SUMMER TRAINNING PROJECT REPORT

ON
“HRM IN INSURANCE & CLAIM IN LIFE INSURANCE”

SUBMITTED TO: MR.RUPINDERA YADAVA

(SR. BRANCH MANAGER)
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD
PROPERTY NO.19,3RD FLOOR
SECTOR-12A,OPP. BAL BHARTI SCHOOL

SUBMITTED BY: RAMESH

(BATCH 2017-19)

MANAGEMENT EDUCATION RESEARCH INSTITUTE

D - BLOCK, JANAKPURI, NEW DELHI –110058
 EXECUTIVE SUMMARY

This is the project focuses on “HRM in Insuarance & Claim In Life Insuarance” done by insurance
company in India. The Insurance sector is one of rapidly growing in financial sector. As an economy grows
over the years, insurance sector intensifies and broadens its reach

"If you want 10 days of happiness, grow grain. If you want 10 years of happiness, grow a tree. If you want
100 years of happiness, grow people."

OBJECTIVE OF THE STUDY

The phenomenal expansion of insurance sector:
The major insurance companies in our country have expanded their branches phenomenally in the
last few decades. Also, many new insurance companies are being established all over the country

The objective of the study is therefore, to examine the insurance companies, their functioningand
asses their viability.
 ACKNOWLEDGEMENT
With regard to my Project, I would like to thank each and every one who offered help, guideline and
support whenever required. Its really appreciable for providing such useful knowledge from our superiors

First and foremost I would like to express my deepest gratitude to MR. RUPENDER YADAVA,
MR. ABHINAV, Managers at Bajaj Allianz, for their valuable time and advice in the making of this
project. Without their support and guidance, the completion of this project would not have been possible.

The faculty members of M.E.R.I , who provided me with valuable insights into the completion of this
project. Especially, my mentor MR K.K SHARMA , who extended his guidance and support for bringing
out this report in the best possible way.

I thank my institute, M.E.R.I., for providing me a platform to work with the leading business house in
India. I also want to thank my batch mates who have helped me in getting acquainted with various
aspects during the project.

Finally, not forgetting the staff of BAJAJ ALLIANZ, I thank them all, for providing me with all the
information required and co-operating in every possible way that they could.
 TABLE OF CONTENTS
SERIAL CONTENT PAGE
NO. NO
1 INTRODUCTION
 INSUARANCE INDUSTRY
 HRM
 LIFE INSURANCE
2 INDUSTRY OVERVIEW
3 ACTIVITIES OF HRM
4 PROCESS OF HRM
5 CASE STUDY
6 RESEARCH METHODOLOGY
7 CONCLUSION
8 SUGGESTIONS
9 BIBILIOGRAPHY
Introduction

 INSUARANCE INDUSRTY
 HUMAN RESOURCE MANAGEMENT
 LIFE INSURANCE
Introduction of Insurance:
The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and
33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector
company. Apart from that, among the non-life insurers there are six public sector insurers. In addition to these,
there is sole national re-insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.
Out of 33 non-life insurance companies, five private sector insurers are registered to underwrite policies
exclusively in health, personal accident and travel insurance segments. They are Star Health and Allied Insurance
Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd,
Religare Health Insurance Company Ltd and Cigna TTK Health Insurance Company Ltd. There are two more
specialised insurers belonging to public sector, namely, Export Credit Guarantee Corporation of India for Credit
Insurance and Agriculture Insurance Company Ltd for crop insurance.

Insurance has come up as a very important finanacial services is most of the part of the world. The insurance is
considered as one of the important segment in an economy for its growth and development. This industry provides
long term funds that are essential for the development of basic infrastructure. The Indian Insurance industry is
more than 150 years old. The industry has witnessed many phases of the working form the days when there were
many private sector companies initially and they moved to nationalization and again to the private sector. Being
one of the segments of financial sector, it has in the recent past gone through transformation and change including
the passing of IRDA (Insurance Regulatory & Development Authority) Act, 1999. There have been many reforms
in the past in the Banking & Capital Market segments, which for the first time are being witnessed after the
passage of IRDA Act in the Insurance segment. Insurance is basically defined as, “a financial agreement that
redistribute cost of Cost of Unexpected losses”. Today stands both as a service and the industry in its own right.
Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and
proliferation of insurance schemes.
The domestic life insurance industry registered 10.99 per cent y-o-y growth for new business premium in 2017-18,
generating a revenue of Rs 1.94 trillion (US$ 30.1 billion).
Gross direct premiums for non-life insurance industry increased by 17.54 per cent y-o-y in FY18.
Investments
The following are some of the major investments and developments in the Indian insurance sector.

 Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion) through public issues
in 2017.
 In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth US$ 903 million.
 India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a
robust insurance distribution network in the country through a new distribution exchange platform.
Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance industry. Some of them are as
follows:

 National Health Protection Scheme will be launched under Ayushman Bharat to provide coverage of up to
Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families.
 Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2017-18.
 The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue redesigned initial
public offering (IPO) guidelines for insurance companies in India, which are to looking to divest equity
through the IPO route.
 IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that are issued by
banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.

