Insurance Company Ltd
22 121 03.01.2002 Reliance Life insurance Company Ltd
23 122 14.05.2002 Aviva Life Insurance CO. India Pvt. Ltd
24 127 06.02.2004 Sahara India Insurance Company Ltd
25 128 17.11.2006 Shriram Life Insurance Company Ltd.
26 130 14.07.2006 Bharti AXA Life Insurance Company Ltd
27 133 04.09.2007 Future General India Life Insurance Company Ltd
28 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd
29 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd
30 138 27.06.2008 Aegon Religare Life Insurance Company Ltd
31 104 27.06.2008 DLF Pramerica Life Insurance Company Ltd
List Of General Insurance Companies
1 123 15.07.2002 Cholamandalam General Insurance Company Ltd
2 124 27.08.2002 Export Credit Guarantee Corporation Ltd
3 125 27.08.2002 HDSC-Chubb General Insurance Co. Ltd
1 139 .27.06.2008 Bharti Axa General Insurance Company Ltd
2 141 15.12.2008 Raheja QBE General Insurance Co. Ltd
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CHAPTER 2
Company Profile
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Bharti AXA Life Insurance Company is a joint venture between Bharti, one of India s leading Business groups with interests in telecom, agric 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 company have over 800 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance to the large Indian customer base Open first branch office in Hyderabad Introduces 2 unit linked products- “future confident” and “wealth confident”.
As we further expand our presence across the country with a large network of distributors we continue to provide innovative product and service offering to cater to specific insurance and wealth management needs of customers. Whatever your plans in life you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them
Moreover Bharti AXA LIC has :-
183 Branches all over the World
25000+Life Advisors
10+ Distributors
6000+Employees
10 products & 2 Riders
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These are the three attitudes that clients most expect from an insurance and financial services company in exchange for their vote of confidence. These three attitudes stood out from the others in the consumer research we conducted across markets, regardless of their
level of maturity.
“They are at the heart of our actions and our commitments to clients”.
Bharti AXA LIC Ltd.
Vision
To be a leader and the preferred company for financial protection and wealth management in India
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Strategy To achieve a top 5 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
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Values
Professionalism
Innovation
Integrity
Team Spirit
Pragmatism
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
BHARTI GROUP
Bharti Airtel Ltd
Bharti Airtel Ltd is one of Asia’ s leading telecommunications service provider. The Company is India s largest integrated telecom company in terms of customer base and offers Mobil Services, Fixed Line Services, & IPTV, DTH, Long Distance and Enterprise Services. Airtel also offers mobile services in Sri Lanka on a state-of the art 3.5 G network.
Bharti Tele Tech Ltd
Bharti Teletech is India’s leading telecom & allied products company it
is one the largest manufacturers of landline telephones in the world
with a strong distribution network across the country the company is
also the primary distributor of IT and Telecom products from
international brands such as Motorola Blackberry Thomsom Polycom
Transcend and Logiteech
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Telecom Seychelles Ltd
A subsidiary of Bharti Telecom Seychelles Ltd provides comprehensive
telecom services including 3G mobile services in Seychelles under the
Airtel brand
Comviva Technologies Ltd
Comviva is the leading provider of integrated VAS solutions for mobile
operators in emerging markets. Among the top 3 global providers of
integrated VAS solutions in rapidly growing markets, Comviva has
deployed solutions for over 100 mobile operator customers in over 80
countries worldwide.
Field Fresh Foods Pvt. Ltd.
Field fresh Foods Pvt. Ltd., is a venture between Bharti Enterprises and
Del Monte pacific limited to offer fresh and processed fruits and
vegetables in the domestic well as international markets including
Europe and the Middle East
Bharti Retail Pvt. Ltd
Bharti Retail is a wholly owned subsidiary of Bharti enterprises Bharti
retail operates a chain of multiple format stores the offer consumers
affordable prices great quality and wider choice the company s
neighborhood format stores operate under the easy day brand and the
compact hypermarket format under the Easy day market brand.
Bharti AXA General Insurance Company
Bharti AXA General Insurance is a joint venture between Bharti
Enterprises and AXA world leader in financial protection and wealth
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management. The company offers a range of life insurance and wealth
Management products with an endeavor to help customers lead a
confident life.
Bharti AXA Life Insurance Company
Bharti AXA General Insurance is a joint venture between Bharti
Enterprises and AXA world leader in financial protection and wealth
management. The company ofers a range of life insurance and wealth
management products with an endeavor to help customers lead a
confident life.
Bharti AXA Investment Managers Pvt. Ltd.
Bharti AXA Investment Managers Pvt. Ltd an asset management company in India is a joint venture between Bharti Enterprises AXA Investment Managers (AXAIM) and AXA Asia Pacific Holdings (AXAAPH)
Centum Learning Limited
Centum Learning Limited provides end-to-and learning and skill-
building solutions to several large corporate it provides solutions the
impact business performance through enhanced employee productivity
customer profitability and effective talent transformation.
Jersey Airtel Ltd
Jersey Airtel a subsidiary of Bharti Offers-world-class mobile services in
jersey (Channel Islands) over its 2G, 3G and HSDPA enhanced network.
The company brings market-leading products and services to its
customers under Airtel –Vodafone brand.
