CERTIFICATE

This is to certify that MONU KUMAR, ROLL NO.- 16, EXAM ROLL NO.10BC3290678,DEPARTMENT OF OMSP,

DORANDA COLLEGE, RANCHI the project work entitled INSURANCE OPERATION was OMSP-III, Session 2009-12 under my guidance of Mr. CHANDAN KUMAR. This work was carried by her in partial fulfillment of the requirements for the award of OFFICE MANAGEMENT AND SECTRATIAL PRACTICE.

. CLASS TEACHER

INTERNAL

. EXTERNAL

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ACKNOWLEDGEMENT

We would like to thank Mr. Chandan Kumar, for giving us the opportunity to present this project report on INSURANCE OPERATION. Without his constant guidance and support this project would not have been a success. We would also like to extend our thanks to all our faculties whose guidance made it easier for us to complete this project. We would like to thank all my group members without whose constant hard work it would have been impossible to make this project. We would also like to thank our classmates who supported us throughout this project work.

SUBMITTED BY: MONU KUMAR OMSP- III ROLL NO.-16 EXAM ROLL NO.- 10BC3290679 SESSION 2009-2012

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PREFACE

The intention of this short work is to introduce the student of life insurance to the range and complexity of issues that pertain to the management and development of a life insurance company and to equip insurance company managers with a ready reference to the fundamental aspects of those facets and disciplines of the business with which they may not be familiar. Much material on life insurance subjects is available to the specialised reader. The aim of this book is to reach those with limited knowledge of the industry and to provide a comprehensive picture of the operation, management and development of a life insurance company as a whole. Insurance managers often rise to levels of considerable seniority before having to confront the details of disciplines and issues with which they need to be competent. This work seeks to impart succinct insights into the central issues of each of the disciplines applied to the management of a life office in such a way as to dispose of the clutter which often surrounds the experts understanding and yet lose little of the key ingredients required for a rapid assimilation of the subject. The book recognises that some readers may merely wish to dip into it from time to time to refresh their insight into the essence of a particular aspect of life office

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management. It also affords a logical progression of topics for those who wish to embark upon a more complete and systematic study of the subject. Starting with the history of the industry, progress is made through a course that might often be followed during the establishment of a new life office. First the essential nature of insurance is dealt with. This is followed by an exposition of the fundamental types of life insurance contracts, limiting discussion to the major categories of products only. The almost infinite permutations and variations of product that have emerged across the globe have not been dealt with but one hopes that having mastered the first principles, a more ready understanding will be obtained of those permutations that readers may subsequently come upon. Product construction is followed by a discussion of the methods by which they may be distributed to clients and this leads naturally to an exposition of all the activities which follow the sale of a life insurance policy: Insurance law, life office accounting, the emergence of actuarial surplus, the principles of life office taxation, reinsurance arrangements and their significance, the investment of life insurance funds and the payment of claims. Each is dealt with comprehensively and yet compendiously and each is accorded appropriate significance in the Summary that appears at the end of every chapter.

EXECUTIVE SUMMARY

Insurance sector in India is booming but not to level comparative with the developed economics such as Japan, Singapore etc. Also liberalization of insurance sector has provided huge self employment opportunities. While doing a live project at HDFC Standards Life Insurance Company, Vashi branch I observed that sales Development Managers were facing some serious problems regarding retention of their financial consultants. The HDFC Standards Life Insurance Company as well as other life insurance companies are facing this problem. To find the reasons, the main objective of the study is kept as, to analyses the actual recruitment and retention process in Life Insurance Companies and how far this process confirm to the purpose underlying the operational aspect of the industry. Inadequate information regarding the work of Agents/ Financial consultants / Agent Advisors by recruitment consultant is the main reason for high rate of attrition in insurance industry. The study is proposed to find out a process that will help insurance companies to keep its attrition rate minimum. In this study, I analyzed recruitment process of three different companies viz. Life Insurance Corporation of India,
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HDFC Standards Life Insurance Company and Max New York Life Insurance Company. After analysis I came to the conclusion that some defects in recruitment process are the reason of high attrition. This project work is a sincere attempt to collect the information stating the various reasons for attrition and suggests the useful measures for retention.

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CONTENT SL NO.
1. 2. 3. 4. 5. 6. 7.

TOPIC
CERTIFICATE ACKNOWLEDGEMENT PREFACE EXECUTIVE SUMMERY INTRODUCTION INDUSTRY ANALYSIS INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

PAGE NO.
ii iii iv vi 1 2 4

8. 9. 10. 11. 12. 13. 14.

MAJOR PRIVATE PLAYERS IN INDIA NEW ENTRANT IN INDUSTRY INSURANCE FINDING CONCLUSION SUGGESTION BIBLIOGRAPHY

5 8 9 25 27 28 29

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