Megha Life Insurance Basics

ING VYSYA LIFE INSURANCE CO.LTD

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ACKNOWLEDGEMENT
It is my proud privilege to release the feelings of my gratitude to several persons who helped me directly or indirectly to conduct this project work. I express my heart full ineptness and owe a deep sense of gratitude to my guide Mr. SISIR SAHU, BRANCH MANAGER, Kharavel nagar branch, for his sincere guidance and inspiration in completing this project.

I am also extremely thankful to Mr.Satyajeet Nath, Training and placement officer of ASMIT,Under Utkal University, Bhubaneswar for spending his precious time for giving sufficient guidance whenever needed and I also thank to all those persons who have positively helped me and customers who responded my questionnaire, around whom the whole project cycle revolves.

I also thank all my friends who have more or less contributed to the preparation of this project report. I will be always indebted to them.

Thanking You
Miss Saubhagyalaxmi Mohanty

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DECLARATION

I do hereby declare that the dissertation entitled ―STRATEGIC METHOD OF ING VYSYA LIFE INSURANCE.‖ under guidance of Mr. Sisir Sahu. being submitted by me is a record of my research work. The report embodies the finding based on my study and observation and has been published or Submitted anywhere else.

Miss Saubhagyalaxmi Mohanty

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CONTENTS
CHAPTER-1 Introduction Company profile Objective of the study

CHAPTER-2

Types of Insurance Importance of having Life Insurance

CHAPTER-3

Procedure of Recruitment of advisors

CHAPTER-4

Data Interpretation

CHAPTER-5

Questionnaire

CHAPTER-6

Conclusion Bibliography

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CHAPTER- 1

 Introduction  Company profile  Objective of the study

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CHAPTER 1

INTRODUCTION
 BEGINNINGS OF INSURANCE.  WHAT IS INSURANCE?  DO WE REALLY NEED IT?  HOW TO CALCULATE THE AMOUNT OF INSURANCE NEEDED?  INSURANCE VS ASSURANCE?.........etc.

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THE BEGINNINGS OF LIFE INSURANCE
Life insurance can be traced back to the sixteenth century when short-term assurances were usually effected as collateral security for loans. Indeed, the first life assurers were marine insurance underwriters, policies often being written on the life of a merchant sailing with his goods. The first recorded life policy was in 1583, which was subject to a dispute over payment. The policy was granted by 16 individual underwriters of England on June 18, 1583, for 12 months on the life of one William Gibbons. Life insurance is one of the most popular forms of insurance and has acquired a top position all over the world. Like other branches of insurance, it is a device for distributing equally the heavy financial losses on the happening of a specified event over a group of such persons as are exposed to the same risk and agree to share among themselves such losses. The event may be the death of an individual , who may be the bread-winner of the family or it may be his outliving his financial usefulness or an earning age to provide for his needs. The first category where he may die too soon is physical death while the second category where he may live too long is economic death. A man who is forced to retire from his job at 55 or 60 or becomes too ill to work at early ages is financially dead, unless he has alternative source of income. Thus life insurance protects against financial losses resulting from premature death of the insured or guarantees the payment of a certain sum of money on his attaining a certain age. When an insured person dies, the proceeds of the policy are paid to his representative or beneficiary designated in the policy. If however, he attains a certain age and the payments become due during his life time, the amount of the policy will be paid to him.Since every person faces these basics contingencies concerning life and is exposed to the same risk. In its modern form, life insurance provides protection against the risk of early death and is at the same time a good form of investment. It enables a man to overlap the barrier of death and to overcome the grim fear that his loved ones may some day become dependants upon the charity of others but can live honourably after the death of the insured.. In addition to its primary mission of family protection against immature deaths, provision for old age, creating funds for investments, and promoting thrift. It has many business uses. The businessman can protect against the loss arising from premature death of the important members of the staff, like business partners, directors, engineers, promoters, and other key employees and can create a sense of belonging with the employing organization. Also, insurance policies can be used as collateral security for securing loans or for the repayment of debts. Besides it enables an
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individual to use capital accumulations in ventures involving high degree of risks by guaranteeing replacement of capital to dependants in case of death. The holders of life insurance policies enjoy various tax advantages as well. This incentive is of great social and economic values. Besides Life insurance companies contribute to conservation of health. It is also an important factor in the prevention of family integration and has wide social significance.

WHAT IS LIFE INSURANCE???
Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or "carrier" that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax — "cash benefits" — to the person or persons you name as beneficiaries. A good life insurance program does more than just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death — funeral expenses, taxes, probate costs, the need for housekeepers and child care, and so on. And these cash benefits should provide for your family's future needs as well, including college education for your children and part or all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction. Some types of life insurance — PERMANENT LIFE INSURANCE policies — have a cash value that you can obtain by cashing out the policy or by borrowing against it. Though it can seem attractive, most financial experts agree that this feature should be seen as a secondary purpose of life insurance. Another type of insurance is TERM LIFE INSURANCE policies are available as well. To learn more click the respected link.

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DO YOU REALLY NEED LIFE INSURANCE??
If there is someone who would suffer economic hardship if you died, then the answer is yes... you need life insurance! Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children's' education. But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household - and that can be a significant new expense. If you are married without children or single, then you may need life insurance to protect your partner or surviving family members against the costs associated with your death. Funeral expenses, probate and administrative fees, outstanding debts, special obligations to charities, and federal and state taxes are costs that all of us must consider. And, they can add up quickly. Unless you already have sufficient financial resources, your survivors will probably need life insurance to cover these expenses.

HOW TO CALCULATE THE AMOUNT OF INSURANCE WE NEED??

HUMAN LIFE VALUE
Human Life Value" is that amount which ensures that the standard of living of a family is not affected even if the earning member is not there or not able to earn. Our families are accustomed to a certain standard of living. What we often fail to realize is that this standard of living is entirely dependant on the earning member of the family. If the earning member is unable to provide for the family, it is hardly possible to maintain the same quality of life.

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1. IS IT IMPORATANT TO KNOW YOUR ‘HUMAN LIFE VALUE’?
Our families are accustomed to a certain standard of living. What we often fail to realize is that this standard of living is entirely dependent on the earning member of the family. If the earning member is unable to provide for the family, it is hardly possible to maintain the same quality of life

2..

STEP TO CALCULATE ‘HUMAN LIFE VALUE’

AGE
Up to 25 years 26 to 35 years 36 to 45 years 46 to 60 years Above 61 years

HLV(multiple of gross annual income/salary)
20 times 15 times 12 times 10 times On merits

INFORMATIONS REQUIRED
What is the family's Monthly Household Expenditure? What is the family's Annual Lifestyle Expenditure? What percent of the monthly household expense is on you? What percent of the annual lifestyle expense is on you? What Inflation do you expect on household expenses? What return do you expect on risk free securities? How many financial dependents do you have? Select Dependent Type What is the Dependent's Current Age? How many more years will they be dependent on you? What is the percentage of monthly household expense spent on the dependent? What is the percentage of annual lifestyle expense spent on the dependent? What specific Goals does the dependent have? (If any) Specify Goal Here (graduation / post graduation/ marriage / other) Specify Goal Here (graduation / post graduation/ marriage / other) Specify Goal Here (graduation / post graduation/ marriage / other) Rs. Rs. Years Years % per Month % per Year % Per Month Per Year % per Month % per Year %

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Total Monthly Expense on Dependent Financial Value of your Life to your Dependent Outstanding Loans Other Liabilities Rs. Rs. Rs. Rs

Rs. 0 Rs. 0 Rs.

