Study On Procurement and Development of Life Advisors: Bharathidasan Institute of Management Bangalore Campus May 2009

Study on Procurement and Development of Life advisors
At Bharti AXA Life insurance, Delhi

Project submitted in partial fulfilment for the requirement of the Post Graduate Diploma in Business Management (PGDBM) of Bharathidasan Institute of Management
Submitted by: Abhishek Shukla Reg.No. 103010108
Under the guidance of Prof. Vinod Madhavan
Bharathidasan Institute Of Management Bangalore Campus May 2009

DECLARATION BY THE STUDENT
This is to state that the project titled study on
procurement and
development of Life advisors is an original work carried out by me under the guidance of requirement Pro. Vinod Madhawan towards partial fulfilment for of the Post the
Graduate Diploma in Business Management
(PGDBM) of Bharathidasan Institute of Management
This has not been submitted in part or full towards any other degree of diploma.
Name of the Student- Abhishek Shukla Reg. No- 103010108

Place: Date: Bangalore May 2009
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CERTIFICATE BY THE GUIDE
This is to certify that the project titled study on
procurement and
development of Life advisors is an original work carried out by Abhishek Shukla under my guidance. This has not been submitted in part or full towards any other degree of diploma.
Prof Vinod Madhawan Name of Faculty Guide
Prof Sharon Andrews PGP Chairperson - BIM
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ACKNOWLEDGEMENT
My sincere gratitude towards all the respondents, my project mentors Mr. Pravind Kumar (TDM) and Mr. Rahimullah Ansari (AM), of Bharti AXA Life Insurance, faculty members of BIM Bangalore, our fellow batch mates and Prof Vinod Madhavan and Prof. Sharon Andrews ,Our guide without whom the completion of this project would have been difficult.
Abhishek Shukla
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EXECUTIVE SUMMARY
The project is about procurement and development of Life advisors. The process started from identifying the need, then advertising the same to prospective individuals by distribution of pamphlets, holding various activities in residential areas etc. Then individuals were surveyed. The questionnaire was designed in such a manner that it gave a general idea about the ability and capability of respondent as a prospective life insurance advisor. Certain scores were allotted depending on the answers given by the Respondent. Those who were high on the scores were motivated to visit the office for conduction of their interview. After the successful completion of interview individuals were informed if they were selected for training of Life advisors. They were asked to fill the NAAF form and a fee was collected from them along with their photographs. After successful completion of training an exam was conducted and those who qualified the exam were selected as life advisors.
The project report submitted here covers theory on procurement and development, flowchart of activities undertaken for procurement and development, data analysis of the survey and a list of suggestions and recommendations for the company at the end of the entire study. During the process of summer project we conducted activities in Residential colonies like RK Puram in Southern area of Delhi. The samples of the pamphlets that were distributed for such activities have been given in the annexure.
Table of Content
Declaration Certification Acknowledgement Executive summary List of Tables List of Graphs
ii iii iv v vi viii
CHAPTER 1 1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6 1.7 1.8
INTRODUCTION TO THE PROJECT Purpose of the project Significance and Importance of the Project Objective of the Project Scope of the Project Theory on Recruitment and Training The Recruitment Process: Major challenges for recruitment Training and development: Limitation of the Project Brief History of the Insurance Sector in India Top Indian Insurance Companies and market share
1 2 3 4 5 6 6 9 10 17 19 23
CHAPTER 2
PROFILE OF ORGANIZATION Bharti AXA Life Insurance Insurance Products of Bharti AXA
26 30 33
CHAPTER 3 3.1 3.2 3.2.1 3.3 3.3.1 3.3.2 3.3.3
RESEARCH DESIGN AND METHODOLOGY Research Methodology Research design Survey Questionnaire The Recruitment Process flowchart:Identifying Vacancy & advertising it Prepare Job Description and person Specification
36 37 39 41 43 44 45 46
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3.3.4 3.3.5 3.3.6 3.3.7 3.3.8 3.3.9
Short-listing on the basis of Q scores Conduction of interview Filling up the compulsory IRDA form Scheduling the training Conduction of examination Final selection as LA
47 48 49 50 53 54
CHAPTER 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11
DATA PRESENTATION, ANALYSIS AND INTERPRETATION Age of respondents: Gender of respondents Occupation of Respondents Number of Years spent in Delhi. Marital status: Stay in a joint family in Delhi No of children Biggest concern for future Provision for future liabilities Would you like to make extra money How much extra money you want to make
54 55 56 57 58 59 60 61 62 63 64 65
CHAPTER 5 5.1 5.2 5.3 5.4
FINDINGS AND SUGGESTIONS Findings Suggestions Conclusions Recommendation
66 67 68 69 70
BIBLIOGRAPHY: Annexure 1 Annexure 2
71 72 73
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Table of Graph
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11
Age of respondents: Gender of respondents Occupation of Respondents Number of Years spent in Delhi. Marital status: Do you stay in a joint family in Delhi? No of children Biggest concern for future Provision for future liabilities Would you like to make extra money How much extra money you want to make
55 56 57 58 59 60 61 62 63 64 65
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CHAPTER 1
INTRODUCTION TO THE PROJECT
Study on Procurement and Development of life Advisors
1.1 PURPOSE OF THE PROJECT
The purpose of the company project study was to: Get hands on experience of recruitment in Insurance sector. Understand the external recruitment process of Life advisors. Applying theoretical knowledge to the recruitment practices at Bharti
AXA life Insurance.
1.2 SIGNIFICANCE AND IMPORTANCE OF THE PROJECT
In the last few years, the job market has undergone some fundamental changes in terms of technologies, sources of recruitment, competition in the market etc. In an already saturated job market, where the practices like poaching and raiding are gaining momentum, HR professionals are constantly facing new challenges in one of their most important functionrecruitment. They have to face and conquer various challenges to find the best candidates for their organizations. The project focuses on the challenges facing the HR department in the growing insurance industry in India. Problems caused by the lack of skilled personnel and the increasing demand for skilled employees are also discussed in the project. In addition, challenges regarding the recruitment and retention of employees are examined. The project throws light on various measures taken by HR departments in insurance organizations to improve the work environment and the productivity of employees.
1.3 OBJECTIVES OF THE PROJECT
The objectives should be SMART objectives. S- Specific M- Measurable A- Achievable R- Relevant T- Time bound
Objective: To recruit more than 10 Life advisors during two months in Delhi region.
Individual objective: To interview prospective candidates to be recruited as Life

