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Project Study Report

Training Undertaken at


Submitted in partial fulfillment for the

Award of degree of
Master of Business Administration

Submitted By: - Submitted To:-



College of Engineering & Technology, Bikaner


This is to certify that Ms. LEENA BIJARNIYA student of MBA II Year (IIIrd Sem.)
completed training project report entitled “RECRUITMENT PROCESS IN
INSURANCE COMPANY”. The project has been completed after studying for
one year in MBA course and for partially fulfilling the requirements for award of
degree of Master of Business Administration of Rajasthan Technical University,
The Training Project Report has been completed under the guidance of Mr.
NARENDRA CHOUDHARY of CET and is as per norms and guidelines



“Success comes with knowledge & knowledge is comes with training.”

MBA is a stepping stone to the management carrier and to develop good

manager. It is necessary that the theoretical must be supplemented with
exposure to the real environment. Theoretical knowledge just provides the base
and it’s not sufficient to produce a good manager that’s why practical knowledge
is needed.

Therefore the research product is an essential requirement for the student

of MBA. This research project not only helps the student to utilize his skills
properly learn field realities but also provides a chance to the organization to find
out talent among the budding managers in the very beginning.

In accordance with the requirement of MBA course I have summer training

project on the topic “Recruitment Process in Insurance Company” with SBI
Life Insurance Ltd. The main objective of the research project was to study the
recruitment process of financial consultants in any insurance company.

The information regarding the project research was collected through the
questionnaire formed by me which was filled by the customers there.


I express my sincere thanks to my project guide Mr. Narendra

Choudhary, HOD, Department of Management. For guiding me right from the
inception till the successful completion of the project. I sincerely acknowledge
him for extending their valuable guidance, support for literature, critical reviews of
project and the report and above all the moral support he had provided to me
with all stages of this project.

I consider it a pleasant duty to express my heartfelt appreciation, gratitude

and indebtedness to Mr. Bhavesh Dhankani (Sr. Branch Manager) for their
keen interest, invaluable pains taking & excellent guidance, patience, endurance,
encouragement & thoughtful advice for the project work.

I would take this opportunity to thank all my family members for their helps
& suggestions during the course of project work. I am also thankful to all my
friends who gave me constant & continuous inspiration to complete this project.

I would also like to thank the supporting staff College of Engineering &
Technology, Bikaner for their help and cooperation throughout our project.

( )


Project study report consists of brief description of company SBI LIFE

INSURANCE CO. LTD., SIKAR, the special focus on the human resources. My
topic was “Recruitment Process in Insurance Company” along with significant
findings & suggestions that give idea how many the employees in the company
are satisfied and not satisfied with welfare facility of the company.
Recruitment is the process of searching the candidates for employment
and stimulating them to apply for jobs in the organization. In the other words
recruitment is the activity that links employers and job seekers.
Recruitment procedure of SBI Life Insurance is very easy. A person with
high educating and well experience can be recruited after a personal interview
and group discussion. After the training program is completed the insurance
agent has to appear for the pre-examination conducted by IRDA. As he clear the
exam he provides a license, which is the proof of a legalized insurance agent,
which permits him to deal in his insurance business.
Recruitment of candidates is the function preceding the selection, which
helps create a pool of prospective employees for the organization so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop
a pool of qualified applicants for the future human resources needs even though
specific vacancies do not exist. Usually, the recruitment process starts when a
manger initiates an employee requisition for a specific vacancy or an anticipated

Chapter No.-1 Introduction to the Industry 1-13
1.1 Introduction 2
1.2 Insurance industry 6
1.3 Life insurance 8
1.4 Life insurance in India 11
Chapter No.-2 Introduction to the Organization 14-34
2.1 SBI life insurance 15
2.2 Products 17
2.3 Tax benefits 21
2.4 Project profile 23
Chapter No.-3 Research Methodology 35-39
3.1 Title of the study 36
3.2 Duration of the project 36
3.3 Objective of study 36
3.4 Type of research 36
3.5 Sample size and method of selecting 37
3.6 Scope of study 39
3.7 Limitation of study 39
Chapter No.-4 Facts and Findings 40-46
4.1 Market survey 41
4.2 Role of the development agency 46
Chapter No.-5 Analysis and Interpretation 47-53
5.1 Market survey report 48
5.2 Product policy queries 52
Chapter No.-6 SWOT 54-56
6.1 Strengths 55
6.2 Weakness 56
6.3 Opportunities 56
6.4 Threats 56
Chapter No.-7 Conclusion 57-58
Chapter No.-8 Recommendation and Suggestions 59-61
Appendix 62-65
Bibliography 66-67

Chapter – 1
Introduction to the Industry
Insurance Industry
Life Insurance
Life Insurance in India


1.1 Introduction
The insurance sector was opened up in the year 1999 facilitating the entry
of private players into the industry. With an annual growth rate of 24.31 percent
and the largest number of life insurance policies in force, the potential of the
Indian insurance industry is huge. The year 1999 saw a revolution in the Indian
insurance sector, as major structural changes took place with the ending of
Government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting entry restrictions for private players and
allowing foreign players to enter the market with some limits on direct foreign

According to the CSO, the insurance and banking services’ contribution to
the country’s GDP is 7.1 percent out of which the gross premium collection forms
a significant part. Life insurance penetration in India was less than 1 percent till
1990-91. During the ‘90s, it was between 1 and 2 percent and from 2001 it was
over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08 it was 14percent.
The impetus for increase is due to the active role played by IRDA in
licensing private players and taking positive steps in increasing the insurance
awareness among the people. Besides, the insurance companies in general and
private insurance companies in particular, are reaching out to untapped potential
in rural areas with aggressive campaigns.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers faster
than anyone expected. Life insurance is viewed as a tax saving device. People
are now turning to the private sector for providing them with new products and
greater variety for their choice. The improvement in FDI flows reflected the
impact of recent initiatives aimed at creating an enabling environment for FDI and
for encouraging infusion of new technologies and management practices. The
Government’s proposal to increase the FDI cap in the insurance sector from the
present 26 percent to 49 percent has raised expectations among the international
insurance companies.
1.1.1 Definition
“Insurance is a contract in which sum of money is paid to the assured in
consideration of insurer’s incurring risk of paying a large sum upon a given
contingency.” --- Justice Tindall
“Insurance is a contract by which one party for a compensation called in
the premium assumes particular risks of the other party and promises to pay to
him or his nominee a certain sum of money on a specified contingency.”
“Insurance may be described as social device whereby a large group of
individuals, through a system of equitable contribution, may reduce certain

measurable risk of economic loss common to all members of the group.”
--- Encyclopedia
The above definitions clearly shows that insurance is a cooperative device
to spread the loss caused by a particular risk over a member of persons who are
exposed to it and who agree to insure themselves against risk. Insurance does
not eliminate risk but only reduces the financial burden, which may be very

1.1.2 Evolution of Insurance

In the days of yore insurance was in its crude form and was cooperative
and voluntary in nature. When, where and how it originated is still a matter of
research in one way or the other was prevalent in olden days. We can trace its
history from the evolution society from hunting stage to the modern industrial
age. A word “YAGCHHEM” occurs in the world’s most ancient Hindu Scripture
Rig Veda.
The word “YAGCHHEM” means insurance. It clearly indicated that about
four thousand years ago insurance was prevalent in its crude form. It was
cooperative and voluntary in nature. People formed different groups of
organizations to share the loss among themselves incase of a particular risk.
Each member contributed some amount to a common fund to meet the
unforeseen losses. Sometimes they also contributed equally to compensate
person as and when he suffered a loss. Traces of insurance in the ancient world
are also found in the form of marino trade loans or carriers contracts which
included an element of insurance.
Evidence is on records that arrangements embodying the idea of
insurance were made in Babylonia and India at quite an early period. References
were made to the concept of insurance in Manu’s code “Manu Smrity”. It was
akin to “Yagakshemo” of Rigveda in which the well being and security of the
community was aimed at. However, there is no evidence that insurance in its
present farm was practiced prior to twelfth century.