Contingency Funds that will be required by the family Current Life Insurance that the client already has

. Assets that the family will be able to financially use in case of clients demise TOTAL INSURANCE REQUIREMENT 0 Rs.

Rs.

INSURANCE VS ASSURANCE
The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in jurisdictions where both terms are used, "insurance" refers to providing coverage for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of coverage for an event that is certain to happen. In the United States both forms of coverage are called "insurance" for reasons of simplicity in companies selling both products. As per some theories, the term "insurance" is used where the financial losses are assessed after happening of the event and the amount to be paid is decided. Whereas in "assurance" the amount is predefined irrespective of the losses occurred.

TWO BASIC CLASSIFICATIONS OF LIFE INSURANCE……
 Temporary Life Insurance  Permanent Life Insurance Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.

There are three key factors to be considered in term insurance: 1. Face amount (protection or death benefit), 2. Premium to be paid (cost to the insured), and
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3. Length of coverage (term). Permanent life insurance is life insurance that remains active until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except fraudulent application, and any such cancellation must occur within a period of time (usually two years) defined by law. A permanent insurance policy accumulates a cash value, reducing the risk to which the insurance company is exposed, and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70-year-old.

THIRTEEN COMPANIES AS LIFE INSURERS, REGISTERED BY IRDA:
             HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd Max New York Life Insurance Co. Ltd Om Kotak Mahindra Life Insurance Co. Ltd Birla Sun Life Insurance Co. Ltd Tata AIG Life Insurance Co. Ltd SBI Life Insurance Co. Ltd ING Vysya Life Insurance Co. Ltd Allianz Bajaj Life Insurance Co. Ltd Metlife India Life Insurance Co. Ltd AMP Sanmar Life Insurance Co. Ltd Dabur CGU Life Insurance Co. Ltd Aviva Life Insurance Co. Pvt. Ltd

These thirteen insurers are limited companies, registered under the companies Act, unlike the LIC, which is a corporation set up under the LIC Act of 1956 by the Central Government. Each of these organizations will have different organizational structures. Not only the number of offices and their locations, but the designations and responsibilities vested at various positions would be different.

IMPORTANT COMPANY:

ACTIVITIES

OF

A

LIFE

INSURANCE

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 Procuring applications or proposals from prospective buyers of life insurance.  Scrutinising and making decisions on the proposals for insurance. This is called underwriting.  Issuing the policy document, incorporating the terms and conditions of the insurance cover.  Keeping track of the performance of the insurance contract by either party, like payment of premium or payment of benefits.  Other supporting activities like advertising, investment of funds, maintenance of accounts, management of personnel, processing of data, compliance with regulations and laws.

LIFE INSURANCE---A FAST GROWING SECTOR
Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance regulatory and development authority act of 2000. The same year the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA —started issuing licenses to private life insurers.

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COMPANY PROFILE

ING VYSYA LIFE INSURANCE CO. LTD.

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Company profile
At ING Life, our mission is-- ‘To set the standard in helping our customers manage their financial future.’

ING Vysya Life Insurance Company Limited (ING Life Insurance India) is a life insurance company head quartered in Bangalore. ING Vysya Life Insurance recently achieved the significant milestone of completing 10 years of operations in India. The company is a joint venture between Exide Industries and ING Insurance International B.V. ING Life Insurance India is currently present in over 200 cities and serves over 1 million policy holders in India. The company distributes its products through two channels, Tied Agency and Alternate Channel. The Tied Agency Channel comprises over 30,000 ING Life Insurance Advisors, spread across the country. The Alternate Channel is a fast growing distribution channel, and includes Bancassurance partner (ING Vysya Bank), Cooperative Banks, Corporate Agents and Brokers. ING Vysya Life Insurance Company Limited is an established life insurance company with over a decade of experience serving over I million customers in over 200 cities in India. Headquartered in Bangalore, ING Vysya Life Insurance Company Limited is 100% owned by Exide Industries Limited.

The company distributes its products through key channels like Tied Agency, Banc assurance and Alliances. The Tied Agency channel comprises over 30,000 ING Vysya Life Insurance Advisors, spread across the country. The Banc assurance and Alliances business within ING Vysya Life Insurance is a fast growing distribution channel, and includes the Banc assurance partner (ING Vysya Bank), Referral Partners, Corporate Agents and Brokers.

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ING LIFE‘S business is driven on our values of Optimism, Knowledgeable, Trustworthy and Transparent. Optimism: We bear an approach of ‗Optimism‘ towards our company, towards each other, in our products and in our care for our customer‘s interests.

Knowledgeable: We cultivate the knowledgeable value through our way of working, sharing and actively communicating.

robust

Trustworthy: We deliver trustworthiness by doing the ‗right things in right way‘, by delivering an ‗easier‘ customer experience and by being a socially responsible corporate.

Transparent: Our value of ‗transparent‘ drives our actions, reflects in our products and services. Their values are personified by our people through a set of ‗Personality aspects‘. These personality aspects are: Positive, Professional, Accountable and Transparent. Positive: ING Life India employees live its value of optimism by bearing a positive and can-do attitude to their work. Professional: At ING Life India, we expect the highest standard of professional behavior by providing professional advice to customers, by treating customers equitably, abide by company‘s culture and act with compliance. Accountable: ING Life India expects employees to be accountable for their actions, words and decisions such that it builds their personal integrity and fosters ING Life India‘s value of trustworthiness. Straightforward: ING Life India expects employees to be straightforward in their conduct and work while dealing with customers and colleagues
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The Brand Essence of ING Life is, ‗Experience the joy of fulfilling your responsibility‘. This essence is captured in the unique brand positioning ‘Mera Farz’, developed in 2007. This positioning means, ING Life helps its customers fulfill their responsibilities as provider towards themselves and their families. ING Life provides its customers with the strength, reliability and the right balance between long-term savings, security & reasonable returns. ING Life follows a "customer centric approach" while designing its products. The Company's product portfolio offers products that cater to every financial requirement, at all life stages. ING Life has developed an exclusive tool - the LifeMakerTM a simple tool which helps our customers choose a plan most suitable to them, based on their needs, requirements and current life stage. This tool helps build a complete financial plan for life at every lifestage, whether the requirement is Protection, Savings, Retirement or Investment.

MANAGEMENT BOARD OF DIRECTORS (as on March 21, 2013)
Mr. Rajan Raheja : Chairman Mr. A. K. Mukherjee : Director Mr. Kshitij Jain : Managing Director & CEO Mr. N. N. Joshi : Director Mr. Rajesh Kapadia : Director Mr. Satish Raheja : Director

EXECUTIVE TEAM(as on March 21, 2013)

Mr. Kshitij Jain: Managing Director & CEO Mr. Rahul Agarwal: Chief Distribution Officer Mr. B. Ashwin: Chief Operating Officer Mr. Uco Vegter: Chief Financial Officer

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OBJECTIVE OF THE STUDY

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Objectives of the study
1… To search for the growth opportunities available by studying the overall methods followed by the ING life insurance. -This study mainly deals with the various methods followed by ING Vysya Life Insurance Company. 2… To study inclination of various customers towards eventualities and the benefits received by the policy holders. -benefits like death benefit, maturity benefit, mutual fund benefit, investment growth benefit. 3…To study the various policies available to cater the needs of different kinds of customers by the ING life insurance. -the various plans like safal jeevan plan, high life plan, child protection plan etc., 4... To study also the different strategies methods followed by the life insurance company.

