CHAPTER-1

INTRODUCTION
COMPANY PROFILE

Bank of India and Union Bank of India, two leading Public Sector Banks in India and the Daiichi Life Insurance Company Limited, a leading Japanese Company in the Life Insurance
market, have floated a Joint Venture Company, "Star Union Dai-ichi Life Insurance Co. Ltd." for
undertaking The Company, has been incorporated / registered with the Registrar of Companies,
Maharashtra on 25th September, 2007. The Company has been issued the license for undertaking
life insurance business in India by Insurance Regulatory and Development Authority (IRDA) on
26.12.2008. The Company has best insurance, IT, finance and investment resources. The
Company has a capital stake of 48% by Bank of India, 26% by Union Bank of India and 26% by
Dai-ichi Life Insurance Co.Ltd. The Company has authorized capital of Rs. 250.00Crores.
Star Union Dai-ichi Life Insurance Co. Ltd., with the strength of the domestic partners in the
Indian Financial Sector coupled with the Dai-ichi Lifes strong domain expertise is expected, to
be

strong

player

in

the

Indian

Life

Insurance

market

in

short

time.

Bank of India and Union Bank of India have a strong nationwide network of more than 6900
offices, which shall provide distribution outlets with a wide reach. More than 48 million strong
banking customer base of the two banks provides ready scope for cross selling of insurance
products. The two banks have strong brand equity, and command high level of trust among their
customers and people at large. Additionally the Regional Rural Banks sponsored by the two
1

banks provide more than 1500 branches to tap the life-insurance business in the rural areas. Daiichi Life Insurance Co. Ltd. is a leading player in the Life Insurance Segment in Japan and is one
of the top ten Life Insurers in the world and the second largest Life Insurance Company in
Japan. Established in 1902, it has more than a century of experience in Life Insurance business.
It has sound product knowledge, sharp asset management skills, and strong operational
capabilities to manage Life Insurance business, which make Dai-ichi Life the best insurance
Star Union Dai-ichi Life Insurance Company Ltd. is also committed to providing insurance to
rural and weaker / social sectors. Both the domestic partners are in the process of implementing
Govt. of Indias initiative of Financial Inclusion and their pan India network of branches gives
the

Company

natural

edge

in

catering

to

these

sectors

effectively.

With the strong brand and commitment of the partners, Star Union Dai-ichi Life Insurance
Company Ltd. promises to be a new star on the horizon of the Indian life insurance business,
promising value to all stakeholder.

1.1 SUD Life Insurance :

Corporate Office:
Star Union Dai-ichi Life Insurance Company Limited,
11th& 16th Floor, Raghuleela Arcade,
IT park, Sector 30 A, Opp. Vashi Railway Station,
Vashi, Navi Mumbai 400703
Email id: customercare@sudlife.in
Tel. No. 022-39546200

FEW REGIONAL OFFICES:

Ahmedabad RO:

Bangalore RO:

Star Union Dai-ichi Life Insurance

Star Union Dai-ichi Life Insurance Co. Ltd.,

2

Co. Ltd.,

'KSHEMA HOUSE', 1ST Floor, No 33/1,

305,Shail's Mall, 3rd floor,

Above ICICI Bank, Near Passport Office,

Off CG Road, Behind Girish Cold

Lalbagh Road,

Drinks,

Bangalore- 560 027

Ahmedabad, 380009

Tel No. 080-22220/612/746/749

Tel.No. 079
30041500/02/03/04/05/06/08/09
Fax. No. 079 30041507
Bhopal RO:

Bhuwaneswar RO:

Star Union Dai-ichi Life Insurance

Star Union Dai-ichi Life Insurance Co. Ltd.

Co. Ltd.,

1st Floor, SAFFIRE,

SF 8 & 9, C Block, 3rd Floor,

N6/454, IRC Village,

Manasarover Complex, Opp.

Opp. Hotel Crown,

Habibganj Rly. Stn.,

Bhuwaneswar - 751015 (Orissa)

Hoshangabad Road, Bhopal 462016

Tel.No. 0674-3010946/47/50,0674-

Tel. No. 0755-

3018967/68/69/70

3921614/15/16/17/18/19/21/22/23
Chandigarh RO:

Chennai RO:

Star Union Dai-ichi Life Insurance

East India Chambers, 2nd Floor,

Co. Ltd.,

New No. 7, Valluvar Kottam High Road,

1st Floor, SCO 830 (FF),

Nungambakkam, Chennai - 600034 Tamil Nadu

NAC, Manimajra,

Tel. No.044-

Chandigarh - 160101

40140200/04/05/06/07/09/10//12/14/15/16/17/18/19

Tel. No. 0172-

Fax. No. 044-40140213

3056006/07/08/09/10/11/12/13/14/15

1.1.1 About Their Heritage:

SUD LIFE

SUD Life is committed to conducting its business with integrity and in

accordance with the laws and regulations to which its activities are subject. All
associates are expected to know and follow all SUD Life policies, procedures
and applicable law. Each topic covered in the Learning Centre contains a
Tutorial which is an extract of respective SUD Life policy, as is currently
applicable.
You are required to undergo self learning by going through assigned content on
the above mentioned topics/ policies of the company and prepare yourself for
undertaking an online test, details of the same would be communicated
separately.
If you encounter a potential conflict between any Company policy and local
practice, you must bring the matter to the attention of Head Legal and
Compliance

&

Head

Human

Resources,

SUD

Life.

AMLPresentation
Employee Code of Ethics & Business Conduct Presentation
Fraud Awareness Presentation
ULIP Presentation

MEDIA COVERAGE:
Name of the
Sl.No Title

news paper/E-

Edition

Release Date

paper
Star Union Dai-ichi
1

Life achieves

Business standard MUMBAI

06/05/2015

breakeven in sixth year

Star Union Dai-ichi
Life Insurance
2

Company posts first

The Economic
Times

MUMBAI

06/05/2015

SUD A JOINT VENTURE OF BANK OF INDIA ,UNION BANK AND DAI-ICHI LIFE
JAPAN.

BANK OF INDIA

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was
nationalised along with 13 other banks. Beginning with one office in Mumbai, with a paid-up
capital of Rs.50 lakh and 50 employees, the Bank has made a rapid growth over the years and
blossomed into a mighty institution with a strong national presence and sizable international
operations. In business volume, the Bank occupies a premier position among the nationalised
banks.
The Bank has 4828 branches in India spread over all states/ union territories including
specialized branches. These branches are controlled through 50 Zonal Offices. There are 56
branches/ offices and 5 Subsidaries and 1 joint venture abroad. The Bank came out with its
maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008.
While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of
introducing various innovative services and systems. Business has been conducted with the
successful blend of traditional values and ethics and the most modern infrastructure. The Bank
has been the first among the nationalised banks to establish a fully computerised branch and
ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder
Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for
evaluating/ rating its credit portfolio. Presently Bank has overseas presence in 22 foreign
6

countries spread over 5 continents with 56 offices including 5 Subsidiaries, 5 Representative

Offices and 1 Joint Venture, at key banking and financial centres viz., Tokyo, Singapore, Hong
Kong, London, Jersey, Paris and New York

Contribution of foreign branches in the global business of the Bank as at 31.03.2014 is as under:

UNION BANK

Joint Venture Star Union Dai-ichi Life Insurance Co. Ltd.

www.sudlife.in
Union Bank of India is distributing Life Insurance products under corporate agency tie-up
with Star Union Dia-ichi (SUD) Life Insurance Co. Ltd. which is the Joint Venture of Union
Bank of India, Bank of India (two leading Public Sector Banks in India) & Dia-ichi Life
Insurance Co. Japan (a leading Japanese Company in the Life Insurance market).
The Company has an authorized capital of Rs. 250.00 Crores. Bank of India has a capital

stake of 48%, Union Bank of India has 26%, and Dai-ichi Life has the remaining 26%.
Star Union Dai-ichi Life, with the strength of the domestic partners in the Indian financial
sector coupled with Dai-ichi Lifes strong domain expertise, is expected to be a strong player
in the Indian Life Insurance market in a short time. The Company offers various products to
serve all strata of society and cater to the needs of different Customer Groups

HISTORY
Union Bank of India - an overview

A Glorious Past - A Brighter Future

Union Bank of India was established on 11th November 1919 with its headquarters in the
city of Bombay now known as Mumbai.
The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the
Father of the nation in the year 1921, and he said on the occasion:
"We should have the ability to carry on a big bank, to manage efficiently crore of rupees in
the course of our national activities. Though we have not many banks amongst us, it does not
follow that we are not capable of efficiently managing crore and tens of crore of rupees."

His prescient words anticipated the growth of the bank that has taken place in the decades
that followed. The Bank now operates through over 4000+ branches across the country. The
Bank's core values of prudent management without ignoring opportunities is reflected in the
fact that the Bank has shown uninterrupted profit during all 93 years of its operations.
8

Union Bank has been playing a very proactive role in the economic growth of India and it
extends credit for the requirements of different sectors of economy. Industries, exports,
trading, agriculture, infrastructure and the individual segments are sectors in which the bank
has deployed credit to spur economic growth and to earn from a well diversified portfolio of
assets.
Resources are mobilized through Current, Savings and Term Deposits and through refinance
and borrowings from abroad. The Bank has a large clientele base of over 49 million.