Introduction of Human Resource Management:

Human resource the invisible, intangible assets, are the most valuable assets in any industry, more so in case of a
service industry like Insurance. It is now well recognized that Human Resource Management are an integral part of
business strategy determines the direction which the organization is likely to take in relation to its environment in
over to achieve sustainable competitive advantage.
HRM should ensure that every strategy that the organization visualize is supported by matching response from its
15 employees who in turn to be supported by consistent human resources policies. The important and value of
human assets were recognized in the early 1990. When there was a major increase in employment in the form of
service, technology and other knowledge base sector.
In this firm the intangible assets, specially the human resources, contributed significant by to the building of
shareholders value. The critical success factor for any knowledge base company is it highly skilled and intellectual
work force. The fundamental truth is that no organization can achieve anything with out its people. Whether is a
matter of capital equipment, distribution channels or resource allocation or for that matter marketing? It always
comes down to “people” therefore people are the building block of any organization. This may sound some what
simplistic but the fact is the may organization failed to seek that link between people and business results.
Perhaps, this is based on the presumption that “business strategy” is more important than “people”. As a result we
do see that in there annual reports ,companies vociferously declare “our people are our greatest assets” 16 but at
the same time hold back when it comes to making the investment in terms of money and energy in there people.
While business strategy are base on quantitative factors link growth, competition, position, marketing, profitability
etc.
HRM strategies involve most of qualitative factor like commitment, motivation, and good employee relations. It
remains for the HRM process to help to design system that will help the organization to have staffed with the
requisite skills need to success full implement its business strategy. Unprecedented development of science and
technology, knowledge its very discipline is fast multiplying. It is said that in every sphere of management the
techniques are just double in comparision of the last half decade. New theories and practices are being adopted
very rapidly which are the result of mechanization and renovated systemization f human factor. It a great thrust of
computerization. The increasing use of sophisticated information processing technology has changed the patter of
planning, decision making and controlling almost beyond recognition.

Introduction to life insuarance:

Life insurance is an agreement between you (the policy owner) and an insurer. Under the terms of a life insurance policy, the
insurer promises to pay a certain sum to a person you choose (your beneficiary) upon your death, in exchange for your
premium payments. Proper life insurance coverage should provide you with peace of mind, since you know that those you
care about will be financially protected after you die.
INDUSTRY PROFILE
Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance is a joint venture between Bajaj Finserv Ltd and Allianz SE. While Bajaj
Group has more than 9 decades of experience in the local market, Allianz SE is a leading insurance
conglomerate globally and one of the largest asset managers in the world with over 125 years of
experience in the financial services sector and presence in more than 70 countries. Bajaj Allianz Life
Insurance Company was incorporated on 12th March 2001 and started its operations on 3rd August
2001 with a commitment to offer premium financial solutions providing financial security to
individuals and their families.

At the time of its inception, Bajaj Allianz Life focused its operations around its tag line “Jaisi zaroorat
waisa insurance”. In 2008, the Company expanded its gamut of products to include different customer
needs and adopted a new tagline “Jiyo Befikar”, meaning ‘live worry free’. With its products and
service offerings the Company vies to be an enabler of a worry free life for its patrons with apt life
insurance solutions.
At Bajaj Allianz Life, customer delight is our guiding principle - be it product development,
distribution, sales process, claims settlement or customer servicing; customer satisfaction is our utmost
priority. As a result, the products offered by the company strategically fit into the financial plan of the
customers and cater to their needs. Our widespread multichannel distribution network spans across
various geographic and income segments to ensure maximum financial inclusion. The Company is
also a leading private life insurer in terms of financial inclusion in India with a strong presence in the
rural and social sector. Ensuring world class solutions by offering customized products with
transparent benefits has helped us create a niche for ourselves not only in the Indian life insurance
sector but also in our customers’ heart.
 Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited
(recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise,
stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority
(IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including
Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110
crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.
As on 31st March 2014, Bajaj Allianz General Insurance maintained its premier position in the
industry by achieving growth as well as profitability. The company garnered a premium income of Rs.
2866crore, achieving a growth of 11 % over the last year. Bajaj Allianz has made a profit before tax of
Rs. 149.8 crore and has become the only private insurer to cross the Rs.100 crore mark in profit before
tax in the last three years. The profit after tax was Rs.95crores, which is also the highest by any private
insurer.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick
communication and response in over 200 towns spread across the length and breadth of the country.
From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the
Head Office at Pune.

Vision
 To be the first choice insurer for customers
 To be the preferred employer for staff in the insurance industry.
 To be the number one insurer for creating shareholder value

Mission
As a responsible, customer focused market leader, we will strive to understand the insurance needs of the
Consumer and translate it into affordable products that deliver value for money
Key Company highlights for FY’17 that showcase its financial stability and strength
» Claim Settlement Ratio is 99.16 % (Individual + Group Business combined)
» Asset under Management is INR 49,270Crore with a 11.7% Growth
» Solvency Ratio is 582%* and the mandated solvency ratio for the industry is 150%
» Number of Lives Covered is 4.4 Crores & since inception is close to 23 crores
» A non-bank-linked life insurer with a pan-India network with 638 branches

The Company has bagged several prestigious awards in FY’2017 like:

» The Economic Times Best Corporate Brand
» ASSOCHAM’s National Brand Summit as Most Valued B2B Brand National Award for
marketing Excellence in BFSI Sector
» ACEF Awards for CSR/ Rural Initiatives & Marketing Capabilities, Most Admired
Customer Engaged Brand
» 7th CMO Asia Awards for Branding & Marketing
» Asia Banking Financial Services 7 Insurance Excellence Award
» LIMRA SilverBowl Award for Best Social Media Usage outside USA
» BBC Knowledge Award for Best Social Media Marketing for #Ifs of Life
» Inkspell Drivers of Digital Award for Best eCommerce Website
Company’s History
Bajaj Allianz Life Insurance Company:

Allianz AG:
Allianz group was founded in 1890 and is one of the world's leading insurance companies with over 100
year's experience in insurance and related services. It is also the largest insurer in Europe. Allianz group
has multi-local structure and presence in over 70 countries. The key business areas of Allianz group
include General Insurance (property, engineering, marine, motor, casualty and miscellaneous),
Reinsurance, Risk Management, Life & health insurance, Asset Management and Pension Funds
Management.

Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj Trading
Corporation. Initially it started by assembling two and three wheelers in collaboration with Piaggio of
Italy. After the expiry of the Agreement in 1971 the two and three wheelers acquired the brand name of
Bajaj. The strength of the company lies in its strong brand image and ability to offer value for money
products leveraging on its large-scale operations.

The Joint Venture

Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto and
German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the Joint Venture, and
has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is the CEO of the company.
Bajaj Allianz General Insurance will leverage the customer base and expertise of Bajaj Auto Ltd and
Allianz.
Milestones;
Bajaj Allianz has received "AAA rating, from ICRA Limited, an associate of Moody's Investors
Services, for Claims Paying Ability .This rating indicates highest claims paying ability and a
fundamentally strong position

Bajaj Allianz Life Insurance has been awarded the prestigious SKOCH Order of Merit for Micro
Insurance Segment Leadership, Digital Claim Settlement Process and Digital Initiatives for
Customer Services.

Bajaj Allianz Life Insurance has been recognized with the "Best Digital Customer Experience
Initiative" for Life Assist Customer Portal at the Customer Loyalty & Experience Awards 2018.
The awards were a part of the 11th edition of The Customer FEST Show hosted by Kamikaze and
recognizes the digital initiatives taken by us for providing customers an enhanced digital
experience.

Bajaj Allianz Life Insurance has been conferred with the prestigious "2016-17 Vision Awards for
Annual Report Competition" by the League of American Communications Professionals (LACP).
We were ranked amongst the Top 100 Annual Reports worldwide for the fiscal year 2016-17 and
also received the Gold Award for excellence in the industry for annual report development.

Bajaj Allianz Life Insurance has been recognized by SiliconIndia Magazine as ‘Brand of the Year
2017’ under the Insurance category. The recognition comes after an evaluation of 1000+ Brands
across various industries, on the basis of a Brand's achievements for the quality of services extended
to its consumers.
Product range of company/industry
Bajaj Allianz Life Insurance Products

o Isecure Plan
o Future Gain
o Retire Rich Plan
o Young Assure Plan
o Save Assure Plan
o Life Long Assure Plan
o iSecure Loan Plan
COMPANY QUATERLY BALANCE SHEET FOR THE
LAST TWO FINANCIAL YEARS
ACTIVITIES OF HRM IN INSURANCE
HUMAN RESOURCE MANAGEMENT (HRM) in Life Insurance Companies is a
management function that helps manager’s recruit, select, train, and develops members for an
organization. Obviously, HRM is concerned with the people’s dimension in organization.

HUMAN RESOURCE MANAGEMENT is also a management function concerned with

hiring, motivating, and maintaining people in an organization. It focuses on people in
organizations.

Development of human capital is important for any organization especially for organization
whose activities resolve around special human interactions.
Along with products and services the new insurers need people with the right set of knowledge,
skills and aptitude for insurance. The persons who are involved in selling the product and those
who are doing the back office work need to equip themselves with never skills and insights into
every aspect of companies functioning. They have a daunting task of exploiting potential in the
industry and at the same time bring good risks to the company for providing insurance coverage.
They have to retain the existing customers for which they need to have better understanding of
products and services by creating healthy internal environment with group harmony.

Existing companies will have to frame their human resources policies to retain the competent and
motivated staff since new entrants will be eying them by offering lucrative salaries. The scope of
human resource management is very vast. It is connected with all major activities in the working
life of a 32 worker.
HRM is connected with every other department as human resources are the requirements of all
departments in the life insurance organizations.

HRM in Life Insurance Companies covers the following:

• Human resource planning
• Job analysis and design
• Recruitment and selection
• Orientation and placement
• Training and development
• Performance appraisal
• Compensation management
• Career planning, promotions and transfers
• Motivation and communication
• Employees Welfare
• HRIS – Human Resource Information System
• Employee safety and health
• Industrial relation etc………..
 HRM involves a large numbers of functions or activites. This number varies according ti the
size and needs of the organiation. The activites or funnctions of HRM affect the organisation
internally.
However, the extenal environment affects HRM functions.

The major activites of HRM in Life Insurance Companies areas depicted below:

HUMAN RESOURCE PLANNING:

HRP is the processs of assessing the organisation’s human resources needs in the light of
organisational goals and chaning cinditions and making plans to ensure that a competent,
motivated workforce is employed. HRP is very
important in these mordern times where everything is fluid and chages are occuring at great
speed.

Importance of HRP:
• Future personnel needs
• Parts of strategic planning
• Creating highly talented personnels
• Intrenational strategies
• Foundations for personnel functions
• Incresing investment in human resources
• Resistence to change and move

ORGANISATIONAL AND JOB DESIGN:

An important activity of HRM is developing an organisation which caters for all the activites
required, groups them together in way which encourages integration, cooperation, and provides
for effective communication and decision making. Job design is concerned with deciding on the
content and accountabilities of jobs in order to motivate employees and maximise job
satisfaction.

