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PROJECT REPORT ON
STUDY OF HR POLICIES
AT
LIFE INSURANCE CO-OPERATION
OF INDIA,
IN PARTIAL FULFILLMNET OF
MASTER IN BUSINESS ADMINISTRATION
( UNIVERSITY OF PUNE)
SUBMITTED BY
MISS KHUSHBU RANI SINGH
MBA-II(HRM)
PROJECT GUIDE
MRS. KHAIRE MAAM
ACKNOWLEDGEMENT
This report entitle STUDY OF H.R. POLICIES of organization.It is the
outcome of summer internship training at Life insurance cooperation of
India
I wish to express my gratitude to Mr.
For providing me an opportunity to carry out my summer project in this
esteemed organization.
This report is the result of contribution,guidance and co-operation received
from all the executive of various department of LIC COMPANY DHULE.,our
college authority and my family members also both implicitly and
explicitly,never can this report can be claimed as individual effort.
I profusely thanks my project guide MRS KHAIRE MAAM for her guidance
through out the project work
I owe my sincere thanks to all those who helped me during my summer
internship project work and took special efforts to see that I could learn as
much as possible during the visit. Finally work alone cannot express and also
thanks to everyone who gave their valuable time,skill and enthusiasm and to
all who have offerd support and understand to make this project work a
success.
CONTENTS
CHAPT
ER
TOPICS
1
1.1
1.2
1.3
1.4
1.5
Introduction
2
2.1
2.2
2.3
3
3.1
3.2
3.3
3.4
3.5
3.6
Related theory
4.1
4.2
Recommendations and
suggestion
6
6.1
6.3
Annexure
Object of project
Objective of study
Methodology of study
Scope of study
Limitations of the study
Reference
Appendices
PAGE NO.
DECLARATION
I Khushbu rani singh hereby declare that the project report entitled TO
STUDY H.R. POLICIES .
Is a genuine work done at LIC of India .The project is undertaken as a part of
research project accomplished for the fulfillment of the MBA.
The matter embodies in this project report has not been submitted else where
by anybody for the award of any other degree or diploma
Date:
Place:
CHAPTER: 1
INTRODUCTION
To design the new h.r policies and procedure for LIC Of India.
1] PRIMARY DATA
2] SECONDARY DATA
PRIMARY DATA
Discussions, informal interview of the above mentioned personnel revealed
lot much data,which was first hand. The data collection method can come out
with good quality data and also the non- verbal communication here plays an
important roles as the information provider reveals the information to you in
personal.
In this project data is collected by questionaries survey.
SAMPLING PLAN
Sample technique : convenience sampling
Sample size : 60
Field of study :
Durations : 60
SECONDARY DATA
This is the data , which is provided by the above mentioned personnel but
the main point of differentatios is about the way of delivering the data. This
data is already collected and stored by the organization and made available to
its employee as well as to the outsiders for their official use and with prior
permission of the organistion.
This data is basically about internal HR policies and strategies which is been
developed and published by the organization itself. The other source are
mainly interacting and reference book on HRD.
So this is the basic rsearch methodology used in this report. The primary and
secondary data both are important because they both have there pros nad
corns,but the proper combination of these two type of data can be useful to
this project work.