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Bharti Foundation
Bharti Foundation was swept up in2000, with the vision to help
underprivileged children and young people of our country realize their
potential it aims to create and support programs that bring about
sustainable changes through education and support programs that
bring about sustainable change education and the use of techno logy
and information
Bharti Realty
Bharti Realty Limited is a young, vibrant and dynamic realty company
with expanding interests in commercial retail and residential real
estate Bharti Realiy aims to be amongst the most admired real estate
players in India and aspires to attain highest degree
How to recruits agent for Bharti-AXA life insurance
To know about the view of general public about the job of agent
Why people are not willing to work with as an agent especially with private player.
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Facts about AXA
AXA group was originally founded in 1816 as Mutuelle de L’assurance contre L’incendie (the Ancienne Mutuelle). AXA is world’s leading financial service provider with presence across 5 continents in 57 countries, including Australia, New Zealand, Hong Kong, China, Singapore, Thailand, Indonesia etc. Moreover, AXA has more than 96 million clients worldwide, No. 9 on the Global Fortune 500, 2.16.095 employee base worldwide.
A US-based subsidiary of French insurance giant AXA, AXA Financial provides financial advisory and insurance services through subsidiaries such as AXA Equitable, AXA Advisors, and AXA Distributors. The units offer life insurance, annuities, mutual funds, separate accounts, and other investment products to individuals, small businesses, and professional organizations. Its investment management business is anchored by majority-owned affiliate Alliance Bernstein and serves institutional and retail clients, including high-net-worth individuals. AXA Financial and its subsidiaries have approximately $575 billion in assets under management, most of it at Alliance Bernstein.
Officers: Chairman: Henri de CastriesPresident, CEO, and Director; Chairman and CEO, AXA Equitable: Mark PearsonEVP and CFO; SEVP and CFO, AXA Equitable: Richard S. Dziadzio
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NEW ARENA OF BHARTI AXA LIC
Reliance Industries Limited to acquire Bharti’s stake in the insurance Joint-Ventures with AXA in India
AXA, Bharti Enterprises (“Bharti”) and Reliance Industries Limited (RIL) announced today having reached an understanding on the acquisition by RIL and its associates Reliance Industries Infrastructures Limited (“RIL”) of Bharti’s shareholding of 74% of Bharti AXA Life Insurance Co. Ltd (“Bharti AXA Life”) and Bharti AXA General Insurance Co. Ltd.(“Bharti AXA GI”).
This transaction is subject to negotiation and entering into legally binding agreements between RIL, RIIL and AXA and obtaining necessary approvals from IRDA and other relevant/applicable approvals.
On completion of the proposed transaction, RIL & RIIL would effectively own respectively 57% & 17% in both insurance companies and would become AXA’s joint venture partners in India. AXA would retain its current 26% shareholding and would continue to manage the day to day operations of the JVs.
The proposed agreement contemplates an option by which AXA would acquire from RIL & RIIL up to 24% shareholding in both the insurance companies in accordance with the applicable regulations as when the FDI regulations permit such holding by AXA. Upon exercise of such option, RIL will effectively own 45%, RIIL will effectively own 5% and AXA the balance 50% in both the insurance companies.
RIL & AXA will join forces to create market leading Life & General Insurance business in India by leveraging their respective strengths & expertise.
In fiscal year 2011, Bharti AXA Life collected premiums of INR 7.9 billion (or ca. Euro 132 million) & Bharti AXA GI collected gross direct premiums of INR 5.5 billion (or ca. Euro 92 million). In the recently concluded India Insurance Awards organized by Indian Insurance Review in conjunction with Celent, the General Insurance entity was rewarded with Personal Lines Growth Leadership Award for 2011.
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PRODUCTS OF BHARTI AXA LICBHARTI AXA LIFE AAJEEVAN ANAND
Key features/ Benefit
-Life insurance/ Maturity benefit Life cover (sum assured) is paid in case of unfortunate event of death or on maturity.-Get Regular Income Guaranteed Anticipated Benefit: 25% of the sum assured is paid every 5 years starting from the end of 10th policy year till maturity or death(whichever is earlier) as guaranteed regular payouts. Annual Cash Bonuses: this policy participates in the performance of the participating insurance fund and surplus (if any), is distributed as bonuses. This policy is not eligible for any bonuses during the first 5 policy years. Bonuses (if declared) are payable from end of 6th policy year onwards till maturity or death, whichever is earlier.
Product at a glance
Parameter Eligibility criteria Minimum age at entry 91 daysMaximum age at entry 60 yearsPremium payment term options available
10 years to 15 years
Minimum sum assured Rs 50,000Minimum premium Rs5325 for annual mode
Rs 2769 for semi annualRs 1438 for quarterly modeRs 479 for monthly mode
Premium payment modes Annual, semi annual, quarterly and monthly
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BHARTI AXA LIFE PROTECT PLUS
Key features/ Benefits- Life Insurance Benefit
The life insurance benefits are provided by the sum assured in the product. In case of the unfortunate event of death of the life insured, the policy holder or the nominee, as the case may be, will be entitled to receive the sum assured, after which policy will cease to exist.
Maturity Benefit Along with the life insurance benefit, Protect PLUS offers you cash back in case of maturity of the policy.
Product at a Glance
Parameter Eligibility criteriaMinimum age at entry 8 yearsMaximum age at entry 60 yearsMaximum age at maturity 70 yearsMinimum sum assured The minimum sum assured is depend
on the premium chosen and age at entry.