JOB ANALYSIS:
Job analysis is the process of cleecting job related information. Such information helps in the
preparation of job description and job specification.
It is defined as ………. ‘Job analysis is the procss of studyong and collecting information
relating to the operations and responsibilities of a specific job. The immediate products of this
analysis are job descriptions and job specifications.’

Specifically, job analysis involves the following steps:

• Collecting and recording job information
• Checking the job information for accuracy
• Writing job descriptions based on the information
• Using the information ti determine the skills, abilities and knowledge that are required on job
• Updating the information from time to time
STAFFING:
Staffing or aqusition of human resources is another activity of human resource management.
Staffing activites detemine the composition of an organisation human resources. Staffing
activites include: attracting qualifiued people to the organisation, selecting from amo A formal
definition of training and development is …… ‘it is any attempt to improve current or future
employee performance by increasing an employees ability to perform through learning usually
by changing the employees attitude or increasing his or her skills and knowledge. The need for
training and development is determined by the employees performance deficiency, computed as
follows: Training and development need = Standard performance – Actual performance

PERFORMANCE APPRAISAL:
Performance appraisal and review is ongoing evaluation of individual and group contributors to
the organisation and the communication of those evaluations to the npersons involved. This
HRM function is carried out for a number of purposes: to provide feedback about performance,
to detemine the need for training, to make decisions about promotions, pay increases and so on.
It has comprehensive definition which is as follows: 38 “Performance appraisal is a formal,
structure system of measuring and evaluating an emploees job related behavior and outcomes to
discover how and why Organisations compensate employees through wages and salaries,
bonueses and benefits, such as health insurance, vacation time, and pension programs. The
presence or absence of rewards and recognition is important to employee morale and
performance.

Compensation decisions include determining: ensuring fair and equitable pay differences among
employees, designing a pay pakagese relative to that of its competitiors, forms of compensation
and so on.

1. MAINTAINING EFFECTIVE EMPLOYER-EMPLOYEE RELATIONSHIP:

An important function of HRM is to promote harmonious relationships between the management and
employees. The aim of HRM is to increase cooperation, trust and to provide to involve employees
actively in the companys affairs. This function of HRM includes addressing employees grievances
and taking suitable steps towards solving them.

2. HEALTH AND SAFETY MANAGEMENT:

This function of HRM includes activites and events that serve to protect organisation members from
illness and physical dangers in the workplace and to assist them with their physical and emotional
health. For many organisations, protecting the health and safety of humana resouyrces is aprime
social responsibility. This HRM functions serves to preserve the human resources of the organisation.

3. EMPLOYEE PARTICIPATION:
This is a relatively new function of HRM. Employee participation focus on giving employees a
voice, sharing information with them and consulting them on matters of mutual interest. Employee
participation is an impoartent step in establishing industrial democracy.
4.ORGANISATION IMPROVEMENT:

Organisations must constantly improve themselves due to the emergence of new ideas regarding
productivity, rapidly changing technology and competitionfrom the organisations.

5.HR AUDIT:
An HR audit is a tool for evaluating the personnel activites of an organsation. The audit may
include one division or an entire company. It gives feedback about the HR functions to operating
managers amd HR specialists. It also provides feed back about how wll managers are meeting
their HR duties. In short, the audit is an overall quality control check on HR activites in a
division or company and an evaluation of how these activittes support the organisations
strategy.specifically, an HR audirt covers the following areas:

• Audit of human resource function,

• Audit of maangerial compliance,
• Audit of thuman resource climate,
• Audit of corporate strategy.

The fuction of human resources manager is to ensure the flow of events through which people ijn
the organisation improve the organisations effectiveness. He has to constantly lookout for ways
to improve the organisation through employee training, implementing work redesign programs
and so on.
PROCESS OF HRM
The Process of Human Resource Management Planning
The human resource planning process, demands the HR manager to first understand the business
requirement. Only if he comprehends the nature and scope of the business, will he be able to
employ those who will deliver the required performance. When it comes to engaging the
manpower, the manager should have a keen eye for spotting the talent. It ensures that the
workforce is competent enough the meet the targets. Additionally, the existing 'talent pool' in the
workplace should be taken into consideration, so that people with complimentary skills can be
employed. The functions of the HR manager are varied; he has to assess the currently employed
workforce and their shortcomings. Identifying these shortcomings goes a long way in choosing
an efficient workforce. Human resource planning process, thus, can be considered as one of the
strategic steps for building the strong foundation of an efficient workforce in an organization

STEPS IN HUMAN RESOURCE MANAGEMENT PLANNING.

1.Determining the numbers to be employed at a new location

If organisations overdo the size of their workforce it will carry surplus or under utilised staff.
Alternatively, if the opposite misjudgment is made, staff may be overstretched, making it hard
or impossible to meet production or service deadlines at the quality level expected. So
the questions we ask are:

How can output be improved your through understanding the interrelation between productivity,
work organisation and technological development? What does this mean for staff numbers?
•
What techniques can be used to establish workforce requirements?
•
Have more flexible work arrangements been considered?
•
How are the staffs you need to be acquired?The principles can be applied to any exercise to
define workforce requirements, whether it be a business start-up, a relocation, or the opening of
new factory or office.