CHAPTER: 2
2.1) HISTORY
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves
against loss and disaster existed in primitive men also. They too sought to
avert the evil consequences of fire and flood and loss of life and were willing
to make some sort of sacrifice in order to achieve security. Though the concept
of insurance is largely a development of the recent past, particularly after the
industrial era past few centuries yet its beginnings date back almost 6000
years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established
during that period were brought up with the purpose of looking after the needs
of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian
lives. But Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them. Bombay Mutual Life Assurance
Society heralded the birth of first Indian life insurance company in the year
1870, and covered Indian lives at normal rates. Starting as Indian enterprise
with highly patriotic motives, insurance companies came into existence to
carry the message of insurance and social security through insurance to
various sectors of society. Bharat Insurance Company (1896) was also one of
such companies inspired by nationalism. The Swadeshi movement of 19051907 gave rise to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in 1906. In 1907, Hindustan Cooperative Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)
were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate
tables and periodical valuations of companies should be certified by an
actuary. But the Act discriminated between foreign and Indian companies on
many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it
rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance Act 1938 was
the first legislation governing not only life insurance but also non-life
insurance to provide strict state control over insurance business. The demand
for nationalization of life insurance industry was made repeatedly in the past
but it gathered momentum in 1944 when a bill to amend the Life Insurance
Act 1938 was introduced in the Legislative Assembly. However, it was much
later on the 19th of January, 1956, that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian companies
and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of
the companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of India
passed the Life Insurance Corporation Act on the 19th of June 1956, and the
Life Insurance Corporation of India was created on 1st September, 1956, with
the objective of spreading life insurance much more widely and in particular to
the rural areas with a view to reach all insurable persons in the country,
providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
its corporate office in the year 1956. Since life insurance contracts are long
term contracts and during the currency of the policy it requires a variety of
services need was felt in the later years to expand the operations and place a
branch office at each district headquarter. Re-organization of LIC took place
and large numbers of new branch offices were opened. As a result of reorganisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 crores
of New Business in 1957 the corporation crossed 1000.00 crores only in the
year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark
of new business. But with re-organisation happening in the early eighties, by
1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 109 divisional
offices, 8 zonal offices, 992 satallite offices and the Corporate office. LICs
Wide Area Network covers 109 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some Banks and Service
providers to offer on-line premium collection facility in selected cities. LICs
ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its
own past records. LIC has issued over one crore policies during the current
year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding
period of the previous year.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring insurance
into existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible and to
help the people in providing security to their families.
Mission
"Explore and enhance the quality of life of people through
financial security by providing products and services of aspired
attributes with competitive returns, and by rendering resources
for
economic
development."
Vision
"A trans-nationally competitive financial
significance to societies and Pride of India."
conglomerate
of
Life Insurance
CHAPTER : 3
RELATED THEORY
Definition:
-FLIPPO
Defination of Policy
A policy is a statement or general understand ehich provides
guideline to the member of organisation for making decision in
respect to any course of action.
policies defined how the company with
stakeholder,employees,customer,suppliers distributors,and other
important group.policies narrow the range of individual discretion so
that employee act consistently on important issue.
-KOTLER
Planned formulation
Balanced
Written communication
Organisational
philosophy
H.R philosophy
Internal
factor
Policy Alternative
External
factor
Policy maker
Policy action
Review
Provided that every such member shall, when traveling by rail, be entitled to
travel by air-conditioned accommodation if such accommodation is available.
Daily allowance as admissible to an Officer in the highest grade of the
Corporation; and
The total duration of tour for which halting expenses are admissible
shall be calculated from the actual time or departure of the train or
flight from the place of residence of the Member by the last available
train or flight up to the time of the return thereto by the first available
train or flight after completion of official business.
(2) The traveling and daily allowances of an official member shall be governed
by the rules applicable to him for journeys performed on official duty; and in
case such official member is not in the service of the Corporation, the
Corporation shall make necessary reimbursement to the authority employing
such official
Proof of travel
The individual needs to submit proof of travel to his/her employer and also
keep copies for his or her own records. Such proofs are helpful at the time of
the audit of the tax return of the individual. Proof of travel could be, for
example, tickets, boarding passes, invoice of travel agent, duty slip etc
Grievance resolution
Disputes may arise when people work together . many conflicts arise out of
difference of understand whether between superior and employees or among
peers. Most dispute can be resolved informally in immediate work area.
Grievance procedure
(1) Any person who has a grievance against an insurer, may himself or
through his legal heirs make a complaint in writing to the Ombudsman within
whose jurisdiction the branch or office of the insurer complaint against is
located.
(2) The complaint shall be in writing duly signed by the complainant or
through his legal heirs and shall state clearly the name and address of the
complainant, the name of the branch or office of the insurer against which the
complaint is made, the fact giving rise to complaint supported by documents,
if any, relied on by the complainant, the nature and extent of the loss caused
to the complainant and the relief sought from the Ombudsman.
(3) No complaint to the Ombudsman shall lie unless:(a) the complainants had before making a complaint to the Ombudsman made
a written representation to the insurer named in the complaint and either
insurer had rejected the complaint or the complainant had not received any
reply within a period of one month after the insurer concerned received his
representation or the complainant is not satisfied with the reply given to him
by the insurer.
(b) the complaint is made not later than one year after the insurer had
rejected the representation or sent his final reply on the representation of the
complainant; and
(c) the complaint is not on the same subject matter, for which any proceedings
before any court, or Consumer Forum, or arbitrator is pending or were so
earlier.