Advisor and to assist in their training.
1.4 SCOPE OF THE PROJECT
The project involved recruiting life advisors for Bharti AXA Life insurance in Delhi region. I was assigned on the profile of Agency Manager, and the entire process of recruitment was divided into sub- tasks. To further it, the project also involved arranging for preliminary training of Life advisors. The process of recruiting and training Life advisors can be broken into the following steps: Identifying individuals who are willing to solicit insurance business as a life advisor of the company. Assisting in scheduling the training and examination of the life advisors. Assisting and coordinating with Agency Development Manager of the company for licensing and coding of Life Advisors
1.5 THEORY ON RECRUITMENT & TRAINING
1.5.1 The Recruitment Process:

Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy within an organization. Though individuals can undertake individual components of the recruitment process, mid- and large-size organizations generally retain professional recruiters. These are the main stages in recruitment.
Sourcing: Sourcing involves

1) Advertising a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) Recruiting research, which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research for so-called passive prospects, also called name-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened (see below).
Screening & selection:

Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through rsums, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy, through psychological tests or employment testing. In some countries, employers are legally mandated to provide equal opportunity in hiring.
On Boarding
A well-planned introduction helps new employees become fully operational quickly and is often integrated with the recruitment process.
Source of recruitment
INTERNAL Transfers Promotions Upgrading Demotion Retired Employees Retrenched Employees Dependents and relatives of deceased Employees
EXTERNAL Press advertisements Educational Institutes Placements agencies /outsourcing Employments exchanges Labour contractors Unsolicited applicants Employee referrals
1.5.2 The major challenges faced by the HR in recruitment are:
Adaptability to globalization The HR professionals are expected and required to keep in tune with the changing times, i.e. the changes taking place across the globe. HR should maintain the timeliness of the process
Lack of motivation Recruitment is considered to be a thankless job. Even if the organization is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers.
Process analysis The immediacy and speed of the recruitment process are the main concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective.
Strategic prioritization The emerging new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes in the market has become a challenge for the recruitment professionals.
1.5.3 Training and development:
In organizational development, the related field of training and development (T & D) deals with the design and delivery of learning to improve performance, skills, or knowledge within organizations. In some organizations the term Learning and Development is used instead of Training and Development in order to emphasise the importance of learning for the individual and the organization. In other Organizations, the term Human Resource Development is used.
Types of T & D
1. Coaching 2. Continuing Professional Development or CPD 3. E-learning aka Online Learning, Distance Learning, Web-Based Learning 4. Executive education 5. Executive development 6. Leadership development 7. Instructional Animation 8. Instructional Design 9. Instructional Strategies 10. Knowledge Management 11. Organizational Learning 12. Organizational knowledge
13. Mentoring 14. Teaching Method 15. Blended learning 16. Outbound Management Development Programmes 17. Performance Management
The various forms of Training and development are explained below.
1. Coaching is a method of directing, instructing and training a person or group of people, with the aim to achieve some goal or develop specific skills. There are many ways to coach, types of coaching and methods to coaching. Direction may include motivational speaking. Training may include seminars, workshops, and supervised practice.
2. Continuing Professional Development (CPD) or Continuing Professional Education (CPE) is the means by which members of professional associations maintain, improve and broaden their knowledge and skills and develop the personal qualities required in their professional lives.CPD is defined as the holistic commitment to structured skills enhancement and personal or professional competence.
3. Electronic learning (or e-Learning or eLearning) is a type of education where the medium of instruction is computer technology. No in-person interaction may take place in some instances. E-learning is used interchangeably in a wide variety of contexts. In companies, it refers to the strategies that use the company network to deliver training courses
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to employees. In the USA, it is defined as a planned teaching/learning experience that uses a wide spectrum of technologies, mainly Internet or computer-based, to reach learners at a distance. Lately in most Universities, e-learning is used to define a specific mode to attend a course or programmes of study where the students rarely, if ever, attend face-to-face for on-campus access to educational facilities, because they study online.
4. Executive Education is the term used for programs at graduate-level business schools that aim to give classes for Chief Executives and other top managers or entrepreneurs. These Programs do not usually end in a degree, although there is an ever-growing number of an Executive MBA program that are very similar and offer a Masters of Business Administration upon completion of the coursework.
5. Executive development is the whole of activities aimed at developing the skills and competencies of those that (will) have executive positions in organisations. While "executive" and "manager" and "leader" is often used interchangeably, "executive" is commonly used to signify the top 5% to 10% of the organization. Similarly, "development" and "training" and "education" are often used as synonyms, however "development" is generally seen as the more encompassing of the three in terms of activities that build skills and competencies
6. Leadership development: Leadership development refers to any activity that enhances the quality of leadership within an individual or organization. These activities have ranged from MBA style programs offered at university business schools to high-ropes courses and executive retreats.
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7. Instructional Animations are animations that are used either to provide instructions for immediate performance of a task or to support more permanent learning of subject matter. While both of these uses can be described as instructional animations, when the goal is to support learning, the term educational animation may be preferred.
8. Instructional Design is the practice of arranging media (communication technology) and content to help learners and teachers transfer knowledge most effectively. The process Consists broadly of determining the current state of learner understanding, defining the end goal of instruction, and creating some media-based "intervention" to assist in the transition. Ideally the process is informed by pedagogically tested theories of learning and may take place in student-only, teacher-led or community-based settings. The outcome of this instruction may be directly observable and scientifically measured or completely hidden and assumed.
