Académique Documents
Professionnel Documents
Culture Documents
(Submitted in partial fulfilment of the requirements for the award of 2 year full time Master of
Business Administration)
By
GNANA DHRUTHI.N
(REG.NO.16A91E0039)
SURAMPALAM-533437
BATCH-(2016-2018)
DECLARATION
I hereby declare that the project entitled “A study on the effectiveness of training and
development policy in IDBI federal Insurance ” submitted in partial fulfilment of the requirements
for the award of the Degree of Business Administration is a record of original research work done by
me under the supervision and guidance of Prof sailaja and the dissertation has not formed the
basis for the award of any Degree/Diploma/Associate ship/Fellow ship or other similar title to any
candidate of any university.
DATE: SIGNATURE:
ACKNOWLEDGEMENT
Words put on paper are mere ink marks, but when they have a purpose there exist a thought
behind them. I too have a purpose to express my gratitude towards those individuals,
without whose guidance this project would not have been possible. First of all I thank God
Almighty for the immense blessings he has bestowed on me in this strenuous effort.
I express my great sense of gratitude to Company guide Mrs. Sk.habbib Assistant branch
head, for her guidance, moral support and motivations and for her immense support in the
successful and timely completion of this project.
I acknowledge that I am deeply indebted to Prof. Sailaja, my Faculty supervisor for her
esteemed guidance, expert observations and timely advice on the mode of organization and
presentation of the project.
I would like to convey my heart full thanks to my Chair person Mrs. C.h.vishala lakshmi,
for her wonderful suggestions and excellent ideas and also her encouragement in completing
this project work successfully and all the staff of our department for their direct and indirect
involvement in the successful completion of the project.
I take this opportunity to cherish all my dear friends who have always been behind every
success of mine.
PLACE: SURAMPALEM
In today’s corporate and competitive world, I find that insurance sector has the maximum
growth potential as compared to the other sectors. Insurance has the maximum growth rate of
70-80% while as FMCG sector has maximum 12-15% of growth rate. Despite recession this
sector has noticed a growth rate of around 35-40%. The growth potential attracts individuals to
enter this sector and IDBI-Federal Life Insurance Company Ltd has given me the opportunity to
get a peek of highly competitive and enhancing sector.
The awareness related to life insurance products in India, among the mass, is still very low. The
level is even lower in rural areas. Insurance is still considered as a tool for tax planning only,
even when companies have attached investment benefits to it.
The major factors affecting the purchase of an insurance product are trust, service, product
features and relationship with advisors. Firms like LIC are still favored only because of being a
government undertaking units. The concept of mis-selling has paralyzed the sector itself. People
find it hard to have faith in advisors. Their job is really very hard. People are now getting aware
of the various investment tools available in the market. The masses in urban cities like Pune have
started comparing the products. While talking to different people, I found that their purchase
decision was highly influenced by their family and colleagues. They purchased the insurance
products at the time when they needed it most, which according to them was at the time of tax
planning, whereas any insurance product must be bought when the individual needs it least so
that they can actually calculate the amount of life cover they need and the type of investment
they want. They can spread awareness by organizing various camps, sending mails or through
free counselling for interested people.
CHAPTERISATION
CONTENTS
CHAPTER-1 INTRODUCTION
SCOPE OF HR MANAGEMENT
CONCLUSION
QUESTIONNAIRE
BIBILOGRAPHY
CHAPTER-1
INTRODUCTION
The study is an analysis on the training and development program follow by IDBI
FEDERAL
The survey was conducted on the method of training system that was
the study has only made a humble attempt on the employees feedback on
the survey conducted will provide the details about the feedback of
The Primary objective of doing this project is to know the effectiveness and
benefits of the training program. During the summer internship program period, I
add some value to the company, by getting more business because of the training
program.
Secondary objective:
Program.
RESEARCH METHODOLOGY
Presently, there are lots of insurance industries in the Indian Market, trying to
achieve more and more market share. In this situation is very important to sustain
in the market and increase share. Business enhancement is possible if employees
are trained effectively. For this purpose I have done a research on the same.
For this objective I have used telephone calling and field survey to find out the
response of the employees about the Training and Development program followed
at IDBI Fortis Life Insurance Co. Ltd.
I have done phone calling and tried to get their view about it. I had prepared a
questionnaire for collecting data and did 35-40 phone calls in Coimbatore and
Bangalore branch offices to collect data. I got enormous support from my Mrs.
Shanthi Yagyanath, Manager Distribution-Chief and Mrs. Sudha Rani Ratho,
State Training Manager, IDBI Fortis Life Insurance Co. Ltd.
Nature of Data
Data regarding the Training modules, chapters, Training Reward Point (TRP), was
provided by the State Training Manager, at IDBI Fortis Life Insurance Co. Ltd.,
Himayat Nagar Office Branch. This helped in identifying the key points about the
training process and by collecting the information from the employees, helped me
to analyze the employee opinion and training effectiveness.
Technique or procedure the researcher would adopt in selecting items from the
sample.
Type of universe:
The universe is the entire group of items the researcher wishes
to study and about which they plan to generalize. Under this
project type of universe include employees working in
Hyderabad, Coimbatore and Bangalore.
Sampling Unit:
Sampling units are the employees, who are undergoing/ have
undergone the training program in Hyderabad, Coimbatore and
Bangalore.
Size of Sample:
The Sample size is 50.
Sampling Procedure:
Sampling procedure refers to technique used in selecting the
items for the sample. Under this project, selection of
respondents is on the basis of convenience sampling.