1.1.3 Nature of Insurance
The insurance has the following characteristics which are observed in
cases of life, marine, fire and general insurance.
1. Sharing of risks: Insurance is a cooperative device to share the financial
losses which might befall on an individual or his facility on the occurrence
of specified event such as sudden death of the bread winner, marine perils
in marine insurance, fire in the fire insurance and theft insurance etc. in
the case of general insurance.
2. Cooperative device: A large number of persons agree to share the loss
arising sue to a particular risk. Thus, insurance is a cooperative device.
3. Value of risk: The risk is evaluated before insuring to charge the amount
of share called premium.
4. Payment made at contingency: The payment is made at a certain
contingency insured. The Contingency may be death, fire, marine perils
5. Amount of payment: The amount of payment depends upon policy

1.1.4 Functions of Insurance

A) Primary Functions-
1) Insurance provides certainty: Insurance provides certainty of
payments at the uncertainty of losses. The element of uncertainty is
reduced by better planning and administration.
2) Insurance provides protection: The risk will occur or not, when will
occur and how much loss will be there. There are uncertainties of
happening of time and amount of losses. The main function of the
insurance is to provide protection against the losses.
3) Risk sharing: Risk is uncertain and therefore, the loss arising from
the risk is also uncertain. All business concern faces the problem of

the risk and if the concern is big enough the handling of risk
becomes a specialized function. Insurance, as a device is the
outcome of the existence of various risks in our day to day life. It
spreads the whole losses over a large number of persons who are
exposed by a particular risk.

B) Secondary Functions-
1) Prevention of loss: Prevention is always better than cure.
Prevention is by far the best solution to the problem of risk. It is
more effective and cheapest method to avoid the unfortunate
consequence. But sometimes prevention is not always possible and
2) Provides capital: It provides the capital to the society. For
plan development of country there is a great need for huge amount
of capital. Now days, the insurance companies are rendering
positive help in the development of trade, commerce and industry
of the country.
3) Improves efficiency: Achievement of goals, it improves not
only his efficiency of the masses is also advanced. The insurance
eliminates worries and miseries of losses as death and destruction
of property care free person can devote his energies for better.
4) Ensures the welfare of society: “Insurance is a saga of
service and security” to thee society. Security of the life and
property given by insurance bring peace of mind to the insured. The
investment in LIC in welfare schemes like electricity, housing, water
supply, agro industry estates are able to solve many problems in
5) Helps in economic progress: Insurance provides an initiative
to work hard for the betterment of the masses. Life insurance
involves the element of saving investment through small savings.
And which has been growing in recent years at an annual rate of

about Rs. 400 crs. Life insurance is not a mere business
organization; it has nobler welfare responsibilities in the
development of the economy.

1.2 Insurance Industry

1.2.1 Introduction
With an annual growth rate of 15-20% and the largest number of life
insurance policies in force, the potential of the Indian insurance industry is huge.
Total value of the Indian insurance market (2004-05) is estimated at Rs.450
billion (US$10 billion). According to government sources, the insurance and
banking services’ contribution to the country's gross domestic product (GDP) is
7% out of which the gross premium collection forms a significant part.
The funds available with the state-owned Life Insurance Corporation (LIC)
for investments are 8% of GDP. Till date, only 20% of the total insurable
population of India is covered under various life insurance schemes, the
penetration rates of health and other non-life insurances in India is also well
below the international level. These facts indicate the of immense growth
potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major
structural changes took place with the ending of government monopoly and the
passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26% equity
in an insurance company, a proposal to increase this limit to 49% is pending with
the government. Since opening up of the insurance sector in 1999, foreign
investments of Rs. 8.7 billion have poured into the Indian market and 21 private
companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers faster
than anyone expected. Indians, who had always seen life insurance as a tax

saving device, are now suddenly turning to the private sector and snapping up
the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with
premium income from new business at Rs. 253.43 billion during the fiscal year
2004-2005, braving stiff competition from private insurers. RNCOS’s report,
“Indian Insurance Industry: New Avenues for Growth 2012”, finds that the market
share of the state behemoth, LIC, has clocked 21.87% growth in business at
Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still
not enough to arrest the fall in its market share, as private players grew by 129%
to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year
(2004-2005) compared to the previous one, its market share came down from
87.04 to 78.07%. The 14 private insurers increased their market share from
about 13% to about 22% in a year's time. The figures for the first two months of
the fiscal year 2005-06 also speak of the growing share of the private insurers.
The share of LIC for this period has further come down to 75 percent, while the
private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public
sector companies and eight private insurers. According to estimates, private
insurance companies collectively have a 10% share of the non-life insurance
Though the focus of this market research report is on the potential growth
on the Indian Insurance Sector, it also talks about the market size, market
segmentation, and key developments in the market after 1999. The report gives
an instant overview of the Indian non-life insurance market, and covers fire,
marine, and other non-life insurance. The data is supplied in both graphical and
tabular format for ease of interpretation and analysis. This report also provides
company profiles of the major private insurance companies.

1.2.2 Report Highlights

• Gains of liberalization in Indian insurance sector

• Indian insurance market segmentation by products
• Size of the market and market share of life insurers, in INR (crore)
• Market share of non-life insurers
• Forecast of life insurance growth up to 2012
• Forecast of non-life insurance growth up to 2012
• Market revenue of both public and private insurers
• Policies and measures taken by IRDA to develop the insurance market
• Research and development activities
• Regulation of insurance and reinsurance companies
• Major challenges that Indian insurance sector is facing
• Profiles of the major players

1.3 Life Insurance

1.3.1 Definition
“The life insurance contract embodies an agreement in which broadly
stated, the insurer undertakes to pay a stipulated sum upon the death of the
insurer to a designated beneficiary.” --- J.H.MAGEE
“Life insurance contract may be defined whereby the insurer, in
consideration of premium paid either installment, undertakes to pay an annuity
on the death of the insured of a certain number of years.” --- R.S.SHARMA
“A contract of life assurance is that in which one party agrees to pay a
given sum on the happening of a particular event contingent upon the duration of
human life in consideration of immediate payment of a smaller sum by another.”

1.3.2 Advantages of life insurance

1. It is superior to an ordinary saving plan: this is so because unlike other
saving plans, it offers full protection against risk of death.

2. Insurance encourages and enforces thrift : many people may not have the
will power to continue a long term saving plan which they may formulate
regular payments in face of money other uses to which their limited
income could be put.
3. Easy installments and protections against creditors: the proceeds of a life
insurance policy can be protected against the claims of the creditors of life
assured by affection a valid assignment of the policies.
4. Tax relief: the income tax act exempts from tax that part of an individual’s
income which is devoted to payment of life insurance premium.
5. Estate duty: life insurance is the most practicable way to ensure definite
payment on one’s death without having resort to conversion of realizable
asset at a loss.

1.3.3 Why Life Insurance

Life Insurance has come a long way from the earlier days when it was
originally conceived as a risk covering medium for short periods of time, covering
temporary risk situations, such as sea voyages. As life insurance became more
established, it was realized what a useful tool it was for a number of situations,
including –
1. Temporary needs / threats: The original purpose of life insurance
remains an important element, namely providing for replacement of
income on death etc.
2. Regular Savings: Providing for one's family and oneself, as a medium to
long term exercise (through a series of regular payment of premiums).
This has become more relevant in recent times as people seek financial
independence for their family.
3. Investment: Put simply, the building up of savings while safeguarding it
from the ravages of inflation. Unlike regular saving products, investment
products are traditionally lump sum investments, where the individual
makes a one off payment.

