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INDUSTRY PROFILE
INTRODUCTION TO THE INDUSTRY
Introduction
The insurance sector was opened up in the year 1999 facilitating the entry of
private players into the industry. With an annual growth rate of 24.31
percent and the largest number of life insurance policies in force, thepotential of the Indian insurance industry is huge. The year 1999 saw a
revolution in the Indian insurance sector, as major structural changes took
place with the ending of Government monopoly and the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting entry
restrictions for private players and allowing foreign players to enter the
market with some limits on direct foreign ownership.
According to the CSO, the insurance and banking services contribution to
the countrys GDP is 7.1 percent out of which the gross premium collection
forms a significant part. Life insurance penetration in India was less than 1
percent till 1990-91. During the 90s, it was between 1 and 2 percent and
from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08
it was 14percent.
The impetus for increase is due to the active role played by IRDA in
licensing private players and taking positive steps in increasing the
insurance awareness among the people. Besides, the insurance companies
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in general and private insurance companies in particular, are reaching out
to untapped potential in rural areas with aggressive campaigns.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers
faster than anyone expected. Life insurance is viewed as a tax saving
device. People are now turning to the private sector for providing them with
new products and greater variety for their choice. The improvement in FDI
flows reflected the impact of recent initiatives aimed at creating an
enabling environment for FDI and for encouraging infusion of new
technologies and management practices. The Governments proposal to
increase the FDI cap in the insurance sector from the present 26 percent to
49 percent has raised expectations among the international insurance
companies.
Definition
Insurance is a contract in which sum of money is paid to the assured in
consideration of insurers incurring risk of paying a large sum upon a given
contingency. --- Justice Tindall
Insurance is a contract by which one party for a compensation called in the
premium assumes particular risks of the other party and promises to pay to
him or his nominee a certain sum of money on a specified contingency.
---
E.W.Fitterson
Insurance may be described as social device whereby a large group of
individuals, through a system of equitable contribution, may reduce certain
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measurable risk of economic loss common to all members of the group.
--Encyclopedia Britannica
The above definitions clearly shows that insurance is a cooperative device
to spread the loss caused by a particular risk over a member of persons who
are exposed to it and who agree to insure themselves against risk. Insurance
does not eliminate risk but only reduces the financial burden, which may be
very heavy.
Evolution of Insurance
In the days of yore insurance was in its crude form and was cooperative and
voluntary in nature. When, where and how it originated is still a matter of
research in one way or the other was prevalent in olden days. We can trace
its history from the evolution society from hunting stage to the modern
industrial age. A word YAGCHHEM occurs in the worlds most ancient
Hindu Scripture Rig Veda.
The word YAGCHHEM means insurance. It clearly indicated that about
four thousand years ago insurance was prevalent in its crude form. It was
cooperative and voluntary in nature. People formed different groups of
organizations to share the loss among themselves incase of a particular risk.
Each member contributed some amount to a common fund to meet the
unforeseen losses. Sometimes they also contributed equally to compensate
person as and when he suffered a loss. Traces of insurance in the ancient
world are also found in the form of marino trade loans or carriers contracts
which included an element of insurance.
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Evidence is on records that arrangements embodying the idea of insurance
were made in Babylonia and India at quite an early period. References were
made to the concept of insurance in Manus code Manu Smrity. It was
akin to Yagakshemo of Rigveda in which the well being and security of
the community was aimed at. However, there is no evidence that insurance
in its present farm was practiced prior to twelfth century.
Nature of Insurance
The insurance has the following characteristics which are observed in cases
of life, marine, fire and general insurance.
1. Sharing of risks: Insurance is a cooperative device to share thefinancial losses which might befall on an individual or his facility on
the occurrence of specified event such as sudden death of the bread
winner, marine perils in marine insurance, fire in the fire insurance
and theft insurance etc. in the case of general insurance.
2. Cooperative device: A large number of persons agree to share the loss
arising sue to a particular risk. Thus, insurance is a cooperative
device.
3. Value of risk: The risk is evaluated before insuring to charge the
amount of share called premium.
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4. Payment made at contingency: The payment is made at a certain
contingency insured. The Contingency may be death, fire, marine
perils etc.
5. Amount of payment: The amount of payment depends upon policy
insured.
Functions of Insurance
A) Primary Functions-
1) Insurance provides certainty: Insurance provides certainty of
payments at the uncertainty of losses. The element of
uncertainty is reduced by better planning and administration.
2) Insurance provides protection: The risk will occur or not, when
will occur and how much loss will be there. There are
uncertainties of happening of time and amount of losses. The
main function of the insurance is to provide protection against
the losses.
3) Risk sharing: Risk is uncertain and therefore, the loss arising
from the risk is also uncertain. All business concern faces the
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problem of the risk and if the concern is big enough the
handling of risk becomes a specialized function. Insurance, as
a device is the outcome of the existence of various risks in our
day to day life. It spreads the whole losses over a large number
of persons who are exposed by a particular risk.
B) Secondary Functions-
1) Prevention of loss: Prevention is always better than cure.
Prevention is by far the best solution to the problem of risk. It
is more effective and cheapest method to avoid the unfortunate
consequence. But sometimes prevention is not always possible
and Effective.
2) Provides capital: It provides the capital to the society. For plan
development of country there is a great need for huge amount
of capital. Now days, the insurance companies are rendering
positive help in the development of trade, commerce and
industry of the country.
3) Improves efficiency: Achievement of goals, it improves not
only his efficiency of the masses is also advanced. The
insurance eliminates worries and miseries of losses as deathand destruction of property care free person can devote his
energies for better.
4) Ensures the welfare of society: Insurance is a saga of service
and security to thee society. Security of the life and property
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given by insurance bring peace of mind to the insured. The
investment in LIC in welfare schemes like electricity, housing,
water supply, agro industry estates are able to solve many
problems in India.