1.2.2 Industry Profile - Insurance and Banking

Wherever there is uncertainty there is risk. We do not have any control over uncertainties which
involves financial losses. The risks may be certain events like death, pension, retirement or
uncertain events like theft, fire, accident, etc.Insurance may be described as a social device to
reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number
of people associate themselves by sharing risks attached to individuals. The risks, which can be
insured against, include fire, the perils of sea, death and accidents and burglary. Any risk
contingent upon these may be insured against at a premium commensurate with the risk
involved. Thus collective bearing of risk is insurance
Insurance And Banking is coexisting financial institution while complementing and
supplementing each other. The Insurance Regulatory and Development Authority Act, 1999 have
created more opportunities for expansion of the markets. Industry serves the society in a very
effective manner.
Banking Institutions have got the opportunities to enter in insurance business while insurance
institutions have already under the autonomy of start banking business. Many non-banking
institutions have been opened, acquired funds and dissolved with public money at their
stakes.Since they were totally in the hands of private persons, the Government control became
ineffective. Banking institutions in India are mainly under the control of Reserve Bank of India.

People need insurance but they prefer investment over risk coverage although latter is more
important.
Indian mentality for insurance is very bleak people do not feel need of insurance although they
have dire-necessity for that. Insurance institutions in India have not considered forced insurance.
The voluntary-purchasing of insurance policies is rare phenomena. They prefer to go to bank
offices rather than going to insurance offices for getting risk coverage.The insurance institutions
procure the business through their agents who are the main link between people and the
company. The IRDA, Act is expected to mobiles insurance coverage and resources for
investment in the economy.The Government has assured that there would not be any
disinvestment in the LIC, GIC and their subsidiaries. Insurance Act, 1938, has not been sufficient
to regulate the insurance business in India.

1.2.4 Functional Areas of SUD LIFE

1.2.4.1HR Department
Introduction
This Human Resource Policy is designed to help the employees become familiar with the
policies and practices of the Company.
It contains all personnel policies and practices of the Company. The purpose of these policies
is to ensure fairness, transparency and consistency in the relationship of the Company with its
employees.

Scope of the Manual

10

The policies and practices set out in the HR Policy Manual will apply to all employees of the
Company across all the offices in India, unless it is expressly noted by this Policy manual or the
letter of appointment, or any other specific agreement.
The Revised HR policy comes into effect from 1st April 2015.

Updation of the Manual

The Company shall reserve the right to interpret, add, modify, amend or withdraw any or all
the policies from time to time as deemed fit, with or without prior notice. Such interpretation,
addition, modification or amendment shall be final and binding upon all employees.
Any subsequent additions and deletions will be notified to the employees in writing or through
Companys website or e-mail. All notifications will be recorded in the HR policy manual by the
HR Department.
The HR Department is responsible for custody and distribution of the Manual.
Any employee who has any suggestion regarding amendments, improvements or updation of
this manual, may send the same to the HR Department for review.

1.2.4.2IT Department
Policies
1.
2.
3.
4.
5.
6.
7.
8.
9.

End user Information Security acceptable usage Policy.

Disciplinary Action Policy.
End User Laptop Usage Policy.
Procedure for Information Asset Handling and Labeling .
Procedure for Media Management.
Procedure for User and Password Management.
IS_Quiz.
End User IT Asset Entitlement Policy
Email Usage Policy

1.2.4.3 Finance Department

Finance department doing the allocation of assets and liabilities over time under conditions of
certainty and uncertainty. Finance Department deals with
11

Financial Accounting
Reporting of key financial information to stakeholders
Performance Management reporting
Risk Management by set limits, risk management processes
Operating in a cost efficient manner
Provider of financial statements and management reports.

1.2.4.4Investments Department
The Investments departments role is to seek to attain superior returns while incurring prudent
levels of risk for General Board managed funds. It deal with
Team: Analysts and Fund manager headed by the CIO
Function: Earning higher returns on the investments and delivering the returns promised
and generate investment income

1.2.4.5Human Resource Management

The role of the Human Resource Department is to deal with management of people
within an organization. The Department is responsible for hiring members of staff and
ensuring that they perform to expectation.
Plan, develop, organize, implement, direct and evaluate the organization's human
resource function and performance.
Participate in the development of the corporation's plans and programs as a strategic
partner but particularly from the perspective of the impact on people.
Translate the strategic and tactical business plans into HR strategic and operational plans.
Evaluate and advise on the impact of long range planning of new programs/strategies and
regulatory action as those items impact the attraction, motivation, development and
retention of the people resources of the corporation.

1.2.4.6Marketing Management
Digital Marketing : Promoting the brand online and driving sales through the online
marketing.
Branding : Preparing marketing plans, advertising campaigns.
Channel Marketing : Establishing and maintaining the distribution systems companies
use to market, sell, and deliver products to customers.
12

 Product Marketing: Promotional materials and end customer interaction modules.

D irect M arketin g

A g en cy Sellin g

B an cassuran ce

Figure no.2

Bancassurance
It refers to selling of insurance products through global banks.

The IRDA is in discussion with insurers and bankers and wants to assess whether it
would be possible for banks to sell products of multiple insurance companies. This will
help banks with greater flexibility and provide a wider choice to customers.

Direct Marketing :
Incomesurance is the main product pushed through this channel.
Success marketing programs like contests to support business performance.
Insurance companies frequently use mailings as part of a direct marketing campaign.
Prospective customers receive postcards or letters encouraging them to contact the
company.

1.3 Vision and Values of SUD

1.3.1 Vision
To be the leading provider of wealth management, protection and retirement solutions that meets
the needs of our customers and adds value to their lives.
13

1.3.2 Mission
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.

1.3.3 Values
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims
Customer-friendly: Advice and support in working with customers and partners
Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders
and the community at large.

1.4Products of SUD LIFE

SUD LIFE is providing various insurance policies for the commonwealth of the people and its
customer in particular. The various insurance policies provided by the company are:
Individual Products

14

A Traditional Protection-cum-Saving Life Insurance Plan

Life has always been the way you wanted it to be. Even to the finest details, you know what you
want. You live in today but are constantly shaping your future. Thinking ahead, you are the
maker of your days. Today and tomorrow.Presenting SUD Life's Elite Assure Plan, which
combines savings and protection, to give you the freedom to build a supplementary future
income so that your tomorrow can be just like today.
Flexibility to choose your future income

15

CORE BENEFITS
ASSURED BENEFITS:

Financial stability to your family in case of your unfortunate demise

Income tax benefits under section 80(C) & 10(10D)#
*Lump sum paid as guaranteed maturity benefit- 40 X monthly income for Plan Option '5-5-5' &
60 X monthly income for Plan Option '7-7-7' paid at the end of policy term

How does SUD Life's Elite Assure plan work?

Choose the monthly income for your future and a plan option-

16

 Your annual income & minimum guaranteed maturity benefit will depend on the monthly
income chosen by you
Your premium amount will depend on your age and the monthly income and the plan you have
chosen
Pay premium for 5 years or 7 years as per the plan option chosen
There will be a deferment period after you have paid the last premium.
After the deferment period, you will start receiving monthly & annual income along with
lump sum at the end of the policy term.
In case of your unfortunate demise, your family will receive the Sum Assured in a lump sum
Snapshot of SUD Life's Elite Assure plan
Entry Ages
Minimum - 20 years
Maximum - 50 years
Sum Assured

17

 11 X Annual premium (rounded up to the next Rs. 1000)

Monthly Income
Minimum- Rs. 10,000
Maximum- Rs.5,40,000
Policy Term
For 5-5-5 plan option- 15 years (5 years' premium payment term + 5 years' deferment
period + 5 years' payout term)
For 7-7-7 option- 21 years (7 years' premium payment term + 7 years' deferment period
+ 7 years' payout term)
Premium Payment Modes
Annual, Half Yearly, Quarterly or Monthly (monthly mode through ECS/SI only)
#Tax benefits are subject to change in tax laws from time to time. Prevailing benefits would be
applicable as per the prevailing laws from time to time.

BRIGHT CHILD PLAN

SUD LIFE BRIGHT CHILDA Traditional Protection-cum-Savings Life Insurance Plan
As a parent, your life's dreams and ambitions now revolve around your children. You want to
give them the best that life has to offer - a childhood full of happiness and love; an education
from a premiere institute; a grand marriage in the midst of friends and relatives. You want to help
them to launch their careers and you want to see them well settled. Saving and investing money
to fund all these goals is important. More important is ensuring that this money grows and is
available to you, in the right amounts, when you need it. SUD Life Bright Child is specifically
18

tailored to meet these needs with its distinct payout structure, crafted to meet the funding needs
related to your child's career and wedding.
Core benefits:
A choice between two funding options - Career Endowment and Wedding Endowment.
Get "Child Benefits" up to 125% of sum assured.
Your child's future is secure even in case of your unfortunate demise.
Income Tax Benefits under section 80(C) & 10(10D)*.

How does this plan work?

Choose a plan option - Career Endowment OR Wedding Endowment.
Decide upon the Sum Assured based on the corpus needed to support your child's future.
Choose your premium paying term - 10 years OR till your child turns 18 years of age.
Based on your plan option the benefits would be paid as followsChild's Age Benefits under Career Benefits under Wedding
(years)

Endowment option**

Endowment option**

18

50%

20%

21

20%

30%

24

30% + Benefit booster

50% + Benefit booster

In case of your unfortunate demise, your child will receive the Sum Assured immediately. All
the future premiums will be waived off and your child will also continue to get the future
benefits as planned at ages 18, 21 and 24 years.
**Benefits payable as the percentage of Sum Assured
Snapshot of the plan

19

 Entry Ages
- Parent : 19-45 years
- Child : 0-8 years
Sum Assured
- Minimum : Rs. 5 lacs
- Maximum : Rs. 5 crores
Policy Term
- 24 minus age of child at entry
Premium Payment Term
- Option 1: 18 minus age of child at entry
- Option 2: 10 years
Premium Payment Modes: Annual, half yearly, quarterly, monthly (through ECS/ SI only)
*Tax benefits are subject to change in tax laws from time to time. Prevailing benefits would be
applicable as per the prevailing laws from time to time.

