Project of Bharti-AXA Life Insurence Co.

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Sales Promotion, Recruitment, Training & Development of Life Advisors

Submitted in Partial Fulfillment of the Requirements for the Award of Degree Of MASTER OF BUSINESS ADMINISTRATION U.P.TECHNICAL UNIVERSITY, LUCKNOW ACADEMIC SESSION (2008-2010)

SUBMITTED BY:
NARENDRA KUMAR Roll No. : 0807470047 UNDER THE GUIDENCE OF: Mr. PRASHANT SHARMA

DEWAN INSTITUTE OF MANGEMENT STUDIES BY PASS ROAD, PARTAPUR, MEERUT [250001]

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

ACKNOWLEDGEMENT:

The project was a great source of learning and a good exposure as it gives an opportunity to co-relate the theoretical knowledge with practical experience, though during one‘s ambitions one always encounters certain difficulties. However overcoming these difficulties and making the project a success greatly depends upon the encouragements, inspirations and help rendered by the staff members of the organization. I am very much grateful and feel indebted Mr. Ashish Kumar Srivastava Agency Manager of (Bharti Axa Life Insurance Co. , Lucknow) for giving me this opportunity to work for his organization under whose guidance I am able to complete my project. His co-operation has sustained me through the entire period of my project. I would also express my gratitude to Mr. J. C. Pant (Director) Of Dewan Institute of Management Studies ,Meerut ,Mr. Gaurav Kaushik ((Head of the Dept.M.B.A) ) & Mrs. Chitra teotia (Internal Guide) without their support my project would not have reached to this end .

Place : Lucknow Date : NARENDRA KUMAR

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

DECLARATION

I the undersigned, hereby declare that this project entitled ―SALES PROMOTION RECRUITMENT, TRAINING AND DEVELOPMENT of Life advisors at Bharti AXA, LUCKNOW” is written and submitted by me to DEWAN INSTITUTE OF MANAGEMENT OF STUDIES, MEERUT in partial fulfillment of the requirements for the award of MASTER OF BUSINESS

ADMINISTRATION under the guidance of my company guide Mr. Ashish Kumar Srivastava. This report neither full nor in part has ever been submitted for award of any other course of either this Institute or any other Institute.

NARENDRA KUMAR MBA 2008-2010

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

EXECUTIVE SUMMARY
The project is about recruitment, training and development of Life advisors. The project was undertaken by 6 member team and the entire task was divided into sub- tasks. The process started from identifying the need, then advertising the same to prospective individuals by distribution of pamphlets, holding various activities in residential areas etc. then individuals were surveyed. The questionnaire was designed in such a manner that it gave a general idea about the ability and capability of respondent as a prospective life insurance advisor. Certain scores were allotted depending on the answers given by the respondent. Those who were high on the scores were motivated to visit the office for conduction of their interview. After the successful completion of interview individuals were informed if they were selected for training of Life advisors. They were asked to fill the NAAF form and a fee was collected from them along with their photographs. After successful completion of training an exam was conducted and those who qualified the exam were selected as life advisors.

The project report submitted here covers theory on recruitment, training and development, flowchart of activities undertaken for recruitment, training and development, data analysis of the survey and a list of suggestions and recommendations for the company at the end of the entire study.

During the process of summer project we conducted activities in Residential colonies like ―Lucknow, Gonda, Balrampur etc.. The samples of the pamphlets that were designed and were distributed for such activities have been given in the annexure.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

TABLE OF CONTENTS

Contents Objective of Project Introduction to the Project Purpose of the Project Significance And Importance of the Project Scope of project Theory on sales promotion Theory on Recruitment and Training Training and Development Types of Training and Development Brief history of the Insurance sector in India Profile of Organization Joint Venture Bharti and AXA Bharti AXA Life Insurance Products of Bharti AXA Life Insurance Products for Individuals Products for Groups Research Design and Methodology Research Design Sample Design Recruitment Process Data Presentation, Analysis and Interpretation Findings and Suggestions Findings Suggestions Solutions Results Limitations of the Project Conclusion Bibliography Annexure Annexure 1 Annexure 2 1 3 4 5 6 7 23 27 27 35 40 41 43 45 45 47 48 52 53 54 63 74 75 76 77 79 80 83 85 86 87 89

Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

OBJECTIVES OF THE PROJECT
The objectives wereR- Recruitment T- Training D- Development C- Coding and Licensing I- Increase in Sales  To analysis insurance as an investment Plan.  To Analysis the pricing of different unit linked investment plans and handling lindges with other P's of marketing.  To study the consumer perception preference and behaviour product of Bharti AXA Life Insurance.

Team objective: To recruit more than 5 Life advisors during two months in Lucknow region.

Individual objective: To interview prospective candidates to be recruited as LA, assist Managers of Agency in selecting the candidates, make arrangements for BOP‘s and to assist in their training, coding and licensing thereby increasing the sales of the company.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

INTRODUCTION TO THE PROJECT
PURPOSE OF THE PROJECT
The purpose of the company project study was to:  Get hands on experience of recruitment in Insurance sector.  Understand the external recruitment process of Life advisors.  Applying theoretical knowledge to the recruitment practices at Bharti AXA.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SIGNIFICANCE AND IMPORTANCE OF THE PROJECT
In the last few years, the market has undergone some fundamental changes in terms of technologies, sources of recruitment, competition in the market etc. In an already saturated market, where the practices like poaching and raiding are gaining momentum, Sales professionals are constantly facing new challenges in one of their most important functionSelling. They have to face and conquer various challenges to find the best candidates for their organizations which can meet there targets. The project focuses on the challenges facing the Sales department in the growing insurance industry in India. Problems caused by the lack of skilled personnel and the increasing demand for skilled employees are also discussed in the project.

In addition, challenges regarding the recruitment, training and development of employees are examined. The project throws light on various measures taken by Sales department in insurance organizations to improve the environment and the productivity of employees.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SCOPE OF THE PROJECT
The project involved recruiting life advisors for Bharti AXA Life insurance in Lucknow region. The task was taken up by a 6 member team and the entire process of recruitment was divided into sub- tasks. To further it, the project also involved arranging for preliminary training of Life advisors.

The process of recruiting and training Life advisors can be broken into the following steps:  Identifying individuals who are willing to solicit insurance business as a life advisor of the company.  Assisting in scheduling the training and examination of the life advisors.  Assisting and coordinating with Agency Development Manager of the company for licensing and coding of Life Advisors.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

