Summer Training Project

PROJECT REPORT ON

ADVISOR’S RECRUITMENT AND SELECTION A Summer Training Project Submitted in partial fulfillment of the requirements for the Award of degree of Bachelor of Business Administration 2008-2009 Submitted by Sumit kohli

Project Guide Mrs.SoniaMalik

BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT AND RESEARCH NEW DELHI

ACKNOWLEDGEMENT

The making of any project calls from many others, besides the individual alone. It is the result of meticulous efforts put in by many minds that contribute to the final report formation. Several eminent people at Bharti Axa life Insurance have made valuable contributions to this report through their inputs. I duly acknowledge my gratitude to each one of them. I am grateful to the HR department to help me in making project on “advisor’s recruitment in Bharti Axa Life Insurance”. I would also like to thank Bharati Vidyapeeth University, Institute of Management and Research, which gave me an opportunity to accomplish my project. My special thanks to my faculty guide, Mrs. Sonia malik. At last, I would like to acknowledge all those who helped directly or indirectly in various areas in completing the project and related study and made my training a wonderful experience.

PREFACE In today’s competitive and dynamic world, with easy business providing the same kind or services, only that firm which comes up with an innovative idea can hope to survive in the long run, by attracting and luring customers. Insurance sure is an upcoming sector but with the privatization of the same, selling insurance products has become tough due to the competition angle attached to it. This project involves the detailed profile of BHARATI AXA LIFE INSURANCE and what is the process of agency recruitment in BHARATI AXA LIFE INSURANCE. One should be well aware with ‘insurance’ to complete or to start this project. The very first step involved is to describe the history of the industry in brief, and then comes the research methodology which contains objectives and the methods involved in it. Company profile will proceed after this, which further is discussed with concepts. Another important step is to analyze the data collected during the specific period. This project report deals with recruitment process matters, which are basics should be known to everybody in the insurance industry. The career of insurance agency is profoundly rewarding one, not merely in terms of money, but in terms of prestige and satisfaction of having done well to others. Insurance advisor earn the gratitude of their customers as few others professionals do, this will happen as the advisors keep learning at work.

INDEX

CHAPTER NUMBER I

CHAPTER NAME INTRODUCTION TO THE STUDY

II

CONTENTS

PAGE

INDIAN INSURANCE

NUMBER 5

INDUSTRY ABOUT IRDA DUTIES, POWERS &

8 9

FUNCTIONS OF IRDA COMPANY PROFILE LIFE PLANS RESEARCH METHODOLOGY 2.1 OBJECTIVES OF STUDY

12 16 47

2.2 SCOPE OF THE STUDY

48

2.3 METHODOLOGY

49

2.4 LIMITATIONS OF THE

51

STUDY ANALYSIS OF DATA

36

III IV V

DATA ANALYSIS FINDINGS SUGGESTIONS AND

VI VII

RECOMENDETATIONS CONCLUSION ANNEXURE

64 65

VIII

BIBLIOGRAPHY

67

62

Chapter 1

INTRODUCTION OF INDUSTRY

Indian Insurance Industry

Insurance is a federal subject in India The insurance sector to 26%, the insurance sector has been a booming market. However, the largest has gone through a number of phases and changes. Since 1999, when the government opened up the insurance sector by allowing private companies to solicit insurance and also allowing up life-insurance company in India is still owned by the government.

History In India has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkatta to cater to the needs of European community. The pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurance company covering Indian lives at normal rates. Insurance At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparage still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business. Before that, the industry consisted of only two state insurers: Life Insurers ) and General Insurers GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies:

Currently, in India only two million people (0.2 % of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private companies in the sector, the situation may change soon

Acts Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insuance companies The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts. The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. operating in the country were merged into one entity, the The General Insurance Business Act of 1972 was enacted to nationalise the about 100 general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities Life Insurance Corporation of India Until 1999, there were not any private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies

About IRDA

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad . It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."

Expectations law of India has following expectations from IRDA 1. To protect the interest of and secure fair treatment to policyholders; 2. To bring about speedy and for the benefit of The the common man, and to provide long term funds for accelerating growth of the economy; 3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates; 4. To ensure that insurance customers receive preciseorderly growth of the insurance industry (including annuity and superannuation payments), , clear and correct information about products and services and make them aware of their responsibilities and duties in this regard; 5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery;

6. To promote fairness,transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players; 7. To take action where such standards are inadequate or ineffectively enforced; 8. To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.

