lic in hrm of icic

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INTRODUCTION

1. ABOUT THE ORGANIZATION

ICICI Life Insurance in its modern form came to India from England in the

year 1818. Oriental ICICI Life Insurance Company stated by Europeans in Calcutta

was the first ICICI Life Insurance company on Indian Soil. All the insurance

companies established during that period were brought up with the purpose of looking

after the needs of European community and Indian natives were not being insured by

these companies. However, later with the efforts of eminent people like Babu

Muttylal Seal, the foreign ICICI Life Insurance companies started insuring Indianlives. But Indian lives were being treated as sub-standard lives and heavy extra

premiums were being changed on them. Bombay Mutual Life Assurance Society

heralded the birth of first Indian ICICI Life Insurance company in the year 1870, and

covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic

motives, insurance companies came tito existence to carry the message of insurance

and social security through insurance to various sectors of society. Bharat Insurance

Company (1896) was also one of such companies inspired by natioalism. theSwadeshi movement of 1905-1907 gavwe rise to more insurance companies. The

United India in Madras, National Indian and National Insurance in Calcutta and the

Hindustan Co-operative Insurance Company took its birth in one of the rooms of the

Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian

Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of

the companies established during the same period. Prior to 1912. India had no

legislation to regulate insurance business. In the year 1912, the ICICI Life Insurance

Companies Act, and the Provident Fund Act were passed. The ICICI Life Insurance

Companies Act, 1912 made it necessary that the premium rate tables and periodical

valuations of companies should be certified by an actuary. But the act discriminated

between foreign and Indian companies on many accounts, putting the Indian

companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance

business. From 44 companies with total business-in force as Rs. 22.44 crore, it rose to176 companies with total business-in-force as Rs. 298 crore in 1938. During the


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mushrooming of insurance companies many financially unsound concerns were also

floated which failed miserably. The Insurance Act 1938 was the first legislation

governing not only ICICI Life Insurance but also non-ICICI Life Insurance to provide

strict state control over insurance business. The demand for nationalization of ICICI

Life Insurance industry was made repeatedly in the past but it gathered momentum in

1944 when a bill to amend the ICICI Life Insurance Act 1938 was introduced in the

Legislative Assembly. However, it was much later on the 19 th of January, 1956, that

ICICI Life Insurance in India was nationalized. About 154 Indian insurance

companies, 16 non-Indian companies and 75 provident were operating in India at the

time of nationalization, nationalization was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance, and later,

the ownership too by means of a comprehensive bill. The Parliament of India passed

the ICICI Life Insurance Corporation Act on the 19 th of June 1956, and the ICICI Life

Insurance Corporation of India was created on 1 st September, 1956, with the objective

of spreading ICICI Life Insurance much more widely and in particular to the rural

areas with a view to reach all insurable persons in the country, providing them

adequate financial cover at a reasonable cost.

ICICI LIC had 5 zonal offices, 33 divisional offices and 212 branch offices,apart from its corporate office in the year 1956. Since ICICI Life Insurance contracts

are long term contracts and during the currency of the poICICI LICy it requires a

variety of services need was felt in the later years to expand the operations and place a

branch office at each district headquarter, re-organization of ICICI LIC took place and

large numbers of new branch offices were opened. As a result of re-organization

servicing functions were transferred to the branches, and branches were made

accounting units. It worked wonders with the performance of the corporation. It may

be seen that from about 200.00 crores of New Business in 1957 the corporation

crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for

ICICI LIC to cross 2000.00 crore mark of new business. But with re-organization

happening in the early eighties, by 1985-86 ICICI LIC had already crossed 7000.00

crore Sum Assured on new poICICI LICies.

Today ICICI LIC functions with 2048 fully computerized branch offices, 100

divisional offices, 7 zonal offices and the corporate office. ICICI LIC s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro


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Area Network. ICICI LIC has tied up with some Banks and Service providers to offer

on-lint premium collection facility in selected cities. ICICI LIC s ECS and ATM

premium payment facility is an addition to customer convenience. Apart from on-line

Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad,

Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities.

