LIFE INSURANCE INDUSTRY IN PAKISTAN

The life industry in Pakistan has a turbulent history. Before 1972.

It was based on free competition, and there was were 2
companies transactin! life insurance business. In 1972 the
insurance industry was nationali"ed and, as a conse#uence, $tate
%ife was created, which held a monopoly until 1992. &fter
chan!es in the law in 199', pri(ate local and forei!n companies
were allowed to enter the life insurance market.
&t present there are fi(e life insurance companies in the
industry)
* $tate %ife Insurance+with more than 9', share of the
market
* -./
* &lico
* 0etropolitan
* 1ommercial /nion
1ommercial union was !ranted permission to transact life
insurance business in 1992, and commenced operations in 3une
1994. It is the newest company in the industry.
Recruitment And Selection 1 1
HISTORY OF COMMERCIAL UNION
1ommercial /nion is one of the world5s leadin! insurance
companies, pro(idin! a comprehensi(e ser(ice to customers for all
forms of !eneral insurance and life assurance business. It was
founded in the /nited 6in!dom.
Its ori!ins date back to 1741, when a fire de(astated a !roup of
warehouses in Tooley $treet, near %ondon Brid!e. The resultant
insurance claims caused %ondon5s fire insurance companies to
increase their premium rates dramatically, which in turn lead to a
!roup of merchants to form their own insurance company)
1ommercial /nion.
By the turn of the century, 1ommercial /nion had international
representation in 8ermany, 1anada, India, the /nited $tates,
$in!apore and &ustralia and throu!h a series of mer!ers9
1ommercial /nion became the first truly composite British
insurance office. By 19'2, 1ommercial /nion mer!ed with :and;
in;:and .ire and %ife Insurance $ociety, the oldest e<istin!
insurance company in the world =ha(in! been established in 1494>.
In this way 1ommercial /nion and its predecessor companies ha(e
pro(ided insurance for pri(ate and commercial customers for ?''
years. 8enerations around the world are en@oyin! the benefits of
commercial union pensions and other life products.
Recruitment And Selection 2 2
BACKGROUND OF COMMERCIAL UNION:
T:- 1A00-B1I&% /CIAC 8BA/P T:- 1A00-B1I&% /CIAC 8BA/P
The !roup mana!es worldwide assets of 42 billion pounds and
writes premiums of 9 billion pounds.
Principal activiti!
1ommercial /nion plc is the holdin! company for the 1ommercial
/nion 8roup of companies, which transacts life assurance, other
than industrial life, and all classes of !eneral insurance throu!h
its subsidiaries, associates and branches in the united kin!dom,
1ontinental -urope, Corth &merica and other territories
throu!hout the world. The 8roup pro(ides a number of financial
ser(ices related to its core business of insurance, includin! unit
trust and in(estment mana!ement, bankin! stockbrokin!, pri(ate
client in(estment mana!ement, trustee ser(ices and personal
e#uity plans. The 8roup also in(ests in stocks, shares, properties,
mort!a!es and loans and carries on the business of tradin! in
property.
Recruitment And Selection 3 3
B/$IC-$$ AP-B&TIAC$ B/$IC-$$ AP-B&TIAC$
THE GROUP COMPRISES SE"EN MA#OR BUSINESS THE GROUP COMPRISES SE"EN MA#OR BUSINESS
OPERATION: UNITED KINGDOM$ FRANCE$ THE OPERATION: UNITED KINGDOM$ FRANCE$ THE
NETHERLANDS$ REST OF EUROPE$ UNITED NETHERLANDS$ REST OF EUROPE$ UNITED
STATES$ CANADA AND O"ERSEAS% &ITH THE STATES$ CANADA AND O"ERSEAS% &ITH THE
AC'UISITION OF THE ABEILLE COMPANIES IN AC'UISITION OF THE ABEILLE COMPANIES IN
())*$ FRANCE NO& ACCOUNTS FOR NEARLY A ())*$ FRANCE NO& ACCOUNTS FOR NEARLY A
THIRD OF THE GROUP+ S TOTAL PREMIUM THIRD OF THE GROUP+ S TOTAL PREMIUM
INCOME% THE REST OF THE EUROPE OPERATIONS INCOME% THE REST OF THE EUROPE OPERATIONS
CONTAIN RAPIDLY GRO&ING LIFE BUSINESS CONTAIN RAPIDLY GRO&ING LIFE BUSINESS
ITALY AND POLAND% O"ERSEAS OPERATION$ AS ITALY AND POLAND% O"ERSEAS OPERATION$ AS
&ELL AS ESTABLISHED BUSINESS IN &ELL AS ESTABLISHED BUSINESS IN
AUSTRALIA AND SOUTH AFRICA CO"ERS MANY AUSTRALIA AND SOUTH AFRICA CO"ERS MANY
OF THE GROUP+ S NE&ER MARKETS IN ASIA% OF THE GROUP+ S NE&ER MARKETS IN ASIA%
.und mana!ement is an increasin!ly important part of the 8roups
acti(ities, operatin! throu!h commercial /nion In(estment
0ana!ement in %ondon and local operations in ei!ht ma@or centres
around the world. &ll the businesses contribute to the success of
the !roup and share common stren!th and (alues.
Recruitment And Selection 4 4
COMMERCIAL UNION PAKISTAN
1ommercial /nion5s business in Pakistan be!an with operation in
6arachi in 3une 1791. Today, it is the lar!est forei!n !eneral in
surer in Pakistan and on 1
st
3uly 1994, 1ommercial union %ife
&ssurance 1ompany =Pakistan> %imited was listed on the 6arachi
$tick e<chan!e. 1ommercial /nion &ssurance 1ompany plc holds
21, of the e#uity, Pakistan Cationals holds ?9, and 0uslim
1ommercial holds the remainin! 1', of the -#uity. 1ommercial
/nion has its offices in the followin! cities in Pakistan
6arachi, %ahore, Islamabad, and .aisalabad.
1ommercial union Pakistan is to become 18/ in 3une due to the
mer!er between 1ommercial /nion and 8eneral &ccident. The
name and lo!o all will chan!e, but for now it is carryin! on its
acti(ities under the name 1ommercial /nion.
Gnral In!,ranc
The Principal operations are based in 6arachi and opened in our
own buildin! in 1991 .
1ommercial /nion insures many of the leadin! multinational
businesses in Pakistan with particular focus on industrial and
commercial insurance.
Recruitment And Selection 5 5
Li- A!!,ranc
The %ife 1ompany ser(es the life assurance needs of Pakistani
people throu!h 8roup %ife and Indi(idual %ife also plans of
Bancassurance are underway. Indi(idual life &ssurance co(ers was
offered to the public from 1
st
3anuary 1997and the company aims
o become the Dpre;eminent5 life assure amon! customers,
shareholders and competitors in the pri(ate sector on Pakistan
offerin! #uality products to all clients.