Indian life Insurance Industry Overview
All life insurance companies in India have to comply with the strict regulations laid out by Insurance Regulatory and Development Authority of India (IRDA). Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far the largest player in the market. The private companies have come out with products called ULIPs (Unit Linked Investment Plans) which offer both life cover as well as scope for savings or investment options as the customer desires. These type of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act. Comparison of such products with mutual funds would be erroneous.

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CHAPTER-2
 TYPES OF LIFE INSURANCE  IMPORTANCE OF HAVING LIFE INSURANCE

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TYPES OF INSURANCE

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1. Marine Insurance:
The marine insurance is the oldest form of insurance. Under Bottom bond, the system of credit and the law of interest were well-developed and were based on a clear appreciation of the hazard involved and the means of safeguarding against it. If the ship was lost, the loan and interest were forfeited. The contract of insurance was made a part of the contract of carriage, and Manu shows that Indians had even anticipated the doctrine of average and contribution. Freight was fixed according to season and was expected to be reasonable in the case of marine transport which was then very much at the mercy of winds and elements. Travellers by sea and land were very much exposed to the risk of losing their vessels and merchandise because the piracy on the open seas and highway robbery of caravans were very common. Besides there were several risks, Many times, it might have been captured by the king's enemies or robbed by pirates or got sunk in the deep waters. The risk to owners of such ships were enormous and, therefore, to safeguard them the marine traders devised a method of spreading over them the financial loss which could not be conveniently borne by the unfortunate individual victims. The co-operative device was quite voluntary in the beginning, but now in modern it has been converted into modified shape of premium. The marine policies of the present forms were sold in the beginning of fourteenth century by the Brogans. On the demand of the inhabitants of Burges, the Court of Flanders permitted in the year 1310, the establishment in this Town of a charter of Assurance, by means of which the merchants could insure their goods, exposed to the risks of the sea. The insurance development was not confined to the Lombard's and to the Hansa merchants; it spread throughout Spain, Portugal, France, Holland and England. The marine form land lending prominence of Lombard's merchants got a prominent section of the London City. They built homes there and took the name of Lombard Street. Later on, this street became famous in insurance history. The Lloyd's coffee-house gave an impetus to develop the marine insurance.

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2. Fire Insurance:
After marine insurance, fire insurance developed in present form. It had been observed in Anglo- Section Guild form for the first time where the victims of fire hazards were given personal assistance by providing necessaries of life. It had been originated in Germany in the beginning of sixteenth century. The fire insurance got momentum in England after the great fire in 1666 when the fire losses were tremendous. About 85 per cent of the houses were burnt to ashes and property worth of sterling ten crores were completely burnt off. Fire Insurance Office was established in 1681 in England. With colonial development of England, the fire insurance spread all over the world in present form 'Sun Fire Office was successful fire insurance institution. In India, the general insurer started working since 1850 with the establishment of the Triton Insurance, Calcutta. Again in 1861, the North British and Mercantile catered the requirements of insurance business. The general insurance in India could not progress much. The slow growth of joint-stock enterprise and mechanised production was another reason for the low level of general insurance business.

3. Life Insurance:
Life insurance made its first appearance in England in sixteenth century, the first recorded evidence in England being the policy on life of William Gibbons on June 18, 1653. Even before this date annuities had become quite common in England, and marine insurance had, in fact, made its appearance three thousand years ago. The life insurance developed at Exchange Alley. The first registered life office in England was the Hand-in-Hand Society established in 1696. The famous Amicable Society for a Perpetual Assurance Office started its operation since 1706. Life insurance did not prosper in the United States during the 18th century, because of serious fluctuations in death-rate, but soon after 1800 some active interest began to be shown in this enterprise because of the application of level premium plan which had by then been in operation in U.K. for more than a generation.
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In India, some Europeans started the first life insurance company in Bengal Presidency, viz., the Orient Life Assurance Company in 1818. The year 1870 was a year of a landmark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian Life Office, viz., Bombay Mutual Life Assurance Society in 1871. The next important life office was Oriental Government Security Life Assurance Co., Ltd., which started its operation since 1874. Since then several offices developed in India.

4. Miscellaneous Insurance:
The miscellaneous insurance took the present shape at the later part of nineteenth century with the industrial revolution in England. Accident insurance, fidelity insurance, liability insurance and theft insurance were the important form of insurance at that time. Lloyds's Association was the main functioning institution. Now, insurances such as cattle insurance, crop insurance, profit insurance, etc., and are taking place. The scope of general insurance is increasing with the advancement of the society.

5. Health

Insurance:

Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. According to the Health Insurance Association of America, health insurance is defined as "coverage that provides for the payments of benefits as a result of sickness or injury. Includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment"

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Health plan vs. Health insurance
Historically, HMOs tended to use the term "health plan", while commercial insurance companies used the term "health insurance". A health plan can also refer to a subscription-based medical care arrangement offered through HMOs, preferred provider organization, or point of service plan . These plans are similar to pre-paid dental, pre-paid legal, and pre-paid vision plans. Pre-paid health plans typically pay for a fixed number of services (for instance, $300 in preventive care, a certain number of days of hospice care or care in a skilled nursing facility, a fixed number of home health visits, a fixed number of spinal manipulation charges, etc.). The services offered are usually at the discretion of a utilization review nurse who is often contracted through the managed care entity providing the subscription health plan. This determination may be made either prior to or after hospital admission 6. VEHICLE INSURANCE: Vehicle insurance (also known as auto insurance, GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions. Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle. Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy.
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DIFFERENT TYPES OF AUTO INSURANCE IN INDIA :
Private Car Insurance – In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture. Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period. Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle.

WHAT IT INCLUDES…

WHAT IT DOES NOT INCLUDE…

Loss or damage by accident, fire, lightning, Consequential loss, depreciation, mechanical self ignition, external explosion and electrical breakdown, failure or breakage

Liability for third party injury/death, third party property and liability to paid driver.

When vehicle is used outside the geographical area OR War or nuclear perils and drunken driving

On payment of appropriate additional premium, loss/damage to electrical/electronic accessories.