2. Retaining your highly skilled staff

Issues about retention may not have been to the fore in recent years, but all it needs is
for organisations to lose key staff to realise that an understanding of the pattern of resignation is
needed. Thus organisations should:

 monitor the extent of resignation

 discover the reasons for it

 establish what it is costing the organisation

 compare loss rates with other similar organisations.

Without this understanding, management may be unaware of how many good quality staff
is being lost. This will cost the organisation directly through the bill for separation, recruitment
andinduction, but also through a loss of long-term capability.Having understood the nature
and extent of resignation steps can be taken to rectify the situation.These may be relatively cheap
and simple solutions once the reasons for the departure of employees have been identified. But it
will depend on whether the problem is peculiar to your own organisation, and whether it is
concentrated in particular groups (e.g. by age, gender, gradeor skill)

3. Managing an effective downsizing programme

This is an all too common issue for managers. How is the workforce to be cut painlessly, while
atthe same time protecting the long-term interests of the organisation? A question made all
theharder by the time pressures management is under, both because of business necessities
andemployee anxieties. HRP helps by considering:

 the sort of workforce envisaged at the end of the exercise

 the pros and cons of the different routes to get there

 how the nature and extent of wastage will change during the run-down

 the utility of retraining, redeployment and transfers

what the appropriate recruitment levels might be.Such an analysis can be presented to senior
managers so that the cost benefit of various methodsof reduction can be assessed, and the time
taken to meet targets established.If instead the CEO announces on day one that there will be no
compulsory redundancies andvoluntary severance is open to all staff, the danger is that an
unbalanced workforce will result,reflecting the take-up of the severance offer. It is often difficult
and expensive to replace lostquality and experience.

4. Where will the next generation of managers come from?

Many senior managers are troubled by this issue. They have seen traditional career
pathsdisappear. They have had to bring in senior staff from elsewhere. But they recognise that
whilethis may have dealt with a short-term skills shortage, it has not solved the longer term
question of managerial supply: what sort, how many, and where will they come from? To
address thesequestions you need to understand:

 the present career system (including patterns of promotion and movement, of

recruitmentand wastage)
 the characteristics of those who currently occupy senior positions
the organisation’s future supply of talent. This then can be compared with future requirements,
in number and type. These will of course be affected by internal structural changes and external
business or political changes. Comparing your current supply to this revised demand will show
surpluses and shortages which will allowyou to take corrective action such as:

 recruiting to meet a shortage of those with senior management potential

 allowing faster promotion to fill immediate gaps

 developing cross functional transfers for high fliers

 hiring on fixed-term contracts to meet short-term skills/experience deficits

 reducing staff numbers to remove blockages or forthcoming surpluses.

How can HRP be applied?

The report details the sort of approach companies might wish to take. Most organisations
arelikely to want HRP systems:

 which are responsive to change

 where assumptions can easily be modified

 that recognise organisational fluidity around skills

 that allow flexibility in supply to be included

 that are simple to understand and use

 which are not too time demanding.To operate such systems organisations need:

 appropriate demand models

 good monitoring and corrective action processes

 comprehensive data about current employees and the external labour market

 an understanding how resourcing works in the organisation.

If HRP techniques are ignored, decisions will still be taken, but without the benefit
of understanding their implications. Graduate recruitment numbers will be set in
ignorance of demand, or management succession problems will develop unnoticed
Human resource is one of the natural resources of any country's economy. It is the wealth of
thecountry. In the context of insurance, human resource is of greater importance. \
Management.The success of any insurance company largely depends on efficient human resourc
emanagement, apart from operations, marketing and sales, the HR department manages all
theefficient people working in operations and marketing divisions in any organization.

Need for HRD and Its Management in insurance sector

1. There are many changes in the insurance sector on account of changes in the industry due to the
entry of new insurance companies. Therefore, it has become a necessity to recruit, train and deploy
all level efficiently, for better performance and success. This is the basic function of HRD, which
includes the concept of HRM.

2. In view of the changes in the political scene in the recent past, seeping changes are expected to
take place in the insurance industry. It is expected that only a few insurance companies will remain
after a series of amalgamations and mergers, not only in the Indian insurance industry, but also at
the international level.

3. Emergence of new private sector insurance companies, competition and self-regulation has
necessitated efficient Human Resources Management in insurance companies. HRM is a continuous
process, involving selection, recruitment and training on an "on going basis" for the staff and their
deployment in the right place. The activity is called HR development.

EFFICIENCY IN INSURANCE SECTOR WITH HRM

1.The crucial factors behind successful insurance companies will be continuous and
sustained build up of skills, knowledge, education and attitudes among people working in the
companies, particularly the frontline staff, working in the branches.

2. It is possible through professionalization, which is an internal part of HRM. The staff

should be motivated and encouraged to practice professionalism for their personal growth and
thus contribute to the organization's growth.

3. Building efficiency is, therefore largely dependent on the best selection process adopted by the
HR department. There is imperative need to build up skills within an organization for the
successful managing of available HR.

4. Insurance companies have vast human resource specialized in multiple disciplines liketechnol
ogy, law, sales, underwriting, administration, risk management etc.
The basic function of HR is to manage them efficiently for continuous success. For building up
Better efficiency in insurance sector

HRM have to follow them these two function

Two functions
:-1) Emphasis on job description and job Assignment.2) Response to challenges in future.