Duties, Powers and Functions of IRDA (1) Subject of this Act and to the provisions any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organisations connected with the insurance and re-insurance business; (g) levying fees and other charges for carrying out the purposes of this Act; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries

(k) regulating investment of funds by insurance companies; Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA (l) regulating maintenance of margin of solvency; (m) adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) supervising the functioning of the Tariff Advisory Committee; (o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f);

(p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) such other powers as may be prescribed exercising

Chapter 2 Company Profile

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA. The company launched national operations in December 2006. Today, they have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. As we further expand our presence across the country with a large network of distributors, we continue to provide innovative product and service offerings to cater to specific insurance and wealth management needs of customers. Whatever our plans in life, we can be confident that Bharti AXA Life will offer the right financial solutions to help achieve them.

AXA Group AXA SA, world leader in financial protection and wealth management is ranked 15th in the Fortune list. As a global insurance company with over 50 million customers and 110,000 employees world over, it manages Euro 1064 Billion of funds. The company recorded Euro 72 Billion in Revenues and Euro 3.3 Billion in Profits.

About AXA Asia Pacific Holdings AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is 51.6% owned by AXA SA. AXA APH is responsible for AXA SA’s life insurance and wealth management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand, Hong Kong SAR, China, Indonesia, the Philippines, Thailand, Singapore, India and Malaysia. AXA APH had AUD87.6 billion in total funds under

management, administration and advice at 30 June 2006 and reported a profit after tax before non-recurring items of AUD 303.8 million for the half year ended 30 June 2006

Vision To be a leader and the preferred company for financial protection and wealth management in India

Strategy •

To achieve a top 5 market position in India through a multi-distribution, multiproduct platform

•

To adapt AXA's best practice blueprints as a sound platform for profitable growth

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To leverage Bharti's local knowledge, infrastructure and customer base

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To deliver high levels of shareholder return

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To build long term value with our business partners by enhancing the proposition to their customers

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To be the employer of choice to attract and retain the best talent in India

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To be recognised as being close and qualified by our customers

Strategic differentiators •

Strong partner Bharti - provides access to customer base of more than 20 million

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Multi channel execution capability

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Current Asia product range which is a strong match to products sold to the mass and mass affluent

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Global scale providing cost effective and speedy re-use of systems, products and business capability

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Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality management team

Life plans

Bharti AXA Life Merit Plus

Bharti AXA Life Merit Plus This is a regular premium unit-linked endowment insurance Policy which offers the twin benefits of protection against financial loss in the unfortunate event of the demise of the life insured and helping to create wealth systematically over the long-term. Hence this product is suitable for long-term objectives like retirement planning, children’s future and giving a total protection to us and our family. What are advantages with Bharti AXA Life Merit Plus? • A financial solution that provides comprehensive protection to us and our family • Sum Assured as high as 15 times of annualised premium depending on our age • Option to choose Life Insurance Benefit as: (a) Higher of Sum Assured or Fund Value (b) Sum Assured PLUS Fund Value • Guaranteed additions, which returns more than all the allocation charges paid by us =100% of First Year Premium • Get 4% simple interest per annum on Premium Allocation Charges on 2Qth policy year = 72.2% of first year premium

Working of Bharti AXA Life Merit Plus As a customer we will have the liberty • To choose our premium amount • Death benefit option: Option A/Option B • To choose fund mix out of five fund options The premium we pay would be invested, net of Premium Allocation Charges, in fund or mix of available funds of our choice and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that we hold in the fund/funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is adjusted in the unit price.

Benefits of Bharti AXA Life Merit Plus Life Insurance benefit: Bharti AXA Life Merit Plus offers the choice of Life Insurance benefit which are as follows: 1. Death Benefit Option A Sum Assured (less all partial withdrawals made from the basic policy fund during the 12 months intimation of death, whichever is higher, will be paid. prior to the date of death of life assured) or the Policy Fund Value as on the date of intimation of death, whichever is higher, will be paid. 2. Death Benefit Option B

The sum of Sum Assured and the Policy Fund Value as on the date of intimation of death will be paid. We can choose any one out of the above two options. Irrespective of the death benefit option chosen, if the life assured, at the time of death, is less than 5 years, the death benefit in both the above cases will be restricted to Policy Fund Value. Sum assured under the product is dependent on the age of the life assured at entry, which is as follows:

Bharti AXA Life Guarantee Builder

Bharti AXA Life Guarantee Builder Bharti AXA Life Guarantee Builder is a 15-year regular premium unit-linked Insurance policy that offers us the best of both worlds by guaranteeing our investments at maturity as well as offering the upside potential of equity markets over the long-term. Now we don’t have to wait for the markets to smile again, because our smile will be in place with Bharti AXA Life Guarantee Builder. What are our advantages with Bharti AXA Life Guarantee Builder? •

Ensuring solid protection for our family through a Death Benefit that offers Sum Assured PLUS Fund Value

•

Getting the comfort of a Guaranteed Maturity Value (GMV) which means atleast our investment premiums are returned at maturity.