Auto repair insurance is an extension of car insurance available in all 50 of the United States that covers the natural wear and tear on a vehicle

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Life Insurance Shopping Tips:
 Your life insurance plan should be structured to meet your life circumstances. For example, a single person may need less life insurance than a couple or a couple with children.  Life insurance is complicated. Utilize the services of trained insurance professionals. Check with the  Ohio Department of Insurance to ensure your agent and company are licensed to do business in the state.  An agent is not allowed to be the beneficiary of a life insurance policy the agent has sold you, unless the agent is a family member or a funeral director.  An agent is not allowed to misrepresent any aspectof either the policy being sold or a policy you already own. An agent is not allowed to encourage you to put incorrect information on your application.  Decide what type of policy you want: term life, whole life, universal life or a combination of these policy types. Be sure to calculate your total premiums for the life of the policy. It is possible to pay more in premiums than the face amount of the policy.  Some policies have an accelerated benefits feature. This provision lets the policyholder, under certain conditions, to receive part of the death benefit before he/she dies.  Be alert to any promise that you will, at some future point, never have to pay premiums again. Also make sure you‘re aware of any surrender fee you would owe in the event you cancel the contract.  Don‘t sign any life insurance application that has not been completely and accurately filled in and dated. Make a copy of the completed application for your files.  Make your premium payment check to the insurance company, not the agent.  Immediately study the policy once you receive it and make sure it‘s exactly what you ordered. Take advantage of the ―free-look‖ (or ―right to review‖) period most life companies offer. During this period you can return the policy for a full refund.  The policy owner is the only person who can cancel the policy. If premium payments are not being made the insurer will generally send a payment notice before cancellation.  A failure to pay your premium will cause your policy to lapse or be terminated.  Review your policy periodically. Your insurance needs change during different periods of your life.
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Do You Have the Right Life Insurance?
 Having adequate life insurance should be an important part of your financial planning. The type(s) you choose will depend on your needs and goals.  Life insurance was established to provide funds at death to cover funeral and burial costs, pay final expenses and debts, provide an income for dependents (especially those with dependent children or a spouse), and leave a legacy for children and grandchildren. In addition, it provides a means for tax-efficient savings.  Before we can explore the benefits of life insurance in more detail, it is necessary to first understand the main types of policies and how they work.  There are primarily two kinds of life insurance and you could have them for different reasons. You may find that a combination of the two is the best solution for your situation.

TERM LIFE INSURANCE
Term insurance provides coverage for a set term which can either be based on a number of years, such as one, five, ten or twenty years, or based on your age when the contract expires, such as when you turn 60. The premium you pay stays the same for the duration of the contract. The sum insured is only payable if you die while the contract is in force. If you survive to the end of the period, the policy is then worthless. At the end of the selected term, you can renew the contract for the same term without having to prove that you are still insurable. It gets more expensive as you get older. The premium will increase and will be calculated based on your age at the time of renewal. This increase can become expensive in later years. You may find the cost unaffordable as you get older. Also, some term policies are not renewable after a certain age. Because you are buying a short term insurance policy, the cost is lower than permanent life insurance. It is something to consider if you want to protect your spouse and children at a low cost should something happen to you. You may also consider purchasing it as an alternative to mortgage insurance. When you purchase mortgage insurance, the benefit decreases over time as your mortgage gets paid off. With term life insurance, the benefit remains the same until the term expires.

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PERMANENT LIFE INSURANCE
Permanent life insurance provides protection for your life, not just for a specific term. If your mortgage is paid off and your kids have grown up, you may wonder why you need permanent life insurance since you have no dependents. You may want to consider it because, in addition to paying a death benefit to your beneficiary, there is also a cash value: 1. The cash values inside of your policy can be accessed to supplement your retirement income through a policy loan, partial surrender or loan strategy, if needed. 2. Any money invested inside a permanent life insurance policy grows on a taxdeferred basis, within certain regulatory limits. This is especially attractive if you have maximized both your RRSP and Tax-Free Savings Account (TFSA) contributions. 3. The cash values can be used to pay your estate taxes when you die so your beneficiaries won‘t have to pay the taxes on their inheritance. Keep in mind that life insurance proceeds in provinces other than Quebec avoid probate and estate taxes if they are made payable to a named beneficiary and not to your estate.

There are two kinds of permanent life insurance: 1. Whole life insurance policies have level and fixed premiums, usually payable for your entire lifetime, which can‘t be increased or decreased. The premium payments in the early years exceed the amount required so you basically are overpaying in the early years to subsidise your later years. You have no investment decisions to make as you are provided with guaranteed cash values. There are two kinds of whole life insurance policies: a. Participating policies – you participate in the insurance company‘s profits and the plan pays out a dividend which can provide an increasing cash value and death benefit b. Non-participating policies – these policies are lower in cost and don‘t pay out a dividend.

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2. Universal life insurance policies offer flexible premiums, a choice of level or increasing death benefits, and the ability to take premium holidays if you want to stop paying your premiums in the later years. When a premium is paid, the money is deposited into an investment account, which you have investment control over. As such, you can end up with a significant portfolio depending on the investment decisions you make. The cost of your life insurance and administration are deducted from the investment account. 3. Cash Value Life Insurance is a type of insurance where the premiums charged are the higher at the beginning than they would be for the same amount of term insurance. The part of the premium that is not used for the cost of the insurance is invested by the company and builds up a cash value that may be used in variety of ways. You may borrow against a policy‘s cash value by taking a policy loan. If you don‘t pay back the loan and the interest on it, the amount you owe will be subtracted from the benefits when you die or from the cash value if you stop paying premiums and take out the remaining cash value. You can also use your cash value to keep insurance protection for a limited time or to buy a reduced amount without having to pay more premiums. You can also use the cash value to increase your income in retirement or to help pay for needs such as a child‘s tuition without cancelling the policy. However, to build up this cash value, you must pay premiums in the early years of the policy. Cash value life insurance may be one of several types, whole life, universal life, and variable life are all types of cash value insurance. 4. Variable Life Insurance is a kind of insurance where the death benefits and cash values depend on the investment performance of one or more separate accounts which may be invested in mutual funds or other investments allowed under the policy. Be sure to get the prospectus from the company when buying this kind of policy and study it carefully. You will have higher death benefits and cash value if the underlying investments do well. Your death benefits and cash value will be lower or may disappear if the investments you choose didn‘t do as well as you expected. You may pay an extra premium for a guaranteed death benefit.

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COST COMPARISON As discussed, term life insurance costs less than permanent life insurance. Let‘s compare the annual ranges of rates on a $100,000 policy among various providers for the two types of life insurance that are most commonly sold: Term Life and Whole Life.
TERM LIFE TERM LIFE

WHOLE LIFE

10 YEARS AGE 25
MALE FEMALE

20 YEARS $138- $218
$115 - $218

$123- $166
$94 - $137

$386- $864
$313 - $736

AGE 40
MALE FEMALE
$150 - $298 $127 - $244 $206 - $389 $163 - $389 $723 - $1,525 $586 - $1,231

AGE 60
MALE FEMALE
$583 - $1,645 $427 - $1,645 $1,213 - $2,074 $823 - $1,973 $2,242 - $4,330 $1,939 - $3,248

Assumptions: Non-smoker in regular health in Ontario; as at November 2009

(www.insurecan.com) Note: a male who started a Whole Life policy at age 25 would pay the $386$864 annual premium for as long as the policy was kept current (e.g. age 60 and beyond) whereas the premium for a term life policy increases at the end of each term as you get older, regardless of the age that you first get the policy

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IMPORTANCE OF HAVING LIFE INSURANCE
 WHY DO WE NEED LIFE INSURANCE?  IS IT COMPULSORY FOR ALL?  SPECIAL BENEFITS FOR CHILDREN, IF ANY.