Tools and Techniques:
For this survey, Convenience- Sampling technique is used.
MS-Excel, ver. Microsoft Office 2007 (12.0.4518.1014) is used
for analyzing and interpretation of the data.
Data is the significant part of the research. Entire research depends upon the data.
Data collected by me during my internship in the IDBI Fortis, can be divided as
below:-
Primary data
o Primary data are those which are collected for the first time and thus
happen to be original in chapters. I have collected my data through
phone calling and through direct communication with respondents in
one form or another or through personal interviews.
Secondary data
o Secondary data are those data which are already been collected by
someone else and which have already been passed through the
statistical process. I have collected the data from company’s brochure,
training dairy, search engine, magazines and newspapers.
\
Limitations of the Study
INDUSTRY PROFILE
Working Procedure:
Instrument Used:
I have collected my data form field survey, internet and through phone calling. As
I was doing the work of meeting the employees and asking them questions about
the company and then I tried to fill up my questionnaires.
Working Procedure:
I have collected my data form field survey, internet and through phone calling. As
I was doing the work of meeting the employees and asking them questions about
the company and then I tried to fill up my questionnaires.
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-degree
turn witnessed over a period of almost 190 years.
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928 - The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938 - Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 core from the Government of
India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party
happening of a certain event.
With the help of Insurance, large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate
few, due to accidental events, are made good.
Functions of Insurance:
Primary Functions
Secondary Functions
Other Functions
Collective bearing of risk - Insurance is a device to share the financial loss of few
among many others. Insurance is a mean by which few losses are shared among
larger number of people. All the insured contribute the premiums towards a fund
and out of which the persons exposed to a particular risk is paid.
Assessment of risk - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk. Risk is the basis for determining
the premium rate also
Small capital to cover larger risks - Insurance relieves the businessmen from
security investments, by paying small amount of premium against larger risks and
uncertainty.
The end of the year 2000 marks a significant change and growth of 'India
Insurance' industry scenario. Monopoly of Public Sector Insurance company marks
an end and Private companies makes inroad. Foreign companies, both Life and
General flocked, collaborated and helped astronomical growth of 'Insurance
Industry in India'.
'India Insurance' growth was long overdue. Within 1st 12 months of liberation of
'Indian Insurance Industry' 10 licenses for selling life insurance products and 6
licenses for selling non-life products were issued to private companies. The Public
sector giant LIC started losing its market share at the cost of stupendous growth of
private players. Now 'India Insurance' industry has more than a dozen private life
insurance players and 9 private general insurance companies. Aggressive and
penetrative marketing strategy coupled with wide product bandwidth was an
instant success among the ignorant masses. Most of the private companies
registered more than 100% growth till then and are still continuing with such
monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic
need but it is getting popular among semi urban to rural masses. Top rank private
companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz, IDBI
Fortis Life Insurance, etc are aggressively researching and innovating products for
huge untapped rural 'India Insurance' market. Collaboration with micro finance
companies, post offices, rural banks and village management authorities for selling
insurance is doing wonders.
Life insurance products cover risk for the insurer against eventualities like death or
disability. Non-life insurance products cover risks against natural calamities,
burglary, etc. They are not as popular as life products in the ' Insurance India's'
portfolio. Until very recently it had only corporate buyers, but with natural
disasters like, earth quakes, tsunamis, storms and floods becoming more frequent
and damaging there has been a sudden spurt in sales of general insurance amongst
individuals. With more awareness and wide bandwidth of insurance product
portfolio the growth for 'India Insurance' story will only get more competitive and
more affordable to all sections of Indian society.
Present Scenario:
The US$ 41-billion Indian life insurance industry is considered the fifth largest life
insurance market, and growing at a rapid pace of 32-34 per cent annually,
according to the Life Insurance Council.
Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new
business income in March 2010, while private players posted a 47 per cent growth
in new business premium.
Moreover, according to IRDA, insurers sold 10.55 million new policies in 2009-10
with LIC selling 8.52 million and private companies 2.03 million policies. At the
end of March 2010, LIC held 65 per cent market share in terms of new business
income collection with the private sector contributing the remaining 35 per cent
share in 2009-10.
According to IRDA, total premium collected in 2009-10 was US$ 24.64 billion, an
increase of 25.46 per cent over US$ 19.64 billion collected in 2008-09.
A growth of 18 per cent is expected in total premium income and is likely to cross
the US$ 64.93 billion mark, according to B Mathur, Secretary General, Life
Insurance Council.
General Insurance:
Vehicle financing firm, Magma Fincorp has applied to IRDA for approval and
expects clearance in 2010. The firm is entering the general insurance business in a
joint venture with Germany-based Company HDI-Gerling International Holding
AG.
According to data released by IRDA, the general insurance industry recorded 13.42
per cent growth in gross premium collected during 2009-10. The industry collected
gross premium of US$ 7.84 billion in 2009-10 compared with US$ 6.91 billion in
2008-09.
The public sector players posted 13.85 per cent growth in gross premium in 2009-
10. At the same time, private players recorded a 12.82 per cent increase in gross
premium till March 2010.
During April-May 2010, non-life insurers mopped up US$ 1.59 billion against US$
1.34 billion in the previous year, registering an increase of 19 per cent according to
IRDA data.
The four state-run insurers fared better than their private counterparts, with New
India Insurance collecting the maximum premium of US$ 294.5 million in April
and May 2010, compared to US$ 253.15 million in the previous year, growing by
16.34 per cent.
