THE STUDY OF RECRUITMENT & SELECTION

PROCEDURE OF INSURANCE ADVISOR/AGENT

AT
Bharti AXA Life Insurance Noida.

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE

AWARD OF MASTER OF BUSINESS ADMINISTRATION

(SESSION: 2013-2015)
AFFILIATED TO:
IFTM UNIVERSITY, MORADABAD
SUBMITTED TO:

SUBMITTED BY:

.
FACULTY OF MBA DEPT.

..
MBA-IIIRD SEMESTER
ROLL NO:.

IFTM UNIVERSITY, MORADABAD

ACKNOWLEDGEMENT
I wish to express my gratitude to AXIS BANK for giving me an opportunity to be
a part of their esteemed organization and enhance my knowledge by granting
permission to do summer training project under their guidance.
I am deeply indebted to my guide, Mr. PANKAJ CHAUHAN, Branch Manager,
AXIS Bank, for his valuable and enlightened guidance. He provided me with the
opportunity to learn in the bank and spared his valuable time to help me.
My special thanks to Mrs. MEGHA TIWARI, Deputy Manager, AXIS Bank, for
providing great support and help whenever was required.
A special thanks to my faculty guide, Dr, TAMINDER KAUR for being the
chief facilitator of this project and helped me enhance my knowledge in the field
of banking sector.
This project has been possible due to the support of several wonderful individuals.
I would like to thank many unknown individuals, with whom I interacted. All of
them with their due cooperation and motivation made the completion of this
project successful. I would like to thank them all.
Last but not the least I am highly obliged to my friends and colleagues for their
help and support. The learning during the project was immense and valuable.
Regards,

CONTENTS
1. Synopsis
2. Executive summary
3. Industry profile
4. Company profile
5. Objective of study
6. Conceptual framework
7. History of insurance
8. Types of insurance policies
9. Axiss policies or products
10. About life insurance advisors
11. Recruitment and selection procedure of advisors
12. Conclusion
13. Recommendations
14. Bibliography

Synopsis

PROJECT TITLE: The study of recruitment and selection

procedure of insurance advisor/agent.

OBJECTIVE:
To understand the procedure of recruitment and selection of
insurance advisor.
To know about life insurance its benefits and need.
To find out possible advantages of insurance advisor in AXIS
Bank.
To find the suitable person for the recruitment of insurance
advisor.

INTRODUCTION OF THE COMPANY:

Bharti AXA Life

Insurance is a joint venture between Bharti, one of Indias leading business

groups with interests in telecom, agri business and retail, and AXA, world
leader in financial protection and wealth management. The joint venture
company has a 74% stake from Bharti and 26%stake of AXA.
The company launched national operations in December 2006. Today,
company have over 8000 employees across over 12 states in the country and
a national footprint of distributors trained to provide quality financial advice
and insurance solutions to the large Indian customer base. Open first branch
office in Hyderabad. Introduces 2 unit linked products- future confident
and wealth confident

RESEARCH METHODLOGY:
Data was collected from primary as well as secondary
sources. Customer data was partly supplied by my industry
mentor and was partly by my own source.
Data was segmented according to N.C.R areas.
Sometimes meeting were pre-arranged and the prospectus
were somewhat known about the matter to be discussed and
sometime it would be purely a cold call.
A different type of approach was adopted for each profile
likewise:- Chartered Accountants, Servicemen, Selfemployed, Housewifes and students.

INTERNAL GUIDE: Mr.Gaurav Garg

SUBMITTED BY :

Ms. Misha Saini

EXECUTIVE
SUMMARY

Executive summary
A well developed and evolved insurance sector is needed for economic
development as it is provides long term funds fir infrastructure
development and the same time strengthen the risk taking ability.
Life insurance is also now being regarded as a versatile financial planning
tool in India. India being a country having a huge population of around one
billion people with only 33.2% of the insurance population in India
possessing life insurance. The country has a vast potential that has been left
untapped till now.
Therefore what this has led to is the flooding of the life insurance market
with a number of private players which in collaboration with recognized
foreign companies promises to deliver the best of services at the lest price.
All these companies are trying to grasp the maximum of market share in life
insurance sector. For that they are recruiting world-class insurance
advisors/agents who sell their product or policies. Who are these
advisors/agents? Who can become an advisor/agent? How they are recruited
in Bharti AXA Life Insurance? , How much they can earn as an insurance
advisor/agent, these are some questions we have tried to answer in our
project report.
This report is trying to give the detail about recruitment and selection
process of the life insurance advisors. Thus by going through the report one
will get to know about the life insurance and recruitment & selection process
of life insurance advisors/agents in Bharti AXA Life Insurance.

INDUSTRY
PROFILE

Industry Profile
The insurance landscape in India is undergoing major change. Closed to
foreign competition since nationalization in 1956, the life insurance had
been protected from competitive pressures. Now, with the re-opening of the
sector, several new players have entered the scene.
The game is old but rules are new and still developing. Ensconced in a
monopoly run from the nationalization days beginning in 1956, the
insurance industry has indeed awakened: to a deregulated environment in
which several private players have partnered with multinational insurance
giants.
However, despite its teeming one billion population, India still has a low
insurance penetration of 1.95 per cent, 51 st in the world. Despite the fact that
India boasts a saving rate of around 25 per cent, less than 5 per cent is spent
on insurance. Therefore the insurance market is looking very vast and each
life insurance company is trying to get maximum market share in life
insurance industry.
There are lots of life insurance companies in the industry but only few are
getting good benefits and successfully trying to establish themselves. Life
insurance industry is an upcoming industry and having a huge potential for
making huge benefits. Some of the know life insurance companies are:

10

LIFE INSURANCE CORPORATION OF INDIA (LIC)

TATA AIG LIFE INSURANCE
BIRLA SUN LIFE
HDFC LIFE
AVIVA LIFE INSURANCE
BHART IAXA LIFE INSURANCE

COMPANY
PROFILE

11

Companys profile
Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the

Unit Trust of India (UTI-I)

Life Insurance Corporation of India (LIC)
General Insurance Corporation Ltd.

Also with associates viz. National Insurance Company Ltd., the New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of
India own it nor contributes any capital. The RBI was asked to contribute one-half of its
initial capital of Rs 5 crore, and given the mandate of running the UTI in the interest of
the unit-holders. The State Bank of India and the Life Insurance Corporation contributed
15 per cent of the capital each, and the rest was contributed by scheduled commercial
banks which were not nationalized then. This kind of structure for a unit trust is not found
anywhere else in the world. Again, unlike other unit trusts and mutual funds, the UTI was
not created to earn profits.
While making this point, he had in mind the practice in the US, where small pension
funds are an important class of customers for the unit trusts. The Centre accepted the
foreign expert's suggestion, and the necessary amendments were made in the draft Bill.
Thus, began corporate investment in the UTI, which received a boost from the tax
concession given by the government in the 1990-91 Budget. According to this
concession, the dividends received by a company from investments in other companies,
including the UTI, were completely exempt from corporate income tax, and provided the
dividends declared by the investing company were higher than the dividends received.
The result was a phenomenal increase in corporate investment which accounted for 57
per cent of the total capital under US-64 scheme. Because of high liquidity the corporate
sector used the UTI to park its liquid funds. This added to the volatility of the UTI funds.
The corporate lobby which perhaps subtly opposed the establishment of the UTI in the
public sector made use of it for its own benefits later. The Government-RBI power game
12

started with the finalization of the UTI charter itself. The RBI draft of the UTI charter
stipulated that the Chairman will be nominated by it, and one more nominee would be on
the Board of Trustees. While finalizing the draft Bill, the Centre changed this stipulation.
The Chairman was to be nominated by the Government, albeit in Consultation with RBI.
Although the appointment was to be made in consultation with the Reserve Bank, the
Government could appoint a person of its choice as Chairman even if the Bank did not
approve of him.
Later on in 2002 the UTI was renamed to Axis Bank.