4. Retirement: Provision for later years becomes increasingly necessary,
especially in a changing cultural and social environment. One can buy a
suitable insurance policy, which will provide periodical payments in one's
old age.

 Let us take an example to understand the need for insurance:

Mr. Pranay is 45 years of age and self-employed. His wife Nandini, who is
a housewife, looks after their two children aged 3 and 7 years.
They stay in a rented accommodation, where the rent is 15,000 rupees
per month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on
average are 40,000 rupees. Mr. Atul passes away in an unfortunate road
accident. What are some of the financial implications of his death on his family?
There may be several financial implications on his family. Some of these are:
a) The monthly income, previously provided by Mr. Atul would stop.
b) His wife and children may have to seek financial assistance from other
c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.
d) The family may have to move into a cheaper accommodation.
e) His widow may have to take up work to earn money.
f) The education of his children may suffer.
This simple example illustrates the impact premature death can have on a
family, where the main earner has no life cover. Had Mr. Atul taken life cover, his
family would not have faced such hardships in the event of his unfortunate death.
A simple life insurance policy could have provided Mr. Atul's family with a lump
sum that could have been invested to provide an income equal to all or part of his
In simple words, insurance protects against untimely losses. Insurance
has been found useful in the lives of persons both in the short term and long
term. Short term needs like sudden medical costs and long term needs like
marriage expenses etc can be met with using life insurance.

1.4 Life Insurance in India
With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India. Today it
stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 percent to the country’s GDP .In spite of all
this growth the statistics of the penetration of the insurance in the country is very
poor. Nearly 80% of Indian populations are without Life insurance cover and the
Health insurance.
This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform.
Since then the insurance industry has gone through many sea changes
.The competition LIC started facing from these companies were threatening to
the existence of LIC. Since the liberalization of the industry the insurance
industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today. The use of
new distribution techniques and the IT tools has increased the scope of the
industry in the longer run.
1.4.1 History
The origin of insurance is very old .The time when we were not even born;
man has sought some sort of protection from the unpredictable calamities of the
nature. The basic urge in man to secure himself against any form of risk and
uncertainty led to the origin of insurance. The insurance came to India from UK;
with the establishment of the Oriental Life insurance Corporation in 1818.

The Indian life insurance company act 1912 was the first statutory body
that started to regulate the life insurance business in India. By 1956 about 154
Indian, 16 foreign and 75 provident firms were been established in India. Then
the central government took over these companies and as a result the LIC was
formed. Since then LIC has worked towards spreading life insurance and building
a wide network across the length and the breath of the country. After the
liberalization the entrance of foreign players has added to the competition in the
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. In 1957 General Insurance
Council, a wing of the Insurance Association of India, frames a code of conduct
for ensuring fair conduct and sound business practices. In 1972 The General
Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
It was after this that 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.

1.4.2 Present Scenario

The government of India liberalized the insurance sector in March 2000
with the passage of the Insurance Regulatory and Development Authority (IRDA)
bill. Policies come under the purview of the government appointed Tariff Agenty
Committee. The opening up of the sector is likely to lead to greater spread and
deepening of insurance in India and this may also restructuring and revitalizing of
the public sector companies. A host of private insurance companies operating in
both life and non life segments have started selling their insurance policies since
Non life insurance market, In December 2000, the GIC subsidiaries were
restructured as independent insurance companies. At the same time, GIC was

converted into national re-insurer. In July2002, Parliament passed a bill, delinking
the four subsidiaries from GIC.
Presently there are 12 general insurance companies with 4 public sector
companies and 8 private insurers. Although the public sector companies still
dominate the general insurance business, the private insurance companies have
a 10 percent share of the market, up from 4 percent in 2001. In the first half of
2002, the private companies booked premium worth 6.34 billion. Most of the new
entrants reported losses in first yr of their operation in 2001.
Insurance costs constitute roughly around 1.2 – 2 % of the total project
costs. Under the existing norms, insurance premium payments are treated as
part of the fixed costs. Consequently they are treated as pass through costs for
tariff calculations. For projects costing up to Rs.1 billion, the tariff Agent
committee sets the premium rates, for projects between 1 billion and 15 billion,
the rates are set in keeping with committee’s guidelines; and projects above 15
billion are subjected to reinsurance pricing. It is the last segment that has a
number of additional products and competitive pricing. Insurance, like project
finance, is extended by a consortium. Normally one insurer takes the lead,
shouldering about 40-50% of the risk and receiving proportionate percentage of
the premium.

Chapter – 2
Introduction to the Organization
SBI Life Insurance
Tax Benefits
Project Profile


2.1 SBI Life Insurance

SBI Life Insurance Company Limited is a joint venture between the State
Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with
an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores.
SBI owns 74% of the total capital and BNP Paribas Assurance the remaining

State Bank of India enjoys the largest banking franchise in India. Along
with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500
branches across the country, arguably the largest in the world.
BNP Paribas Assurance is the life and property & casualty insurance unit
of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world’s top
6 group of banks by market value and a European leader in global banking and
financial services, is one of the oldest foreign banks with a presence in India
dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance
company in France, and a worldwide leader in Creditor insurance products
offering protection to over 50 million clients. BNP Paribas Assurance operates in
41 countries mainly through the banc assurance and partnership model.
SBI Life has a unique multi-distribution model encompassing Banc
assurance, Agency and Group Corporate. SBI Life extensively leverages the SBI
Group as a platform for cross-selling insurance products along with its numerous
banking product packages such as housing loans and personal loans. SBI
access to over 100 million accounts across the country provides a vibrant base
for insurance penetration across every region and economic strata in the country
ensuring true financial inclusion.
SBI Life extensively leverages the State Bank Group relationship as a
platform for cross-selling insurance products along with its numerous banking
product packages such as housing loans and personal loans.

2.1.1 Mission
“To emerge as the leading company offering a comprehensive range of
life insurance and pension products at competitive prices, ensuring high
standards of customer satisfaction and world class operating efficiency, and
become a model life insurance company in India in the post liberalization period.”

2.1.2 Values
• Trustworthiness

• Ambition
• Innovation
• Dynamism
• Excellence

2.1.3 Key Milestones

A) Financial Year 08-09:
• Bagged the coveted personal finance award-Outlook Money NDTV
Profit “best Life Insurer 2008”.
• Ranked among global top three in terms of number of Million Dollar
Round Table (MDRT) members.
• CRISIL has reaffirmed its highest financial rating AAA/Stable to SBI
Life. In 2007 SBI Life became the first life insurer in India to receive
this rating from CRISIL, country’s leading rating agency.
• Recently ICRA, has assigned iAAA rating indicating highest claims
paying ability to SBI Life Insurance.
• Retains ISO 9001:2000 certificate for superior claim settlement

B) Financial Year 07-08:

• Rated as the ‘The Most Trusted Private Life Insurer’ according to a
survey conducted by Brand Equity in association with AC Nielsen
ORG-MARG and the Economic Times Intelligence Bureau.
• Became first life insurer in India to receive the highest financial
rating ‘AAA’ from CRISIL, the country’s best known rating agency in
• Ranked amongst global top five life insurance companies in the
number of MDRT members.

• Forayed into micro insurance with the launch of ‘Grameen Shakti’ in
Bhubaneshwar, Orissa for the economically underprivileged
sections of society.
• Received ISO 9001: 2000 certification for superior claim settlement
• Became the only domestic life insurer to achieve CMMI Level 3
certification for IT processes and software development

C) Financial Year 06-07:

• Second consecutive year of profitability.
• Leads Private Life Insurance Companies in Lives covered : 6.49
Million lives covered.

D) Financial Year 05-06:

• Becomes the first Life Insurer to make profits.