THEORY ON SALES PROMOTION
By their very nature, Bharti AXA Life Insurance require higher advertisement and sales promotion expenses than any consumer product offering measurable performance. Different kinds of advertising and sales promotion exercises are required to serve the needs of different classes of investors. For instance, an aggressive ‗push‘ marketing strategy is required for retail markets, where investors are not adequately aware of the product and do not have specialized skill in financial market, in contrast with ‗pull‘ marketing strategies for the wholesale market. There are certain issues with reference to advertisement, publicity literature and offer documents, which deserve attention. Most of the Life Insurance advertisements look similar, focusing on scheme features, returns and incentives. An investor exposed to the increasing number of Life Insurance products finds that all the available brands are rather identical, and cannot appreciate any distinction. The present form of application, brochures and other literature is generally lengthy, cumbersome and at times complicated leading to higher emphasis on advertisement. One of the limiting factors is the regulatory framework governing advertisements of Life Insurance products. For instance, in the offer documents, Bharti AXA Life Insuranceare required to mention the fund objectives in clear terms. Immediately thereafter, the first risk factor that has to be mentioned is that there is no certainty whether the objectives of the fund will be achieved or not. Some more relaxation in these may facilitate bringing more novelty in advertisements, within a broad framework, without luring investors through false promises, and will certainly improve the situation.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Another hurdle is the statutory disclaimer required to be carried along with every advertisement. Bharti AXA Life Insurancehave to provide risk factors. Under the present Life Insurance regulations, a prior approval by SEBI is a must before a Life Insurance can launch its fund. In the regulation itself, a period of one month has been provided. But in a month‘s time, perhaps the situation may so change, that the timing of launch gets affected. The requirement for getting approval, which normally takes about 2 months‘ time, defeats the purpose for which the fund was designed also. QUALITY OF SERVICE This industry primarily sells quality of services, given that the performance cannot be promised. It is with this attribute along with procedural simplicity, that the fund gradually builds its brand and its class of loyal investors. The qualities of services are broadly categorized as:  Timely services after the sale of the units; and  Continuous reporting of investment performance. Life Insurance managers must give due attention and evaluate their performance on each front. They may also consider an option of conducting a service audit for controlling and improving the quality of service.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

MARKET RESEARCH
Investment in Life Insurance is not a one-time activity. It is a continuous activity. The same investor, if satisfied, will come to the fund again and again. When the investor sends his application, it is not only an application, but it also contains vital information. Most of this information if tabulated and analyzed, would provide important insights into investor needs, preferences and behavior and enables us to target customers need more accurately, to achieve better penetration, deeper loyalty and reduced costs. It is in this context that direct marketing will assume increased importance. Knowing the customer thoroughly is of utmost importance. Unlike the consumer goods industry, it is not possible for Life Insurance industry to test market and have pilot projects before launch. At the same time, focusing and concentrating on a particular geographic area where the fund has a strong presence and proven marketing network, can help reduce network, can help reduce issue expenses and ultimately translate into higher returns for the investor. Very little research on investor preference is available, but the industry can collectively have a data bank, and share the information for appropriate use. Market Segmentation Different segments of the market have different risk-return criteria, on the basis of which they take investment decisions. Not only that, in a particular segment also there could be different subsegments asking for yet different risk-return attributes, and differential preference for various investments attributes of financial product. Different investment attributes an investor expects in a financial product are:  Liquidity,

 Capital appreciation,
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 Safety of principal,  Tax treatment,  Dividend or interest income,

 Regulatory restrictions,  Time period for investment, etc. On the basis of these attributes the Life Insurance market may be broadly segmented into five main segments as under. 1) Retail Segment This segment characterizes large number of participants but low individual volumes. It consists of individuals, Hindu Undivided Families, and firms. It may be further sub-divided into: i. Salaried class people; ii. Retired people; iii. Businessmen and firms having occasional surpluses; iv. HUF‘s for long term investment purpose. These may be further classified on the basis of their income levels. It has been observed that prospects in different classes of income levels have different patterns of preferences of investment. Similarly, the investment preferences for urban and rural prospects would differ and therefore the strategies for tapping this segment would differ on the basis of differential life style, value and ethics, social environment, media habits, and nature of work. Broadly, this class requires security of the principal, liquidity, and regular income more than capital appreciation. It lacks specialised investment skills in financial markets and highly susceptible to mob behaviour. The marketing strategy involving indirect selling

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

through agency network and creating awareness through appropriate media would be more effective in this segment. 2) Institutional Segment This segment characterizes less number of participants, and large individual volumes. It consists of banks, public sector units, financial institutions, foreign institutional investors, insurance corporations, provident and pension funds. This class normally looks for more specialized professional investment skills of the fund managers and expects a structured product than a ready-made product. The tax features and regulatory restrictions are the vital considerations in their investment decisions. Each class of participants, such as banks, provides a niche to the fund managers in this segment. It requires more of a personalized and direct marketing to sustain and increase volumes. 3) Trusts This is a highly regulated, high volumes segment. It consists of various types of trusts, namely, charitable trusts, religious trust, educational trust, family trust, social trust, etc. each with different objectives. Its basic investment need would be safety of the principal, regular income and hedge against inflation rather than liquidity and capital appreciation. This class offers vast potential to the fund managers, if the regulators relax guidelines and allow the trusts to invest freely in Life Insurances. 4) Non-Resident Indians This segment consists of very risk sensitive participants, at times referred as ‗fair weather friends.‘ They need the highest cover against political and exchange risk. They normally prefer easy exit with repatriation of income and principal. They also hold a strategic importance as they bring in crucial foreign exchange – a crucial input for developing country like

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

ours. Marketing to this segment requires special kind of products for groups of foreign countries depending upon the provisions of tax treaties. The range of suitable products are required to design to divert the funds flowing into bank accounts. 5) Corporates Generally, the investment need of this segment is to park their occasional surplus funds that earn return more than what they have to pay on account of holding them. Alternatively, they also get surplus fund due to the seasonality of the business, which typically become due for the payment within a year or quarter or even a month. They need short term parking place for their fund,. This segment offers a vast potential to specialized money market managers. Given the relaxation in the regulatory guidelines, fund managers are expected design products to this segment. Thus, each segment and sub-segment have their own risk return preferences forming niches in the market. Bharti AXA Life Insurancemanagers have to analyze in detail the intrinsic needs of the prospects and design a variety of suitable products for them. Not only is that, the products also required to be marketed through appropriately different marketing strategies.

AD’S THE WAY Increasing sales have given Life Insurance promoters the budget to spend more on advertising, which has further boosted sales The Atheists are turning believers. Life Insurances, private sector ones in particular, who had written off advertising as the ―ultimate waste of money‖ have nearly tripled their press media spend from Rs.12.20 crore
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

in the period January to April 1998 to Rs. 31.6 crore in January to April 1999, according to data supplied by Prudential ICICI AMC (PIAMC) and sourced from ORG-MARG. What‘s interesting is that in this period the share of the private sector Bharti AXA Life Insurancein the category‘s total media spending has surged from 20 percent to 52 percent. This can be attributed to private sector funds (given the data available with the Association of Bharti AXA Life Insuranceof India) seeing an increase share of net inflows relative to the bank-sponsored counterparts in the public sector. For proof, take a look at some figures. PIAMC – which spent Rs. 4.5 crore on advertising in the entire fiscal year 2000 has spent the same amount during the first four months of the current fiscal itself. Kothari Pioneer Life Insurance which spent a negligible amount on advertising in 1999-2000 and Rs.163 lakhs in 2001 has already spent Rs. 453 lakhs in the first three quarter. Birla Life Insurance, which spent Rs. 1 crore on advertising in the year 1999-2000 plans to double that amount.