Recruitment And Selection 6 6
1A00-B1I&% /CIAC %I.- &$$/B&C1- 1A0P&CE
=P&6I$T&C>
%I0IT-F =1/%&P>
The 1ommercial /nion %ife &ssurance 1ompany =Pakistan> %imited
=1/%&P> is a subsidiary of 1ommercial /nion plc and wa s
incorporated at %ahore in 3une 1992 as a public limited company,
under the companies Ardinance, 197. Its paid up 1apital is Bs.
?'' million, which is the hi!hest amon! all insurers in Pakistan.
The company is listed on the 6arachi $tock -<chan!e
1/ pro(ides inno(ati(e insurance ser(ices that are desi!ned to
cater for happy e(ents, such as weddin!s, hi!her education for
the children, as well as comfortable life after retirement, and to
meet situations arisin! out of premature death, accident or
prolon!ed illness of a breadwinner. 1/ pro(ides protecti(e and
carin! co(er for any occasion.
It lends support to hei!hten the en@oyment of the occasion or
cushion the blow. It will be there for its customers whene(er
they it.
FOUNDATIONS OF CULAP)
& con(er!ence of a number of international and local key players,
all respected in the respecti(e fields ha(e pooled their stren!ths
to !i(e 1ommercial /nion %ife &ssurance 1ompany =Pakistan>
%imited =1/%&P>, a first pedi!ree that people can depend on to
ride out economic turbulence. 1ommercial /nion &ssurance
1ompany plc has a share holdin! in 1/%&P of 21, which !i(es its
operations the benefit of its substantial e<perience and financial
stren!th. 1/%&P has a strate!ic alliance with 0uslim 1ommercial
Recruitment And Selection 7 7
Bank =01B> which assists I the promotion of its business and 1/
has arran!ements with financially sound and internationally
reputed insures to insure that they ha(e the ability to pay on
their claims.
THE PEOPLE BEHIND CULAP:
1/%&P has assembled an array of talented indi(iduals all
dedicated to achie(e the o(erridin! company mission to pro(ide
the customers with a bri!ht and secure future throu!h
inno(ati(e, fle<ible, and comprehensi(e insurance ser(ices. It has
the ri!ht people doin! the ri!ht people ri!ht thin!s. The company
has at its core, Fe(elopment Afficers who attend to the
customers needs and insure that all their financial !oals all
planned for and met. The Fe(elopment Afficers representin!
1ommercial /nion are trained to !i(e ad(ice that is reliable and
best for the customerGs circumstances.
CULAP OPERATIONS:
Insurance is fundamentally a ser(ice Business. Therefore it is
important that policies should be ser(iced efficiently and
dili!ently. To pro(ide the hi!hest le(el of customer ser(ice
1ommercial /nion %ife &ssurance 1ompany =Pakistan> %imited has
a well;trained team of ser(ice personnel backed by $tate of art
computer resource
.rom the moment an insurance proposal is submitted to them
ri!ht up to the payments of benefits under the policy, they track
the status of the policy and keep the customers posted on its
pro!ress. &ll the in#uiries are treated with priority, and the
Recruitment And Selection 8 8
policy is desi!ned to adapt to the chan!in! personal
circumstances.
Ane sure measure of an insurance company is the promptness
with which it pays the benefit under its policies. 1ommercial union
has the systems and the personnel to ensure the its customers
!et their payments without delay.
The company prides itself on)
Personali"ed ser(icin! of policies
-fficient and courteous personnel
1omputeri"ed systems at all le(els
/tmost priority to benefit payment.
TYPE OF INSURANCE PRO"IDED BY CULAP:
1/%&P writes Gr.,p Li- as well as In/ivi/,al Li- business.
1/%&P started 8roup life business in 3une 1994, and has a
si!nificant client base, consistin! of 14' 0ultinationals and
Pakistani companies and institutions, co(erin! ?2''' li(es.
1ommercial /nion commenced Indi(idual %ife Business in 3anuary
1997, with branches in 6arachi and %ahore, and opened its
Islamabad Branch in &pril 1997. 1/%&P competes on #uality H
#uality of its products and #uality of ser(ice. It fields a
professionally trained sales force and offers products, which
cater for each indi(idual5s need.
1urrently, 1/%&P Indi(idual %ife offers two products. These
products enable the company to secure the clients future. The
Recruitment And Selection 9 9
products are the Sc,r Li- plan an/ t0 Sc,r E/,cati.n
Plan

The team makin! up the 1/%&P includin! both the 8roup and
Indi(idual %ife is youn! and ener!etic, who attend to many and
(aried insurance needs of the customers. There is hi!hest
standard of ser(ice and #uality products desi!ned to put the
customers first. The core of the business is the customer
supplier relationship. The company belie(es in lon!; term
business relationships
Gr.,p Li- A!!,ranc:
The 8roup %ife Aperation of 1ommercial /nion %ife &ssurance;
Pakistan =1/%&P> pro(ides a comprehensi(e ran!e of 8roup
Insurance and -mployee Benefit Plans to employers. $ince its
launch on 3une ?', 1994 the 8roup %ife Fepartment has
de(eloped a si!nificant client base consistin! of 0ultinational s
and Pakistani 1ompanies.
The 8roup %ife Fepartment has been successful this far because
they are customer focused. They pro(ide solution to employerGs
problems after de(elopin! a deep understandin! of their own
particular situation. Therefore, when they transact business it is
based on deep understandin! and trust. They aim that there
business truncation lead to lon! term mutually beneficial
relationships
Recruitment And Selection 10 10
&nother factor that has contributed to the company5s successful
entry in the market is that it has assembled a team of
professional personnel that understands the local market, is
hi!hly trained H includin! computer technolo!y and is ser(iced
dri(en. The !roup is there
To ser(e its customers so that they rely on its ad(ice and ser(ice.
1/%&P5s 8roup %ife Fepartment plans to introduce a 8roup
Pension $cheme, which should be a(ailable in the near future. The
company hopes to be at the forefront of product de(elopment as
it continually monitors the market in search of ways to impro(e
the products and ser(ices it offers. The market is fore(er
chan!in! and 1/%&P hopes to adapt to its chan!es to keep pace
with new trends and consumer re#uirements.
In/ivi/,al Li- A!!,ranc:
The Indi(idual %ife &ssurance offers two products the $ecure
-ducation Plan and $ecure %ife Plan. The former will make sure
that the customers are able to meet their children5s education
cost. &nd the latter will pro(ide with a %ife co(er for the rest of
the customerGs life to safe!uard their families.