2.2 Products
2.2.1 Horizon- II
SBI Life - Horizon II is a unique, non participating Unit Linked Insurance
Plan in Indian Insurance Industry, where you need not to be a financial market
expert. This plan offers the flexibility of Unit Linked Plan along with Automatic
Asset Allocation which provides relatively higher returns on your money where as
increasing death bench.
Twin benefit of insurance cover and market linked returns profits provides
higher security to Hassle-free investment management of funds from inception to
maturity, Automatic Asset Allocation of funds, automatic rebalancing of funds at
yearly intervals, free of cost higher protection, to meet your family financial

It is a unique, non-participating Unit Linked Insurance Plan. As per the
plan and term chosen by you, SBI Life will invest the net premium amount into
each of the funds mentioned.

2.2.2 Maha Anand

SBI Life - Maha Anand is a simple & convenient unit linked plan, which
provides you insurance cover without any medicals.
Life begins afresh when you become a parent and when the child takes
that first step towards you, the moment is filled with cheer, enthusiasm never felt
before. This moment marks a new beginning in the child’s life and there’s no
looking back after that. The child keeps growing and so are his dreams,
aspirations which always aim to reach horizon and you want your child achieve
his/her dreams. But at the same time as a proud parent you also want to secure
their future against rising cost of education and other necessities.
Key Features-
• Twin benefit of market linked returns and insurance cover
• Simple Joining Process - No medical examination required
• Option to pay premium, as low as Rs 500 p.m.
• Choice of 3 fund options to choose from
• Flexibility to increase your investments, through Top-up Investment
• Flexibility through Switching and Redirection Options
• Liquidity through partial withdrawal’s
• Attractive Tax benefits under the Income Tax Act, 1961

2.2.3 Unit Plus- II

We at SBI Life understand the basic needs for pension plan and give you
financial strength to maintain your life style even after the retirement. SBI Life -
Unit Plus II Pension plan makes sure that you have regular income after you
retire and also helps you to maintain your standard of living.
This is a unit linked pension plan wherein the policyholder chooses an
investment period from 5 to 52 years for a vesting age between 50 to 70 years.

You can choose to pay either single premium or pay regular premium for the
entire policy term. Your contributions are invested into 5 fund options as per your

2.2.4 Unit Plus Child Plan

We at SBI LIFE understand you better and hence have developed SBI Life
- Unit Plus Child Plan to suit you and your needs best. This Plan is meant for
parents in the age group of 18-57 having a child between the age group of 0-15
Key Features-
• Market related returns to match increasing cost of education
• Peace of Mind by giving you triple benefits
• Loyalty units to celebrate your child reaching 18 years
• New Investment Fund (Equity Optimizer Fund) in addition to
existing funds.
• Pay Premium for a limited period and reap benefits over a long
• Flexible plan which adapts to your changing needs as and when
you want.

2.2.5 Pension plan

We at SBI Life understand the basic needs for pension plan and give you
financial strength to maintain your life style even after the retirement. SBI Life -
Unit Plus II Pension plan makes sure that you have regular income after you
retire and also helps you to maintain your standard of living.
This is a unit linked pension plan wherein the policyholder chooses an
investment period from 5 to 52 years for a vesting age between 50 to 70 years.
You can choose to pay either single premium or pay regular premium for the
entire policy term. Your contributions are invested into 5 fund option.
Key Features-

• Choice to invest & control four different funds as per your risk
• Choice to invest & control four different funds as per your risk
• Flexibility to choose between two options
• Pure Pension
• Pension cum Life Cover
• No medical required for Pure Pension, automatic acceptance
• Flexibility to increase regular contribution
• Top up payments: any amount, anytime
• Customize your plan by adding riders
• 15 days free look period

2.2.6 Smart ULIP

In the current volatile market scenario you need a plan which not only
protects your investment, but also enables you to get market related returns. SBI
Life - Smart ULIP is the perfect answer to your need, and will give you not only
Guarantee on select NAVs during the first seven years, but also gives you the
added attraction of participating in the market upside.
Key Features-
• Guarantee of the highest of select NAVs, during the first seven
years on maturity.
• Investment cum Insurance plan giving market related returns
• Convenience through shorter premium paying term, giving you a
choice between two premium paying terms (PPT)
• Power of more- Guaranteed Maturity NAV, continues beyond the
premium payment term.
• Innovation structured investment fund-‘Flexi protect Fund’

• Hassle free plan- we manage your investment, giving you
maximum opportunity for growth while protecting your investments
against adverse market conditions.
• Attractive Tax benefits under the Income Tax Act, 1961

2.2.7 Health Products

Financial planning is incomplete without planning health insurance. Due to
today’s hectic lifestyle, improper diet, lack of exercise we are at higher risk of
contingencies of untimely serious illnesses. Sudden health problems could have
deep hole in your pockets. Medical science has advanced by leaps and bounds
in the last few decades. There’s a definite need to cover for health insurance to
reduce the financial burden.
SBI Life Insurance features both individual and group products like:
1. Unit Linked Products- this is a single non participating product group that
meets both the financial as well as insurance needs.
2. Pension Products- these comprehensive plans help to meet your post
retirement financial needs.
3. Pure Protection Products- nobody can predict future. So, any time anything
can shatter one’s dreams. Pure Protection Products help to keep one safe and
secure during these trouble times.
SBI Life also offers some protection cum savings products and money
back scheme products. SBI also has products for brokers. These products take
inspiration from the endeavors of various industries and make your life easy.

2.3 Tax Benefits

SBI Life Insurance Company has outperformed ICICI Prudential Life
Insurance in terms of new business premium collection this year, according to
the data published by the Insurance Regulatory and Development Authority
(IRDA). Life Insurance Corporation (LIC) still retains the top rank among all the
insurers, with a market share of 61.88 per cent in the first two months (April-May)
of the present financial year. SBI Life has taken the second position, with Rs

783.94 crore new business premiums collected in this year, amounting to 9.06
percent of the market share. ICICI Prudential Life Insurance, which still has the
largest market share among the private life insurers as per capitalization and
number of lives covered, has slipped to the third rank, with a premium collection
of Rs 483 crore and a market share of 5.59 per cent up to May.
SBI life had collected Rs 546.34 crore in the previous year compared with
ICICI Prudential that had gathered Rs 951.76 crore. SBI Life Insurance has a
capital of Rs 2,000 crore and a paid-up capital of Rs 1,000 crore. SBI owns 74
per cent of the total capital with BNP Paribas Assurance holding the remaining
26 per cent.
According to figures made available by IRDA, LIC was on the top position
with a market share of 41 per cent on the new business premium collection in the
previous year. LIC was followed by ICICI Prudential, with 12.2 per cent market
share and SBI Life, with 8.9 percent. The insurance companies’ ranking is often
based on the new business premium coming out of the new policies that are
sold, though a large chunk of the money also comes from renewal premium.
Other leading life insurance companies, such as Bajaj Allianz Life, Max New York
Life and Reliance Life insurance, enjoy a market share of 3 to 4 per cent each. In
the previous financial year, when the global financial crisis unfolded, insurance
companies saw no growth in business when compared with the previous year.
This was primarily because of weak investor confidence and the flight to safety
that the investors had adopted after the equity markets came crashing down.
"All insurance advertising offers a solution after implicitly raising the fear of
death or uncertainty of retirement. There are 14-15 players in the market, all
saying more or less the same negative things. So we wondered, is there any
other way to reflect what we wanted," says Mr. Muralidharan. On the surface,
insurance is about death. But why should one insure? "It's to make sure an
individual, and then her or his dependants, live well. So, if insurance is portrayed
in this light, we can get a larger number of people to accept it," he adds.
The size of the life insurance market is Rs 11,323 crore. SBI Life, which
started operations in 2001, has a market share of 1.49 per cent in terms of

premium and 8.97 per cent in terms of number of people insured, says Mr.
Muralidharan. Old and major player LIC has 67 per cent in terms of lives insured
and a market share of 74.26 per cent. Insurance companies also face the
challenge of getting younger people to invest. Most people under thirty think they
are "indestructible," says Mr. Muralidharan. The ads are "unpalatable" and
"determine your death" and definitely discourage a lot of very suave, articulate
people from even contemplating insurance, so our campaign aims to "remove the
whiff of death" from it and make it a "happiness product", he says.