1.EMPHASIS ON JOB DESCRIPTION AND JOB ASSIGNMENT

One of the important functions of HR department is to ensure proper definition for workers in the
insurance companies. The staff should know about the vacant positions and the skills required
for those particular jobs. Accordingly, people should be recruited to that particular job. The
allotment of a job to a right person, who has the required skills is called job assignment. If this
function is not properly performed by the HR department, people in all departments will be in a
chaotic situation. This will impair their performance and subsequently customer service.
Improvement in performance and skills of existing employees can be achieved through recruiting
the right person for the right place. Thus, job description and job assignment are parallel concept
requiring attention.

2. RESPONSE TO THE CHALLENGES IN FUTURE

Insurance companies should chalk out a wide range of strategic responses to the futurechallenges
. They have to look into the structure, procedures and processes of the systems and make policies
accordingly, to ensure necessary changes. It is the foremost function of HRM. Insurance
companies have to convince their employees that that a challenge is an opportunity to prove
oneself. Companies in India have to utilize this opportunity before the competition overtakes
them and people in banks have to respond immediately to the challenges.This requires the HR
department to work efficiently. Insurance companies are in the service industry, where the raw
material is HR.

HRM, therefore, emerges as a very basic and important element for strategic response to the
changes that are taking place in the insurance sector.HR departments should take it seriously
to formulate policies to meet these challenges.HRD is a critical management function. Each
manager should have initiative, awareness, co-ordination and facilitation to perform his role.
This is critical function of HRM.
The core function of HRM in the insurance industry is to facilitate performance improvement,
measured not only in terms of financial indicators of operational efficiency but also in terms
of the quality of financial services provided.
Factors like skills, attitudes and knowledge of the human capital play a crucial role indeterminin
g the competitiveness of the financial sector. The quality of human resources indicates the ability
of insurance companies to deliver value to customers. Capital and technology are replicable but
not the human capital which needs to be valued as a highly valuable resource for achieving that
competitive edge. The primary emphasis needs to be on integrating human resource
management strategies with the business
strategy.HRM strategies include managing change, creating commitment, achieving flexibility an
dimproving teamwork. The other processes representing the overt aspects of HRM, viz.recruitme
nt, placement, performance management are complementary.HRM has a crucial role to play in
insurance sector. It acts as backbone for the insurance sector, because it only lays the structure
for the organizations operations, functioning and working. Even with the advent of high
technology it will have a prominent role to portray.
CASE STUDY
1.FUTURE GENERALI TOTAL INSURANCE SOLUTION

The company chosen for the project is

“FUTURE GENERALI INDIA LIFE INSURANCE”.
The head office of the company is located in Mumbai.
ABOUT COMPANY:
Future Generali India Life Insurance Co. Ltd. is one of the rapidly growing
Insurance companies in India. The Company is a joint venture between the India-
based Future Group and the Italy-based Generali Group. Future Generali group is
present in both the Life and Non -Life businesses in India as Future Generali India
Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd. Generali
Group was established in Trieste on December 26, 1831. It is an international
group working in more than 40 countries with insurance companies, financial
companies and real estate sectors. After doing business in Central Eastern
Europe, Generali Group has started to develop business in the principal markets of
the Far East, including China and India. Generali Group r a n k s a m o n g t h e t o p
three insurance groups in Europe and the 30th largest company in the
Fortune 500 international ranking.
RECRUITMENT & SELECTION PROCESS:
Their recruitment process includes both internal and external methods.

INTERNAL METHODS:
The company uses: -EMPLOYEE REFERRALS- It is a recruitment method in which
the current employees are encouraged and rewarded for introducing suitable recruits from
among the people they know. The logic behind employee referral is that “it takes one to know
one”. The post for which they prefer this process is SALES MANAGER, SENIOR
SALES MANAGER, and ASSISTANT SALES MANAGER. Benefits of this method are as
follows:
 Quality Candidates
 Cost savings
 Faster recruitment cycles.

Incentives to current employees On the other hand it is important for an organization to ensure
that nepotism or favoritism does not happen, and that such aspects do not make inroads into the
recruitment process. JOB POSTING-For job posting they use ‘Intranet’. Job Posting is an
arrangement in which a firm internally posts a list of open positions (with their descriptions
and requirements) so that the existing employees who wish to move to different
functional areas may apply. It is also known as Job bidding.
It helps the qualified employees working in the organization to scale
newheights, instead of looking for better perspectives outside. It also helps organization to retain
its experienced and promising employees.
EXTERNAL METHODS:
1.FORMER EMPLOYEES- The company hires back its best ex-employees especially for Senior
Sales Manager post.

2.C O L L E G E S - From colleges they recruit candidates for Sales Manager & SalesExecutives posts.
The minimum salary package for the freshers is 1.8 lacs for Area SalesManager,2.5 lacs for Sales
Manager,3.5 lacs for Senior Sales Manager.

3. JOB FAIR -Recruiting method engaged in by a single employer or group of employers to

attract the large number of applicants to one location for interviews.