Recruitment And Selection 11 11
PRODUCTS OFFERED BY INDI"IDUALLIFE INSURANCE
T0 SCUr E/,cati.n Plan
The key features and benefits of the plan are)
1. $ecurity of -ducation
The plans sol(e the 1olle!e .ee Problems of parents. .or o(er
the last decade the cost of education has skyrocketed and is a
ma@or proportion of the family bud!et. &s a result colle!e
education is a ma@or family concern. 0any parents, who fail to
plan ahead, fail to fulfill their ambition to pro(ide their children
with the education they had intended. The education plan can !i(e
children a head start to be tomorrow5s leader in hisIher chosen
field.
2. 1/5s 1ommitment to the 1hild5s .uture)
1ommercial /nion has de(eloped a method assistin! in pro(idin!
children the education they wish. Parents with 1/5s financial
consultants5 help decide how much they will need, when they will
need the money and the consultants will ad(ise parents hoe much,
heIshe estimates the parents needs to pay.
?. &nnual Be(iew)
Recruitment And Selection 12 12
The company shall periodically e(aluate the customerGs plans and
chan!in! financial commitments, to ensure that the plan stays
tuned to their needs.
. -ase of 0ind)
Co matter what happens to the parents, if they ha(e 1ommercial
/nion5s $ecure -ducation Plan, 1/ will assist them in pro(idin! for
their 1hild5s future.
2. Protection In 1ase of Premature Feath)
If the parent=s> die before the completion of their child5s
$choolin!, 1ommercial /nion will pro(ide then with an income to
assist with their child Ds school fees.
4..le<ibilty
1/5s $ecure -ducation Plan continues the co(er for up to 12
months e(en if the premiums are discontinued, pro(ided at least
two annual premiums ha(e been paid.
7. -nhancement of 1o(er)
There is choice a(ailable for e<tra protection a!ainst disabilities,
accidents and life threatenin! illnesses.
7.Ta< .ree 8rowth
The secure -ducation Plan lets one sa(e without sufferin! any
ta<es on their in(estment !ains.
Recruitment And Selection 13 13
1'. 1ashin! In Eour Plan
Ane may surrender the plan at any time. Ar instead of
surrenderin!, one may
make partial withdrawals from the plan.
T0 SCUr Li- Plan:

1. $ecurity .or The years &head.
The %ife Plan pro(ides life co(er for the rest of ones life to
safe!uard their family. Jith the Plan one know s what co(er the
family needs now, and for the rest of their life, whate(er
happens.
2. %ife &ssurance Is Cot &lways -nou!h)
The $ecure %ife Plan offers protection not only case of death but
also in cases of illness and disabilities. The Plan will co(er for
:eart attack, 1ancer, stroke, and renal failure or By pass
operations.

?. Protection &!ainst Inflation)
1ommercial union5s secure life Plan let one protect their sa(in!s
from inflation.
. Ta< .ree 8rowth
2. Eour .amily recei(es a lump sum if you die
Recruitment And Selection 14 14
4. Tailorin! The Plan to Indi(idual Ceeds)
There is 1hoice of 7 options, includin! 1ritical illness and wai(er
of Premium.
7. Aption of increasin! or decreasin! the life co(er.
7. 1ash withdrawals possible
ORGANI1ATION STRUCTURE
2CULAP3
Recruitment And Selection 15 15
MANAGING DIRECTOR

.IC&C1- 0&B6-TIC8 -B$
AP-B&TIAC$
CFO4CS AGM
AGM
IN" ACC DSF H4O
ACT IT UND
MKT DEPT
-B$ ;;;; -mployment Benefit ser(ice
CFO 5555 CHIEF FINANCE OFFICER CFO 5555 CHIEF FINANCE OFFICER
1$ ;;;; 1ompany $ecretary
&80 ;;;; &ssistant 8eneral 0ana!er
ICK ;;;; In(estment FepartmentI.unction
&11 ;;;; &ccounts Fepartment
Recruitment And Selection 16 16
F$. ;;;; Firect $ales .orce
:IA ;;;; :ead Affice
&1T ;;;; &ctuarial
IT ;;;; Information Technolo!y
/CF ;;; /nderwritin!
:/0&C B-$A/B1- 0&C&8-0-CT &T 1/%&P;;; an o(er(iew
-L/&% -0P%AE0-CT APPABT/CITE
Recruitment And Selection 17 17
&t 1/%&P the mana!ement belie(es in promotin! people on merit
and on e#ual opportunist basis. There is a set career path, which
an employee can look forward to. &chie(ement is the only
criterion. The company belie(es in promotin! people from within.
It has a well defined career path for its de(elopment AfficersG
1&B--B P&T:J&E$
Pro(idin! career pathways to its employees is emphasi"ed a lot at
1ommercial /nion. It belie(es that if one is lookin! for a career in
mana!ement the sector chosen is less important than the
or!ani"ation selected. Jhat really matters is the caliber of the
trainin! and de(elopment opportunities.
1areer paths are well defined both at Pakistan and at
head#uarters in /6. Thou!h there are some difference because in
the /6 they are (ery well planned and detailed. :owe(er, in
Pakistan also they are in line with the 1/ philosophy that
employees should be pro(ided with !ood career paths.
This is what one !raduate entrant at /6 described what 1/ has
to offer)
Recruitment And Selection 18 18
MJhat impressed me was the (ariety of career paths. Pro(idin!
you ha(e the potential to become a mana!er, there will be
somethin! to suit your interests whether you are technically
oriented or prefer to !et out and about and meet peopleM
& pre(ious entrant in the insurance industry had to say about 1/)
MI was lookin! for a career in mana!ement and I ha(e found it.
The fact that insurance and financial ser(ices businesses has
turned out to be so interestin! is simple an added bonusM
The same kind of principal applies at 1/%&P= 1ommercial /nion
%ife &ssurance Pakistan>. The company belie(es that there is no
secret to success. &nyone can succeed. &ll one needs is to be
prepared to put in handwork, think smart and uses the company
!uidelines. Then success will chase the employees and not the
otherway round.
1&B--B APTIAC$ &K&I&B%- TA -0P%AE--$
There are two contrastin! pathways that an employee can follow
at 1opmmercial union. & employee can follow one of the two
contrastin! paths within %ife Aperations, both leadin! to
mana!ement career. &t Ha/ O--ic the person will be in(ol(ed
in the desi!n of the system and procedures needed to man!e the
new and e<istin! products. &t the Sal! .r CSC =1ustomer
Recruitment And Selection 19 19
$er(ice 1enter> an employee will be in(ol(ed in mana!in! people
and resources to put them into practice.
PREPARATION AND SELECTION
SELECTION CRITERIA
The company looks for !raduates who learn fast and !et on well
with people at all le(els. The criteria for selection people at the
:IA and 1$1 is different. .or :IA roles, 1/ places particular
emphasis on analytical skills. Jhile the ability to think on ones
feet and react positi(ely to a wide ran!e problems is (ital for a
succession in a sales career. &part from theses re#uirements the
selection is only on merit. These aspects are the same in Pakistan
and the at head#uarters.