•

Getting the power of Builder, which means that we can expect your GMV to potentially increase by 1% each year till it reaches 115% by the time Guarantee is applicable.

•

The new Build n Protect Fund ensures not only safety to our investments, but also provide us the springboard for growth of our investments over the long-term by allocating upto 40% in large-cap stocks.

•

Getting tax benefits on the premiums paid and benefits received as per the prevailing tax laws.

. Life Insurance Benefit: This policy offers a high level of protection to our family in case of any eventuality. In the unfortunate event of death of the Life Insured during the Policy Benefit Period, the sum of the following benefits is paid to the nominee: a) Payment of sum assured immediately

b) Policy fund value The Sum Assured under the policy is 10 times the Annualised Investment Premium 2. Maturity Benefit: On maturity of the Policy, we will get the Higher of a) Policy fund value b) Guaranteed Maturity Value: The Guaranteed Maturity Value is atleast 100% of the sum of the Investment Premium that we have paid over the policy benefit period. 3. Special additions: this benefit helps boost fund value & rewards for staying invested in long term. An amount equal to 2.5% of the average of policy fund value as on the end of each of the preceding 36 policy months will be added to policy fund value at the end of 10th policy year and 15th policy year. 4. Choice of investment funds: period would be allocated to the investment funds, the fund value of which is considered for Investment Fund Objective Asset Allocation RiskReturn Potential maturity through steady Government bonds and provide a limited opportunity for capital appreciation by investing in equities Guaranteed Fund

Bharti AXA Life Bright Stars

Bharti AXA Life Bright Stars

This is a regular premium unit-linked Insurance Policy, which offers the twin, benefits of protecting our loved ones & creating wealth for them over the desired period. We can plan & invest in a systematic manner through this product for certain important events (financial goals) in our life like our child’s higher education / marriage or buying a house! 1 Bharti AXA Life Bright Stars offers the twin benefits of protecting our loved ones & creating wealth for them over the desired period.

our advantages with Bharti AXA Life Bright Stars • We can invest in market-linked funds while providing with all-round protection benefit and what’s more, it also provides us with a Jumpstart Benefit at maturity. We can enhance our protection in this product by adding riders. We get a smart financial solution through this product. Not only does the Sum Assured gets paid out in case of unfortunate event of death, but Bharti AXA Life will pay all our future premiums to ensure that the ambitions of our loved ones are achieved.

• We have the option of investing across 4 funds, depending upon our risk appetite and return expectation and can make use of the switch facility to change our asset allocation. • Tax benefits for premiums paid and benefits received, as per the prevailing Tax laws.

Working of Bharti Axa Life Bright Stars:

Benefits of Bharti AXA Life Bright Stars 1. Life Insurance Benefit The Sum Assured under the Policy is based on the Policy benefit period chosen by us. Policy Benefit Period 7 years 10 years 15 years 17 years 20 years

Sum Assured 5 times annualized regular premium 5 times annualized regular premium 8 times annualized regular premium 10 times annualized regular premium 10 times annualized regular premium

In the unfortunate event of death of the Life insured during the Policy benefit period, the following benefits are available: • Payment of Sum Assured immediately • All the future premiums payable till maturity are waived off and Bharti AXA Life will pay all those premiums into the investment funds • The Policy continues until maturity with the nominee having the right to exercise all the applicable benefits under the Policy 2. Maturity Benefit: On maturity of the Policy, we or our nominee will get the Policy Fund Value plus Jumpstart Benefit.

3. Special Addition with “Jumpstart Benefit”:

On maturity of the Policy, in addition to the Policy Fund Value, we get a Jumpstarl Benefit equal to 5% of the average of the Policy Fund Values as on the end of each of the preceding 36 Policy months. Since this benefit is paid out in addition to your Policy Fund Value, it provides our financial goals a “jumpstart”. For instance, if the Policy is taken with the intention of securing our child’s future, then it can be used to jumpstart our child’s future by having access to more career options. 4. Critical Illness Benefit Rider: In addition to our life insurance benefit, we can also enhance our protection by adding Critical Illness Benefit Rider by paying a nominal amount. This rider will pay the chosen Rider Sum Assured in case we are diagnosed with any of the below mentioned critical illnesses and subject to the terms and conditions contained in the Critical Illness Benefit Rider — Policy Bond: • Cancer • Coronary Artery Bypass Surgery • Heart Attack • Kidney Failure • Major Organ Transplant • Stroke We can use this Rider Sum Assured to meet various expenses that are generally incurred in treatment of critical illnesses like hospitalisation expenses, surgery, cost of medicines, diagnosis, possible loss of pay etc. 5. Choice of Investment Funds:

We have a choice of investing your premiums in any or all of the four investment funds, as per our financial objective. 6. Managing investments with Switch and Premium Redirection facility: Through the feature of switches & premium redirection we can manage our asset allocation between equity & debt depending on our needs. For example we may wish to move our money to a low-risk investment fund option before maturity of the Policy to protect against adverse movements in equity markets. We can switch four times in a Policy year free of charge, beyond which a charge of Rs. 100 per switch is levied. The minimum value of a switch should be Rs. 2,500. We can also redirect our future premiums after first Policy year into different funds with Premium Redirection facility. This facility can be availed of any number of times free of charge. The minimum allocation in any chosen investment fund should be 5%. 7. Top-up Premiums We can invest a bonus received from our employer or profits earned from our business or any other surplus in your existing investments to achieve our financial goals faster. With the top-up option, we can boost our contribution any time after the first Policy year. The minimum amount of a single top-up is Rs. 2,500. The total amount of top-up in a Policy year cannot be more than 25% of total regular premiums paid till that date. Top-up premium has no effect on our Sum Assured. 8. Liquidity Benefit with Partial Withdrawal: We all need money during our lifetime to fulfil certain goals. From time to time, we may need money to pay for our child’s education, going on a long vacation, pay off an existing loan etc.

We can withdraw money from our Policy Fund Value any time after completion of three Policy years. Each partial withdrawal should be a minimum of Rs. 5,000 and after withdrawal the Policy Fund Value should not be less than 120% of the Annualised

Regular Premium. Four partial withdrawals are free of charge in a Policy year and each subsequent partial withdrawal will be subject to a charge of Rs. 100. 9. Decrease in Premium: While we recommend that you pay the agreed amount of annual premium for the entire term of the Policy, we also understand that sometimes we may face financial constraints which might make it difficult for us to pay the agreed premium throughout the term. Therefore, in this product, we allow to decrease the premium amount any time after completion of two Policy years. Decrease in premium will decrease our Sum Assured in the same proportion. Annualised Regular Premium can be reduced subject to the following condition: During 3rd policy year, the Annualised Regular Premium can be reduced such that the revised premium is at least Higher of • 75% of first year Annualised Regular Premium • Minimum Annualized Regular Premium From 4th policy year onwards, the Annualised Regular Premium can be reduced to the minimum Annualised Regular Premium. 10. Cover Continuance Option: While we recommend that all our regular premiums be paid on the respective due dates, we also understand that due to sudden changes in lifestyle like increased responsibilities or unexpected increase in household expenses may affect our future ability to pay premiums. Now we need not worry if we are unable to pay premiums into our Policy. The cover continuance option entitles us to continue our Policy with all benefits if we are unable to pay premiums (as per the table below). Once we have opted for this option, we cannot pay any further premiums

Bharti axa life wealth confident

Wealth Confident Unit-linked Limited Pay Product

Our advantages with Wealth Confident • Higher allocation of our premium for investment that ensures that more of our money is invested for growth. • Sum Assured equal to five times of annual regular premium. • Investment fund options ranging from funds with high equity allocation to help us earn potentially high returns over the long term to a fund that offers you steady returns. • Pay premiums for only 5 years while our money grows for 10 years. • Facility to increase or decrease your premiums any time after completion of 2 Policy years. • Partial withdrawal facility from our Policy Fund Value as per your financial requirements, after 3 completed years of our Policy. • Facility to receive our maturity proceeds either as a lump sum amount or in instalments, or as a combination of both. • Special additions for 5 continuous years starting from the end of the 6th

Policy year.

Working of WealthConfident Wealth Confident is a unit-linked plan for wealth creation. The product works as follows: 1. The premium paid by us decides the Sum Assured. 2. The premium is netted off the premium allocation charge and invested in the investment fund of our choice. The unit price of the investment fund decides the number of units allocated to us. 3. Once the units are allocated, monthly fixed charges and mortality charges (deducted for the Life insurance benefit and depending on our age) are deducted by cancellation of units. 4. Net units and the unit price of the investment fund decide our Policy Fund Value. Every time, the premium is paid, fresh units are allocated and subsequently the deductions are made and the Policy accumulates higher number of units, resulting into potentially higher Policy Fund Value. 5. Special Additions: Units are credited on periodic basis from end of 6th Policy year till maturity Key Benefits Life Insurance Benefit: The Sum Assured will be five times the annual regular premium. In case of unfortunate event of death of the Life insured during the Policy benefit period, higher of the Sum Assured (net of partial withdrawals, made on regular premiums in 12 months prior to death of the Life insured) or the Policy Fund Value at that point in time is payable, and the Policy will cease to exist. Special additions:

Wealthconfident offers us a special benefit over the Policy benefit period by crediting the additional units to our Policy continuously for 5 years starting from the end of the 6th Policy year. Under this special benefit, WealthConfident adds units to our Policy Fund Value from the end of the 6th Policy year onwards till the end of the 10th Policy year, thereby increasing the number of units in our Policy and hence potentially increasing our Policy Fund Value. The schedule of the special additions is as follows: End of policy year 6th to 8th year

9th & 1oth year

Addition as % of average policy fund value 0.50

1.00

The average Policy Fund Value is equal to the average of the Policy Fund Values as on the last date of each of the preceding 36 Policy months prior to the date of crediting of the special additions. Maturity Benefit: WealthConfident provides us flexible options to withdraw our Policy Fund Value at maturity (after 10th

Policy year). The options available are: 1. Take the entire Policy Fund Value at maturity as a lump sum payment or 2. Take the Policy Fund Value at maturity in instalments over the next 5 years Extended Maturity Period or

3. Take a part of the Policy Fund Value at maturity as lump sum and the remaining as instalments over the next 5 years In case of death during the Extended Maturity Period, only the Policy Fund Value will be payable. Investment fund options: WealthConfident offers us four different investment funds. We can choose to invest in any of these investment funds, depending on our investment objectives and needs. to take the Policy fund value in installments Partial Withdrawal Facility: We all need money during our lifetime to fulfil certain goals. From time to time, we may need money to pay for our child’s education, going on a long vacation, pay off an existing loan etc. We can withdraw money from our Policy Fund Value any time after completion of three Policy years. Each partial withdrawal should be a minimum of Rs. 10,000 and after withdrawal the Policy Fund Value should not be less than 120% of the annualised regular premium plus applicable surrender charge. Two partial withdrawals are free of charge in a Policy year and each subsequent partial withdrawal will be subject to a charge of Rs. 100.

Switch & Premium Redirection Facility: Through the feature of switches and premium redirection we can manage our asset allocation between equity and debt depending on our needs. For example we may wish to move our money to a low-risk investment fund option before maturity of the Policy to protect against adverse movements in equity markets.

Additional investments through Top-ups: This feature helps us to make additional investment over and above our regular premium with the help of ‘Top-up premium’ facility, at our own convenience. This facility is available to us after 3 completed years of the Policy. The minimum amount of a single Top-up is Rs. 5,000. Top-up investment at any point can be made only if the regular premium for the base plan is paid in full. Additionally, at any point during the Policy benefit period, total amount of Top-up premium cannot be more than 25% of total regular premium paid till that date. Increase / decrease our annual premium after 2 Policy years: While we recommend that wepay the agreed amount of annual premium for the entire term of the Policy, we also understand that sometimes we may face financial constraints which might make it difficult for us to pay the agreed premium throughout the term. Therefore, in this product, we allow you to increase/decrease your premium any time after completion of two Policy years but the change will come into effect from the next Policy anniversary. Increase in the premium of the basic plan will increase our Sum Assured in exactly the same proportion. Any increase in premium of the basic plan shall be subject to the then administrative and underwriting rules of the Company. Decrease in premium will decrease our Sum Assured in the same proportion. Annualised Regular Premium can be reduced subject to the following condition: During 3rd policy year, the Annualised Regular Premium can be reduced such that the revised premium is at least Higher of • 75% of first year Annualised Regular Premium • Minimum Annualized Regular Premium From 4th policy year onwards, the Annualised Regular Premium can be reduced to the minimum Annualised Regular Premium. Cover continuance option: While we recommend that all our regular premiums be paid on the respective due dates, we also understand that due to sudden changes in lifestyle like increased responsibilities

or unexpected increase in household expenses may affect our future ability to pay premiums. Now we need not worry if we are unable to pay premiums into our Policy. The cover continuance option entitles us to continue our Policy with all benefits if we are unable to pay premiums after 3 Policy years. Once we have opted for this option, we cannot pay any further premiums or top-ups under the Policy.

Our advantages with Bharti AXA Life AspireLife: 1. Allocation rates as high as 100% i.e. no allocation charges for annualised regular premium greater than or equal to Rs. 50,000 from year 2 onwards. 2 Get back up to 175% of our first year’s premium as Guaranteed Special Addition on maturity or on death of the Life insured.