13

VISION
OF
BHARTI AXA
LIFE INSURANCE

14

Vision of Bharti Axa Life Insurance.

To make Bharti Axa Life Insurance the dominant life pension player built on
trust by world-class people and service.
This we hope to achieve by:
Understanding the needs of customer and offering them superior
products and services.
Leveraging technology to service customers quickly, efficiently and
conveniently.
Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders.
Proving an enabling environment to growth and learning for our
employees.
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment
to 5 crore values Integrity, Customer first, Ownership and Passion. Each of
these values describes what the company stands for, the qualities of our
people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity,
where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there
are no limits to our growth.

15

OBJECTIVE OF
THE STUDY

16

Objective Of Study: To understand the procedure of recruitment and selection of Life

Insurance advisors.
To know about Life Insurance, its benefits and need.
To find out possible advantages of Insurance advisor in Bharti Axa
Life Insurance.
To find the suitable person for the recruitment of Insurance advisor.

17

CONCEPTUAL
FRAMEWORK

18

Conceptual Framework
What is Life Insurance?
Life insurance is a contract providing for the payment of a sum of money to
the person assured or failing him to the person entitled to receive the same
on the happening of cetin event.
Uncertainly of death is inherited in human life. It is this rise, which gives
rise to the necessity for some form of protection against the financial loss
arising from the death. Insurance substitutes this uncertainty by certainly.
The objective of insurance is normally to provide
a. Family protection and/or
b. Provision for old age.
Why Life Insurance?
You think twice before taking the plunge into buying life insurance. Is
buying insurance is necessity now? Spending an extra amount as premium at
regular intervals where do you not see immediate benefits does not seem a
necessity at the moment. May be later.
Well you could be wrong. Buying insurance cannot be compared with any
other form of investment. Insurance gives you a life long benefits and the
returns will definitely come but only when you need it the most i.e. at the
right time. Besides buying insurance early in life is one of the wise decisions
you could take. Because the premium you would be paying would
comparatively lower.
Most important of all it provides you with the unique sense of security that
no other form of investment provides. It gives you a sense of financial
support especially during that time of crisis irrespective of the fluctuation in
the stock market. Insurance provides for your career goals right from the
childhood years.

19

If the eating member of the family is no more your childs educational need
will not suffer. In fact his higher education too will be provided for. You
need not spend sleepless night thinking about how to save for childs
marriage. Life insurance will take care of that typical once-in-a-life-time
spending on marriage.
An accident or a disability may be devastating but a life insurance policy can
be of utmost support for the family during such times too. Besides it provide
for addition benefits such as bonuses. You need not worry about the your
retirement years. The rising prices, taxes, and your lifestyle will be taken
care of easily. And you can relax and spend your old age in comfort and
peace.
Need for Life Insurance
The need for life insurance comes from the need to safeguard our family. If
you care for your familys need you will definitely consider insurance.
Today insurance has become even more important due to the disintegration
of the prevalent joint family system, a system in which a number of
generations co-existed in harmony, a system in which a sense of financial
security was always there as there were more earning members.
Times have changed and nuclear family has emerged. Apart from other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today
besides, the family has shrunk. Needs are increasing with time and
fulfillment of these needs is a big question mark.
How will you be able to satisfy all those needs? Better lifestyle, good
education, and your long desired house. But again you just cannot fritter
away your earnings. You need to save a part of it for the future too a wise
decision. This is where insurance helps you.
Factors such as fewer numbers of earning members, stress, pollution,
increasing competition, higher ambitions etc are some of the reasons why
insurance has gained importance and where insurance plays a successful
role.

20

Moreover, retirement, an age when every individual has almost fulfilled his
responsibilities and looks forward to relaxing can be painful if not planned
properly. Have you consider the increasing inflation and taxes? Will your
investment offer you attractive return under such circumstances? Will it take
care of your family after you? An insurance policy will definitely take care
of these and a lot more. Insurance today has opened up new vistas for every
section of society. Even for a village farmer insurance holds a lot of
potential. Considering how dependent our agriculture system is on the
monsoon, the farmer sees a dim future. The uncertainty of the monsoon too
can be taken care of by insurance. Looking at the advantages of the
insurance policy a number of farmers have gone into the insurance.
Insurance has become a necessity today. It provide timely financial as also
rewarded with bonuses.
When is the right time to buy Insurance?
Buying life insurance cannot ever be compared with other investment
decisions since it is very much contrast with those stock market investments
where you wait for the right time to buy and sell. Neither is this like
receiving tips on particular scrip doing well in the market and holding great
future prospects.
Buy life insurance at the earliest. Do you know when you will fall ill? Are
you sure about your future income earning potential? Are you sure you will
never meet an accident? If not buy insurance now.
This is because the future is always uncertain. Just as buying insurance is a
necessity so also buying insurance early in life is important too. With proper
financial planning one can work out as to how much money an individual is
entitled to after the end of a particular term. A policy that fulfill your childs
future education needs would have to be timed appropriately so that he
receives the policy amount at the time when he needs it the most.
What does the Life Insurance provide?
The proceeds accruing from life insurance policy can be utilized for
21

1. Final expenses resulting from death.

2. Guaranteed maintenance of lifestyle.
3. Replacement of income.
4. Mortgage or liquidation payment.
5. Cost of education.
6. Estate and other taxes.
7. Continuity and security of interest.
Why is Insurance superior to other form of saving?
An immediate estate is created in favor of the policyholder.
Protection in case of death.
Liquidity in case of need easy loans are available.
Tax relief income tax, wealth tax, etc.
Policies can be offered as collateral security.
Policies can be taken under M.P.W. Act 1874, to protect against
creditors.
In simple words, insurance protect against untimely losses. Insurance has
been found useful in the lives of persons both in short term and long term.
Short term needs like sudden medical costs and long term needs like
marriage expenses etc can be meet with using life insurance.

22

HISTORY OF
INSURANCE

23

History of Insurance
The story so far
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to
bear risk of the caravan trade by giving loans that had to be repaid with
interest when the goods arrived safely. In 2100 BC, the code of Hammurabi
granted legal status to the practice.
That perhaps, was how insurance made its beginning.
Life insurance, on the other hand, had its origin in ancient Rome, where
citizens formed burial clubs that would meet the funeral expenses of its
members as well as help supervisors by making some payment.
As European civilization progressed, its social institutions and welfare
practices also got more and more refined. With the discovery of new lands,
sea routes and the consequent growth in trade, medieval guilds took it upon
themselves to protect their member traders from loss on account of fire,
shipwrecks and the like.
The first step
Insurance as we know it today owes its existence to 17th century England. In
fact, it began taking shape in 1688 at a rather interesting place called Lloyds
Coffee House in London, where merchants, ship owners and underwriters
met to discuss and transact business to become one of the first modern
insurance companies.
Entry of companies

24

The first stock companies to get into the business of insurance were
chartered in England in 1720. The year 1735 saw the birth of the first
insurance company in the American colonies in Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
insurance corporation in America for the benefits of ministers and their
dependents. This was followed by the formation of Fire Insurance
Corporations, first in New York City (1787) and then in Philadelphia (1794).
However, it was after 1840 that life insurance really took off in a big way.
The trigger: reducing opposition from religious groups.
The growing years
The 19th century shows huge developments in field of Insurance, with newer
products being devised to meet the growing need of urbanization and
industrialization.
In 1835, the infamous New York fire drew peoples attention to the need to
provide for sudden and large losses. Two years later, Massachusetts became
the first state to require companies by law to maintain such reserves. The
great Chicago fire of 1871 further emphasized how fires can cause huge
losses in densely populated modern cities. The practice of reinsurance,
wherein the risks are spread among several companies, was devised
specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the
British government passed the Workmens Compensation Act, which made it
mandatory for a company to insure its employees against industrial
accidents.
With the advent of the automobile, public liability insurance, this first made
its appearance in the 1880s, gained importance and acceptance.
In the 19th century, many societies were founded to insure the life and health
of their members, while fraternal orders provided low cost, members-only
insurance.
25