APPLICATION AND SELECTION PROCESS
The defined application and selection process at 1/%&P is (ery
comprehensi(e and is di(ided into three sta!es)
1. .irst $ta!e )
People first send there applications to the recruitment office. &
recruitment fair an I also held.
2. $econd $ta!e )
Recruitment And Selection 20 20
The company decides which applicants it has to take further.
Those people are in(ited to a first inter(iew at the nearest 1/
office.
?. Third $ta!e )
If the applicant is successful at the first inter(iew sta!e
heIshe will be in(ited to spend two days at 1/ assessment center
either at re!ional office, :IA or the trainin! center at 6ent.
&ssessment in(ol(es (arious e<ercises as inter(iews, !roup
discussions, (erbal and numerical reasonin! tests all of which are
desi!ned to allow the applicant to demonstrate the #ualities the
company is lookin! for in its future mana!ers.
In Pakistan these defined !uideline and sta!es are not always
followed. The process is cit short to make it simple. It is process
is not as e<tensi(e and comprehensi(e. The defined application
and selection process in Pakistan is altered and is mostly
followeds in the sta!es mention below
Recruitment And Selection 21 21
(% T0 applicati.n !ta6
NThe applicant send in their resumes. If they meet the criteria
then they are called for an inter(iew.
7% Fir!t intrvi8
The first inter(iew is mostly conducted by the :B departement
and the applicants assessed on basic suitability issues and areas.
9% Sc.n/ intrvi8
The second inter(iew is conducted by future superisors and the
employees and assed throu!h the method of case study and
presentation.
Recruitment And Selection 22 22
DE"ELOPMENT AND E"ALUATION
MANGEMENT TRAINING
1ommercial /nion offers e<cellent trainin! for employees.
whiche(er career path employees chose leadin! ed!e technolo!y
allows them to focus on e<ceedin! the customers e<pectations.
Trainin! starts the moment a person @oins, either at the /6
office or at :IA in 1roydon or %ondon. It includes specially
desi!ned courses. In /6 the trainin! process takes place in three
phases.
T0 -ir!t trainin6 p0a!
In the .irst phase the employees spend time in each department
to build an understandin! of the comple<ities of insurance at
e(ery le(el. &t the same they are in(ol(ed in li(e pro@ect work,
either alone or in a team, or studyin! for professional e<ams.
&lon! with the (ocational mana!er employees a!ree which of the
optional trainin! elements would best supplement their trainin!
pro!ram.
Recruitment And Selection 23 23
T0 Sc.n/ trainin6 p0a!
The $econd Phase of trainin! normally starts around the end of
the employees fist year. It is more speciali"ed, allowin! the
people to add dept of knowled!e in a particular area and to take
on more responsibility. -mployees by this time become full time
member of a workin! team.
Towards the end of the second year of their performance, the
employees are measured a!ainst a benchmark and they will be
ready to compete for the @obs they want within the company.
Trainin6 Pr.6ra:! -.r t0 t8. !i/! .- Oprati.n!%
The two sides of operations ha(e different trainin! pro!rams.
-ach takes about three years and !i(es an o(er(iew of the life
and pension business, culminatin! in a responsible mana!ement
position for those who demonstrate the ri!ht abilities.
Trainin6 at t0 C,!t.:r! !rvic cntr
Jorkin! in a 1ustomer $er(ice 1enter employees come into
direct contact with intermediaries and customers. They learn
about the business from the bottom up, carryin! out the clerical
procedures that employees will later man!e. In the closin! sta!es
Recruitment And Selection 24 24
of trainin! the employees will be !i(e a mana!ement position with
total accountability for the work of up to 1' staff.
Trainin6 at t0 Ha/ .--ic
Jithin Ha/ O--ic the work is more technical and pro@ect
based and the emphasis is on lon! term plannin!. The first
re#uirement is to make oneself familiar with the many different
departments, their systems and procedures. &fter that the
employees will !et in(ol(ed in pro@ect work, with responsibility for
the o(erall de(elopment of a particular system or area of work
durin! the final phase.
In Pakistan trainin! is also different for the two operations i.e. at
the :IA and the 1$1. .or both of these the company offers a
Initial Trainin! 1ourse. &lso the company pro(ides its employees
with a .irst rate An 8oin! trainin! on the @ob to its people. This
on !oin! trainin! is similar to trainin! at /6 but is not detailed
and comprehensi(e. In this respect the trainin! and de(elopment
of the employees is much better at /6.
Recruitment And Selection 25 25
CAREER PLANNING AND EMPLOYEE FUTURE
The company paces a lot of importance in pro(idin! a !ood future
for its employees. Both the trainin! routes pro(ide employees
with an e<cellent opportunity to pro!ress rapidly. Becently the
company has seen many people pro!ressin! (ery #uickly to senior
roles.
In Pakistan as well this aspect is not i!nored. The mana!ement
makes it clear that it has !ood future for it employees and it5s
the employees who ha(e to make use of it. .or this purpose the
company has de(eloped a path which the employees can follow to
fulfill their future aspirations.
1&B--B P&T:
The career path for the people @oinin! as de(elopment officers is
&s follows)
The career path of a de(elopment officer at 1/%&P is as follows)
* Fe(elopment Afficer
/nit 0ana!er
$enior /nit 0ana!er
&ssistant Branch 0ana!er
$atellite Branch 0ana!er
Recruitment And Selection 26 26
Branch 0ana!er
Be!ional 0ana!er
PLACEMENT
In /6 a person5s preference is taken into consideration as far as
possible when makin! an offer. Jhat is the persons back!round,
hisIher area of interest, and hisIher inclination towards a
particular type of work. &ll these factor are taken into account.
In Pakistan this aspect in not paid a lot of importance. People are
placed not accordin! to their preferences instead they are
offered @ob that is a(ailable at that time. It does not matter if
that is what the employee prefers or not.
Recruitment And Selection 27 27
COMPENSATION AND PROTECTION
BENEFITS OFFERED
There are a lot of benefits offered to 1/ employees. The
benefits offered in /6 are much better than those offered in
Pakistan. The benefits offered to /6 employees are)
17 day5s holiday= increasin! with len!th of ser(ice> plus public
holidays,
.le<ible workin! hours = which can add 1 day5s holiday per
year>
$ubsidi"ed house purchase
Profit sharin!
%ow cost insurance and pri(ate heath care
$ubsidi"ed lunches and luncheon (ouchers
-<cellent pension scheme
Interest free season ticket loans
1areer Hbreak scheme
The benefits offered to Pakistani employees are)
?' day5s holiday
Recruitment And Selection 28 28
Pri(ate health care
$ubsidi"ed lunches or luncheon (ouchers
-<cellent pension scheme.