GURANTEED MONEY BACK PLAN

20

STAR UNION DAI-ICHI'S GUARANTEED MONEY BACK PLAN

A traditional money-back plan - Protection cum Savings Plan
UIN: 142N036V01

You always work hard to achieve your long term goals. But while your long term goals are
priority there are times, when you would need interim payouts to meet your short term financial
requirements as well. Be it your first car or child's education or an exotic holiday with your
family, a regular payout is much sought when it comes to the happiness of your loved ones. Now
you can address all these financial requirements with Star Union Dai-ichi's Guaranteed Money
Back Plan, which gives you regular payouts after every five years#. Along with your short-term
financial goals, this traditional plan ensures financial stability of your future with guaranteed
lump sum at maturity. Besides this, it also secures your family in case of your unfortunate demise
and ensures that they move up in life with increased savings.
Core benefits:
Guaranteed money back of 200% of annual premium after every five years#
Your funds grow with guaranteed additions of up to 6% of annual premium every year
Guaranteed lump sum at the end of policy term
Financial support to your family in case of unfortunate demise
Income Tax benefits under section 80(C) & 10 (10D)*
# before the end of the policy term
How does this plan work?
Choose a Sum Assured: Rs. 3 lakhs to 10 crores; and a policy term: 10 years / 15 years / 20
years
Decide your annual premium based on the above and your age
Pay the premium for 10 years
After every five years, you will receive 200% of your annual premium
21

 Your money grows every year with guaranteed additions of up to 6% of annual premium
At the end of policy term, you will receive a guaranteed lump sum
In case of unfortunate demise, your family will receive the entire sum assured irrespective of
the interim benefits, which has been already paid to you.
Snapshot of the plan
Age at Entry: 13 years to 50 years
Policy Term: 10 years / 15 years / 20 years
Maximum Age at Maturity: 70 years
Premium Payment Term: 10 years in yearly, half-yearly, quarterly and monthly modes
Sum Assured: Rs. 3 Lacs to Rs. 10 Crores
Guaranteed Additions:
Policy Term

10 yrs

15 yrs

20 yrs

Guaranteed Additions 4% of annual premium 5% of annual premium 6% of annual premium

Survival Benefit: 200% of annualised premium paid immediately as follows:
Policy Term (in years)

Benefit Payable at the end of-

10

5th policy year

15

5th and 10th policy year

20

5th, 10th and 15th policy year

Death

Benefit:

Sum

Assured

guaranteed

additions

till

date

*Tax benefits are subject to change in tax laws from time to time. Prevailing benefits would be
applicable as per the prevailing laws from time to time

JEEVAN SAFAR PLUS

22

SUD Life Jeevan Safar Plus

Participating Non Linked Endowment Insurance Plan
UIN:142N043V01
SUD Life Jeevan Safar Plus is a traditional life insurance plan, which guarantees 125% Sum
Assured1 along with additional bonus and financial assistance to your family in case of
uncertainties.
Why should you take this plan?
Guaranteed additions for the first 5 years1
Yearly bonus to enhance your savings further
Protection for your family in case of your unfortunate demise
Income Tax Benefits under section 80C & 10(10D)*.
How does this plan work?
Choose your Basic Sum Assured. This would be the minimum amount, you wish to save
Decide upon the policy term between 13 and 30 years
You can opt to pay premiums regularly throughout the policy term or for a limited period of 10
years
Choose to pay your premium Annually, Half yearly, Quarterly or monthly

23

 The premium amount will depend upon your age, the Basic Sum Assured, premium payment
term and Policy Term chosen
At the end of policy term, you will receive guaranteed 125% Sum Assured along with
additional bonuses accumulated all through your policy term
In case of your unfortunate demise during the term of the policy, Death benefit3 which is Death
Sum assured# along with Guaranteed Additions and Bonuses, accrued till the date will be paid
Eligibility
Age at entry- 18 yrs to 55 yrs
Maximum age at Maturity- 70 years

Guaranteed Addition of 5% of Sum Assured every year for first 5 years, payable on maturity. In

case of death, Guaranteed Addition accrued till date of death will be paid. *Tax benefits are
subject to change in tax laws from time to time. Prevailing benefits would be applicable as per
the prevailing laws from time to time.
#

Death Sum Assured= 10 times the Annual premium or Minimum Guaranteed Sum Assured at

the time of Maturity (i.e. Basic Sum assured)

In any case, minimum Death Benefit shall be at least 105% of all premiums paid (excluding any
extra premium, and service tax, if any) as on date of death.

1.6Organization structure of the SUD LIFE

SUD LIFE has line structure as its Organizational structure. Features of line organization are:

In line structure, authority flows from the top level to lower levels through various
managerial positions. There is vertical flow of authority and responsibility.
24

There are many levels of management depending upon the scale of business and

decision-making ability of managers. Each level of management has equal rights.

There is unity of command. Every person is accountable to his immediate boss.
There is limit on subordinates under one manager. A manager has control only over the
subordinates of his department.

Figure no.3
1.7.1Market Share of SUD LIFE

25

0.53
0.58
0.99
0.99
1.05
1.27

1.02

0.41 0.41

0.42

MARKET SHARE FOR FY'12~FY'13

(IN %)

0.39
0.33
0.20

Life Insurance Corporation of India

ICICI Prudential Life Insurance Co. Ltd

0.09

HDFC Standard Life Insurance Co. Ltd

1.27

SBI Life Insurance Co. Ltd

2.30

Max Life Insurance Co. Ltd

Bajaj Allianz Life Insurance Co Ltd

2.46

Birla Sun life Insurance Co. Ltd

2.73

Reliance Life Insurance Co. Ltd

3.14

Tata AIG Life Insurance Co. Ltd

ING Vysya Life Insurance Co. Ltd

4.40

MetLife Life Insurance Co Ltd

Aviva Life Insurance Co Ltd

5.66

Canara HSBC OBC Life Insurance Co Ltd

Kotak Life Insurance Co Ltd
63.47

5.88

DAI
StarIchi
Union
LifeDai
Insurance Co. Ltd
Future Generali Life Insurance Co Ltd
IDBI Federal Life Insurance Co. Ltd
India First Life Insurance Co. Ltd
Bharti Axa Life Insurance Co. Ltd
Aegon Religare Life Insurance Co. Ltd
Shriram Life Insurance Co. Ltd
DLF Pramerica Life Insurance Co. Ltd

Figure no. 4
SUDS New Business Premium grows by 23%, compared to industrys negative growth
of -15%.
Achieves 44% increase in the number of new business policies sold.
Product mix further shifts to long-term traditional products, thereby driving profitability
through product-mix. Traditional products account for 83% of new business premium.

26

 13th month persistency improves to 76%. Among top 5 companies in persistency

experience.
1.7.2 Market Position of SUD LIFE
Life Insurance Companies
Market Position
1

Life Insurance Corporation Of India

ICICI Prudential Life Insurance Co. Ltd

HDFC Standard Life Insurance Co. Ltd

SBI Life Insurance Co. Ltd

Max Life Insurance Co. Ltd

Bajaj Allianz Life Insurance Co Ltd

Birla Sun life Insurance Co.Ltd

Reliance Life Insurance Co. Ltd

Tata AIG Life Insurance Co. Ltd

10

ING Vysya Life Insurance Co. Ltd

11

MetLife Life Insurance Co Ltd

12

Aviva Life Insurance Co Ltd

13

Canara HSBC OBC Life Insurance Co Ltd

14

Kotak Life Insurance Co Ltd

15

Star Union Dai-Ichi Life Insurance Co. Ltd

16

Future Generali Life Insurance Co Ltd

17

IDBI Federal Life Insurance Co. Ltd

18

India First Life Insurance Co. Ltd

19

Bharti Axa Life Insurance Co. Ltd

27

20
Table no. 3

Aegon Religare Life Insurance Co. Ltd

For the calendar year 2012, SUD LIFE is Ranked 15th and its Equity Fund ranked No 1 among
72 ULIP funds bearing testimony to the companys fund management expertise. SUD Life
Insurance has achieved break even in 2012-13, its fifth year of operations. The company has
reported a maiden profit of Rs 9.24 crore in 2012-13, thus making it one of the fastest to breakeven in the Life Insurance industry. In an industry challenged by falling margins, shrinking new
business volumes, high cost ratios and low profitability, this is a significant achievement.
One of the major reasons behind the growth of SUD LIFE Life Insurance has been its
employees. The organization regards its employees as valuable assets and takes pride in the fact
that it has one of the finest workforces in the general insurance industry.

1.8 Leadership of SUD LIFE INSURANCE and their Levels in the Industry
R

Figure no.5

28

During the tenure of the training we interacted with various people. Among them few guided us
and helped us in better understanding of the functioning of different departments of the
organization. Mr. Sumit Kalra, Regional Manager (sales) guided us with the functioning of the
branch and how employees coordinate and are accoladed based on their performances.
Mr. Sanjeev Arora (Branch Head) and Mr. Chandra Shekhar singh (Sr. Manager) helped us
throughout by their guidance and support, throughout our tenure with SU

CHAPTER-2
CONCEPTUAL DISCUSSION
2.1 INTRODUCTION OF RECRUITMENT
Recruitment and selection is the process of identifying the need for a job, defining the
requirements of the position and the job holder, advertising the position and choosing the most
appropriate person for the job. Retention means ensuring that once the best person has been
recruited, they stay with the business and are not poached by rival companies.
Undertaking this process is one of the main objectives of management. Indeed, the success of
any business depends to a large extent on the quality of its staff. Recruiting employees with the
correct skills can add value to a business and recruiting workers at a wage or salary that the
business can afford, will reduce costs.
Employees should therefore be carefully selected, managed and retained, just like any other
resource

29

2.2 Types of recruitment

Internal recruitment:
It is recruitment, which takes place within the concern or organization internal source of
recruitment are readily available to an organization. Internal source are primarily three- transfers,
promotions and reemployment of ex- employees is one of the internal source if recruitment in
which employee can be invited and appointed to ,fill vacancies in the concern. There are,
situations when ex- employees provide unsolicited applications also.
Internal recruitment may lead to increase in employees productivity as their motivation level
increases. It also saves time, money and efforts.
But the drawback of internal recruitment is that it refrains the organizations from new blood.
Also, not all the men power requirement can be met through internal recruitment. Hiring from
outside has to be done.
Internal sources are primarily of three types

30

Transfers
Promotions(through internal job postings) and
Reemployment of the Ex- employees- reemployment of the Ex- employees is one of
the internal sources of recruitment in which employees can be invited and appointed
to fill back vacancies in the concern. There are situations when Ex- employees
provide unsolicited applications also.