Clearly advertising types have something to cheer about. But what‘s caused this sudden attitudinal shift towards advertising? According to experts, funds are being pushed into advertising more by intermediaries like banks who are reluctant to sell a product whose name is unfamiliar to investor. Besides, since more open-ended schemes are now available, some form of ongoing support to keep sales booming has been deemed necessary by the funds.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

In the words of Mr. Rajiv Vij, vice president marketing, Templeton Asset Management (India) Pvt. Ltd., ― The industry has discovered that advertising in the changed climate today, when investors are most receptive to Life Insurances, can perk up sales by anywhere between 2040 percent.‖ PIAMC managing director Ajay Srinivasan gives his rationale for stepping up marketing spends: ―we believe that the brand is an important part of the consumer‘s decision to invest in a category that is not yet clearly understood by people.‖ According to the Life Insurance marketers, advertising helps bring recall when consumers are looking at investment opportunities. Srinivasan says that tactical advertising has raised PIAMC‘s brand awareness from five percent in June 1993 to 34 percent now, as per a recent IMRB survey. Advertising backed by an integrated marketing and communication campaign designed to attract investors with long term prospective has helped the fund post a redemption-to-sales ratio of just about five percent as compared to 20-30 percent for the industry on an average. But what mode of advertising do these funds choose? ―To sell the category,‖ avers VIJ, ―mass media is more effective because one needs to target a large segment of the population.‖ Life Insurance marketers feel that since the category is ‗information – centric‘, press is the best medium to get across one‘s message. Within the print media, most marketers feel that a combination of leading mainline and financial newspapers complemented by finance/ business magazines, with relevant thematic appeal and editorial content are the perfect mix. Direct mail is another medium, which some funds have successfully used. But rather than sending out mailers to all and sundry, there is a need for appropriate targeting.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Educational seminars are the final leg in the marketing and communication process. In these, investors conditioned by advertising and hooked by an interesting mailer can have lingering doubts clarified. Attractive point of purchase (POP) material can also help. Another very successful media niche, which has been exploited to the hilt by funds, is intermediary magazines and newsletters. Besides the low costs of advertising in these newsletters, these publications circulate to those who are looking for investment opportunities and thus represent an extremely lucrative target segment. Advertising content by most of the funds too has undergone a marked change from concept-selling ads dispelling myths, to selling specific schemes that meet defined objectives/ goals. But why is advertising suddenly working for Bharti AXA Life Insurancewhen it doesn‘t seem to have made a difference earlier? A sustained marketing strategy instead of a few, scrappy ads is now seen to be the key to investor demand.

According to Birla Sun Life AMC chief market development officer N.K.Sharma, advertising serves as a reminder complementing a sales push by the distributor. ―Since the distributor wasn‘t ready in earlier years, advertising then, didn‘t work, ―he says. Brand building, is a longterm exercise. Just like Bharti AXA Life Insuranceadvocate that investors take a long-term approach to investing, similarly funds need to take a long-term approach to brand building. Fund marketers and industry observers however, caution against the danger of selling the product for the wrong reasons. Funds need to focus on sustainable communication. They need to build brands that strike a

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

chord with investors by relating to their concerns rather than selling flavour-of-the-month style. The winning formula as industry watchers put it is the troika of performance, service and trust for meeting long term needs or goals.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Changes that have taken place since the advent of the Net


Lower Costs: Distribution of funds will fall in the online trading regime by 2003. Bharti AXA Life Insurancecould bring down their administrative costs to 0.75% if trading is done on- line. As per SEBI regulations, bond funds can charge a maximum of 2.25% and equity funds can charge 2.5% as administrative fees. Therefore if the administrative costs are low, the benefits are passed down and hence Bharti AXA Life Insuranceare able to attract mire investors and increase their asset base.



Better advice: Bharti AXA Life Insurancecould provide better advice to their investors through the Net rather than through the traditional investment routes where there is an additional channel to deal with the Brokers. Direct dealing with the fund could help the investor with their financial planning.



In India, brokers could get more Net savvy than investors and could help the investors with the knowledge through get from the Net.



New investors would prefer online: Bharti AXA Life Insurancecan target investors who are young individuals and who are Net savvy, since servicing them would be easier on the Net.



India has around 1.6 million net users who are prime target for these funds and this could just be the beginning. The Internet users are going to increase dramatically and Bharti AXA Life Insuranceare going to be the best beneficiary. With smaller administrative costs more funds would be mobilized .A fund

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors


manager must be ready to tackle the volatility and will have to maintain sufficient amount of investments which are high liquidity and low yielding investments to honor redemption.



Net based advertisements: There will be more sites involved in ads and promotion of Life Insurances. In the U.S. sites like AOL offer detailed research and financial details about the functioning of different funds and their performance statistics. a is witnessing a genesis in this area . There are many sites such as indiainfoline.com and indiafn.com that are doing something similar and providing advice to investors regarding their investments.

Reasons for bad performance of Bharti AXA Life Insurance
Most investors associate Bharti AXA Life Insurancewith Master gain, Monthly Equity Plans of SBI Life Insurance, UTI and Canbank Life Insurance and of course Morgan Stanley Growth Fund. This is so because these funds truly had participation from masses, with a fund like Morgan Stanley having more than 1 million investors. Investors feel that after 5 years, Morgan Stanley Growth Fund units still trade below the original IPO price of Rs 10. It is incorrect to think that all Bharti AXA Life Insurancehave performed poorly. If one looks at some income funds, they have come with reasonable returns. It is only the performance of equity funds, which has been poor. Their poor performance has been amplified by the closed end discounts i.e. units of these funds quoting at sharp discounts to their NAV resulting in an even poorer return to the investor.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

One must remember that a Life Insurance does not provide assured returns and neither can it "manufacture" returns out of thin air. Returns provided by Bharti AXA Life Insuranceare a function of the returns in the underlying asset class in which the fund invests. Good funds can beat returns in their asset class to some extent but that‘s all. E.g. take the case of a sector specific fund like a pharma fund which invests only in shares of pharmaceutical companies. If the Govt. comes with new regulation that severely restricts the pricing freedom of these companies resulting in negative outlook for the sector, the prices of all stocks in the sector could fall substantially resulting in severe erosion in the NAV of the fund. No one can do anything about it. A good fund manager would probably sell part of the fund before prices fall too much and wait for an opportune time to reinvest at lower levels once the dust has settled. In that case, the NAV of the fund would fall to a lesser extent – but fall it will. If the investor in the fund has invested in some stocks in the sector on his own, in all probability, his personal investments may have depreciated to a larger extent. Most Life Insurance managers took some time to realize the changed circumstances wherein the open economy ushered in by the liberalization took the full impact of the global deflation in commodity prices. This problem was compounded further by the Asian crisis after which cheap imports from Asia caused severe pressure on profits. One more issue is that the fund managers in many funds were not "professionally qualified and experienced". This is especially true of some of the funds floated by nationalized banks. Some of these

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

individuals were transferred from the parent organization and did not really know much about investment management.