MOTI"ATION
.or this aspect the company has !uidance for its branches all
o(er the world. 1/ beli(es that keepin! it employees satisfied and
moti(ated is the most important aspect for success. Pakistan5s
method and policy are in line with /65s. there are many incenti(es
and bonuses offered to moti(ate the people and to keep their
performance at a certain le(el.
INCENTI"ES
There are (arious incenti(es offered to moti(ate people to
achie(e the set tar!et. The ac0iv:nt tar6t! are clearly
communicated throu!h the OYarl; Incntiv Pr.6ra:<. The
pri"es offered are
0onthly 1ash Pri"e
Luarterly 1ash Pri"e
&nnual Pri"es
&nnual 1on(ention
Recruitment And Selection 29 29
BONUSES BONUSES
To moti(ate people to !i(e and promote !ood business philosophy,
the company !i(es Ann,al Pr!i!tnc; B.n,! if the employee
achie(es hi!h le(els of Persistency.
&lso a Rcr,it:nt B.n,! is !i(en if a employee introduces a
person who @oins the company and complete the Initial Trainin!
1ourse. Increases are !i(en if that person performs to a certain
le(el.
These bonuses and other compensation method will be discussed
in detail later.
EMPLOYEE RELATIONS
SUPERIOR5SUBORDINATE RELATIONSHIP
The superior subordinate relationships are much more rela<ed
and friendly in the /6. There is fist name basis and an open door
policy.
In Pakistan these relationships are more stiff and ri!id. There is
a lot of formality. The subordinate cannot use the first name of
the superior , there is always a O$&:IBP attached with it. &s
Recruitment And Selection 30 30
re!ards to open door policy it is not as ri!id. The subordinates
don5t ha(e !et an appointment or pre(ious confirmation to see the
boss. The superiors are approachable.
E=CERCISING AUTHORITY
The superiors in the /6 do not lay a lot of emphasis on e<ercisin!
undue authority. They ha(e a (ery friendly, supporti(e, and
!uidin! kind of attitude towards the subordinates. They try to
help in as many ways as possible so that the subordinates learn,
!row and !i(e !ood results.
This situation in Pakistan is not like in the /6. The superior in
Pakistan always ha(e thus fear of losin! their authority. That is
why they e<ercise their authority (ery strictly and try to keep
e(erythin! under their control. They feel that if they !i(e a lot
of le(era!e to their subordinates then they mi!ht perform
better than them mi!ht lea(e them behind. Because of this
attitude there is no dele!ation of authority and responsibility.
Recruitment And Selection 31 31
TOP LE"EL MANAGEMENT
0ost of the people at the top in the /6 are older people ha(in!
many years of e<perience behind them. This is because of the
-uropean influence of hi!hly re!ardin! the wisdom of the
e<perienced people.
In Pakistan the situation is different. The top;le(el mana!ement
of 1/%&P comprises of youn!er people as compared to /6. 1/%&P
has top mana!ers who are in their '5s. There are (ery few older
people. The reason for this is that the culture and Pakistani
en(ironment lacks people who ha(e many years of e<perience with
the ri!ht education and #ualifications. Therefor the company has
to hire youn! #ualified mana!ers.
STUDY OF COMPENSATION AND PROTECTION METHODS
AT CULAP
0any people make a hu!e success of sellin! %ife Insurance
throu!hout the world. These people become successful because
they learn the secret of success in our business. The secret is
that there no secret to success. &ny one can succeed. &ll you
Recruitment And Selection 32 32
need is to be prepared to put in hard work, think smart and use
the 1/%&P sales cycle techni#ue. Then success will chase you and
not the other way round. $imply or!ani"e yourself, your
prospectin!, approachin! and the rest will follow That is a 1/%&P
promise. Co one who makes appointments and completes Personal
.inancial Be(iews e(ery week e(er fails.
LE"ELS OF PRODUCTI"ITY
The company tar!ets to its sales force to achie(e. Cormally a
sales person looks to ac#uire two clients a week with an a(era!e
of Bs. 7'''I; premium. Those who will win pri"es will probably do
better but this is a yardstick to measure the performance of the
employees. The company enocura!es its people to O 8o for itP
O.ly hi!h and !o a little hi!herP.
INCENTI"ES
There are a lar!e number of really attracti(e cash pri"es on
offer durin! 1 an year that e(ery one has an e#ual and fair chance
of winnin!. The company ac#uaints e(ery person with all the
pri"es and the #ualifications re#uired for each pri"e throu!h a
publication. This is done so that the employees make a mission to
Recruitment And Selection 33 33
become a winner.
Fifferent cash pri"es competition are hesl durin! the year which
moti(ates the people to !i(er their best. &lso a con(ention is held
in P1 Bhurban.

M.nt0l; Ca!0 Pri>:
The top producin! Fe(elopment Afficer recei(es a tidy sum of
B$. 2,2''I; and a certificate to record hisIher achie(ement.
',artrl; Ca!0 Pri>
The top producer in the #uarter recei(e Bs. 7,2''I;. This pri"e
will be in the form of cash and naturally this money can be used
as one wishes. The employee can splash it on self and the family
or mi!ht like to sa(e it. The choice is theirs.
The /nit 0ana!er whose team produces the hi!hest .E&PI will
recei(e Bs. 1','''I;.
Both winners of the #uarter awards will recei(e certificates.
Ann,al Pri>!:
There is a ran!e of pri"es to really aim for and to ensure that
employees !i(e their best, not only to !ain reco!nition within the
Recruitment And Selection 34 34
company, but also to financially better oneself.
Ten hi!hest producers of the year will win pri"es. The first pri"e
is
& trip fbr two, to what Is
This trip is to a place that is commonly known as :ea(en on
-arthM ; Fubai.
:ere the employees spend ? ni!hts and days. The
company arran!es the stay at the famous &(ari Towers
which is renowned for its !enerous hospitality and lu<ury
accommodation. The employees are encoura!ed to work
hard to !et the rewards of Fubai where they can en@oy
lo(ely beaches, water sports, shoppin! and e<citin! ni!ht
life. To further enhance the employees moti(ation and
pleasure the company, In addition to the return fli!ht and
the accommodation, !i(es employees Bs. 22,''' to spend .
The other pri"es are listed below
$econd Pri"e9 Bs. 22,'''I;
Third Pri"e) Bs. 2','''I;
.ourth Pri"e) Bs. 12,'''I;
.ifth Pri"e) Bs. 1','''I;
$i<th to Tenth pri"es) Bs. 2,''' each.
Recruitment And Selection 35 35
Caturally, all top ten producers will recei(e certificates.