5) Helps in economic progress: Insurance provides an initiative to
work hard for the betterment of the masses. Life insurance
involves the element of saving investment through small
savings. And which has been growing in recent years at an
annual rate of about Rs. 400 crs. Life insurance is not a mere
business organization; it has nobler welfare responsibilities in
the development of the economy.
Insurance Industry
Introduction
With an annual growth rate of 15-20% and the largest number of life
insurance policies in force, the potential of the Indian insurance industry is
huge. Total value of the Indian insurance market (2004-05) is estimated at
Rs.450 billion (US$10 billion). According to government sources, the
insurance and banking services contribution to the country's gross
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domestic product (GDP) is 7% out of which the gross premium collection
forms a significant part.
The funds available with the state-owned Life Insurance Corporation (LIC)
for investments are 8% of GDP. Till date, only 20% of the total insurable
population of India is covered under various life insurance schemes, the
penetration rates of health and other non-life insurances in India is also
well below the international level. These facts indicate the of immense
growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major
structural changes took place with the ending of government monopoly and
the passage of the Insurance Regulatory and Development Authority
(IRDA) Bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign
ownership.
Though, the existing rule says that a foreign partner can hold 26% equity in
an insurance company, a proposal to increase this limit to 49% is pending
with the government. Since opening up of the insurance sector in 1999,
foreign investments of Rs. 8.7 billion have poured into the Indian market
and 21 private companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers
faster than anyone expected. Indians, who had always seen life insurance as
a tax saving device, are now suddenly turning to the private sector and
snapping up the new innovative products on offer.
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The life insurance industry in India grew by an impressive 36%, with
premium income from new business at Rs. 253.43 billion during the fiscal
year 2004-2005, braving stiff competition from private insurers. RNCOSs
report, Indian Insurance Industry: New Avenues for Growth 2012, finds
that the market share of the state behemoth, LIC, has clocked 21.87%
growth in business at Rs.197.86 billion by selling 2.4 billion new policies in
2004-05. But this was still not enough to arrest the fall in its market share,
as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05
from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year
(2004-2005) compared to the previous one, its market share came down
from 87.04 to 78.07%. The 14 private insurers increased their market share
from about 13% to about 22% in a year's time. The figures for the first two
months of the fiscal year 2005-06 also speak of the growing share of the
private insurers. The share of LIC for this period has further come down to
75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers. According to estimates, private
insurance companies collectively have a 10% share of the non-life
insurance market.
Though the focus of this market research report is on the potential growth
on the Indian Insurance Sector, it also talks about the market size, market
segmentation, and key developments in the market after 1999. The report
gives an instant overview of the Indian non-life insurance market, and
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covers fire, marine, and other non-life insurance. The data is supplied in
both graphical and tabular format for ease of interpretation and analysis.
This report also provides company profiles of the major private insurance
companies.
Report Highlights
Gains of liberalization in Indian insurance sector Indian insurance market segmentation by products
Size of the market and market share of life insurers, in INR (crore)
Market share of non-life insurers
Forecast of life insurance growth up to 2012
Forecast of non-life insurance growth up to 2012
Market revenue of both public and private insurers
Policies and measures taken by IRDA to develop the insurance
market
Research and development activities
Regulation of insurance and reinsurance companies
Major challenges that Indian insurance sector is facing
Profiles of the major players
LIFE INSURANCE
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Definition
The life insurance contract embodies an agreement in which broadly
stated, the insurer undertakes to pay a stipulated sum upon the death of the
insurer to a designated beneficiary.
--- J.H.MAGEE
Life insurance contract may be defined whereby the insurer, in
consideration of premium paid either installment, undertakes to pay anannuity on the death of the insured of a certain number of years.
--- R.S.SHARMA
A contract of life assurance is that in which one party agrees to pay a given
sum on the happening of a particular event contingent upon the duration of
human life in consideration of immediate payment of a smaller sum by
another.
--- BUNYONS LAW
Advantages of life insurance
1. It is superior to an ordinary saving plan: this is so because unlike
other saving plans, it offers full protection against risk of death.
2. Insurance encourages and enforces thrift : many people may not have
the will power to continue a long term saving plan which they may
formulate regular payments in face of money other uses to which
their limited income could be put.
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3. Easy installments and protections against creditors: the proceeds of a
life insurance policy can be protected against the claims of the
creditors of life assured by affection a valid assignment of the
policies.
4. Tax relief: the income tax act exempts from tax that part of an
individuals income which is devoted to payment of life insurance
premium.
5. Estate duty: life insurance is the most practicable way to ensure
definite payment on ones death without having resort to conversion
of realizable asset at a loss.
Why Life Insurance?
Life Insurance has come a long way from the earlier days when it was
originally conceived as a risk covering medium for short periods of time,
covering temporary risk situations, such as sea voyages. As life insurance
became more established, it was realized what a useful tool it was for a
number of situations, including
1. Temporary needs / threats: The original purpose of life insurance
remains an important element, namely providing for replacement ofincome on death etc.
2. Regular Savings: Providing for one's family and oneself, as a medium
to long term exercise (through a series of regular payment of
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premiums). This has become more relevant in recent times as people
seek financial independence for their family.
3. Investment: Put simply, the building up of savings while safeguarding
it from the ravages of inflation. Unlike regular saving products,
investment products are traditionally lump sum investments, where
the individual makes a one off payment.
4. Retirement: Provision for later years becomes increasingly necessary,
especially in a changing cultural and social environment. One can
buy a suitable insurance policy, which will provide periodical
payments in one's old age.
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Let us take an example to understand the need for insurance:
Mr. Pranay is 45 years of age and self-employed. His wife Nandini, who is a
housewife, looks after their two children aged 3 and 7 years.
They stay in a rented accommodation, where the rent is 15,000 rupees per
month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on
average are 40,000 rupees. Mr. Atul passes away in an unfortunate road
accident. What are some of the financial implications of his death on his
family? There may be several financial implications on his family. Some of
these are:
a) The monthly income, previously provided by Mr. Atul would stop.
b) His wife and children may have to seek financial assistance from other
relatives.
c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.
d) The family may have to move into a cheaper accommodation.
e) His widow may have to take up work to earn money.
f) The education of his children may suffer.
