A SUMMER TRAINING PROJECT REPORT ON RECRUITMENT OF

FINANCIAL CONSULTANTS (FC’s) OF EXCELLENT PROFILE AND THIR

RETENTION STRATEGIES AND ALSO A STUDY ON THE CURRENT
MARKETING STRATEGIES OF TAPPING POTENTIAL CUSTOMERS AND
DIFFERENT METHODS OF IMPROVING THE SAME .

SUBMITTED TO,

AVIVA LIFE INSURANCE

BY,

NAME: AASHISH.M
BATCH: MBA-IB
PRN NO: 09020241111

1
 SPECIALISATION: MARKETING

SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS

2
 CERTIFICATE

This is to certify that Mr. AASHISH, a student of SYMBIOSIS INSTITUTE OF

INTERNATIONAL BUSINESS has successfully and timely completed his project
titled –“Recruitment of Financial Consultant(FCs) of excellent profile and their
retention strategies and also a study on the current marketing strategies of tapping
potential customers and different methods of improving the same was done .” This
project has been carried out as a summer project towards the fulfillment of
requirements for partial completion of the Post Graduate Management Programme
in INTERNATIONAL BUSINESS being conducted by his institute. I have gone
through the report and certify that it has been prepared to my satisfaction and all
the facts mentioned have been verified to the best of my knowledge.

Mr.Sachin Wakde,
Branch Manager,
AVIVA LIFE INSURANCE,
Chinchwad Branch

3
 Acknowledgement

I am extremely fortunate to have got the opportunity of working with AVIVA LIFE INSURANCE.
It was a great privilege working with this esteemed Organization for two months and I would
like to thank AVIVA LIFE INSURANCE for giving me an opportunity to do my summer training
and learn a lot through an entirely new experience.

Though, I owe a profound intellectual debt to a number of officers in the Organization, yet in
particular, I am thankful to my project guide Mr. RAHUL KUMAR AGARWAL , Sales Manager
for helping me at every stage of my work.

I would like to express my sincere thanks to Mr. RAJESH DESHMUKH, HR HEAD for his
experienced guidance and direction.

I want to take this opportunity to thank everyone who has contributed towards the development
of this project and cooperated with me during my training at AVIVA LIFE INSURANCE.

4
 EXECUTIVE SUMMARY 8
OBJECTIVE 10
1.1 INSURANCE INDUSTRY AN OVERVIEW 11

1.2 INSURANCE INDUSTRY IN INDIA 12

1.3 THE INSURANCE INDUSTRY WITH A NEW 13

LOOK
1.4 INSURANCE REGULATORY AND 13
DEVELOPMENT AUTHORITY
1.5 KEY MILESTONES 14
1.6 INDUSTRY REFORMS 14
1.7 NEED OF LIFE INSURANCE 15
1.8 INSURANCE INDUSTRY: 17

CLASSIFICATION
COMPANY PROFILE
2.1 INTRODUCTION 19
2.2 PROGRAMME HIGHLIGHTS 19
2.3 AVIVA’S Vision 20
2.4 CORE VALUES 21
2.5 21
PROMOTERS

5
2.6 FACT SHEET 22
2.7 SECTOR CLASSIFICATION 22
2.8 REGISTERED OFFICE AND HEAD OFFICE 22
LOCATIONS
2.9 COLLABORATION AND AFFILIATIONS 23
2.10 COMPANY SIZE 23
2.11 NUMBER OF EMPLOYEES 23
2.12 GEOGRAPHICAL REACH 23
2.13 ORGANIZATION STRUCTURE 24
2.14 PUBLIC RELATION STRATEGIES 24
2.15 AVIVA ORGANISATION INFORMATION 25
CHART
2.16 BOARD MEMBERS/OWNERSHIP STRUCTURE 26
2.17 HUGE POTENTIAL TO CATCH UP IN INDIA 27

PRODUCTS
3.1 PRODUCT GROUPS AND PRODUCTS RANGE 28
IN EACH PRODUCT GROUP
3.2 PRODUCT UNIQUE FEATURES 32
4.1 FINANCIAL CONSULTANT 37
4.2 WORK OF FINANCIAL CONSULTANT 38
4.3 STRATEGIES FOR RECRUITING FINANCIAL 39
PLANNING ADVISORS
4.4 METHODOLOGY USED FOR GETTING 40
FINANCIAL PLANNING ADVISORS TO WORK
FOR AVIVA

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4.5 APPROACH MADE FOR RECRUITMENT OF 43
FINANCIAL CONSULTANTS(FC) AT AVIVA
LIFE INSURANCE
4.6 RECRUITMENT PROCESS OF FINANCIAL 46
PLANNING ADVISORS
4.7 JOB DESCRIPTION FOR FINANCIAL 47
PLANNING ADVISORS
4.8 BENEFITS TO FINANCIAL PLANNING 47
ADVISORS
4.9 TAX BENEFITS 50
4.10 OPPURTUNITIES OF AVIVA’S FINANCIAL 51
ADVISORS
4.11 SALES PROCESS WHICH IS USED IN AVIVA 53
LIFE INSURANCE
4.12 COMMISION STRUCTURE OF FINANCIAL 58
PLANNING ADVISORS.
4.13 MOST PREFERRED PROFILES TO RECRUIT AS 58
ADVISORS/AGENTS
4.14 A FEW APPROACHES IN TARGETING THE 59
FINANCIAL PLANNING ADVISORS

5 SWOT ANALYSIS 60
6 LIMITATIONS 62
7 CHALLENGES…IN LIFE INSURANCE 67
8 ACHIEVEMENTS 67
9 UNIT LINKED INSURANCE POLICIES 68
10 COMPETITORS 73
1011 COMPARATIVE STUDY OF AVIVA’S 80

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 PRODUCTS WITH OTHER LIFE INSURANCE
COMPANY PRODUCTS.
12 CONCLUSION 90
13 RECOMMENDATIONS AND SUGGESTIONS 92
14 BIBLIOGRAPHY 94

EXECUTIVE SUMMARY

AVIVA Life insurance is the oldest life insurance company in the world. It is one of the largest
insurers in the UK. In India, the company is marketing life insurance products. I found that the

8
company has a lot of competition from other private insurers like ICICI, HDFC SLIC, Birla Sun
Life and Tata AIG. It also faces competition from LIC.

Project study report consists of brief description of company AVIVA LIFE INSURANCE. My

topic was “Recruitment of Financial consultant (FCs) of an excellent profile and their retention

Strategies and also study on the current marketing strategies of tapping potential customers and

different methods to improve the same. A close look on the sales process used in Aviva life

Insurance was also done.”

Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organization. In the other words recruitment is the activity that links
employers and job seekers.
A person with high educating and well experience can be recruited after a personal interview
and group discussion. After the training program is completed the insurance agent has to appear
for the pre-examination conducted by IRDA. As he clear the exam he is provided with a license,
which is the proof that he/she is a legalized insurance agent, which permits him to sell policies in
insurance business.

Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organization so that the management can select the right
candidate for the right job from this pool. Apart from recruitment of financial planning advisors
a proper study on the sales process at AVIVA life insurance was done . This included different
marketing strategies implemented to tap the potential customers and different methods to attract
and convince customers to buy Aviva and its products were done.

To compete effectively AVIVA could launch cheaper and more reasonable products with small
premiums and short policy terms (the number of year’s premium is to be paid). The ideal
premium would be between Rs. 5000 – Rs. 25000 and an ideal policy term would be 10 – 20
years.

AVIVA must advertise regularly and create brand value for its products and services. Most of its
competitors like HDFC, ICICI, Max, Reliance and LIC use television advertisements to promote

9
their products. The Indian consumer has a false perception about insurance – they feel that it
would not benefit them if they do not live through the policy term. Nowadays however, most
policies are unit linked plans where a customer is benefited even if their death does not occur
during the policy term. This message should be conveyed to potential customers so that they
readily invest in insurance.

Family responsibilities and high returns are the two main reasons people invest in insurance.
Optimum returns of 16 – 20 % must be provided to consumers to keep them interested in
purchasing insurance.

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OBJECTIVE:
• Recruitment of Financial consultant (FCs) of a excellent profile and their retention
strategies
• A study on the current marketing strategies of tapping potential customers and different
methods to improve the same.
• A study on the sales process used in Aviva life insurance and also Competitive study of
Aviva’s products with other life insurance companies.

1.1) INSURANCE INDUSTRY AN OVERVIEW

11
Insurance may be described as a social device to reduce or eliminate risk of life and property.
Under the plan of insurance, a large number of people associate themselves by sharing risk,
attached to individual. The risk, which can be insured against include fire, the peril of sea, death,
incident, & burglary. Any risk contingent upon these may be insured against at a Premium
commensurate with the risk involved.
Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in
exchange for a fixed sum called premium to pay the other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the insured, the
insurers pay the financial losses suffered by the insured as a result of the occurrence of
unforeseen events. With the help of insurance, large number of people exposed to a similar risk
makes contributions to a common fund out of which the losses suffered by the unfortunate few,
due to accidental events, are made good.
This is the current scenario of the global Insurance Industry and now, let us looks at the basic
functions of insurance. While conceding that insurance is a risk-transfer tool, corporate should be
made to understand that it does not suffice merely to transfer the risk but they have to participate
in the effort of loss prevention. New but they have to participate in the effort of loss prevention.
New techniques and technology have to be adopted from time to time in order to improve
performance and this has special significance to the order to improve performance and this has
special significance to the Indian Insurance Industry. The Indian insurance industry has always
suffered from drawbacks like lack of proper understanding of the purpose of insurance, lopsided
growth etc. With the opening up of the industry, it is hoped that the new entrants with their
better channels would spread the real message of insurance, leading to a dynamic growth.
Emphasis should be on finding new technological avenues, although it has been observed world
over that for selling insurance, an eye-to-eye contact is essential. Internet can be used for better
servicing which would eventually, lead to business development. With the entry of foreign
companies into the insurance arena, a fresh life has been inducted and there is a great deal of
optimism in the air that the market would automatically create a vibrant competition leading to
the customer being the ultimate winner.
1.2) INSURANCE INDUSTRY IN INDIA

12
The insurance sector in India has come a full circle from being an open competitive. Market to
nationalization and back to a liberalized market again. Tracing the Developments in the Indian
insurance sector reveals the 360 degree turn witnessed over period of almost two centuries.

Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and
then the general insurance business was nationalized in 1972. Only in 1999 private insurance
companies have been allowed back into the business of insurance with a maximum of 26% of
foreign holding. In what follows, we describe how and why of regulation and deregulation. The
entry of the State Bank of India with its proposal of banc assurance brings a new dynamics in the
game. We study the collective experience of the other countries in Asia already deregulated their
markets and have allowed foreign companies to participate. If the experience of the other
countries is any guide, the dominance of the Life Insurance Corporation is not going to disappear
any time soon.
The Indian insurance market, with a population of over one billion, offers tremendous
opportunities and can easily sustain 100 insurers. The development of the insurance sector will
result in higher domestic savings and investments, significant expansion of the capital market,
enhanced infrastructure financing and increased foreign capital inflow and employment.
The opening up of the Indian insurance sector has been hailed as a groundbreaking move
towards further liberalization of the Indian economy. The size of the existing insurance market is
growing at a rate of ten per cent per year. The estimated potential of the Indian insurance market
in terms of premium was around Rs3, 44,000 crores (US$86 billion) in 1999. The Indian players
have tapped only ten per cent of the market share and the remaining 90 per cent of the market
remains untapped.

The Indian Government has recently enacted the Insurance Regulatory Development Authority
Act 1999, which amends existing insurance laws dating from 1938. The Act establishes an
authority called the Insurance Regulatory Development Authority, designed to regulate the
insurance sector.

1.3) THE INSURANCE INDUSTRY - WITH A NEW LOOK

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Competition has well and truly set in the fast-growing insurance sector, barely a year after the
doors were opened for the re-entry of private players.
The new face of the Indian insurance industry is craving for attention. Hoardings and billboards
of the new joint venture private companies gaze at you from everywhere. Advertisements in
newspapers and on television, insurance agents and direct mailers form part of the campaign
vehicle. The dozen-odd life and non-life companies in the private sector are fighting a quiet but
intense battle to make their presence felt to the Indian consumer.
Not to be undone, the public sector companies are trying to match the moves of the private
companies. They are shedding their old ways and donning a sprightlier and market-friendly
exterior to make sure that they do not lose the advantage of a head start.

1.4) INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously such to its schedule of framing regulations and registering the private sector
insurance companies.

The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents.

1.5) KEY MILESTONES

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

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1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-
with a capital contribution of Rs. 5 crore from the Government of India.

1.6) INDUSTRY REFORMS

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations.

The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.

1.7)NEED OF LIFE INSURANCE

. The functions of Insurance can be bifurcated into two parts:
1. Primary Functions
2. Secondary Functions
3. Other Functions

15
The primary functions of insurance include the following:
Provide Protection - The primary function of insurance is to provide protection against future
risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can
certainly provide for the losses of risk. Insurance is actually a protection against economic loss,
by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of few among many
others. Insurance is a mean by which few losses are shared among larger number of people. All
the insured contribute the premiums towards a fund and out of which the persons exposed to a
particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by evaluating various
factors that give rise to risk. Risk is the basis for determining the premium rate also

Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty.
Insurance is device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device
to prevent unfortunate consequences of risk by observing safety instructions; installation of
automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the
assured by the insurer and this will encourage for more savings by way of premium. Reduced
rate of premiums stimulate for more business and better protection to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
Contributes towards the development of larger industries - Insurance provides development
opportunity to those larger industries having more risks in their setting up. Even the financial
institutions may be prepared to give credit to sick industrial units which have insured their assets

16
including plant and machinery.

The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and investment, insurance is a
compulsory way of savings and it restricts the unnecessary expenses by the insured's For the
purpose of availing income-tax exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business. The country can
earn foreign exchange by way of issue of marine insurance policies and various other ways.
Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free
with the help of different types of policies under marine insurance cover.

1.8) INSURANCE INDUSTRY:

CLASSIFICATION

17
 INSURANCE

LIFE INSURANCE GENERAL INSURANCE

Fire Insurance Marine Insurance Mediclaim Motor Vehicle

18
 COMPANY PROFILE

2.1) Introduction
Aviva Life Insurance India is a private insurance company formed from a collaboration
between the Aviva insurance group of UK and the Dabur group, one of India's oldest and top

19
producer of traditional health care products. Aviva's products are meant to provide customers
flexibility, transparency and value for money.

Aviva Group is the UK’s largest and one of the biggest Insurance groups worldwide. It is one of
the leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Aviva Group has a 50 million
customer base worldwide.

Aviva insurance group in UK with a history dating back to 1696, today stands as one of the
leading provider of life and pension products to Europe and other parts of the world. The history
of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest
foreign insurance group in terms of the compensation paid by the Indian Government. In 1995
Aviva was the first foreign insurance company to start its representative office in India. At
present in Aviva Life Insurance India, the Aviva group is a 26% share holder and the Dabur
group holds 74% shares in the joint venture.

2.2) Programme highlights of today -

• Aviva Life Insurance India has 40 Branches in India, including rural branches
supporting its distribution network. With over 28,000 Financial Planning Advisers
(FPAs) and the Financial Health Check (FHC) programme it has been successful in
setting up its position in the Indian market. The FHC is a free service administered by the
FPAs which analyses the customer's long-term savings and insurance needs and
depending on the life stage and earnings of the customer it selects the proper insurance
product for them.
• Aviva Life Insurance India initiated the concept of Bancassurance in India and at
present it has Bancassurance tie-ups with ABN Amro Bank, American Express Bank,
Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab &
Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar,
West Bengal, Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. This
has helped to distribute Aviva products in nearly 378 towns and cities across India.
• Aviva Life Insurance India offers more modern Unit Linked and Unitized With Profit
money products to the customers. Following the IRDA guidelines, with effect from 1
July 2006, these unit - linked products have been modified.
The products of Aviva insurance group of India are:
• LifeLong
• LifeSaver or EasyLife Plus
• Young Achiever
• LifeBond and LifeBond Plus
• PensionPlus
• LifeShield

20
 • Freedom LifePlan
• LifeBond5
• The fund management operations of Aviva Life Insurance India is controlled from
Mumbai and the fund options includes Unitized With-Profits Fund and four Unit
Linked funds:
• Protector Fund - The fund comprises of debt securities in the range of 60-100%,
equities in the range of 0-20% and money market and cash in the range of 0-20%.
• Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in
the range of 0-20% and money market and cash in the range of 0-20%.
• Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities
in the range of 0-45% and money market and cash in the range of 0-10%.
• Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities
in the range of 0-85% and money market and cash in the range of 0-20%.
These fund provides investment security to the capital of the customers.
Through their association with Basics (a micro financial institution) and other NGOs, Aviva
Life Insurance India have been able to reach out to those underprivileged who had no
access to insurances till day.

In Aviva Life Insurance India , thus , by combining protection and long term savings the
customers can safeguard and provide life products for their family with their changing needs.

2.3)AVIVA’S Vision
To make Aviva life insurance the dominant Life and Pensions player built on trust by world-
class people and service. This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service
Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our employees

And above all, building transparency in all our dealings.

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The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes
what the company stands for, the qualities of our people and the way we work. They do believe
that they are on the threshold of an exciting new opportunity, where we can play a significant
role in redefining and reshaping the sector.

2.4)CORE VALUES
The success of the company will be founded in its unflinching commitment to 5 core values –

 Integrity

 Customer First

 Boundary less

 Ownership

 Passion.

Each of the values describe what the company stands for, the qualities of our people and the way
we work. We do believe that we are on the threshold of an exciting new opportunity, where we
can play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

2.5) Promoters
Dabur Group
Founded in 1884, Dabur Group is one of India's oldest and largest group of companies with a
consolidated annual turnover in excess of Rs 2,834 crores. A professionally managed company,
it is the country's leading producer of traditional healthcare products.
Corporate website: http://www.dabur.com

2.6) FACT SHEET

• JV partner: Dabur (74% stake)

22
 • Foreign partner: Aviva plc (26% stake). One of the world's top Insurance groups and
the biggest in the UK. It is one of the leading providers of life and pensions products to
Europe. Aviva has a 50 million-customer base worldwide with £352 billion assets under
management.
• Managing Director & Chief Executive Officer: Mr. TR Ramachandran
• Paid up Capital: Rs 1,888 crores
• Locations: 195 branches, close to 3,000 locations
• Bank partners: ABN Amro Bank, The Lakshmi Vilas Bank Ltd, Punjab & Sind Bank,
IndusInd Bank, Bank of Rajasthan and more than 30 Cooperative Banks and Regional
Rural Banks.
2.7) SECTOR CLASSIFICATION
The features of Aviva life insurance are:

1.Simplicity

2.Flexibility

3.Transparency

4.Value for money

2.8) REGISTERED OFFICE AND HEAD OFFICE LOCATIONS

• Aviva spread over 27 countries.

• In India Aviva head office is at New Delhi:-Gurgaon-Mehrauli RoAD, JMD Regent
Square 5th Floor, Gurgaon, 122 001, India, Phone: 91 12 4280 414 Fax: 91 12 4280
4142

http://www.avivaindia.com/

2.9)COLLABORATION AND AFFILIATIONS

23
Aviva Life Insurance India is a private insurance company formed from a collaboration between
the Aviva insurance group of UK and the Dabur group, one of India's oldest and top producer of
traditional health care products . Aviva's products are meant to provide customers flexibility,
transparency and value for money.

2.10) COMPANY SIZE:

CURRENT CAPITALISATION

Aviva has a 50 million-customer base with presence in 27 countries. It has £381 billion of assets
under management. Aviva has 223 Branches in India supporting its distribution network.
Through its Bancassurance partner locations, Aviva products are available in close to 3,000
towns and cities across India. Aviva is also keen to reach out to the underprivileged that have not
had access to insurance so far. Through its association with Basix (a micro financial institution)
and other NGOs, it has been able to reach the weaker sections of the society and provide life
insurance to them. Recently, Aviva India has been ranked amongst the top 25 employers by The
Great to Work Institute(GPTW) in the "Best Workplaces in India" study for 2008.

2.11)NUMBER OF EMPLOYEES

Powered by a dedicated workforce of 57,000 employees.

CURRENT ANNUAL TURNOVER: 364 Billion Pounds.

2.12)GEOGRAPHICAL REACH

Aviva is widely spread over all over the world. Aviva is the world fifth largest and UK’s largest
insurance group. The group writing business in India as early as 1834 and was the largest foreign
insurer in India at the time of nationalisation , as per compensation paid by the government of
India.

2.13) ORGANIZATION STRUCTURE

Aviva has 223 Branches in India supporting its distribution network. Through its Bancassurance
partner locations, Aviva products are available in close to 3,000 towns and cities across India.

24
 Aviva is also keen to reach out to the underprivileged that have not had access to insurance so
far. Through its association with Basix (a micro financial institution) and other NGOs, it has
been able to reach the weaker sections of the society and provide life insurance to them.
Recently,Aviva India has been ranked amomgst the top 25 employers by The Great to Work
Institute(GPTW) in the "Best Workplaces in India" study for 2008.