Ann,al C.nvnti.n
This con(ention is held for the Fe(elopment Afficers, /nit
0ana!ers and Branch 0ana!ers. &ll of the abo(e can all #ualify
for the annual con(ention which usually takes place in the first
#uarter of the year. Those who #ualify can look forward to a time
of their life because the company pays for the employees and
their spouseGs air tickets and hotel accommodation, for three
ni!hts at the most beautiful and lu<urious resort hotel in
Pakistan; P1 Bliurban.
BONUSES
There are basically two kind of bonuses for the de(elopment
officers.
(% Ann,al Pr!i!tnc; B.n,!
T0i! bonus is !i(en so that the employees to hi!h #uality work
throu!hout the year. The employees are told that they should
!i(e business that is hi!h #uality because hi!h #uality business
stays on the books and therefore helps them, helps the client and
it also helps the company.
Recruitment And Selection 36 36
To promote !ood business philosophy, the company will !i(e its
employees an annual bonus if they achie(e hi!h. le(els of
persistency. -(eryone can #ualify for this bonus. In fact the want
e(eryone to #ualify for this bonus. The amount of bonus depends
on the employees performance alone. It could be as much as 2,
of the employees total first year re!ular premium.
7% Rcr,it:nt B.n,!
&lso a recruitment bonus is !i(en to employees eho brin! in !ood
people to the company to work. 1ommercial /nion tells its
employees that it is their company and that the future
prosperity of the company depends on how successful the
company and its employees are in are in persuadin! #uality
people it, and help to pro(ide clients with par e<cellence
insurance ser(ices.
The company !i(e the Fe(elopment officer ; B$. 1,''' for
introducin! any person who @oins us and completes the initial
Trainin! 1ourse. It does not stop there.
&n additional Bs. 2,'''I; and Bs. 1','''I; if your
introduction performs to a certain le(el.
This means that you can earn up to BB.
1
4,AAAI;per
introduction.
Recruitment And Selection 37 37
REMUNERATION
The company claims that their remuneration packa!es are
amon!st the best in Pakistan. They always pay what they consider
to be the best rate for any !i(en !rade. But o(er and abo(e the
basic pay the employees can earn whate(er is their wish throu!h
their efforts in the form of commission, o(erride and bonuses.
8i(en below are appro<imate financial packa!es en@oyed by the
(arious positions in the sales force structure.
Dvl.p:nt O--icr
B$ ,''' Q commissions Q bonuses Q incenti(es
Unit Mana6r
B$. 1',''' Q commissions Q bonuses Q o(erride Q incenti(es
Sni.r Unit Mana6r
B$ 12,''' Q commissions R bonuses Q o(erride Q incenti(es
A!!i!tant Branc0 Mana6r
B$ 22,2'' Q commissions Q bonuses Q o(erride Q incenti(es Q car
Satllit Branc0 Mana6r
B$ 22,2'' Q commissions Q bonuses Q o(erride Q incenti(es Q car
Recruitment And Selection 38 38
Branc0 Mana6r
B$ 2',''' Q o(erride Q car
R6i.nal Mana6r
B$. 4',''' Q o(erride Q car
Mini:,: ',ali-icati.n! -.r incntiv!:
M.nt0l; Pri>:
:i!hest .irst Eear &nnuali"ed Premium income =.E&PI> of the
month.
',artrl; Pri>:
.or the Fe(elopment Afficer, producin! the hi!hest .E&PI,
pro(ided a minimum of 14 policies sold with BB. 2',''' re!ular
FYAPI%
B$ 1',''' to the /nit 0ana!er whose team, .E&PI, pro(ided
policies sold re!ular .E&PI, pro(ided a minimum of ' polices sold
with Bs. 4'',''' re!uler .E&PI
Recruitment And Selection 39 39
Ann,al Pri>:
There are a number of pri"es in the year included in the
remuneration packa!e.

.irst Pri"e)
To the hi!hest producin! Fe(elopment Afficer =pro(ided a
minimum of 2' policies $A%F with B$. 72',''' re!ular .E&PI>.
$econd pri"e)
To the second hi!hest producin! Fe(elopment Afficer =pro(ided
a minimum of ?' policies sold with B$. 2',''' re!ular .E&PI>
Third pri"e)
To tile third hi!hest producin! Fe(elopment Afficer =pro(ided a
minimum of 22 policies sold with B$. ?72,''' re!ular .E&PI>.
.ourth pri"e)
To the fourth hi!hest producin! Fe(elopment Afficer =pro(ided a
minimum of 2' policies sold with B$. ?'',''' re!ular .E&PI>.
.ifth pri"e)
To the fifth hi!hest producin! Fe(elopment Afficer =pro(ided a
minimum of 12 policies sold with B$. 222,''' re!ular .E&PI>.
$i<th to Tenth pri"es)
Recruitment And Selection 40 40
To the si<th to tenth hi!hest producin! Fe(elopment Afficers
will #ualify =pro(ided a minimum of 1' policies sold with B$.
12',''' re!ular .E&IGI>
Ann,al Pr!i!tnc; B.n,!:
.or all Fe(elopment Afficers who sold at least 2 policies in a
year, with first year annuali"ed. premium of B$. 2'',''')
If persistency, based on payment of .irst Benewal Premium, is
!reater than 7', but less than 72, SS 2, of first year
re!ular premium
If persistency, based on payment of .irst Benewal Premium, is
!reater than 72, but less than 9',SS ?, of first year
re!ular premium
If persistency, based on payment of .irst Benewal Premium, is
!reater than 9', but less than 92,SS , of first year
re!ular premium
If persistency, based on payment of .irst Benewal premium, is
!reater than 92, but less than 1'', SS 2, of first year
re!ular premium
Recruitment And Selection 41 41
Rcr,it:nt B.n,!:
.or all Fe(elopment Afficers who introduce a Fe(elopment
Afficer)
If the recruited Fe(elopment Afficer passes the basic
trainin! 1ourse Pri"e of B$. 1,'''I;
If the recruited Fe(elopment Afficer does Bs. 1'',''' .E&PI
with at least 7 policies, within the first .12 months of
recruitment) Pri"e of Bs. 2,'''I;
If the recruited Fe(elopment Afficer does B$ 22',''' .E&Pl
with at least 17 policies, within first 12 months of recruitment
pri"e of B$. 1','''I;
CAREER PROMOTION TARGETS:
',ali-icati.n F.r A Unit Mana6r
4' paid policies in a year
Personal production .EP B$. ?4','''
6ey Performance Indicators
In a. year, a /nit 0ana!er should)
sell all the products in the 1/%&P ran!e
Recruitment And Selection 42 42
sell three riders =at the least>
maintain persistency of 72,
ha(e no outstandin! complaints
satisfactory performance in course e<amination
B-C-.ITI1A00I$$IAC
Bs. 1',''' p.m.. Q .2, AIB Q ?2, PP
T. Maintain A Unit Mana6r C.ntract
0inimum number of career FAs 1' .EP Bs. 2,77','''
7' paid policies in a year Personal production. 7 paid
policies
6ey Performance Indicators)
In a year, a /nit 0ana!er should)
Recruitment And Selection 43 43
sell all the products in the G1/%&P ran!e
sell three riders =at Te least>
maintain persistency of 72=I1c,
ha(e no outstandin! complaints
satisfactory performance in course
e<amination
',ali-icati.n F.r A Sni.r Unit Mana6r
0inimum number of career FAs 12
.EP Bs. ,?2','''
72' paid policies in a year
Personal production ?4 paid policies
K; Pr-.r:anc In/icat.r!:
In a year, a $enior /nit 0ana!er shouUd)
sell all the products in the 1/%&P ran!e
sell three riders =at the least>
maintain persistency of 72,
ha(e no outstandin! complaints
satisfactory performance in course e<amination
Recruitment And Selection 44 44
B-C-.IT31A00I$$IAC
its. 12,''' p.m. Q .2, Q 1, ?4@ A ?2, PP
T. Maintain Sni.r Unit Mana6r! C.ntract
0inimum number of /nits 1
0inimum number of career FAs 2' =1' self Q 1' unit>
.E. Bs. 2,74','''
94' paid policies in a year
Personal Production 2 paid policies
6ey Performance Indicators)
In a year, a $enior /nit 0ana!er should..