This simple example illustrates the impact premature death can have on a
family, where the main earner has no life cover. Had Mr. Atul taken life
cover, his family would not have faced such hardships in the event of his
unfortunate death. A simple life insurance policy could have provided Mr.
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Atul's family with a lump sum that could have been invested to provide an
income equal to all or part of his income.
In simple words, insurance protects against untimely losses. Insurance has
been found useful in the lives of persons both in the short term and long
term. Short term needs like sudden medical costs and long term needs like
marriage expenses etc can be met with using life insurance.
Life Insurance in India
With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India. Today it
stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 percent to the countrys GDP .In spite
of all this growth the statistics of the penetration of the insurance in the
country is very poor. Nearly 80% of Indian populations are without Life
insurance cover and the Health insurance.
This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations
were introduced in the insurance sector and in continuation Malhotra
Committee was constituted by the government in 1993 to examine the
various aspects of the industry. The key element of the reform process was
Participation of overseas insurance companies with 26% capital. Creating a
more efficient and competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to
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the existence of LIC. Since the liberalization of the industry the insurance
industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players
and the increased use of the new distribution are in the limelight today. The
use of new distribution techniques and the IT tools has increased the scope
of the industry in the longer run.
History
The origin of insurance is very old .The time when we were not even born;
man has sought some sort of protection from the unpredictable calamities of
the nature. The basic urge in man to secure himself against any form of risk
and uncertainty led to the origin of insurance. The insurance came to India
from UK; with the establishment of the Oriental Life insurance Corporation
in 1818.
The Indian life insurance company act 1912 was the first statutory body that
started to regulate the life insurance business in India. By 1956 about 154
Indian, 16 foreign and 75 provident firms were been established in India.
Then the central government took over these companies and as a result the
LIC was formed. Since then LIC has worked towards spreading lifeinsurance and building a wide network across the length and the breath of
the country. After the liberalization the entrance of foreign players has
added to the competition in the market.
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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. In 1957
General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business
practices. In 1972 The General Insurance Business (Nationalization) Act,
1972 nationalized the general insurance business in India with effect from
1st January 1973.
It was after this that 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the
United India Insurance Company Ltd. GIC incorporated as a company.
Present Scenario
The government of India liberalized the insurance sector in March 2000
with the passage of the Insurance Regulatory and Development Authority
(IRDA) bill. Policies come under the purview of the government appointed
Tariff Agenty Committee. The opening up of the sector is likely to lead to
greater spread and deepening of insurance in India and this may also
restructuring and revitalizing of the public sector companies. A host of
private insurance companies operating in both life and non life segments
have started selling their insurance policies since 2001.
Non life insurance market, In December 2000, the GIC subsidiaries were
restructured as independent insurance companies. At the same time, GIC
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was converted into national re-insurer. In July2002, Parliament passed a
bill, delinking the four subsidiaries from GIC.
Presently there are 12 general insurance companies with 4 public sector
companies and 8 private insurers. Although the public sector companies still
dominate the general insurance business, the private insurance companies
have a 10 percent share of the market, up from 4 percent in 2001. In the
first half of 2002, the private companies booked premium worth 6.34
billion. Most of the new entrants reported losses in first yr of their
operation in 2001.
Insurance costs constitute roughly around 1.2 2 % of the total project
costs. Under the existing norms, insurance premium payments are treated
as part of the fixed costs. Consequently they are treated as pass through
costs for tariff calculations. For projects costing up to Rs.1 billion, the tariff
Agent committee sets the premium rates, for projects between 1 billion and
15 billion, the rates are set in keeping with committees guidelines; and
projects above 15 billion are subjected to reinsurance pricing. It is the last
segment that has a number of additional products and competitive pricing.
Insurance, like project finance, is extended by a consortium. Normally one
insurer takes the lead, shouldering about 40-50% of the risk and receiving
proportionate percentage of the premium.
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INSURANCE REGULATORY DEVELOPMENT AUTHORITY(IRDA):
In 1999, the Insurance Regulatory and Development Authority (IRDA) were
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April 2000.
The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and
lower premiums, while ensuring the financial security of the insurance
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market. The IRDA opened up the market in August 2000 with the invitation
for application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame regulations
under Section114A of the Insurance Act, 1938 and has from 2000 onwards
framed various regulations ranging from registration of companies for
carrying on insurance business to protection of policyholders interests.
ROLE OF IRDA:
Protecting the interests of policyholders.
Establishing guidelines for the operations of insurers and brokers.
Specifying the code of conduct, qualifications, and training for insurance
intermediaries and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural
sectors.
COMPANY PROFILE
OUR COMMITMENT
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U S Roy (MD & CEO)
Life SBI Insurance Co. Ltd.
Our company, with its unique brand and highly committed workforce, is
determined to increase life insurance penetration and offer need-based
solutions our citizens, enabling them to live life to the fullest. I invite you to
explore the several possibilities available for being an integral part of this
dream, of one of the fastest growing life insurance companies in the
country. For customers, SBI Life a company of State Bank Group which is
synonymous with trust for more than 200 years presents security for you
and your loved ones through its range of innovative life insurance
solutions. With the backing of the largest distribution network in the
country of over 14,500 bank branches of State Bank and nearly 200 full-
service offices of the company, you are always close to your trusted life
insurer.
For prospective business partners, by associating with one of the largest
financial brands in the country, SBI Life gives you a lucrative business
opportunity to profit from serving millions of Indians. In terms of
career opportunities, SBI Life presents its most valuable asset, its
employees, work environment which is a blend of security and excellence.
We seek opportunities to give qualified minority suppliers a chance
to succeed. It benefits SBI LIFE and our communities.
U S Roy
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MD & CEO
SBI LIFE Insurance Co. Ltd.