COMPANY WEB-SITE:

http://www.avivaindia.com/

2.14) PUBLIC RELATION STRATEGIES

Corporate Citizenship is an integral part of how Aviva as a company operate and is integral to
Aviva business. Aviva corporate citizenship commitment rests on four pillars: patients, business
conduct, people and communities and environmental care. Aviva Group has established the
Aviva Foundation for Sustainable Development (NFSD) which in turn set up Aviva Private
Limited. Aviva social responsibility project in the area of lifetime needs has led to a dramatic
impact in its operational areas and many of the modalities have been successfully adopted by the
government and other insurance companies

2.15) AVIVA ORGANISATION INFORMATION CHART

Cluster manager Cluster training Cluster Operation

manager

25
Branch head Branch head
 Branch Operator-
training 1
Deputy Manager-1
branch Deputy
Branch
manag branch Operator-
Manager-1
er-1 manager-1 2
Deputy Operator-
Branch Deputy
branch Branch training 3
Manager-2 branch
manag Manager-2
manager-2
er-2 Operator-
4
Deput Branch Deputy branch
y manager-3
branch
manag
er-3

2.16) BOARD MEMBERS/ OWNERSHIP STRUCTURE

TR Ramachandran Chief Executive Officer & Managing Director

26
Rajeev Arora Director, Finance & Actuarial

Monica Agrawal Director, Corporate Initiatives

Vishal Gupta Director, Marketing

Sumit Behl Director, Business Risk & Internal Audit

Ravi Bhadani Company Secretary and Senior Vice President- Compliance & Legal

Munish Sharda Director, Direct Sales Force

Rishi Piparaiya Director, Bancassurance

Sandip Mallik Director, HR

Jyoti Vaswani Chief Investment Officer & Director, Fund Management

K K Dharni Appointed Actuary

Snehil Gambhir Sr. Vice President, Transformation & Services

Rajiv Sehgal Chief Information Officer & Sr, Vice President, IT

Vijayalakshmi Natarajan Senior Vice President, Operations.

2.17) HUGE POTENTIAL TO CATCH UP IN INDIA

27
Per capita premium remains very low at Rs 1,408 indicating huge untapped potential

3. PRODUCTS OF AVIVA
28
3.1) PRODUCT GROUPS AND PRODUCTS RANGE IN
EACH PRODUCT GROUP:
Aviva offer customers a full range of transparent, flexible and value for money products that
include whole life (LifeLong, Aviva LifeLine), endowment (LifeSaver, SaveGuard, EasyLife
Plus, LifeSaver Plus, LifeSaver Super,Aviva Sachin Century) and traditional endowment (Dhan
Vriddhi, Aviva Moneyback), child plan (Aviva Little Master) single premium (LifeBond Plus),
pension (PensionPlus,Secure Pension), term (LifeShield), fixed term protection cum savings plan
(Freedom LifePlan), health plan (Aviva Health Plus),with profits plan (Aviva Money Back) and
a short-pay recurring premium investment cum protection plan (LifeBond5). Aviva products are
modern and contemporary unitized products that offer unique customer benefits like flexibility to
choose cover levels, indexation, partial withdrawals and unique investment options like a
Systematic Transfer Plan to get the benefit of systematic investments and an Automatic Asset
Allocation Plan which changes the risk structure on your investments as your age increases.
Aviva also have 3 rural plans which are a low cost term plan – Amar Suraksha and 2
endowments – Anmol Suraksha and Jana Suraksha.

Good plans of Aviva

Given below is synopsis of some good plans of Aviva Life Insurance. The information provided
is for comparison purpose only and for more detailed information before taking any decision

29
 LIfe Shield - Pure Term Insurance Plan

Life is full of uncertainties and you need to secure the future of your loved ones.
LifeShield is an ideal life insurance plan that helps you protect your family's future. LifeShield is
a low cost life insurance plan which guarantees to pay a lump sum amount in case of your death
during the term of the policy. The sum insured of the policy can be increased during the term of
the policy, without submitting any evidence of good health, in case of your marriage or the birth
of your child.

Today your child wants to be a chef. Yesterday, he dreamt of becoming a cricketer.

Tomorrow he might want to be a pilot. You never know where your child's' dreams will take
him. Aviva Little Master helps you go that extra mile to ensure that your child realizes his
dreams, whatever they may be, so your child can follow his heart. Aviva Little Master is a
comprehensive, unit-linked endowment plan which covers the life of the parent as well as the
child. It offers you 4 unit linked fund options. Aviva Little Master has several firsts which make
it an extremely competitive product; a waiver of premium in the event of the parent's' death, a
comprehensive health benefit (CHB) rider which covers 18 critical illnesses, guaranteed
additions of up to 7% of the units at maturity as well as a choice of riders which cover you
against accidental death, critical illnesses and pay out an income in case of death.

30
 LifeSaver Plus is a Unit Linked endowment plan designed to meet your future savings
requirements besides offering a higher life cover. The plan offers full Sum Assured in addition to
the Fund Value as death benefit in case of your unfortunate death, thereby providing a higher
financial protection to your family. You can also opt for the “Systematic Transfer Plan”.
The plan provides a loyalty addition at maturity.

Different individuals have different needs which change over time. Aviva recognizes this
and offers you a life insurance plan which provides solutions for all your financial goals, be it
saving for your child, planning for that dream home or providing for your retirement. Freedom
LifePlan is a unit-linked limited premium paying endowment plan with guaranteed loyalty
additions. This unit linked plan gives you the flexibility to customize the plan to suit your
individual needs and alter it subsequently with your changing needs.

LifeSaver Super is a unique unit linked endowment plan which offers flexibility as well as
a higher life cover. The plan gives both the fund value as well as the Sum Assured in case of
death thus providing higher financial protection to your family. It has the option of the
Systematic Transfer Plan which reduces the risk of mis-timing the market and provides the
benefits of a systematic investment plan.

31
 LifeSaver Super is a unique unit linked endowment plan which offers flexibility as well as
a higher life cover. The plan gives both the fund value as well as the Sum Assured in case of
death thus providing higher financial protection to your family. It has the option of the
Systematic Transfer Plan which reduces the risk of mis-timing the market and provides the
benefits of a systematic investment plan.

Whole Life
○ Life long
Endowment:

○ LifeSaver
○ EasyLife Plus
○ LifeSaver Plus
Child Policy

○ Young Achiever
○ SaveGuard Junior
○ Aviva Little Master
Single Premium

○ LifeBond
○ LifeBond Plus

32
Pension Policies:

○ Pension Plus

Term

○ LifeShield
○ Freedom LifePlan (fixed term protection plan)
○ LifeBond 5 (a tax efficient & limited premium payment term investment plan)
○
3.2) PRODUCT UNIQUE FEATURES

1. LIFE LONG :
Life is designed to suit your individual requirements, no matter which life stage you
are at, and change as your needs change during your entire life.
Features :-

• Entry age 0 to 60 years risk over cover commence from age 7, 18 and 55 years
in case you opted for any rider.
• Policy term: a whole life plan with premium payment age upto 45 years.
• Annual premium: minimum Rs. 10,000.
• Minimum Sum Assured: 5*annual premium.
Benefits :-

• Freedom of choosing between 6 unit-linked funds.

• Option for automatic asset allocation features.
• Cover yourself and your spouse under the same policy.
1. LIFE SAVER
Life saver is a unit linked endowment plan designed to meet your specific long term needs
such as education and wedding costs for your children.

Features :-

33
 ➢ Entry age 18 to 65 years.
➢ Policy term 5 years to 70 years.
➢ Annual premium Rs. 60000
➢ Sum assured .5*policy term, 5*annual premium
➢ Riders ADD, CIPTD.
Benefits :-

➢ Choice of Investment fund.

➢ Increase or Decrease regular premium.
➢ Make partial withdraw.
➢ Cover your self and your spouse under same policy.

Guaranteed Death Benefit :-

➢ 225,000.
➢ 375,000
➢ 750,000

1. EASY LIFE PLUS

Easy life plus is a simple unit linked endowment plan with the benefit of life protection.
Features :-

➢ Entry age 18 years to 50 years.

➢ Policy term 10, 15 or 20 years.
➢ Annual premium Minimum Rs. 6000; Maximum Rs. 50,000.
➢ Sum Assured 10 times the annual premium.

Benefits :-
➢ Freedom of choosing between protector, balanced and growth fund.
➢ No medical tests.
➢ Tax benefit.

34
 Guaranteed Death Benefit :

➢ 100,000.
➢ 250,000.
➢ 500,000.

1. LIFE SAVER PLUS

Life saver plus is a unit linked endowment plan designed to meet your savings
requirements for the future and offering you the option of a higher life cover.

Features :-

 Entry age 0 to 60 years.

 Policy term 10 to 30 years.
 Annual premium Rs 15,000.
 Sum assured 5*annual premium.

Benefits :-
 Freedom of choosing from 4 unit linked funds.
 Up to 6% loyalty.
 Increase or Decrease your premium.

Guaranteed Death Benefit :-

➢ 75,000.
➢ 125,000
➢ 250,000.

35
 1. SAVE GUARD

Save guard is a simplified, unit linked endowment plan.

Features :-

 Entry age 0 to 50 years.

 Policy term 10, 15, 20 or 30 years.
 Annual premium Rs. 12,000.
 Sum Assured 0.5*policy term*annual premium.

Benefits :-

 Freedom to choose between 5 unit linked funds.

 Flexibility to choose premium.
 No medical tests.
 Tax benefit.

1. LITTLE MASTER
Today your child wants to be a chief. Yesterday, he dreamt of becoming a cricketer.
Tomorrow a pilot. You never know where your child dreams will take him.

Features :-

➢ Entry age 0 to 17 years.

➢ Policy term 8 to 25 years.
➢ Annual premium Rs. 15,000.
➢ Sum Assured 5*annual premium.

36
 Benefits :-

➢ Choice of 4 investments.
➢ Make partial withdrawal.
➢ Get loyalty.
➢ Tax benefit.

Guaranteed Death Benefit :-

➢ 125,000.
➢ 250,000.
➢ 500,000.
1. Freedom life plan :-
Different individuals have different needs, which change over time. Aviva life insurance
recognizes this and offers you a life insurance plan which provides solutions for all your
financial goals.

Key features :-

 Entry age: 18 to 60 years.

 Policy term: 10 to 30 years.
 Premium payment terms: 3.5,5,10.
 Annual premium: Rs 25000.
Benefits:-

 Choose funds between 5 unit- linked funds.

 Cover yourself and your spouse under the same policy.
 Improve your fund value.
 Choice of riders.