4. ADVERTISING-Advertisements are the most common form of external recruitment. They

can be found in many places (local and national newspapers, notice boards,
recruitment fairs) and should include some important information relating to the job (job title,
pay package, location, job description, how to apply-either by CV or application form, etc).
Where a business chooses to advertise will depend on the cost of advertising and the coverage
needed i.e. How far away people will consider applying for the job. Advertising can be
through both PRINT and ELECTRIC MEDIA.
The company uses PASSES technique for selection
.P-Prospect
A-Approach
S-Seminar
S-Screening
E-Evaluation
S-Selection

PROSPECT-
They check whether the candidate is fit for the job or not
APPROACH-
The Company approaches with the candidates through emails or telephone.
SEMINAR-
The Company then conducts seminar. For major seminars they hire hotels but for
small ones they prefer company’s training room
SCREENING-
They communicate the job profile to the filtered candidates.
EVALUATION-
They give them basically the sales target, or evaluate them on the basiso f e x p e r i e n c e , a g e
f a c t o r , c o m m u n i c a t i o n s k i l l s . T h i s i s a k i n d o f W O R K S A M P L E TESTING.
SELECTION-
Finally they select the candidate on the basis of the results of evaluation.
SELECTION
 INTERVIEWS:

They prefer STRUCTURED INTERVIEWS in which they prefer questions regarding

family background, work experience and interpersonal skills.
 METHODS OF INTERVIEWS:
 ONE-ON-ONE INTERVIEW-

Applicant meets one by one with the interviewer. Interview process takes place as follows:
 INITIAL BRANCH LEVEL INTERVIEW-

Branch manager takes such interviews mainlyto select the localities and decide who are best
suited for the job.
 REGIONAL BRANCH INTERVIEW

-Regional branch manager takes the interview & hisdecision to select or reject the candidate is
final.
2.MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd.

is a joint venture between Max India Limited, one of India's leading multi-business corporations
and New York Life International, the international arm of New York Life, a Fortune 100
company. The company has positioned itself on the quality platform. In line with its
vision to be the most admired life insurance company in India
, it has developed a strong corporate governance model based on the core values of excellence,
honesty, knowledge, caring, integrity and teamwork. Incorporated in 2000, Max New York Life
started commercial operation in April 2001. In line with its values of financial responsibility,
Max New York Life has adopted prudent financial practices to ensure safety of policyholder's
funds. The Company's paid up capital as on 30thApril, 2009 is Rs 1,786 crores. Max New York
Life has multi-channel distribution spread across the country. Agency distribution is the primary
channel complemented by partnership distribution, banc assurance, alliance marketing and
dedicated distribution for emerging markets. The Company places a lot of emphasis on its
selection process for agent advisors, which comprises four stages - screening, psychometric test,
career seminar and final interview. The agent advisors are trained in-house to ensure optimal
control on quality of training. The company currently has around 71,229 agent
advisors at 715 offices across 389 cities. The company currently has more than 10,494
employees.
The SIX Differentiators
1)SELECTION PROCESS
The selection process of Max New York Life is designed to help the candidate and the
organization make a decision in mutual best interest. The first step in the process is an initial
interview This is followed by a test of numerical ability. Candidates who make the cut are
invited to attend a career seminar. The procedure facilitates a process of discovery, as both sides
develop an understanding of each other’s profile and requirements. The final stage in the
selection process is an assessment of the candidate's natural market and potential for growth.

2)TRAINING PROCESS
Max New York Life has the finest training program for agents in the industry. They run training
and development programs for agents throughout their career. The training consists of a two-year
formal classroom based program. Max New York Life has two full-time professional trainers in
each office whose sole job is to train and guide new agents.
The success of their training programs owes a lot to the strength of their partner, New York Life.
The training program developed by New York Life in the United States is widely recognized as
the best in the insurance industry. They have customized this outstanding program for the Indian
market. In the United States, New York Life had more members in the Million Dollar Round
Table, the worldwide organization of top professionals in the insurance industry, for 50
consecutive years. Since 2001, Max New York Life has had more qualifiers for the prestigious
Million Dollar Round Table than all the other private sector insurance companies taken together.

3)MANAGEMENT LOYALTY
One of the many advantages of working with Max New York Life is that managers
are not allowed to sell insurance products to their own customers. Compensation in
management is derived entirely from the success of agents and the overall growth of the
organization. Managers at all levels are totally committed to the success of agents and
do not pursue any conflicting goals.

4)PRODUCT RESEARCH
No organization can claim to have the number one product in the insurance
industry for a long period of time. It is a matter of great pride that our products
have always been rated among the best in the industry. These products have
been developed after extensive research of the Indianmarket and are designed to meet an
individual’s needs at every life stage.

5)CONTRACT
The Agent's Contract is designed to attract efficient professionals and retain them for a long
time by compensating them generously. As an agent you can count on the support of Max New
York Life at all times to help you earn a good income today and create a secure retirement
for tomorrow.
6)GREAT WORK ENVIRONMENT
Max New York Life is committed to working in a high-tech environment. In the United
States, New York Life is noted for its leadership in using technology to provide the very best
incustomer service and employee support. The same systems have been adapted for India to
offer simple, easy-to-understand illustrations for the most complex products.

Work Profile
This is an entrepreneurial opportunity with flexible working hours and the potential to earn
unlimited income without any capital investment. As an agent with Max New York Life, you
are a financial advisor, businessperson and your own boss. The only limit to your growth is
your own imagination and drive. The Role:

 Identify prospects and conduct need analysis

 Provide customized solutions for long term financial protection and wealth creation
 Close sales
 Deliver the policy
 Provide after sales service and build references for future sales

Benefits
A career at Max New York Life has innumerable advantages. With low start up investment you
can become a part of a world-class organization and make a positive difference to people’s lives.
Our agents sell more policies and make more money than agents of any other life insurance
company. The financial rewards are in the form of

 Commissions on new sales

 Ongoing renewal commissions/
 Performance linked bonus
 Referral commissions
 Training reimbursement
CLAIM IN LIFE INSURANCE
How To Make a Claim - Life

Formalities for a death claim

When a person with a life insurance policy – called a life assured – dies, a claim intimation
should be sent to the insurance company as early as possible. The assignee or nominee under the
policy can do this. So can any close relative or the agent who handles the policy.