External recruitments- External sources of recruitments have to solicit from outside the
organization. External sources are external to a concern. But it involves lot of time and money.
The external sources of recruitment include- employment at factory gate, advertisement,
employment exchanges, employment agencies, educational institute, labor contract
Recruitment is a process through which an organization legally obtains its new employees
through a step-by-step screening process. It is a major function of HR department. The company
uses various methods to filter out candidates that suits its needs; for example qualification, skills,
experience, etc. Recruitment affects a lot on the performance of an organization. Types of
Recruitment: - Internal recruitment- The process of recruiting people within an organization. It
may include
(a) Personal recommendation from people within an organization.
(b)Notice boards within an organization.
(c)Meetings involving only the members of an organization and discussing the requirements or
required employees.
(d)Internal recruitment is relatively cheaper process but it may harm the sense of competition
within the employees.

External recruitmentThe process of recruiting employees from outside the organization, depending on other sources.
This may include(a)Recruitment agencies
31

(b)Advertisements
(c)Job centers

2.3 Recruitment Process:Let us review the recruitment process in brief:

1) Detection and reporting of vacancy- The requirement for an employee arises in any
department of an organization and is reported to the HR department.
2) make a detailed note of all specifications-All the description about the job and what is
expected of the employee is noted down.
3) Advertisement of vacancy-An advertisement is prepared and a number of methods may be
adopted to reach the desired candidates, which may include- newspapers, employment agencies,
recruitment web-sites etc.
4) Managing response from candidates-Strict deadlines should be issued regarding the deadline
Forsubmission of application by the candidates. Terms and conditions of company should be
clearly mentioned to the applicants.
5) Short listing of the candidates-The applicable candidates are shortlisted by recruitment panel
based on the skills, qualification and some other criteria.
6) Interviewing of shortlisted candidates-The shortlisted candidates are called for interviews ; the
schedule for which may or may not be predefined and the applicant may prepare for it in
advance.
7) Selected candidates are shortlisted- The candidates selected for the job are shortlisted.
8) Training of selected candidates-A well schedule is planned for imparting training to selected
candidates; thereafter they are allowed to proceed with their jobs.

2.4 Recruitment Methods:-

32

Let us now look at the various methods of recruitment: Recruitment agencies-A candidate may
register with various recruitment agencies which in turn help the applicant finding a suitable job
for him/her. They are also referred to as Head-Hunters'.
Job centersThe people in need of a job can register with these centers. They help the candidates in need of a
job by contacting the organizations in need of employees and even advertising for the candidates.
AdvertisementsA candidate may advertise for his need for a job. The advertisement may be made on internet,
newspaper or employment magazines; giving all the details about himself/herself.
Personal RecommendationAn existing employee of an organization may recommend some specific candidate known to him
for an existing vacancy. The positive point about this method of recruitment is that all the
strengths and weaknesses of the candidate are known beforehand without even conducting a
formal interview. Read about staffing solutions in Australia and recruitment in Australia .

Employment at factory level: this is the source of external recruitment in which

application vacancies are presented on bulletin boards outside the factory or at the gate.
This kind of recruitment is applicable generally where factory workers are to be
appointed there are people who keep on soliciting jobs one place to another these
applicants are called as unsolicited applicants. These types of workers apply on their own
or their job. For these kind of recruit have tendency to shift from one factory to another

and therefore they called as BADLI workers.

Advertisement- it is an external source which has got an important place in recruitment
procedure. The biggest advantage of advertisement is that it covers a wide area of market
and scattered applicant can get information from advertisement. Medium news is

newspapers and television

Employment exchanges- there are certain employment exchanges which are by
government. Of the government undertakings and concerns employs people through such

33

exchanges. Now-a-days recruitment in government agencies has become compulsory

through employment exchange.

Employment agency- there are certain professional organizations which look towards
recruitment and employment of people, i.e. these private agencies run by private

individuals supply required manpower to needy concerns.

Educational institutions- there are certain professional institutions which serves as an
external source for recruiting fresh graduate form these institutes. This kind of
recruitment done through such educational institution is called as campus recruitment.

They have special recruitment cells which have in providing jobs to fresh candidates.
Recommendations- there are certain people who have experience in a particular area.
They enjoy goodwill and a stand in a company. There certain vacancies which are fill by
recommendations of such people. The biggest drawback of these sources is that the

company has to rely totally on such people which can later on prove to be inefficient.
Labor contractors- these are the especially who supply manpower to the factory or
manufacturing plants through these contractors, workers are appointed on contract basis,
i.e. for a particular time period. Under conditions when these contractors leave the
organizations, such people who are appointed have to also leave the concerns.

2.5 INTRODUCTION OF SELECTION

34

35

Types of selection
Application Forms
Application forms are a means of collecting written information about an applicant's education,
work and non-work experiences, both past and present. Almost all organizations request
applicants to complete an application form of some type. Application forms typically request
information on an applicant's home address, last employer, previous work experience, education
of military service, and other information pertinent to employment, such as names and addresses
of references. The application form also serves as a guide for the employment interview.
Employment Interviews
The employment interview is a vehicle for information exchange between applicant and
interviewer regarding an applicant's suitability and interest in a job the employer seeks to fill.
Information provided in an applicant's application for employment can be probed more deeply in
the interview and other information relevant to an applicant's qualifications can be elicited. Since
interviews can be rather flexible, any missing pieces of information about an applicant can be
collected at this time.
Interview problems
As a selection method, interviews are problematic. Research shows that interviews have good
test-retest reliability (same interviewer twice) and good internal consistency reliability, but low
inter-rater reliability (between different raters). The reason for low inter-rater reliability is that
interviews are apt to be unstructured and subjective. A number of problems result from the
unstructured nature of employment interviews. These include:
(1) rater error;
(2) talkative interviewer hampers collection of job-related information;
(3) variance in questions asked of applicants during interview;
4) interviewer asks "trick" questions;
36

(5) interviewer asks inappropriate questions relating to an applicant's race, religion, sex, national
origin, and age.
Rater Error in Interviewing
Central tendency errors result in most applicants being rated as average. Leniency and strictness
errors, on the other hand, result in most applicants being given either uniformly high or
uniformly low ratings. The halo effect has the result of an applicant being seen as generally good
or bad because one characteristic of the applicant overshadows all others. Contrast effects may
occur if an average applicant is rated more highly than he or she deserves because he or she is
interviewed after several poor applicants. Stereotyping is the tendency to compare applicants
with one's stereotype of the "ideal" applicant.
Improving employment interviews.
The value of the employment interview as a selection method will increase if these guidelines are
followed:
1. A structured interview guide containing questions for applicants should be used to
increase the reliability of interviews.
2.

37

2. Interviewers should be given complete job descriptions and job specifications for each job for
which they are interviewing. This tends to reduce interviewer bias because actual requirements
are spelled out in detail.
3. Interviewers should be trained in interviewing and know how to avoid errors such as talking
too much and making hasty judgments.
4. Interviewers should be trained to deal with all applicants, regardless of level of qualifications,
since the interview is also a public relations vehicle.
5. Interviewers should receive special instructions in properly and legally interviewing women
and minorities.
Tests of Abilities, Aptitudes, and Skills
Tests used for screening applicants on the basis of skills, abilities, and aptitudes can be classified
as either paper and pencil tests or job sample tests. Both kinds are scored, and minimum scores
are established to screen applicants. The "cut-off" score can be raised or lowered depending on
the number of applicants. If selection ratios are low, the cut-off score can be raised, thereby
increasing the odds of hiring well-qualified employees.
Tests should be selected only after thorough and careful job analysis. For example, examination
of a job description for an auto mechanic would probably show that manipulation of parts and
pieces relative to one another and the ability to perceive geometric relationships between
physical objects were required. These abilities are a part of a construct called mechanical
aptitude. Various parts of mechanical aptitude can be measured using either paper or pencil or
job sample tests.
Job sample tests, which require applicants to demonstrate specific job duties, can also be used to
measure mechanical ability. For example, applicants for a mechanic's job could be asked to
locate and fix a number of things wrong with a car or truck. Organizations can develop their own
job sample tests. Closely related to job sample tests are job simulation exercises that place an
applicant in a simulated job situation to see how well he or she can cope.
Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational
38

requirements with the skills and qualifications of people. Effective selection can be done only when there is
effective matching. By selecting best candidate for the required job, the organization will get quality performance
of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By
selecting right candidate for the required job, organization will also save time and money. Proper screening of
candidates takes place during selection procedure. All the potential candidates who apply for the given job are
tested.
But selection must be differentiated from recruitment, though these are two phases of employment process.
Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It
creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate
candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the
best candidate with best abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligibility criteria laid down by the organization. The skills, academic and
family background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to
fill application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude
test, intelligence test, reasoning test, personality test, etc. These tests are used to
objectively assess the potential candidate. They should not be biased.
4. Employment interview- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required
39