1. Life bond 5 :-

37
 Life bond 5 is a investment plan where you can pay premium for 3 to 5 years and get
investments return with maximum tax benefits.
Key features ;-
➢ Entry age : 18 to 50 years.
➢ Policy term : 10 years.
➢ Premium payment : Rs 25000
➢ Sum assured : 5*annual premium.
Benefits :-
➢ Choose funds between 5 unit linked funds.
➢ Pay premium only for 3 or 5 years.
➢ Enjoy the upside of equity market.
➢ Tax benefit.

OBJECTIVE:
• Recruitment of Financial consultant (FCs) of a excellent profile and their retention
strategies
• A study on the current marketing strategies of tapping potential customers and different
methods to improve the same.
• A study on the sales process used in Aviva life insurance.
• Competitive of Aviva with other life insurance companies.

4.1) FINANCIAL CONSULTANT

Who can be the financial consultant?

Section 42(4) of the amended Insurance Act, 1938 states an agent to be one who is not:

• A minor.

• Found to be sound mind by a court of competition jurisdiction.

• Found guilty of criminal background.
• Found guilty of having knowingly participated in or connived at any fraud /dishonesty or
misrepresentation against an insured.

38
4.2) Work of financial consultant:

The Financial Consultant is the interface between the customer and insurance company. The
agent should be able to accomplish the following service.

• Assessing and analyzing the clients risk profile.

• Finding the best product or products available in the market.
• Negotiating the best deal available.
Continuity of service throughout the period of insurance

(A) What type of people are is the insurance company looking for ?
1) Committed people who have the drive, determination and ability to become professional
financial consultants.
2) Ability to sell a range of financial products.

(A) What do We Expect from financial Consultant?

1- Devote a time and energy during training.
2- Sell at least 5 policies each month once after licensed with company.
3- Aviva looks forward to a long term mutually beneficial relationship.
(A) Why should financial consultant choose Aviva Life Insurance?
• Reputation for providing the higher standards of customer service.
• Financial Strength of the Company.
• Brand value and the reputation of Aviva Life Insurance.
• 300 years experience in life insurance around the world and 10 years in India itself.
• Product innovation.

39
4.3) Strategies for recruiting financial planning advisors:

Strategies Employed to achieve the target are as follows:-

 Telecalling
 Contacting the person directly (interview)
 Collect references.
 Collecting leads by Organizing Events.

Some important steps to make effective telecalling:-

Open the call in a friendly and positive way.

State the name, position and company name.

Check if the prospect has time to speak.

State the reason for the call.

Clearly succinctly explain how the meeting will be benefiting the prospect.

40
4.4) Methodology used for getting financial planning advisors to
work for AVIVA

1 Method:
• Firstly a large chunk of numbers were collected from various internet
websites like amfyindia.com and from different Real Estate websites,list
of mutual fund advisors in and around the office area and then cold calling
was done to take proper appoinments at a desired location .
• In cold calling around 1000 numbers were collected and calling was done.
Calling was done to prospects of various profiles like mutual fund
advisors, real estate agents , stock brokers , cable operators, summer camp
owners,internet parlour owners.
• After the calling was done the a proper appointment was fixed at the office
and the role of financial planning advisors was explained properly .
• If the customer was convinced then a meeting was fixed with the branch
manager and his interview was taken.
• If the customer was convinced then his/her documentation is done.
2) Method:
Field work :
• Proper field work was done . I have visited different malls shops, internet
parlours , shop owners , juice bars, opticians, dentists, doctors, and many
different profile people who could actually work with Aviva as financial
planning advisors .
• I have met about more than 120 people of different profiles.
• The prospects were explained about the role of financial planning advisor
and if they were convinced then they were called to office for the proper
explanation of their role as a financial planning advisor.

41
 • If the customer was convinced then a meeting was fixed with the branch
manager and his interview was taken.
• If the customer was convinced then his/her documentation is done.

3rdmethod):

Conducting Events:

1st event

• Proper events were conducted under my guidance in Croma showroom

twice .There were various games conducted in the showrooms in order to
make walking customers aware of the role of financial planning
advisors.
• Games like “Know your partner“ was played for couples walking inside
the showroom. Random questions were asked about each other’s profile
in the form of games and after making the interaction interesting a small
talk on “Business opportunity” was given. Interested people’s name and
numbers were taken.
• Games like “Know your child“ was played for couples with children
walking inside the showroom . Random questions were asked about each
other’s profile in the form of games and after making the interaction
interesting a small talk of “Business opportunity” was given. Interested
people’s name and contact numbers were taken.
• Games like ”Color my dream “ contest was played in the showroom .In
which interested children would participate in the contest and while the
child is colouring ,the role of Financial planning advisors was explained
to parents .Also information regarding the products of Aviva life
Insurance also was given .All the interested names and mobile numbers
were collected.
• After the names and contact numbers of interested people were taken
calling was done and an appointment was fixed at Aviva’s office. The

42
 interested people were given proper explanation of the role of Financial
planning advisors .
• If the customer was convinced then a meeting was fixed with the branch
manager and his interview was taken.
• If the customer was convinced then his/her documentation is done.
2ndevent
• The other event was conducted at two societies each having around 300
residents.
• Games were organized in order to attract the crowd .Games like “colour
my dream” was conducted for small children in order to attract them and
their parents. Once the children get busy with the games the parents were
offered of their role as a Financial Planning Advisor.
• Interested people names and numbers were collected.
• After the names and contact numbers of interested people were taken
calling was done and an appointment was fixed at Aviva’s office. The
interested people were given proper explanation of the role of financial
planning advisors.
• If the customer was convinced then a meeting was fixed with the branch
manager and his interview was taken.
• If the customer was convinced then his/her documentation is done.
• Once the documentation is done the training is given to the financial
planning advisors. The training is given for a week from an IRDA
certified trainer.
• Training is given for 5 days and each day the training is given for 8 hours
daily
• The Training comprises of all the details of Aviva and its products.
• During the training the financial Planning advisors are prepared of how to
speak to their customers and pitch about Aviva’s products.
• The training conducted helps the financial planning advisors to get
prepared for the IRDA exam.

43
 After the training is conducted on a specified date IRDA certification Exam is
conducted in a LICENSE is issued to each Financial planning Advisor. The
license contains a specific Login ID and password. All the policies sold has to
be registered by the Financial planning advisor under his Login Id and
Password .Commission is granted based on the amount of policy logged in by
the specific Financial planning advisor .

ROLE OF A SALES MANAGER :

• Each financial planning advisor works under the guidance of a sales manager.
• The sales manager assists the financial planning advisor in closing the policy.
• The Sales Manager guides the financial planning advisors of the existing policies and
how to close the policies to its customers.

4.5) Approach made for Recruitment of Financial Consultants (FC)

at AVIVA life insurance

This is a good business opportunity offered by AVIVA LIFE INSURANCE to become a

business partner and earn a good amount of money.

Business description of financial consultant

Be our Certified Financial Consultant Join AVIVA LIFE INSURANCE Insurance as a
Financial Consultant and help analyze your customer’s financial needs, provide customized
financial solutions to each one and conduct reviews on a regular basis to keep your customers
on track.
Along with being a great career move you get associated with AVIVA LIFE INSURANCE
Insurance, India’s Most Respected Private Life Insurance Company. We at AVIVA LIFE
INSURANCE also offer you unmatched support with various training programmes to help you
excel in your Endeavour.

44
 A great career move in every way Zero investment, there is no start-up capital. You can work
full-time or part-time, depending on your convenience Sunrise industry Support every step of
the way At AVIVA LIFE INSURANCE, training is an inherent element of our support system
- at no extra cost - for our new Financial Consultants

EXCELLENT OPPORTUNITY
• Join AVIVA LIFE INSURANCE Insurance as a Financial Consultant and earn
a rewarding career
• Flexible work timings – You can work whenever you like. You can work full-
time or part-time, depending on your convenience. However, the time you invest
will determine your success
• Any one can join - Young graduates, Housewives, Retired Personnel, Self-
employed or Working Professionals.
• Zero Investment - There is no start-up capital required. Be your own boss with
flexible working environment, unlimited earning potential and opportunities to be
part of a world class sales team.
• Attractive Remuneration - Company offers excellent commissions, award and
rewards.
You have unlimited earning potential. Commission structure is pretty handsome
and is 7-40% and renewal commission of 5% second year onwards till the policy is
in force.The average commision srtucture is about 20%.
• Certificate by IRDA- You will get world class training free of cost and
certification by Insurance Regulatory Development Authority.
• TRAINING-Perfects your knowledge about the insurance industry as well as our
products

IRDA Training
Prepares you for your career as a Financial Consultant and enables you to pass the IRDA
examination easily

Training

Hones your selling skills, enables you to understand customer needs and provide need-
based insurance solutions

Advanced Training

45
Upgrades your capability and knowledge through sophisticated training programs
customized for the changing world of financial products and markets

Desired Profile for financial planning advisors :

Age: 18 Yrs to 65 Yrs

Education: Intermediate or more
Experience: Not Mandatory
Type of Job: Full Time or Part Time

Documents Required:
1)4 passport size photograph.
2) Age proof (passport, Birth certificate, College Leaving Certificate, Driving License)
3) Address proof
4) Education proof
5) Copy of PAN Card
A candidate needs to bring a DD of Rs. 750/- towards Aviva life Isurance payable at Gurgaon.

4.6)Recruitment process of Financial planning advisors

Fill up of Docket form

46
 IRDA Training (100 hrs)

IRDA Exam

Fail Pass

Product training

Fail pass

Exit Certification

4.7) Job Description for Financial consultants

47
Pre sales role

• Identifying prospective clients.

• Meeting prospective clients.
• Understanding the need of the client.
• Presenting solutions to client.
• Closing sales.

Post sales role

• Taking 1-2 references from the client

• Providing timely updates to the client for maintaining Lifelong relationship.

4.8) Benefits to Financial consultants

Financial Benefits:

Commission on issuance of every policy.

Commission directly credited to bank account of FCs within 15 days. These commission varies
from 7.5-40% according to plan.

BASIC COMMISSION
First year Commission payable on regular premium conventional policies issued on or after 21st
march 2007

Name of the plan 1st year commission

Endowment Assurance plan 40%
Money Back plan 40% RENEWAL
Children’s plan 40% COMMISSION:

Term Assurance plan 25% Renewal commission

would be paid from
Lone cover Term Assurance plan 25%
Personal Pension Plan 7.5%

48
 the 2nd year onwards on regular premium policies. Renewal commission is not payable on
single premium plans.