With a vision of providing easy access to its poICICI LICyholders, ICICI LIC has

launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner

and closer to the customer. The digitalized records of the satellite offices will

facilitate anywhere servicing and many other conveniences in the future.

ICICI LIC continues to be the dominant life insurer even in theliberalized

scenario of Indian insurance and is moving fast on a new growth trajectory surpassingits own past records. ICICI LIC has issued over one crore poICICI LICies during the

current year. It has crossed the milestone of issuing 1,01,32,955 new poICICI LICies

by 15 th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding

period of the previous year.

From then to now, ICICI LIC ha crossed many milestones and has set

unprecedented performance records in various aspects of ICICI Life Insurance

business. The same motives which inspired our forefathers to bring insurance into

existence in this country inspire us at ICICI LIC to take this message of protection to

light the lamps of security in as many homes as possible and to help the people in

providing security to their families.

Some of the important milestones in the ICICI Life Insurance business in India are:

1818: Oriental ICICI Life Insurance Company, the first ICICI Life Insurance

company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian ICICI Life Insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the ICICI Life Insurance business.


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1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-ICICI Life Insurance

businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring pubICICI LIC.

1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized. ICICI LIC formed by an Act of Parliament, viz.

ICICI LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government

of India.

The General insurance business in India, on the other hand, can trace its rootsto the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

OBJECTIVES OF ICICI LIC

Spread ICICI Life Insurance widely and in particular to the rural areas and to

the socially and economically backward classes with a view to reaching

allinsurable persons in the country and providing them adequate financial

cover against death at a reasonable cost.

Maximize mobiliza tion of people savings by making insurance -linked savings

adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its poICICI

LICyholders, whose money it holds in trust, without losing sight of the interest

of the community as a whole; the funds to be deployed to the best advantage

of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that

moneys belong to the poICICI LICyholders.

Act as trustees of the insured pubICICI LIC in their individual and collective

capacities.


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Meet the various ICICI Life Insurance needs of the community that would

arise in the changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in

furthering the interests of the insured pubICICI LIC by providing efficient

service with courtesy.

Promote amongst all agent and employees of the corporation a sense of

participation, pride and job towards achievement of Corporate objective.

MISSION/VISIONMission

Explore and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns, and

by rendering resources for economic development.

VisionA trans -nationally competitive financial conglomerate of significance to societies

and Pride of India.

ICICI LIC of India is the one and only pubICICI LIC sector ICICI Life InsuranceCompany in India.

Some of the important milestones in the ICICI Life Insurance business in India are:

1818: Oriental ICICI Life Insurance Company, the first ICICI Life Insurancecompany on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian ICICI Life Insurancecompany started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute toregulate the ICICI Life Insurance business.


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1928: The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-ICICI Life Insurance

businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring pubICICI LIC.

1956: 245 Indian and foreign insurers and provident societies are taken over by thecentral government and nationalised. ICICI LIC formed by an Act of Parliament, viz.ICICI LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Governmentof India.

The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established inthe year 1850 in Calcutta by the British.

Nationalization

In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud byowner's of private insurance companies. In the ensuing investigations, one of India'swealthiest businessmen, Ram Kishan Dalmia , owner of the Times of India newspaper,was sent to prison for two months. Eventually, the Parliament of India passed theICICI Life Insurance of India Act on 1956-06-19, and the ICICI Life InsuranceCorporation of India was created on 1956-09-01 , by consolidating the ICICI LifeInsurance business of 245 private life insurers and other entities offering ICICI LifeInsurance services. Nationalization of the ICICI Life Insurance business in India wasa result of the Industrial PoICICI LICy Resolution of 1956 , which had created a

poICICI LICy framework for extending state control over at least seventeen sectors of the economy, including the ICICI Life Insurance. The company began operations with5 zonal offices, 33 divisional offices and 212 branch offices.

Current status

Over its existence of around 50 years, ICICI Life Insurance Corporation of India,which commanded a monopoly of soICICI LICiting and selling ICICI Life Insurancein India, created huge surpluses, and contributed around 7 % of India's GDP in 2006.