3. We have the option of investing across 4 funds, depending upon our risk appetite and return expectation and we can make use of the switch facility to change our asset allocation. 4. We can get higher protection if we opt for longer terms. 5. we also have the following flexibilities in our Policy. a. Flexibility of partial withdrawal; b. Cover Continuance, in case of discontinuance of premium; c. Switch among investment funds: d. Redirect our future premium into different investment funds. 6. Tax benefits for premium paid and benefits received, as per the prevailing tax law.

Bharti AXA life secure confident:

Sum Assured: It is the guaranteed amount of money that is payable to us or our nominee, as the case may be, in case of the unfortunate event of death of the Life Insured. Premium Payment Term: It is the period for which we pay the premium for SecureConfident in order to keep complete financial the Policy in force. Policy Benefit Period It is the time period for which the Policy shall be in force. Riders: These are the additional protection benefits that are available to us by payment of an additional amount over and above our premium. These additional benefits provide comprehensive cover to us and our family against unfortunate circumstances like Critical Illnesses and Death or Disability caused due to an accident. SecureConfident, with these additional benefits, provides complete comprehensive protection to our family.

Our advantages with SecureConfident • Provide our loved ones with financial protection against the unfortunate event of death. • Get complete protection for our family against financial loss or burden (such as repayment of mortgage for your house), with full Sum Assured payment in case of an unfortunate death. • Provide comprehensive protection with the help of riders. • Get financial protection with the help of Critical Illness Benefit Rider against any unfortunate contraction of six critical illnesses like cancer, heart attack, stroke, total kidney failure, major organ transplant and bypass surgery. • Get financial protection with the help of Accidental Death and Disability Benefit Rider against total disability or death caused due to an accident. Why should we buy SecureConfident? SecureConfident is suitable to us, if our objective is to protect our family against any financial loss caused due to unfortunate death, disability due to an accident or critical illnesses, which may deprive them of a secured future. How does SecureConfident work for us? SecureConfident is a simple, long term and affordable insurance product. The product works as follows: 1. We choose the Policy benefit period and the Sum Assured (subject to minimum of Rs. 5,00,000). The available Policy benefit periods are 5, 10, 15, 20 and 25 years. 2. We pay the premium (base premium) regularly as per the mode of premium payment chosen by us.

3. In case of the unfortunate event of death of the Life Insured during the Policy benefit period, the Company shall pay the Sum Assured to the Policyholder or the nominee, as the case may be, provided the Policy is in effect.

.

4 On survival of the Life Insured beyond the Policy benefit period, the Policy shall be terminated and no monies shall be payable to the Policyholder. What are the key benefits of SecureConfident? Life Insurance Benefit: The Life Insurance benefit is provided by the Sum Assured in the product. The minimum Sum Assured for this plan is Rs. 5,00,000. In case of the unfortunate event of death of the Life Insured, the Policyholder or the nominee, as the case may be, will be entitled to receive the Sum Assured.

SecureConfident Comprehensive Financial Protection Comprehensive overall protection benefits: Along with the Life Insurance benefit, SecureConfident offers us a range of rider benefits to choose from by paying a nominal additional amount to help us secure comprehensive financial protection against any unfortunate eventuality. In case we have opted for any of the riders such as Accidental Death and Disability Benefit Rider or Critical Illness Benefit Rider, we will have to pay an additional nominal premium to avail of the benefits under these Riders.

The sum of all the Rider premiums excluding a Critical Illness Benefit Rider should not exceed 30% of the Base Policy Premium. The premium for Critical Illness Benefit Rider should not exceed the Base Policy Premium. Rider benefit can be availed if the age of the Life Insured at the time of purchase of the rider/s is between 18 years and 55 years. The benefit is available till the Policy benefit period or till 60 years, whichever is earlier. You can choose the following rider options; • Critical Illness Benefit Rider

• Accidental Death and Disability Benefit Riders

.

Tax Benefits: The premium paid under this Policy would enjoy tax benefits under Section 80C of the Income Tax Act 1961. The Policy proceeds in the event of claim shall be tax free in accordance with Section 10 (1 OD) of the Income Tax Act 1961. Tax benefits are subject to change in tax law.

Other features of SecureConfident that we should know Reinstatement of the Policy If the premiums are discontinued during the Policy benefit period, the Policy shall lapse. In such a situation, we can revive the Policy by paying the due premiums with the due interest within 2 years of the date of discontinuance of the premium. In case of a death during the Reinstatement period, no death benefit will be payable. Free-look option If the Policyholder disagrees with any of the terms and conditions of the Policy, then the Policyholder has the option to return the original Policy Bond along with a letter stating reasons for the objection within 15 days of receipt of the Policy Bond. The Policy will accordingly be cancelled and an amount equal to the Premium paid will be refunded to you. All our rights under this Policy shall stand extinguished immediately on the cancellation of the Policy under the free-look option.