The claim intimation should contain information like the date, place and cause of death. The
insurance agent has the duty to help the life assured’s family/ assignee to deal with the insurance
company to fulfil the formalities for a claim.

The insurance company will respond to this intimation and will ask for the following documents:

 Filled-up claim form (provided by the insurance company)

 Certificate of death
 Policy document
 Deeds of assignments/ re-assignments if any
 Legal evidence of title, if the policy is not assigned or nominated
 Form of discharge executed and witnessed

Other documents such as medical attendant's certificate, hospital certificate, employer's

certificate, police inquest report, post mortem report etc could be called for, as applicable.

Formalities for a maturity claim

Where a life insurance policy is maturing, the insurance company will usually send intimation to
the policyholder along with a discharge voucher at least two to three months in advance of the
date of maturity giving details like the maturity amount payable.

The policyholder has to sign the discharge voucher – which is like a receipt – have his signature
witnessed and send it back to the insurance company along with the original policy bond to
enable it to make the payment.
If the policy has been assigned in favour of any other person or entity – like a housing loan
company – the claim amount will be paid only to the assignee who will give the discharge.
EXAMPLE:
Manish Chawla purchased a Life Insurance Traditional Policy where he would have to pay a
premium of Rs 15000 p.a. for 20 years. If he died within the tenure, his nominee would be paid
Rs 15,00,000 as Death Benefit and if he survives the policy term of 20 years, he would receive a
sum of Rs 5,59,000 as Maturity Benefit.

Thus, at least 3 months before the Maturity Date, a Policy Discharge form is sent to Manish
Chawla, which he needs to fill up, sign and send across to the insurance company’s office so that
the Maturity Claim is paid out on time. A post dated cheque of the maturity amount would reach
his house at least a month before the date of maturity so that he can bank it and receive the
Maturity Claim on time.
RESEARCH METHODOLOGY
Data collection techniques and tools
For the purpose of data collection researcher took help of both primary data and secondary
data collection method.

Primary data are those, which are collected afresh and for the first time, and thus
happen to be original in character. This method was used by means of Personal
Interview, wherein researcher had face-to-face contact with the persons. The reason
behind choosing this method was to have detailed information on the subject. It also
provided opportunity for selecting the sample for interview. The interview conducted
were a mixture of structured and unstructured interviews. Scope was kept open for
detailed discussion at the discretion of the interviewee. Where there was a time
crunch a structured procedure was followed wherein predetermined questions were put
forward.

The other method was adopted in primary data collection was Questionnaires. This
was used to assist a more structured form of information. The information thus
obtained was standard and in a more unbiased form. It assisted to collect data from a
large sample size. The pattern adopted was a general form of questionnaire.
Questions are in dichotomous (yes or no answers), multiple choice and open ended
question. Open ended questions are restricted due to the difficulty faced in analyzing.
The questioner was kept short and to the point.

Secondary data means data that are already available i.e., the data which is already
collected and analyzed by other. To get a better understanding and to have a larger
exposure on the subject this method was used. Methods use was data available on
world wide web, articles in newspapers, financial industry reports, Financial Planning
board of India reports and article, reports published by Government of India, etc.
Support was also provided by the project guide by giving inputs from his years of
experience.
CONCLUSION

As it can be seen from the data collected and from the case studies that majority of the insurance
companies believe that investing in HRM is necessary in order to strengthen the insurance sector.
Investing in HRM practices allows companies to strengthen their human resources. Human
resources are one of the most important resources in any organisation. Efficient management of
human resources is necessary for the success of an organisation. Efficient HRM practices leads
to employee satisfaction. Employee’s performance improves which benefits the entire
organisation. Employees are motivated and they perform better. This will in turn lead to increase
in customer satisfaction and the organisation will be able to increase its customer base.
The organisation and HR managers make all the possible efforts to keep the employee satisfied
with his work and should give
the good results in returns to the organisation. They keep their emloyees happy by giving them
different types of incentives plans,
transfers, promotions, commission, better pay scale and may be the participation to speak in the
top level management and much more.

Thus our hypothesis investing in human resource can help a firm perform better is
SUGGESTION AND RECOMMENDATIONS

1. As they are more concern about the satisfaction of the employees they can’t concentrate on the
individual employees because there are many, so they should try to concentrate on the individual
also.
2. HR managers should disclose the material facts of their job as human resource management is
especially for the welfare and the satisfaction of the employee.
3. They should solve the problems of the employees as soon as possible.
4. HR managers should consult with the employees in the certain cases or should include them to
make certain level of decisionsof their own.
 @@@@ BIBILIOGRAPHY @@@@
Websites
1. https://www.wikipedia.org/
2. https://www.bajajallianz.com/
3. https://economictimes.indiatimes.com/
4. https://www.myinsuranceclub.com/

References: Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18,
Insurance Regulatory and Development Authority of India (IRDA)