sell all the products in the 1/ %&P ran!e
sell three riders =at the least>
maintain persistency of 72,
ha(e no outstandin! complaints
Recruitment And Selection 45 45
',ali-icati.n F.r An A!!i!tant Branc0 Mana6r
0inimum number of /nit 0ana!ers 2
0inimum number of career FAs ?'
.EP Bs. 7,4'?,2''
1247 paid policies in a year
6ey Performance Indicators)
In a year, an &ssistant Branch0ana!er should.
sell all the products in the 1/%&. ran!e
sell three riders =at the least>
maintain persistency of 72,
ha(e no o%ltstandin! complaints
satisfactory performance in course e<amination
Bs. 22,2'' p.ni. Q 7'' cc car
1ompany benefits .2, Q 1, 'Ik
',ali-icati.n F.r A Satllit Branc0 Mana6r
0inimum number of /nit 0ana!ers 2
0inimum number of career FAs ?'
.E&P B$. 7,4'?,2''
1247 paid policies in a year
6ey Performance Indicators)
Recruitment And Selection 46 46
In a year, a $atellite Branch 0ana!er should)
sell all the products in the 1/%&P ran!e
sell three riders =at the least>
maintain persistency of
BC?
4c
ha(e no outstandin! complaints
satisfactory performance in course e<amination
Bs. 22,2'' p.m Q 7'' cc car 1ompany benefits
2, Q 1, 'Ik
NET&ORK OF EFU OFFICES
CITY NUMBER OF BRANCHES
6arachi 24
:yderabad 1
$ukkar 1
Luetta 1
Bahim Ear khan 1
8oth 0achi 1
0ultan 2
.aisalabad 2
%ahore 12
8u@ranwala 2
$ialkot 1
3helum 1
Bawalpindi ?
Islamabad
Recruitment And Selection 47 47
Peshawar ?
&bbotabad 1
0ardan 1
OB#ECTI"ES OF THE COMPNAY
The company says that all its customers they are hi!hly
satisfied with the (alue for money that its products and
ser(ice pro(ide.
The employees rate the company as one of the best companies
in the world to work for.
-./5s return to its shareholders is at the top of the
companies in the industry.
&nd the company5s competitors say that -./ are a difficult
company to compete with.
The !rowth rate of the company consistently e<ceeds the
industry best performer at a sustainable (olume of business
that allows it to achie(e superior financial stren!th to fulfil its
obli!ations and utili"e its shareholdersG e#uity efficiently.
The companies performance alone is the key dimensions of
competiti(eness, producti(ity, inno(ation, #uality, cost and
customer ser(ice keeps continuously impro(in! to si< si!ma, i.e.
perfection.
MANAGEMENT STYLE AND CULTURE AT EFU
It is companies policy to ali!n and inte!rate the interest of the
employees with best interest of the company for the collecti(e
!ood of all consistent with !oals of the company. To achie(e the
company has included the followin! in its mana!ement style)
Recruitment And Selection 48 48
Apen 1ommunication
Participati(e 1limate
.le<ible Ar!ani"ation
Ce!otiated 8oals
$elf Firected Jork &chie(ement
:i!h Luality Professional %eadership &t &ll %e(els.
It is the companies endea(or to continuously benchmark its
or!ani"ation structure, mana!ement system and rules and
procedures with best in the class mana!ement practices, and to
insure they are ali!ned and inte!rated with the companies (ision
at all times. The endea(or is to !et e(eryone committed to the
achie(ement of our !oal;to be a world class company.
Or6ani>ati.nal !tr,ct,r .- EFU li-
1hairman
Recruitment And Selection 49 49
0ana!ement Be(iew
1ommittee
&d(isor :B
de(elopment
RM DIR RM DIR GM OPER GM OPERBRANCH N E=EC DR BRANCH N E=EC DR
GM ORG GM ORG TRAINING TRAINING
Information &ccounts
Sal! /iv Gp li- a/vi!.r
N8 D,!in!!
1laim ser(ices
HUMAN RESOURCE DE"ELOPMENT AT EFU
H,:an r!.,rc C0alln6! :
The corner;stone of -./5$ :uman Besources Fe(elopment
Recruitment And Selection 50 50
strate!y rests on the belief that success and accomplishment of
the 1ompany will be determined by the success and
accomplishment of its employees.
&ccordin! to the company5s mana!ement the ma@or challen!e in
reali"in! the company5s (ision for !rowth and market leadership
is, therefore, to attract, de(elop, moti(ate and retain people of
the hi!hest caliber and potential. The belie(es that its (ision will
best be achie(ed in an en(ironment that encoura!es all members
to lead a satisfyin! work;life.

The company stri(es to offer its employees a challen!in! and
stable workin! en(ironment, !ood compensation, and an
opportunity for personal !rowth, de(elopment and ad(ancement.
H,:an R!.,rc an/ EFU+! 8.r@ nvir.n:nt
The company5s intention is to build mutual respect, confidence
and trust in all its relationships based upon our commitment to
inte!rity, honesty, and competence. The company shares success
with the people who make success possible. To!ether with its
employees the company wants to build a #uality or!ani"ation that
they are proud of and; committed to.
&t -./ all are treated e#ually, fairly and @ustly. The company
wants its people to feel respected, listened to and, to ha(e a
Recruitment And Selection 51 51
(oice in how the affairs of the company are mana!ed. &bo(e all,
the company wants friendships, balanced personal and
professional li(es, and to ha(e fun in their endea(ors.