INTRODUCTION TO THE ORGANIZATION
SBI Life Insurance
SBI Life Insurance Company Limited is a joint venture between the State
Bank of India and BNP Paribas Assurance. SBI Life Insurance is registeredwith an authorized capital of Rs 2000 crores and a Paid-up capital of Rs
1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance
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, arguably the largest in the world.
BNP Paribas Assurance is the life and property & casualty insurance unit of
BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds
top 6 group of banks by market value and a European leader in global
banking and financial services, is one of the oldest foreign banks with a
presence in India dating back to 1860. BNP Paribas Assurance is the fourth
largest life insurance company in France, and a worldwide leader in
Creditor insurance products offering protection to over 50 million clients.
BNP Paribas Assurance operates in 41 countries mainly through the banc
assurance and partnership model.
SBI Life has a unique multi-distribution model encompassing Banc
assurance, Agency and Group Corporate. SBI Life extensively leverages the
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SBI Group as a platform for cross-selling insurance products along with its
numerous banking product packages such as housing loans and personal
loans. SBI access to over 100 million accounts across the country provides a
vibrant base for insurance penetration across every region and economic
strata in the country ensuring true financial inclusion.
SBI Life extensively leverages the State Bank Group relationship as a
platform for cross-selling insurance products along with its numerous
banking product packages such as housing loans and personal loans.
Mission
To emerge as the leading company offering a comprehensive range of life
insurance and pension products at competitive prices, ensuring high
standards of customer satisfaction and world class operating efficiency, and
become a model life insurance company in India in the post liberalization
period.
Values
Trustworthiness
Ambition
Innovation
Dynamism
Excellence
Key Milestones
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A) Financial Year 08-09:
Bagged the coveted personal finance award-Outlook Money
NDTV Profit best Life Insurer 2008.
Ranked among global top three in terms of number of Million
Dollar Round Table (MDRT) members.
CRISIL has reaffirmed its highest financial rating AAA/Stable
to SBI Life. In 2007 SBI Life became the first life insurer in
India to receive this rating from CRISIL, countrys leading
rating agency.
Recently ICRA, has assigned iAAA rating indicating highest
claims paying ability to SBI Life Insurance.
Retains ISO 9001:2000 certificate for superior claim settlement
process.
B) Financial Year 07-08:
Rated as the The Most Trusted Private Life Insurer according
to a survey conducted by Brand Equity in association with AC
Nielsen ORG-MARG and the Economic Times Intelligence
Bureau.
Became first life insurer in India to receive the highest
financial rating AAA from CRISIL, the countrys best known
rating agency in 2007.
Ranked amongst global top five life insurance companies in the
number of MDRT members.
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Forayed into micro insurance with the launch of Grameen
Shakti in Bhubaneshwar, Orissa for the economically
underprivileged sections of society.
Received ISO 9001: 2000 certification for superior claim
settlement process.
Became the only domestic life insurer to achieve CMMI Level
3 certification for IT processes and software development
capabilities.
C) Financial Year 06-07:
Second consecutive year of profitability.
Leads Private Life Insurance Companies in Lives covered :
6.49 Million lives covered.
D) Financial Year 05-06:
Becomes the first Life Insurer to make profits.
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PRODUCTS
Horizon- II
SBI Life - Horizon II is a unique, non participating Unit Linked Insurance
Plan in Indian Insurance Industry, where you need not to be a financial
market expert. This plan offers the flexibility of Unit Linked Plan along
with Automatic Asset Allocation which provides relatively higher returns
on your money where as increasing death bench.
Twin benefit of insurance cover and market linked returns profits provides
higher security to Hassle-free investment management of funds from
inception to maturity, Automatic Asset Allocation of funds, automatic
rebalancing of funds at yearly intervals, free of cost higher protection, to
meet your family financial needs.
It is a unique, non-participating Unit Linked Insurance Plan. As per the plan
and term chosen by you, SBI Life will invest the net premium amount into
each of the funds mentioned.
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Maha Anand
SBI Life - Maha Anand is a simple & convenient unit linked plan, which
provides you insurance cover without any medicals.
Life begins afresh when you become a parent and when the child takes that
first step towards you, the moment is filled with cheer, enthusiasm never
felt before. This moment marks a new beginning in the childs life and
theres no looking back after that. The child keeps growing and so are his
dreams, aspirations which always aim to reach horizon and you want your
child achieve his/her dreams. But at the same time as a proud parent you
also want to secure their future against rising cost of education and other
necessities.
Key Features-
Twin benefit of market linked returns and insurance cover
Simple Joining Process - No medical examination required
Option to pay premium, as low as Rs 500 p.m.
Choice of 3 fund options to choose from
Flexibility to increase your investments, through Top-upInvestment
Flexibility through Switching and Redirection Options
Liquidity through partial withdrawals
Attractive Tax benefits under the Income Tax Act, 1961
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Unit Plus- II
We at SBI Life understand the basic needs for pension plan and give youfinancial strength to maintain your life style even after the retirement. SBI
Life - Unit Plus II Pension plan makes sure that you have regular income
after you retire and also helps you to maintain your standard of living.
This is a unit linked pension plan wherein the policyholder chooses an
investment period from 5 to 52 years for a vesting age between 50 to 70
years. You can choose to pay either single premium or pay regular premium
for the entire policy term. Your contributions are invested into 5 fund
options as per your choice.
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Unit Plus Child Plan
We at SBI LIFE understand you better and hence have developed SBI Life -
Unit Plus Child Plan to suit you and your needs best. This Plan is meant for
parents in the age group of 18-57 having a child between the age group of 0-
15 years.
Key Features-
Market related returns to match increasing cost of education Peace of Mind by giving you triple benefits
Loyalty units to celebrate your child reaching 18 years
New Investment Fund (Equity Optimizer Fund) in addition to
existing funds.
Pay Premium for a limited period and reap benefits over a long
time.