job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then
finally he is appointed by giving a formal appointment letter.
According to R.D. Gate wood and H.S. Field, employee selection is the "process of collecting
and evaluating information about an individual in order to extend an offer of employment."
Employee selection is part of the overall staffing process of the organization, which also includes
human resource (HR) planning, recruitment, and retention activities. By doing human resource
planning, the organization projects its likely demand for personnel with particular knowledge,
skills, and abilities (KSAs), and compares that to the anticipated availability of such personnel in
the internal or external labor markets. During the recruitment phase of staffing, the organization
attempts to establish contact with potential job applicants by job postings within the
organization, advertising to attract external applicants, employee referrals, and many other
methods, depending on the type of organization and the nature of the job in question. Employee
selection begins when a pool of applicants is generated by the organization's recruitment efforts.
During the employee selection process, a firm decides which of the recruited candidates will be
offered a position.
Effective employee selection is a critical component of a successful organization. How
employees perform their jobs is a major factor in determining how successful an organization
will be. Job performance is essentially determined by the ability of an individual to do a
particular job and the effort the individual is willing to put forth in performing the job. Through
effective selection, the organization can maximize the probability that its new employees will
have the necessary KSAs to do the jobs they were hired to do. Thus, employee selection is one of
the two major ways (along with orientation and training) to make sure that new employees have
40

the abilities required to do their jobs. It also provides the base for other HR practicessuch as
effective job design, goal setting, and compensationthat motivate workers to exert the effort
needed to do their jobs effectively, according to Gate wood and Field.
Job applicants differ along many dimensions, such as educational and work experience,
personality characteristics, and innate ability and motivation levels. The logic of employee
selection begins with the assumption that at least some of these individual differences are
relevant to a person's suitability for a particular job. Thus, in employee selection the organization
must (1) determine the relevant individual differences (KSAs) needed to do the job and (2)
identify and utilize selection methods that will reliably and validly assess the extent to which job
applicants possess the needed KSAs. The organization must achieve these tasks in a way that
does not illegally discriminate against any job applicants on the basis of race, color, religion, sex,
national origin, disability, or veteran's status.

VALIDITY OF SELECTION METHODS

Validity refers to the quality of a measure that exists when the measure assesses a construct. In
the selection context, validity refers to the appropriateness, meaningfulness, and usefulness of
the inferences made about applicants during the selection process. It is concerned with the issue
of whether applicants will actually perform the job as well as expected based on the inferences
made during the selection process. The closer the applicants' actual job performances match their
expected performances, the greater the validity of the selection process.

2.7

RECRUITMENT PROCESS OF STAR UNION DAI-ICHI

LIFE INSURANCE

Star union dai-ichi Recruitment 2013 through IBPS: Star Union Dai-ichi (SUD) invites online
application forms for Clerk Recruitment 2013 to work its branches and offices across India.

41

Valid Score card and Cut off marks details listed in notification /advertisement for IBPS Clerk
exam 2013.
Eligible IBPS Clerk Exam 2013 qualified candidates fill the SUD Online Application form
2013.While filling the application form, applicant have to pay Challan fee in online mode or at
bank. According to notification, application fee is Rs. 150 for OBC and General Applicants and
Rs.50 for other applicants.
Graduation degree along with full knowledge in Computer basics skills (MS-Office) is
mandatory, which helps to perform banking operations fast.
According to STAR UNION DAI-ICHI Clerical Recruitment 2013 notification, the salary ranges
from Rs.7300 to Rs.19300.In Addition DA, HRA and Health benefits also included to
employees.
Applicant must have at least 18 years of age and not more than 28 years for OC/General, 18 to
31 years for OBC and 18 to 33 years for ST/ST Candidates as per the reference date.
Star union dai-ichi Clerk selection procedure will made purely performance base in interview.
IBPS Clerk cut off marks also play major role while selecting the final list.
After completion of online registration, take a print out and use it while attend for Interview.
Bank will send call letter for Interview to your E-Mail ID. Follow online registration instructions
carefully before fill application form. Applicants need to complete the online application form
submission within last date.

Highlights of star union dai-ichi Clerk Recruitment 2013 through IBPS

1. Age limit: 18 to 30 years
2. Qualification: Any Degree+ MS Office Skills
42

3. Selection Procedure: Interview

4. Total vacancies:
5. Post name: SUD Clerk Recruitment

CHAPTER 3
CONCEPT RELATED TO STUDY
3.1 RECUITMENT PROCESS IN INDIA
India has one of the worlds most sought after job markets. With the booming economy and high
economic growth, India is the place to be for prospective job seekers. The recruitment process in
India is a very comprehensive one and caters to the diverse job market of the country. The
objective of the recruitment process is to place the suitable candidate in the right job profile. The
other important aspects, which the recruitment process includes, are identifying the vacancies,
advertising the post of the candidates, short-listing, managing the response, preparing the job
descriptions and person specifications, arranging interviews, conducting interviews, decision
making, convey the decision and appointment action.
The recruitment process in India usually boils down to 3 important steps which are application
short-listing, preliminary assessment and final interview and selection. In some cases, the
recruitment process may also comprise of a written test, to judge the candidates on specific
skills. However, the candidates CV place and important role in reaching out to the employers and
43

making a favorable impression. The presentation of CV should be in an organized manner and

refine manner. The CV of a person speaks a lot about an individual and persons mindsets and
attitude can be judge according to the CV. The crucial phase of the recruitment process is the
personal interview round. The interview plays a important part in gauging a candidates
personality and all the issues must be properly addressed.
The recruitment process must be just, transparent, and fair. The candidates must be informed
about the selection or the rejection. In addition, the decision making process should not take very
long to prevent the candidates from taking up some other job opportunity. The candidate must be
explained the complete process of his appointment and all details of the documents to be
submitted.
Finally, one fine recruitment agency will take care to recruitment process a hassle free one;
therefore, it is imperative to in on and authentic recruitment agency.
Company Website
A company may recruit employees by posting a job search or listing on the

company website. This will allow the recruits to read the job descriptions of each job before they
apply for the position. If potential candidates feel they can do the job, they can then apply to the
company directly, by filling out an application, and attaching a resume, cover letter or any other
required documentation. Some employers give a contact person versus allowing the recruit to
apply online. The contact personnel can then contact the recruit and go into more depth on the
vacant position.
Temporary Agency
A temporary agency helps employers recruit, without having to take time out of

their busy schedules. Employers will tell the temporary agency the type of employees they
prefer, and all the specifics of the job. The temporary agency then posts for the position, or goes
to a pool of applicants on file. The temporary agency representative will administer any test that
the employer requires with the employees, and conduct interviews. The temporary agency rep
will send over the employee she feels will best suit the position to either work or conduct an inhouse

44

Newspapers
Newspapers play a significant role in recruiting employees. Employers will

advertise open positions. This helps keep the interviewing process down, because prospective
candidates will be given a contact email or address to send their credentials, and recruiters can
weed through the resumes, then conduct interviews when they find the best suitable candidates.
Web Recruitment
The Internet is playing a major role in employee recruitment. Sites, such as Career

Builder, Hot Jobs, Indeed and Monster, allow companies to post job listings for vacant positions.
Some sites even allow the recruits to create their own profile, where they will post their resume
and other employment specifics online, and employers can view these profiles without
conducting interviews. This helps the employers find the best possible candidate for the position.
Job Fairs
o

Job fairs allow businesses to send company recruiters to the event, usually in a
venue that holds a large capacity of people, and find employees to come on board with their
company. These job fairs are advertised on the radio, in newspapers and online. Employers set up
booths or tables and have pamphlets and other company information, and pass out business cards
to prospective employees.
Internal Sourcing

Internal sourcing is the practice of advertising a new or recently vacated position within a
business to existing employees. More businesses have come to use internal sourcing as a method
to recruit employees upward or laterally within the company because little or no training is
needed, and expenses that include advertising for a new employee and running background
checks are spared. It also fosters loyalty and parity among team members.

45

 External Sourcing

External sourcing is a method of recruitment that conducts an employee candidate search

through external recruitment tools, such as job boards, newspaper advertisements and trade
publication announcements. This method favors bringing in job candidates that may or may not
have direct experience in your small business' line of work; a candidate within a satellite field
may offer a fresh, out-of-the-box perspective to the organization. External sourcing is also used
when the open position is not able to be filled by a current employee because of the technicality
or specialty of the position. Small Business recommends that you know exactly what type of job
candidate you are looking for before advertising the position and accepting resumes.

Third-Party Sourcing

Third-party sourcing involves using a placement agency or headhunter to find qualified job
candidates. These third-party sources use various techniques and tools to find appropriate job
applicants, such as extending offers of improved salary compensation and more flexible benefits
packages.

Interviewing or Pre-Selections
All Business suggests that you should schedule interviews when you know you will have
uninterrupted time to review the job candidate's resume and conduct an insightful interview.
When conducting the interview, do not focus solely on the applicant's credentials or experience.
Instead, present hypothetical scenarios to the candidate and ask how she would evaluate and
solve the presented problems. Listen to her answers without interruption and take notes on key
points.

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47

CHAPTER 4
PERCEPTION AND BUYING
BEHAVIOUR OF CUSTOMER

4.1 Insurance
Every asset has a value for its owner and for those who are benefited with the existence of that
asset. Insurance is concerned with the protection of economic value of assets.
48

All of us are interested in the creation of assets because:

i.

All assets have values.

ii.

They yield income to the owner.

iii.