PERSONNEL AT EFU LIFE
In total there are 7'' staff employed by the -fu life. &t the
head office only 7' are salaried. 0ost of the personnel are
commission based. The break up of the 7'' personnel is as
follows5
.ield force 42' ;;;; 22' salaried Q commission
'' only commission

0ostly the sales people enterin! are non salaried = commission
based> but if their performance impro(e and is consistent these
people become salaries. This transformation usually takes place
durin! a probation period in which the people are e(aluated.
In the !roup life business there are only 12 people in the field
forceI
E'UAL EMPLOYMENT OPPORTUNITY
-./ is committed to a policy of e#ual employment opportunities
Recruitment And Selection 52 52
and welcomes people irrespecti(e of their race or !ender. &ll
appointments arc made on the basis merit and candidates are
placed in @obs for which they are best suited.
CAREER PLANNING AND LIFE5 LONG EMPLOYEMENT
The companies pro(ides its employees with life;lon! employment
and career !rowth. The company5s employee de(elopment and
#ualification enhancement pro!ram pro(ides opportunity to
talented people to !row and rise to the hi!hest le(els of mana!e;
ment throu!h a policy of promotion from within and continuous
de(elopment. In return the company demands from its employees
dedication, hard;work and Professionalism.
HR FUNCTION AT EFU
T0 HR /part:nt pr-.r:! a 8i/ ran6 .- activiti! t0at
Dn-it t0 c.:pan; an/ it! :pl.;!%
The company hold its employees in the hi!hest esteem and does
all it can to increase their self;worth so that they can achie(e
fulfillment and full potential.
Recruitment And Selection 53 53
Pay and performance are linked and rewards and reco!nition !o
to those who consistently out perform
Throu!h the :B function the work of all employees is directed
throu!h a comprehensi(e performance mana!ement system
that interlocks business ob@ecti(e with indi(idual !oals tar!ets
and work plans
-(aluation of employee performance results and achie(ements.
.eed;back and counselin! on results and performance)
.ormin! the basis for performance and potential re(iew.
0erit increases
$alary positions
1areer plans
Trainin! and de(elopment.
PREPARATION AND SELECTION%
Recruitment And Selection 54 54

RECRUITMENT
Becruitment for the sales force at -./ life is mostly done by the
method of O -0P%AE-- B-.-B&%$P. The employee who
refer people to or!ani"ation are e<pected to brin! in people who
are #ualified and capable of meetin! the @ob re#uirement. This
method is used because this method ensure that people @oinin!
the or!ani"ation will know before hand what s e<pected of them.
The company prefers not use any ad(ertisement for recruitin! as
it does not want to attract all kinds of personnel people for the
(acancies. &lthou!h it some does put in ad in newspapers
specifyin! (ery carefully and in detail the nature of work and the
kind of skills needed.
$-%-1TIIAC 1BIT-BI&
The selection criteria is is simple. Thew applicants should be
maured persons as they ha(e to con(ince people to buy somethi!
for the future. There are two main re#uirement
& Bachelors de!ree
Recruitment And Selection 55 55
&!e should be 2? Q
The application process is simple. The applicants ha(e to fill out a
application form and ha(e to submit their documents.
DE"ELOPMENT AND PLACEMENT
Ance the employee are hired they are oriented to the company5s
policies and procedures. &fter that they are placed in @obs and
!i(en the trainin! needed to be producti(e .
T:- de(elopment and placement at -./ life for the people
@oinin! from the sales personnel le(el consist of three different
sta!es which can be summari"ed as follows)
Orintati.n
2F.,n/ati.n c.,r!3
Trainin6
Recruitment And Selection 56 56
I!!,anc .- licn!!
Plac:nt 2 Branc0in63
ORIENTATION
Arientation in(ol(es introduction to the company its people, and
the en(ironment. It is mostly the responsibility of the person who
refers the person to the or!ani"ation. This is co(ered in the
foundation course.
TRAINING
Trainin! basically in(ol(es teachin! the skills re#uire for the @ob.
.or the sales @ob mostly sellin! skills are tau!ht and then the
employees are tested on those skill. %ike orientation , the
foundation course also looks after the initial trainin! aspect.
Ather than that there is on the @ob trainin!.
Recruitment And Selection 57 57
T0 -.,n/ati.n c.,r!
The foundation course se(ers the purpose of orientation and
trainin! both. It is a one week course that persons @oinin! -./
life take. It is basic course and consists of introductions to
company, its people and the industry. &t the end of the
foundation course there is test. The person are issued a license
only if the clear the test. The contents and the basic structure
of the foundation course is as follows)
1ompany back!round
:istory of life insurance
8eneral co(era!e on life insurance
The company5s products
Basic sellin! techni#ues
Test for issuance of license
PLACEMENT TO THE BRANCHES
&fter selection the at head office and the issuance of the license
the employees are placed to their respecti(e branches. 0ostly
those branches are selected in which the person who referred
the person works. In;fact in most cases the new employee is
Recruitment And Selection 58 58
attached with the same person for additional trainin! and
!uidance
PERFORMANCE APPRIASAL
&t -./ life for performance appraisals #uarterly tar!ets are set
and the results are compared with the tar!et set. &lso there is a
method to check performance by keepin! at standard that all
non;salaried people can become salaried if they achie(e a certain
le(el of performance.
If a person become a salaried employee and his performance fall
them he is a!ain con(erted to non; salaried employee.
1ompensation and protection
There pay and remuneration structure at -./ life is different
than that at 1/%&P. The personnel are paid accordin! to their
status. The status depends on whether the person are salaried or
Recruitment And Selection 59 59
non salaried. Thus two different type of payin! structure are
e<istin! to compensate the sales force.
B-0/C-B&TIAC
$alaried employees ;;;; basic salary Q 2', commission
Con salaried employees ;;;; only ', commission
B-C-.IT)
Con salaried
There are no benefits for the non salaried people
$alaried
.or the peole who are salaried employees of -./ life there are
benefits and ser(ice. The benefits are as follows)
Pro(ident fund
0edical = e#u(alent to one basic salary>
8roup life insurance
?' day lea(e
0ATIK&TIAC
Recruitment And Selection 60 60
To moti(ate its sales force the :B department at the -./ life
uses (arious techni#ues so that there is !reater incenti(e for
employee to for. This moti(ation the company belie(es will create
a desire amon! to employee to perform better. &nd !ood
performance would result in reward and appreciation leadin! to
@ob satisfaction. This satisfaction them a!ain become a
moti(ator to achie(e e(en better performance . Thus it is a
complete cycle
MOTI"ATORS
GOOD PERFORMANCE
Recruitment And Selection 61 61
RE&ARD4 APPRECIATION
#OB SATISFACTION
Recruitment And Selection 62 62