According to the IRDA's Summary Reports of Motor Data of Public and Private
Sector Insurers - 2008-09, nearly 30 million vehicle policies were issued and a
total premium worth US$ 1.83 billion was collected.
Health Insurance:
The Indian health insurance market has emerged as a new and lucrative growth
avenue for both the existing players as well as the new entrants. According to a
latest research report "Booming Health Insurance in India" by research firm
RNCOS released in April 2010, all emerging trends including the key factors
driving the market growth.
Furthermore, the report also identifies what could be the possible growth areas for
expansion and gives a detailed overview of the competitive landscape. The Indian
health insurance market has continued to post record growth in the last two fiscals
(2008-09 and 2009-10).
Moreover, as per the RNCOS estimates, the health insurance premium is expected
to grow at a compound annual growth rate (CAGR) of over 25 per cent for the
period spanning from 2009-10 to 2013-14.
Moreover, total premium between April and December 2009 was US$ 1.35 billion,
up from US$ 1.12 billion, an increase of 20 per cent, as per figures released by the
regulator.
Bancassurance:
Private insurers have adopted bancassurance in a much bigger way than the state-
owned Life Insurance Corporation (LIC) in recent years. Bancassurance is
distribution of insurance products through a bank's network.
In 2008-09, private insurers forked out US$ 44.64 million as commission for
bancassurance, while the payout by LIC for this distribution model was only US$
26,075, as per official data.
Investments:
The Indian insurance unit of Dutch financial services firm ING plans to invest US$
51 million in 2010/11 to fund expansion in India. Private life insurer Future
Generali India will expand its distribution network by opening around 100
branches in addition to its existing network of 91 branches during 2010. It will also
increase the agency force by 21,000 to 65,000 people.
Max Bupa, the health insurance JV between UK's Bupa and the Max Group plans
is set to invest a further US$ 134.9 million in its health insurance segment over the
next five years. Besides the existing six cities, it plans to foray into Surat, Jaipur
and Ludhiana by the end of 2010.
Investment Policy:
According to a guidance note released by IRDA, the regulator has increased the
lock-in period for all unit-linked insurance plans (ULIPS) to five years from the
current three years, thereby making them long-term financial instruments, which
basically provide risk protection.
The commission and expenses have also been reduced by evenly distributing them
throughout the lock-in period. Moreover, IRDA said that insurers will provide a
mortality cover or a health cover to all ULIPS, other than pension and annuity
products, thereby increasing the risk cover component on them.
IRDA has ordered life insurers to offer customers a guaranteed return of 4.5 per
cent per annum on pension and annuity plans.
CHAPTER-3
COMPANY PROFILE
IDBI FORTIS LIFE INSURANCECO.LTDCOMPANYPROFILE
IDBI Fortis Life Insurance Co. Ltd., is a joint venture between three financial
companies – Development and Commercial Bank, IDBI Bank, India’s private
sector Bank, Federal Bank and European insurer Ageas (formerly Fortis).
IDBI Fortis Life Insurance Co. Ltd. was formed on March 2008. In this venture,
IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity
each. The Headquarters is located in Mumbai, India.
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial
development bank. Created in 1956 to support India’s industrial backbone, IDBI
Bank has since evolved into a powerhouse of industrial and retail finance. Today, it
is amongst India’s foremost commercial banks, with a wide range of innovative
products and services, serving retail and corporate customers in all corners of the
country from 720 branches and 1228 ATMs.
The Bank offers its customers an extensive range of diversified services including
project financing, term lending, working capital facilities, lease finance, venture
capital, loan syndication, corporate advisory services and legal and technical
advisory services to its corporate clients as well as mortgages and personal loans to
its retail clients.
Federal Bank is one of India’s leading private sector banks, with a dominant
presence in the state of Kerala. It has a strong network of 708 branches and 749
ATMs spread across India. The bank provides over four million retail customers
with a wide variety of financial products. Federal Bank is one of the first large
Indian banks to have an entirely automated and interconnected branch network.
In addition to interconnected branches and ATMs, the Bank has a wide range of
services like Internet Banking, Mobile Banking, Tele Banking, Any Where
Banking, debit cards, online bill payment and call centre facilities to offer round
the clock banking convenience to its customers. The Bank has been a pioneer in
providing innovative technological solutions to its customers and the Bank has
won several awards and recommendations.
Mission
To continually strive to enhance customer experience through innovative
product offerings, dedicated relationship management and superior service delivery
while striving to interact with our customers in the most convenient and cost
effective manner. To be transparent in the way we deal with our customers and to
act with integrity. To invest in and build quality human capital in order to achieve
our mission.
Values
Transparency: Crystal Clear communication to our partners and
Stakeholders.
And partners.
Excellence
"In every aspect of work. Ranging from the in-house training institute to the
detailed Personal Insurance Plan. IDBI Fortis is focused on achieving the highest
standards of quality in every aspect of their business".
Honesty
"Is the heart of the Life Insurance business. IDBI Fortis believes that above all,
Life Insurance is based on trust. Transparency, Dependability and Integrity will
form the cornerstones of the IDBI Fortis experience."
Knowledge
"Is what makes experts. IDBI Fortis is focused on the Life Insurance business.
Perfectly combining global expertise with local knowledge, IDBI Fortis is the
Indian Life Insurance specialist."
Caring
"For the customer. IDBI Fortis is redefining the Life Insurance paradigm to focus
on the needs of the customers. The IDBI Fortis service process is responsive,
personalized, humane and empathetic."