2.4 Project Profile

2.4.1 Eligibility For Recruitment of an Insurance Agent
Every person who has cleared higher secondary examination can become
an agent other than a minor or the person who is convicted in any court for crime
or any legal proceedings. Men and women both can work as an Agent. A single
person can be associated with other life insurance companies.
A training program is there to train a person who wants to become an
Agent. There is 100 Hrs. training program which can be done either with the
physical appearance in the class room or the interest basis. In the classroom
training the trainee has to be physically present in the training session. There are
difference sessions of training program. A trainee can attend any session
according to his comfort. The training period is of 25 days approx. If the trainee
does not have enough time to devote in the classroom training, then there is
another option left that is training on Internet.
On the basis of Internet the trainee has provided a login number along
with the password through which he operated his login and completed his
training as convenient. Each and every hour pass on the net under his login head
will be count on his account. The test for the training program is also on line. This
is only procedure to be an Insurance Agent.

2.4.2 Scope of Insurance Agent

In the present scenario the living standard is becoming higher and higher
every day. Every person who has a family to survive wants to provide his family
each and every possible comfortable thing. He wants his children to be a well
dressed, to be higher qualified in a well recognized school, colleges, institutes
and wants his children to go abroad for higher education. He wants to live a
luxury life full of pleasure.
To fulfill all of his needs he has to earn more and more. Any person can
be on a job at a time or can be on a business can’t fulfill his pleasure
requirement. There is a source through which he can make money in a legal way
that is insurance sector.
Becoming an insurance Agent provides him the legal source by which he
can earn money with his current status. It is the business in which you deal with
you personal contacts and can gain extra income. This business needs low
investment and not of much effort. It’s all depending on your social contacts and
your skills to convince people by helping them to suggest the product which
suited them the most.
As due to critical diseases, growing percentage of accident and fear of
financial crisis everyone wants to secure his or her future. Insurance sector plays
a vital role in assuring people about their future. As the scope of insurance
enhancing, the need of an insurance Agent who can guide the potential
customers is growing.
Being an insurance agent of SBI Life Insurance provides a legal mean to
earn money which protects a person from earning through an illegal source
which is harmful for society as well as him. For the youngsters it provides great
platform to prove them. On the basis of their performance they can be recruited
as unit manager.

2.4.3 Recruitment Process

The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations.

Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time. A general recruitment process is as follows:
1. Identifying the vacancy-The recruitment process begins with the human
resource department receiving requisitions for recruitment from any
department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
• Preparing the job description and person specification.
• Locating and developing the sources of required number and type of
employees (Advertising etc).
• Short-listing and identifying the prospective employee with required
• Arranging the interviews with the selected candidates.
• Conducting the interview and decision making
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process
i.e. the final interviews and the decision making, conveying the decision and the
appointment formalities.

Fig.2.1 Recruitment process

The recruitment procedure of life insurance is very easy. A person with

high educating and well experience can be recruited after a personal interview
and group discussion. After the training program is completed the Insurance
Agent has to appear for the pre-examination conducted by IRDA. As he clear the
exam he provides a license, which is the proof of a legalized insurance Agent,
which permits him to deal in his insurance business.

Steps in recruitment of Insurance Agents

• Approach to the likely person
• Appointment as per condition
• Discuss the topic
• Give the documents which includes:-
1. Prospectus of the company
2. Brochure
3. Company’s plan
4. Questionnaire

• Collect the document after its completion
• Forward it to project manager
• Feed it in the computer as the database
• Follow up as per conditions

Modes of Contact
• Personal Contacts
• References
• Phone Calls
• Guidance as per Unit Manager

Many big life insurance organizations use Internet as a source of
recruitment. E- Recruitment is the use of technology to assist the recruitment
process. They advertise job vacancies through worldwide web. The job seekers
send their applications or curriculum vitae i.e. CV through e mail using the
Internet. Alternatively job seekers place their CV’s in worldwide web, which can
be drawn by prospective employees depending upon their requirements.

Advantages of e-recruitment are:

• Low cost.
• No intermediaries
• Reduction in time for recruitment.
• Recruitment of right type of people.
• Efficiency of recruitment process.

The buzzword and the latest trends in recruitment is the “E-Recruitment”.

Also known as “Online recruitment”, it is the use of technology or the web based
tools to assist the recruitment process. The tool can be either a job website like, the organization’s corporate web site or its own intranet. Many big

and small organizations are using Internet as a source of recruitment. They
advertise job vacancies through worldwide web. The job seekers send their
applications or curriculum vitae (CV) through an e-mail using the Internet.
Alternatively job seekers place their CV’s in worldwide web, which can be drawn
by prospective employees depending upon their requirements.
The two kinds of e- recruitment that an organization can use is –
• Job portals – i.e. posting the position with the job description and the job
specification on the job portal and also searching for the suitable resumes
posted on the site corresponding to the opening in the organization.
• Creating a complete online recruitment/application section in the
company’s own website. Companies have added an application system to
its website, where the ‘passive’ job seekers can submit their resumes into
the database of the organization for consideration in future, as and when
the roles become available.
• Resume Scanners: Resume scanner is one major benefit provided by the
job portals to the organizations. It enables the employees to screen and
filter the resumes through pre-defined criteria’s and requirements (skills,
qualifications, experience, payroll etc.) of the job.

Job sites provide a 24*7 access to the database of the resumes to the
employees facilitating the just-in-time hiring by the organizations. Also, the jobs
can be posted on the site almost immediately and is also cheaper than
advertising in the employment newspapers. Sometimes companies can get
valuable references through the “passers-by” applicants. Online recruitment
helps the organizations to automate the recruitment process, save their time and
costs on recruitments.

Online recruitment techniques

• Giving a detailed job description and job specifications in the job postings
to attract candidates with the right skill sets and qualifications at the first

• E-recruitment should be incorporated into the overall recruitment strategy
of the organization.
• A well defined and structured applicant tracking system should be
integrated and the system should have a back-end support.
• Along with the back-office support a comprehensive website to receive
and process job applications (through direct or online advertising) should
be developed.

2.4.4 Sources of Recruitment

Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external sources.
The sources within the organization itself (like transfer of employees from one
department to other, promotions) to fill a position are known as the internal
sources of recruitment. Recruitment candidates from all the other sources (like
outsourcing agencies etc.) are known as the external sources of recruitment.


Internal Sources
1. Transfer: The employees are transferred from one department to
another according to their efficiency and experience.
2. Promotions: The employees are promoted from one department to
another with more benefits and greater responsibility based on
efficiency and experience.
3. Others are Upgrading and Demotion of present employees
according to their performance.
4. Retired and Retrenched employees may also be recruited once
again in case of shortage of qualified personnel or increase in load
of work. Recruitment such people save time and costs of the
organizations as the people are already aware of the organizational
culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and
Disabled employees are also done by many companies so that the
members of the family do not become dependent on the mercy of

External Sources
1. Press Advertisements: Advertisements of the vacancy in
newspapers and journals are a widely used source of recruitment.
The main advantage of this method is that it has a wide reach.
2. Educational Institutes: Various management institutes, engineering
colleges, medical Colleges etc. are a good source of recruiting well
qualified executives, engineers, medical staff etc. They provide
facilities for campus interviews and placements. This source is
known as Campus Recruitment.
3. Placement Agencies: Several private consultancy firms perform
recruitment functions on behalf of client companies by charging a
fee. These agencies are particularly suitable for recruitment of

executives and specialists. It is also known as RPO (Recruitment
Process Outsourcing)
4. Employment Exchange: Government establishes public
employment exchanges throughout the country. These exchanges
provide job information to job seekers and help employers in
identifying suitable candidates.
5. Labor Contractors: Manual workers can be recruited through
contractors who maintain close contacts with the sources of such
workers. This source is used to recruit labor for construction jobs.
6. Unsolicited Applicants: Many job seekers visit the office of well-
known companies on their own. Such callers are considered
nuisance to the daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable candidates
for the organization.
7. Employee Referrals / Recommendations: Many organizations have
structured system where the current employees of the organization
can refer their friends and relatives for some position in their
organization. Also, the office bearers of trade unions are often
aware of the suitability of candidates. Management can inquire
these leaders for suitable jobs. In some organizations these are
formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
8. Recruitment at Factory Gate: Unskilled workers may be recruited at
the factory gate these may be employed whenever a permanent
worker is absent. More efficient among these may be recruited to fill
permanent vacancies.