Flexible plan which adapts to your changing needs as and when
you want.
Pension plan
We at SBI Life understand the basic needs for pension plan and give you
financial strength to maintain your life style even after the retirement. SBI
Life - Unit Plus II Pension plan makes sure that you have regular income
after you retire and also helps you to maintain your standard of living.
This is a unit linked pension plan wherein the policyholder chooses an
investment period from 5 to 52 years for a vesting age between 50 to 70
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years. You can choose to pay either single premium or pay regular premium
for the entire policy term. Your contributions are invested into 5 fund
option.
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Key Features-
Choice to invest & control four different funds as per your risk
appetite
Choice to invest & control four different funds as per your risk
appetite.
Flexibility to choose between two options
Pure Pension
Pension cum Life Cover
No medical required for Pure Pension, automatic acceptance
facility
Flexibility to increase regular contribution
Top up payments: any amount, anytime
Customize your plan by adding riders
15 days free look period
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Smart ULIP
In the current volatile market scenario you need a plan which not only
protects your investment, but also enables you to get market related returns.
SBI Life - Smart ULIP is the perfect answer to your need, and will give you
not only Guarantee on select NAVs during the first seven years, but also
gives you the added attraction of participating in the market upside.
Key Features-
Guarantee of the highest of select NAVs, during the first seven
years on maturity.
Investment cum Insurance plan giving market related returns
Convenience through shorter premium paying term, giving you
a choice between two premium paying terms (PPT)
Power of more- Guaranteed Maturity NAV, continues beyond
the premium payment term.
Innovation structured investment fund-Flexi protect Fund
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Hassle free plan- we manage your investment, giving you
maximum opportunity for growth while protecting your
investments against adverse market conditions.
Attractive Tax benefits under the Income Tax Act, 1961
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Health Products
Financial planning is incomplete without planning health insurance. Due to
todays hectic lifestyle, improper diet, lack of exercise we are at higher risk
of contingencies of untimely serious illnesses. Sudden health problems
could have deep hole in your pockets. Medical science has advanced by
leaps and bounds in the last few decades. Theres a definite need to cover
for health insurance to reduce the financial burden.
SBI Life Insurance features both individual and group products like:
1. Unit Linked Products- this is a single non participating product group that
meets both the financial as well as insurance needs.
2. Pension Products- these comprehensive plans help to meet your post
retirement financial needs.
3. Pure Protection Products- nobody can predict future. So, any time
anything can shatter ones dreams. Pure Protection Products help to keep
one safe and secure during these trouble times.
SBI Life also offers some protection cum savings products and money back
scheme products. SBI also has products for brokers. These products take
inspiration from the endeavors of various industries and make your life
easy.
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Tax Benefits
SBI Life Insurance Company has outperformed ICICI Prudential Life
Insurance in terms of new business premium collection this year, according
to the data published by the Insurance Regulatory and Development
Authority (IRDA). Life Insurance Corporation (LIC) still retains the top
rank among all the insurers, with a market share of 61.88 per cent in the first
two months (April-May) of the present financial year. SBI Life has taken
the second position, with Rs 783.94 crore new business premiums collected
in this year, amounting to 9.06 percent of the market share. ICICI Prudential
Life Insurance, which still has the largest market share among the private
life insurers as per capitalization and number of lives covered, has slipped to
the third rank, with a premium collection of Rs 483 crore and a market share
of 5.59 per cent up to May.
SBI life had collected Rs 546.34 crore in the previous year compared with
ICICI Prudential that had gathered Rs 951.76 crore. SBI Life Insurance has
a capital of Rs 2,000 crore and a paid-up capital of Rs 1,000 crore. SBI
owns 74 per cent of the total capital with BNP Paribas Assurance holding
the remaining 26 per cent.
According to figures made available by IRDA, LIC was on the top position
with a market share of 41 per cent on the new business premium collection
in the previous year. LIC was followed by ICICI Prudential, with 12.2 per
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cent market share and SBI Life, with 8.9 percent. The insurance companies
ranking is often based on the new business premium coming out of the new
policies that are sold, though a large chunk of the money also comes from
renewal premium. Other leading life insurance companies, such as Bajaj
Allianz Life, Max New York Life and Reliance Life insurance, enjoy a
market share of 3 to 4 per cent each. In the previous financial year, when the
global financial crisis unfolded, insurance companies saw no growth in
business when compared with the previous year. This was primarily because
of weak investor confidence and the flight to safety that the investors had
adopted after the equity markets came crashing down.
"All insurance advertising offers a solution after implicitly raising the fear
of death or uncertainty of retirement. There are 14-15 players in the market,
all saying more or less the same negative things. So we wondered, is there
any other way to reflect what we wanted," says Mr. Muralidharan. On the
surface, insurance is about death. But why should one insure? "It's to make
sure an individual, and then her or his dependants, live well. So, if insurance
is portrayed in this light, we can get a larger number of people to accept it,"
he adds.
The size of the life insurance market is Rs 11,323 crore. SBI Life, which
started operations in 2001, has a market share of 1.49 per cent in terms of
premium and 8.97 per cent in terms of number of people insured, says Mr.
Muralidharan. Old and major player LIC has 67 per cent in terms of lives
insured and a market share of 74.26 per cent. Insurance companies also face
the challenge of getting younger people to invest. Most people under thirty
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think they are "indestructible," says Mr. Muralidharan. The ads are
"unpalatable" and "determine your death" and definitely discourage a lot of
very suave, articulate people from even contemplating insurance, so our
campaign aims to "remove the whiff of death" from it and make it a
"happiness product", he says.
Project Profile
Eligibility For Recruitment of an Insurance Agent
Every person who has cleared higher secondary examination can become an
agent other than a minor or the person who is convicted in any court for
crime or any legal proceedings. Men and women both can work as an
Agent. A single person can be associated with other life insurance
companies.