The Corporation, which started its business with around 300 offices, 5.6 million poICICI LICies and a corpus of INR 459 million, has grown to 2,048 offices servicingaround 180 million poICICI LICies and a corpus of over INR 3.4 trillion.

The organization now comprises 2048 branches, 100 divisional offices and 8 zonaloffices, and employs over 1 million agents. It also operates in 12 other countries,

primarily to cater to the needs of Non Resident Indians.
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With the change in the India's economic philosophy from the early 1990s, and thesubsequent relaxation of state control over several sectors of the economy, themonopolistic position of the ICICI Life Insurance Corporation of India was diluted,and it has had to compete with a number of other corporate entities, Indian as well astransnational ICICI Life Insurance brands.

In the financial year 2006-07 ICICI Life Insurance Corporation of India's number of poICICI LICy holders are said to have crossed a whopping 200 million (fourth interms of population of the countries of the world)

Subsidiaries

ICICI LIC owns the following subsidiaries:

ICICI Life Insurance Corporation of India International : This is a jointventure offshore company promoted by ICICI LIC which commencedoperations in July, 1989 with the objectives of offering US$ denomimated

poICICI LICies to cater to the insurance needs of NRIs and providinginsurance services to holders of ICICI LIC poICICI LICies currently residingin the Gulf. ICICI LIC International operates in all GCC countries.

ICICI LIC Nepal : A joint venture company formed in 2001 with the VishalGroup of Industries , Nepal .

ICICI LIC Lanka : A joint venture company formed in 2003 with the BartleetGroup of Companies , Sri Lanka .

2.INTRODUCTION OF ABOUT TOPIC

Claim PoICICI LICy

Claims of poICICI LICy argue that certain conditions should exist and advocateadoption of poICICI LICies or courses of action because problems have arisen that

call for a solution

Claim PoICICI LICy & InstructionsIn the unfortunate event of an arrival problem, Vanguard has formulated a set of required guidelines todocument and present claims. Failure to follow these guidelines will make the claim

for buyer's risk. Please
http://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Cooperation_Council_for_the_Arab_States_of_the_Gulfhttp://en.wikipedia.org/wiki/Cooperation_Council_for_the_Arab_States_of_the_Gulfhttp://en.wikipedia.org/wiki/Cooperation_Council_for_the_Arab_States_of_the_Gulfhttp://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bartleet_Group_of_Companies&action=edit&redlink=1http://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Vishal_Group_of_Industries&action=edit&redlink=1http://en.wikipedia.org/wiki/Cooperation_Council_for_the_Arab_States_of_the_Gulfhttp://en.wikipedia.org/wiki/Non-resident_Indian


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note Vanguard's claim poICICI LICy is for everything over five (5) percent buyer'srisk. Vanguard does not believethese guidelines to be in anyway arbitrary or unfair. They are simply to enable us to

present substantial andconsistent documentation to our growers and suppliers, as well as to ensure Vanguard

complies with allnecessary regulations. Past experience shows that almost all claims lack one or moreof the requirementsoutlined below. Our experience also shows that claims that are substantiated with allof the requirementsoutlined below stand a much better chance of being solved quickly and fairly. Kindlyfulfill all of theserequirements when reporting a claim:

OBJECTIVE AND SUBJECTIVE CLAIMS

An objective claim is a statement about a factual matter-one that can be proved true or false. For factual matters there exist widely recognized criteria and methods todetermine whether a claim is true or false. A subjective claim, on the other hand, isnot a factual matter; it is an expression of belief, opinion, or personal preference. Asubjective claim cannot be proved right or wrong by any generally accepted criteria.

Objective claims & factsAn objective claim may be true or false; just because something is objective does not mean it is true. The following are objective claims because they concern factualmatters, that is, matters that can be verified as true or false:

Taipei 101 is the world's tallest building. Five plus four equals ten.There are nine planets in our solar system.