Name of the plan Renewal commission 2nd year

onwards
Endowment Assurance plan 5%
Money Back Plan 5%
Children’s plan 5%
Lone cover Term Assurance Plan 5%
Term Assurance plan 5%
Personal Pension Plan 2%

BONUS COMMISSION

Bonus commission would be payable on the first year premium received and adjusted on the
regular premium policies under the following plans,

1. Endowment Assurance Plan

2. Money Back Plan

3. Children’s Plan

4. Term Assurance Plan

5. Lone Cover Term Assurance Plan

Bonus commission is not payable on the single premium plans and on the policies issued
under the Personal Pension Plan and all Unit Linked Plans.

Bonus commission rate would depend on financial consultant crossing the minimum
RNEP(Received Net Effective Premium) within one year.

49
Period RNEP Bonus commission % of the 1st year Premium
received
In one year 1,00,000 5%
1,50,000 10%
2,25,000 15%

4.9) Tax Benefits

INCOME TAX GROSS ANNUAL HOW MUCH Aviva life insurance

SECTION SALARY TAX CAN YOU LIFE PLANS
SAVE?

50
Sec. 80C Across All income Upto Rs. 33,990 All the life insurance
Slabs saved on plans.
investment of
Rs. 1,00,000.

Sec. 80 CCC Across all income Upto Rs. 33,990 All the pension plans.
slabs. saved on
Investment of
Rs.1,00,000.

Sec. 80 D Across all income Upto Rs. 3,399 All the health insurance
slabs saved on riders available with the
Investment of conventional plans.
Rs. 10,000.

TOTAL SAVINGS
POSSIBLE Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under
Sec. 80 D, calculated for a male with gross annual income
exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,
subject to the conditions laid down therein.

Tax Benefits on Insurance and Pension

Life insurance and retirement plans are effective ways of saving taxes.

The tax breaks that are available under our various insurance and pension policies are described
below:

1. Life insurance plans of AVIVA Life Insurance are eligible for deduction under Sec. 80C.

51
2. Pension plans of AVIVA Life Insurance are eligible for a deduction under Sec. 80CCC.

3. Health insurance plans/riders of AVIVA Life Insurance are eligible for deduction under
Sec. 80D.

The proceeds or withdrawals of life insurance policies of AVIVA Life Insurance are
exempt under Sec 10(10D), subject to norms prescribed in that section

4.10) Opportunities of Aviva’s Financial Advisors

1) Make a good profit without a heavy investment.

2) Enjoy the benefit of residual income.
3) Maintain flexible work hours.
4) Earn attractive commissions.
5) Participate in exciting recognition programs.
6) Associate with AVIVA - One of the strongest brands of the country.
7) Capitalize on the growing Insurance market.
8)Become a full time sales manager.

A look at the number of agents in the insurance industry

Number of Agents
Number of Agents
Company Name
Dec 07 (Nos)

Aviva Life 31,390

Bajaj Allianz Life 273138

52
Bharti Axa 10016

Birla Sunlife 86264

Future Generali 0

HDFC Std Life 132662

ICICI Prudential 262893

ING Vysya 48428

Kotak 34714

Max New York 29,876

MetLife 32389

Reliance Life 157052

Sahara Life 12244

SBI Life 33969

Shriram Life 16521

TATA AIG 32528

LIC 1159586

* The Figures are provisional and unaudited

4.11)SALES PROCESS WHICH IS USED IN AVIVA LIFE

Insurance:
Our sales process involved Personal selling. Our product being an intangible one, it needs the
company personnel to go and persuade the customer via addressing to his doubts and concerns.
We need to undergo requisite interaction with the prospective customers to gauge their mood
with respect to different price levels. As the sales personnel are also aware of the competitors’
price and, based on the market reaction and customers’ sentiments, they can advise a more
prudent price policy to the management.

53
 The sales person actually stimulates and generates enough interest in the customer and helps
him make the final decision to buy the product.

Steps in personal selling

Personal selling involves six important steps –

Prospecti Preapproa Approach

ng ch

Follow-up
Presentati Closing
on

Prospecting

Prospecting is the process of identifying the prospective buyers of the product. The
prospects are those who have the need or will to buy and the power to pay. A prospect is
qualified if he has the authority, need, ability and eligibility to buy. In our context prospects
used to be the owners in case of a small company and Promotions & Advertising head in that of
a big organization.

54
Ways of identifying a prospect

Acquaintance Reference: A satisfied customer can be a good source of information about the
names, addresses and phone numbers of the prospects who may be among his acquaintances,
relatives or family members. In addition we used to give reference of our other satisfied
customer to motivate the prospect to buy, thus obtaining further references.

Cold Calling: In this method we used to randomly call a customer without any reference, with
an anticipation of converting the call into sale. This method is also called ‘random prospecting’.

• A large chunk of numbers were collected from various internet websites

like amfyindia.com and from different Real Estate websites,list of mutual
fund advisors in and around the office area and then cold calling was done
to take proper appoinments at a desired location .
• In cold calling around 1000 numbers were collected and calling was done.
Calling was done to prospects of various profiles like mutual fund
advisors, real estate agents , stock brokers , cable operators, summer camp
owners, internet parlour owners.
• After the calling was done the a proper appointment was fixed at the
his/her office and the products were explained properly .
• If the customer was convinced then a meeting was fixed with the branch
manager and his interview was taken.

If the customer was convinced then his/her documentation is done

Centre of Influence Method: Using this approach, i obtained the references for prospects from
eminent people of society. Using such references, the prospects are influenced to make a buying
decision since the recommendations of eminent personalities are taken seriously.This task
included going on the field and talking to te prospects personally.

55
Direct Mail or Telephone Method: This was the most frequently used method by us. I used to
contact the prospective buyer on the telephone and inform him about our product, price range,
benefits etc. I also used to send mail/letters to our existing customers informing them about
modifications made in the existing range.

Company’s Record: I was provided contacts of the prospective customers from company’s own
records. I used to follow up with them and get appointments and make sales therefore.

Pre – Approach

Pre – Approach is the second step in the selling process which emphasizes that salesman
should know, after identifying the prospects in the prospecting stage, the prospect’s likes and
dislikes, his needs, preferences, habits, nature, behavior, economic and social status etc. Based
on all this information, the salesman has the necessary tools to plan his visit/interview with the
prospect and can give an effective sales presentation. This kind of preparation to meet the
prospect is called the pre – approach.
Because of pre-approach i gained ample knowledge about the prospect. This helped us in giving
the presentation more efficiently, effectively and with confidence.

Approaching

In this stage the prospect and the salesman come in contact with each other face to face.
Here the salesman has the opportunity to understand and interact with the prospect in a better
way. Hence, the salesman should put forward his best efforts to make the best use of this
opportunity in getting the attention of the prospect and to convince him to buy the product.

56
 Hence, getting the attention of the prospect and persuading him to buy are the two main
objectives of a salesman. The importance of the approach cannot be overemphasized since it is
only after the salesman starts interacting directly with the prospect that the latter decides within
the first few minutes whether he needs to purchase or not. Similarly, the salesman has the
opportunity to judge whether the prospect is in the mood to buy or not.

I generally found it very difficult to approach the prospects owing to their busy schedule.
Also sometimes they are not interested in proposal. Despite this major hurdle I kept on trying to
obtain an appointment with the prospect. I needed to be a little diplomatic and polite in our
approach.

Different ways in which we gained access to the prospects:

Direct approach: I used to directly approach the prospect without any introduction whatsoever
and conduct an interview. I stated the benefits of our product and tried to arouse interest of the
prospect.

Advance Mailer: Another manner in which we used to seek an appointment with a prospect was
by sending an advance mailer explaining our product and its benefits vis - a - vis our
competitors. Such mailers were designed and written in a simple but attractive manner so as to
arouse the interest of the prospect.

Reference: This is the best method of securing an appointment with the prospect. References
could be obtained from friend, relative, or business associate of the prospect. This not only
facilitated the interview but also made the task of selling the product easier.

Sale letters: These proved to be another kind of a door opener. Such letters provide ample detail
about the product, benefits and schemes available with the product. Such letters signed by senior
executives, when sent in advance, facilitated our entry.

57
 A successful approach enhances the sale and it is thus important for running of a business.
A failed approach on the other hand gives an opportunity to the rival company. So a good
approach goes a long way in building good relations with the prospect, while a bad one causes to
lose the business & facilitates competitor’s entry.

Presentation

A good presentation is as important as a good product. The significance of a good

presentation of the product can be gauged from the fact that many a time an attractively packed
presentation is sufficient to sell the product. Prospects whom I convinced to fix an appointment
at office were given a good presentation about the products and its features.

Requirements of a good presentation:

I was required to explain the product with its features and price advantage to the customer in
simple and easy terms. We ought to have thorough knowledge about our product and also other
competitive products available in the market. This helps in satisfying all the queries of the
customers and answers them satisfactorily.

It is very important that customer be shown the kind of product he is looking for. This way not
only his time is saved but also he tends to make a quick decision.

The Close

This is the last stage of any sales presentation. The whole exercise becomes useless if the
sale does not take place. Therefore it’s most crucial stage for any salesman. The main aim of the
close is to convince the prospect to sign the contract form immediately rather than in future.

58
 For successfully closing the sale we needed to be attentive and open mind throughout so as
to be able to listen patiently to the prospect, face objections and confidently answer any queries
of them.

4.12)Commission Structure of financial planning advisors.

Different products will have different commission structures.

For example: Single Premium products will have a commission of 2%.

Renewal Commission is paid at the following rates:

 2nd yr: 7.5%

 3rd yr: 7.5%
 4th yr: 5%
 5th yr: 5% onwards.

4.13) MOST PREFERRED PROFILES TO RECRUIT AS

ADVISIORS/AGENTS
 Housewives
 Income tax consultant
 Charted accountant
 Sales personnel’s working in
 Automobile dealership
 Credit card co.
 Telecom
 Mutual fund

 DSA’s
 M R’s
 Doctors
 Teachers
 VRS holders
 Advisors of other insurance companies
 Post office agents
 Businessmen

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 Accountants OI in an organization
4.14) A Few approaches in targeting the financial planning
advisors
The basic aim of the company in providing us with this assignment was to find out the people’s
perception of their brand in the market and via this increasing their advisor base by encashing on
their brand name.

1) Hence, sales pitch in recruiting the good profile advisor was based on:

Money:

For those who are needy, greedy and speedy

 Excellent back end support, attractive payments and benefits

and
 Extensive training for that edge over competition

Reward and recognition

For those who want to be recognized and honored

 Several programs including foreign trips, seminars etc.

 Selected club memberships like president’s club, Aviva Star
Club, MDRT club etc.
 Achievements rewarded with trophies and certificates as
well with Point rewards to give you a flying start.

Carrier Prospects

For people who want to climb the success ladder fast.

This whole strategy was based on the MASLOW‘s THEORY OF

NEEDS.