Premiums at a glance: Policy benefit periods Age at last

5 years

10 years

15 years

20 years

25 years

birthday 25 30 35 40 45 50

2440 2480 2520 3680 4680 7220

2450 2580 3040 3950 5580 8300

2600 2780 3350 4450 6380 -

2620 2850 3490 4080 -

2660 2940 3640 -

These are the annual premiums for a Sum Assured for Rs. 10,00,000 for SecureConfident. These are based on the assumptions of a healthy male life and do not include service tax and cess, if any.

CHAPTER - 3

RESEARCH METHODOLOGY

Objective of the study

This project is based on the prospective recruits for agency training. Therefore, the objectives of this project are: 1. To clearly define the prospective to help Agency sales to easily procure life advisors. 2. Help life advisors undertake the regulatory training as defined by IRDA. 3. Inducted life advisors into the BAL system through proper ULIP and AML certification and provide orientation to BAL products.

Scope of the study

The scope of my study restricts to recruitment of life advisors for the company. Keeping this in mind, I conducted a field survey through questionares to find the prospective people suitable for this job based upon various parameters like age, marital status , household income, , education etc. However, the other aspects of this study are: a) Pre licensing – Pre III Examination which included BOP handover of the life advisors, registration process , regulatory training as prescribed by IRDA , refresher as well as guidelines for examination. b) Pre licensing – Post III Examination: which included ULIP and AML certification, Data management and communication. The scope of my study is also restricts itself to Delhi region only.

Methodology

Research design: There are 3 types of research designs: Descriptive research designs, Exploratory research designs, Diagnostic research studies The research design I have used is descriptive in nature. This studies are those studies which are concerned with describing the characteristics of a particular individual or of a group. It includes specific predictions with narration of facts

and characteristics

concerning individuals.

Sample design: Sample size: A sample of 100 people was taken.

Sampling technique: However, the people were being approached based upon random sampling at convenience.

Research period: Research work was only carried for 6-7 weeks.

Research instruments: The study was conducted with the help of questionnaires. The questions included were open ended & closed ended.

Data collection: The data collected for the purpose of study was divided into 2 parts:

Primary data: It included the information available through surveys. The respondents were being approached directly with the help of structured questionares. Here, the approaches to respondents were made through telephonic conversation.

Secondary data: It included the data made available from the existing records of the company, which were collected from company’s annual reports, publications etc.

Limitations of the study: Attempts were being made to complete the study reliably, accurately & effectively, however, in this process, the following limitations could not be ignored: a) People were hesitant to disclose the truth. Hence, the data obtained was inaccurate. b) The main focus of the study was to attract the prospective candidates as per the qualifications & specifications. Hence, this factor could not be avoided. c) The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.

CHAPTER 4

DATA ANALYSIS & INTERPRETATION The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar technique to know the preference of people on variable parameters.

PREFERENCE ACCORDING TO AGE GROUPS Age grops

Less than 25 years

number of people

Number of people

50 45 40 35 30 25 20 15 10 5 0

25-40

45

More than 40

40

15

45 40

15

less than 25 25-40 more than 40

1 age groups Out of a given sample of 100 people , 45, prospective are below 25 years, 40 are between 25- 40. but the proportion is less with only 15 in case of people above 40 years. Interpretation: It shows that mostly young working population is more attracted towards the job .however, the demand is neither less for people between 25-40 years as compared to the others.

PREFERENCE ACCORDING TO MARITAL STATUS

Marital status

Unmarried

Number of peolpe.

65

70

Married 31

65

number of people

As can

60

be seen

50

from the

40

31

30

unmarried married

above data that

20

only 65

10 0 1 marital status

number of prospective belong to the married class whereas 31 number of prospectives belong to unmarried class. Interpretation: we get to know from the above figure that more than half of the total married population is getting attracted towards the job as compared to unmarried population.

PREFERENCE AS PER QUALIFICATIONS

Education level

10 or 12 pass

graduates

Post graduates

Number of people

30

30

28

35

number of people

30

30

30 28

25

10 or 12 pass graduate post graduates

20 15 10 5 0 1

education level

From the above data , it can be analyzed that number of prospective hold a greater share in terms of graduates & post graduates having 30 prospective each as compared to 12th passed out, with 28 people .Interpretation: it can be seen that the education factor doesn’t seem to have effect on the demand for the job.the demand is equal & uniform in all the 3 sectors.