In India
Insurance in India can be traced back to the Vedas. For instance,
yogakshema, the name of Life Corporation of Indias corporate headquarters,
is derived from Rig Veda. The term suggests that a form of community
insurance was prevalent around 1000 BC and practiced by Aryans.
Bombay Mutual Assurance society, the first Indian Life Assurance society,
was formed in 1870. Others companies like Oriental, Bharat and Empire of
India were also set up in the 1870-90s.
It was during the swadeshi movement in the early 20th century that insurance
witnessed a big boom in India with several more companies being setup.
As these companies grew, the government began to exercise control on
them. The Insurance Act was passed in 1912, followed by a detailed and
amended Insurance Act of 1938 that looked into investments, expenditure
and management of these companies.
As a result, the government decided nationalizes the life assurance business
in India. The Life Insurance Corporation of India was set up in 1956 to take
over around 250 life companies.
Some of the important milestones in the life insurance in India are:
1912: The Indian Life Assurance Companies Act enacted as the
First statue to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
Government to collect statistical information about both Lives
And Non life insurance business.
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interest of
The insuring people.
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
26

The India.
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 turn
witnessed over a period of almost two centuries.
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 recommended 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
The committee emphasized that in order to improve the customer services
and increase the coverage of the insurance industry should be opened up to
competition. However, at the same time, the committee felt the need to
exercise caution as any failure on the part of new players could ruin public
confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating
the minimum capital requirement of Rs. 100 crores. The committee felt the
need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act independent companies
with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.
The Insurance Regulatory And Development Authority (IRDA)
Reforms in the insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
27

statutory body in April 2000 has fastidiously struck to its schedule of

framing regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting to the
insurance sector and in particular the life insurance companies were the
launch of the IRDAs online service for issue and renewal of licenses to
agents.
The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained work force of insurance
agents in place to sell their products, which are expected to be introduced by
early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector, 12 life
insurance and 6 general insurance companies have been registered.
The important functions of IRDA are as follows:
To exercise all powers & functions of controller of Insurance.
Protection of the interest of the policyholders.
To issue, renew, modify, withdrawn or suspend certificate of
registration.
To specify requisite qualification & training for insurance
intermediaries & agents.
To promote & regulate professional organization connected with
Insurance.
To conduct inspection/investigations etc.
To prescribe methods of Insurance Accounting.
To regulate investment of funds & margins of solvency.
To adjudication upon disputes.
To conduct inspection & audit of insurers, intermediaries & other
organizations concerned with Insurance.

28

TYPES OF
INSURANCE
POLICIES

29

Types of Insurance Policies

Though there are lots of policies available in the market under different
names and by different companies, the policies can broadly be classified into
following categories:

Term Insurance policy.

Whole life policy.
Money back policy.
Endowment policy.
Pension plans or Annuities.

Term Insurance policy

Term insurance provides life insurance coverage for a specific period of
time. Presently one year, five year, ten year, and fifteen year, are the periods
one can buy term life insurance policy. If the insured person dies during the
period the insurance is in force, the insurance company pays off the face
value of the policy. If the insured lives longer than the term of the policy, the
policy is no longer in effect and nothing is paid.
Term insurance is the least expensive form of life insurance. It is commonly
used when the insured needs temporary protection or cant afford the
premiums for the other forms of life insurance. The other reason an insured
may want term insurance is to purchase life insurance and invest the
difference between the term policy and cash value policy elsewhere.
Term insurance comes in several forms. There is renewable & nonrenewable. Non-renewable means that on the expiry of your policy you must
go under another physical test and filling out another questionnaire. On the
other hand, with renewable policy you do not need to undergo these
formalities again and you automatically re-qualify to continue your policy.
Then there is convertible & non-convertible policy is the one which can be
converted into a permanent policy, whereas non-convertible is the one which
30

can not be converted into a permanent policy or in other words the policy
can not be converted to any form of life insurance policy.
Whole life policy
The whole life policy provides insurance coverage for the entire life of the
insured regardless of how many years the insurance to paid. Premium may
be paid throughout the insured entire life or for a portion of his life.
Additionally the premium can be paid in one lump sum when the policy is
taken out. This is referred to as single premium whole life policy.
When the premium is paid throughout the life it is known as straight life
policy, but when the premium is paid for a specified period of time it is
known as limited life policy.
The premiums are higher for whole life insurance as opposed to term
insurance. The reason for this is that the policy helps investment features as
well as death benefits. The cash value portion of the whole life insurance
belongs to the insured. One can take it out in the form of policy loans or
cash the policy in. Another advantage of whole life insurance is that the
premium are fixed, i.e. regardless of your is, you pay the same amount for
the coverage each year.
Universal life insurance policy
Universal life insurance is a variation of whole life. The difference is that
with universal life insurance part is separated from the investment portion of
the policy. The cash value portion of the policy is treated, as an
accumulation fund and investment income is credit to the accumulation
fund.
Money back policy
Money back policies provide the periodic payments of partial survival
benefits during the term of the policy, as long as the policyholder is alive.
An important feature of this type of policies is that in the event of the death
at nay time within the policy term, the death claim comprises the full sum
assured, without deduction of nay of any of the survival benefit amount,
31

which may have already been paid as money back components. Similarly the
bonus is also calculated on the entire sum assured.
Endowment policy
An Endowment policy covers the risk for a specified period, at the end of
which the sum assured is paid back to the policyholder, along with the bonus
accumulated during the term of the policy. This feature of payment of
endowment to the policyholder when the policies term is complete is
responsible for the popularity of endowment policies.
The amount received on maturity can either be utilized either to buy an
annuity policy to generate a monthly pension for the rest of the life, or put it
into any other suitable investment of our choice. This is one important
benefit, which the endowment policy offers over a whole life insurance
policy.
Overall, endowment policies are the most suitable of all insurance plans for
covering the risk to a family breadwinners life not only do these policies
provide financial risk cover for the family, were the policy holder to die
prematurely but the insurance amount is also repaid once this risk is over.
The endowment amount can then be used for meeting major expenditures
such as children, education and marriage etc.
Alternately, the endowment sum is available for a suitable investment geared
to providing an income for the remainder of once own life. These types of
plans are particularly suitable to those who other then having a risk cover is
also interested in a saving component simultaneously.
Pension plan or Annuity
An annuity is an investment that we make, either in a single lump sum or
through installments paid over a certain number of years, in return for which
we receive a specific sum every year, every half-year of every month, either
for whole life or a fixed number of year.
After the death of an annuitant or after the fixed annuity period expires for
annuity payments, the invested annuity fund is refunded, perhaps along with
a small addition, calculated at that time. Annuities differ from all the other
32

form of life insurance in one fundamental way-an annuity does provide any
life insurance cover but instead offers a guaranteed income either for life or
a certain period.
Typically annuities bought to generate income during ones retired life,
which is why they are also called pension plan. Annuity premiums are
payments are fixed with reference to the duration of human life.

Settlement Options
When the life insurance policy becomes payable, the insured or the
beneficiaries may elect to take payment in one lump sum. 1-Jowever, when
the insured or the beneficiaries, elect not to take a lump sum payment, there
are several other options available to him for receiving his payment which
are as follows:
Interest Option
According to this option, the entire proceeds are left with the insurance
company and it pays a guaranteed interest rate on your amount, it is similar
to leaving our IT100CY in a savings account. At any time in the future, the
beneficiary can withdraw the money.
Fixed Amount Option
In this option the beneficiary receives a fixed amount of money each month
until the proceeds are exhausted.
Fixed Period Option
The fixed period option will pay the beneficiary equal payments over a fixed
period of time, which may be 10 years, 20 tears or even just 5 years. Excess
interest earned will increase the amount of these payments.
Life Income Option
This option provides the beneficiary with the proceeds paid over the rest of
his life. 1-lowever when the beneficiary dies the balance of the policy is
considered used up.
33

AXISS POLICIES
OR
PRODUCTS

34

Bharti AXA Life Insurance Policies / Products

Bright stars
Thisisaregularpremiumunitlinkedinsurancepolicy,which,whichoffersyouthetwinbenefitsof
protectingyourlovedonesandcreatingwealthforthemoverthedesiredperiod.