A training program is there to train a person who wants to become an
Agent. There is 100 Hrs. training program which can be done either with the
physical appearance in the class room or the interest basis. In the classroom
training the trainee has to be physically present in the training session.
There are difference sessions of training program. A trainee can attend any
session according to his comfort. The training period is of 25 days approx.
If the trainee does not have enough time to devote in the classroom training,
then there is another option left that is training on Internet.
On the basis of Internet the trainee has provided a login number along with
the password through which he operated his login and completed his
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training as convenient. Each and every hour pass on the net under his login
head will be count on his account. The test for the training program is also
on line. This is only procedure to be an Insurance Agent.
Scope of Insurance Agent
In the present scenario the living standard is becoming higher and higher
every day.
Every person who has a family to survive wants to provide his family each
and every possible comfortable thing.
He wants his children to be a well dressed, to be higher qualified in a well
recognized school, colleges, institutes and wants his children to go abroad
for higher education.
He wants to live a luxury life full of pleasure.
To fulfill all of his needs he has to earn more and more.
Any person can be on a job at a time or can be on a business cant fulfill his
pleasure requirement.
There is a source through which he can make money in a legal way that is
insurance sector.
Becoming an insurance Agent provides him the legal source by which he
can earn money with his current status.
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It is the business in which you deal with you personal contacts and can gain
extra income.
This business needs low investment and not of much effort.
Its all depending on your social contacts and your skills to convince people
by helping them to suggest the product which suited them the most.
As due to critical diseases, growing percentage of accident and fear of
financial crisis everyone wants to secure his or her future.
Insurance sector plays a vital role in assuring people about their future.
As the scope of insurance enhancing, the need of an insurance Agent who
can guide the potential customers is growing.
Being an insurance agent of SBI Life Insurance provides a legal mean to
earn money which protects a person from earning through an illegal source
which is harmful for society as well as him.
For the youngsters it provides great platform to prove them. On the basis of
their performance they can be recruited as unit manager.
Recruitment Process
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations.
Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time. A general recruitment process is as follows:
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1. Identifying the vacancy-The recruitment process begins with the
human resource department receiving requisitions for recruitment
from any department of the company. These contain:
Posts to be filled
Number of persons
Duties to be performed
Qualifications required
Preparing the job description and person specification.
Locating and developing the sources of required number and type
of employees (Advertising etc).
Short-listing and identifying the prospective employee with
required characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process
i.e. the final interviews and the decision making, conveying the decision and
the appointment formalities.
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Fig.2.1 Recruitment process
The recruitment procedure of life insurance is very easy. 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 provides a license, which is the proof of a legalized
insurance Agent, which permits him to deal in his insurance business.
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Steps in recruitment of Insurance Agents
Approach to the likely person
Appointment as per condition
Discuss the topic
Give the documents which includes:-
1. Prospectus of the company
2. Brochure3. Companys plan
4. Questionnaire
Collect the document after its completion
Forward it to project manager
Feed it in the computer as the database
Follow up as per conditions
Modes of Contact
Personal Contacts
References
Phone Calls
Guidance as per Unit Manager
E-Recruitment
Many big life insurance organizations use Internet as a source of
recruitment. E- Recruitment is the use of technology to assist the
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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 CVs 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 organizations 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 CVs 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
companys 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 criterias 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 timeand costs on recruitments.
Online recruitment techniques
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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.
Sources of Recruitment
Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external
sources. The sources within the organization itself (like transfer of
employees from one department to other, promotions) to fill a position are
known as the internal sources of recruitment. Recruitment candidates from
all the other sources (like outsourcing agencies etc.) are known as the
external sources of recruitment.
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SOURCES OF RECRUITMENT
Internal Sources
1. Transfer: The employees are transferred from one department
to another according to their efficiency and experience.
2. Promotions: The employees are promoted from one department
to another with more benefits and greater responsibility based
on efficiency and experience.
3. Others are Upgrading and Demotion of present employeesaccording to their performance.
4. Retired and Retrenched employees may also be recruited once
again in case of shortage of qualified personnel or increase in
load of work. Recruitment such people save time and costs of
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the organizations as the people are already aware of the
organizational culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and
Disabled employees are also done by many companies so that
the members of the family do not become dependent on the
mercy of others.
External Sources
1. Press Advertisements: Advertisements of the vacancy in
newspapers and journals are a widely used source of
recruitment. The main advantage of this method is that it has a
wide reach.
2. Educational Institutes: Various management institutes,
engineering colleges, medical Colleges etc. are a good source
of recruiting well qualified executives, engineers, medical staff
etc. They provide facilities for campus interviews and
placements. This source is known as Campus Recruitment.
3. Placement Agencies: Several private consultancy firms
perform recruitment functions on behalf of client companies by
charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as
RPO (Recruitment Process Outsourcing)
4. Employment Exchange: Government establishes public
employment exchanges throughout the country. These
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exchanges provide job information to job seekers and help
employers in identifying suitable candidates.
5. Labor Contractors: Manual workers can be recruited through
contractors who maintain close contacts with the sources of
such workers. This source is used to recruit labor for
construction jobs.
6. Unsolicited Applicants: Many job seekers visit the office of
well-known companies on their own. Such callers are
considered nuisance to the daily work routine of the enterprise.
But can help in creating the talent pool or the database of the
probable candidates for the organization.
7. Employee Referrals / Recommendations: Many organizations
have structured system where the current employees of the
organization can refer their friends and relatives for some
position in their organization. Also, the office bearers of trade
unions are often aware of the suitability of candidates.
Management can inquire these leaders for suitable jobs. In
some organizations these are formal agreements to give priority
in recruitment to the candidates recommended by the trade
union.
8. Recruitment at Factory Gate: Unskilled workers may be
recruited at the factory gate these may be employed whenever a
permanent worker is absent. More efficient among these may
be recruited to fill permanent vacancies.
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2.4.5 Factors Affecting Recruitment
The recruitment function of the organizations is affected and governed by a
mix of various internal and external forces. The internal forces or factors are
the factors that can be controlled by the organization. And the external
factors are those factors which cannot be controlled by the organization.