Lastly, investors would do well to have a look at the investments, which they made on their own. In most cases, they would have done much worse than the Life Insurances. We have received numerous requests for advice from individual investors on what to do about their own investments. If that were any indicator, investors would have done really badly.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Market Share of Bharti AXA Life Insurancein India
S.No. Asset Company 1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. ABN Amro Alliance Capital Benchmark Birla Sun Life BoB CanBank Cholamandalam Deutsche DSP ML Escorts Fidelity Franklin Templeton Global Insurance Co. HDFC HSBC ING Vysya Management AUM (Rs. In Crore) 1572.1 1341.91 495.85 10722.37 124.85 1895.46 910.79 2317.65 7074.2 122.62 1495.4 17079.3 122.09 15709.86 7569.61 1925.17 Market Share ( in %) 0.94 0.80 0.30 6.38 0.07 1.13 0.54 1.38 4.21 0.07 0.89 10.17 0.07 9.35 4.51 1.15

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

JM Financial Kotak Mahindra LIC Morgan Stanely Principal Pru ICICI Reliance Sahara SBI Standard Chartered Sundram TATA Taurus UTI MF Total AUM

3975.26 7296.86 2872.26 1640.47 611.5 17196.43 10129.89 300 7182.29 8143 1871.42 8164.23 176.27 22443.74 167986.85

2.37 4.34 1.71 0.98 3.64 10.24 6.03 0.18 4.28 4.85 1.11 4.86 0.10 13.36 100.00

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

THEORY ON RECRUITMENT & TRAINING
The Recruitment Process: Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy within an organization. Though individuals can undertake individual components of the recruitment process, mid- and large-size organizations generally retain professional recruiters. These are the main stages in recruitment. A) Sourcing: Sourcing involves 1) Advertising- It is a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) Recruiting Research- which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research for so-called passive prospects, also called name-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened (see below). B) Screening & Selection: Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through résumés, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy, through psychological tests or employment testing.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

In some countries, employers are legally mandated to provide equal opportunity in hiring. C) On boarding: A well-planned introduction helps new employees become fully operational quickly and is often integrated with the recruitment process.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SOURCES OF RECRUITMENT

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Training and Development
In organizational development, the related field of training and development (T & D) deals with the design and delivery of learning to improve performance, skills, or knowledge within organizations. In some organizations the term Learning and Development is used instead of Training and Development in order to emphasize the importance of learning for the individual and the organization. In other organizations, the term Human Resource Development is used. Types of Training & Development
1. 2. 3.

Coaching Continuing Professional Development or CPD E-learning aka Online Learning, Distance Learning, Web-Based Learning

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Executive education Executive development Leadership development Instructional Animation Instructional Design Instructional Strategies Knowledge Management Organizational Learning Organizational knowledge Mentoring Teaching Method Blended learning Outbound Management Development Programmes

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors
17.

Performance Management

The various forms of Training and development are explained below. 1. Coaching is a method of directing, instructing and training a person or group of people, with the aim to achieve some goal or develop specific skills. There are many ways to coach, types of coaching and methods to coaching. Direction may include motivational speaking. Training may include seminars, workshops, and supervised practice.

2. Continuing Professional Development (CPD) or Continuing Professional Education (CPE) is the means by which members of professional associations maintain, improve and broaden their knowledge and skills and develop the personal qualities required in their professional lives. CPD is defined as the holistic commitment to structured skills enhancement and personal or professional competence.

3. Electronic learning (or e-Learning or eLearning) is a type of education where the medium of instruction is computer technology.

4. No in-person interaction may take place in some instances. Elearning is used interchangeably in a wide variety of contexts. In companies, it refers to the strategies that use the company network to deliver training courses to employees. In the USA, it is defined

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

as a planned teaching/learning experience that uses a wide spectrum of technologies, mainly Internet or computer-based, to reach learners at a distance. Lately in most Universities, e-learning is used to define a specific mode to attend a course or programmes of study where the students rarely, if ever, attend face-to-face for on-campus access to educational facilities, because they study online.

5. Executive Education is the term used for programs at graduatelevel business schools that aim to give classes for Chief Executives and other top managers or entrepreneurs. These programs do not usually end in a degree, although there is an ever-growing number of an Executive MBA program that are very similar and offer a Masters of Business Administration upon completion of the coursework.

6. Executive development is the whole of activities aimed at developing the skills and competencies of those that (will) have executive positions in organizations. While "executive" and "manager" and "leader" is often used interchangeably, "executive" is commonly used to signify the top 5% to 10% of the organization. Similarly, "development" and "training" and "education" are often

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

7. used as synonyms, however "development" is generally seen as the most encompassing of the three in terms of activities that build skills and competencies.

8. Leadership development: Leadership development refers to any activity that enhances the quality of leadership within an individual or organization. These activities have ranged from MBA style programs offered at university business schools to high-ropes courses and executive retreats.

9. Instructional Animations are animations that are used either to provide instructions for immediate performance of a task or to support more permanent learning of subject matter. While both of these uses can be described as instructional animations, when the goal is to support learning, the term educational animation may be preferred.

10.Instructional Design is the practice of arranging media (communication technology) and content to help learners and teachers transfer knowledge most effectively. The process consists broadly of determining the current state of learner understanding, defining the end goal of instruction, and creating some mediabased "intervention" to assist in the transition. Ideally the process is informed by pedagogically tested theories of learning and may take place in student-only, teacher-led or community-based settings.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

The outcome of this instruction may be directly observable and scientifically measured or completely hidden and assumed.

11.Knowledge Management ('KM') comprises a range of practices used by organizations to identify, create, represent, distribute and enable adoption of what it knows, and how it knows it. It has been an established discipline since 1995 with a body of university courses and both professional and academic journals dedicated to it. Many large companies have resources dedicated to Knowledge Management, often as a part of 'Information Technology', 'Human Resource Management' or Business strategy departments.

Knowledge Management is a multi-billion dollar world-wide market.

12.Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. In Organizational development (OD), learning is a characteristic of an adaptive organization, i.e., an organization that is able to sense changes in signals from its environment (both internal and external) and adapt accordingly. OD specialists endeavor to assist their clients to learn from experience and incorporate the learning as feedback into the planning process.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

13.Organizational knowledge: What is the nature of knowledge created, traded and used in organizations? Some of this knowledge can be termed technical – knowing the meaning of technical words and phrases, being able to read and make sense of economic data and being able to act on the basis of law-like generalizations. Scientific knowledge is ‗propositional‘; it takes the form of causal generalizations – whenever A, then B. For example, whenever water reaches the temperature of 100 degrees, it boils; whenever it boils, it turns into steam; steam generates pressure when in an enclosed space; pressure drives engines. And so forth.

14.Mentorship refers to a developmental relationship between a more experienced mentor and a less experienced partner referred to as a protégé, mentoree, or (person) being mentored—a person guided and protected by a more prominent person.

15.Teaching methods are best articulated by answering the questions, "What is the purpose of education?" and "What are the best ways of achieving these purposes?". For much of prehistory, educational methods were largely informal, and consisted of children imitating or modeling their behavior on that of their elders, learning through observation and play. In this sense the children are the students, and the elder is the teacher. A teacher creates the course materials to be taught and then enforces it.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

16.Blended Learning is the combination of multiple approaches to learning. Blended learning can be accomplished through the use of 'blended' virtual and physical resources. A typical example of this would be a combination of technology-based materials and face-toface sessions used together

to deliver instruction. In the strictest sense, blended learning is when an instructor combines two methods of delivery of instruction. However, this term most often applies to the use of technology on instruction. A good example of blended learning would be to give a well-structured introductory lesson in the classroom, and then to provide follow-up materials online.

17.Outbound Management Development Programmes are a training method for enhancing organizational performance through experiential learning. These programmes generally revolve around activities designed to improve leadership, communication skills, planning, change management, delegation, teamwork, and

motivation. Participants are divided into teams and assigned tasks or activities for completion in a specified time. Achievement and performance during these activities is reviewed in group discussions to identify behaviors that enhance performance or lead to failure or decreased performance.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

18.Performance measurement is the process of assessing progress toward achieving predetermined goals. Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals.