Asacaringparent,youwantonlythebestforyourchild.Asyourchildgrows,hisaspirationswillgrow
too and so will your responsibilities. Whether its higher studies abroad, a grand wedding or a
comfortablehomeyoucannowensurethatyourchildisalwaysonestepahead

Youcanfulfillallthedreamsyouhaveforyourchild,andgivehimwhathedeserves.Abrightfuture!

Theplanalsoofferstheflexibilitytomakemodifications,dependingonthechangingneedsofyour
child.Ashisdreamsgrow,theplanwillgrowtoosofinancialhurdleswillnevercomeinthewayof
hisgrowingdreams!WithBhartiAXALifeBrightStars,

Parameter
Minimum age at entry
Maximum age at entry

Eligibility
18 years
70 years minus policy benefit period chosen.
E.G: for policy benefit period of 17 years, the

Maximum age at maturity

Minimum premium

maximum age at entry is 53 years.

70 years
Rs.15,000 p.a. for annual & semi-annual modes

Premium modes
Policy benefit periods available

Rs18,000 p.a for monthly mode

Annual, semi-annual and monthly
7 years,10 years,15 years, 17 years and 20 years

Minimum top-up premium

Rs. 2,500

Spot suraksha
Introduction
35

Spot Suraksha is a unit liked insurance product, which offers you an instant insurance
protection and benefit of wealth creation in the long-term.
Main Advantages of Spot Suraksha
Understandtheproduct:(Readandunderstandtheproductbrochure)
Answeringthesimplehealthrelatedquestions,Signupthesimpleapplicationform,submitphotograph,
proofsforidentity,addressandage.

Acovernoteisissuedtopolicyholderandinsurancecoverstartsinstantly.

100%allocationofpremiumFullallocationofpremiumtotheInvestmentFund,accordingtopolicy
holderchoicefrom2ndyearonwards.

Aguaranteedspecialadditionequalto130%ofannualizedpremiuminthefirstpolicyyearisaddedin
thepolicyfundatmaturityordeath,whichisearli

PARAMETER

ELIGIBILITY

Minimum age at entry

5 years

Maximum age at entry

55 years

Maximum age at maturity

70 years

Minimum premium

Rs. 12,000 p.a

Premium Modes

Annual, Semi-annual and monthly

Policy term

15 years

Minimum top up premium

Rs. 5,000

Dream life pension

Let you live your retired life king-size
This plan is made for old persons and to make them self independent and live a life of
dignity and self-respect. Today you are busy climbing the ladder of success and realizing
your dreams. Today, time is with you. Just take a moment and think.
The bharti AXA Life Dream life pension gives you:
36

 A post retirement income for life.

Policy holder choose the age at which he/she would like to retire (vesting age), which
determines your premium paying term. Alternatively you can opt for single premium
payment.

PARAMETER

ELIGIBILITY

Minimum age at entry

18 years

Maximum age at entry

70 years

Minimum age at vesting

45 years

Maximum age at vesting

Premium modes

80 years
Single pay, yearly, Half-yearly ,Quarterly
and monthly

Minimum premium

Annual Regular Premium:

Rs.12, 000p.a.

Minimum policy term

10 years

Minimum top-up premium

Rs.2, 500 and no maximum limit on top-up

premium and top up allowed only after
first policy year.

MERIT PLUS
This is a regular premium unit-linked insurance policy which offers you the twin benefits
of protection against financial loss in the unfortunate event of the death and helping you
37

to create wealth systematically over the long-term. Hence this product is suitable for your
long-term objective like retirement planning, childrens future and giving a total
protection to you and your family.

PARAMETER

ELIGIBILITY

Minimum age at entry

0 year

Maximum age at entry

60 years (For death benefit option A)

Maturity age

55 years (For death benefit option b)

80 years (for death benefit option A)

Policy benefit period

75 years (for death benefit option B)

80 year less age at entry (for death benefit
option A)
75 years less age at entry (For death

Premium payable period

benefit option B)
Yearly, Half-Yearly And Monthly

Minimum premium

Rs.10,000

Minimum Top-up premium

500

Benefits of Bharti AXA Life merit plus

In merit plus the policy holder must have to choice one option out of the two.
1.Sum assured(less all partial withdrawals made form the basic policy fund during the 12
months prior to the date of death of life assured) or the policy Fund Value as on the date
of intimation of death, which is higher, will be paid.
2.The sum of sum assured and the policy fund value as on the date of intimation of death
will be paid.

38

Future confident
Future confident is a suitable product for you, if your objective is long-term targeted
wealth creation over 15-20 year, either for your own retirement or for your childrens
future, while at the same time providing your family enhance financial protection.
PARAMETER

ELIGIBILITY

Minimum age at entry

0 year

Maximum age at entry

60 years

Maturity age

70 years

Policy benefit period

70 year less age at entry

Premium payable period

Minimum premium

Yearly, Half-Yearly, quarterly and Monthly

Rs.10,000 for yearly, 5,000 for half-yearly
2,500 for quarterly and Rs.834 for
monthly premium

Minimum Top-up premium

500

Secure Confidence
Provide complete financial protection to your family, even when you are not there.
Secure confident is suitable to you if your objective is to protect your family against any
financial loss caused due to unfortunate death, disability due to an accident or critical
illnesses which may deprive them of a secured future.
Parameter
Minimum age at entry
Maximum age at entry
Minimum sum assured
Minimum premium
39

Eligibility
18 years
55 years
Rs.5 ,00,000
RS.1,500 for yearly,Rs.780 for half-yearly,

Rs.405 for quarterly and Rs.135 for monthly

premium
Policy benefit period
5,10,15,20 and 25 years
Maximum age at maturity.
60 years
Premium paying term
Equal to the policy benefit period.
On death
On survival
A sum assured is paid to the policy holder or The policy shall be terminated and no
nominee and the policy shall be terminated. monies shall be payable to the policy holder.

40

ABOUT LIFE
INSURANCE ADVISOR

About Life Insurance Advisors

41

 Who is Life Insurance Advisors or Agents

An agent is the representative of an insurance company who sells different
policies or product to its clients. Another term used for insurance agents is
advisors; Bharti Axa Life Insurance company Ltd. introduced this term.
Today in life insurance companys advisors are known to be the backbone of
the whole system. Advisors/agents do not work on monthly payroll basis;
they receive a certain commission on the policies they sell to the clients.
The eligibility required to become an advisor/agent is that he/she should be
12th pass to operate in urban area and 10th pass for rural areas. Before a
person becomes an advisor/agent he/she has to undergo 100 hrs training
according to IRDA norms, which is compulsory.
70-75% of profits gained in life insurance business are through
advisors/agents.
Who can become Insurance advisor/Agent
Any person who is 12th pass and having a minimum age of 18 years can
become insurance adviser but an Insurance company wants such persons
who are having a very high zeal to earn more and more and should have a
very good communication skill, which can satisfy the customer. Relationship
skill is must in an insurance advisor/agent.
ICICI Prudential wants mainly five things in an Insurance Advisor:

Confidence
Self motivation
Persuasion
Urge to be financially independent
Relationship skills
Most preferred profiles to recruit as an insurance advisors/agents

Full time advisors: Non life insurance agents, Credit card dealers, Post
Office agents, Mutual fund agents, Persons having very
good convincing power
42