2.4.5 Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by
a mix of various internal and external forces. The internal forces or factors are
the factors that can be controlled by the organization. And the external factors

are those factors which cannot be controlled by the organization. The internal
and external forces affecting recruitment function of an organization are:

Factors Affecting Recruitment

Internal Factors
The internal factors i.e. the factors which can be controlled by the
organization are:
1. Recruitment Policy: The recruitment policy of an organization specifies the
objectives of recruitment and provides a framework for implementation of
recruitment program. It may involve organizational system to be
developed for implementing recruitment programs and procedures by
filling up vacancies with best qualified people.
Factors affecting recruitment policy
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.

• Recruitment costs and financial implications.
2. Human Resource Planning: Effective human resource planning helps in
determining the gaps present in the existing manpower of the
organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.
3. Size of the Firm: The size of the firm is an important factor in recruitment
process. If the organization is planning to increase its operations and
expand its business, it will think of hiring more personnel, which will
handle its operations.
4. Cost: Recruitment incur cost to the employer, therefore, organizations try
to employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.
5. Growth and Expansion: Organization will employ or think of employing
more personnel if it is expanding its operations.

External Factors
The external forces are the forces which cannot be controlled by the
organization. The major external forces are:
1. Supply and Demand: The availability of manpower both within and outside
the organization is an important determinant in the recruitment process. If
the company has a demand for more professionals and there is limited
supply in the market for the professionals demanded by the company,
then the company will have to depend upon internal sources by providing
them special training and development programs.
2. Labor Market: Employment conditions in the community where the
organization is located will influence the recruiting efforts of the
organization. If there is surplus of manpower at the time of recruitment,
even informal attempts at the time of recruiting like notice boards display
of the requisition or announcement in the meeting etc will attract more
than enough applicants.

3. Image / Goodwill: Image of the employer can work as a potential
constraint for recruitment. An organization with positive image and
goodwill as an employer finds it easier to attract and retain employees
than an organization with negative image. Image of a company is based
on what organization does and affected by industry. For example finance
was taken up by fresher MBA’s when many finance companies were
coming up.
4. Political-Social- Legal Environment: Various government regulations
prohibiting discrimination in hiring and employment have direct impact on
recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped etc. Also, trade unions play important role
in recruitment. This restricts management freedom to select those
individuals who it believes would be the best performers. If the candidate
can’t meet criteria stipulated by the union but union regulations can restrict
recruitment sources.
5. Unemployment Rate: One of the factors that influence the availability of
applicants is the growth of the economy (whether economy is growing or
not and its rate). When the company is not creating new jobs, there is
often oversupply of qualified labor which in turn leads to unemployment.
6. Competitors: The recruitment policies of the competitors also affect the
recruitment function of the organizations. To face the competition, many a
times the organizations have to change their recruitment policies
according to the policies being followed by the competitors.

Chapter – 3
Research Methodology
Title of the Study
Duration of the Project
Objective of Study
Type of Research
Sample Size and Method of Selecting Sample
Scope of Study
Limitation of Study


3.1 Title of the Study

“Recruitment Process in Insurance Company”. The study is showing
recruitment process of any candidate in insurance company. This research is
done at Sikar. This study also shows why people join insurance sector.

3.2 Duration of the Project

In June 2009, I have been assigned a project on recruiting process in
insurance company with special reference to SBI Life Insurance as a part of our
course curriculum. The duration of the research is approx 30 days.

3.3 Objective of Study

The objective of the recruitment process is to obtain the number and
quality of employees that can be selected in order to help the organization to
achieve its goals and objectives.
Following are other objectives of recruitment process-

1. Support the organization ability to acquire, retain and develop the best
talent and skills.
2. Increase the effectiveness of various recruiting techniques
3.4 Types of Research
I used a descriptive type of research. It is one which includes surveys and
fact finding, enquiries of different kinds. The major purpose of such research is
description of the state of affairs, as it exists at present.
Methodology or process involving in the research followed during the
course of summer training is as follows –
Collection of data: This is an important aspect in formulating the objective of
research process where the data is collected via two process: (i) Primary
Sources and (ii) Secondary sources

i. Primary sources- Where the data is collected primarily by
interviewing and personal observation and is original in nature and
accurate to the considerable extent.
ii. Secondary sources- Where the data is obtained from some
published and printed sources such as newspaper, magazines, and
websites and so on.

3.5 Sample Size and Method of Selecting Sample

To ensure complete representation the researcher identified target
responded through a stratified random sampling process stratified the population
into number of strata and sampling respondent is selected from each stratum.
The selection of respondent from each stratum was based on simple random
I have covered 100 employees.
1. Insurance employees
a) Unit Manager
b) Team Leader
c) Agents
2. Businessmen
a) Retail shops
b) Wholesaler
c) Family business
3. Students
a) Management students
b) Law students
4. Other Professions
a) Engineers
b) Doctors
c) Bankers





Fig.3.1 Sample size

Sampling is a process of obtaining a number of individuals taken a base for

the entire population since entire population cannot be asked about the
necessary objective upon which a questionnaire is put forth needed for the
responses to be derived for the purpose of generation of facts and customer
view point regarding their perception of particular product or services.
There are two type of sampling-
i. Random sampling- Random sampling is a process of selecting the
sample size randomly and no choice or preference to be made
about the selection of respondents for the market survey and
questionnaire to be put forth against him. Here, Random sampling
being adopted by me.
ii. Systematic sampling- It is a sampling where the limited number of
selected respondents is figured out based on some criteria so that

only those respondents can be asked for the purpose of filing

3.6Scope of Study
Every research is conducted to fulfill certain objectives and this objective
in turn fulfill some purpose and is of significance for one or more then one
party. This research is significant for:

3.6.1 To the student-

• This study provides the student a practical insight of various
activities and functions of the company.
• The will also be able to develop in depth knowledge of
Human Research sector.
• The study is also required for the partial fulfillment of the
requirement for the degree of M.B.A. as per the curriculum.

3.6.2 To the company -

• The study would help SBI to know the Employee`s attitude towards
the company.
• To know the latest trend of the company.

3.7 Limitation of Study

• The research area was restricted only within the Sikar city. This may not
reflect the exact position of the total market.
• Sample size was also so less, limitation of time means and resource
forced for small size.
• Questionnaire includes 16 questions, which affects the mentality of
respondents that is time consuming.

Chapter – 4
Facts and Findings
Market Survey
Role of the Development Agency


4.1 Market Survey

 Category of life insurance:-

60 51

20 16
P ro te c tio n o f T ax b e n e fit d e v ic e B o th
h u m an as s e t v alu e
ag ain s t u n c e rtain tyC A T E G O R Y

Fig.4.1 Category of life insurance

 Essentiality of life insurance :-



Yes No

Fig.4.2 Essentiality of life insurance

 Qualification for life insurance:-



33% Post graduate

Senior se condary


Fig.4.3 Qualification for life insurance

 Age qualification for life insurance :-



39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group


Fig.4.4 Age qualification for life insurance

 Causes of dissatisfaction :-


Low employment
Low earning / income

Low status
34% Huge capital investment

All of the above

Fig.4.5 Causes of dissatisfaction

 Career in life insurance :-



50 46


Fig.4.6 Career in life insurance

 Life insurance is noble service or not? :-


100 86



40 19
Ye s No

Fig.4.7 Life insurance is noble service or not?