Now, the first statement of fact is true (as of this writing); the other two are false. It is possible to verify the height of buildings and determine that Taipei 101 tops them all.It is possible to devise an experiment to demonstrate that five plus four does not equalten or to use established criteria to determine whether Pluto is a planet.

Facts previously considered true may come to be considered false if new criteria,methods, or technology emerge. For example, the definition of planet was recentlyrevised. Experts agreed that Pluto did not conform to the new accepted criteria. Atthat point, the statement, "There are nine planets in our solar system" became false.Even if a factual statement is demonstrably false, it remains an objective claim on afactual matter.

A statement is a factual matter even if you can only imagine a method by which itmight be verified. For example, suppose I claim that humanoid life exists on planetsoutside our galaxy. I can imagine methods that could be used to determine whether

this is true, even if I cannot carry them out send a faster-than-light spaceship to look, perhaps. However, when I imagine methods I may not indulge in pure fantasy; I must


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Claims Settlements History

MUMBAI: The percentage of rejected claims to total claims is much higher for private ICICI Life Insurance companies compared with state-owned ICICI LifeInsurance Corporation (ICICI LIC).

According to data released by the Insurance Regulatory and Development Authority(IRDA), private life insurers received 13,139 individual death claims in 2006-07compared with 6.02 lakh claims recorded by ICICI LIC. Of the total number of claimsreceived, private ICICI Life Insurance companies settled 72.7% of the claims, whileICICI LIC managed to settle 96.94% of claims.

The number of claims rejected by private insurers as a percentage of claims bookedwas 13.98% in 2006-07, while the claims rejected by ICICI LIC were 1.43%. Claims

pending with private insurers as on March 31, 2007 stood at 13.32% of total claimsreceived against 1.63% for ICICI LIC. ICICI LIC paid Rs 4289.28 crore as deathclaim benefits against Rs 155.46 crore paid by private life insurers.

Life insurers receive two types of claim, the first are the maturity claims where the poICICI LICyholder gets the savings that accrue under his poICICI LICy at the end of the term. Bulk of the claims comes under this category, and usually there is no disputeon maturity claims, as these payments are akin to repayment of a maturing bond.

The second set of claims, which are far fewer, are death claims. Section 45 IA of theInsurance Act 1938 allows insurers to reject claims if there is suppression of materialfact by the insured. In ICICI Life Insurance, any information that has bearing on themortality of the proposer is considered to be a material fact. So, if a proposer suffersfrom a serious ailment which is not disclosed, the insurer can reject his claims.

However, the Supreme Court has said that the clause cannot be used unilaterally andit is for the insurer to establish that the non-disclosure has a bearing on mortality. Inthe first few years of operations, private life insurers did not have much of a claimsexperience. Therefore, a comparison on claims servicing between the private sector and ICICI LIC was not possible. Now, with the private life industry being in itsseventh year, there has been a substantial number of maturity and death claims.

According to an official with a private ICICI Life Insurance company, repudiationswere higher in group poICICI LICies. Also, given that private companies have beenonly a few years in existence, their share of early claims are higher. Early claims arethose which occur within two years of the poICICI LICyholder acquiring a poICICILICy. In such claims, insurers double check on whether the terms of the poICICILICy have been strictly met.

Another aspect of claims

Admission Of Age:
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Age is the main basis of calculation of premium under ICICI Life Insurance poICICILICies. The following are accepted as evidence of age:

Certified extract from Municipal or Local Body s records made at the time of birth.

Certificate of Baptism or Certified Extract from Family Bible, if it containsage or date of birth.

Certified Extract from School or College records, if age or date of birth isstated therein.

Certified Extract from Service Register in the case of Govt. employees andemployees of Quasi-Govt. Institutions or

Passport issued by the Passport Authorities in India.

Payment of Premium:

By cash, local cheque (subject to realization of cheque), Demand Draft atBranch Office.

The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches

are networked. Many Banks do accept standing instructions to remit the premiums. So by

providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker s cheque to ICICI LIC, on the duedates and months mentioned on your poICICI LICy bond.

Through Internet : Payment of premiums can be made through Internetthrough Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, BillJunction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, FederalBank and BillDesk.