Culture:
Our "in house culture recipe" has some of the finest ingredients going into its
making. Some of the more prominent aspects of our culture are stated below:
To monitor and manage its network equipment across 34 sites, IDBI Fortis uses
Tulip Proactive Managed CE solution. The solution includes device management,
proactive troubleshooting and notification support. With the implementation of the
solution, IDBI has reported improvement of network performance and availability,
with a faster, more effective change and configuration management.
Products
IDBI Fortis launched its first set of products across India in March 2008, after
receiving the requisite approvals from the Insurance Regulatory and Development
Authority (IRDA). IDBI Fortis offers services through a nationwide network
across the branches of IDBI Bank and Federal Bank in addition to a network of
advisors and partners. IDBI Fortis has 35 branches across the country.
Sponsorships, Awards
IDBI Fortis Life Insurance Company was selected as the title sponsor for the India-
Sri Lanka Cricket Series. This was followed by the IDBI Fortis Wealthsurance
Twenty20.
‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Fortis for its
sales force, won The Bronze Dragon in the category for ‘Best Dealer/Sales Force
activity’ at the Promotion Marketing Awards of Asia (PMAA).
ORGANIZATIONAL STRUCTURE
G.V NAGESHVAR
RAO
(MD& CEO)
MURLI IYER
(Country Head
Sales)
G.V NAGESHVAR
RAO
(MD& CEO)
MURLI IYER
(Country Head Sales)
MALLIKA SARAWATH
(Human Resource
Head)
Assitant Manager
There are no Zonal Heads in the Human Resource Department the area Human
Resource executive only acts as the Human Resource Manager and reports all the
activities to the Head Office that is in MUMBAI.
OPERATIONS ORGANIZATIONAL STRUCTURE
MURLI IYER
(Country Head Sales)
The Zonal Managers are supported by Branch Support Executives and the
Operations department is present only in the Head Office which is in
MUMBAI.
Products Profile:
4.3.1 Wealthsurance: Insured Wealth Plans; wealth under a protective cover.
WealthsuranceTM offers you Insured Wealth Plans. They allow you to create build
and manage wealth by giving several choices and great flexibility so that your plan
meets your specific needs. You can decide how you wish to save so that it suits
your savings habit. You can choose how your money is invested so that you can
grow wealth as per your investment preferences. What is even better,
WealthsuranceTM protects your wealth plans with insurance benefits so that your
wealth-building efforts remain unaffected in unforeseen events and your financial
goals can still be achieved.
What is Wealthsurance?
Life insurance is sometimes thought of as for those who might die, but
Wealthsurance is for those who will live. Usually life insurance products provide
benefits upon death
Eligibility: This plan is available for men and women from age 18 up to age 50.
Death Benefit: In the event of unfortunate death of the insured person during the
policy term, we will pay a death benefit of Rs 5,000, Rs 10,000, Rs 15,000 or Rs
20,000 depending on the single premium paid.
Suicide Exclusion: We will not pay any death benefit if the insured person
commits suicide within 12 months from the commencement date of the policy.
Maturity Benefit: This is a pure term insurance plan and this plan has no maturity
benefit.
Nomination: At any time before the expiry of the policy, you may nominate a
person to whom we will pay the death benefit. If the nominee is a minor, you need
to appoint a person to hold the benefit until the nominee’s 18th birthday.
Free Look Period: You are entitled to a free look period for 15 days from the day
you receive this policy. If before the end of this time you do not wish to continue
this policy, then you may request us in writing to cancel the policy. We will refund
the premium paid by you after deducting a proportionate risk premium for the
insurance cover we provided to you during that time. We will also deduct any
medical examination costs and stamp duty charges incurred by us in respect of
your policy.
Tax Benefits: Premiums paid are eligible for tax benefits under Section 80C and
death benefit is tax-free under Section 10(10D) of the Income Tax Act, 1956.
Vacation to a tropical island, pursuing your hobby or flying abroad to be with your
family and friends. Whatever may be your idea of having a good time, the one
thing common to all, is that it requires money.
The earlier generations may not have had a formal retirement plan, but they had
relatively fewer consumption needs. It was rare to find people who had shifted
through several jobs in the course of an active career. As a result, pensions and
gratuities issued by their employers were deemed sufficient. Times have changed
now, and in most contemporary industries, few employers provide for a lifelong
pension.
This is coupled with the high incidence of lifestyle diseases like diabetes, blood
pressure and heart problems. The improved medical technology has increased
longevity, but along with it the cost of healthcare has increased manifold.
Thus managing finances during retirement would be extremely tough, if one hasn’t
planned for retirement. The best way to enjoy the good times in your golden years
would be, to build your finances in advance for retirement.
IDBI Fortis RetiresuranceTM Pension Plan is an effective instrument that will help
you achieve this objective. It not only allows you to conveniently save for the
golden years but also offers you a wide choice of investment options to grow and
multiply your wealth. The Plan is extremely flexible and offers several choices so
as to suit your savings habit and investment risk preferences.
The IDBI Fortis RetiresuranceTM Pension Plan can thus be your ideal investment
partner in ensuring a happy retirement.
Immediate Annuity one of the best financial decisions that you can take today is to
plan for adequate income after retirement. The three key concerns during your
golden years will be increasing healthcare cost, higher life expectancy and rising
prices.
All you need is a steady flow of income which can take care of all your concerns.
Presenting the IDBI Fortis IncomesuranceTMImmediate Annuity which gives you
guaranteed income throughout your life.