Part time advisors: Chartered accountants, Investment consultants. Tax

Consultants, Property dealers, Doters, Advocates,
Direct selling agents (DSA), Teachers, etc.
To provide ongoing financial advice for his/her clients:

Identify future clients

Making appointments
Conduct financial review meetings with prospects/clients
Close sale
Get referrals
Provide service to clients

Follows internal sales and reporting system

Working environment of company for an Insurance advisor

To be a part of a world class sales team

Work from own office or residence
Work full time or part time
Earn commission, bonus and incentives
No upper limits on earnings
Flexible career

Opportunity for an Insurance advisor/agent

No startup capital required

Flexible working environment
Be your own boss
Unlimited earning potential
To be part of a world class team

Benefits Jar an Insurance advisor/agent

A premium product portfolio that caters to a wide range

of financial needs
Excellent back-end support
43

 Attractive payments and benefits

Round the clock customer service
Extensive for that edge over advisors competition
Recognition programs for an insurance advisor/agent

Foreign trips and seminars

Select club membership i.e. Presidents club, Achievers club,
MDRT membership
Career progression & Future opportunities for an Insurance advisor

Pinnacle program
Fast track pinnacle program
Program for career progression of advisors to Unit managers: Full time
career, Growth to Senior Agency Manager, Fast trek advisors career, etc

Company s support to the advisors

Field visits
Training on product and selling skills
Regular business reviews
Be a coach and Mentor
Recognize high performers
Help you become financially independent
Company s expectations from their Advisors / Agents
Achieve sales targets
Participate in all meetings
Attend all training programs
Weekly reviews at the office
Follow the sales process
Follow weekly reporting process
Payments & Benefits- Commission Structure

44

RECRUITMENT AND SELECTION PROCESS

RECRUITMENT
Recruitment is the process of exploring the sources of supply of the required
personnel and stimulating the prospective employee to apply for job in the
organization.

Recruitment is the first employees process, which aim to developing and

maintaining manpower resources for the organization.

Recruitment is a positive process because it attracts a large number of

qualified people from which the final selection can be made.
According to E. MC Farlan

it is the process of attracting the potential

employees to the company. The aim of recruitment policy should be to

attract good quality applicants and to undertake reliable and cost effective
selection decisions.

According to Flippo , recruitment is the process of searching for prospective

employees and stimulating and encouraging them to apply for jobs in an
organization.

45

Recruitment needs are of three typesPlanned

Anticipated
Unexpected

SOURCES OF RECRUITMENT

RECRUITMENT

INTERNAL SOURCES

EXTERNAL SOURCES

1.Transfers

1. Press Advertisement

2.Promotions

2. Educational Institutions
3. Placement Agencies
4. Employment Exchanges
5. Labour Contractors
6. Recommendations
7. Unsolicited Applicants

46

NTERNAL SOURCES
Internal sources consist of the following
1. Permanent, temporary and casual employees already on the pay of the
organization are a good source. Vacancies may be filled up from such
employees through promotions, transfers, and upgrading and even
demotion.
2. Retired and retrenched employees who want to return to the company
may be rehired.
3. Dependents and relatives of deceased and disabled employees.

EXTERNAL SOURCES

External sources of recruitment lie outside the organization. These are as

follows:

1. EDUCATIONAL AND TRAINING INSTITUTIONS

Various institutes provide facilities for campus interviews and placement.
Good institutions have placement cells/officers to serves as liaison

47

between the employers and the students. This source is known as campus
recruitment.

2. RECRUITING AGENCIES
Several private consultancy firms e.g. A.F. ABC consultants etc. these
agencies are particularly suitable for recruitment of executives and
specialists. They perform all the functions of recruitment and selection so
that the client is relieved of this burden. But the cost of recruitment
through these agencies is quite high.

3. EMPLOYMENT EXCHANGES
Government of India has established public employment exchanges
throughout the country. These exchanges provide information about job
vacancies to the jobseekers and help employers in identifying suitable
candidates. They contain a data bank of candidates for different types of
jobs.

4. CASUAL CALLERS
Due to widespread unemployment in the country, many jobseekers visit
the offices of well-known companies on their own. Such caller is
48

generally considered a nuisance to the daily work routine of the

enterprise. But a waiting list of such unsolicited visitors can be prepared
to fill temporary and lower level jobs. It is very expensive source of
recruitment.

5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close
links with the sources of such workers. This source is often used to
recruit labour for construction jobs.

6. GATE RECRUITMENT
Unskilled workers may be recruited at the factory gate. In some
industries like jute a large number of workers works as badli or substitute
workers. These may be employed whenever a permanent worker is
absent. More efficient among these badli worker may be recruited to fill
permanent vacancies.

7. SIMILAR ORGANISATION
Experienced employees can be recruited by offering better benefits to the
people working in similar organizations. Newly established organizations
49

of well-known business houses often lure experienced executives and

technical experts from the public sector.

8. RECOMMENDATIONS
Office bearers of trade unions are often aware of suitability of candidates.
Management can enquire these leaders for suitable jobs. In some
organizations there are formal agreements to give priority in recruitment
to the candidates recommended by the trade union.

9. PRESS ADVERTISEMENTS
Advertisements in newspapers and journals are a widely used source of
recruitment. The advantage of this method is that it has a very reach. One
advertisement in a leading daily can cover millions of persons throughout
the country. Cost per person is very low. This method can be used for
clerical, technical and managerial jobs.

STEPS IN RECRUITMENT PROCESS

The recruitment process consists of the following steps

50

1. Recruitment process generally begins when the personnel department

receives requisitions for recruitment from any department of the
company.
2. Locating and development the sources of required number and type of
employees.
3. Identifying the prospective employees with required characteristics.
4. Communicating in the information about the organization, the job and
the conditions of service.
5. Encouraging the identified candidates to apply for jobs in the
organization.
6. Evaluating the effectives of recruitment process.

METHODS OF RECRUITMENT
Recruitment methods are the means by which an organization establishes
contact with potential candidates, provide them necessary information
and encourages them to apply for jobs.
Various methods employed for recruiting employees may be classified
into the following categories

51

1. DIRECT METHODS
Under direct recruitment scouting, employee contacts, manned exhibits
and waiting lists are used. These include sending traveling recruiters to
educational and professional institution; employee contact with public
and manned exhibits.
Most college recruiting is done co-operation help in attracting students,
arranging interviews furnishing spaces, and providing student resumes.
Other, direct method include sending recruiters to conventions and
seminars, selling up exhibits at fairs, and using mobile offices to go to the
desired centers. Some organizations use waiting lists of candidates who
have indicated their interest in jobs in person, through mail or over
telephone.

2. INDIRECT METHODS
Advertisements in newspapers, journals, on the radio and television are
used to publicist vacancies. This method is appropriate when the
organization wants to reach out of a large target group scattered
geographically.
Local newspaper can be a good source of blue-collar worker, clerical
employee and low-level administrative employee.
52

According to advertisement tactics and strategy in personal recruitment,

three points need to be born in mind before and advertisement is inserted.
FIRST, to visualize the type of application one is trying to recruit.
SECOND, to write a list of the advantages of the company offers in the
other word, why the reader should work for the company.
THIRD, to decide where to run the advertisement, not only in which area
but in which newspaper having a local, state or nation wide circulation.

3. THIRD PARTY METHODS

Various agencies can be used to recruit personnel. In addition, friends and
relations of existing staff and deputation method can also be used.
These include the use of commercial or private employment agents, state
agencies, placement office of school colleges and professional
association, casual labor or application at the gate etc.