Premium rate(per ‘000 SA) The premium rates are as under:Age at entry(in years)
Annual premium(per ‘000 SA)
8-35 2536-40 4041-45 5046-50 6051-55 7556+ 90
Policy term 10 yearsPremium paying term 5 years
Premium modes Annual, semi annual, quarterly and monthly
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BHARTI AXA LIFE BRIGHT STARS POWER PLUS
This comprehensive solution combines the advantages of three products of Bharti AXA Life as follows:
Bharti AXA Life Bright Stars EDGE: Under this product in case of unfortunate event of death, the Sum Assured is paid out immediately. The Sum Assured under the policy will be 20 times the annual premium chosen.
Bharti AXA Life Premium Waiver Rider: In case of an unfortunate death of the Life Insured, all the futures premiums of Bharti AXA Life Bright Stars EDGE are waived off and Bharti AXA Life would pay them on our behalf.
Bharti AXA Life Family Income Secure: In case of an unfortunate death of the Life Insured, the Annual income chosen at inception will be payable every year for the next 20 years from the date of death irrespective of the policy term. On maturity, we will return 100% of the total premiums paid (towards Bharti AXA Life Family Income Secure) during the benefit term.
Product at a Glance
Parameter Eligibility CriteriaProduct Bharti AXA
Life Bright EDGE
Bharti AXA Life Premium Waiver Rider
Bharti AXA Life Family Income Secure
Policy term options available 10 years, 15 years and 20 yearsMinimum age at entry 18 yearsMinimum age at entry 60 yearsMinimum age at entry 70 years for 10 year term
75 years for 15 year term80 years for 20 year term
Minimum premium(rs per annum)
As per the minimum premiums mentioned in the individual sales brochures.
Premium Payment Modes Annual, semi annual, quarterly & monthly
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BHARTI AXA LIFE FAMILY INCOME SECURE
Family income secure is a simple, long term and affordable insurance planning that offers return of premium on maturity. The product works as follows:
You choose the annual income benefit at inception (subject to be specified minimum amount). Once annual income is chosen, it will remain unchanged throughout the policy term. The available policy terms are 10, 15, & 20 years.You pay the premium (base policy premium) regularly as per the mode of premium payment chosen by you.In case of the unfortunate event of death of the life insured during the policy term, the company shall pay the Annual income to the nominee for 20 years from the date of death.
Product at a Glance
Parameter Eligibility CriteriaPolicy term options available 10 years, 15 years & 20 yearsPremium payment term Same as policy term chosenMinimum age at entry 18 yearsMaximum age at entry 60 yearsMaximum age at maturity 70 years for 10 years term
75 years for 15 years term80 years for 20 years term
Minimum premium Rs 2500 for annual modeRs 1250 for semi annual modeRs 625 for quarterly modeRs 208.33 for monthly mode
Premium payment modes Annual, semi annual, quarterly and monthly
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BHARTI AXA LIFE WONDER YEARS RETIREMENT PLAN
Bharti AXA Life Wonder Years Retirement Plan is a regular premium plan. Choose your plan option and Guaranteed Retirement Amount at inception of the policy.
Plan options: you have the flexibility to choose from the two plan options available:
a) Vesting age at 60 years: this option is apt for you if: Your age is between 18 to 45 years Plan to vest at the age of 60 years You plan to invest at least Rs 12,000 p.a. for your retirement You are willing to pay premiums till the vesting age
b) Vesting term is 10 years: this plan is apt for you if: Your age is between 40 to 70 years Plan to vest in the next 10 years You plan to at least Rs 20,000 p.a. for your retirement You are willing to pay premiums for 10 years
Product at a Glance
Parameter Eligibility CriteriaPolicy term options 60 years less age at entry for policy
term to age 60 10 years for a fixed policy term of 10 years
Minimum age at entry 40 years (10 year policy term)18 years (to Age 60 policy term)
Maximum age at entry 70 years (10 year policy term)45 years (to Age 60 policy term)
Premium payment term Same as policy termMinimum premium Rs 20,000 for 10 years policy term
Rs 12,000 for to age 60 policy termPremium payment modes Annual, semi annual, quarterly &
monthly
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Bharti AXA Life launches 2 products:
Private sector Bharti AXA Life Insurance today announced the launch of two products - a retirement plan and a child protection plan.
While the retirement plan - Bharti AXA Life Wonder Years Retirement Plan - will be a traditional product and offer combined benefits of guaranteed returns and life insurance cover.
The child plan - Bharti AXA Life Bright Stars Power Plus - would have the features that protects and build savings for the child's key life stages.
"Both the products are based on extensive consumer research and hence address the needs highlighted by customers. They have been specifically designed to provide returns at the key life stages," Bharti AXA Life Chief Marketing & Operations Officer Mark Meehan said.
Bharti AXA Life Insurance is a joint venture between Bharti Enterprises and AXA. While Bharti Enterprises hold 74 per cent stake in JV, the remaining 26 per cent is held by AXA Asia Pacific Holdings Ltd (APH).
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CHAPTER 3
INTRODUCTION TO THE PROCESS OF
RECRUITMENT AND SELECTION OF AGENTS
36
OBJECTIVES OF THE STUDY
How to recruit agents for Bharti AXA LIC. To know about the view of general public about the job of an
agent. Why people are not willing to work with as an agent,
especially with private players.