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IMPORTANCE OF LIFE INSURANCE IN VARIOUS FIELDS:IMPORTANCE OF LIFE INSURANCE IN ESTATE PLANNING:As part of the estate planning process, you may talk to any number of advisors—from lawyers, accountants and trust officers, to financial and retirement planners. These advisors often provide not only valuable services, but also may be in the business of selling investments, annuities and insurance. You will need to evaluate carefully as you do your planning whether the products offered to you are useful to you. Take life insurance, for instance. At first glance, it may not seem to have a great bearing on how you will dispose of your assets. Yet, life insurance is very often an integral part of a well-thoughtout estate plan.
WHY LIFE INSURANCE??

The proceeds of a life insurance policy can do much more than provide a large sum to your beneficiaries. Here is just a partial list of the benefits provided by making life insurance a part of your estate planning strategy 1… It provides immediate cash at death to pay funeral expenses, debts and final income taxes of the insured. 2…The cash provided by the proceeds can be made available to pay estate taxes and, thus, avoid the forced sale of an asset. 3… Generally, life insurance proceeds payable to a named beneficiary pass to that beneficiary free of income tax. 4… Proceeds from the policy provide a relatively low-cost source of funds that can be transferred to a trust created in the insured's will for the benefit of, for example, minor children or elderly or handicapped relatives. 5… Life insurance proceeds payable to someone other than the insured's estate can avoid passing through probate when the policy is owned by an irrevocable insurance trust. For example, the funds may be used to satisfy marital settlement obligations for child or spousal support.

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WHY YOU MAY NEED LIFE INSURANCE ?? The main reason many middle class families want life insurance is the need to provide a substantial lump sum to replace lost income if a parent or breadwinner dies. Young families are often carrying large mortgages and are meeting the expenses of growing children. This is why it's important for them to choose a life insurance product that provides the desired death benefits at a much lower current cost, which is term life. By the time many adults reach their fifties, their children are usually grown, their mortgage will typically be substantially paid down so they now have a good deal of home equity, and they will have accumulated other retirement savings. As such, the need for a substantial death benefit from a life insurance policy is much less important in later life. So for many young couples, it makes sense to focus the bulk of their life insurance on term life which is more cost-effective at that time of their life when life insurance is the most important. If you are younger, you may find it confusing when an insurance agent recommends whole life policies when an emphasis on term life would seem the better choice. Be aware that insurance agents typically get much higher commissions for selling whole life products and those commissions often can have an unfortunate influence on advice provided.

Foreign Direct Investment (FDI) Policy in Insurance Sector:As per the current (March 2006) FDI norms, foreign participation in an Indian insurance company is restricted to 26.0% of its equity / ordinary share capital. The Insurance Regulator has stipulated that foreign investment in Indian Insurance companies be limited to 26% of total equity issued (FDI limit) with the balance being funded by Indian promoter entities. The limit to foreign investment includes both direct and indirect investment and has been a cause of significant lobbying by foreign insurance companies for a change in regulations to increase the FDI limit to 49% of equity issued. The Indian government has supported an increase in the FDI limit, which requires a change in the Insurance Act. The Union Budget for fiscal 2005 had recommended that the ceiling on foreign holding be increased to 49.0%. A change in the Insurance Act requires a passage of the bill in both houses of Parliament.
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PARTS OF AN INSURANCE CONTRACT:1.. Declarations - identifies who is an insured, the insured's address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period and premium amount. These are usually provided on a form that is filled out by the insurer based on the insured's application and attached on top of or inserted within the first few pages of the standard policy form. 2... Definitions - define important terms used in the policy language 3... Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. It summarizes the major promises of the insurance company, as well as stating what is covered. 4... Exclusions - take coverage away from the Insuring Agreement by describing property, perils, hazards or losses arising from specific causes which are not covered by the policy. 5... Conditions - provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim. 6... Endorsements - additional forms attached to the policy form that modify it in some way, either unconditionally or upon the existence of some condition. Endorsements can make policies difficult to read for no lawyers; they may modify or delete clauses located several pages earlier in the standard insuring agreement, or even modify each other. Because it is very risky to allow no lawyer underwriters to directly rewrite core policy language with word processors, insurers usually direct underwriters to modify standard forms by attaching endorsements preapproved by counsel for various common modifications. 7... Policy riders - A policy rider is used to convey the terms of a policy amendment and the amendment thereby become part of the policy. Riders are dated and numbered so that both insurer and policyholder can determine provisions and the benefit level. Common riders to group medical plans involve name changes, change to eligible classes of employees, change in level of benefits, or the addition of a managed care arrangement such as an Health Maintenance Organization or Preferred Provider Organization (PPO).
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SEVERAL BENEFITS OF HAVING LIFE INSURANCE:A life insurance policy's primary purpose is to replace the income of a family breadwinner in the event of his or her untimely demise. The typical example is a family with two young children and a mortgage - if one of the parents were to die, the surviving spouse would likely find it impossible to maintain their current standard of living. But what about families with minimal debt and full grown children? Why would they need or want life insurance. Could life insurance help in maximizing wealth? In many cases, yes. Life insurance has several benefits for maximizing wealth: 1. Life insurance is tax efficient: the proceeds from a life insurance policy are paid out tax free. Moreover the death benefit of certain Permanent policies - more specifically Participating Whole Life and Universal Life policies - grow on a tax sheltered basis. They are paid out TAX FREE. The accumulation fund within a Universal Life policy or dividends within a Participating Whole Life policy can also be used to offset future premiums, allowing these premiums to be offset with pre-tax dollars rather than after tax dollars. 2. Life insurance is a risk free asset. Although the returns on life policies are often compared to returns of a portfolio of stocks or equity based mutual funds or exchanged traded funds, this is not a fair comparison. Returns on an equity based account have significant downside risk while the face amount on a life insurance policy are guaranteed. Even the accumulation funds one can add to a Universal Life policy's death benefit are often guaranteed. RBC Insurance, Transamerica and Empire Life all have minimum guarantees of 4% or higher on their Universal Life accounts. 3. One downside to life insurance that can't be ignored is the money contributed to a straight investment account can be accessed while the owner is alive, whereas the face amount on a life insurance policy is not paid out until the insured is dead. On many Universal Life policies, even the accumulation fund may not be accessed until the policy has been in force a certain number of years. Still, when stacking up the returns of a Universal Life or Whole Life death benefit against other risk free investments, they compare very favorably.

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4. Life insurance is liquid. Another key advantage to life insurance is that proceeds are paid immediately to policyholders beneficiaries and are not subject to probate fees. Probate fees are highest in Ontario: on a $1,000,000 estate the probate fees would be $14,500. The liquidity of life insurance is superb. When there is a significant tax liability from a family cottage or business, life insurance is exactly what you need to offset those liabilities and pass on an estate whole. So life insurance remains an extremely valuable tool in the financial toolbox for estate planning, even later in life when your full mortgage is paid up and your children have grown older.

IMPORTANT THINGS TO CONSIDER BEFORE CHOOSING A POLICY: Review your own insurance needs and circumstances. Choose the kind of
policy that has benefits that most closely fit your needs. Ask an agent or company to help you.

 Be sure that she can handle premium payments. Can you afford the initial
premium? If the premium increases later and you still need insurance, can you still afford it?

 Don‘t sign an insurance application until you review it carefully to be
sure all the answers are complete and accurate.

 Don‘t buy life insurance unless you intend to stick with your plan. It ma y
be very costly if you quit during the early years of the policy.

 Don‘t drop one policy and buy another one without a thorough study of
the new policy and the one you have now. Replacing your policy may be costly.