53

SELECTION PROCESS
Selection is the process of choosing the most suitable persons out of all
the applicants. In this process relevant information about applicants is
collected through a series of steps so as to evaluate their stability for the
job to be filled. Selection is the process of matching the qualifications of
applicants with the job requirements; selection divides all the applicants
into two categories
Suitable
Unsuitable
The purpose of selection is to pick up the right person for every job.
Selection is an important function as no organization can achieve its
goals without selecting the right people. Faulty selection leads to wastage
of time and money and spoils the environment of an organization.
Scientific selection and placement personnel can go a long way in
building up a stable work force. It helps to reduce absenteeism and labour
turnover. Proper selection is helpful in increasing the efficiency and
productivity of the enterprise.
The selection process can be successful if the following conditions are
satisfied.
54

1. Some one should have the authority to select. This authority comes
from the employment requisition as developed through an analysis of
the workload or work force.
2. There must be some standard of personnel with which applicant can
be compared.
3. There must be a sufficient number of applicants from whom the
required number of employees may be selected.

SELECTION PROCEDURE
The selection procedure consists of a series of steps. Steps involve in
employee selection may be described as under:

1. PRELIMINARY INTERVIEW
First

of

all,

initial

screening

is

done

to

weed

out

totally

undesirable/unqualified candidates at the outset. Preliminary interview is

essentially assorting process in which prospective candidates are given
the necessary information about the nature of job and the organization.
Preliminary interview saves time and efforts both the company and
candidate. It avoids unnecessary waiting for a rejected candidate and
waste of money on further processing of an unsuitable candidate.
55

Preliminary interview helps to determine whether it is worthwhile for a

candidate to fill up application form. Preliminary interview is the first
contact of an individual with the organization.

APPLICATION BLANK
Application from is a traditional and widely used device for collecting
information from candidates. Small firms design no application from and
ask the candidates to writ details about their age, marital status,
education, work experience, etc. On a plain sheet of paper. But big
companies use different types of application forms for different jobs.
Generally, an application form contains the following information:
2. Identifying information name, address, telephone no, etc
3. Personal information- age, sex, place of birth, martial status,
dependents, etc
4. Physical characteristics- height, weight, eye sight, etc
5. Family background
6. Education- academic, technical and professional
7. Experience- job held, employers, duties performed, salary drawn, etc.
8. References

56

9. Miscellaneous- extra curricular activities, hobbies, games and sports,

membership of professional bodies, etc.

SELECTION TEST
Psychological tests are being increasingly used in employee selection.
A test is a sample of some aspect of an individuals attitudes, behavior
and performance. It also provides a systematic basis for comparing the
behavior, performance and attitudes of two more persons. Test are
based on assumption that individual differ in their in their job related
traits which can be measured. Test helps to reduce bias in the selection
by serving as a supplementary screening device. Tests are useful when
the number of applicants is large.

EMPLOYMENT INTERVIEW
An interview is a conversation between two persons. In selection it
involves a personal, observational and face to face appraisal of
candidates for employment.
A selection interview serves three purposes
Obtaining information about the background, education, training,
work history and interests of the candidate,
57

Giving information to candidates about the company, the specific job

and personnel policies
Establishing a friendly relationship between the employer and the
candidate so as to motivate the successful applicant to work for the
organization.

MEDICAL EXAMINATION
Such examination serves the following purposes
It determines whether the candidate is physically fit to perform the
job. Those who are physically unfit are rejected.
It reveals existing disabilities and provides a record of the employees
health at the time of selection.
It prevents the employment of people suffering from contagious
diseases.

REFERENCE CHECKS
If an applicant is declared successful, some personal information is
collected about the candidate from those persons who have been
entered in the form as reference.

58

This information is chiefly connected with the character of the

applicant, his social relations background etc.
The opinion of referees can be useful in judging the future behavior
and performance of a candidate.

FINAL APPROVAL
The final interview is usually conducted in two stages.
FIRSTLY, the personnel manager gets a detailed information about the
applicant and after they are found competent after his assessment,
they are send to department manager concerned for interviews.
SECONDLY, the department managers satisfy themselves after a tetea-tete in detail about the nature of work and then they are declared
successful.

PSYCHOLOGICAL TESTS

Psychological tests are being increasingly used in selecting

employees. These tests provide a systematic procedure for sampling
human behavior. Psychological tests are based on assumption that no
two individual are equal in term of intelligence, attitudes, personality

59

and other traits. Psychological tests help to predict the success of a

candidate on the jobs. They help to reduce bias and subjective
judgment in the selection process. They are more useful for
identifying and screening out unsuitable candidates. Tests are also
critised for invading the privacy of candidates.

60

TYPES OF TESTS

1.APPTITUDE

OR POTENTIAL ABILITY

These tests measures the latent ability or potential of a candidate to

learn a new job or skill.
Such tests are of the following types:

A. MENTAL OR INTELLGENCE TESTS

The assumption behind this test is that a more intelligent person can
easily and quickly learn any job and the enterprise do not have to
spend more on their training.

B. MECHANICAL APTITUDE TEST

These tests are measure a persons capacity to learn a particular type
of mechanical work. Capacity for spatial visulation, perceptual speed
etc. these are useful for selecting apprentices maintenance workers
and mechanical technicians.

61

C. SKILL TEST
These tests measure a persons ability to perform a specific job. These
are primarily used for selecting worker who have to perform semiskilled and repetitive jobs.

1. ACHIEVEMENT OR PROFICIENCY TEST

These teste are measure what a person can do. Their tests are of two
types

A. JOB KNOWLEDGE TEST

Such tests are useful in the selection of stenographers, typist, office
worker etc.

B. WORK SAMPLE
In these tests a candidate is given a piece of work to how
efficiently he does it.

62

2. PERSONALITY TEST
These tests are used to select supervisors and executives and for
counseling people. These are widely used in industry as these provide an
all round picture of a candidates personality.
These are of three types

A. OBJECTIVE TESTS
These tests measure neurotic tendencies, self-sufficiency and selfconfidence.

B. PROJECTIVE TESTS
The way in which he responds to these stimuli reflect his own values and
motives and personality.

C. SITUTATION TESTS
Group discussion and basket methods are used to administer these test
these test measure a candidates reactions when placed in a particular
situation.

3. INTEREST TESTS

63

These test are inventories of a candidates like and dislikes in relation to

work. There are used to discover a area of interest and to identify the kind
of work that will satisfy him.

DATA ANALYSIS AND INTERPRETATION

RECURITMENT AND SELECTION PROCESS AT

WHEN VACANCY ARISES IN ANY DEPARTMENT

In ICICI the procedure of selection and recruitment starts by the
availability of vacancy in any department.
The head of the related department consult with the HR Manager in case
of vacancy and than process starts.

FIND OUT EXTERNAL OR INTERNAL MEMBER

The nature of vacancy is main aim of dependence an internal and external
source of member. The internal members are those members who are
already on the payroll.
First preference should be given to internal employees. After that external
should be taken if internal not find out suitable. If the post is vacant

64

promotion is done or the post is merged and the power and duties of that
post are given to its relative post holder.

ADVERTISING IN THE NEWSPAPER OR CONSULTANT

After that the advertising for vacancy is given in the newspaper or some
consultant by the permission of general manager (HR and ADM.) the no
of vacancies, qualification, work experience are mentioned in the
advertisement and the last date for submission of the application.]

RECOVERY OF APPLICATION
When the advertisement is published in the newspaper, the applications
are received against the advertisement and against some private agencies.
Unconsolidated applications are also received from the applicants, who
mark direct esquires from the company time to time for the vacancies.
These applications are put up into the live bio-data bank for
consideration.

SUITABLE APPLICATION OF CANDIDATE

A pool of application is received and than suitable application of the
candidate is selected. Only those applications are selected who satisfy all
65

the requirement of the desired vacancies end other are rejected by the
panel, left applications are put into application blank.

CALL FOR INTERVIEW

After selection of applicant the selected applicant informed to face the
interview. They are informed about the data, time and venue of the
interview and they are asked to bring their qualification certificate and
additional certificate if needed.
The candidate who applies for the post of managers and above is given
traveling allowances by the company.