 Life insurance as a career :-






Yes No

Fig.4.8 Life insurance as a career

 Growth of life insurance :-



40 13
Ye s No

Fig.4.9 Growth of life insurance

 Life insurance: public or private :-


80 74

40 31
Yes No

Fig.4.10 Life insurance: public or private

4.2 Role of the Development Agency

Due to the nature of the groups covered, SBI Life will be passing certain
administrative tasks onto the Development Agency. By passing on these tasks
the premium charged can be lower. These tasks would include:
• Submission of member data in a specified computer format
• Collection of premiums from group members
• Recording changes in the details of group members
• Disbursement of claim payments and the mortality rebate (if any) to group
These tasks would be in addition to the usual duties of a policyholder such as:
• Payment of premiums
• Reporting of claims
• Keeping policy holder information up to date

Chapter – 5
Analysis and Interpretation
Market Survey Report
Product Policy Queries


Analyzing of collected data- The data collected through market survey and
published sources are then processed to obtained necessary inferences and
findings for the purpose of achieving the objective as well as to derive
necessary conclusion. A considerable skill and knowledge is involved in
analyzing the data for the purpose of interpreting thereof.

Interpreting of data- It is the significant step where the data collected and
analyzed is interpreted in the forms of graphs and figures is depicted in the
report called project report.

Summarizing of data- Thereby necessary summary is prepared which is

essential in the project report of the summer training being done under an

5.1 Market Survey Report

 Category of life insurance

Protection of human asset value against uncertainty 51

Tax benefit device 38
Both 16

From the survey it was drawn that life insurance is more a protection of
human asset value against uncertainty (conferred by 51 respondents) where it is
a tax saving option (being accepted by 38 respondents).
Life insurance is a service involving both these prerequisites as depicted
by remaining 16 respondents.

 Essentiality of life insurance

Yes 78
No 27

It has been observed and applied as a Life insurance is an essential

service and should be applicable to every one, as favored by considerable 78
respondents where it is not essential to an extent by 27 respondents from the
summer training project survey by putting forth the set questionnaire.

 Qualification for life insurance

Post graduate 35
Graduate 59
Senior secondary 11

When further enquired about the qualification of respondents, it was found

that 57% of the respondents were graduates, 33% were post graduates and
remaining 10% were of higher secondary out of total 105 respondents.

 Age qualification for life insurance

18-25 age group 41

25 – 35 age group 37
35 – 45 age group 21
Above 45 age group 6

Further, the age qualification for agency recruitment, it was found that
39% respondents were belonging to 18 – 25 age group, 35% were belonging to
25 – 35 age group where as 20% to 35 - 45 age group and remaining 6% to
above 45 age group.

 Causes of dissatisfaction
Respondents had different views about the dissatisfaction from the
present status of working or occupation. Dissatisfaction has been depicted
in a table below and graphically above-

Low employment 24 Low earning 36 Huge capital investment 17

Low status 18 All of the above 10

 Career in life insurance?

Yes 59
No 46

When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every desire of their
life, 59 respondents agreed while 46 respondents said No and will see later
sometime in future. It has been depicted that life insurance sector should be
promoted at the wide extent as it contribute to the economy as a useful source
beneficial for both nation as well as its citizens.

 Life insurance is noble service or not?

Yes 86
No 19

Indeed Life insurance is a noble business as it provides a needful financial

support in the situation of fatal calamity where the family is deprived by the fact to
live in future and sustains their living. When surveyed about life insurance as a
noble service. 86 respondents agreed and believe that insurance is a bettering
service to human life and society as a whole where as 19 respondents show

 Life insurance as a career?

Yes 18
No 41

From the 59 respondents who agreed to know about the life insurance as
a career, 18 of them agreed to join HDFC Standard life insurance for agency and
come to the company fore more information whereas 41 still took time to think
and postponed to some future date. People are highly dissatisfied from the
earning, status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this agency for
life insurance would prove a boon.

 Is Life insurance industry growing?

Yes 92
No 13

From all 105 respondents, 92 agreed that life insurance sector is a

growing concern and will grow at a rapid pace in future where as 13 took as a
mere stagnant industry. Financial services are growing at a tremendous pace as
people are urging to make their investment in lucrative opportunities and
therefore life insurance sector is playing a vital role in educating the people to
make their investment which could secure their future, needs and living despite
some fatal calamity that might or might not occur.

 Agree with privatization of life insurance?

Yes 74
No 31

Among 74 respondents from 105 respondents favored the privatization of
the life insurance and perceive that the people of India will know be more aware
and knowledgeable with respect to life insurance than that in the past 50 years
with the working of LIC.

5.2 Policy Product Queries

1. What are the basic elements of Life Insurance?
The two basic elements to all individuals are
a. Risk coverage (i.e. Term Insurance)
b. Savings for future (i.e. Pure Endowment)

2. What is Term Insurance?

Term Insurance covers “Risk” and Risk means “Death”. Here a lump sum
amount is payable only if death occurs during a selected period. If the insured
survives till the end of the selected period, nothing becomes payable.

3. What is Endowment product?

The insurer will receive a lump sum amount either at death during the term or
at maturity of the term.

4. What is a Whole Life insurance product?

Whole life insurance risk covers the death of the insured, whenever it may
happen. It means that there is no fixed term under whole life insurance. Most
policies provide a dividend to the policy holder which helps with retirement.
There are two variations in the whole life insurance products-
a. Pure Whole Life Insurance: - where premiums are payable continuously
throughout the life of the insured till death. Risk coverage is for the entire

duration of life and the life insured amount is paid on the happening of the
death of the insured at any time.
b. Limited Payment Whole life Insurance: - where premiums are paid for a
limited and shorter period and the option of the insured or till death if
earlier. Risk coverage is however throughout the life of the insured.

5. What is a Guaranteed Surrender Value?

The policy can be surrendered for cash only after the premiums have been
paid for at least three years. The minimum surrender value allowed is equal to a
certain percentage of the total amount of premiums paid excluding the premiums
for the first year and all extra premiums or additional premiums for accident
benefits that may have been paid.

Chapter – 6


6.1 Strengths
SBI Life has a unique multi-distribution model encompassing
Bancassurance, Agency and Group Corporate. SBI Life extensively leverages

the State Bank Group as a platform for cross-selling insurance products. At
present SBI Life has over 400 branch offices in India.
We take pride in our track record of growth, financial solidity, ethical
practices, domain expertise and meritocratic culture. Join us for a rewarding and
an enriching career.