STAYING TENURE

Tenor of stay in Delhi Number of people

Less than 3 years 24

3-5 years 26

More than 5 years 39

45 39

40 number of people

35 30 25

24

26 less than 3 years 3-5 years more than 5 years

20 15 10 5 0 1 stability of tenure in city

As shown in above table, 24 people residing since last 3 years. get attracted towards the job. 26 between 3-5 years & 39 are residential since 5 years . Interpretation:: it indicates that the people who are residents for more than 5 years form a greater share, but a good response is generated from the other sectors as well.. It shows that the elasticity for job is high in case of the residents.

PREFERENCE ACCORDING TO HOUSEHOLD INCOME

Household

Less than 2 lakhs

2-5 lakhs

More than 5 lakhs

income(per year) Number of persons

32

36

4

45 40

number of people

35

36 32

30

less than 2 lakh 2-5 lakh more than 5 lakh

25 20 15 10 4

5 0 1

household income This table shows that 32 prospective are those who belong to income group below 2 lakhs, 36 between 2-5 lakhs and 4 with more than 5 lakhs of income. Interpretation: it can be interpretated from the above that the attraction towards the job is more for people belonging to the middle income group, with a tremendous response from lower income groups but is less in case of high income groups.

CATEGORIES OF PROSPECTS

32%

student business

51%

service 17%

From the above data it can be analyzed that service sector constitute 51% of the total population , along with 32% of the student sector, but is limited to 17% in case of business sector as shown in above figure. Interpretation: it can be well interpreted that the service class forms the mainstay of the jobs, followed by a good response from the student sector as well., whereas the business sector seems to be less elastic towards its demand

CHAPTER 4

FINDINGS

The findings of my research work can be broadly understood as follows:

 Age factor: From the data available, it can be clearly understood that the young working population between 18- 40 forms a greater share, which means that the demand for job is high in them as compared to the other .

 Marital: status: Here, I came to know the difference in behavior towards job between married & unmarried people, & found out that the former ones are more inclined towards jobs.

 Education: this includes the need for job for people belonging to different qualification levels. I have concluded that the graduate & post graduate population shows a significant response with favorable response from latter ones as well.

 Stay of tenure: under this, I have concluded that mostly people who are residential since 5 years & above form a greater number of prospects which means that there is a greater relationship between the tenure factor & the job.

 Household income: this study highlights the response of the people belonging to the different income groups. We can conclude that the people belonging to low & medium income group are forming better prospects as compared to the high income group people.

CHAPTER 5 SUGGESTIONS & RECOMMENDATIONS

Suggestions & Recommendations

From my point of view , the company should go on for aggressive advertising. 1. Aggressive advertising is an infestation of termites knawing at the honest framework of society. Much of the work in promoting products involves a dishonest form of thinking, and one that strives to root itself into the next generation. Advertisements have infiltrated almost every part of the nation and have manipulated the very core of society. Corporations have been to the extremes of advertising, only to create ads that disrupt, degrade, and destroy the quality of life. 2. By doing so the company would promote job opportunities in the prevailing recession market situations & create an awareness to attract local populations towards such kind of jobs.

3. To enhance the performance of advisors. They should be given on-the-job training time-to-time. 4. To retain the good human resource. Motivation schemes should be added in HR policies.

CHAPTER 6 CONCLUSIONS

Conclusions: From all the surveys conducted ,overall, it can be concluded that the job is more suitable to the people in need for additional benefits in the form of part time jobs. These may include the poverty driven population, service people , graduates & post graduates etc. But still , the company has a tremendous amount of scope

for

improvement for

attracting more prospects as a majority of the population is incentive driven in nature & needs to be motivated

through efficient company policies, as the demand for job is

based upon the monetary incentives provided by the company in the form of free medical claim , promotion offers , LIC cover options etc.

CHAPTER 7

ANNEXURE What is your age? Below 25 years

25-40 years

more than 40 years

Are you married? Yes

No

What are your educational qualifications? 10- 12th

graduate

post graduate

How long have you been staying in Delhi? Less than 3 years

3-5 years

more than 5 years

What is your household income ? Less than 2 lakhs

2-5 lakhs

more than 5 lakhs

Are you: Student Personal details:: FULL NAME: ADDRESS PIN CODE : TELEPHONE: MOBILE: THANK YOU

employed

businessman

CHAPTER 8

BIBLIOGRAPHY Magazines & Newspapers 

BHARATI AXA LIFE INSURANCE brochure & magazines



Times of India



Hindustan Times



Other various magazines Internet Sites



www.lic.com



www.bharatiaxalife.com