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MEANING OF RECRUITMENTFinding the right people is a make-break factor for success in business
today Recruiting the top talent for a job takes time and you have to
attract quality candidates who have the knowledge and skills needed
to help your company grow.
The fact is, your success with recruitment depends on how well you
prepare your job ad, and use source of recruitment, and your
interviewing skills.
Prepare a job ad that works to start, you want to be sure that your
potential candidate truly understands the job. The clearer you are with
the task description, working conditions and advantages, the less time
you will waste examining and rejecting applications
The essentials of any job description are:
a brief description of your company
Detailed outline of the tasks involved
Qualifications and experience required
Equipment and resources used to do the work
Skills required using them
However, you should also include work benefits (e.g., vacation, travel
and perks), general working conditions (e.g., scheduling, outside work)
and the specific traits required (e.g., Teambuilding and
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communications skills) ultimately you want to be perceived as an
attractive employer in a competitive market
Find the right recruitment vehicle choose the vehicle that best works for your company depending on your budget and resources.
Word of mouth, or simply telling your employees, friends and colleagues about a job opening, is a less expensive strategy but generates fewer candidates. The advantage is that you already know something about your recruits and their skills, knowledge and achievements. This is a preferred method with companies that have a finder’s fee program for their employees.
Advertising is a toss of the dice. If it goes well, it can help you find ideal candidates in a regional, national or international pool. If not, it’s a costly investment yielding few results. Make sure to factor in the time it takes to go through a large number of resumes.
Employment agencies cost more but generally provide a good range of candidates. The employment advisors look at your needs, screen a number of candidates, and only send you the applications that meet your requirements. Bear in mind that the largest employment agencies do not necessarily offer the best choice of candidates. There are numerous agencies that specialize in recruitment in specific sectors.
Recruiting online such as monster.com, workopolis.com, and jobboom.com. These can provide inexpensive, worldwide access to employees. In fact, 65% of job seekers now have access to these types of services. Using the internet for recruiting usually involves regular visits to specialized recruitment sites, joining newsgroups, and posting your job openings on recruitment sites, electronic publications and so your own Web site.
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After recruitment the next part is selection of best candidates.
MAKE THE INTERVIEW DELIVERSince the purpose of an interview is to identify and verify the candidate’s potential, it should be structured to during out all the desired competencies. Remember that you have to decide between the candidates: you could create a point system or analysis grid for comparing their strengths and weaknessesHere are a few points to consider when structuring an interview:
Make a list in advance of the point for discussion and corresponding questions
Present the candidates with a situation they could face on the job and ask them how
they would react This Will enable you to evaluate the candidates knowledge skills and work methods.
Ask the candidates to describe some difficult situations encountered in previous jobs and to explain the way in which they were resolved this will give you the chance to gauge the candidates self –confidence, creativity and problem-solving skill.
Ask the candidates to describe a difficult situation involving colleagues and how it was resolved this will enable you to test their aptitude for teamwork
Ask the candidates about their ambitions and plans to ensure they fit your company profile
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Beware of asking questions about personal interests. They can get the
interview off track or annoy people who want to keep their work and
private lives separate.
WHO IS AN AGENT?According to section 182 of Indian contracts Act, an” agent “is a person employed to do any act for another or to represent another in dealing with a third person In the insurance industry, the term agent” is ordinarily applied to a person engaged by the insurance industry, the term “agent “is ordinarily applied to a person engaged by the insurer to procure new business. The insurance Act definers and insurance agent as one who is licensed under Section 42 of that act and is paid by way of commission or otherwise, in consideration if his soliciting insurance business, including business relating to the continuance, renewal or revival of policies of insurance. He is, for all purposes, an authorized salesman for insurance and needs a license.
An agent is one who acts on behalf of another the “another” on whose behalf the agent acts, is called the principal in this case The insurance company is the principal in the case. The lawyer is the agent of the client, when he argues the case in court. An ambassador is an agent of his country. The agent as ‘advisers’, consultants “etc on his behalf. Some insurers designate their agents as ‘advisers,”” consultants “etc. as if they are independent advisor or consultant would not be approached for advice or consultation. Some insurance agents may acquire that status. All insurance agents should strive to attain that status.
An agent is one who acts on behalf of another the “another” on whose behalf the agent acts, is called the principal in this case The
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insurance company is the principal in the case. The lawyer is the agent of the client, when he argues the case in court. An ambassador is an agent of his country. The agent as ‘advisers’, ” consultants “etc on his behalf. Some insurers designate their agents as ‘advisers,”” consultants “etc. as if they are independent advisor or consultant would not be approached for advice or consultation. Some insurance agents may acquire that status. All insurance agents should strive to attain that status.
HOW TO BECOME AN AGENT
The Insurance Act, 1938 lay down that an insurance agent must
possess a lice under Section 42 of that act. The license is to be issued
by the IRDA .The IRDA has authorized designated persons, in each
insurance company – to issue the licenses on behalf Of the IRDA In
terms of the Insurance Act; license will not be given if the person is:(a) Minor
(b) Found
(c)Found guilty of criminal misappropriation or criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence
(d) Found guilty of or knowingly participation in or conniving at any fraud, dishonesty or misrepresentation against an insurer or an insured
(e) Not possessing the requisite qualifications and specified training
(f) Found violating the code of conduct as specified in the regulations.