Premium payment can also be made through ATMs of Corporation Bank andUTI Bank.

Premium payment can also be made through Electronic Clearing Service(ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata,

New Delhi, Kanpur, Bangalore, Vijay Wada, Patna, Jaipur, Chandigarh,Trivandrum, Ahmedabad, Pune, Goa and Nagpur, Secunderabad &Visakhapatnam. A poICICI LICyholder having an account in any Bank whichis a Member of the local Clearing House can opt for ECS debit to pay

premiums. The poICICI LICyholders wishing to use this system would have to

fill up a Mandate Form available at our Branches/DO and get it certified bythe Bank. The certified Mandate Forms are to be submitted to our BO/DO.

PoICICI LICy can be anywhere in India.

Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building,Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiumsthrough cheques.

Days Of Grace:

PoICICI LICyholder should pay the premiums on due dates. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums.


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When the days of grace expire on a Sunday or a pubICICI LIC holiday, the premium may be paid on the following working day to keep the poICICI LICyin force.

If the premium is not paid before the expiry of the days of grace, the poICICILICy lapses.

Revival of Lapsed PoICICI LICy:

If the poICICI LICy has lapsed, it can be revived during the life time of thelife assured, within a period of five years from the date of the first unpaid

premium but before the date of maturity subject to certain conditions. The Corporation offers three convenient schemes of revival viz., Ordinary

Revival, Special Revival and Installment Revival. PoICICI LICies can also berevived under Loan-cum-Revival and SB-cum-Revival schemes.

Request for revival may be made to the Branch Office servicing the poICICILICy.

Change of Address and Transfer Of PoICICI LICy Records:

The poICICI LICyholder should immediately intimate the change of his/her address to the Branch Office servicing the poICICI LICy. The correct addressfacilitates better service and quicker settlement of claims.

PoICICI LICy records can also be transferred from one Branch Office toanother for servicing, as requested by the poICICI LICyholder.

Loss of PoICICI LICy Document:

The PoICICI LICy Document is an evidence of the contract between theInsurer and the Insured. Hence the poICICI LICyholder should preserve thePoICICI LICy Bond till the contracted amount under it is settled.

Loss of the PoICICI LICy Document should be immediately intimated to theBranch Office where it is serviced.

Loans:

Loans are granted on poICICI LICies to the extent of 90% of Surrender Valueof the poICICI LICies which are in force and 85% of the Surrender Value incase of poICICI LICies which are paid-up, inclusive of the cash value of

bonus. The rate of interest charged at present is 9% p.a. payable half-yearly. Loans are not granted for a period shorter than six months. The Conditions and

Privileges printed on the back of the PoICICI LICy Bond states whether a particular poICICI LICy is with or without the loan facility.

Relief to PoICICI LIC holders:

The Corporation generally allows concessions on payment of premiums,

settlement of claims, issue of dupICICI LICate poICICI LICies, etc when the


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poICICI LICyholder are affected by natural calamities such as droughts,cyclones, floods, earthquakes, etc.

Nomination:

Nomination is a right conferred on the holder of a PoICICI LICy of Life Assurance onhis own life to appoint a person/s to receive poICICI LICy moneys in the event of the

poICICI LIC y becoming a claim by the assured s death. The Nominee does not getany other benefit except to receive the poICICI LICy moneys on the death of the LifeAssured.

Survival Benefit/Maturity Claims:

ICICI LIC settles survival benefit/maturity claims on or before the due date. PoICICI LICyholder are intimated well in advance by the Branch Office

which services the poICICI LICy regarding the payment, and the necessaryDischarge Voucher is also sent for execution by the assured. In case the

poICICI LICyholder does not get any intimation from the Branch Officeconcerned, he/she should contact them, quoting the PoICICI LICy Number.

Survival Benefit payment up to Rs.60,000/- are settled without insisting for PoICICI LICy Bond and Discharge Voucher.