The internal and external forces affecting recruitment function of an
organization are:
Factors Affecting Recruitment
Internal Factors
The internal factors i.e. the factors which can be controlled by the
organization are:
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1. Recruitment Policy: The recruitment policy of an organization
specifies the objectives of recruitment and provides a framework for
implementation of recruitment program. It may involve
organizational system to be developed for implementing recruitment
programs and procedures by filling up vacancies with best qualified
people.
Factors affecting recruitment policy
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
2. Human Resource Planning: Effective human resource planning helps
in determining the gaps present in the existing manpower of the
organization. It also helps in determining the number of employees to
be recruited and what qualification they must possess.
3. Size of the Firm: The size of the firm is an important factor in
recruitment process. If the organization is planning to increase itsoperations and expand its business, it will think of hiring more
personnel, which will handle its operations.
4. Cost: Recruitment incur cost to the employer, therefore,
organizations try to employ that source of recruitment which will
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bear a lower cost of recruitment to the organization for each
candidate.
5. Growth and Expansion: Organization will employ or think of
employing more personnel if it is expanding its operations.
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External Factors
The external forces are the forces which cannot be controlled by the
organization. The major external forces are:
1. Supply and Demand: The availability of manpower both within and
outside the organization is an important determinant in the
recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for theprofessionals demanded by the company, then the company will have
to depend upon internal sources by providing them special training
and development programs.
2. Labor Market: Employment conditions in the community where the
organization is located will influence the recruiting efforts of the
organization. If there is surplus of manpower at the time of
recruitment, even informal attempts at the time of recruiting like
notice boards display of the requisition or announcement in the
meeting etc will attract more than enough applicants.
3. Image / Goodwill: Image of the employer can work as a potential
constraint for recruitment. An organization with positive image and
goodwill as an employer finds it easier to attract and retain employees
than an organization with negative image. Image of a company is
based on what organization does and affected by industry. For
example finance was taken up by fresher BBAs when many finance
companies were coming up.
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4. Political-Social- Legal Environment: Various government
regulations prohibiting discrimination in hiring and employment
have direct impact on recruitment practices. For example,
Government of India has introduced legislation for reservation in
employment for scheduled castes, scheduled tribes, physically
handicapped etc. Also, trade unions play important role in
recruitment. This restricts management freedom to select those
individuals who it believes would be the best performers. If the
candidate cant meet criteria stipulated by the union but union
regulations can restrict recruitment sources.
5. Unemployment Rate: One of the factors that influence the availability
of applicants is the growth of the economy (whether economy is
growing or not and its rate). When the company is not creating new
jobs, there is often oversupply of qualified labor which in turn leads
to unemployment.
6. Competitors: The recruitment policies of the competitors also affect
the recruitment function of the organizations. To face the
competition, many a times the organizations have to change their
recruitment policies according to the policies being followed by the
competitors.
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BRANCHES OF SBI LIFE INSURANCE :
EFFECTIVE MARKETING STRATEGIES FOR INSURANCE
PRODUCTS:
Now the Indian consumer is knowledgeable and sensitive. Consumers are
increasingly more aware and are actively managing their financial affairs.
People are increasingly looking not just at products, but also at integrated
financial solutions that can offer stability of returns along with
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total protection. In view of this, the insurance managers need to understand
more about the details that go into the introduction of insurance products to
make it attractive in this competitive market. So now days an insurance
manager requires leadership, commitment, creativity, and flexibility. "Every
family in every village in the country should feel safe and secure". This
vision alone will help to bring the new ideas to the insurance manager.
Financial, marketing and human resource polices of the corporations
influence the unit mangers to make decisions. Performance of insurance
company depends on the effectiveness of such policies. Insurance
corporations formulate and revise these policies from time to time to ensure
that the performance of the managers is best for the organization. In the
competitive market, insurance companies are being forced to adopt strictly
professional approach in marketing. The insurance companies face the
challenge of changing the uninspiring public image of the industry.49Some
of the important marketing elements are-
Marketing mix.
The importance of relationship.
Positioning.
Value addition.
Segmentation.
Branding.
Insuring service quality.
Effective pricing.
Customer satisfaction research.
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The growth of insurance sector is governed largely by factors external to it.
The following factors influence the market and demand of product-
Government policies.
Growth in population.
Changing age profile.
Income wise distribution of the population.
Level of insurance awareness.
The pricing of the policies.
The economic climate of the country.
The aversion to risk.
Social and political features of the country.
Growth scenario in the world.
Different companies adopt different approaches in their marketing
strategies. One approach is focus upon product quality, which can give
confidence in the mind of customers that they are offered by best-featured
products. And other approach is focusing on customers needs, which
involve a heavy investment in developing relationships with policyholders.
Under this approach customer can expect a range of products and service
offered to him. Third approach is market segmentation under which thepopulation can be divided into several homogeneous products and groups,
the effort should be tie clients to the company by customized combination
of coverage, easy payment plans, risk management advice, and convenient
and quick claim handling.
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SWOT ANALYSIS:
STRENGTHS:
Since the tribe of life insurers has grown from 12 to 16, but SBI still leads
the private sector pack. SBI life is the Ranks among Global Top Three atMillion Dollar Round Table.
Their strategy has been to grow the portfolio large enough so that there is an
in-built hedge and in a market where the portfolio has larger element of
savings rather than protection, this works well. And to make sure they can
grow the business, they have built a distribution network.
Product innovation is a focus area for them. To stay relevant to the
consumer they work hard for innovating and developing new products.
The insurer is fortunate to have the strength of the SBI Bank brand behind
it; that went a long way in instilling confidence in customers that the brand
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was trustworthy a very important attribute in insurance and would be
there for the long-term.
Even today after it has rolled out so many campaigns, SBI remains among
the most trusted brand.
SBI Life is fundamentally strong and the prospect of meeting
its policyholder's obligations as highest.