(g) The fee for a license is Rs.825 for individual. A license is granted for 3 years. It may be renewed after 3 years and again valid for 3years.
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A license issued by the IRDA may be to act as an agent for a life
insurer, for a general insurer as a composite insurance agent working
for a life insurer as sell as a general insurer or as a composite
insurance agent working for a life insurer as sell as a general insurer.
No agent is allowed to work for a life insurer or more than one general
insurer.
The Qualifications necessary before a license can be given are that the
person must be(a) Not a minor
(b) Have passed at least the 12th standard or equivalent examination, if he is to be appointed in a place with a population of 5,000 or more. (10th standard otherwise.)
(c)Have undergone practical training for at least 50 hours in life or general insurance business, as the case may be, form an institution, approved and notified by the IRDA. IN the case of a person wanting to become a composite insurance agent, the applicant should have completed at least 75 hours practical training in life and general insurance business, which may be spread over six to eight weeks.
d) Have passed the pre-recruitment examination conducted by the insurance institute of India or any other examination body authorized by the IRDA. The license once issued, can be cancelled whenever the person acquires a disqualification. Applications for renewal have to make at least thirty days before the expiry of the license, along either the renewal fee of Rs.250. If the application is not made at least thirty days before the expiry, but is made before the date of expiry of license, an additional fee of Rs.100 is payable. If the application is made after the date of expiry, it would be normally being refused.
Prior to renewal of the license, the agent should have completed at least 25 hours practical training in life or general insurance business or at least 50 hours practical training in life and general insurance business in the case so a composite insurance agent.Insures who select agents for appointment, make arrangements for training, for appearing in the prescribed examinations, and obtaining the license.
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Note:The insurance Act provides, In Section 44, for payment of commission on renewal premium even after termination of the agency. The commission will be limited to a rate not exceeding 4%, to be eligible for this; the agent should have been an agent with that insurer for at least:
i) five years and policies for at least Rs. 50000 are in force one year before termination of agency or,
ii) 10 years
This commission will be payable to their heirs of the agent after the agent’s death.
FUNCTION OF AN AGENTUnderstanding the prospect’s needs and persuade him to buy a plan of life insurance that suits his interests best.
Complete the formalities: - paper work, medical examination, which are necessary to get the policy expeditiously.
Keep in touch to ensure that changing circumstances are reflected in the arrangements relating to premium payments, nomination and other necessary alterations.
Facilitate quick settlement of claims.
be totally honest with both the prospect and the insurer.
not to induce prospects to submit wrong information.
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CAREER WITH BHARTI AXA Opportunity to earn unlimited income.
Career growth.
Be your own boss.
High quality Training & Support to improve productivity.
Compensation amongst the best.
Club member benefits’: (Acer’s club, Director’s club, & CEO’s club).
Payout structured to facilitate your cash flows better.
Best in class & competitive products.
Pension for life.
National & International Contests and Conventions.
Bharti AXA Life Insurance Learning University, a unique initiative which offers two levels of certification, “Master & Grand Master”.
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Recruitment Process
46
Develop a Profile
Develop sources of recruitment
Approaching the targeted recruits
Initial screening and Interviews
Reality check
SOURCES OF RECRUITMENT
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Controlled Uncontrolled
Natural Market
Centre of influence
Agent Referral
Job ads/Inserts
Placement Consultants
Presentation/Seminars
Cold Prospecting
CONTROLLED MARKETNatural Market
Your Family
Your Friends
People at job/business
Neighbors
Extended Natural Market
The following are sources of names:
People know through children.
People know through spouse.
People know through hobbies/games.
People know through social groups.
People know through public service.
People you do business with.
Friends of friends.
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Data Base
Primary Secondary
Centre of InfluencePeople with influence and prestige, other member of society believe and faith on them.
People who have a big circle of relationships: like secretary in societies, president of and association.People who are known to you and are willing to help you.People who have contacts with the class of people you want to deal with.People who have faith in your relationship.A centre of influence is a person who is in contact with many people through social, political, religious or business angulations.Usually a respected individual with influence over the people with him/her is in contact.
UNCONTROLLED MARKETJob Ads/InsertsThis program should be on regular long range basis.
Example : Navajeevan Sharma who is a relationship officer in Bharti AXA Life Insurance Company put an advertisement in the newspaper, in which he called for the Reader to phone him during a specified 2 to 4 hours period on Monday or Sunday morning.From those who called Navajeevan Sharma was able to eliminate more misfits (who are not qualified) and arrange for two to six personal visits.
Placement Consultants
MOA can recruit a placement consultant or register himself in internet job search sites to get list of prospects.Seminars/Job FairsManager of agency can also organize seminars at management institutes and colleges.
‘OR’
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Bharti AXA Life Insurance Company participates in the job fairs and then shortlist prospects and then looks for further opportunities for them.Cold Prospecting
MOA can use the telephone directory.
MOA and Telecaller can use the directories of various business and social organizations.DatabasePrimary Data: Direct collection of data of from the source of information, technology including personal interviewing, survey etc.
Secondary Data: Indirect collection of data from sources can be purchased from the open market and various kinds of database are available such as telephone databases of various surveys.
POINT TO BE NOTED WHILE RECRUITING THE AGENTS
Mature and responsible family person.
Ambitious, eager for recognition, challenges.