2)Then, apart from going personally and meeting these already well-established
Advisors, I tried the concept of holding BOP (Business Opportunity presentation).

• For this I drafted an invitation, which was a gimmick so as to

entice these advisors into coming to our own office.

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 • And result was good in the sense that we were able to convert 2 to
5 advisors for our company then and there only.

3)Then, I targeted high profile people like CA’s or MBA’s or govt.People.

• For that, i drafted a letter in which i just gave them a hang of what our
proposal was for them (for recruiting them as our advisors) and asked
them to contact us themselves if they are interested.
• I got at least 10-15 calls of people who were interested and wanted to
become our advisors. Meetings were held with them and they were
converted.

5) SWOT ANALYSIS
Strength

Vast untapped market:

• In a country of 1 billion people there is a huge potential market for life insurance
products. In India the penetration of the insurance sector in the rural and semi-urban
areas is low. There is a market of 900 million for life insurance and 200 million for
householder’s insurance policy.

Huge pool of skilled professionals:

• Whether it is banks or insurance companies, there is no dearth of skilled professionals in

India to carry out a successful banc assurance venture.

Weakness:

• LIC is prevalent and sustains even today a major source of population.

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 • Low number of offices and network and number of life insurance agents.
• Lack of knowledge and expertise.

Opportunities:
Data mining:

• Banks have a huge customer database which has to be properly leveraged. Target
segments should be identified and tapped.

• Wide distribution networks of banks provides a great opportunity to sell insurance

products through banks

• Another potential area of growth of banc assurance is exploiting the corporate

customers and tying up for insurance of the employees of corporate clients.

• Life insurance has captured its mere 15 – 20% growth therefore a wide open
untapped market is open to the company to develop, grow and measure its
success.
• Still the numbers of companies are few and company has every capability to grow
and forward its performance areas to the widest.

Threats:

Human Resource Challenges

• Success in banc assurance venture requires a change in mindset. Though we have a large
talent pool, the inability to sell complex insurance products on the part of bank
professionals and their reluctance to learn can be severe setback. There has to be a
change in the thinking, approach and work culture.

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 • Non-response from the target groups can also pose a challenge as it happened in the USA
in 1980s.

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

6) Limitation:

Some of the difficulties and limitations faced by me during my training are as follows:

• Lack of awareness among the people – This is the biggest limitation found in
this sector. Most of the people are not aware about the importance and the
necessity of the insurance in their life. They are not aware how useful life
insurance can be for their family members if something happens to them.

• Perception of the people towards Insurance sector – People still consider

insurance just as a Tax saving device. So today also there is always a rush to buy
an Insurance Policy only at the end of the financial year like January, February
and March making the other 9 months dry for this business.

• Insurance does not give good returns – Still today people think that Insurance
does not give good returns. They are not aware of the modern Unit Linked
Insurance Plans which are offered by most of the Private sector players. They are
still under the perception that if they take Insurance they will get only 5-6%

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 returns which is not true nowadays. Nowadays most of the modern Unit Linked
Insurance Plans gives returns which are many times more than that of bank Fixed
deposits, National saving certificate, Post office deposits and Public provident
fund.

• Lack of awareness about the earning opportunity in the Insurance sector –

People still today are not aware about the earning opportunity that the Insurance
sector gives. After the privatization of the insurance sector many private giants
have entered the insurance sector. These private companies in order to beat the
competition and to increase their Insurance Advisors to increase their reach to
the customers are giving very high commission rates but people are not aware of
that.

• Increased competition – Today the competition in the Insurance sector has

became very stiff. Currently there are 14 Life Insurance companies working in
India including the LIC (life insurance Corporation of India). Today each and
every company is trying to increase their Insurance Advisors so that they can
increase their reach in the market. This situation has created a scenario in which
to recruit Life insurance Advisors and to sell life Insurance Policy has became
very very difficult.

• Market share:

2001-02 2002-03 2003-04 2004-05 2005-06

LIC

98% 94% 87% 78% 72%

Private

Players 2% 6% 13% 22% 28%

Industry growth rate at 36% (2004-05) with premium income From new business.

Source: Financial Express- Delhi

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Market Share

65
 Company Indian Foreign Market
share based
Promoter/ Insurance on premium
Partner
Aviva life Dabur Aviva, UK 1.12
Bajaj Allianz Bajaj Auto Allianz, 6.12
Germany

Birla sun life Aditya Birla Sun Life, 1.84

group Canada
HDFC HDFC Standard Life, 2.96
Standard UK

ICICI ICICI Bank Prudential, UK 7.11

Prudential

ING Vysya Vysya Bank ING Insurance, 0.63

Netherlands
Kotak Kotak Old Mutual 0.71
Mahindra, Mahindra South Africa
Old Mutual Bank
Max New Max India New York Life, 1.32
York US
MetLife Jammu & MetLife, US 0.40
Kashmir Bank
Sahara Life Sahara India None 0.80
Insurance
SBI Life SBI Cardiff, France 1.52
Tata AIG Tata Group AIG, US 1.78

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Additional Techniques that could be used to recruit Financial
Planning Advisors
E-Recruitment

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

Advantages of e-recruitment are:

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

The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as
“Online recruitment”, it is the use of technology or the web based tools to assist the recruitment
process. The tool can be either a job website like naukri.com, the organization’s corporate web
site or its own intranet. Many big and small organizations are using Internet as a source of
recruitment. They advertise job vacancies through worldwide web. The job seekers send their
applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job
seekers place their CV’s in worldwide web, which can be drawn by prospective employees
depending upon their requirements.

The two kinds of e- recruitment that an organization can use is –

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 • Job portals – i.e. posting the position with the job description and the job specification on
the job portal and also searching for the suitable resumes posted on the site corresponding
to the opening in the organization.
• Creating a complete online recruitment/application section in the company’s own
website. Companies have added an application system to its website, where the ‘passive’
job seekers can submit their resumes into the database of the organization for
consideration in future, as and when the roles become available.
• Resume Scanners: Resume scanner is one major benefit provided by the job portals to the
organizations. It enables the employees to screen and filter the resumes through pre-
defined criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the
job.

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

Online recruitment techniques

• Giving a detailed job description and job specifications in the job postings to attract
candidates with the right skill sets and qualifications at the first stage.
• E-recruitment should be incorporated into the overall recruitment strategy of the
organization.
• A well defined and structured applicant tracking system should be integrated and the
system should have a back-end support.
• Along with the back-office support a comprehensive website to receive and process job
applications (through direct or online advertising) should be developed.

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7) CHALLENGES…IN LIFE INSURANCE

• Training to large sales force

• Increased focus on need-based selling
• Persistency - Product
• Depends upon need-based selling and long-term focus
• Need to develop easier payment options
• Persistency – Sales Force
• Large part-time sales force
• Reaching the masses
• Micro insurance is yet to become popular
• Life insurance is yet to be accepted as an investment tool
• Rising cost of insurance operations – distribution, salary and occupancy costs
• Regulatory - higher solvency margins, service tax on ULIP – increasing cost for
consumer.

8) Achievements:

➢ Recruited eight financial consultants for company.

➢ Increase in confidence level.
➢ Got the knowledge about, how to differentiate our product form that of LIC which is the
most trustworthy insurance brand in India.
➢ Made more and more people aware about my companies Products (Policies)
➢ Taken some appointments for policies and got positive response from 8 persons .
➢ Taken appointments with 320 people and explained them about how a job of financial
planning advisors would be beneficial for them.
➢ Learnt “People Convincing Skills” which enriched the quality in me to understand their
needs and convince them properly.

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9) Unit Linked Insurance Polices (ULIPS)

Unit linked guidelines were notified by IRDA on 21st December 2005. The main intent of the
guidelines was to ensure that they lead to greater transparency and understanding of these
products among the insured, especially since the investment risk is borne by the policyholder. It
is the endeavor of IRDA to enable the buyer to make the most informed decision possible when
planning for financial security.

1. What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life
insurance policy which provides a combination of risk cover and
investment. The dynamics of the capital market have a direct bearing on the
performance of the ULIPs. REMEMBER THAT IN A UNIT LINKED POLICY,
THE INVESTMENT RISK IS GENERALLY BORNE BY THE INVESTOR.

2. What is a Unit Fund?

The allocated (invested) portions of the premiums after deducting for all the
charges and premium for risk cover under all policies in a particular fund as
chosen by the policy holders are pooled together to form a Unit fund.

3. What is a Unit?
It is a component of the Fund in a Unit Linked Policy.

4. What Types of Funds do ULIP Offer?

5. Most insurers offer a wide range of funds to suit one’s investment objectives, risk
profile and time horizons. Different funds have different risk profiles. The
potential for returns also varies from fund to fund.

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The following are some of the common types of funds available along with an indication of their
risk characteristics.

General Nature of Investments Risk Category

Description
Equity Funds Primarily invested in company stocks Medium to High
with the general aim of capital
appreciation
Income, Fixed Invested in corporate bonds, government Medium
Interest and Bond securities and other fixed income
Funds instruments
Cash Funds Sometimes known as Money Market Low
Funds — invested in cash, bank deposits
and money market instruments
Balanced Funds Combining equity investment with fixed Medium
interest instruments

6. Are Investment Returns Guaranteed in a ULIP?

Investment returns from ULIP may not be guaranteed.” In unit linked
products/policies, the investment risk in investment portfolio is borne by the
policy holder”. Depending upon the performance of the unit linked fund(s)
chosen; the policy holder may achieve gains or losses on his/her investments. It
should also be noted that the past returns of a fund are not necessarily indicative
of the future performance of the fund.

7. What are the Charges, fees and deductions in a ULIP?

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ULIPs offered by different insurers have varying charge structures. Broadly, the different types
of fees and charges are given below. However it may be noted that insurers have the right to
revise fees and charges over a period of time.

• Premium Allocation Charge

This is a percentage of the premium appropriated towards charges before allocating the units
under the policy. This charge normally includes initial and renewal expenses apart from
commission expenses.

• Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan. Mortality charges
depend on number of factors such as age, amount of coverage, state of health etc

The business of life insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones
in the life insurance business in India are given in the following table.

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Years Important milestones in the Indian life insurance business

1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business.

The Indian Insurance Companies Act was enacted for enabling the government to collect statistical
information on both life and non-life insurance businesses.

The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of
the insuring public.

245 Indian and foreign insurers and provident societies were taken over by the central government
and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off
with a capital of Rs. 5 crore and that too from the Government of India.

Table: 1

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the
British. Some of the important milestones in the general insurance business in India are given in the
following table.

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 Important milestones in the Indian general insurance business
Years

1907: The Indian Mercantile Insurance Ltd. was set up which was the
first company of its type to transact all general insurance business.