 Read your policy carefully. Ask your agent or company about anything
that is not clear to you.

 Review your life insurance program with your agent or company every
few years to keep up with changes in your income and your needs.

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HOW MUCH DO WE NEED??
Here are some questions to ask yourself…….. 1... How much of the family income I do provide? If I were to die early, how would my survivors, especially my children, get by? Does anyone else depend on me financially, such as a parent, grandparent, brother and sister. 2... Do I have children for whom I would like to set aside money to finish their education in the event of my death? 3... How will my family pay final expenses and repay debts after my death? 4... Do I have family members or organizations to whom I would like to leave money? 5... Will there be estate taxes to pay after my death? 6... How will inflation effect future needs?

WHAT IS THE RIGHT KIND OF LIFE INSURANCE???

All policies are not the same. Some give coverage for your lifetime and others cover you for a specific number of years. Some build up cash values and others do not. Some policies combined different kinds of insurance and others let you change from one kind of insurance to another. Some policies may offer other benefits while you are still living. Your choice should based on your needs and what you can afford.

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LIFE INSURANCE ILLUSTRATIONS:You may be thinking of buying a policy where cash values, death benefits, dividends or premiums may vary based on events or situations the company does not guarantee. If so, you may get an illustration from the agent or company that helps explain how the policy works. The illustration will show how the benefits that are not guaranteed will change interest rates and other factors change. The illustration will show you what the company guarantees. It will also show you that what could happen in the future. REASONS FOR OBTAINING LIFE INSURANCE There can be many reasons for purchasing life insurance. Certain reasons are more prevalent at one life stage than another GOAL
Provide resources for your children’s and/or grandchildren’s future
Ensure your spouse’s lifestyle is protected Cover a mortgage or other loan Finance a business opportunity, a sabbatical or retirement Provide a taxadvantaged cash value component that can be used to help meet future financial needs or opportunities Provide a tax-effective way to supplement retirement income for you and your spouse Plan for long term care needs in the future

Early career Family Established At or near 20 to 35 25 to 55 years 35 to 55 years retirement years old old old

   

   

  











 

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CHAPTER-3 RECRUITMENT PROCEDURE OF INSURANCE ADVISORS AT ING VYSYA LIFE INSURANCE CO. LTD.

INSURANCE AGENTS ARE OTHERWISE INSURANCE ADVISORS
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KNOWN AS INSURANCE DISTRIBUTORS OR

ING VYSYA LIFE INSURANCE CO.LTD

OBJECTIVE OF THE STUDY
The objective of my study is to understand and critically analyze the recruitment and selection procedure of insurance advisors at ING VYSYA life insurance co. ltd. 1. To know the prospect or recruitment and selection procedure. 2. To critically analyze the functioning of the recruitment and selection procedures. 3. To identify the probable area of improvement to make recruitment and selection procedures more effective. 4. To know the managerial satisfaction level about recruitment and selection procedure.

SCOPE OF THE STUDY
The benefit of the study for the researcher is that helped to gain knowledge and experience and also provided the opportunity to study and understand the prevalent recruitment and selection procedures.

The key points of my study are--1. To study the facts about the ING VYSYA insurance co. ltd. 2. To understand and analyze various H R factors including recruitment and selection procedure implemented at ING VYSYA insurance co. ltd. 3. To suggest any measures or recommendations for the improvement of the recruitment and selection procedures at ING VYSYA life insurance co. ltd.

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WHO IS AN ADVISOR IN INSURANCE??
An insurance advisor, also called an insurance broker in some instances, is the local representative of any number of insurance companies. A legitimate insurance agency must be licensed by a state board before he or she can legally sell insurance policies to customers. Generally, an advisor works as the local face of a single insurance company, but occasionally an independent advisor may work with different companies depending on their areas of expertise and coverage. Most consumers interested in purchasing insurance coverage will only deal with a local insurance advisor directly. He or she is authorized to present all of the coverage options available through the larger insurance company. Since part of an advisor's salary is based on commissioned sales, he or she will often offer one stop shopping for all of the customer's insurance needs. He or she may sell individual policies for car, home, life and medical insurance, or offer a package plan which incorporates a combination of these needs. Insurance customers are required to make regular payments called premiums to the insurance company, so part of an insurance advisor's job is to ensure compliance. He or she may send out reminders of an impending premium payment, or notify customers of any proposed rate changes. A good advisor may also keep track of any new developments in a client's life — a new teenaged driver or a new home, for example. Clients may need to change their coverage from time to time, so the advisor will negotiate the new terms with the parent company.

Perhaps the most visible part of an insurance agent's job occurs during an actual insurance claim. Following a car wreck or natural disaster, for example, customers are urged to contact their local insurance agent as soon as possible. Claims for insurance benefits must be processed through an authorized agent who can verify the circumstances of the accident or disaster. A specialist called a claims adjustor may be sent out by the insurance agency to personally inspect the damage and calculate the value of the claim.

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REVIEW OF RECRUITMENT AND SELECTION
Most of the employers recognize the fact that their staffs are their greatest asset, and the right recruitment and induction processes are vital in ensuring that the new employee becomes effective in the shortest time. The success of an organization depends on having the right number of staff, with the right skills and abilities. Organizations may have a dedicated personnel/ human resource function overseeing this process, or they may develop these responsibilities to line managers and supervisors. Many people may be involved, and all should be aware of the principles of good practice. Even it is essential involve others in the task of recruitment and induction. MANPOWER PLANNING Manpower planning means different things to different organizations. To some companies manpower planning means management development to others. It means estimating manpower needs, while some other may define manpower planning as organization planning. Although the term, manpower planning can be defined, as the process by which an organization ensures that it has the right number of people and the right kind of people at the right places, at the time doing things for which they are economically most useful. Manpower planning is a continuous process. In operational terms it involves the analysis of the current and future manpower resources terms and requirement to ensure that such needs and resources are always kept in proper balance, both in terms of quantity. NEED FOR MANPOWER PLANNING All said and done, it cannot be defined that the quality of manpower can be responsible for significant difference in the short and long run performances among companies. All organizations are basically human organizations. They need people to carry out the organizational mission, goals and objectives. Every organization needs to recruit people. The recruitment policy should, therefore, address itself to the key questions, what are the personnel/human resource requirement of the organization in terms of number, skills, levels, etc. to meet present and future needs of production and technical and other changes planned or anticipated in the next year.

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ISSUES IN RECRUITMENT AND SELECTION
 Do not discard applicants who ‗stopped out‘ to provide care for a child, or for maternity leave.  Consider the dynamics of the interview- is the candidate being interviewed in an environment i.e., representative of the office environment.  Understand question that cannot be asked regarding family, children, pregnancy, etc.  Provide medical insurance that covers the full range of medical needs of women employees, including reproductive health care.  Provide paid sick leave policies for employee‘s illness and illness of spouse lifetime partner, dependent children and elderly parents.  Provide life insurance, disability and pension programs that are non-discriminatory on the basis of gender.  Have clear and vigorously enforced sex, race and sexual orientation, discrimination and sexual harassment policies and include a statement about these policies in the advertisement of the positions.