Ombudsman to act fairly and equitably.:
(1) The Ombudsman may, if he deems fit, adopt a procedure other than
mentioned in sub-rule (1) and (2) of Rule 13 for dealing with a claim: Provided
that the Ombudsman may ask the parties for necessary papers in support of
their respective claims and where he considers necessary, he may collect
factual information available with the insurance company.
Removal of a member
(1) The Central Government may remove any member, who, in the opinion of
that Government, has so flagrantly abused in any manner his position as a
member as to render his continuance as a member detrimental to the public
interest.
(2) No member shall be removed under sub-rule(1) unless he has been given
a reasonable opportunity of showing cause against his removal.
Term of office of members1. An official member shall hold office during the pleasure of the
Central Government.
2. A non-official member shall hold office for a period of three 2A years
unless a shorter period is specified in the order of appointment.
3. An out-going member shall be eligible for re-appointment.
[3][3A] Office of Chairman : The Office of the Chairman shall be
whole-time]
Report
a.
b.
c.
d.
the accounts
GROUP
SIZE
SCALE OF COVER
MAX. LIMIT
OF COVER
10-49
50-99
100 &
more
Rate of
Interest
Below Rs. 25 lakhs
7.40%
7.55%
7.75%
7.95%
8.05%
8.10%
8.20%
Srno.
Options
No.of
respodents
Below 1 year
18
30
1 year-3 year
22
36.666666
3 year-5 year
10
16.666666
Above 5 year
10
16.666666
Total
Percentage
%
60
Sales
Below 1 year
1 year-3 year
3 year- 5 year
17%
Above 5 year
30%
17%
36%
Interpretation
From the above data and graph it is come to know that 90% of the
respondents are aware about the organizations policies and that of 10%
are not
2] Did you fully know about the companies policies before joining the
organisation?
srno
options No.of
respondents
Percentage
%
Yes
54
90
No
10
total
60
100
Chart Title
20%
YES
NO
80%
Interpretation
From the above data and graph it is come to know that 90% of the
respondents are aware about the organisations policies and that of 10%
are not .
3]
Srno
Options
No. of
respondents
Pecentage
%
1.
Satisfied
10
2.
Not satisfied
3.
Partially satified
Total
33
55
21
35
60
100
Chart Title
10%
satisfied
35%
Not satisfied
partially satisfied
55%
Interpretation
10% employees are satisfied with the management policies, 55% are not
satisfied and the remaining i.e 35% employee are partially satisfied with
the policies which are conducted by the organization.
4]
srno
options
No.of
respondents
Percentage
%
Formal
48
Informal
10
Both
10
total
60
100
Formal
Informal
Both
Interpretation
The relationship between the employees in the organization is 80% formal
10% informal and the remaining 10% is for both i.e. formal and informal.
5]
srno
options
No. of
respondents
Precentage
%
yes
57
No
total
60
100
95
Chart Title
20%
YES
NO
80%
Interpretation
95% of the employees are happy about their job profile and their job profile
and that of 5% are unhappy.
6]
options
No.of
respondents
Percentage
%
Yes
10
No
50
83.33333
total
60
100
16.66666
Chart Title
20%
YES
NO
80%
Interpretation
17% of the employee are availing about the medical facilities of the
organization but 83% are not and those who are not availing, it was said by
them that at the time of interview they were not informed.
Srno.
options
No. of
respondents
Percentag
e
Monetary
39
Non.monetar
y
21
35
both
total
60
100
65
Chart Title
monetary
35%
non-monetary
65%
both
Interpretation
65% employees are saying that they are getting monetary types of reward
and the remaining 35% are saying that they are getting non-monetary
types of reward.
8]
Srno.
options
Yes
27
No
33
55
60
100
Total
No.of
respondents
percentag
e
45
Chart Title
20%
YES
NO
80%
Interpretation
45% of the employees are satisfied with the salary structure provided by
the organization and 55% are not satisified
Srno.
option
No.of
respondent
pecentag
e
yes
15
25
no
45
75
total
60
100
Chart Title
20%
YES
NO
80%
Interpretation
25% of the respondents are satisfied with the leave policy but 75% of the
respondents are not satisfied which is provided by an organisation
10]
Srno.
Option
No.of
respondent
Percentag
e
1.
Yes
17
2.
No
43
71.6666
Total
60
100
28.3333
Chart Title
20%
YES
NO
80%
Interpretation
28% respondent is happy with the allowances given by an organization and
72% are not happy.
