icici prudential life insurance - advisors recruitment--edited

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Chapter 1 Introduction


EXECUTIVE SUMMARYWith new competitors coming every now and then in the field of business, the company positioning should be strong enough to retain its position in business. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED has positioned itself strongly with high-class advisors, unit manager, and technical persons. The study that is being made is that TO UNDERSTAND THE ADVISORS RECRUITMENT PROCESS OF ICICI LIFE INSURANCE AND THEIR ROLE IN SALES To make this research mostly Primary data is being used, taking a sample size of 65 peoples. The Research Methodology that is being implemented in this study is Sampling Method. The company is having the largest sales force after Life Insurance Corporation of India ,follows a strict code of recruitment as the advisors or the sales persons as they are going to be companys advisors or ambassadors. The result which was found from this research clearly shows a company should be more flexible to the training program they organized for the high profile advisor. The project undertaken is the thorough study of the service & activities, which the company is willing to give each advisor. From the survey it was revealed that ICICI PRUDENTIAL is doing quite well in all the sections of its operation.


Objective:The objective may be defined as Something worked toward or striven for; a goal .The objective of my study is to understand the ADVISORS RECRUITMENT PROCESS in ICICI PRUDENTIAL LIFE INSURANCE and THEIR ROLE IN INSURANCE BUSINESS.


Chapter 2 Literature Review


What is Insurance?Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party happening of a certain event. Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance Companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The insurance Company act as a trustee to the amount collected through premium. Insurance is generally classified in three main categories, (i) Life Insurance, (ii) Health insurance and (iii) General Insurance To get insurance an individual or an organization can approach to an insurance Company directly, through Insurance Agent of the concerned company or through Intermediaries.

Benefits of InsuranceInsurance is the instrument of Security, saving and peace of mind. It provides several benefits by paying a small amount of premium to an insurance company as: Safeguards oneself and one's family for future requirements Peace of mind-in case of financial loss. Encourage saving. Tax rebate Protection from the claim made by creditors Security against a personal loan, housing loan or other types of loan Provide a protection cover to industries, agriculture, women and child

Indias Insurance Sector6

OverviewIndian insurance market size is presently estimated at US$ 66-70 million. By 2006, it was expected to grow five-fold to US$ 377 million. In 2000-01 fiscal year, total premiums stood at US$ 9933 million which is 0.41 percent of total global premiums of US$ 2443.6 billion. Total premiums of Indian insurance industry in 2000-01 fiscal was 2.32 percent of country's GDP. Per capita premium stood at US$ 9.9. Indian insurance market potential could be gauged by the fact that currently about 40-42 million people have been brought under insurance whereas the potential is estimated at 200-250 million. Insurance companies could tap only 5 percent of Indian middle class segment.

Indian federal government considers insurance as one of major sources of funds for infrastructure development. The government has identified the following as major thrust areas: Timely and reliable statistical data and information about policies and markets to instill a degree of credibility; A code of good practices based on international best practices to raise the standard of Indian insurance sector; Strengthening of supervision and regulation; Market participation in decision-making; High solvency standard' and Developing alternative channels.

Till end of 1999-2000 fiscal year, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance (both life and non-life) providers in India. Under GIC there were four subsidiaries-- National Insurance Company Ltd, Oriental Insurance Company Ltd, New India Assurance Company Ltd, and United India Assurance Company Ltd. In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private sector investors. Foreign investment insurance market was also allowed with 26 7

percent cap.

IS INSURANCE A WORTHWHILE CAREER?Considering that insurance is a profession that is identified with accidents and untoward incident and those insurance officials have a poor image of over promising and underdelivering on the insuring public, is insurance an honorable and worthwhile profession? The answer is yes. This profession provides a framework for learning about human nature at its raw; makes one persistent in his efforts; provokes to rethink on revised strategies and procedures for achieving goals. One is required to think and feel like a lawyer and to make allowance for the views and feelings of others in arriving at decisions. One is required to rapidly build up gaps in his knowledge base, should he want to succeed in the profession. Ones ability to compromise and work with others is continually on trial. One has an opportunity to become a complete human being who can show care and consideration for others.

Insurance Regulatory Authority:On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners. In this economic reform process the Insurance Companies will boost the socio-economic development process. The huge amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholders will get better pricing of products from competitive insurance companies.


There are some benefits of life Insurance as: Protection: Life Insurance guarantee full protection against risk of death of the assured. In case of death, full sum assured is payable. Long term saving: Life Insurance encourages long term saving. By paying a small premium in easy installments for a long period a handsome saving can be achieved. Liquidity: Loan can be obtained against a policy assured whenever required. Tax Profit: Tax relief in income tax and wealth tax can be availed on the premium paid for Life Insurance. By the year 1956, 154 Indian insurance, 16 non-Indian insurance and 75 provident societies were carrying on Life insurance business in India. On 1st September 1956 all the Insurance Companies were nationalized. On September 1956, LIC Act was passed by Indian Parliament and the state run Life Insurance Corporation of India (LIC) has held the monopoly in countries life Insurance sector. Life Insurance Products Almost every company is offering same products, the difference are rates of premium, or the riders. Some of the important products are as follow: An Endowment Policy: Under this, policyholder will get survival benefits (if he/she survives the policy) or his/her nominees, will get sum assured plus addition bonus, if applicable (in the event of policyholders death). Money back Policy: Under this policy holder will get a portion of his/her sum assured at regular intervals during their lifetime; in the event of policy holders death, nominee of the policy will get the sum assured, with additions and bonus, where applicable. A whole Life Plan: Under this policyholder pay premium virtually through his/her life time, and not be eligible for any of the benefits, which will go only to the policy nominee. A tem Plan: Under this policyholder will get insurance cover for a specified term, typically 5, 10, 15 years. Benefits accrue to nominee only in the event of 9

policyholders death during the period. Distribution Channels in Life Insurance Distribution is all about getting your product/service to the right people at the right time with special consideration for profit and effectiveness. Successful marketing does not end when a business has developed a product/service and has found its appropriate target audience with a view to selling it at the 'right price'. The next issue that needs to be faced is how they are going to distribute and sell this product/service to the people- the consumers. When a consumer purchases a product/service, it may have been bought directly from the business, or it may have been through a number of intermediaries (Brokers, Agents, etc).


The business of insurance done by insurance companies (13 private and 1 public) called as insurers, is to bring together persons with common insurance interests (Sharing the same risks), collecting the share or contribution (called premium ) from all of them and paying out compensation (called claim) to those who suffer. THE CURRENT SET-UP: With opening up of the insurance sector for private participation in the yea