FIVE AREAS CRITICAL TO THIS PROCESS
1.. Open communication. 2.. A commitment to creating an inclusive environment. 3.. Clear pre-conceived expectations based on gender. 4.. A neutral supervisor who can observe different styles and facilitated communication when a conflict arises. 5.. Training- sexual harassment as well as gender issues training. It is thought that 75%- 80% of sexual harassment complaints could be prevented by understanding gender differences.

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FACTORS AFFECTING RECRUITMENT
In recruiting new employees management must consider the nature of labor market, what sort of potential labor are available and how do look for works. The factors affecting can be summed up under the following heads:  Labor Market Boundaries:- The knowledge of the boundaries help management in estimating the available supply of qualified personnel form, which it might recruit. A labor market consists of a geographical area in which the forces of demand and supply interact and thus affect the price of labor.  Available skills:- Companies must locate the areas where they can find employees who fit the jobs according to their skills.  Economic Condition:- Economic conditions also affect recruitment. Unemployment worker may swamp a new plan located in a depressed labor market whereas a firm trying to establish it or to expand in an area where a few qualified workers are out of work has quite a different recruitment problem.  Attractiveness of the Company:- The attractiveness of the company in terms of higher wages, clean work, better fringe benefits and rapid promotions serves as influencing factor in recruitment.

IMPORTANCE OF RECRUITMENT
Recruitment of the people who are wrong for the organization and lowering of morale in the existing workforce. Such people are likely to be discontented, unlikely to give their best, and end up leaving voluntarily or involuntarily when their unsuitability becomes evident. They will not offer the flexibility and commitment that many organizations seek. Managers and supervisors will have to spend extra time on further recruitment exercises, when what is needed in the first place is a systematic process to access the role to be filled, and the type of skills and most recruitment systems will be simple, with stages that can be followed as a routine whenever there is a vacancy to be filled, and which can be monitored and adapted in the light of experience.

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RECRUITMENT PROCEDURE
A vacancy presents an opportunity to consider restructuring, or to reassess the requirements of the job. This assessment is valid whether it is to fill an existing job or a new one. ASK QUESTIONS SUCH AS-- Has the function changed?  Have work patterns, new technology or new products altered the job?  Are there any changes anticipated which will require different, more flexible skills from the jobholder? Answer to these questions should help to clarify the actual requirements of the job and how it is fits into the rest of the organization or department. Exit interviews or consultation with the current job-holder and colleagues may well produced good ideas about useful changes. Recruitment begins by specifying the human resource requirement, initiating activities and action to identify the possible sources from where they can be met, communicating the information about the jobs, terms and conditions and prospects they offer, and enthuse the people who meet the requirement to respond to the invitation by applying for jobs. Thereafter selection process begins. The process is as follows:Decide On How Many People You Really Need If everything is being done to improve performance and still there is a gap between what the current performance is and the goals set, then the best way is to recruit more people. Analyzing The Job Analyzing the job is the process of assembling and studying information relating to all aspects of the particular post. Analysis is done to find possible details about:

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 Purpose: Identify the aims and objectives of job and what the employee is expected to achieve within department and company.  Position: The job title, its position in the hierarchy and for whom it is responsible ought to be recorded. A sample organization chart may be useful for these purpose.  Main duties: A list of key tasks may be written out; standards that need to be reached and maintained. Methods of recording, assessing the key tasks must be determined.  The work environment : Study the physical and social environment in which the work is out because the work environment influences the quantity and quality of the work. Drafting a Job Description After job analysis is done, job description is made. Job description describes the job. The job description decides upon the exact knowledge, skill and experience needed to do the job. Job description must be drafted around this heading:        Job title Responsible to Responsible for Purpose of job Duties Responsibility Signatures and date

Evaluation Future Needs For evaluation future needs manpower is drafting. A manpower plan evolves studying the make-up of present work force, assessing forth coming changes and calculating future work force, which is required. Manpower planning helps devising long-term recruitment plans.

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Finding sources of recruitment The human resource requirement can be met from internal or external sources: INTERNAL SOURCES These refer to persons already employed in the organization. Promoting persons from lower levels may fill up vacancies at higher levels. Shortage of manpower in one branch/factory may be met by transferring surplus staff from another branch/factory. Promotion means shifting of an employee to higher post carrying greater salary, status and responsibility. On the other hand transfer refer to the shifting an employee with salary, status and responsibility. Some time ex-employee of the organization may be re-employed. ADVANTAGES OF INTERNAL SOURCES 1. Filling vacancies for higher jobs by promoting employees from within the organization helps to motivate and improve the moral of the employees. This induces loyalty among them. 2. Internal requirement has to minimize labor turn over and absenteeism. People wait for promotion and the work force is more satisfied. 3. Candidates working in organization do not require induction training. They are already familiar with organization and with the people working in it. DISADVANTAGES OF INTERNAL SOURCES 1. There may be inbreeding, as fresh talent from outside is not obtained. Internal candidates may not be given a new outlook and fresh ideas to business. 2. Unsuitable candidates may not be promoted to positions of higher responsibility because the choice is limited. 3. The employees may become lethargic if they are sure of time bound promotion. There may be infighting among those who aspires for promotion within the organization. 4. Internal recruitment cannot be complete method in itself. The enterprise has to resort external recruitment at some stage because all vacancies cannot be filled from within organization.
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EXTERNAL SOURCES It refers to recruitment of employees from outside the organization. External sources provides wide choice of the required number of the employees having the desired qualification. It also provides the people with new ideas and specialized skills required to cope with new challenge and to ensure growth of the organization. Internal competitors have to compete with the outsiders. However, existing employees resent the policy of filling higher level vacancies from outsiders. Moreover it is time consuming and expensive to recruit peoples from outside. ADVANTAGES OF EXTERNAL SOURCES 1. The entry of fresh talent into the organization is encouraged. New employees bring new ideas to the organization. 2. External sources provide wider sources of personnel to choose from. 3. Requisite type of personnel having the required qualifications, training and skill are available from external sources.

DISADVANTAGES OF EXTERNAL SOURCES

1. The enterprise can make the best selection since selection is made from among a large number of applicants. 2. There is a greater decoration in employer-employee relationship, resulting in industrial strikes, unrest and lockouts. 3. The personnel selected from outside may suffer from the danger of adjustment to the new work environment.

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APPLICATION FORMS Application forms can help the recruitment process by providing necessary and relevant information about the applicant and their skills. The design of the form needs to be realistic and straight forward, appropriate to the level of the jobs. Advantages of using application forms: 1. They provide the basis for an initial sift, and then for the interview. 2. The standard of completion can be a guide to the candidates suitability, if writing and presentation skills are essential to the job; however, be aware of the possibility of disability discrimination. 3. They provide a record of qualification, abilities and experience as stated by the applicant.

METHODS OF RECRUITMENT All methods of recruitment can be put into three categories: a. Direct Method b. Indirect Method c. Third party Method Direct Method : These include the campus interview and keeping live register of job seekers. Usually under this method, information about jobs and profile of persons available for jobs is exchanged and preliminary screening is done. The shortlisted candidates are then subjected to the remainder of the selection process. Some organizations maintain live registers or record of applicants and refers to them as and when the need arises. Indirect Method : They cover advertising in newspapers, on the radio, in trade and professional journals, technical journals and brochures. When qualified and experienced persons are not available through other sources, advertising in newspapers and professional and technical journals in made. Whereas all types of advertisements can be made in newspapers and magazines.