Options
No. of
respondents
Conveyance
60
HRA
10
Travel
60
Health &saftey
Child education
&hostel
15
60
50
40
30
20
10
0
Interpretation
From the above data and graph it is come to know that all the employee
are getting conveyance and travel allowance but not all the employee are
getting HRA , Healthy and Saftey and child Education and hostel allowance.
Option
No.of
respondents
Yes
12
No
48
Total
60
Percentage
%
20
80
100
Chart Title
20%
YES
NO
80%
Interpretation
20% employees are getting bonus and special allowance from the
organization and 80% are not getting any bonus or special allowance.
13]
sr no
Option
No. of
respondents
1.
Resignation
48
2.
Termination
15
3.
Dismissal
4.
Death
10
5.
Completion of legal
bond
50
45
40
35
30
25
20
15
10
5
0
Interpretation
The separation practices exercised by the organization for detaching the
employee are mostly done through resignation.
FINDINGS
The organization follows same HR policies and procedure in all over the
India and it is as per the rules and regulation of the act.
Most of the employee are not satisfied with the leave policy.
Most of employees are not happy with the salary structure which is
provided by the organization
CONCLUSION
As this organization is having its branches all over the India so,the H.R.
policies and procedures are followed same in all over the India.
H.R. policy provides more specific guideline for making decisions on matters
relating to management of human resource. The H.R policies are followed in
all over the Indian organization
But, in this organization most of the employee are satisfied by management
policies but there are some employee which are not satisfied regardingAllowance, salary structure,leave policy etc. and the management must satisy
them by providing allowances like maternity allowance to the female
employee, medical allowance,etc
CHAPTER : 5
RECOMMENDATIONS AND SUGGESTIONS
5.1) suggestions
The organisation must have to prepare a new salary structure for their
employee by which the employee will become happy and will more
concentrate on their work which will be helpful to increase the
productivity of the organisation.
CHAPTER : 6
ANNEXURE
Reference
Human resource management :
WWW.GOOGLE
HR.COM
Salary structure
Employee Id
Name
:
Department
Designation
Date of joining
PF Account
Days Worked
ESI
Account no.
no.
Bank Acct/Cheque no . :
Fathers/husband,s name :
Earned leave
leave
casual
Earning
Deductions
Amount
Amount
Basic Pay
Dearness Allowance
Provident Fund
Medical Allowance
Professional Tax
Overtime
House Rent Allowance
Conveyance Allowance
Total Earnings
Previous Balance
Total Deductions
IIet Pay (Rounded)
Employeres
Date
Name
Department
Location
Employee level:
Date
From
:
:
Purpose of visit
To
Flight/train/other
No.
ETD
Other
requirement
ETA
CAR
HIRE
HOTEL
STAY
Requested by :
by company/self
Approval of hr dept.
accounts dept.
------------------------------------------------------------(signature)
(signature)
Amount
(Per Day)
Total Amount
Mode of travel :
Approval of director/RSM
------------------------------------(signature)
Tickets brought
Approval
1.
Proposal No
2.
Date of
3.
Commencement
Name of Grantees
5.
Registered Address of
Grantees
Name of the scheme
6.
Term
7.
Member
8.
Annual Renewal
9.
Beneficiary
10.
Eligibility
11.
Entry Date
12.
Normal Retirement
13.
Date
Sum Assured
14.
Death Benefit
15.
16.
Resignation /
Retirement
Benefit
Policy Account
17.
Interest Payable
18.
Charges
4.
rules
Entry Date shall mean (a) in relation to original
Members
the Annual Renewal Date and (b) in relation to new
Members admitted to the Scheme after the Annual
Renewal
Date, the 1st of the month or Annual Renewal Date
which is
coincident with or immediately next follows the date
on
which they become eligible.
The date on which Member attains the age of ---------years.
Lumpsum amount (i.e. Life Cover Benefit) payable on
death
in respect of a Member.
Sum Assured in respect of a Member under this plan
as
mentioned in Schedule- III along with Gratuity Benefit
as
per scheme rules
Gratuity Benefit as per scheme rules
19.
Bulk Exit
20.
Surrender
21.
Market Value
Adjustment
POLICY DOCUMENT
Gratuity
FORMULA to calculate Gratuity
( last drawn salry *15*no.of years worked in service )/26.