About SBI Life Insurance

• Bagged the most coveted personal financial services award – Outlook
Money NDTV Profit “Best Life Insurer” 2008.
• Ranks among Global Top Three at Million Dollar Round Table (MDRT).
• Has been assigned IAAA rating indicating highest claims paying ability, by
ICRA, one of the India’s leading rating agencies. This rating reflects SBI
Life’s fundamentally strong position and the prospect of meeting its
policyholder’s obligations as highest.
• Has been reaffirmed "AAA/Stable" rating, the highest financial rating by
CRISIL, India’s leading rating agency. Last year SBI Life became the first
insurance company to get the highest rating of ’AAA/Stable" from CRISIL.
This rating reflects highest financial strength to meet policyholder
• More than 40,000 insurance advisors work with SBI Life Insurance in
• SBI Life Insurance is known for qualities like trustworthiness, ambition,
innovation, dynamism and excellence in its area of specialization.
• The SBI Group owns more than 14,500 branches located across the
country of India.
6.2 Weakness
1. LIC is prevalent and sustains even today a major source of
2. Low number of offices and network and number of life insurance

3. Lack of knowledge and expertise.

6.3 Opportunities
1. Life insurance has captured its mere15 – 20% growth
therefore a wide open untapped market is open to the company to
develop, grow and measure its success.
2. Still the numbers of companies are few and company has
every capability to grow and forward its performance areas to the

6.4 Threats
1. People are hesitant to invest and put their hard earned
money to the private life insurance company with the fear of getting
2. Belief towards LIC as it is a government corporation phobia
is continue to surmount the people of India despite lots of flaws and
development and liberalization of life insurance.
3. Alternative financial services such as mutual fund, banking
services, share and securities also pose problems and threats to
the working of the life insurance sector.
4. Illiteracy and unemployment also pose threat.
5. Rising real estate industry also pose threat as people are
investing a bulk of their money over to that industry.

Chapter – 7


Summer training is a best example for a trainee to learn about the
company working, corporate culture under which is operating the functions. SBI
life insurance company under which I gained a significant knowledge with respect
to life insurance, its importance and applicability as well as undertook the task to
recruit capable life insurance advisors which is conducive for the company to
grow with more prosperity. What I taught in the management institute utilized
them fruitfully leading to the best advantage to the company and to the best
experience for mine.
In all Public Service jurisdictions, new approaches to recruitment are being
used. In many territories, the strategies are manual but, as automated methods
become more pervasive, those mechanisms that support its use will assume
greater popularity.
Whatever the strategies selected for use, the objective is to recruit the
most qualified, committed individuals into the organizations and ensure that the
provision of government services to the public is timely and effective, that the
goods are of consistent high quality and that the organizations achieve the
objectives for which they have been established.
Life insurance is a noble service which is very important for every citizen
to learn and realize its importance because this is the only source which can
remain the status where one is with the family bread earner and ever when he is
With the growing financial sector I would like to opt this industry for my
future career advancement and as an opportunity to service this industry.

Chapter – 8
Recommendation and Suggestions


Following are suggestions made for the benefits and augmentation of the
sound working of the company –SBI life insurance
1. Need to train and develop life insurance agents with more
comprehensive knowledge and skills to counter every queries of
the customer.
2. It is suggested that company should not left any stone
unturned towards sound advertisement and promotional measures
on every section whether it is printed, media or air via radio.
3. It is also suggested that skilled management graduates need
to be places on sales and marketing of financial services that can
render their best ideas for the accomplishment of the company
goals and objectives to the best extent.
4. Also, care need to be taken that every customer’s grievance
should be met with delight whether before purchase or after sales.
5. There should be an expansion measure for more offices and
location of more centers for offices of the company is established
sop that company may grow its network.
6. Life insurance Products should be made flexible so as to suit
every section of society.

Following are suggestions made for the benefits and augmentation of
the sound working of the company –SBI life insurance:

1. Need to train and develop life insurance agents with more

comprehensive knowledge and skills to counter every queries of the

2. It is suggested that company should not left any stone unturned
towards sound advertisement and promotional measures on every section
whether it is printed, media or air via radio.

3. The advisors should be made aware and educated so that they

can extend their services not only in terms of collection of premium checks
from the customer but also to educate them about the insurance and the
latest nontraditional plans.

4. All the company should come out of a unit link product that should
aid every selection of the society.

5. It is also suggested that skilled management graduates need to be

places on sales and marketing of financial services who can render their best
ideas for the accomplishment of the company goals and objectives to the
best extent.

6. Also, care need to be taken that every customer’s grievance

should be met with delight whether before purchase or after sales.

7. There should be an expansion measure for more offices and

location of more centers for offices of the company be established sop that
company may grow its network.

8. Life insurance Products should be made flexible so as to suit every

section of society.


Q.1. What do you mean by life insurance?

a) Protection of human asset value against uncertainty 
b) A sum received after death 
c) Both 

Q.2. Do you think life insurance is essential for every one?

a) Yes 
b) No 

Q.3. What is your qualification?

a) Post graduate 
b) Graduate 
c) Senior secondary 

Q.4. Do you come under:

a) 18-25 age group 
b) 25 – 35 age group 
c) 35 – 45 age group 
d) Above 45 age group 

Q.5. Would you like to know about a career in life insurance advisor ship
where you can fulfill every desire of your life?
a) Yes 
b) No 

Q.6. Do you perceive that life insurance business is a noble service
oriented business?
a) Yes 
b) No 

Q.7. Would you like to become or opt for life insurance advisor under
esteemed and prospering organization SBI Life insurance?
a) Yes 
b) No 

Q.8. Do you agree that the life insurance business is a growing industry
and will grow and rapid pace in future?
a) Yes 
b) No 

Q.9. Do you favor the privatization of life insurance by the Government

where a significant number of companies now in the market for life
insurance to the customers with the alliance of multinationals?
a) Yes 
b) No 

1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………

Name: - ………………………………………………………………
Location: - ……………………………………………………………

Occupation: - …………………………………………………………


1. Application for insurance: This is the form on where you

state information and answer questions from the insurance company about
yourself and your history. This application along with information from a
medical examination, if taken, from your physicians, any hospitals you may
have visited and investigation are what's used by the insurance company to
decide whether or not to offer you life insurance and at what rate.
2. Accident Benefit: A rider or an add-on with a life policy. It
compensates a policyholder in the event of death or injury by accident.
3. Annuity: An investment option that makes a series of regular
payments to an individual in exchange for a premium or a series of premier.
4. Appreciate: To grow in value
5. Asset: Everything owned or due to a person
6. Asset allocation: How your investments are spread across
various asset classes
7. Beneficiary: The person(s) named in the policy to receive the
life insurance proceeds upon the death of the insured.
8. Bond: It is like an IOU. By buying a bond you loan money to
a company, a municipality, state or the Central Government.
9. Bonus: The amount paid as return in a ‘with-profit’ policy.
The bonus, expressed as a percentage of the sum assured, is generally
declared every year. The amount is linked to the profits earned by the insurer.
Depending on the time of withdrawal, there are two kinds of bonuses –
reversionary and cash. A reversionary bonus can be encashed only on
maturity of the policy; a cash bonus can be withdrawn when declared.
10. Budget: It is a tool used to monitor and control expenditures
and purchases.

List of Figures:

S. No. Title Fig. No. Page No.

1. Recruitment process Fig.2.1 26

2. Sample size Fig.3.1 38

3. Category of life insurance Fig.4.1 41

4. Essentiality of life insurance Fig.4.2 42

5. Qualification for life insurance Fig.4.3 42

6. Age qualification for life insurance Fig.4.4 43

7. Causes of dissatisfaction Fig.4.5 43

8. Career in life insurance Fig.4.6 44

9. Life insurance is noble service or not? Fig.4.7 44

10. Life insurance as a career Fig.4.8 45

11. Growth of life insurance Fig.4.9 45

12. Life insurance: public or private Fig.4.10 46


Following are sources which helped me during my summer training-

• KOTHARI C.R.: Research Methodology Management, 3rd Edition
• KOTLER PHILIP: Marketing Management” 11th Revised edition, 2002
• GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001
• Kotler Philip : Marketing Management, Prentice Hall of India, New Delhi
• Mathew M.J. : Insurance, RBSA Publishers Jaipur
• Handa Sunil : Insurance, Sheel Write Well (P) Ltd., Jaipur
• K. Aswattappa : Human Resource Management


• India Today
• Business World
• Business Economics
• LSE’s Magazine


• Websites-


• The Economics times
• The Hindu
• Times of India
• Business line
• D.N.A


• IRDA annual report, 2006-07and 2007-08

• Manual of Insurance by Bharat Law House