Death Claims:

If the life assured dies during the term of the poICICI LICy, death claimarises. The death of the poICICI LICyholder should be immediately intimatedin writing to the Branch Office where the poICICI LICy is serviced along withthe following particulars:

1. The No./s of the poICICI LICy/ies2. The name of the poICICI LICyholder 3. Death Certificate issued by concerned Authority4. The date of death5. The cause of death and6. Claimant s relationship with the deceased

On receipt of the intimation of death, necessary claim forms are sent by theBranch Office for completion along with instructions regarding the procedureto be followed by the claimant.

The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of allrequirements.

The claims that have arisen within a period of two years from the date of commencement of the poICICI LICy, are treated as early claims andinvestigation is compulsory in such cases.

The claim is usually payable to the nominee/assignee or the legal heirs, as thecase may be. However, if the deceased poICICI LICyholder has notnominated/assigned the poICICI LICy or if he/she has not made a suitable

provision regarding the poICICI LICy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of title

from a Court of Law.


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The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the poICICI LICy, in the event of the death of the life

Assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five yearsrespectively.

Claim Review Committee :

The Corporation settles a large number of Death Claims every year.Only in case of fraudulent suppression of material information is theliability repudiated. This is to ensure that claims are not paid to

fraudulent persons at the cost of honest poICICI LICyholders. Thenumber of Death Claims repudiated is, however, very small. Even inthese cases, an opportunity is given to the claimant to make arepresentation for consideration by the Review Committees of theZonal office and the Central Office. As a result of such review,depending on the merits of each case, appropriate decisions aretaken. The Claims Review Committees of the Central and ZonalOffices have among their Members, a retired High Court/DistrictCourt Judge. This has helped providing transparency and confidencein our operations and has resulted in greater satisfaction amongclaimants, poICICI LICyholders and pubICICI LIC.


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COMPETITORS OF ICICI LIC

Aviva Bajaj Allianz Birla sun life Ing vysya ICICI Life Insurance corporation Max new York life MetLife India Om kotak mahindra Reliance Life Insurance SBI Life Insurance Tata AIG

AVIVAThe AVIVA Life Insurance Company is joint venture between Dabur India

and the Aviva UK. Dabur is one of the India s oldest and largest groups of companieswith consolidated Annual turnover in excess of Rs 1,350 crores, country s leading

producer of traditional Healthcare products. Aviva Plc is UK s largest and the world s

fifth largest insurance group. It is one of the leading providers of life & pension products to Europe and has substantial business elsewhere around the world.

Bajaj AllianzBajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz

AG, and Bajaj Auto, one of the biggest 2 & 3 wheeler manufacturer in the world? BajajAuto Ltd, the Flagship Company of the Rs.8000 croresBajaj group is the largest manufacturer of two-wheelers and three-wheelers in India

and one of the largest in the world.


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Om kotak mahindra Life Insurance Established in 1985 as Kotak capital management

finance promoted by Uday kotak the company has come a long way since its entry into

corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name kotak mahindra asindustrialists Harish and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of India s leading Financial institute.

OLD Mutual :-Old mutual plc is an international financial service group in London

with expanding operations in life assurance, asset management, banking and generalinsurance. OLD Mutual is listed on the London Stock Exchange and also on the south-African, Namibian, Malaawi, and Zimbabwe stock exchanges. It has 156 years of experience in ICICI Life Insurance business.

OM Kotak Mahindra :-OM Kotak Mahindra is the coming together of Kotak Mahindra

Finance Ltd .and Old Mutual plc to enter the Indian insurance arena to offer a wide rangof innovative ICICI Life Insurance products.

Reliance Life Insurance:-Reliance Life Insurance Company Ltd is a part of Reliance

Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital is oneof India s leading private sector financial services companies, and ranks among the top3 private sector financial services and banking companies, in terms of net worth.Reliance capital has interests in asset management and mutual funds, stock broking, lifeand general insurance, proprietary investments, private equity and other activities infinancial services.

Reliance Capital Ltd is a Non-Banking Financial company (NBFT) registeredwith the Reserve Bank of India act under section 45-1A. Reliance Capital sees immensePotential in the rapidly growing financial service sector in India and aims to become adominant player in this Industry and offer fully integrated financial services. RelianceICICI Life Insurance is another step forward for Reliance Capital Ltd to offer need

based ICICI Life Insurance solution to individual and corporate.