In network performance management

(a) A set of functions that evaluate and report the behavior of telecommunications equipment and the effectiveness of the network or network element and (b) a set of various sub-functions, such as gathering statistical information, maintaining and examining historical logs, determining system performance under natural and artificial conditions, and altering system modes of operation.


In organizational development (OD), performance can be thought of as Actual Results vs Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. Performance management and improvement can be thought of as a cycle:

1. Performance planning: where goals and objectives are established 2. Performance coaching: where a manager intervenes to give feedback and adjust performance 3. Performance appraisal: where individual performance is formally documented and feedback delivered.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Brief History of the Insurance Sector in India
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives.  Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.  Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies.  The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906.
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.  The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.

The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Some of the important milestones in the life insurance business in India are:

1850: Non life insurance debuts with triton insurance company.

1870: Bombay mutual life assurance society is the first Indian owned life insurer.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and 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 Crore from the Government of India.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at ―creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…‖.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

The Insurance Regulatory and Development Authority (IRDA)
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies.

But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a

comprehensive

legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

PROFILE OF ORGANIZATION
Bharti AXA Life Insurance is a joint venture between Bharti, one of
India‘s 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, we have over 5200 employees across over 12 states in the country. Our business philosophy is built around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth management needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

The Joint Venture BHARTI and AXA
BHARTI
Bharti Enterprises is one of India‘s leading business groups with interests in telecom, agri business, insurance and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of India‘s leading private sector providers of telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel was ranked amongst the best performing companies in the world in the BusinessWeek IT 100 list 2007. Bharti Teletech is the country‘s largest manufacturer and exporter of telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd. – ‗FieldFresh Foods Pvt. Ltd‘ - for global distribution of fresh fruits and vegetables. Bharti also has a joint venture - ‗Bharti AXA Life Insurance Company Ltd.‘ - with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It also has a joint venture – ‗Bharti Wal-Mart Private Limited‘ – with Wal-Mart, for wholesale cash-and-carry and back-end supply chain management operations.

AXA Group
AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

billion in assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million. The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Bharti AXA Life Insurance
Vision To be a leader and the preferred company for financial protection and wealth management in India by 2012. Values
    

Professionalism Innovation Team Spirit Pragmatism Integrity

Strategy


To achieve a top 5 market position in India through a multidistribution, multi-product platform



To adapt AXA's best practice blueprints as a sound platform for profitable growth



To leverage Bharti's local knowledge, infrastructure and customer base

 

To deliver high levels of shareholder return To build long term value with our business partners by enhancing the proposition to their customers



To be the employer of choice to attract and retain the best talent in India



To be recognized as being close and qualified by our customers

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

GOOD PRACTICES
The guiding Human Resources principles at Bharti AXA are:
1. 2. 3. 4.

Clearly define scope of responsibilities and empower people to deliver Provide people with the means to develop their competencies Consider individual training and development a priority investment Build organizations that are conducive to teamwork and that involve everyone

5.

Promote ongoing dialogue between managers and the people who report to them

6.

Make cultural difference a key source of strength.

Strategic differentiators:


Strong partner Bharti - provides access to customer base of more than 20 million.

 

Multi channel execution capability. Current Asia product range which is a strong match to products sold to the mass and mass affluent.



Global scale providing cost effective and speedy re-use of systems, products and business capability.



Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Insurance Products of Bharti AXA
Life insurance products for individuals:  Bharti AXA Dream Life Pension A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurance‘s unique pension product ensures that your retirement life is your Dream Life.  Bharti AXA Life Aspire Life Unit Linked Endowment Product. Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing you adequate protection in case the need arises.  Bharti AXA Life Invest Confident Unit Linked Single Premium Product. You have always strived hard to achieve the best for you and your loved ones, so when it comes to making an investment decision, we know that you would expect the best from it too.  Bharti AXA Life Wealth Confident A unit-linked investment cum protection policy. Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same?

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 Bharti AXA Life Future Confident A unit-linked policy which offers comprehensive protection along with wealth creation in the long term.  Bharti AXA Life Future Confident II A unit-linked product which offers enhanced protection along with wealth creation in the long term.  Bharti AXA Life Save Confident Traditional money back insurance product for long term savings. Your changing lifestages decide your financial milestone planning. When you foresee intermittent financial requirements in the years to come, like regular expenses related to your child‘s education, liquidity becomes a key aspect of your planning along with long term savings, and protection for your family.  Bharti AXA Life Secure Confident A Long Term Life Insurance. All of us desire to maximise the happiness for our family at all times, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Life insurance products for Group Insurance:
 Bharti AXA Life Mortgage Credit Shield Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.

 Bharti AXA Life Credit Shield
Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years from Group Policy holder.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done. We can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The study of research methodology gives the student the necessary training in gathering material and arranging or car-indexing them, participation in field work when required, and also training in techniques for the collection of data appropriate to particular problem, in the use of statistics, questionnaires and controlled experimentation and in recording evidences, sorting it out and interpreting it. Knowledge of research methodology plays a key role in project work. It consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. Data Collection Method Data can be collected by Primary as well as secondary method. 1) Primary Data Sources Questionnaire methods and discussions with the HR and the employees were used to collect data. Questionnaire Designed: Questionnaire was used for the survey. 2) Secondary Data Sources The secondary data sources were collected from the company manuals, handbooks, and management books and are edited to suite the purpose. Investment in Life Insurance is not a one-time activity. It is a continuous activity. The same investor, if satisfied, will come to the fund again and again. When the investor sends his application, it is not only an application, but it also contains vital information. Most of this

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

information if tabulated and analyzed, would provide important insights into investor needs, preferences and behavior and enables us to target customers need more accurately, to achieve better penetration, deeper loyalty and reduced costs. It is in this context that direct marketing will assume increased importance. Knowing the customer thoroughly is of utmost importance. Unlike the consumer goods industry, it is not possible for Life Insurance industry to test market and have pilot projects before launch. At the same time, focusing and concentrating on a particular geographic area where the fund has a strong presence and proven marketing network, can help reduce network, can help reduce issue expenses and ultimately translate into higher returns for the investor. Very little research on investor preference is available, but the industry can collectively have a data bank, and share the information for appropriate use. This study on Life Insurances in India has been based on primary as well as secondary data sources. The primary data is collected by the getting the questionnaire filled from the common investor above the age of 25. For this research, I have made use of a questionnaire for ascertaining the investment pattern of a common investor. The questionnaire consisted of 13 questions in total, each question having various multiple choices. Depending upon the choice selected by the respondent, each respondent gets a total score which represents his degree of favorability towards the kind of investment he makes and his knowledge about the investments. The main aim of conducting the survey using a questionnaire was to

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

understand the perception of small investors, who are the most exploited in Indian capital Market, analyze the type of funds available for the investor, understand the investment pattern of a common investor, importance of marketing Strategies in Life Insurances. This was done by ascertaining the average response of all the samples for the total 13 questions asked in the questionnaire. The results for the 13 questions asked were further graphically represented, showing the favorability towards different parameters. The secondary resources used in the study are: • • • • Books Journals Magazine Articles Internet Websites.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

RESEARCH DESIGN Exploratory type of research designs adopted because sources of information are relatively few and the purpose is merely to find and to understand the possible actions. The major purposes of exploratory study are:  Identification of problem  The precise formulation of problems including the identification of variables  Formulation of alternative course of action