They meet some other needs of the owner.

iv.

They may provide satisfaction of some needs and also yield income to the owner.

Every asset has normally an expected lifetime. During this period, it is expected to perform and
provide income/comfort to the owner. The owner, being aware of this, plans the things in such a
way that by the time the expected lifetime of the asset expires, he is ready with the funds
required for its replacement. In this way, he ensures that the value or income from the asset is not
lost. Well, this appears to be a fine arrangement provided the asset completes its expected
lifetime.
All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get
destroyed or damaged. Only in a few instances, the probability turns out to be true and the assets
gets actually lost or destroyed by accident or some other unfortunate event before the
compilation of its expected lifetime. The owner and those deriving benefits from the asset will
suffer because the arrangement to make available its substitute is not yet ready.
4.2. Major Principles of Indian Insurance Contract

1.

Principles Utmost Good Faith

Principles of Material Facts
Principles of Insurable Interest
Principles of Indemnity
Principle of Utmost Good Faith

Insurance contracts are based upon mutual trust and confidence between the insurer and the
insured. Hence, they are said to be uberrimae fidei i.e. of the utmost good faith. Utmost good
faith in insurance means that each party to a proposed contract is legally obliged to reveal to the
other party all information which would influence the others decision to enter the contract,
49

whether such information is requested or not. Though the insurance contracts are subject to good
faith and are based upon mutual trust and confidence, it is not possible to apply any doctrine or
caveat emptor (let the buyer beware) because of the fiduciary nature of insurance. The
information necessary for the parties to assess the contract adequately cannot be ascertained as
with contracts of sale where the buyer before contracting to purchases anything must satisfy
himself as to nature and quality of good he needs.
2. Principle of Insurable Interest
The second principle of insurance is that the subject-matter of the insurance must be of insurable
interest. This means that the insured stands in such relation to the subject matter of insurance
that he suffers loss by its destruction or damage and is benefited by its safety, or existence. An
insurable interest is an interest of such a nature that, if the event insured against takes place, the
insured might suffer a financial loss. If the happening of the event insured against cannot cost the
insured money, then there is no insurable interest. Thus insurable interest mean proprietary or
monetary interest. It is the legal right to insure as an insurance policy does not cover property,
but relates to the insureds interest in the property. In every contracts of insurance, the law
regards possession of an insurable interest in the subject-matter of insurance to be a necessary
pre-requisite. The insured must own either own part or whole of it or he must be in such a
position that injury to it would affect him adversely.
3. Principle of Material Facts
A material fact is one which affects the nature or incident of risk in a proposed insurance. It is an
essential fact which the insurer will take into consideration in deciding whether to accept the
insurance proposal for a given risk or not. It is the fact which has a bearing or which is expected
to influence the amount of premium. Thus, the material fact depends on the circumstances of a
case and the subject-matter of insurance. However, unimportant facts or omission or
misstatements may be excused.
4. Principle of indemnity
This is the regulating principle of insurance. It is applicable in all contracts of insurance except
life, personal accident and sickness insurance. It does not apply to every class of business but it
50

applicable to fire, marine, burglary or any other policy and not on the life insurance policy.
Under an insurance contract the insurer undertakes to indemnity the insured against loss
suffered by the latter. Indemnity literally means security against damages or loss or
compensation for loss. Prof. Hansell has defined it as an exact financial compensation. In the
case of loss against which the policy has been made the assured shall be indemnified for only the
actual loss suffered by him but will never be more than fully indemnified. Thus indemnity
restores the insured to the same financial position after a loss as he enjoyed immediately prior to
the loss. This is in conformity with the basic concept of insurance, whereby an insurer is required
to compensate the unfortunate few for the loss they sustain but does not allow to earn profit from
misfortune. Under the principle of indemnity no profit can be made out of the insurance contract.

4.3 Major Role of Life insurance in India

Life insurance as Investment
Insurance is an attractive option for investment. While most people recognize the risk hedging
and tax saving potential of insurance, many are not aware of its advantages as an investment
option as well. Insurance products yield more compared to regular investment options, and this is
besides the added incentives (read bonuses) offered by insurers. You cannot compare an
insurance product with other investment schemes for the simple reason that it offers financial
protection from risks, something that is missing in noninsurance products.
Life insurance as "Risk cover"
First and foremost, insurance is about risk cover and protection - financial protection, to be more
precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered
on account of any unforeseen event, insurance provides you with that unique sense of security
that no other form of investment provides. By buying life insurance, you buy peace of mind and
are prepared to face any financial demand that would hit the family in case of an untimely
demise. To provide such protection, insurance firms collect contributions from many people who
face the same risk. A loss claim is paid out of the total premium collected by the insurance
companies, who act as trustees to the monies.

51

Insurance also provides a safeguard in the case of accidents or a drop in income after retirement.
An accident or disability can be devastating, and an insurance policy can lend timely support to
the family in such times. It also comes as a great help when you retire, in case no untoward
incident happens during the term of the policy. With the entry of private sector players in
insurance, you have a wide range of products and services to choose from. Further, many of
these can be further customized to fit individual / group specific needs. Considering the amount
you have to pay now, it's worth buying some extra sleep.
Life insurance as Tax planning
Insurance serves as an excellent tax saving mechanism too. The Government of India has
offered tax incentives to life insurance products in order to facilitate the flow of funds into
productive assets. Under Section 80C of Income Tax Act 1961, an individual is entitled to a
rebate of maximum Rs.1,00,000 on the annual premium payable on his/her life and life of his/her
children or adult children. The rebate is deductible from tax payable by the individual or a Hindu
Undivided Family.

4.4 The scope of a Life insurance Company in India

To understand the nature and principal of insurance providers, you really need to understand
what a life insurance policy is and how it works. With times and financial situations changing
rapidly, risks of illness and accidents are increasing and this is leading to a lot of people thinking
about getting life. insurance cover to secure their family's future financially. As the awareness of
the benefits of the life insurance policies keeps increasing, the breadwinners are giving serious
thought to getting themselves life insurance to ensure that their family or loved ones, also known
as beneficiaries, are taken care of financially in case of an untimely end of the insured. The
money given to the beneficiaries, in the case of life cover, is known as death benefit, which is
paid to the beneficiaries when the policyholder is no more. This amount is decided at the time the
policyholder decides to buy the policy from the particular insurance provider. This amount is
provided to the beneficiaries of the policyholder to fulfill their financial responsibilities and for
them to lead a comfortable life, feel financially secure and safe even after the death of the
policyholder.

52

A life insurance policy can provide the much-needed financial support to the beneficiaries or the
family members of the policyholder on his death. Though it cannot cover the emotional damages
but it can for sure help them lead a good and financially secure life. This is what life insurance
policy provides and the agents make this point clear to the policy buyers, getting them to buy
their policy and making sales for their respective companies.

4.5 Life insurance Contribution to Indian Economy

1. Life Insurance is the only sector which garners long term savings.
2. Spread of financial services in rural areas and amongst socially less privileged.
3. Long term funds for infrastructure.
4. Strong positive correlation between development of capital markets and Insurance / pension
Structure.
5. Employment generation.

4.6. Factors Affecting Consumer Behavior- In General

Consumer behavior refers to the selection, purchase and consumption of goods and services for
the satisfaction of their wants. There are different processes involved in the consumer behavior.
Initially the consumer tries to find what commodities he would like to consume, then he selects
only those commodities that promise greater utility. After selecting the commodities, the
consumer makes an estimate of the available money which he can spend. Lastly, the consumer
analyzes the prevailing prices of commodities and takes the decision about the commodities he
should consume. Meanwhile, there are various other factors influencing the purchases of
consumer such as social, cultural, personal and psychological. The explanation of these factors is
given below.

( i) Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture,
and social class.

53

 Culture
Basically, culture is the part of every society and is the important cause of person wants and
behavior. The influence of culture on buying behavior varies from country to country therefore
marketers have to be very careful in analyzing the culture of different groups, regions or even
countries.
Subculture
Each culture contains different subcultures such as religions, nationalities, geographic regions,
racial groups etc. Marketers can use these groups by segmenting the market into various small
portions. For example marketers can design products according to the needs of a particular
geographic group.
Social Class
Every society possesses some form of social class which is important to the marketers because
the buying behavior of people in a given social class is similar. In this way marketing activities
could be tailored according to different social classes. Here we should note that social class is not
only determined by income but there are various other factors as well such as: wealth, education,
occupation etc.

(ii) Social FactorsSocial factors also impact the buying behavior of consumers. The important social factors are:
reference groups, family, role and status.
Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of
reference groups varies across products and brands. For example if the product is visible such as
dress, shoes, car etc then the influence of reference groups will be high. Reference groups also
include opinion leader (a person who influences other because of his special skill, knowledge or
other characteristics).
Family
54

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying
to find the roles and influence of the husband, wife and children. If the buying decision of a
particular product is influenced by wife then the marketers will try to target the women in their
advertisement. Here we should note that buying roles change with change in consumer lifestyles.
Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs,
family, organization etc. to which he belongs. For example a woman is working in an
organization as finance manager. Now she is playing two roles, one of finance manager and other
of mother. Therefore her buying decisions will be influenced by her role and status.