9. Knowledge Management (KM) comprises a range of practices used by organisations to identify, create, represent, distribute and enable adoption of what it knows, and how it knows it. It has been an established discipline since 1995 with a body of university courses and both professional and academic journals dedicated to it. Many large companies have resources dedicated to Knowledge Management, often as a part of 'Information Technology', 'Human Resource Management' or Business strategy departments. Knowledge Management is a multi-billion dollar world-wide market.
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10. Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. In Organizational development (OD), learning is a characteristic of an adaptive organization, i.e., an organization that is able to sense changes in signals from its environment (both internal and external) and adapt accordingly. OD specialists endeavour to assist their clients to learn from experience and incorporate the learning as feedback into the planning process.
11. Organizational knowledge: What is the nature of knowledge created, traded and used in organizations? Some of this knowledge can be termed technical knowing the meaning of technical words and phrases, being able to read and make sense of economic data and being able to act on the basis of law-like generalizations. Scientific knowledge is propositional; it takes the form of causal generalizations whenever A, then B. For example, whenever water reaches the temperature of 100 degrees, it boils; whenever it boils, it turns into steam; steam generates pressure when in an enclosed space; pressure drives engines. And so forth.
12. Mentorship refers to a developmental relationship between a more experienced mentor and a less experienced partner referred to as a protg, mentoree, or (person) being mentoreda person guided and protected by a more prominent person.
13. Teaching methods are best articulated by answering the questions, "What is the purpose of education?" and "What are the best ways of achieving these purposes?". For much of prehistory, educational methods were largely informal, and consisted of children imitating or modelling their behaviour on that of their elders, learning through observation and play. In
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this sense the children are the students, and the elder is the teacher. A teacher creates the course materials to be taught and then enforces it.
14. Blended Learning is the combination of multiple approaches to learning. Blended learning can be accomplished through the use of 'blended' virtual and physical resources. A typical example of this would be a combination of technology-based materials and face-toface sessions used together to deliver instruction. In the strictest sense, blended learning is when an instructor combines two methods of delivery of instruction. However, this term most often applies to the use of technology on instruction. A good example of blended learning would be to give a well-structured introductory lesson in the classroom, and then to provide follow up materials online.
15. Outbound Management Development Programmes are a training method for enhancing organizational performance through experiential learning. These programmes generally revolve around activities designed to improve leadership, communication skills, planning, change management, delegation, teamwork, and motivation. Participants are divided into teams and assigned tasks or activities for completion in a specified time. Achievement and performance during these activities is reviewed in group discussions to identify behaviours that enhance performance or lead to failure or decreased performance.
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16. Performance measurement is the process of assessing progress toward achieving predetermined goals. Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals. In network performance management (a) A set of functions that evaluate and report the behaviour of telecommunications equipment and the effectiveness of the network or network element and (b) A set of various sub-functions, such as gathering statistical information, maintaining and examining historical logs, determining system performance under natural and artificial conditions, and altering system modes of operation. In organizational development (OD), performance can be thought of as Actual Results vs. Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. Performance management and improvement can be thought of as a cycle:
1. Performance planning where goals and objectives are established 2. Performance coaching where a manager intervenes to give feedback and adjust performance 3. Performance appraisal: where individual performance is formally documented and feedback delivered A performance problem is any gap between Desired Results and Actual Results. Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results.
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1.6 LIMITATIONS OF THE PROJECT
Following are some reasons that demotivate and demoralize people from becoming Life advisors. I came across the following obstacles that arose in the process of recruitment:
Lack of awareness among the people This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them.
Perception of the people towards Insurance sector People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business.
Insurance does not give good returns Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays.
Lack of awareness about the earning opportunity in the Insurance sector
People still
today are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector.
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These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.
Increased competition Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market.
This situation has created a scenario in which to Recruit Life insurance Advisors and to sell life Insurance Policy has become very-very difficult.
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1.7 Brief History of the Insurance Sector in India
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a/.development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906.
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In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.
The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
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Some important milestones in the life insurance business in India are :
1850 Non life insurance debuts with triton insurance company. 1870 Bombay mutual life assurance society is the first Indian owned life insurer. 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and nonlife insurance businesses. 1938Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India.
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Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms.
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1.8 Top Indian Insurance Companies
Due to the growing demand of insurance, more and more insurance companies are now emerging in the Indian insurance market. Some of the preferred life insurance service providers in India are as follows:

Life Insurance Corporation of India ICICI Prudential Metlife India Insurance Aviva Life Insurance Reliance Life Insurance Bajaj Allianz HDFC Standard Life Insurance SBI Life Insurance ING Vysya
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Market shares of Insurance Companies
LIC (Life Insurance Corporation of India) still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force.
ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company in India. It experienced growth of 58% in new business premium, accounting for increase in market share to 8.93% in 2007-08 from 6.97% in 2006-07.
Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in number of policies sold in 2007-08, with total market share of 7.36%.
SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked 6th in 2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08, an increase of 87% over last year.
Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its market share went up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in number of new policies sold in 2007-08.
HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in FY2007-08, registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th among the insurance companies and 5th amongst the private players.
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Birla Sun Life Insurance Co Ltd market share of the company increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year before, pushing down Max New York Life insurance company.
Max New York Life Insurance Co Ltd has reported growth of 73% in 2007-08. Total new business generated was Rs 641.83 crore as against Rs 387.51 crore. The company was pushed down to the 8th position from 7th in 2007-08.
Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Last year the company doubled its branch network to 150 from 74.
Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9th last year. It has presence in more than 3,000 locations across India via 221 branches and close to 40 bank assurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344 crore. With the fresh investment, total paid-up capital of the insurer would go up to Rs 1,348.8 crore.
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CHAPTER 2
PROFILE OF ORGANIZATION
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2.1 PROFILE OF ORGANIZATION
Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias 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, we have over 5200 employees across over 12 states in the country. Our business philosophy is built around the promise of making people "Life Confident".
As we expand our presence across the country to cater to your insurance and wealth Management needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.
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The Joint Venture BHARTI and AXA
BHARTI
Bharti Enterprises is one of Indias leading business groups with interests in telecom, agric business, insurance and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of Indias leading private sector providers of telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line broadband and enterprise services. Bharti Airtel was ranked amongst the best performing companies in the world in the Business Week IT 100 list 2007. Bharti Teletech is the countrys largest manufacturer and exporter of telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd. FieldFresh Foods Pvt. Ltd - for global distribution of fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA Life Insurance Company Ltd. - with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart, for wholesale cash-and carry and back-end supply chain management operations.
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AXA Group
AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.
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Bharti AXA Life Insurance
Vision To be a leader and the preferred company for financial protection and wealth management in India.
Values
Professionalism Innovation Team Spirit Pragmatism Integrity
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Strategy to achieve vision
To achieve a top 5 market position in India through a multi-distribution,

multi-product platform
To adapt AXA's best practice blueprints as a sound platform for profitable Growth.
To leverage Bharti's local knowledge, infrastructure and customer base To deliver high levels of shareholder return To build long term value with our business partners by enhancing the proposition to their customers
To be the employer of choice to attract and retain the best talent in India To be recognised as being close and qualified by our customers
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Good HR practices
The guiding Human Resources principles at Bharti AXA are: Clearly define scope of responsibilities and empower people to deliver Provide people with the means to develop their competencies Consider individual training and development a priority investment Build organizations that are conducive to teamwork and that involve everyone Promote ongoing dialogue between managers and the people who report to them Make cultural difference a key source of strength
Strategic differentiators
Strong partner Bharti - provides access to customer base of more than 20 million. Multi channel execution capability. Current Asia product range which is a strong match to products sold to the mass and mass affluent. Global scale providing cost effective and speedy re-use of systems, products and business capability. Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team.
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2.2 Insurance Products of Bharti AXA
Life insurance products for individuals:
Bharti AXA Dream Life Pension
A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurances unique pension product ensures that your retirement life is your Dream Life.
Bharti AXA Life AspireLife
Unit Linked Endowment Product. Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing you adequate protection in case the need arises.
Bharti AXA Life Invest Confident
Unit Linked Single Premium Product. You have always strived hard to achieve the best for you and your loved ones, so when it comes to making an investment decision, we know that you would expect the best from it too.
Bharti AXA Life Wealth Confident
A unit-linked investment cum protection policy. Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same?
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Bharti AXA Life Future Confident
A unit-linked policy which offers comprehensive protection along with wealth creation in the long term.
Bharti AXA Life Future Confident II
A unit-linked product which offers enhanced protection along with wealth creation in the long term.
Bharti AXA Life Save Confident
Traditional money back insurance product for long term savings. Your changing life stages decide your financial milestone planning. When you foresee intermittent financial requirements in the years to come, like regular expenses related to your childs education, liquidity becomes a key aspect of your planning along with long term savings and protection for your family.
Bharti AXA Life Secure Confident
A Long Term Life Insurance. All of us desire to maximise the happiness for our family at all times, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones
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Disclaimer: Tax benefits are subject to change in tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
Insurance products for Group Insurance:
Bharti AXA Life Mortgage Credit Shield
Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.
Bharti AXA Life Credit Shield
Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years from Group Policyholder.
Disclaimer: Tax benefits are subject to change in tax laws. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
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CHAPTER 3
RESEARCH DESIGN AND METHODOLOGY
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3 RESEARCH DESIGN AND METHODOLOGY
3.1 REASEARCH METHDOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done. We can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The study of research methodology gives the student the necessary training in gathering material and arranging or car-indexing them, participation in field work when required, and also training in techniques for the collection of data appropriate to particular problem, in the use of statistics, questionnaires and controlled experimentation and in recording evidences, sorting it out and interpreting it. Knowledge of research methodology plays a key role in project work. It consists of series of actions or steps necessary to effectively carry research and the desired sequencing of these steps.
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Data Collection Method