1957: General Insurance Council, an arm of the Insurance Association of

India, framed a code of conduct for guaranteeing fair conduct and
sound business patterns.

1968: The Insurance Act improved for regulating investments and set
minimal solvency levels and the Tariff Advisory Committee was set
up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India. It was with
effect from 1st January 1973.

Table: 2

1996 setting up of (interim) Insurance Regulatory Authority (IRA) Recommendations of the IRA.

1997 Mukherjee Committee Report submitted but not made public 1997 The Government gives

greater autonomy to LIC, GIC and its subsidiaries with regard to the restructuring of boards and

flexibility in investment norms aimed at channeling funds to the infrastructure sector. 1998 The

cabinet decides to allow 40% foreign equity in private insurance companies-26% to foreign companies

and 14% to NRI‟s, OCB‟s and FII‟s.

1999 The Standing Committee headed by Murali Deora decides that foreign equity in private

insurance should be limited to 26%. The IRA bill is renamed the Insurance Regulatory and

Development Authority (IRDA) Bill. 1999 Cabinet clears IRDA Bill. 2000 President gives Assent to

the IRDA Bill.

Unit Linked Insurance Product:

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ULIPs have gained high acceptance due to attractive features they offer. These include:
• Flexibility
• Flexibility to choose Sum Assured.
• Flexibility to choose premium amount.
• Option to change level of Premium /Sum Assured even after the plan has started.
• Flexibility to change asset allocation by switching between funds
• Transparency
• Charges in the plan & net amount invested are known to the customer
• Convenience of tracking one’s investment performance on a daily basis.
• Liquidity
• Option to withdraw money after few years (comfort required in case of exigency)
• Low minimum tenure.
• Partial / Systematic withdrawal allowed
• Fund Options
• A choice of funds (ranging from equity, debt, cash or a combination)
• Option to choose your fund mix based on desired asset allocation

10) COMPETITORS

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Life Insurance Corporation Of India(LIC)

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About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization of Life Insurance Industry. Nationalization was
accomplished in two stages; initially the management of the companies was taken over by means
of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament
of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life
Insurance Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a view to
reach all insurable persons in the country, providing them adequate financial cover at a
reasonable cost. 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC continues to be the dominant life insurer even in the
liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing
its own past records. LIC has issued over one crore policies during the current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year. For more details you
may log on to http://www.licindia.com/history.htm

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), India’s leading housing finance institution and one of the subsidiaries of Standard
Life plc, leading providers of financial services in the United Kingdom. The Standard Life group
has been looking after the financial needs of customers for over 180 years. It is a leading
pension’s provider in the UK. Both the promoters are well known in their respective fields of
activities. For more details you may log on to http://www.hdfcinsurance.com

Max New York Life Insurance Co. Ltd.

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Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a
Fortune 100 company and Max India Limited, one of India's leading multi-business corporations.
The Company's paid up capital is Rs. 587 crore, which is more than the norm laid down by
IRDA. . For more details you may log on to http://www.maxnewyorklife.com

ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's
foremost financial services companies-and Prudential plc- a leading international financial
services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 15.85
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI
Prudential commenced operations in December 2000. For more details you may log on to
http://www.iciciprulife.com.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra
Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial
institutions, offering complete financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking,
the group caters to the financial needs of individuals and corporates. Old Mutual plc is an
international financial services group, whose activities are focused on asset gathering and asset
management. For more details you may log on to http://www.kotaklifeinsurance.com

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Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance is a joint venture between the Aditya Birla Group and Sun Life
Financial, Birla Sun Life foraying into the life insurance and retirement planning business. The
Aditya Birla Group has a turnover close to Rs. 38000 crores (as on March 31, 2006) and is one
of the largest business houses in India. Additional information is available at
www.adityabirla.com.Sun Life Financial Inc. is a leading international financial services
organization providing a diverse range of wealth accumulation and protection products and
services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life
Financial and its partners today have operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda. As of March 31, 2006, the Sun Life Financial group of companies had total
assets under management of USD 343 billion. For more details you may log on to
http://www.birlasunlife.com/BirlaSunLife/Insurance/

Tata AIG Life Insurance Company Ltd.

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited
(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group,
Inc. (AIG). Tata AIG combines the strength of the Tata Group with AIG's international expertise
and financial strength. The Tata Group holds 74 per cent stake in the insurance venture with AIG
holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and
corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12,
2001 and started operations on April 1, 2001. For more details you may log on to
http://www.tata-aig.com.

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SBI Life Insurance Company Limited .

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France.
SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital

of Rs 500 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. State Bank of
India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group
has the unrivalled strength of over 14,500 branches across the country, the largest in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank.
BNP Paribas is one of the oldest foreign banks with a presence in India dating back to 1860.
Cardif is ranked 2nd worldwide in creditor’s insurance offering protection to over 35 million
policyholders and net income in excess of Euro 1 billion mark. Cardif has also been a pioneer in
the art of selling insurance products through commercial banks in France and 34 more countries.
For more details you may log on http://www.sbilife.co.in

ING Vysya Life Insurance Company Private Limited

ING Vysya Life Insurance Company Private Limited (the Company) entered the private life
insurance industry in India in September 2001.It has an advisor sales force of over 21,000
people, working from 140 branches located in 74 major cities across the country and over 3,000
employees. It also distributes products in close cooperation with the ING Vysya Bank network.
ING is a global financial institution of Dutch origin. It has 150 years of experience, and provides
a wide array of banking, insurance and asset management services in over 50 countries The
Company has a is headquartered at Bangalore. For more details you may log on
http://www.ingvysyalife.com

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Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-
Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2
and 3 wheeler manufacturers in the world. Characterized by global presence with a local focus
and driven by customer orientation to establish high earnings potential and financial strength,
Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. For more details
you may log on to http://www.bajajallianzlife.co.in

Metlife India Insurance Company Pvt. Ltd.

With over 137 years of experience, the MetLife companies are a leader in group benefits that
serve 88 of the top one hundred FORTUNE 500®* companies, and provide benefits to 37
million employees and family members through its plans sponsors in the U.S. The MetLife
companies are also ranked #1 in group life and #1 in commercial dental in the U.S. The MetLife
companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life
insurance in force. In India, MetLife was incorporated in 2001, and aims to differentiate itself
through customized need based selling, simple and innovative products, and technology-backed
service experience, to tread its path to build financial freedom for everyone. For more details you
may log on to http://www.metlife.co.in/MetIndia

Reliance Life Insurance Company Limited

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance -
Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in asset management and mutual

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funds, stock broking, life and general insurance, proprietary investments, private equity and
other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934. For more details you may log on to http://www.reliancelife.co.in

Sahara India Insurance Company Ltd.

The Sahara Pariwar’s life insurance company – Sahara India Life Insurance Company Ltd.- has
been granted license by the insurance regulator – the IRDA on 6th February 2004. With this
approval Sahara India Life Insurance Company Ltd. becomes the first wholly and purely Indian
company, without any foreign collaboration to enter the Indian Life insurance market. The
launch is with an initial paid up capital of 157 crores. The Chairman of the company is Shri
Subrata Roy Sahara who is also the Chairman of Sahara Pariwar. For more details you may log
on to http://www.saharalife.com

Percentage share of insurance companies in the market

11) COMPARATIVE STUDY OF AVIVA’S PRODUCTS WITH

OTHER LIFE INSURANCE COMPANY PRODUCTS

Firstly let us have a close look at AVIVA Young Scholar .AVIVA NEW YOUNG scholar is the
major plus potential product for AVIVA group. The major specifications of AVIVA NEW
YOUNG SCHOLAR are as follows

Aviva New Young Scholar is a comprehensive plan that enables to secure child’s future in any
eventuality through. The features are

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 • Attractive returns, enhanced by loyalty additions every year starting end of 5th year and
maturity addition to build the desired corpus of funds on maturity of the policy
• All future premiums being waived off and invested as a lump sum amount in to the funds,
so the policy continues even in the unfortunate event of the parent’s death, disability or
on contracting a critical illness, while the Sum Assured is paid out immediately
• Provision of a regular income for the minor child, in the event of parent’s death
• Systematic Transfer Plan for safe entry and safer exit into equities
• Option to minimize the effect of inflation through Indexation.

POLICY DETAILS

• Policy Term : 10 to 25 years, subject to the maximum maturity age parent as 70

years
• Premium payment term : 3 years or 5 years or equal to the policy term
• Premium Payment Frequency: Annually, Half yearly, Quarterly or Monthly
• Annual Premium:
• If premium payment term equals policy term, Minimum Rs 18,000;
Maximum: No limit
• If premium payment term is 3 years or 5 years, Minimum Rs 50,000;
Maximum: No limit
• Top-up Premium: Minimum - Rs 1,000; Maximum - up to 25 per cent of total
regular premiums paid
• Fund Options:· Fund Options: Bond-II, Protector-II, Balanced-II, Growth-II,
Enhancer-II, Infrastructure, PSU, and Index-II Funds
• Riders Available:
• Accidental Death Benefit rider (ADB)
• Income Benefit rider (IB)
• Comprehensive Health Benefit rider (CHB)

Step 1
Decide the corpus you wish to provide for child’s future and the time when the same should be
made available. This will influence the choice of premium and the policy term
Tip - Use the Child Education calculator to help you decide
Policy Term (PT) - 10-25 years, subject to maximum maturity age of 70 years
Step 2
Choose the level of protection you desire through:

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 • Level of Life Cover (Sum Assured)
• Riders
Life Cover = 5 x Annual Premium to 1.5 x Policy Term x Annual Premium Riders available:
• Accidental Death Benefit (ADB) rider(CHB)
• Comprehensive Health Benefit (CHB) rider(IB)
• Income Benefit (IB) rider
Step 3
Arrive at the amount of premium that the customer wish to pay, which will be determined by
step 1&2. Also choose the Premium Payment Term (PPT) and Premium Payment Frequency
(PPF) based on your convenience
• Premium paying term (PPT) - 3 years or 5 years or equal to policy term
• Minimum premium: Rs 50,000 (if PPT = 3 years or 5 years)
18,000 (if PPT = PT) Maximum = No limit
• Premium frequency: Yearly, Half-yearly, Quarterly, Monthly
Step 4
Choose the funds you want to invest in depending on your risk appetite
• Bond-II, Protector-II, Balanced-II, Growth-II, Enhancer-II, Infrastructure, PSU, and
Index-II Funds
• Automatic Asset Allocation Plan
• Systematic Transfer Plan

BENEFIT TO THE CUSTOMER

Death Benefit:
• All future premiums are waived off and invested as a lump sum amount into the
fund, so the policy continues even in the unfortunate event of the parent's death
while the Sum Assured is paid out immediately (same benefit on disability and
critical illness can be added using Comprehensive Health Benefit (CHB) rider)
• Provision of a regular income for the minor child, in the event of parent's death
with the Income Benefit (IB) rider .