(iii) Personal FactorsPersonal factors can also affect the consumer behavior. Some of the important personal factors
that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality
and self concept.
Age
Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the
consumers change the purchase of goods and services with the passage of time. Family life-cycle
consists of different stages such young singles, married couples, unmarried couples etc which
help marketers to develop appropriate products for each stage.
Occupation
The occupation of a person has significant impact on his buying behavior. For example a
marketing manager of an organization will try to purchase business suits, whereas a low level
worker in the same organization will purchase rugged work clothes.
Economic Situation
Consumer economic situation has great influence on his buying behavior. If the income and
savings of a customer is high then he will purchase more expensive products. On the other hand,
a person with low income and savings will purchase inexpensive products.
55

 Lifestyle
Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle
refers to the way a person lives in a society and is expressed by the things in his/her
surroundings. It is determined by customer interests, opinions, activities etc and shapes his
whole pattern of acting and interacting in the world.
Personality
Personality changes from person to person, time to time and place to place. Therefore it can
greatly influence the buying behavior of customers. Actually, Personality is not what one wears;
rather it is the totality of behavior of a man in different circumstances. It has different
characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service.

(iv) Psychological Factors

There are four important psychological factors affecting the consumer buying behavior. These
are: perception, motivation, learning, beliefs and attitudes.

Motivation
The level of motivation also affects the buying behavior of customers. Every person has
different needs such as physiological needs, biological needs, social needs etc. The nature of the
needs is that, some of them are most pressing while others are least pressing. Therefore a need
becomes a motive when it is more pressing to direct the person to seek satisfaction.
Perception
Selecting, organizing and interpreting information in a way to produce a meaningful experience
of the world is called perception. There are three different perceptual processes which are
selective attention, selective distortion and selective retention. In case of selective attention,
marketers try to attract the customer attention. Whereas, in case of selective distortion, customers
try to interpret the information in a way that will support what the customers already believe.
56

Similarly, in case of selective retention, marketers try to retain information that supports their
beliefs.
Beliefs and Attitudes
Customer possesses specific belief and attitude towards various products. Since such beliefs and
attitudes make up brand image and affect consumer buying behavior therefore marketers are
interested in them. Marketers can change the beliefs and attitudes of customers by launching
special campaigns in this regard.

57

CHAPTER 5
RESEARCH METHODOLOGY

5.1 RESEARCH METHODOLOGY

The study will be conducted to achieve the aforesaid objectives including both exploratory and
descriptive in nature and involves interviews that will be based on the questionnaire format. A
research methodology defines the purpose of the research, how it precedes how to measure
progress and what constitute success with respect to the objectives determine for carrying out the
research study.

58

The research processes that will be adopted in the present study consist of the following stages:5.2 RESEARCH DESIGN:
A research design is the specifics of method and procedures for acquiring the information needed
to structure or solve the problem. It is the overall operational pattern of framework of the
procedure. On the basis of major purpose of our investigating theEXPLORATORYRESEARCH
was found to be most suitable. This kind of research has the primary objectives of development
of insights into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate course of action.

5.3 OBJECTIVES OF THE STUDY:

The main objectives for the undertaking these projects are:

To understand the internal recruitment process in organization.

To identify areas where there can be scope for improvement.
To gives suitable recommendation to streamline the hiring process.
To develop practical knowledge with theoretical aspects.
To know about the importance of recruitment and selection procedure.
To find out better process of recruitment.
To know about the role of recruiter.
5.4 DATA COLLECTION SOURCES:

Source of Data Collection

Data Collection is an important aspect of any type of research study. It is a term used to describe
a process of preparing and collecting data from all sources and observation. Data was collected
from various primary and secondary sources. These two methods of data collection are discussed
below:

59

D
P
ar
ti
am
a
Cr
oy
l
Dl
ea
ct
ta
i
o
n

Primary Data includes unstructured interview conducted with management trainee from head
office and various employees who provided valuable information regarding the organization and
The data required for the study has been collected from
QUESTIONAIRE:
surveying the official employees
PERSONAL INTERVIEWS:
personal interview with the company representatives regarding recruitment and selection
procedureits working.
Secondary Data is the data that have been already collected by and readily available from other
sources. The secondary data includes information obtained from various sources . The secondary
data has been collected from:

Internet, website
Organizational report
Books
Journals on e-learning industry
Case studies

5.5 SAMPLING METHOD

60

Survey was done by random sampling method

5.6 SAMPLE SIZE
Sample size is defined as the selection of a part or a group or an aggregate with a view in
obtaining information about the whole population.
5.7 SAMPLE AREA
DELHI ( NCR)
5.8 MODES OF ANALYSIS
The instrument used for data collection was in the form of questionnaire. The questionnaire was
used as it facilitates the tabulation and analysis of the data to be collected. The data collected was
subjected to simple frequency distribution and percentage analysis prove the fact there is directly
and indirectly relationship is present between these variable and these variable effect on the
recruitment and selection procedure. All the independent variables are recruitment sources,
interviews and recruits are all very important in the recruitment and selection procedure because
by the missing of any one factor there is chance the whole recruitment and selection procedure
will be affected by these factors. There are no doubt others factors also effects on the recruitment
and selection procedure but these are main and require more attention. That is why I choose these
variables.

61

CHAPTER -6
SWOT ANALYSIS
62

6.1 Introduction of SWOT Analysis

63

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for
the development of marketing plans. It accomplishes this by assessing an organizations strengths
(what an organization can do) and weaknesses (what an organization cannot do) in addition to
opportunities (potential favorable conditions for an organization) and threats (potential
unfavorable conditions for an organization). SWOT analysis is an important step in planning and
its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is
to take the information from the environmental analysis and separate it into internal issues
(strengths and weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines if the information indicates something that will assist the
firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that
must be overcome or minimized to achieve desired results.
The aim of SWOT analysis is to identify the key internal and external factors that are important
to achieving the objective. These come from within the company's unique value chain. SWOT
analysis groups key pieces of information into two main categories:

Internal factors The strengths and weaknesses internal to the organization.

External factors The opportunities and threats presented by the external

environment to the organization.

The internal factors may be viewed as strengths or weaknesses depending upon their impact on
the organization's objectives. The external factors may include macroeconomic matters,
technological change, legislation, and socio-cultural changes, as well as changes in the
marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. It also presents
the resulting lists uncritically and without clear prioritization so that, weak opportunities may
appear to balance strong threats.
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
64

weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
SWOT Analysis Framework

Environmental Scan
/

Internal Analysis
/

External Analysis

Strengths Weaknesses

Opportunities Threats

SWOT Matrix

6.2 Uses of SWOT Analysis

SWOT analysis may be used in any decision-making situation when a desired end-state
(objective) has been defined. Examples include: non-profit organizations, governmental units,
and individuals. A SWOT analysis process generates information that is helpful in matching an
organization or groups goals, programs, and capacities to the social environment in which it
operates.
The SWOT itself is only a data capture exercise

Strengths: positive tangible and intangible attributes, internal to an organization and

within the organisations control.

Weaknesses: internal factors within an organisations control that detract from the
organisations ability to attain the desired goal.

65

Opportunities: external attractive factors that represent the reason for an organization to
exist and develop. What opportunities exist in the environment, which will propel the
organization?

Threats: external factors beyond the organisations control which could place the
organization mission or operation at risk. The organization may benefit by having
contingency plans to address them if they should occur.

The strengths & weaknesses are intrinsic value-creating skills or relative to competitive
forces. Opportunities & threats are external factors which are not created by the organization,
but emerge as a result of the competitive dynamics caused by future gaps in the market.
6.3 Merits & Demerits of SWOT Analysis
Merits

Simple four box framework & flexible.

Facilitates the strengths and weaknesses of the organization.

Encourages the development of strategic thinking.

Enables a management team to focus on strengths & build opportunities.

Can enable an organization to anticipate future business threats and take action to avoid
or minimize their impact.

Can enable an organization to spot business opportunities and exploit them fully.

Demerits

It is easy to use scant data.

To be effective, this needs to be undertaken on a regular basis.

66

The best reviews require different people being involved each having a different
perspective.

Access to quality internal data sources, this can be time consuming and politically
difficult

The pace of change makes it increasingly difficult to anticipate developments that may
affect an organization in the future.

The data used in the analysis may be based on assumptions that subsequently prove to be
unfounded (good & bad).

6.4 SWOT Analysis of STAR UNION DAI-ICHI Ltd.

Lets analyze SWOT in order to know as to where the company stands:

STRENGTH

Positive tangible and intangible attributes, internal to an organization and within the
organizations control.
67

New Products
Business Growth
Rise in per capita Income
Emerging Middle Income Group Strong network across India
Policies for rural and weaker social sector
International expertise of century old Dai-ichi group

WEAKNESSES

Internal factors within an organizations control that detract from the organizations ability to
attain the desired goal

Low investment

Dominance of Public sector

Promotion as a Barrier

Old tariff structure

Limited facilities

68

OPPORTUNITIES

External attractive factors that represent the reason for an organization to exist and develop.
Creation of stronger demand
Strong future growth
Rise in Income and Awareness
Health insurance

THREATS

69

External factors beyond the organizations control which could place the organization mission or
operation at risk. The organization may benefit by having contingency plans to address them if
they should occur

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors
Lack of infrastructure in rural areas could constrain investment
People prefer short term investments rather than insurance

70

CHAPTER 7
DATA INTEPRETATION AND ANALYSIS

71

7.1 DATA INTERPRETATION AND ANALYSIS

Table 1: Represents the different methods of recruitment.
RECRUITMENT
METHOD
NO.

IBPS EXAMS
OF 70

INTERVIEWS

PREFERENCES OF

10

BANK
20

EMPLOYEES

72

RECRUITMENT METHOD

IBPS EXAMS

20%

INTERVIEWS
PREFERENCES OF BANK

10%
70%

INTERPRETATION
Above fig. shows preference on the mode of recruitmentand it is found employees prefer IBPS
Exam.
70% employees prefer IBPS exams.
10% employees prefer interviews.
20% employees are recruited on the preferences of the bank.
Table 2: Represents the different methods of selection.