Immediate Annuity
• Protection for wealth plans so that your wealth-building efforts are unaffected by
unforeseen events .
• Protection of loan liabilities so that debt does not become a burden when life
throws surprises.
• A whole package of Living Benefits so that you are well cared for in the event of
health crises, accidents or disablement.
STRENGTHS:
IDBI FORTIS is the only private insurance company with 48% stake of
Government.
IDBI FORTIS offers ULIP plan “WealthSURANCE” with increased
returns.
Good place to work.
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.
Strong and well spread network of qualified intermediaries and sales
person.
Large pool of technically skilled manpower with in-depth knowledge and
understanding of the market
WEAKNESSES:
OPPORTUNITIES:
Big public sector insurance companies like Life Insurance Corporation (LIC)
of India, National Insurance Company Limited, Oriental Insurance Limited,
New India Assurance Company Limited and United India Insurance
Company Limited. People trust and go to them more.
Very high competition prevailing in the industry.
Definition of Training:
Areas of training:
Company policies and procedures
Human relations training
Skill based training
Problem solving training
Onsite Workshops for Leadership Team
All managers need methods. Leaders need to know the most effective
techniques for guiding teams, mentoring individuals, and validating the results.
Without solid methods, managers will revert use a one-size-fits-all approach to
leadership that reflects the leader's personality, rather than the employees' needs.
For achieving this objective, it has values like Transparency, Value to customers,
Rock solid delivery to promise, Customer friendly and profit to shareholders
impregnated into its management culture. For not achieving the target set for the
Wealthsurance advisors, the management style is constructive and not punitive.
Employees are given motivation by their seniors on how to strike a cord with their
customers and illustrate the benefits of the Wealthsurance plan to its customers.
Programs like Quick Starter king/Queen, Hero March, Super April, Best performer
and Best Project augmented the morale of the interns. Monetary compensation in
the form of commission and non monetary compensation (Stature oriented) like
Best performer and Best project really gave us the drive to work in for the
company.
5. Control: Like every other Insurance company in India, IDBI Fortis was
controlled in its operations by its parent companies and the Insurance Regulatory
development authority (IRDA) externally. Employees in the organization were
controlled by Rewards system which was promotions and a constructive approach
was undertaken to identify and help the under- performers. As Summer Interns, we
were also controlled by the level of our performance.
As our performance increased which was selling of more no. of policies, we were
given more marks as allocated to the company guide and exceptional performance
were assured PPO. We were also controlled by the fact that as we were the brand
ambassadors of the company when we came across customers as so needed to
work with the customer adhering to full principles of TCF (treating customers
fairly)
Training is must for every individual when he enters into the organization. Even
though the candidate has experience he also should get training. Why because the
organization culture, values and beliefs are different from one organization to
other. That’s why the training program plays a key role in every organization.
Interpersonal skills
Excellent communication skills
Understanding nature
Aggressiveness
Convincing skills
Ability to motivate others
Interest to learn
CAREERSURANCE:
At IDBI Fortis Life Insurance, employees strive to provide a greater value to their
customers. The employees are also the internal customers. It becomes imperative
that they garner and nurture a high-quality team that is dedicated to the common
cause. They invest in this team and provide them with exciting opportunities from
time to time that can make them look at insurance as a long term career. Let's
address the myths about choosing a career in Life Insurance, below:
# Fact: Contrary to popular belief the life insurance industry in India is still
growing at a higher rate than most other industries and the life insurance
penetration as a percentage of GDP continues to be below the world average,
which means that life insurance still has a long way to go before it becomes
saturated.
# Fact: While insurance is preferred over mutual funds and direct equities,
majority of Indians still invest in post office and bank deposits. Wealthsurance™ is
an innovative look at insurance; it comes with a unique proposition that delivers
greater value than other investments.
# Fact: IDBI Fortis looks at the entire category differently. They have put in
huge efforts to make their products more attractive for their customers, easing the
entire sales effort. All the teams have been consistently performing much above
targets.
# Fact: At IDBI Fortis, ample training and tools are created to help employee
perform. Trainers help employee look at life insurance as a career, giving
employee opportunities at different stage to grow and excel. This long term
outlook and goal-orientation with timely encouragement helps employee perform
and hence build job security.
- Coordinate with the Sales Teams to get nominations for the programs.
- Playing the role of an effective classroom trainer with high energy and
good preparation.
Team.
Ensure effectiveness.
Be a change agent:
7. Wealth Protector
a. Guaranteed Return Funds
i. Guaranteed Return Fund gives you written guarantee of
minimum growth for 5years / 10years
ii. Money is invested in short term and long term safe bonds
iii. On maturity you can redeem units at the guaranteed NAV or
prevailing NAV whichever is higher
iv. You can enter the fund at the available NAV on the investment
date
b. Monthly Guaranteed Interest Fund
i. MGIF is a unique option available only with IDBI Fortis
Wealthsurance.