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

Questionnaire methods and discussions with the HR and the employees were used to collect data.
Secondary Data Sources

The secondary data sources were collected from the company manuals, handbooks, and management books and are edited to suite the purpose.
Questionnaire Designed: Questionnaire was used for the survey.
37
3.2 RESEARCH DESIGN
Exploratory type of research designs adopted because sources of information are relatively few and the purpose is merely to find and to understand the possible actions. The major purposes of exploratory study are: Identification of problem The precise formulation of problems including the identification of variables Formulation of alternative course of action An exploratory research is often the first in the series of projects that culminates in one concerned with the drawing of inferences that are used as a basis of monetary action. Exploratory study is often used as a introductory phase of a larger study and results are used in developing specific technique for larger study. Of the study the relevant questionnaire was prepared and circulated among a stratified sample of 50 employees of RELIGARE INSURANCE BROKING Limited. This questionnaire formed the basis for the views on each of the points raised in the questionnaire. The data thus obtained formed the basis of information regarding the existing recruitment and selection processes at RELIGARE INSURANCE BROKING LTD. and the same is analyzed and interference is drawn regarding the various aspects of recruitment and the entire process of selection at RELIGARE INSURANCE BROKING Ltd.
38
Sample Design
Sampling technique:
Stratified sampling technique is adopted to conduct the research. Stratified purposive sapling is a selection method for achieving a greater degree of representatives, therefore decreasing the probable sampling error. It is based on the concept that a homogeneous population produces samples with smaller sampling errors than does a heterogeneous population. Stratified sampling is accomplished by placing all the members of the population into groups according to some characteristics that is common among them, that is homogeneous subsets of the population. Then specified number of unit is chosen from each of the groups or strata by purposive means.
Sampling Plans
The sampling plan consists of sampling units, e.g. from functional departments namely Marketing, Commercial, Technical and Human Resource. These employees constitute the manpower in the company who are engaged in the day to day functioning of the company, thus it is very important for them to understand the various aspects of the entire selection process and also the importance of performance appraisal system. Therefore, they had been selected for the project Sampling.
Sample Size:Sample size was taken 228 to undertake the survey.