INTERVIEW PANEL
The candidates who are selected for the interview have to face the panel
of members.
This panel includes
HR Manager
G.M (manufacturing)
G.M (HRD& ADM.)
HOD
If the vacancy is some technical job then the panel includes
66

G.M (engg.) for technical job

G.M (fin.) for commercial job
Each member of penal has an assessment sheet containing 100 marks and
these are as follows

S.NO particulars
Academic record
Subject knowledge
General knowledge
Overall personality
Overall suitability

total marks obtained

20
40
20
10
10
100

Date
signature
Name
Designation

After passing the panel interview if the panel member thinks the
candidate is suitable for the job he is send to MD for final interview.

OFFICE LETTER
After the selection of candidate the offer letter is provided to the
candidate, which includes all the rules and regulations of the company.
67

The salary is also mentioned in offer letter.

APPOINTMENT LETTER

The appointment letter is given to the candidate, which mentions the post
and date of meeting with the GM regarding the joining date.

JOINING LETTER

When the candidate go in the company after getting the appointment

letter and satisfy all the terms and condition of the company, he gives a
written letter that I have joined the post from this particular date and
time.

68

RECRUITMENT
AND
SELECTION
PROCEDURE
OF
ADVISORS

69

Recruitment and Selection of Insurance Advisors

As we know that Recruitment involves seeking and attracting a pool of
people, from which qualified candidates for job vacancies can be chosen.
Recruitment sets out the necessary stages to clarify what kind of person is
required, where he/she might be found and how to make the right choice.
Recruitment of Life insurance agent is also a very impressive criterion
because in this process we need to recruit and select those persons who bear
some special characteristics, which are very necessary to sell insurance. Life
insurance is an intangible product and it needs those insurance advisors who
are having tremendous skills to sell an intangible product.
The key to good selection is preparation. So many people are proud of their
ability to pick a good sales person and so often, that person is good but not
at the particular job which needs to be done. It is vital to be clear about what
job needs doing and what kind of person would do it best; and then to find
that person (or person. Once the plan has been decided, the choice of
candidate should be made carefully.
The effectiveness of the unit manager is dependent to a great extent on the
effectiveness of the team of advisors supporting him, because an advisor
works under a unit manager. So it is very important to recruit a very good
team of Life insurance advisors who can give their best to increase the
effectiveness and the profit of the company. Bharti Axa Life Insurance give
very much stress on it and try to recruit only those persons as a life
insurance advisor who is having some key skills specifies by the company.
Further we will show the recruitment and selection procedure of life
insurance advisor in Bharti Axa Life Insurance company ltd, and try to
analyze whether it is the best process of recruitment or company can do
certain new modifications to enhance their recruitment processor for the
increment of companys effectiveness. From the next page, we will see the
recruitment and selection procedure of life insurance advisors.

70

Sequence of recruitment process of advisors in Bharti Axa Life

Insurance
Before an organization begins recruiting applicants, it should form a
checklist of questions, which outline a chronological sequence for the
recruitment and selection process. Same is to be done with the Bharti Axa
Life Insurances recruitment and selection procedure, it also forms a
checklist of questions, which are termed as the initial starter for the
recruitment procedure. The questions are given below with the specifications
along with them:
1. What kind of job is to be filled?
This question has a wide spectrum of answers. Hence, to answer this
question in to tally following sub-questions are to be answered.
Name of the job: Life Insurance Advisor
Who is the boss: No Boss
Job objective: To sell Life Insurance policies or product and achieve sales
targets.
How far the job holder is personally responsible for achieving results :
job holder will not be responsible for achieving the sales targets because in
this kind of job there is no salary paid, no boss over them and it is totally
commission based job, so it is on the advisor whether he think himself
responsible or not.
This job is principally dealing with the end users who are interested to be
insured.
Bharti Axa Life Insurance looking for the persons who fulfill this job for
life long because life insurance business is a life long business and will not
end till the human being is their on the earth.
Salary and Remuneration: it is totally commission-based job and AXIS
do not provide any fixed salary for this. There is much scope of getting a
huge collection of incentives in the form of gifts, trips and other services.
After getting the answer of these questions, we will move towards next
question.
71

2. What sort of person would do the job successfully?

It is very important to know that what sort of person would do this job of
Life insurance advisor successfully. Bharti Axa Life Insurance specifies
some qualities, which must be there in a Life insurance advisor. These
qualities suggest some skills that are listed below:
Confidence: This is the main skill, which an advisor must contain because
till he will not confident, he would not be able to convince the different kind
of people.
Self-Motivation: Self-motivation is an essential quality, which must be,
possess by an insurance advisor because in this job, rejection is much more
than acceptance, so an advisor has to be very strong from heart and should
not depressed soon.
Persuasion: It is one of the very effective qualities, which must be there in
an insurance advisor. It shows the perceiving ability of an advisor for his
job.
Urge to be financially independent: for a job which is commission based,
an urge should be their in an advisor to become financially independent, then
only he would be able to generate more money for himself and for the
company.
Relationship Skills: this is a very necessary element of quality shown in
an advisor by the Bharti Axa Life Insurance because this skill helps the
advisor to make good relation from his customers which is very necessary
for the future of the company.
3. Where will this person be found?
Now, we know what the job is and what kind of person is required for the
job-only we need to find this person. The persons for this kind of job of an
life insurance advisor can be found at many places through many resources
hut most of the insurance agents chosen from the relations and with direct
contacts. The following are the sources from where we can found out the
persons who can become good life insurance agent:
Employment agencies: Employment agencies can be used as a wide
source for the persons to this job.
72

 Advertising: It also plays a very effective role in finding of the

persons for becoming an insurance agent. Bharti Axa Life Insurance
also use this source.
Educational institutes: They are one of the main sources for the
company to find out the person as an advisor.
Direct contact with people: Bharti Axa Life Insurance also uses
direct contacts with the people and offers business opportunity to
them, company representatives contact to the persons and explains
business opportunity presentation to them.
4. Which person is to be recruited?
The simple answer to this is that the one who best fits the specification and
who has the essential characteristics as defined should be recruited. This
implies a structured approach of three steps. These are:
First, compare companys specification for an advisor with that of the
prospects specifications and remove all those who do not meet the essential
criteria.
Secondly, move on to those areas where the Measuring Instruments and
an assessment at interview are needed. For instance,
o
o
o
o
o

Education: which should be at least 12th pass.

Age: above 18 years.
Work history: fresher can also apply.
Family background: does not matter but it should be Indian.
Ambitions and Future plans: should possess high ambitions and zeal
to become financially independent.

Thirdly, involves the identification pattern of behavior, which will

help in forming judgments.
After all the three steps have been followed and care has been taken to see
that the candidate fits into the specific job requirements one can be sure of
choosing the right candidate for the right job.