An exploratory research is often the first in the series of projects that culminates in one concerned with the drawing of inferences that are used as a basis of monetary action. Exploratory study is often used as a introductory phase of a larger study and results are used in developing specific technique for larger study. Of the study the relevant questionnaire was prepared and circulated among a stratified sample of 50 employees of BHARTI AXA LIFE INSURANCE Limited. This questionnaire formed the basis for the views on each of the points raised in the questionnaire. The data thus obtained formed the basis of information regarding the existing recruitment and selection processes at BHARTI AXA LIFE INSURANCE. and the same is analyzed and interference is drawn regarding the various aspects of recruitment and the entire process of selection at BHARTI AXA LIFE INSURANCE

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SAMPLE DESIGN
Sampling technique: Stratified sampling technique is adopted to conduct the research. Stratified purposive sapling is a selection method for achieving a greater degree of representatives, therefore decreasing the probable sampling error. It is based on the concept that a homogeneous population produces samples with smaller sampling errors than does a heterogeneous population. Stratified sampling is accomplished by placing all the members of the population into groups according to some characteristics that is common among them, that is homogeneous subsets of the population. Then specified number of unit is chosen from each of the groups or strata by purposive means.

Sampling Plans The sampling plan consists of sampling units, e.g. from functional departments namely Marketing, Commercial, Technical and Human Resource. These employees constitute the manpower in the company who are engaged in the day to day functioning of the company, thus it is very important for them to understand the various aspects of the entire selection process and also the importance of performance appraisal system. Therefore, they had been selected for the project sampling

Sample Size:- Sample size was taken 1100 to undertake the survey.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

The Recruitment Process flowchart:Following is the flowchart of steps followed in recruitment of Life advisors: Identifying Vacancy & advertising it  Prepare Job Description and person Specification  Short-listing on the basis of ‘Q’ scores  Conduction of interview  Filling up the compulsory IRDA form  Scheduling the training  Conduction of examination  Final selection as LA

The elaboration on all the steps given in the flow chart above is given in the following pages.

1. Identifying vacancy and advertising it: the following changes in the
scenario led to the increasing vacancy for life advisors in Bharti AXA Pune.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 Expansion of business as well as market.  Growing competition.  Change in demographics. After the identification of vacancy pamphlets containing the details were prepared and were distributed. The pamphlets used by us have been provided as Annexure 1, 2 and 3.

2. Preparing job description and person specification:
2.1 2.1.1

Career Bandwidth as a Life advisor at Bharti AXA: As a Life Advisor at Bharti AXA, there is only one way to grow. And that‘s by meeting and exceeding your targets.

2.1.2

As a good performer, you stand to get promoted from Bronze to Diamond Club and enjoy special remuneration benefits.

2.1.3

As a Life Advisor, you can get appointed as an Agency Manager within a span of just 9 months to 1 year.

2.1.4

As a Life Advisor, you also get to participate in various business related projects and committees.

2.2 2.2.1

Compensation As a Life Advisor, you have the opportunity to create attractive earnings for the first year and for the long term through payouts.

2.2.2

Higher the business you generate in the first year, higher the income you stand to earn year after year.

2.2.3

Get rewarded through Best in Class Rewards and Recognition programs including overseas conventions.

2.3 2.3.1

Support All Bharti AXA branches have HR services for support on all matters related to compensation and career so you can redress your concerns immediately.
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors 2.3.2 2.3.3

State-of-the-art Distribution Training support. Comprehensive marketing support in terms of brochures, illustrations etc.

2.3.4

Sales Management Support for on the job training and business closure.

2.3.5

Infrastructure & Technology support through dedicated Life Advisor‘s bay equipped with telephones, computers and internet at Bharti AXA premises.

2.3.6 2.3.7

Customer Service and operations support. The details about the rewards and recognition are given in Annexure 4.

3. Short Listing on the basis of Q scores:
3.1 The five Qs- The Qs are 5 different criteria where the candidates are to be analyzed. 3.1.1 Q1- The candidate should have been a resident of Lucknow for at least five years. 3.1.2 3.1.3 3.1.4 3.1.5 3.2 3.2.1 Q2- He/ She should be married. Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs. Q4- He/ She should be a graduate. Q5- Minimum age to be eligible for being a life advisor is 18. The significance of Qs A high Q score implies possibility of better performance by the candidate as a life advisor (meaning better revenue generation ability). On an average only a candidate with a score of Q4 or Q5 was interviewed. 3.2.2 A low Q score implies lesser possibility of such performance.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

4. Conduction of interview:
4.1 Pre- interview: Preparation of recruitment /selection document for Advertising. 4.1.1 4.1.2 4.1.3 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.5 4.5.1 4.5.2 Preparing advertisement Media selection Positioning Response handling Initial interview online or telephone Short-listing for interviews Interview arrangement Sending emails or calling short listed candidates Interview details to the short listed candidates During Interview HR interview Technical interview Conducting tests [Aptitude / Mathematical / Analytical etc.] Initial final list of candidates Reference check (if required) Post interview Email or Telephone call to unsuccessful candidates. Technical Manager approval for a start up date. Email or Telephone call to successful candidates. HRM prepares a letter of appointment. Selection Process Starts with the preliminary interview. Ends with contract of employment.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

4.5.3 4.5.4 4.5.5 4.5.6 4.5.7 4.5.8

Different process for different organization. Different process for different job in same organization. Selection easy for shop floor workers. Selection of managers are crucial. Affected by internal & external environment. Mutual decision making.

5. Filling up of compulsory IRDA form: A NAAF (New advisor
application form) is to be filled up by the candidate. Provided as annexure.

6. Scheduling of the training: Guidelines as per provisions of IRDA
Act for training of life advisors (effective from 31st October 2004).
6.1

The applicant shall have to undergo at least 100 hours‘ practical training in life or general insurance business which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent.

6.2

The training duration should be minimum 18 working days excluding Sundays and holidays.

6.3

No product training/market survey should be included into this hundred 100 hours training. The product training, if any, to be given by the insurance company should be over and above the minimum training hours prescribed by the Authority

6.4

The attendance record of the trainees should be maintained at the Institute for necessary inspection at any given point of time.

6.5

In case of short-fall of attendance, extra class may be permitted but the extra hours may be specified separately with proper attendance and details of faculty.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors 6.6

Every Institute should have at least one qualified permanent faculty who is an Associate or Fellow from the Insurance Institute of India for each stream i.e. for Life and Non-Life.

6.7

The attendance register of the faculty members should be maintained at the training institutes.

6.8

The record of the payment made to faculty should be maintained at the training institute i.e. batch-wise payment detail should be maintained.

6.9

The faculty should provide details of the other Institutes with whom they have been empanelled as part-time/guest faculty.

6.10

Register should be maintained at the training institute giving details of batches completed, strength of the each batch, number of candidates decertified, name of the sponsored insurer and details of faculty who imparted the training with dates.

6.11 6.12

The seating capacity of each class-room should not exceed 40. The fresh accreditation will be given on need basis after assessing the needs of the particular city/town.

6.13

The initial approval will be for a period of 3 years and consideration of further renewal up to 3 years would depend on the satisfactory compliance of requirements of accreditation.