ii. Monthly interest rate applicable for that month is declared at the
beginning of every month
iii. Daily earned interest is deposited in your account so you get
interest on interest on a day to day basis. If the actual returns
are higher than guaranteed rate, you get higher returns
iv. Your money is invested in short term and long term safe bonds
v. Your money grows much faster than in a bank and is safe from
market risks
c. Dynamic Guarantee Fund
i. It lets you enjoy the returns of the stock market without having
to worry about the losses
ii. It protects the face value or the highest NAV per unit achieved
during the subscription period
d. Equity Growth Fund
i. This is a diversified Aggressive Equity Fund
ii. The fund invests is listed large cap stocks across multiple
sectors
iii. Full equity participation through a professionally managed
fund, consistently aims to beat the benchmark index
iv. Gives benefits of a long term plan with short term liquidity
e. Nifty Index Fund
i. Nifty Index Fund invests in Nifty Stocks and aims to beat the
index
ii. Returns are at par with the market and offer relatively lower
risk as compared to Equity Growth Fund
f. Mid Cap Fund
i. Your money is invested in Mid Cap Stocks with attractive
growth prospects
ii. It aims to diversify risk by investing in large cap as well as
fixed income investments
g. Income Fund
i. This fund aims to generate interest through investments in term
deposits, short term bonds etc with low to medium risk
h. Liquid Fund
i. This fund invests money in short term instruments with low risk
like treasury bills, commercial paper, etc
i. Bond Fund
i. Your money is invested in short term and long term fixed
income securities like bonds and term deposits
ii. It aims to generate optimum returns by diversification and
trading these instruments in secondary markets to generate
interest
j. Asset Allocator
i. Provides you with a personal Fund Manager
ii. You only indicate the level of risk (Cautious, Moderate,
Aggressive) ad your money will be invested accordingly
iii. Three options of investment with following equity percentage
1. Cautious (25%)
2. Moderate (50%)
3. Aggressive (100%)
iv. Based on market fluctuations your Fund Manager manages the
switching and redirectio
o Period is 2 days
o Includes basic idea about the Life Insurance Terminologies
Sum Assured – The assured amount, to the person, to be paid.
Consideration – Premium
Insurer/Proposer – The person who is sponsoring the policy.
Insured – The person whose life is insured or the policy is taken
up.
Contract - Enforceable agreement between the Insurer and the
Insured.
Insurable Interest – Loss due to the person’s death.
Husband-Wife, Wife-Husband, Father-Child, Creditor-
Debtor, Employer-Employee.
Utmost Good Faith – The Mutual Trust between the Insurer and
the Insured.
Premium – Mortality, Investment, Contingency/Death Benefit,
Expense.
Nominee – The person who shall get the death benefit if any
contingency occurs to the insured person.
o Detailed chapters on:
Incomesurance™ Endowment & Money Back Plan
Wealthsurance™ Brochure
Homesurance™ Protection Plan Brochure
Homesurance™ Plan Brochure
InsuranceBasket™ Brochure
Bondsurance™ Brochure
Termsurance™ Grameen Suraksha Brochure
Termsurance™ Protection Plan Brochure
Termsurance™ Grameen Bachat Yojana
Retiresurance™ Brochure
Group Microsurance™ Plan Brochure
Incomesurance™ Immediate Annuity
Healthsurance™ Hospitalisation and Surgical Plan
Process Training
o Period is 1 day
o Online Console Training
Tracking NAV – Net Asset Value
Premium Calculators and Tools
Paying Online
o Filling up the Forms.
o Basic knowledge about the Medical Reports
Training on AML Guidelines and KYC:
Banks are exposed to the following risks which arise out of Money Laundering
activities and non-adherence of KYC standards.
Reputation Risk
Compliance Risk
Operational Risk
Legal Risk
Risk of loss due to any legal action the bank or its staff may face due to
failure to comply with the law.
Investment Basics
What is Investment?
The money you earn is partly spent and the rest saved for meeting future expenses.
Instead of keeping the savings idle you may like to use savings in order to get
return on it in the future. This is called Investment.
The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding increases
your income, by accumulating the principal and the interest or dividend earned on
it, year after year. The three golden rules for all investors are:
12 Invest early
13 Invest regularly
14 Invest for long term and not short term
Securities Exchange Board of India (SEBI) is the regulatory body for all the
mutual funds. All the mutual funds must get registered with SEBI.
Small investments: Mutual funds help you to reap the benefit of returns by a
portfolio spread across a wide spectrum of companies with small investments.
Spreading Risk: An investor with limited funds might be able to invest in only
one or two stocks/bonds, thus increasing his or her risk. However, a mutual fund
will spread its risk by investing a number of sound stocks or bonds. A fund
normally invests in companies across a wide range of industries, so the risk is
diversified.
Choice: The large amount of Mutual Funds offer the investor a wide variety to
choose from. An investor can pick up a scheme depending upon his risk/ return
profile.
Regulations: All the mutual funds are registered with SEBI and they function
within the provisions of strict regulation designed to protect the interests of the
investor.
What is NAV?
NAV or Net Asset Value of the fund is the cumulative market value of the assets
of the fund net of its liabilities. NAV per unit is simply the net value of assets
divided by the number of units outstanding. Buying and selling into funds is done
on the basis of NAV-related prices.
The NAV of a mutual fund are required to be published in newspapers. The NAV
of an open end scheme should be disclosed on a daily basis and the NAV of a close
end scheme should be disclosed at least on a weekly basis.
A Load is a charge, which the mutual fund may collect on entry and/or exit from a
fund. A load is levied to cover the up-front cost incurred by the mutual fund for
selling the fund. It also covers one time processing costs.
Some funds do not charge any entry or exit load. These funds are referred to as ‘No
Load Fund’. Funds usually charge an entry load ranging between 1.00% and
2.00%. Exit loads vary between 0.25% and 2.00%.