39
3.2.1 SURVEY QUESTIONNAIRE
1. Name: 2. Age: 3. Gender: 4. Occupation: Government Employee Private Employee Male Female
Student Proprietor Others
5. Number of Years spent in Delhi:
<1 year
1-2 Years 4-5 Years
2-3 Year
6. Marital Status: Married Unmarried
7. Do you live in joint family? Yes No
8. If married do you have children, how many? 1 child 3 children 2 children 4 children
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9. Which is your biggest concern for future? Child educationRetirement Childs marriageMedical illness
10. Have you made provision for future liabilities? Yes No
11. Given a chance would you like to make extra money? Yes No
12. How much extra money you want to earn? (per month) 1000-5000 10000-15000 20000-25000 5000-10000 15000-20000 25000-30000
41
3.3 The Recruitment Process flowchart:Following is the flowchart of steps followed in recruitment of Life advisors:
Identifying Vacancy & advertising it
Prepare Job Description and person Specification
Short-listing on the basis of Q scores
Conduction of interview
Filling up the compulsory IRDA form
Scheduling the training
Conduction of examination
Final selection as LA
42
The elaboration on all the steps given in the flow chart above is given in the following pages.
3.3.1 Identifying vacancy and advertising it:
The following changes in the scenario led to the increasing vacancy for life Bharti AXA Delhi. Expansion of business as well as market. Growing competition. Change in demographics.
advisors in
After the identification of vacancy pamphlets containing the details were prepared and were distributed. The pamphlets used by us have been provided as Annexure 1, 2 and 3.
43
3.3.2 Preparing job description and person specification:
Career Bandwidth as a Life advisor at Bharti AXA:
As a Life Advisor at Bharti AXA, there is only one way to grow. And thats by meeting and exceeding your targets.
As a good performer, you stand to get promoted from Bronze to Diamond Club and enjoy special remuneration benefits.
As a Life Advisor, you can get appointed as an Agency Manager within a span of just 9 months to 1 year.
As a Life Advisor, you also get to participate in various business related projects and committees.
Compensation
As a Life Advisor, you have the opportunity to create attractive earnings for the first year and for the long term through payouts.
Higher the business you generate in the first year, higher the income you stand to earn year after year.
Get rewarded through Best in Class Rewards and Recognition programs including overseas conventions.
44
Support
All Bharti AXA branches have HR services for support on all matters related to compensation and career so you can redress your concerns immediately.
State-of-the-art Distribution Training support. Comprehensive marketing support in terms of brochures, illustrations etc. Sales Management Support for on the job training and business closure. Infrastructure & Technology support through dedicated Life Advisors bay equipped with telephones, computers and internet at Bharti AXA premises.
The details about the rewards and recognition are given in Annexure 4.
45
3.3.4 Short Listing on the basis of Q scores:
3.1 The five QsThe Qs are 5 different criteria where the candidates are to be analyzed. Q1- The candidate should have been a resident of Delhi for at least five years. Q2- He/ She should be married. Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs. Q4- He/ She should be a graduate. Q5- Minimum age to be eligible for being a life advisor is 24.
3.2 The significance of Qs
A high Q score implies possibility of better performance by the candidate as a life advisor (meaning better revenue generation ability). On an average only a candidate with a score of Q4 or Q5 was interviewed. A low Q score implies lesser possibility of such performance.
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3.3.5. Conduction of interview:
Pre- interview: Preparation of recruitment /selection document for Advertising Preparing advertisement Media selection Positioning
Response handling Initial interview online or telephone Short-listing for interviews Interview arrangement Sending emails or calling short listed candidates Interview details to the short listed candidates
During Interview
HR interview Technical interview Conducting tests [Aptitude / Mathematical / Analytical etc.] Initial final list of candidates Reference check (if required)
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Post interview
Email or Telephone call to unsuccessful candidates. Technical Manager approval for a start up date. Email or Telephone call to successful candidates. HRM prepares a letter of appointment.
Selection Process
Starts with the preliminary interview. Ends with contract of employment. Different process for different organization. Different process for different job in same organization. Selection easy for shop floor workers. Selection of managers is crucial. Affected by internal & external environment. Mutual decision making.
3.3.6 Filling up of compulsory IRDA form:

A New advisor application form (NAAF) is to be filled up by the candidate. Provided as Annexure.
48
6. Scheduling of the training:
Guidelines as per provisions of IRDA Act for training of life advisors (effective from 31st October 2004). The applicant shall have to undergo at least 100 hours practical training in life or general insurance business which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent. The training duration should be minimum18 working days excluding Sundays and holidays. No product training/market survey should be included into this hundred 100 hours training. The product training, if any, to be given by the insurance company should be over and above the minimum training hours prescribed by the Authority The attendance record of the trainees should be maintained at the Institute for necessary inspection at any given point of time. In case of short-fall of attendance, extra class may be permitted but the extra hours may be specified separately with proper attendance and details of faculty. Every Institute should have at least one qualified permanent faculty who is an Associate or Fellow from the Insurance Institute of India for each stream i.e. for Life and Non-Life. The attendance register of the faculty members should be maintained at the training institutes. The record of the payment made to faculty should be maintained at the training institute i.e. batch-wise payment detail should be maintained.
49
The faculty should provide details of the other Institutes with whom they have been empanelled as part-time/guest faculty.
Register should be maintained at the training institute giving details of batches completed, strength of the each batch, number of candidates decertified, name of the sponsored insurer and details of faculty who imparted the training with dates.
The seating capacity of each class-room should not exceed 40. The fresh accreditation will be given on need basis after assessing the needs of the particular city/town.
The initial approval will be for a period of 3 years and consideration of further renewal up to 3 years would depend on the satisfactory compliance of requirements of accreditation.
The insurance companies would regularly send their officials to oversee the proper conduct of the training at the institutes and would not sponsor candidates to those institutes that are not maintaining the required standards of and facilities for the training.
The training institute must display the certificate of accreditation to impart training issued by the Authority at the training institute.
The Institute should not allow a franchisee to conduct courses on its behalf even if the faculty is that of the Institute. The Institute should conduct the training on its own premises or hired premises with proper infrastructure.
No marketing fee/consultancy fee payment is permitted for getting the training batches.
It will be the responsibility of the Insurance Company to check the status of the institute before sponsoring any candidates for training.
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In case of mofussil areas or the cities where there are no accredited institutes and an insurance company intends to appoint agents, it will be the responsibility of the insurance company to conduct training. training at the place where the training is being imparted.
The Institute should confine its activities only to the place/city for which it has been given the approval. No training outside the said place/city is permitted.
The Institutes must submit a copy of the lease deed/rent agreement at the time of seeking fresh accreditation/renewal/change of address of the institute.
On successful completion of training the candidates get COT i.e. the Completion of Training Certificate by Bharti AXA.
51
7. Conduction of examination:
Syllabus:
The syllabus prescribed by the authority for life insurance agents is given in annexure 6. it is indicative and not exhaustive. The self study course material developed by institute in book form only the broad basis of examination which is available for sale with the institute and its associated institutes. A candidate is expected to study the course material in depth and also assimilate general information relevant to the subject. Candidate is also expected to know up-to-date developments in the insurance industry.
Pattern of examination:
Normally objective type multiple choice questions are asked. A candidate is required to indicate the correct alternative. A candidate is required to secure at least 50% marks to be declared successful. But the institute reserves the right to change, the pattern of question paper for the examinations without notice to anyone to test the knowledge of the candidate as it deems fit.
52
Mode of examination: The test can be taken up in either of the two modesonline or offline. Depending on the mode of testing the training is also arranged. For online mode the training is also done online whereas in offline mode the training is done in the class room format of. The duration of classroom training is 6+2 days. Where 6 days are reserved for compulsory IRDA training and the remaining 2 days are for product based training.
Admission card:
No candidate will be allowed to appear for the examination unless he/ she produces the admission card. The admission card will be issued by Bharti AXA. Besides admission card candidate must possess COT issued by Bharti AXA.
Sample questions: A list of sample questions is given as annexure.
Final selection as Life Advisor: The final selection as Life advisor is communicated
to the candidate.
53
CHAPTER 4
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
54
Analysis 1
Age of respondents: The following is the distribution of age of the respondents. Age <25 Years Number of individuals 52 85 60 31 25-35 Years 35-45 Years >45 Years
Graph 4.1
Chart Title
90 80 70 Axis Title 60 50 40 30 20 10 0 Series1 <25 Years 52 25-35 Years 85 35-45 Years 60 >45 Years 31
Less than 35 years of age individuals constitute 60% of sample size. Whereas individuals with more than 45 years of age constitute only 13%. Interpretation: Sample which has been surveyed is dominated by younger individuals.
55
Analysis 2
Gender of respondents
Male Female
196 32
Graph 4.2
Chart Title
Male Female
14%
86%
Interpretation: Sample is dominated by males which constitute 86% of total size.
56
Analysis 3
Occupation of Respondents
Occupation Number
Student 38
Pvt. Employee 32
Govt. Employee 75
Proprietor 51
Others 32
Graph 4.3
Chart Title
80 70 60
Axis Title
50 40 30 20 10 0
Student Series1
38
Govt. Emp 32
Pvt. Emp 75
Propriet er 51
Others
32
Interpretation: 47 % of the respondents were employees either government or Private employee, around 22% were proprietor and 16% were students.
57
Analysis 4
Number of Years spent in Delhi. Graph 4.4
Chart Title
80 70 60 50 40 30 20 10 0
Axis Title
Series1
<1 30
1-2 years 53
2-4 years 67
>5 years 78
Interpretation: Most of the individuals (less than 1 yr) have come to Delhi to study or work. The individuals with 4-5 years spent in Delhi or more are basically localites.
58
Analysis 5
Marital status:
Graph 4.5
Marital status
Single Married
37%
63%
Interpretation: 63% of the sample size is M arried people.
59
Analysis 6
Do you stay in a joint family in Delhi?
Graph 4.6
Joint Family
Yes 36%
No 64%
Interpretation: Almost 64% of Individuals are staying either alone or in a nuclear family. They are basically students or individuals who have come to Delhi for job opportunities.
60
Analysis 7
If you are married, do you have any children? How many? Graph 4.7
No. of Children
60 50 Axis Title 40 30 20 10 0
Series1
1 child 27
2 child 58
3 child 36
4 child 22
Interpretation: Only 143 respondents have children, of which 20% Have only one child around 40% have two child.
61
Analysis 8
What is your biggest concern for future? Graph 4.8
Chart Title
50 40 Axis Title 30 20 10 0 Child marriage 35 Child education 42 Medical illness 18 Retireme nt 39
Series1
Interpretation: Retirement (27%), child marriage (24%) & child education (29%) are major concern for future.
62
Analysis 9
Have you made provision for future liabilities?
Graph 4.9
Provision made
yes No
32%
68%
Interpretation: 68 % of the individuals have made no provision for the future liabilities.
63
Analysis 10
Given a chance would you like to make extra money?
Graph 4.10
Chart Title
21%
Yes 79% No
Interpretation: 79 % respondent said yes to make extra money if they get an