6.14

The insurance companies would regularly send their officials to oversee the proper conduct of the training at the institutes and would not sponsor candidates to those institutes that are not maintaining the required standards of and facilities for the training.

6.15

The training institute must display the certificate of accreditation to impart training issued by the Authority at the training institute.

6.16

The Institute should not allow a franchisee to conduct courses on its behalf even if the faculty is that of the Institute. The Institute

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

should conduct the training on its own premises or hired premises with proper infrastructure.
6.17

No marketing fee/consultancy fee payment is permitted for getting the training batches.

6.18

It will be the responsibility of the Insurance Company to check the status of the institute before sponsoring any candidates for training.

6.19

In case of mofussil areas or the cities where there are no accredited institutes and an insurance company intends to appoint agents, it will be the responsibility of the insurance company to conduct training.

6.20

The Institutes must keep with them one set of records of the training at the place where the training is being imparted.

6.21

The Institute should confine its activities only to the place/city for which it has been given the approval. No training outside the said place/city is permitted.

6.22

The Institutes must submit a copy of the lease deed/rent agreement at the time of seeking fresh accreditation/renewal/change of address of the institute.

6.23

On successful completion of training the candidates get COT i.e. the Completion of Training Certificate by Bharti AXA.

7. Conduction of examination:
7.1

Syllabus: the syllabus prescribed by the authority for life insurance agents is given in annexure 6. it is indicative and not exhaustive. The self study course material developed by institute in book form only the broad basis of examination which is available for sale with the institute and its associated institutes. A candidate is expected to study the course material in depth and also assimilate general

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

information relevant to the subject. Candidate is also expected to know up-to-date developments in the insurance industry.
7.2

Pattern of examination: normally objective type multiple choice questions are asked. A candidate is required to indicate the correct alternative. A candidate is required to secure at least 50% marks to be declared successful. But the institute reserves the right to change, the pattern of question paper for the examinations without notice to anyone to test the knowledge of the candidate as it deems fit.

7.3

Mode of examination: The test can be taken up in either of the two modes- online or offline. Depending on the mode of testing the training is also arranged. For online mode the training is also done online whereas in offline mode the training is done in the class room format of. The duration of classroom training is 6+2 days. Where 6 days are reserved for compulsory IRDA training and the remaining 2 days are for product based training.

7.4

Admission card: No candidate will be allowed to appear for the examination unless he/ she produces the admission card. The admission card will be issued by Bharti AXA. Besides admission card candidate must possess COT issued by Bharti AXA.

7.5

Sample questions: a list of sample questions is given as annexure.

8. Final selection as Life Advisor: the final selection as Life advisor is
communicated to the candidate.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 1 Age of respondents: the following is the distribution of age of the respondents. Age Number of individuals <25 Years 584 25-35 Years 35-45 Years >45 Years 396 73 47

Age of respondents
Number of individuals 700 584 600 500 400 300 200 100 0 <25 years 25-35 years Age 35-45 years >45 years 73 47 396

 Less than 25 years of age individuals constitute 53% of sample size.  Whereas individuals with more than 45 years of age constitute only 4%.

Interpretation: sample which has been surveyed is dominated by younger individuals.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 2
Sex of respondents

Sex of Respondent
male female

female, 286, 26%

male, 814, 74%

Interpretation: Sample is dominated by males which constitute 74% of total size.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 3

Occupation of Respondents

Occupation

Student

Pvt. Employee

Govt. Employee 87

Proprietor

Others

Number

436

395

135

47

others, 47 proprietor, 135

govt. employee, 87

pvt. Employee, 395

govt. employee pvt. Employee
student, 436

student proprietor others

Interpretation: Sample is dominated by students and Private Employees (76%).

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 4 Number of Years spent in Lucknow.

Number of years spent in Lucknow

4-5 years number of years 2-3 years

243

231

1-2 years

158

less than 1 year 0 50 100 150 200 250 300 350 400 450

468 500

number of individuals

Interpretation: Most of the individuals (less than 1 yr) have come to

Lucknow to study or work. The individuals with 4-5 years spent in Lucknow or more are basically localites.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 5
Marital status:

Marital status

368, 33%
married unmarried

732, 67%

Interpretation: two thirds of the sample size is Unmarried people.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 6
Question: Do you stay in a joint family in Lucknow? Yes – 387

No- 713

Interpretation: Almost 65% of Individuals are staying either alone or in a nuclear family. They are basically students or individuals who have come to Lucknow for job opportunities.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 7

Question: If you are married, do you have any children? How many?

Number of children Number of individuals

1 child

2 children

3 children

4 children

97

72

15

1

Number of children if married.
120

Number of individuals

100 80 60 40 20 0

97 72

15 1 1 child 2 children 3 children 4 children

Interpretation: Only 185 respondents have children, of which 50% have only one child.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 8

Question: What is your biggest concern for future?

Biggest concern for future

medical illness, 347, 32%

child education, 433, 39%

child's marriage, 103, 9%

child education retirement, 217, 20% retirement child's marriage medical illness

Interpretation: medical illness (32%) & child education (39%) are major concern for future.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 9

Question: Have you made provision for future liabilities?

Yes: 304

No: 796

Have you made provision for future Liabilities.

yes, 304, 28%

no, 796, 72%

Interpretation: 72% of the individuals have made no provision for the future liabilities.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Analysis 10

Question: Given a chance would you like to make extra money?

Yes: 833

No: 267

Given a chance would you like to make extra money?

no, 267, 24%

yes, 833, 76%

Interpretation: 76% of the individuals would like to make extra money. Such individuals are identified and then they are motivated become Life advisors for an extra source of income.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

FINDING
The findings are based on the survey undertaken and interview of individuals for the procurement of life advisors.

Finally selected Life advisors

8
Individuals selected for IRDA training 17

Among the Individuals with scores > than Q3, those interviewed - 30

Among the individuals who were willing to make extra money, those with Q score greater than 3-

242
Among the individuals surveyed, the individuals who were willing to make extra money- 833

Total number of Individuals surveyed -1100

The major findings are: 1. The Individuals finally selected as Life advisors constitute 0.72% of Sample size. 2. 47.05% of the Individuals who underwent the training cleared the exam. 3. 3.30% of the individuals who wanted to make extra money could finally be selected for the Job.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SUGGESTIONS
 The fee charged from candidates as application money should be waved off. It should rather be paid by the Insurance Company.  The strict training schedule should be made flexible. For a person who is Q4 or Q5 on score it is difficult for him/ her to be able to come for training especially in case when he/ she is already working.  The incentive system should be more attractive to motivate more and more people for becoming Life Advisors.  More and more promotional activities should be held for enhanced brand building which will facilitate revenue generation and increased satisfaction leading to customer retention in the long run.  There is need to have in place a properly managed performance appraisal system even for life advisors that would contribute to effective retention of personnel.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

SOLUTIONS
The usual procedure to go about the project is to conduct the Group Field Activity (GFA). In that, the trainees are sent to the market to gather data and leads. They have only the survey questionnaire with them. We conducted this for the first 2 weeks. But the results were not up to the mark. The main reasons have been cited in the limitations. To counter the hurdles faced, we came up with the following solutions: 1. Promotion: While interacting with the prospects, we had to convey the idea orally. The retention time is very little as the respondents are in some hurry. Besides, the GFA, is something such as a brochure could be handed out to the prospects, it would stay on their minds. The Brochure would contain all the major details such as the benefits, the compensation, the work flexibility and the requirements of being an Life Advisor. Thus we designed a brochure/pamphlet on the same lines. But being trainees, the expenses had to be borne by us. So we decided to print the brochure as flyers on cheap recycled paper. We decided to distribute these flyers while taking survey. Along with distributing the flyers, we decided to put the flyers

along with our contact information in the newspapers of the area. For this, we contacted the local newspaper vendor. This gave us higher number of leads as we were approaching the right target prospect.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

2.