WEAKNESSES:
Minimum premium for single term is 40000 which is very high.
We dont have any plan for senior citizens.
Customer cannot withdraw amount before 3years this is the main reason
people believe in mutual funds for short-term investment.
Allocation charges are very high.
Product awareness.
Very less branches.
Less awareness about SBI Life insurance in rural areas.
SBI life is still dont have reach in rural place. LIC of India does maximum
business from rural areas.
OPPORTUNITIES :
Market is booming. Insurance companies are fast emerging as one of the
most prominent players in the govt. securities market.
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Lack of awareness about insurance is one of major opportunity for SBI Life
Insurance. It can create market for itself by making masses aware about
insurance and its need.
Policies of govt. of India are favorable for the growth of the company.
THREATS:
Capital requirement for setting up a life insurance company is very high.
The intensity of rivalry among private players is very high.
Increased competition in the insurance sector.
The insurance sector remains a very competitive market and those
companies that are able to best utilize their data and provide their customer
with the nearly all personalized options will have the distinct competitive
advantage. The insurers that come up to the top will be those who leverage
the appropriate.
Indian people still not believe in private insurance companies so generate
new business is very difficult for new insurance Company
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Research Methodology :
Questionnaire To the General Public
To find out the perception of the persons about SBI Life Insurance
Name :- __________________________________
Address :- ________________________________
Age Group :-
Below 25.25 40 years.
40 55 years.
Above 55 years.
Occupation :-
Student.
Service.
Professional.
Other, Please Specify ____________________
Are you aware about SBI Life Insurance?
75% of people are aware about the SBI Life Insurance Company.
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25% of people are not aware about the SBI Life Insurance Company.
Do you have any account in SBI Bank?
70% of the public have their account with the SBI Bank.
30% of the public do not have any account in SBI Bank.
Do you have any investment plans of SBI Life Insurance?
62% of the them.
38% of them dont have it.
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Are you satisfied with the plans of SBI Life insurance?
Have you invested in any other life insurance company other
than SBI Life insurance?
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Would you like to take any investment plans of SBI Life, if you
find it better?
What do you think what are the benefits of the life insurance?
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Which feature of life insurance policy will you consider while
buying?
According to you what is the right age to buy insurance?
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Articles related to the SBI Life :
SBI Life Insurance net profit up 52% to Rs 556 cr.
Shilpy Sinha, ET Bureau May 2, 2012, 04.04PM IST
MUMBAI: SBI Life Insurance posted profit of Rs 556 crore, an increase of
52% in 2011-12 over the last financial year 2010-11 mainly due to better
operational efficiency. Also, the insurer for the first time, since its inception
in 2001, has declared a dividend of 5%.The new business premium
collected by the company was down by 13% to Rs 6,531 crore, while
private insurers was down 17% during 2011-12. The company has increased
its market share to 19.9% in 2011-12, from 19.2% among private life
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insurers. The company is a joint venture between State Bank of India and
BNP Paribas Cardif.
IRDA slaps Rs 70L fine on SBI Life.
TNN | Jul 11, 2011, 04.29AM IST
MUMBAI: SBI Life Insurance, the country's largest new generation life
insurer and a subsidiary of State Bank of India, has been fined Rs 70 lakh
by the insurance regulator for making unauthorized payments up to Rs 204
crore to various banks, including Rs 186 crore to the State Bank group,
between 2005 and 2010.
Announcing the penalty, IRDA on Friday said that its group insurance
norms bar companies from making any payment to corporate agents in
excess of the commission approved by the authority. "Despite these specific
guidelines, the life insurer made payments in violation to eight of its
corporate agents and six other master policy holders," said IRDA chairman
in his written order.
The IRDA has treated payment to each entity as an individual violation and
imposed a penalty of Rs 5 lakh for each of the 14 offences. SBI Life had
said that that these payments were reimbursement of administrative
expenses in consideration of certain functions discharged by various entitiesin their capacity as master policyholder. However, this argument was not
accepted by the regulator. IRDA's norms explicitly bar insurers from
making payments either towards management expenses, document expenses
or profit commission or bulk discount or payment of any other description
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to agents, corporate agents, group organizers or group managers. IRDA has
said that the 'master policy holder' to whom SBI Life has made payments is
a synonym for group organizer or master policy holder.
CONCLUSIONS
During the data collected, it has been found that people have great
awareness about SBI Life Insurance.
People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.
People in general have been influenced by the marketing activities
of insurance companies. A high penetration of print, radio and TV ad
campaigns over the years is beginning to have its impact now.
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Another important trend was in terms of people viewing insurance as a tax
saving and investment instrument as much as protective one.
The general satisfaction levels among public with regards to policy and
agents still requires improvement. Here lies the opportunity for a relatively
new comer like SBI Life Insurance. LIC has never been known for prompt
service or customer oriented methods but SBI Life Insurance can build its
reputation based on these factors.
37% out of 75% people those who are aware about SBI Life Insurance have
investment plans of it.
25% people not aware about SBI Life Insurance, hence they invested in
other Life Insurance Company.
83% out of 37% people those who have SBI Life Insurance investment
plans are very satisfied with these plans because of good services, returns,
guarantee, brand image, premium, nice features, attractive plans etc.
70% of the people those who dont have account in SBI Bank think that
they cant take investment plans of SBI Life Insurance.
67% People thought that Covers future uncertainty, tax saving and
investment are some of the benefits of Life Insurance People are interested
in those plans that give maximum profit in short term
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RECOMMENDATION AND SUGGESTIONS
Recommendations-
Following are suggestions made for the benefits and augmentation of the
sound working of the company SBI life insurance
1. Need to train and develop life insurance agents with more
comprehensive knowledge and skills to counter every queries
of the customer.
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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 customers 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.
Suggestions-
Following are suggestions made for the benefits and
augmentation of the sound working of the company SBI life insurance:
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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 thatshould 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 customers 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