opportunity.
64
Analysis 11
How much extra money you want to make?
Graph 4.11
Chart Title
50 40 Axis Title 30 20 10 0
Series1
1k-5k 35
5k-10k 41
10k-15k 49
15k-20k 32
20k-25k 22
Interpretation:
27 % respondent preferred to earn around 10000 to 15000 Rs per month and 22 % respondent preferred to earn around to 5000 to 10000 Rs per month as a part time job.
65
CHAPTER 5
FINDINGS AND SUGGESTIONS
66
FINDINGS
The f i n d i n g s are based on the survey undertaken and interview of individuals for the procurement of life advisors. The major findings are:
Sample is dominated by males which constitute 86% of total size. 47 % of the respondents were either government or Private employee, around 22% were proprietor and 16% were students. Most of the individuals (less than 1 yr) have come to Delhi to study or work. The individuals with 4-5 years spent in Delhi or more are basically localites. Almost 64% of Individuals are staying either alone or in a nuclear family. They are basically students or individuals who have come to Delhi for job opportunities Out of the respondents retirement (27%), child marriage (24%) & child education (29%) are major concern for future. 68 % of the individuals have made no provision for the future liabilities; only 22 % have taken some step for their future. They have taken some insurance policy or have fixed deposits accounts for them or their family members. Almost 79 % respondent said yes to make extra money if they get an
opportunity to work as a part time job.
67
SUGGESTIONS
The fee charged from candidates as application money should be waved off. It should rather be paid by the Insurance Company. The strict training schedule should be made flexible. For a person who is Q4 or Q5 on score it is difficult for him/ her to be able to come for training especially in case when he/ she is already working. The incentive system should be more attractive to motivate more and more people for becoming Life Advisors. More and more promotional activities should be held for enhanced brand building which will facilitate revenue generation and increased
satisfaction leading to customer retention in the long run. There is need to have in place a properly managed performance appraisal system even for life advisors that would contribute to effective retention of personnel.
68
CONCLUSION
For the purpose of this report, it was found that the questionnaire and interview questions, employee manual were sufficient to obtain the information required to analyze the process of requirement and selection within the organization. It has been found that the organization has a sound understanding of what process need to be used in order to achieve effective recruitment and selection of Life advisors. In addition to this, there are several recommendations for the organization.
69
Recommendation
For any firm to be successful the main objectives should be:
Sustainable long-term growth, Stable income and Asset preservation; Need to emphasize quality and diversification in both equity and fixed income asset classes.
Focus should be performance.
on
long-term consistent investment
Emphasis towards training and enhancing skills of recruitees needs to be more.
Invest more in
current staff than
in
Recruitment:
Conduct internal audit. Be Creative Understand and manage salary:
70
BIBLIOGRAPHY:
www.irdaindia.org www.bharti-axalife.com www.wikipedia.org www.ibef.org www.scribd.com NAAF www.google.com (Indian brand equity forum)
71
Annexure 1
PERSONALDETAILFORM
NAME: FATHERS NAME: AGE: OCCUPATION: ADDRESS:
FAMILY HOSTORY:
NAME FATHER: MOTHER: BROTHER: SISTER:
AGE
EDUCATION
EMAIL:
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Annexure 2
Broad syllabus for pre- recruitment exam for life insurance agent:
1. Introduction to Insurance:
What is insurance Purpose and need of insurance Classification of risk The human asset Insurance as a social security tool Role of insurance in economic development
2. Principles of life assurance:

Life insurance contracts principle of utmost good faith insurable interest. Principle of indemnity Different risks
3. Premium and Bonus

What is premium? Premium calculation Actuarial valuation Bonus
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4. Life Insurance products

Basic elements Some popular plans Variable insurance plans Salary saving schemes Riders Annuities Group Insurance
5. Underwriting introduction
Classification of risk Financial underwriting Assessing risk Adverse selection Non medical underwriting Recent rends
6. Insurance Document
Proposal form and personal statements First/ renewal payment receipt
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Policy document Endorsement Prospectus
7. Policy conditions
Age, days of grace Lapse and non- forfeiture Paid up value
Revival Assignment, nomination Surrender and loan Foreclosure Alternatives
Married womens property act policy
8. Claims
Maturity claims Survival benefit payments Death claims Accident and disability benefits Claims concessions.
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9. Unit linked life Insurance products

What is linked policy Option of funds Net asset value (NAV) Flexibility Lock in charges ULIP and traditional insurance Annuities and pensions
10. Insurance Agency

Definition of an agent Agents regulation Procedure for becoming an agent Methods of remunerating agents Agency as a profession Functions of agents Responsibilities of an agent Pre requisites for success Ethical behaviour
76
11. Law and Regulations

Insurance act 1938 Consumer protection act 1986 (COPA) LIC act 1956 IRDA act 1999 Ombudsman Income tax act MWP act Rural and social sector Micro insurance
77

Study On Procurement and Development of Life Advisors: Bharathidasan Institute of Management Bangalore Campus May 2009

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Study On Procurement and Development of Life Advisors: Bharathidasan Institute of Management Bangalore Campus May 2009

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Study on Procurement and Development of Life advisors

At Bharti AXA Life insurance, Delhi

Submitted by: Abhishek Shukla Reg.No. 103010108

Under the guidance of Prof. Vinod Madhavan

Bharathidasan Institute Of Management Bangalore Campus May 2009

DECLARATION BY THE STUDENT

This is to state that the project titled study on

Graduate Diploma in Business Management

(PGDBM) of Bharathidasan Institute of Management

Name of the Student- Abhishek Shukla Reg. No- 103010108