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Selection and Placement of Insurance Advisors

A selection system is a set of successive screens at any of which an
applicant may be dropped from further consideration. The process of
selection of insurance advisors differs from companies to company
depending upon the requirements. In Bharti Axa Life Insurance the applicant
goes through various stages, the chances of selection get better as more and
more stages are cleared.
Selection procedure: The following selection procedure is used by for the
selection of Life insurance advisor in Bharti Axa Life Insurance company.
Preliminary interview: In this interview the applicant have face-to-face
interaction with the respective Unit Manager and clear out all his queries and
doubts about the job. After this interview session, the prospect gives his
confirmation whether he is interesting to join the organization or not.
Formal application after the confirmation of the prospect the next step is
to filling up of application form with the submission of all the necessary
documents that are listed below:
- Birth certificate (10th class passing certificate, driving license, etc)
- Address proof (ration card, voter id card, telephone bill, etc)
- 6 passport size colour photographs
- Highest qualification certificates (Mark sheets)
- A demand draft of Rs. 1000 on the favor of Bharti Axa Life Insurance
Prudential company
ltd, payable at Mumbai
After checking the form and all documents the operations department give
its confirmation that the prospect is genuine and is subject for further
process.
Declaration of date of training and venue: After the previous step,
operation department give the details about the details about training date
and about the venue of the training. The training is a necessary part of the
selection procedure. This

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Training is under the curriculum of Insurance Regulatory and Development

Authority (IRDA). The duration of this training is 100 hours and it can he
get in three ways:
- Full-time training (10:00 AM to 05:00 PM)
- Part-time training (06:00 PM to 09:00 PM)
- Online training
Testing: After completing the training conducted by IRDA, a test is
conducted on the same venue. This test is taken based on training and
contains the syllabus, which is prescribed by the IRDA. This test and
previous training is necessary for every body who wants to become an
insurance advisor.
Issue of License: after passing out the test conducted by IRDA, a license is
issued from the IRDA. This license is the proof for the insurance advisor and
an advisor can start his work just after getting this license. Getting the
license is the last step in selection process.
Assignment to the Unit Manager: The following advisor is assigned to a
unit manager to whom he has to report about his work and about any query
concerning about insurance and about the company.
The above are the following steps which are use to select an Insurance
advisor/agent. The license issued by the IRDA is the only authorized power.
Which gives the person a right to do insurance. This license is supposed to
renew after every three years.

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RESEARCH METHODOLOGY
(a)

Sample

In recruitment we have to choose one group of people who want to recruit in

such company.

We have decided to choose the area of New Delhi and picked up small group
of educated people and collect the sample regarding the recruitment for the
job of clerk through the questionnaire.

We have got the meaningful information about recruitment from those

people.

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(b)

Instrument used

We have used several instruments for this project

1.

We have discussed about the advertisement of the job to the

various newspaper managers.

2.

We have visited engineering & management institution Like

3.

Using questionnaire for the target group of the people who want to
recruit in the company.

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(c)

Methods of Data Collection

There are three main methods, which we have used in the company for
recruitment procedure:
1.

Direct Method
Mr. Sanjeev Mittal (HR Manager of the company acted as a
Placement Officer. He sent representatives in many engineering &
management institutes in the area of New Delhi and adjoining area
of New Delhi, Traveling recruiters exchange information with the
students clarify their doubts, conduct, campus interview & short
listing another direct method is to ask employees of the
organization to contact the public and tell about the vacancies and
it also include exhibits at fairs like Trade Fair, or using mail &
Telephone source.

78

2.

Indirect Method
They are using Advertisements in Newspapers, Journals.
A well though out and clear advertisement enables candidates to
assess their suitability so that only those possessing the requisite
qualification will apply.

This method is appropriate when the company wants to reach out

to a large group of people.

79

3.

Third Party Method

Various agencies can be used for recruitment of personnel.
Recruitment agencies Several private consultancy firms
e.g. ABC Consultants, A.F. Ferguson Associates etc.
perform recruiting function on behalf of client companies by
charging fees.
These agencies perform all the functions of recruitment &
selection so that the client is relieved of this burden.
Casual caller Some time many Jobseekers visit the
company on their own.
Labour contractors Manual workers recruited through
contractors who maintain close links with the sources of
such workers.
Gate recruitment Unskilled worker recruited at the factory
gate. The notice of the job specified on the company gate.
Similar company Engineers can be recruited by offering
better benefits to the people working in similar company.

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Data Analysis

4.

People give more emphasis on:

Source

%Age

Newspaper

50%

Visual Media on T.V.

30%

Consultancy firms

20%

Consultanc
y firms
20%

Newspaper
50%
Visual
Media on
T.V.
30%

81

5.

Data Analysis

Methods of recruitment:
Source

%Age

Advertisements

30%

Newspapers

40%

Consultancy firms

20%

Labour Contractor

10%

Labour
Contractor
Consultanc
y firms

Newspaper
s

82

Advertisem
ents

INTERPRETATION
1.

For recruitment procedure most of the company uses newspaper

or journals very widely, the percentage is 40%.
The advantage for this method is that is has a very wide reach.
One advt in a leading daily newspaper can cover millions of
persons the throughout the country, the cost per person is very
low. This method is used for clerical, technical and managerial
jobs.
The people give more emphasis on this method because it is
easy source of recruitment.

2.

30% people give more attention to the visual media

advertisement like T.V. or Radio, Internet etc.
Similarly 30% people adopting this method for recruitment
procedure.

3.

Very few people get recruit through consultancy firm. Because,

now a days the consultancy firms charging very high service
cost. Even some consultancy firm charging one-month salary
after the selection of the concerned person.

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4.

Manual labour generally recruited through gate recruitment &

through labour contractor.

84

CONCLUSION

85

Conclusion
Life insurance is also now being regarded as a versatile financial planning
tool. Research indicates that Indians have four basic financial needs during
their life asset accumulation (such as buying a house or car), protecting their
family, securing their childrens education, and provision for their
retirement. So, while there are three basic types of insurance, these have
been structured with increased flexibility to meet focused requirements.
Furthermore, these can be enhanced with riders to protect one against
disability and provide monetary compensation at times of critical illnesses or
surgeries.
India being a country having a huge population of around one billion people
with only 32% of the insurable population in India possessing life insurance
the country has a vast potential, which has been left untapped till now.
For every insurance company life insurance advisors are the lifeline and a
very huge asset so each company try to recruit and select a potential force of
life insurance advisors because this is the advisors who generate maximum
business for the insurance company. Life insurance advisors provide a very
strong support to the insurance cornpan3 and do all possible efforts to
generate huge amount of profit to the company and for him.
In Bharti Axa Life Insurance recruitment and selection procedure is really
very impressive. By the help of this process, company recruits a very good
class of advisors .A detail study is done before starting the recruitment and
selection procedure that help the company to select the best advisors. The
recruitment, selection and training process of life insurance advisors is a
slight long process because of the training provided by the insurance
Regulatory And Development Authority (IRDA).
Form the detailed study of recruitment and selection procedure of the life
insurance advisors we come on the conclusion that it is a very impressive
process carried out by Bharti Axa Life Insurance. This study helps us to
understand all the possible aspects related to the Bharti Axa Life Insurance
recruitment and selection procedure.

86

RECOMMENDATIONS

87

Recommendations
Need to create and effectively deploy differentiated strategies in
finding out more resources to recruit insurance advisors.
Right prospects identification and thus segmentation, which need to
be appropriate.
Design and manage sales force, which yields high performance. More
training of the employees can be done so that they produce best
results.
Recruitment processes need to be slightly fast, so that prospects can
retain same confidence as in starting.
Need to create better, differentiated detailed brochures for advisors
recruitment.
Increase advisors sales force quality as well as quantity by employing
some HR professional, who time to time take some actions for the
improvement of insurance advisors.
More advertising strategies should be taken to grasp the attention of
those people who want to become life insurance advisors.

Generate some innovative and alternative channels of distribution, using the

sources that can straight play with the emotions of the person and influence
so high that it forces the human being to go for insurance and that to
willingly. Recruit those prospects that really want to take this job as a
challenge.

88

BIBLIOGRAPHY

89

Bibliography

90

TATA yellow pages

List of CAs
Website: www.bhartiaxalifeinsurance.com
AXISs brochure of advisors recruitment.

QUESTIONNAIRE
Recruitment
Q1

What is your qualification?

Graduate
Post Graduate
Higher Secondary

Q2

Are you technically or professionally

Yes

Q3

No

You have collected information for this job through?

Newspaper
T.V. or Radio

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No

Do you go through with the employment newspaper?

Yes

Q7

No

Do you have faith on consultancy firm?

Yes

Q6

No

Have you got registered in Employment exchange?

Yes

Q5

No

Are you having experience?

Yes

Q4

qualified?

Consultancy Firms Q8

What was your past job designation?

________________________________________________________
________________________________________________________

Q9

Which post do you want to apply?

________________________________________________________
________________________________________________________

92