Occupation.
Experience and current designation.
Tenure of stay in the city.
Money motivated persons.
Occupation of parent.
Family income.
Experience in financial sectors.
Leadership qualities.
Social and amiable.
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Sources For Recruitment and Selection of Agent
Used During Training
TELEPHONE SCRIPT
Hello Sir,
I am Nabanita Das from Bharti AXA. I want your few minute to speak.
Sir, Bharti AXA is going to expand the Business by recruiting quality
people and offering them the potential of a very rewarding career
opportunity.
We have acquired your business card and we are aware of the
company you work for and you are one of the selective person with
whom our company want to concern. So I would like to meet you for
coffee to explain the exciting and rewarding opportunity. It may have
for you in terms of career compensation and support.
(Excellent I look forward to meeting you , please may I have your
address and I will confirm our meeting in writing) Or
(According to your convenience will you please tell me when and
where we can meet ?)
Thank you Sir.
Step 1 Documents required
Ø Age proof
Ø Address proof
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Natural Market Market Survey
Secondary Data
Ø Photo-8
Ø Education proof
Ø Q score sheet
Ø Agency application
Ø Form V.A.ØFill NAAF.
Step 2. Interview Section
During the interview the senior manager/MOA asked following question
to the candidate to judge his ability and knowledge.
Ø Qualification.
Ø Present occupation
Ø Knowledge or experience in insurance sector
Ø Tenure of stay in the town
Ø Number of family member
Ø Household income
Ø Occupation of parent
If selected then the senior manager/MOA approve the application.
The managers take the help of scoring Mechanism. Scoring Mechanism was filled at the time of apply.
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Age Below 25 years Between 25-40 More than 40 Score
Scoring 0 2 1Mechanism
Marital Status Unmarried Married
1 2
Education 10th standard or Graduate Post Graduate12th standard
1 2 3
Tenure of stay Less than 3 3 - 5 years More than 5city/town years years
0 1 2
Household Less than 2 2 - 5 lakhs More than 5income lakhs lakhs
Total Score
Q Score:Acceptable Range of Score Greater than or equal to 7Additional Approvals 5 or 6Rejected application if 4 or lessIf the Q score is less than 7 then BSM/ARSM comments and signatures are required.Step 3. Training
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50 Hours Training and also provide a text book (IC-33 Life Insurance) for pre-recruitment Examination for Life Insurance Agents, which is based on syllabus prescribed by insurance Regulatory & Development Authority.IRDA for short, has laid down that those who wish to become insurance agents will be given licenses only after they complete a course of study, training and pass an examination prescribed by it.
During this training the knowledge about the entire essential concept related to life insurance is provided to agent. Insurers will have different practices and offer different benefits’ in their plans. All of them will be based on these concepts. The details of the practices and the plans of each insurer will have to be learnt from the respective insures.
Step 4. During training following things will be taught.
Ø What is insuranceØ Principles of life AssuranceØ Premiums and BonusesØ Life insurance productsØ UnderwritingØ Insurance DocumentsØ Policy conditionsØ ClaimsØ Linked life insurance productsØ Insurance agencyØ Laws and RegulationsØ IRDA Regulation 2000Ø IRDA Regulation 2002
Step 5. Examination and Code
Examination is the second last part of the recruitment and selection process.It include one hour test under, which contain 50 objective questions, one marks each,Pass mark are 25.These are two method of examination.
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Ø OnlineØ Manual
In case of online the result is declared on the spot and in the case of manual result, it is declared within one month.
After clearing the exam, ULIP training of two days will be given to the advisor about the product of company and then agency code is generated.
CHAPTER 4
Objectives and Research Methodology
55
OBJECTIVES OF THE STUDY
To understand the process of recruitment and selection of agents in Bharti AXA LIC
How to recruit agents for Bharti AXA LIC
Challenges and Opportunities in Recruitment Process
56
RESEARCH METHODOLOGYResearch Methodology is the investigation of specific problem in detail.
At first problem is defined carefully for conducting research. There
should be a good research plan for conducting research. No research
can be done without data collection. After all this analyze is made for
getting solution for problem.
Ø Defining the problem
Ø Defining the sampling plan
Ø Collecting of data
Ø Analysis and interpretation.
Defining the problem
Defining the research problem is first necessary step for any research.
This work should be done carefully. Here research problem is to know
willingness of general public to work as an agent with private player on
Bharti-AXA Life Insurance.
Sampling Plan
The sampling plan calls for three decisions
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A) Sampling Unit: I have completed my survey in CHANDIGARH, MOHALI
B) Sample size: The selection of the respondent was done on the basis of simple random sampling.
C) Contract methods
I have conducted the respondent through personal interviews.
Research Instrument
A close friend questionnaire was constructed for my survey. Questionnaire consisting of a set question made to filled by various respondents.
After this, I have collected the information from the respondent with the help of questionnaire.
Analyze the information
The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data and developed frequency distributions.
Thus the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were to render impact of the study.
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CHAPTER 5
Data Analysis & Interpretation
59
Total Database -30
Total approach-47
Total BOP- 26
Total NAAF submitted for refresher’s training – 10
Total License- 4
Q.1 would be interested in taking up a fantastic business/ career opportunity with Bharti AXA LIC?
yes no0
5
10
15
20
25
30
35
3400.00%
1300.00%Series1
Interpretation:
It has been found that out of 47 respondents, only 34 of them wanted to take up a fantastic career opportunity with Bharti AXA LIC. 13 of them gave the answer in
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negative. So it seems that people are less interested in starting up a career with Insurance Company.