Maturity Benefit:
• Attractive returns enhanced by loyalty additions and maturity addition to build the
desired corpus of funds on maturity of the policy.

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 • Loyalty Additions: If the customer pays all premiums on the policy, then AVIVA
provides with Fund Value related loyalty additions every year, starting end of 5th
policy year.
• Maturity Addition: If paid all due premiums, then AVIVA provides you with
maturity addition (2% of for regular premium policy and 0.5% for PPT of 3 or 5
years) as a percentage of Fund Value

If the customer is alive till maturity, then AVIVA will pay you the Fund Value (value of units
pertaining to regular premium and top-up premium, if any) plus Maturity Addition as on the
maturity date.
Following are the projected maturity values for a male aged 35 years, who pays
premiums yearly and invests 100% into Enhancer Fund-II:

Tax Benefit:
• The Policy offers tax benefits as per the prevailing laws of the Income Tax Act,
1961. Tax laws are subject to change
CHARGES TO BE PAID IN AVIVA YOUNG SCHOLAR
The policy will attract charges under various heads. The details of the same are given
below:

Charges for Year 1 Year 2 Year 3 Year 4 onwards

Premium Allocation 22-25%* 10% 5% 1%
Fund Management 1.35% across all funds
Policy Percentage of first year annual premium subject to maximum of Rs
Administration 1000 per month
Mortality To be paid.
Surrender Charges Surrender is possible only after 3 years

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 Charge is based on premium amount.
This depends on the number of years premiums paid and the year of surrender.

AVIVA NEW YOUNG SCHOLAR Vs BAJAJ ALLIANZ YOUNG CARE II

Specifications Aviva New Young Scholar Plan Bajaj Allianz Young Care II

Age 35years 35years

Premium Rs.1,00,000 Rs.1,00,000
Sum Assured Rs.5,00,000 Rs.5,00,000
Benefit period 20years 20years

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Premium Paying Term 20years 20years
FV@Maturity@10% 50,68,958 47,58,803
IRR/Yield@10% 8.21% 7.68%

Key Differentiators of Aviva New Young Scholar Plan Vs BAJAJ ALLAINZ

Young Care-II

Features AVIVA New BAJAJ ALLIANZ Benefit Impact

Young Young Care-11
Scholar

Fund Values Higher Returns Less Returns, Yield is Higher Maturity Value,
and better Yield Lower make ANYSP an excellent
education tool.

Increase/decrease in Available Not Available Change your premium with

premium your changing needs or
preferences
Riders Option of adding UL Accelerated AYSP offers more range of
IB,ADB & CI Critical illness Rider rider to take care of any
Rider and/or UL Accidental unforeseen events
Permanent
Total/Partial Disability
Benefit Rider, No IB
rider is available

Limited PPT Allowed Not Allowed change your premium

paying term with your
changing needs of
preferences
Guaranteed Guaranteed Not Available Guaranteed Maturity
Maturity Maturity Addition on maturity to
Addition addition is boost the fund value/value
payable at for money through
maturity as additional units at regular
per the rates intervals also in terms of
given below: loyalty addition

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 For PPT=PT:@
% of FV
FOR
PPT=3/0.5% of
FV
Fund Options Two new Not available Advantage of investing in to
Thematic Fund the thematic and futuristic
Options fund options
Systematic Available Not Available Advantage of regular
Partial income flow
Withdrawals
Systematic Available Not Available Advantage of rupee cot
Transfer Plan averaging by systematic
switches (52 or 12)from
protector 2 to enhancer 2
will be carried out free
Automatic Asset Available Not Available Moves portfolio
Allocation(AAA) systematically to debt fund
as the age increases

AVIVA NEW YOUNG SCHOLAR Vs MYNL Shiksha Plan Plus

Specifications Aviva New Young Scholar Plan MYNL Shiksha Plan Plus

Age(male) 3oyears 30years

Premium Rs.1,00,000 Rs.1,00,000

Sum Assured Rs.10,00,000 Rs.10,00,000
Benefit period 20years 20years
Fund chosen Balanced Fund-2 Balanced fund
Premium Paying Term 20years 20years
FV@Maturity@10% 50,94,936 46,96,263
IRR/Yield@10% 8.25% 7.36%

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Key Differentiators of Aviva New Young Scholar Plan Vs MNYL Shiksha
Plus Plan

Features AVIVA New MYNL shiksha Benefit Impact

Young Plus Plan
Scholar

Fund Values Higher Returns Less Returns, Yield is Higher Maturity Value,
and better Yield Lower providing better return on
investment makes ANYSP
an excellent education tool.

STP(with reverse Available Not Available Advantage of rupee cost

STP) averaging, thereby
averaging out the risk of
investing into equities
AAA Available Not Available Systematic move your
investments to low risk debt
funds with increasing age.
Riders Option of adding Dreaded Disease rider AYSP offers more range of
ADB,IB& CHB is available rider to take care of any
rider unforeseen events.
Option of Allowed Not allowed Adjust your life cover levels
decreasing the customized to suit your
sum assured requirement.

Indexation Option to Not available Adjust your premium as per

increase your inflation to beat rising cost
premium as of education.
per indexation

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 rate
Increase/Decrea Available Not Available Increase or Decrease your
se in premium regular premium in
accordance with your
changing needs and
preferences

AVIVA NEW PENSION PLAN Vs ICICI Pru Assure Pension

Particulars Aviva New Pension Plan ICICI Pru Assure Pension

Age(Male) 40years 40years

Premium Rs.1,00,000 Rs.1,00,000

Benefit period 20years 20years
Premium Paying Term 20years 20years
FV@Maturity@10% 53,01,000 49,93,746
IRR/Yield@10% 8.58% 8.09%

Particulars Aviva New Pension Plan ICICI Pru Assure Pension

Age(Male) 40years 40years

Premium Rs.50,000 Rs.50,000

Benefit period 20years 20years
Premium Paying Term 20years 20years
FV@Maturity@10% 25,75,617 24,90,592
IRR/Yield@10% 8.34% 8.07%

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Particulars Aviva New Pension Plan ICICI Pru Assure Pension

Age(Male) 40years 40years

Premium Rs.15,000 Rs.15,000

Benefit period 20years 20years
Premium Paying Term 20years 20years
FV@Maturity@10% 7,66,366 7,38,385
IRR/Yield@10% 8.28% 7.97%

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Key Differentiators of Aviva New Young Scholar Plan Vs ICICI PRU Assure
Pension

Particulars AVIVA New ICICI Pru Assure Benefit Impact

Pension Plus Pension

Fund Values & yield Higher Returns Less Returns, Yield is Higher Maturity Value,& a
and better Yield Lower better yield make ANPP an
excellent retirement
planning tool

Fund Options Two new Not Available Advantage of investing in to

Thematic Funds the thematic and futuristic
Options fund options.

Indexation Available Not Available Advantage of keeping pace

with inflation with regards
to the increased cost of
living vis a vis retirement.
Systematic Transfer Available Not Available Advantage of rupee cost
Plan(STP) averaging by systematic
switches (52 or 12) from
Protector 2 to Enhancer 2
will be carried out free.

Automatic Asset Available Not Available Moves portfolio

Allocation systematically to debt fund
as the age increases

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12) CONCLUSION
AVIVA life insurance is one of the oldest life insurance companies. It has businesses spread out
across the globe. It currently ranks number 4 amongst the insurers in India (Source: annual
premium provided by the company)

The company faces a large amount of competition. To sustain itself it must promote its products
through advertising and improve its selling techniques. Consumers must be aware of the new
plans available at AVIVA LIFE INSURANCE. The medium of advertising used could be
television since most of its competitors use this tool to promote their products. The company
must be promoted as an Indian company since consumers seem to have more trust in investing in
Indian firms.

The unit linked concept must be specifically promoted. The general perception of life insurance
has to change in India before progress is made in this field. People should not be afraid to invest
money in insurance and must use it as an effective tool for tax planning and long term savings.

AVIVA LIFE INSURANCE could tap the rural markets with cheaper products and smaller
policy terms. There are individuals who are willing to pay small amounts as premium but the
plans do not accept premiums below a certain amount. It was usually found that a large number
of males were insured compared to females. Individuals below the age of 30 (mostly male) were
interested in investment plans. This was a general conclusion drawn during prospecting clients.

Summer training is a best example for a trainee to learn about the company working, corporate
culture. AVIVA LIFE Insurance company where I gained a significant knowledge with respect
to life insurance, its importance and applicability as well as undertook the task to recruit capable
life insurance advisors which is conducive for the company to grow with more prosperity. What
I was taught in the management institute I utilized them fruitfully leading to the best advantage
to the company and to the best experience for mine.

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 In all Public Service jurisdictions, new approaches to recruitment are being used. In many
territories, the strategies are manual but, as automated methods become more pervasive, those
mechanisms that support its use will assume greater popularity.

Whatever the strategies selected for use, the objective is to recruit the most qualified,
committed individuals into the organizations and ensure that the provision of government
services to the public is timely and effective, that the goods are of consistent high quality and
that the organizations achieve the objectives for which they have been established.

Life insurance is a noble service which is very important for every citizen to learn and
realize its importance because this is the only source which can remain the status where one is
with the family bread earner and ever when he is not.

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13) RECOMMENDATION AND SUGGESTIONS

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

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Suggestions-

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

1. Need to train and develop life insurance agents with more comprehensive
knowledge and skills to counter every queries of the customer.

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

3. The advisors should be made aware and educated so that they can extend their
services not only in terms of collection of premium checks from the customer but
also to educate them about the insurance and the latest nontraditional plans.

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

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

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

6. Also, care need to be taken that every customer’s grievance should be met with
delight whether before purchase or after sales.

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 7. There should be an expansion measure for more offices and location of more
centers for offices of the company be established so that company may grow its
network.

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

society.

14) BIBLIOGRAPHY

Following are sources which helped me during my summer training-

BOOKS:

• KOTLER PHILIP: Marketing Management” 11th Revised edition.

• Mathew M.J. : Insurance, RBSA Publishers Jaipur.
• Handa Sunil : Insurance, Sheel Write Well (P) Ltd., Jaipur.
• S.Balachandran: IC33 LIFE insurance.

MAGAZINES:

• India Today
• Business World
• Business Economics

• LSE’s Magazine

REFERENCES:

• Websites-
www.avivaindia.com

www.irdaindia.org

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 www.liccouncil.org

www.niapune.com

NEWSPAPER:

• The Economics times

• The Hindu
• Times of India
• Business line

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