SBI Life Insurance:-SBI Life Insurance Company Ltd is a joint venture between

India s largest banks, State Bank of India and Cardiff S.A. a leading Life InsuranceCompany in France.

State bank of India is a household name, and it stands as the last world for financial strength and security in the country. SBI s illus tries background dates back tothe year 1806 when it started business, as a Presidency Bank, known as Bank of Bengal.Over the long journey, it has learnt to combine the best of banking practices handeddown from the imperial management with the more Dynamic ways of doing banking inthe modern India. It has grown as a responsible giant in the banking field over the years.

Cardiff came into being in the year 1973. Since then it has grown into a vibrantinsurance company. Specializing in personal lines such as long-term saving, protection


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products and creditor insurance. Cardiff had a premium income of over US$ 4 billion in1999. And more than US$ 23 billion of funds under its management. Cardiff has beenspecializing in the art of selling insurance products through Commercial bank in Franceand 23 other countries.

SBI ICICI Life Insurance Company Ltd is registered as a Life Insurance

Company with the Insurance Regulatory & Development Authority of India and has been issued ICICI LICense number 111 on 29 th March 2001. The Company sauthorized capital is Rs. 250 crores, and the paid up capital at present is Rs.125 crores.SBI owns 74%of the total equity, and Cardiff the balance 26%.

TATA AIG:-The TATA AIG joint venture is a tie up between the established Tata

Group and American International Group Inc. The TATA Group is one of the largestand most respected industrial houses in the country, while AIG is a leading US basedinsurance and financial service company with a presence in over 130 countries and

jurisdiction around the world.


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OBJECTIVE OF STUDY

The prime objective of the study is to find out the level of satisfaction of a

customer (poICICI LICy holders or beneficiary) so far as the settlement of

claims.

To find out the procedure of claim poICICI LICy holder or the beneficiary.

Parameters of Research Product range offered. Service quality. Network Benefit offered to customer s


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5. RESEARCH METHODOLOGY

TYPE OF RESEARCH - Exploratory research conclusiveo primary data : through observation as well as

personal interviewo secondary data : through journal, research

paper, monthly reports and financial reports SAMPLING METHOD- through judgment and convenience method SAMPLING UNIT , ICICI LIC BAREILLY SAMPLING ELEMENTS Existing and potential customers in bareilly SAMPLE SIZE- 80


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DATA COLLECTION AND METHODOLOGY

The task of data collection begins after a research problem has beendefined and research design is chalked out. While deciding about the

method of data collection to be used for the study; the researchers shouldkeep in mind two types of data i.e. Primary and Secondary data.

The primary data are those which are collected afresh and for the first time,and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else andwhich have already been passed through the statistical process. The dataused for the present research is primary data.

Data collection was done through sample, survey method involving the questionnaire

to be filled in by the investigator. This was chosen because most of the facts and datawhere of the nature of primary data. For study like this time framework is notsignificant. However, for cross sectional analysis, both the insurance and customerswere interviewed to find out real state of the affairs of the problem understudy. Wehad been close to the data obtaining through questionnaire and percentage as well astrend analysis have used to interpret the data.

Over all study is based on the findings through survey of 100 persons belonging tovaried age groups, as follows:

Age groups no. of customers18-26 2126-35 3335-45 3445-55 06Above 55 06Total 100The different methods that are used for collecting primary data are asfollows:

A) Contact Method:The 'contact method ' considering the short coming was selected to

personal interview. This method being versatile was arranged interviewingas it made concerned approach to the respondent.

B) Observation Method:The present investigation was done on the basis of making note of behavior and gestures of the target customers

C) Questionnaire Method:

The method of data collection is quite popular and is being adopted byresearchers, private individuals and organization.


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D) Schedule Method:The method of data collection is very much like the collection of datathrough questionnaire, with little difference which lies in the fact that

schedules are being filled in by the enumerates who are specially appointedfor the purpose, these enumerators go to the respondents along with theschedule and put up the question. Inferences are drawn on the answersgiven by them.