Mutual Funds do not provide assured returns. Their returns are linked to their
performance. They invest in shares, debentures, bonds etc. All these investments
involve an element of risk. The unit value may vary depending upon the
performance of the company and if a company defaults in payment of
interest/principal on their debentures/bonds the performance of the fund may get
affected. Besides incase there is a sudden downturn in an industry or the
government comes up with new a regulation which affects a particular industry or
company the fund can again be adversely affected. All these factors influence the
performance of Mutual Funds. Some of the Risk to which Mutual Funds are
exposed to is given below:
Market risk
If the overall stock or bond markets fall on account of overall economic factors, the
value of stock or bond holdings in the fund's portfolio can drop, thereby impacting
the fund performance.
Non-market risk
Bad news about an individual company can pull down its stock price, which can
negatively affect fund holdings. This risk can be reduced by having a diversified
portfolio that consists of a wide variety of stocks drawn from different industries.
Bond prices and interest rates move in opposite directions. When interest rates rise,
bond prices fall and this decline in underlying securities affects the fund
negatively.
Credit risk
Bonds are debt obligations. So when the funds invest in corporate bonds, they run
the risk of the corporate defaulting on their interest and principal payment
obligations and when that risk crystallizes, it leads to a fall in the value of the bond
causing the NAV of the fund to take a beating.
What are the different investment plans that Mutual Funds offer?
The term ’investment plans’ generally refers to the services that the funds provide
to investors offering different ways to invest or reinvest. The different investment
plans are an important consideration in the investment decision, because they
determine the flexibility available to the investor.
A growth plan is a plan under a scheme wherein the returns from investments are
reinvested and very few income distributions, if any, are made. The investor thus
only realizes capital appreciation on the investment. Under the dividend plan,
income is distributed from time to time. This plan is ideal to those investors
requiring regular income.
This program is led by the Trainer and the Assistant Manager – HR. This program
is exclusively done for the trainees to get into the business immediately.
There are total Three Steps in this process:
1. WELCOME: The employees are put into a process with respect to their
profile as co-ordinated with the Recruiting team. The process may be either
of the following:
a. Sales Manager
b. Tele caller
c. Back office operator
d. Database Administrator
The details of the key contacts and decision makers who can be
useful.
Potential customers within your area who may generate profit on a
regular basis.
Below are found some typical figures for the volumes of leads that can
be handled and the results when using the above mentioned strategy:
Up to 25 separate contacts/companies per day.
Around 8-10 new leads, 15+ recalls.
Approximately 10-12+ new letters/emails out per day.
Between 1-2 appointments agreed.
Up to 150+ contacts under development at any one time.
Generally 3-5 targeted potential HNI clients per month.
Generally one strong new connection every 6-7 weeks
These projects are often very valuable because they are based upon personal
connections with employees with the firm. This being the case a system to
encourage and reward such input is put in place. This system is managed properly
at a minimal cost to the company.
3. PRODUCT REFRESHER:
A quick go through about the products/plans offered by IDBI Fortis Life
Insurance Co. Ltd. The products include:
i. Incomesurance™ Endowment & Money Back Plan
ii. Wealthsurance™ Brochure
iii. Homesurance™ Protection Plan Brochure
iv. Homesurance™ Plan Brochure
v. InsuranceBasket™ Brochure
vi. Bondsurance™ Brochure
vii. Termsurance™ Grameen Suraksha Brochure
viii. Termsurance™ Protection Plan Brochure
ix. Termsurance™ Grameen Bachat Yojana
x. Retiresurance™ Brochure
xi. Group Microsurance™ Plan Brochure
xii. Incomesurance™ Immediate Annuity
xiii. Healthsurance™ Hospitalisation and Surgical Plan
ABCD of Closing:
2.1. Call-back: To call back in case the customer doesn’t receive the call.
3. Appointment: Fixing up a time and a date to meet the customer for direct
Interaction.
4. Explanation: To explain the entire plan of the policy to the customer with
Showing all the details along with the brochure and returns
Chart.
5.1. Follow-up: To keep in touch with the customer for further response.
Premium.
7. Closing: This refers to submitting the policy of the customer in the office with
8. Log-in: This refers to logging in the details of the customer and policy in the
MDP is to build on the core selling skills and to introduce more advanced sales
concepts. To analyze in depth how behavior impacts on the way customers buy and
to establish ways of identifying these customer preferences thereby converting
them into opportunities to sell. This program is for Management Level employees,
who are responsible for major accounts, or who would benefit from further skill
development.
This program also enables delegates to have a clear understanding of the Sales
Management role and how to become more effective Managers. The program is
suitable for experienced Managers, as well as those who have been, or are about to
be, promoted into Executive Level Management.
Program objectives:
Credit session Reward points will be given by trainer conducting the specific
session.
Life insurance and retirement plans are one of the most effective ways of
saving taxes
Life Insurance Plans and certain types of annuity plans are eligible for
deduction under Section 80C.
Specified Pension Plans are eligible fr a deduction under Section 80CCC.
The contributions/payments made towards the life insurance plans and
annuity/pension plans are eligible for an overall tax deduction of Rs.
1,00,000/-.
Health Insurance Plans/Riders are separately eligible for deduction under
Section 80D.
The proceeds or withdrawals from Life Insurance Policies are exempt under
Section 10(10(D)), subject to norms prescribed in that section.
Product Training
Lead
Calling
Appointment
Explanation
Documentation
Pick-up
Closing
Log-in
Issuance
Male 35
Female 15
Gender
Gender
35
15
Male Female
Interpretation:
Average age of the respondents is 35 years.
Out of 50 respondents, Male employees are 35 and Female Employees are 15.
Ques01. According to you; what is the purpose of Training?