Q.2 How much time can you dedicate per day?
half an hour 1-2 hour 3-4 hour 5 hours or more
0
5
10
15
20
252200.00%
1700.00%
600.00%
200.00%
Series2Series1
Interpretation:
After the survey was conducted it was found that very few people were interested to dedicate their time more than 5 hrs i.e. only 2 people out of 47 respondents. On the other hand, 22 respondents were in favor of dedicating half an hr per day, 17 of them went for 1-2 hr, whereas only 6 of them were interested to dedicate 3-4 hr per day. This shows that very few people are interested to dedicate their time for the company.
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Q.3 In which age group do you belong?
less than 25 yrs 25-40 yrs above 400
5
10
15
20
25
302600.00%
1200.00%
900.00%
Series1
Interpretation:
Out of the 47 respondents, 26 of them were in the age group of less than 25 yrs, 12 of them were in the age group 25-40 yrs, whereas only 9 people were in the age group of above 40.
Basically I have selected the unemployed youth more than the employed ones.
Q.4 What is your marital status?
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30%
17%
singlemarried
Interpretation: out of 47 respondents only 17% (17) of them were married, whereas 30% (30) of them were unmarried. So basically, my survey covers specially the young citizens of the town.
Q.5 What is your educational qualification?
17; 36%
27; 57%
3; 6%
10th or 12th passgraduatepost graduate
Interpretation:
Out of the 47 respondents, 27 of them were graduate, 3 of them completed their post graduation, and 17 of them passed their 10th standard or 12th.
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Q.6 What is your tenure of stay in the city?
2; 4%7; 15%
38; 81%
less than 3 yrs3-5 yrsmore than 5 yrs
Interpretation:
Majority of the respondents were staying in the town for more than 5 yrs, 7 of them were residing in the town since 3-5 yrs, whereas only 2 0f them were residing in the city not more than 3 yrs.
Q.7 What is your occupation?
23; 49%
13; 28%
11; 23%
studentservicebusiness
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Interpretation:
Very few respondents were doing their own business (11), whereas 23 of them were students, and 11 were doing Govt. service. I have selected the students as my main centre of attraction.
Q.9 What is your annual income?
9; 19%
32; 68%
6; 13%
1-2 lac2-5 lacmore than 5 lac
Interpretation:
Out of 47 respondents it was found that only 6 of them came under the annual income more than 5 lakh. On the other hand, only 9 of them were having annual income 1-2 lakh, and 32 of them were having annual income more than 5 lakh.
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Q.10 Are you prepared for your future planning?
20; 43%
27; 57%yesno
Interpretation:
Very few respondents (20) out of 47 answered that they were prepared for their future planning, whereas the rest 27 respondents said that they were not prepared for their future planning. This shows that less number of respondents was aware of their future planning and this is not a good approach by the people.
Q.11 Are you interested in earning extra income?
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20; 43%
27; 57%yesno
Interpretation:
When this question was asked to the respondents, only 20 of them replied positively whereas, 27 of them refused to earn an extra income. This reveals that people are less bothered regarding earning extra income per month, and they are happy with what they are doing.
Q.12 what is your biggest concern for future?
job career future0
5
10
15
20
25
1700.00%
2200.00%
800.00%Series1
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Interpretation: Out of 47 respondents, only 8 of them took future as their biggest concern, whereas, 22 of them chose career as their biggest concern and 17 opted for the job as their biggest concern.
Q. 13 Are you interested in part time or full time?
30; 64%
10; 21%
7; 15%
part timefull timeno answer
Interpretation: It has been found that only a few people, i.e, 10 out of 47 were interested to take the opportunity as full time job, while 30 of them were ready to take it as a part time job, whereas, 7 of them did not reply.
Q.14 How many people do you know who are having a Life Insurance Policy?
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17; 36%
12; 26%
18; 38%
very fewfewmany
Interpretation: When the survey was done, it was observed that only a few respondents i.e, 12 out of 47 knew some individuals having a Life Insurance Policy, whereas, 18 of them knew many people who are having a Life insurance Policy, and 17 respondents didn’t know a single person having a Life Insurance Policy.
Q.15 Do you have any Insurance Policy?
20; 43%
27; 57%yesno
Interpretation: When the respondents answered the question, majority of them (27.57%) denied of having an Insurance Policy. While only a few (20.43%) of them were having an Insurance Policy. It seems that still there are a huge number of population in the society who are yet to be insured.
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Q.16 Do you have any knowledge of or experience in Insurance?
Knowledge Experience
10; 25%
30; 75%
yesno
10; 25%
30; 75%
yesno
Interpretation: When there is a question of knowledge and experience, 930.75%) were inexperienced and doesn’t have any knowledge regarding Insurance, on the other hand, (10.25%) were well equipped and experienced. This shows lack of awareness in the minds of public regarding Insurance, and still there are so many individuals who are yet to be informed regarding the basics of Insurance.
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CHAPTER 6
Findings:In our summer internship program me of 45 days, we have seen lot of hurdles while recruiting advisors for the company. Some of them are listed below:
1. As Bharati AXA Life Insurance Company Is a private company, people were reluctant to hear anything about the company.
2. Most of the people were less interested to work with an insurance company and thought it would be a tuff job to work with.