SELECTION METHODS
NO. OF EMPLOYEES

CAMPUS SELECTION

INTERNAL BANK

70

SELECTIONS
30

73

SELECTION METHOD

30%

CAMPUS SELECTION

70%

INTERNAL BANK
SELECTION

INTERPRETATION

70% employees are selected after every 6 months

30% employees are selected from the bank itself after every 3-5 years on seniority basis.

Table 3: Represent the satisfaction level of employees on the basis of recruitment and
selection.

SATISFACTION
EMPLOYEES
NO OF EMPLOYEES

OF YES

NO

70%

30%

74

SATISFACTION OF EMPLOYEES

30%

YES
NO

70%

INTERPRETATION
70% of the employees say they are satisfied with the way of recruitment and selection
process.
Whereas on the other hand 30% are not satisfied.

Table 4: Represent the age group of recruitment and selection

AGE

GROUP

RECRUITMENT
SELECTION
NO. OF EMPLOYEES

OF ABOVE 18+ TILL20

ABOVE 20+ TILL 30

AND
40%

60%

75

AGE GROUP OF RECRUITMENT AND SELECTION

ABOVE 18+ TILL 20

40%

ABOVE 20+ TILL 30

60%

INTERPRETATION
40% of the employees are recruited and selected on the age above 18-20
60% of the employees are recruited and selected on the age above 20-30
These are the basically applied for the fresher who are selected and recruited for the star union
dai-ichi Ltd.
Table 5: Represent thefactor consider before recruitment and selection
FACTOR

TEST

BEFORE

ACADEMIC

INTERVIEWS

QUALIFICATION

WORK
EXPERIENCE

RECRUITMEN
T

AND

SELECTION
NO.
OF 15%

42%

25%

EMPLOYEES
76

18%

considering before recruitment and selection

18%

15%

test
academic qualification
interviews

25%

work experience

42%

INTERPRETATION
15% of employees are considering from test.
42% of employees are considering from academic qualification.
25% of employees are considering from interviews.
18% of the employees are considering from the work experience.
Table 6: Represent the effectives of recruitment and selection practices

EFFECTIVENES
S

GOOD

OF

VERY

INDIFFERENT

EFFECTIVE

NOT
EFFECTIVE

RECRUITMENT
AND
SELECTION
NO.
OF 46%

15%

25%

EMPLOYEES
77

14%

EFFECTIVENESS OF RECRUITMENT AND SELECTION

GOOD
VERY EFFECTIVE
INDIFFERENT
NOT EFFECTIVE

INTERPRETATION
46% of the employees feel effective of their recruitment and selection procedure
15% of the employees are very effective on basis of their recruitment and selection
process
25% of the employees feel indifferent of the recruitment and selection process
14% is not effective at all

Table 7: Represent the methods of recruitment by STAR UNION DAI-ICHI

METHODS OF EXTERNAL

EMPLOYEES

NEWS

RECRUITMEN

REFFERAL

AND

FACTOR

AND

PAPER EMPLOYMENT
AGENCIES

ADERTISEMENT

SELECTION BY
STAR

UNION

DAI-ICHI
NO.

OF 43%

23%

9%

EMPLOYEES
RECRUITS
78

25%

AND SELECT

METHODS OF RECRUITMENT AND SELECTION BY STAR UNION DAI-ICHI

EXTERNAL FACTOR

25%

EMPLOYEES REFFERALS

43%

NEWS PAPER AND

ADVERTISEMENT

9%

EMPLOYMENT AGENCIES

23%

INTERPRETATION
The feasible method applied by the Star Union Dai-ichi is the external method of recruitment and
selection where 43% of the employees find relevant to this types of method as compared to the
rest of the methods.

CHAPTER 8
79

FINDING AND SUGGESTIONS

FINDINGS
70% of the employees prefer the IBPS exam rather than the campus placement and
interviews for the recruitment and selection procedure of an employee.
With this method of recruitment and selection they are satisfied.
STAR UNION DAI-ICHI Bank applied external method for the recruitment and
selection.
STAR UNION DAI-ICHI Ltd. recruits and select employees between the ages of 18 to 30
maximumWhere the average age of employees is of under the age 25-26 maximum.

80

 STAR UNION DAI-ICHI is a centralized processed bank all over India and the 5 th largest
bank in India as well
There is strongly agreed that the H.R should be knowledgeable and experience person
STAR UNION DAI-ICHI are more feasible with the external factor of the selection and
recruitment.

SUGGESTIONS:
1. Time of study and training was less.
2. Since everything is driven from HEAD OFFICE which is at MUMBAI, thus many a
times it uses to get difficult to contact the concerned departments since they are at
Mumbai.
3. Being an agency, most of the work of SUD federal at Connaught place, is sales and
thus less exposure is given to students with FINANCE background. Thus, strongly
recommended for students who are interested in blooming their careers in Marketing and
sales.
.

81

CHAPTER 9
CONCLUSION

82

CONCLUSION
I have drawn various conclusions from this study. There has been tremendous change in the
insurance history. And with it there has been continuous growth in this sector both in Indian as
well as world context.
o The opening up of the insurance sector has changed the whole look of the industry. While
the various companies in order to face the competition is coming with new strategies.
New players are leading the sector due to their strategic management and tailor made
projects.
o From the research also I conclude that though the awareness and people opting for SUD
plans are more as compared to other private players but the latter are gaining momentum
in the market day by day.
83

o The primary reasons for buying an insurance policy, whether life or non-life is to protect
us from vagaries of life. We do not invest in insurance for returns; rather we invest in it
for regrettable necessities. Though a large proportion of policies available in the country
provide for returns, but nobody is looking for returns to the inflation rate. So what does
insurance offer, perhaps peace of mind, but even that takes time, due to poor claim
performance.
o The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing countries.
o There is no right and wrong in all this. The success of marketing insurance depends on
understanding the social and cultural needs of the target population, and matching the
market segment with the suitable intermediary segment.
o In addition a major segment of the Indian population has low disposable income,
meaning that every penny won will be obtained after a lot of persuasion and the expected
value for money is high.
o Recruitment is the essential to effective Human resource Management. It is the heart
of the whole HR systems in the organization. The effectiveness of many other HR
activities, such as selection and training depend largely on the quality of new employees
attracted through the recruitment process. Policies should always be reviewed as affected
by the changing environment management should get specific training on the recruitment
to increase the awareness on the danger of wrong placements.
o Effective recruitment is important in achieving in achieving high organization
performance and minimizing labor turnover. As of now UNION BANK Ltd has a team of
effective human resource which is efficiently managing the organization at its best.

84

CHAPTER 10
QUESTIONNAIRE
85

QUESTIONARE

This questionnaire is designed and prepared to gain understanding of recruitment and selection
procedure at STAR UNION DAI-ICHI Ltd. Kindly complete this questionnaire as objectively as
possible. The information given out is solely for the academic purpose and would be treated as
confidential. Thank you.

PERSONAL DATA
1. Sex
MALE
FEMALE

[ ]
[ ]
86

2. How have you been working at.STAR UNION DAI-ICHI LTDHow?

Less than 1 year

1 4 year
3 6 year

[ ]
[ ]
[ ]

3. Which of the qualification below do you possess?

1st degree
[ ]
2nd degree
[ ]
Others [ ]
4. Do you think that Insurance is important?
Yes

{ }

No

{ }

2) Do you have any insurance policy?

Yes

{ }

No

{ }

5. Which insurance policy do you have?

6.
Yes

Life

Non Life

Both

Do you know about Star Union Dai-ichi Life Insurance?

{ }

87

No

{ }

7. Can you rank these in terms of importance?

(5) Most Important, (4) Important, (3) Necessary, (2) Not Important, (1) Least Important
Life

{ }5

{ }4

{ }3

{ }2

{ }1

Auto

{ }5

{ }4

{ }3

{ }2

{ }1

Property

{ }5

{ }4

{ }3

{ }2

{ }1

Fire

{ }5

{ }4

{ }3

{ }2

{ }1

Theft

{ }5

{ }4

{ }3

{ }2

{ }1

Any Others

{ }5

{ }4

{ }3

{ }2

{ }1

(Pls. Specify)

8. In your Opinion, Insurance is an instrument for

a. Saving Taxes
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree
b. Safe Investment
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree
c. Risk Management
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree
d. Greater Returns
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

88

e. Protection
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

9. Which companies insurance policy you prefer the most (rank them)?
a)

Star Union Dai-ichiLife

b)

L.I.C

c)

ICIC Prudential

d)

Aviva

e)

HDFC Standard Life

f)

Any Other ______________________ (Please Specify)

RECRUITMENT AND SELECTION

1. WHAT TYPE OF METHODS DO YOU APPLY THE MOST FOR THE
SELECTION AND RECRUITMENT

External

Internal

2. RECRUITMENT AND SELECTION PROCESS IS EFFECTIVE FOR THE

ORGANIZATIONAL OBJECTIVE?

Strongly agree

[ ]

agree

[ ]

strongly disagree

[ ]
89

disagree

[ ]

3. WHAT ARE THE AVERAGE AGE OF RECRUITMENT AND SELECTION IN

STAR UNION DAI-ICHI?

17 - 25

18 30

25 35

25 26

4. WHICH IS THE BEST SOURCE FOR RECRUITMENT AND SELECTION?

INTERNAL
EXTERNEAL
CONSULTANT
ELECTRONIC MEDIA
OTHER

5. RECRUITMENT AND SELECTION PROCESS DEPEND ON RECRUITER?

STRONGLY AGREED

AGREE

DISAGREED

STRONGLY DISAGREED

6. RECRUITER SHOULD BE KNOWLEDGEABLE AND EXPERIENCE?

STRONGLY AGREED

AGREED

STRONGLY DASAGREED

DISAGREED

90

91

92