Percentage
Career Orientation 25 50
Options
Knowledge & Skill Career Orientation
50% 50%
Interpretation:
50% of employees believe that Training is for acquiring Knowledge and Skill. The
other 50% of employees believe that it is for Career Orientation.
Ques2: What is your opinion on Training Process?
Percentage
Good 16 32
Very Good 25 50
Bad 5 10
Options
Good Very Good Bad Time Waste Process
8%
10%
32%
50%
Interpretation:
50% employees said that the training process is very Good. 32% employees said
that it is Good.
Ques 03: Do you feel that training process will be helpful for individual growth?
Percentage
Yes 35 70
No 15 30
Options
Yes No
30%
70%
Interpretation:
Percentage
Poor 6 12
Need Improvement 11 22
Fair 14 28
Good 16 32
Excellent 3 6
Options
Options
14 16
11
6
3
Interpretation:
60% employees believe that the trainer’s knowledge is up to the mark. 34% of the
total respondents are unhappy about the trainer’s knowledge.
Ques 05: Is there any improvement in performance after the training program?
Percentage
Yes 27 54
No 23 46
Percentage
Yes No
46%
54%
Interpretation:
Percentage
Agents 6 12
Tele Callers 2 4
Operations Executives 16 32
All 27 54
Options
All
Operations Executives
Options
Tele Callers
Agents
0 5 10 15 20 25 30
Interpretation:
54% employees believe that all domain people require knowledge about the
company and product.
Ques 07: According to you; what should be the tentative time/convenient time for
the training process?
Percentage
Morning 21 42
Afternoon 15 30
Evening 14 28
Percentage
Evening
28% Morning
42%
Afternoon
30%
Interpretation:
42% employees are comfortable with the morning sessions, while approximately
equal percentage employees are comfortable with Evening and Afternoon
Sessions.
Ques 08: Are you interested; if there are classes on Weekends?
Percentage
Yes 20 40
No 30 60
Percentage
Yes No
40%
60%
Interpretation:
Percentage
All of them 26 52
Percentage
Company policies and Procedures Skill based training
Problem solving skills All of them
14%
12%
52%
22%
Interpretation:
52% employees believe that an employee should be trained in all the areas, while
22% believe that Problem solving skills are of utmost importance.
Ques 10: How much are you satisfied with the Training Process?
Percentage
Extremely Satisfied 6 12
Satisfied 22 44
Dissatisfied 14 28
Extremely Dissatisfied 3 6
Options
25
20
15
10 Options
0
Extremely Satisfied Neither Dissatisfied Extremely
Satisfied Satisfied nor Dissatisfied
Dissatisfied
Interpretation:
56% employees are satisfied with the training process, while 34% are not satisfied.
CHAPTER-6
FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
FACTS AND FINDINGS
More than 50% employees believe that training should be given in all the
areas like Policies and Procedures, Skill based Training and Problem
Solving Skills.
Company should consider the present competition and should act according
to the customer needs.
There should be long term training like Fundamental Carrier class, Basic
Carrier class which helps the advisors in different stages.
CONCLUSION
IDBI Fortis Life Insurance Co. Ltd. is a new private player in the Indian
Insurance Market.
It is the only private company with a Government Stake of 48%.
Its only 2 years old company and a very fast growing insurer.
The Training and Development process at IDBI Fortis is systematic.
The training process is carried out session wise.
The entire training process is based on Training Reward Point System.
There are 2 broad types of training, as per TRP System:
o Trainer to Employee
o Employee to Distributor
The training sessions are divided into 2 phases
o Self Learning Modules
o Trainer Led Sessions
There are different chapters for each module and are explained in a
PowerPoint Presentation method to the trainees.
There is also a training module for Management Level Employees (MDP).
There are modules on Sales, to enhance selling techniques of the employees.
Awards are given to the employees and distributors to appraise their
performance
System is fair and clean. There are no complications whatsoever, as been
told by the respective managers.
QUESTIONNAIRE
1. Name:
2. Age :
3. Gender : Male Female
4. Designation :
5. Email id :
6. Mobile No. :
12. Who needs much knowledge regarding the company and product?
Agents Tele callers Operations executives All
13. According to you; what should be the tentative time / convenient time
For the training classes?
Satisfied
Dissatisfied
Extremely Dissatisfied
But e-learning is not necessarily the cut-price panacea some might like to imagine.
Its value in practice varies greatly depending on how effectively companies
manage the way their staff use e-learning materials. It can never remove the need
for training managers to plan and direct learning programmers tailored to the
training needs of the individual and the business, but it can make the process a lot
easier to implement, manage, monitor and record.
Nor is e-learning necessarily the right approach for every individual. Prakash
Sudra, team leader with Epping-based brokers J&M Insurance comments: "I've
found that different people respond to different training approaches. Some take to
the online approach like a duck to water and pick up knowledge very rapidly that
way. Others need more face-to-face input. So it is always a question of balancing
the two in a way that is going to develop that individual's skills most effectively."
Training managers often find in practice that more complex and technical subjects
also require a face-to-face approach. Although some systems allow students to
email queries to course authors, there is no real substitute for the ability to quiz an
experienced trainer face-to-face.
BIBLIOGRAPHY
Websites:
o www.idbifortis.com
o www.economictimes.com
o www.irdaindia.com
o www.moneycontrol.com
o www.citehr.com
o www.timesofindia.com
Company Information:
o Training and Development Details – IDBI Fortis, Hyderabad Branch
Office.
o Company Information – IDBI website.
office.
o Questionnaire Respondents – Employees from IDBI Fortis – Hyderabad,