3. Some sections of people were eager to work with the company but because of time constraint they refused to do so.
4. Most of the people were afraid, whether they could carry out the expectations of the company and hence they felt that it was not their cup of tea.
5. Some of them even denied to work as an insurance advisor just because they felt that they couldn’t pass the IRDA examination, and were less confident.
6. On the other hand, after attending a proper Business Opportunity Presentation (BOP) most of the people found it a better option to earn name and fame in future, by
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working with one of the best Insurance Company in the country.
Challenges and Opportunities:
1. There is requirement to make people aware that their money is safe when they invest in private company.
2. There is need to make people aware that insurance is for development of our society and that there social relation is not hampered by doing this business.
3. There is a need to provide proper training for better understanding of the Insurance basics and also better knowledge regarding the products.
4. As people are no longer unaware and hence in order to motivate them advisors should have a proper understanding of Financial Need Analysis (FNA) for a better approach to customers.
5. As we know that only 20% of the total insurable population of India is covered and the rest 80% is yet to be insured.
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no.
of
candidates
selected
for
the
IRDA
exam15
6. Out of a huge population of 121 crore, only 20 lakh of them are advisors.
7. Still there is a huge business opportunity in rural market which is yet to be realized.
Suggestions:
Though Bharti AXA Life Insurance Company has done tremendous job in recent years but still it has to go a long way, so I would like to share my ideas and suggestions that could be beneficial for the company.
1. First of all, to gain competitive edge in such a versatile market, the foremost thing the company can do is to have a perfect eye on its traditional competitors, so that they can compete with them more vibrantly.
2. On the other hand the company try to gain more customer strength by holding campaigns and training programmes in villages, because majority of our population resides in villages only.
3. Moreover, the advisors should be provided with better career opportunity according to their performances.
4. The company should look forward to educate its employees regarding all the developments happening in the business world, so that they can cope up any sort of problem arising in future.
5. Company should focus more on customer satisfaction by rendering best after sales service, quick claim settlement and easy withdrawal options.
6. The company should ensure that it is providing the best services to its employees and customers compared to the other company’s in the market.
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7. The company must organize special contests for the advisors also, so that they should not think of brand switching.
8. More and more advertisements on the print media and electronic media will help them gain more and more customers.
9. Last but not the least, organizing social welfare programs like blood donation camps, imparting free education to poor children etc. to attract more people and increase brand awareness.
Conclusion:
After a proper training programme, it can be concluded that people in the country are yet to be properly educated regarding the basics of Insurance, which restricts them to do any productive work. But we have observed that if the pros and cons of Insurance could be accurately and truly explained to the prospects, they felt it would be a better option for them to explore a new world.
The only thing that is required is awareness among the people and well trained financial advisors to guide them.
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CHAPTER 7
BibliographyBOOKS:
S. Balachandran, (2009), IC-33 Life Insurance, Shri S.J Gidwani Publishers, Mumbai.
Kothari, C.R (2004), ³Research Methodology´, 2nd edition: New Age international Publishers,pg-95,152. Arrow K. (1963), "Uncertainty and the Welfare Economics of Medical Care", American Economic Review, 53(5):941-973Dionne (1984), "Search and Insurance", International Economic Review, Vol 25(2), 357-367.
Broachers of Bharti AXA products
WEBSITES: www.irdaindia.org
www.bharti-axalife.comy www.wikipedia.org
www.ibef.org (Indian brand equity forum)
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www.selling-well.com
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Chapter 8
Script
After preparing P-100 from all the natural market as well as from other referrals, appointment is taken from the available database through tele calling for proper ‘Business Opportunity Presentation’ with Bharti AXA Life Insurance Company. Post this, when the prospect is motivated for joining as a Life Advisor or Business Partner with Bharti AXA Life Insurance following questionnaires are placed before the candidate:
Name:-Location:-Mobile no:-Address:-Occupation:-
QUESTIONNAIRE Would you be interested in taking up a fantastic business/career opportunity with
Bharti AXA?
a) Yes b) No
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In which age group do you belong?
a) Less than 25 b) 25-40 c) More than 40
What is your marital status?
a) Single b) Married
What is your educational qualification?a) 10th pass or 12th passb) Graduatec) Post graduate
What is your tenure of stay in the city?a) Less than 3 yearsb) 3-5 yearsc) More than 5 years
What is your household income?a) Less than 2 lacsb) 2-5 lacsc) More than 5 lacs
What is your occupation?a) Studentb) Servicec) Businessd) Any other
What is the biggest concern for your future? Career Job Future
How many people you know having Life Insurance Policy? a) Very few
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b) Fewc) Many
Are you interested in earning extra income?a) Yes No
Do you desire to lead a peaceful life?
a) Yesb) No
Are you prepared for your future planning?a) Yesb) No
How many people do you know who are having a Life Insurance Policy?a) Very fewb) fewc) many
Do you have any Insurance Policy?a) Yesb) No
How much time can you dedicate per day for the training?a) Half an hourb) 1-2 hourc) 3-4 hourd) 5 hrs or more
Do you have any knowledge of or experience in Insurance?Knowledgea) Yes b) No
Experience
a) Yes b) No
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Thanking you for your kind cooperation!
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THANK YOU
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