Event: To generate more leads, we required to attract more people. This

could be done by a small event at some school or a social place like a mall or a shop. We decided to approach a nearby primary school and offered to hold a drawing competition for the students. The holiday season was nearing and this would mean that more students would participate. The parents would come to the event as well and hence we could generate leads. 3. Initial Screening Forms: These are the forms which calculate the Q scores of the probable prospects. So we decided to take the Initial screening form (ISF) questionnaire and get it filled by the prospects in the first interaction itself so that we could shortlist candidates for the second process. This saved time considerably as we did not have to go into details to screen out the candidates. Now we could calculate the Q score directly. 4. Secondary Database: We approached our respective guides to provide us with the database of the current and past customers of the nearby areas. That way, we could hold a telephonic conversation and hence generate leads.

Along with the GFA, the aforesaid actions helped us gather more leads for the Business Opportunity Presentation.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

RESULT
 After undertaking the entire process of questionnaire survey, individuals were analyzed on the basis of their Q scores.  Those individuals whose Q score was greater than 3 were considered better prospects to be Life advisors.  30 individuals were Interviewed.  17 individuals were selected for IRDA training. 8 individuals successfully completed the training and passed the Exam and were Finally selected as Life advisors at Bharti AXA Life Insurance, Gomti Nagar, Lucknow.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

LIMITATIONS OF THE PROJECT
Following are some reasons that demotivate and demoralize people from becoming Life advisors. I came across the following obstacles that arose in the process of recruitment: Lack of awareness among the people – This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them. Perception of the people towards Insurance sector – People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business. Insurance does not give good returns – Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they take Insurance they will get only 5-6% returns which is not true nowadays. Lack of awareness about the earning opportunity in the Insurance sector – People still today are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that. Increased competition – Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India including the LIC (life insurance Corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very-very difficult.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

CONOLUSION

For the purpose of this report, it was found that the questionnaire and interview questions, employee manual were sufficient to obtain the information required to analyze the process of requirement and selection within the organization. It has been found that the organization has a sound understanding of what process need to be used in order to achieve effective recruitment and selection of Life advisors. In addition to this, there are several recommendations for the organization. For any firm to be successful the main objectives should be:  Sustainable long-term growth,  Stable income and  Asset preservation;  Need to emphasize quality and diversification in both equity and fixed income asset classes.  Focus should be on long-term consistent investment performance.  Emphasis towards training and enhancing skills of recruits needs to be more.  Invest more in current staff than in Recruitment:  Conduct internal audit.  Be Creative  Understand and manage salary: The general perception of life insurance has to change in India before progress is made in this field.

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

BIBLIOGRAPHY
 www.irdaindia.org


www.bharti-axalife.com

 NAAF

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Annexure 1
PERSONAL DETAIL FORM

DATE: NAME: CONTACT NUMBER: FATHER‘S NAME: AGE: OCCUPATION: ADDRESS:

D.O.B:

FAMILY HISTORY: NAME FATHER: MOTHER: BROTHER: SISTER: AGE OCCUPATION

E-MAIL:

QUESTIONNAIRE_-1
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

1. Name: 2. Age: 3. Sex: 4. Occupation:  Government Employee  Private Employee  Student  Proprietor  Others 5. Number of Years spent in Pune:  Less than 1 year  1-2 Years  2-3 Years  4-5 Years

Male

Female

6. Marital Status: Married Unmarried 7. Do you live in joint family? Yes 8. If married do you have children, how many?  1 child  2 children  3 children  4 children 9. Which is your biggest concern for future?  Child education  Retirement  Child’s marriage  Medical illness 10. Have you made provision for future liabilities?  Yes  No 11. Given a chance would you like to make extra money?  Yes  No

No

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

QUESTIONNAIRE - 2

Q-1 What is the nature: business /service?

a) Business

b) Service

Q-2 What are the avenues you prefer for investment /parking?

a) Post office c) others e) Mutual Fund

b) Direct Equity d) Banks

Q-3 What is the duration of your investment?

a) > Than 2 yrs

b) 2-5 yrs

c) 5-10 yrs

d) 10 yrs above

Q-4 What are the returns you expect from your investment?

a) Average

b) Higher

c) Lower

Q-5 Where do you park your money for short-term basis?

a) Post office c) Companies F/D

b) Direct Equity d) Banks
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Q-6 What are the criteria for your investment?

a) Liquidity saving

b) Safety

c) Returns

d) Tax

Q-7 If we suggest the scheme which fulfills, all the above criteria will you be

a) Interested

b) Not- interested

Q-8 Are you aware of Bharti-AXA Life Insurance , mutual fund, A Societe Generale Asset Management Company?

a) Yes

b) No

Q-9 Have you ever invested in mutual fund? If yes, have you invested in Bharti-AXA Life Insurance mutual fund?

a) Yes

b) No

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Q-10 Which among the statements below would describe your investments? a) Earning Low Returns as long as principal is safe. b) Earning high returns than Bank rates with some risk. c) Earning high returns with high risk.

Q-11 What was your experience regarding your investment?

a) Good Experience Negative

b) Some Faith

c)

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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

Annexure -2
Broad syllabus for pre- recruitment exam for life insurance agent:

1. Introduction to insurance:  What is insurance  Purpose and need of insurance  Classification of risk  The human asset  Insurance as a social security tool  Role of insurance in economic development

2. Principles of life assurance:  life insurance contracts  principle of utmost good faith  insurable interest  principle of indemnity  different risks

3. Premium and bonus  what is premium?  Premium calculation  Life fund  Actuarial valuation
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 Bonus

4. Life insurance products  basic elements  some popular plans  variable insurance plans  salary saving schemes  riders  annuities  group insurance

5. Underwriting  introduction  classification of risk  financial underwriting  assessing risk  adverse selection  non medical underwriting  recent rends

6. Insurance documents  proposal form and personal statements  first/ renewal payment receipt  policy document  endorsement
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 prospectus 7. Policy conditions  age, days of grace  lapse and non- forfeiture  paid up value  revival  assignment, nomination  surrenders and loan  foreclosure  alterations  married women‘s property act policy

8. Claims  maturity claims  survival benefit payments  death claims  accident and disability benefits  claims concessions.

9. Unit linked life insurance products  what is linked policy  option of funds  net asset value (NAV)  flexibility  lock in  charges
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Project Report on Sales Promotion, Recruitment, Training and Development of Life Advisors

 ULIP and traditional insurance  Annuities and pensions

10.Insurance agency  definition of an agent  agents‘ regulation  procedure for becoming an agent  methods of remunerating agents  agency as a profession  functions of agents  responsibilities of an agent  pre requisites for success  ethical behavior

11.Law and regulations  insurance act 1938  LIC act 1956  IRDA act 1999  Consumer protection act 1986 (COPA)  Ombudsman  Income tax act  MWP act  Rural and social sector  Micro insurance

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