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Third Party Method : Various agencies are used for recruitment under these methods. These include commercial and private employment agencies, state agencies and placement offices of schools, colleges and professional associations, recruiting firms, management consulting firms, indoctrination seminars for college professors, friends and relatives.

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CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

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DATA INTERPRETATION
A questionnaire was prepared for the purpose of getting feedback from the employees and manager regarding ‗Recruitment Procedure of Insurance Advisors‘ of their company. 30 employees are selected from different department and were distributed the questionnaire for the purpose of the study.

ANALYSIS OF THE DATA
The analysis of the data is done as per the survey finding. The data is represented graphically in percentage. The percentage of the people opinion were analyzed and expressed in the forms of charts and have been placed in next few pages.
MANPOWER PLANNING:

1. Specify the time period for which estimates are made? Sl no. 1 2 3 4 Opinion
0-2 years 2-3 years 3-4 years 4 & above years

No of Respondent
9 6 9 6

Percentage
30 % 20% 30% 20%

Time Period For Estimate
0-2 yrs 2-3 yrs 3-4 yrs 4 & above

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   

30% people said that the company specifies 0-2 years for making estimation of forecasting. 20% people said that the company specifies 2-3 years for making estimation. 30% people said that the company specifies 3-4 years for making the estimation for forecasting. 20% people said that the company specifies 4 and above years for making forecasting.

2. Does your organization plan the recruitment policy? Sl No
1 2

Opinion
Yes No

No of Respondent
30 0

Percentage
100% 0%

Written Recruitment Policy

no yes

 100% people said that they plan the recruitment policy

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3. What do you suggest should be the basis of forecasting? Sl No
1 2 3 4

Opinion
Total cost of the project Past experience Different phases of the project All of the above

No of Respondent
6 12 9 3

Percentage
20% 40% 30% 10%

Basic Forecasting

Total cost of the project Past experience Different phases of the project All of the above

 20% people said that their company forecast on the basis of total cost of the project.  40% people said that the company forecast on the basis of past experiences.  30% people said that the company forecast on the basis of the different phases of the project.  10% people said that the company forecast on the basis of all f the above.

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4. Do you think the present recruitment policy is helpful in achieving the goals of the company? Sl No
1 2 3

Opinion
Yes No To some extent

No of Respondent
15 6 9

Percentage
50% 20% 30%

RECRUITMENT POLICY

Yes No To some extent

 50% people said that the company‘s recruitment policy is helpful in achieving the goals.  20% people said that the company‘s recruitment policy is not helpful in achieving the goals.  30% people said that the company‘s recruitment policy is helpful to some extent in achieving the goals.

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5.Through which source your organization recruit the employees?

Sl No
1 2 3

Opinion
Internally Externally Both

No of Respondent
6 18 6

Percentage
20% 60% 20%

Sources of recruitment

Internally Externally Both

 20% people said that the company recruits the employee from the internal sources.  60% people said that the company recruits the employee from the external sources.  20% people said that the company recruits the employee from both the sources.

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6.Which of the following sources you choose for the recruitment of the employees? Sl No Opinion No of Respondent Percentage
1 Employee exchange consultant Private employee Agencies Advertisement Internet Any Other 6 20%

2

6

20%

3 4 5

3 12 3

10% 40% 10%

External Sources

Employee Exchange Consultant Private Employee Agency Advertisement Internet Any Other

 20% people said that the company uses the employee exchange consultant.  20% people said that the company uses the private employee agency.  10% people said that the company uses the advertisement method.  40% people said that the company uses the internet method.  10% people said that the company uses any other way.

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7. Does your organization recruit employees through latest methods of recruitment through internet? Sl No
1 2

Opinion
Yes No

No of Respondent
30 0

Percentage
100% 0%

Sales

Yes No

 100% people said that the company uses the latest method of recruitment.

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8. Is company use own website for recruitment?

Sl No
1 2

Opinion
Yes No

No of Respondent
27 3

Percentage
90% 10%

Use Own Website

Yes No



90% people said that the company uses its own website for recruitment. 10% people said that the company do not use its own website.



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9. How much number of employees you train in a year?

Sl No
1 2 3

Opinion
5-10 emp 10-15 emp 15 & above

No of Respondent
0 6 24

Percentage
0% 20% 80%

Number of Employees Trained In A Year

5-10 emp 10-15 emp 15 & above

 0% people said that the company trains 5-10 employees in a year.  80% people said that the company trains 10-15 employees in a year.  20% people said that the company trains 15 and above employees in a year.

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10. Is internet recruitment effective in your opinion? Sl No
1 2

Opinion
Yes No

No of Respondent
24 6

Percentage
80% 20%

Internet Recruitment

Yes No

 80% people said that the internet recruitment is effective sources of recruiting the employee.  20% people are not in favor of recruiting employees through internet.

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CHAPTER-5

QUESTIONNAIRE

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QUESTIONNAIRE
SURVEY ON THE MANAGERIAL SATISFACTION LEVEL OF RECRUITMENT OF INSURANCE ADVISORS Dear Respondent, We are conducting a survey on the managerial satisfaction level for the recruitment procedure of the insurance advisors. Your free and frank opinion would be very valuable in conducting the survey. Please answer the following questions with (YES) in the appropriate boxes. MANPOWER PLANNING: 1. If yes, then please specify the time period(s) for which the estimates are made? (a) 0-2 years (b) 2-3 years (b) 3-4 years (d) 4 & above years RECRUITMENT POLICY: 2. Does your organization plan the recruitment policy? (a) Yes (b) No 3. What do you suggest should be the basis of forecasting? (a) Total cost of project (b) Past experience (b) Different phases of project (d) All of the above 4. Do you think the present recruitment policy is helpful in achieving the goals of the company? (a) Yes (b) No (b) To some extent

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SOURCES OF RECRUITMENT 5. Through which source your organizations recruit the employees? (a) Internally (b) Externally (b) Both 6. Which of the following external sources we choose for the recruitment of the employees? (a) Employee exchange consultant (b) Private employee agencies (c) Campus recruitment (d) Advertisements (e) Any other….

LATEST TECHNIQUES OF RECRUITMENT 7. Do your organization recruit employees through latest method of recruitment through internet? (a) Yes (b) No 8. If yes, then the company use own website for this purpose? (a) Yes (b) No 9. Is internet recruitment effective in your opinion? (a) Yes (b) No

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Chapter-6

 CONCLUSION  BIBLIOGRAPHY

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CONCLUSION
Based on the analysis through the questionnaire responses the following is the conclusion of the study.

The organization follows the rules and regulations involved in their recruitment and selection procedure of the organization. However, there are some scope for improvement with regard to following.

1.. The managers are fully satisfied with the existing recruitment procedure.

2.. The recruitment procedure should not be lengthy.

3.. To some extent a clear picture of required candidates should be made in order to search for appropriate candidates.

4.. The recruitment procedure should be impartial.

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BIBLIOGRAPHY  Personal management by K.V. Mishra, Aditya publishing house,
Madras, 1992

 CHHABRA T.N. Principles and practices of management,
Dhanpat Rai and co. (p) ltd., Delhi 2000

 Practice of Human Resource by Danny Sheild  Manuals from the Bank  www.inglife.co.in

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