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Network of ICICI LIC

All ICICI Life Insurance Corporation branches in the country would beinterconnected under Metro Area Network (MAN) inaugurated here on Thursday.Speaking at the function, K Vaidyalingam, ICICI LIC southern zonal manager, saidabout 1500 branches would be getting covered under MAN in which the premiumamount of the poICICI LICy holder could be remitted in any branch. Besides, the

poICICI LICy holder gets his status report, poICICI LICy position, revival andquotation from the network. In every one hour the system got upgraded, he said.In southern region there are about 10 lakh new poICICI LICy holders with a businessof Rs 6500 crore. About settlement of claims, 92 per cent of poICICI LICies weresettled on or before maturity, he said, adding, ICICI LIC was in a better position and100 per cent connectivity was taking place.Kottayam stood third in premium collection during the period between April toAugust 2002, the first being Kozhikode and Thiruvananthapuram in second positionin southern region.The premium amount collected in 2001 was Rs.74,000 crore through 2.32 crore new

poICICI LICies by 8.2 lakh agents. ICICI LIC has introduced a new group insurancescheme for Corporation Bank deposit holders.

INTERNATIONAL OPERATIONS/ASSOCIATES


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Noting that the State-owned Corporation utilised information technology in itsrelentless effort to remain the leader, Mr. Chidambaram said: "My goal is to makeICICI LIC a world class insurance company. It is nearly world class now." All 2,048

branches of ICICI LIC, which had been adjudged the best user of IT by NASSCOM,were fully automated. Barring ten, all the branches were networked.

Mr. Chidambaram said the e-portal was another example of ICICI LIC's constantinnovation using information technology. Some of the multi-interfaces it offered tocustomers included call centres, IVRS, SMS and satellite branches.

Bonus rates

Announcing the bonus rates on ICICI LIC poICICI LICies, Mr. Chidambaram said onWhole Life poICICI LICies it would be Rs. 71 (per Rs. 1,000 sum assured). Onendowment poICICI LICies the bonus ranges from Rs. 34 to Rs. 50. It will be

between Rs. 32 and Rs. 45 on money-back poICICI LICies.

The bonus for Jeevan Dhara and Jeevan Suraksha schemes has been enhanced and theterminal bonus retained at last year's level. The bonus is in addition to the special

bonus announced during the golden jubilee celebrations of ICICI LIC in September.

ICICI LIC Chairman A.K. Shukla said the Corporation catered to 18 crore poICICILICy holders and the size of the life fund had crossed Rs. 3.85 lakh crores.

Stating that ICICI LIC believed in deploying the latest technology for the benefit of all concerned, he said the portal would enable customers to access a range of servicesfrom the comfort of their home.

K. Sridhar, managing director of ICICI LIC, said: "Better servicing alone can give usnew business."

Why ICICI LIC is trusted brand of India?

1. As a Govt of India owned Company, ICICI LIC is 51 + years old in the fieldof ICICI Life Insurance and money management. ICICI LIC's Life Fund sizeas on day is more than Rs 5 Lakh Thousand Crores !

2. Any ICICI LIC poICICI LICyholder or the nominee will vouch for the bestclaims settlement from ICICI LIC. Perhaps, this is the only institution whereyou as a poICICI LICyholder are virtually chased till such time your claimcheques is handed over to you !

3. ICICI LIC has won ` NDTV Profit Leadership Award 2007 under ICICILife Insurance Category ', `Outlook Money Award 2007 as the best LifeInsurer' , `CNBC Awaaz Consumer Award 2007 as the best ICICI LifeInsurance Company ', `Golden Peacock Award for excellence in Corporate

Governence 2007 ', `Web 18 Genius of the Web Award 2007 and many


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affected as a result of borrowal. Infact, poICICI LICy loans offer one of themost attractive investment opportunities.

17. You can pay your premium 3 years in advance at 5% discount. Chief attractions of this advance payment of premium are (a) there is no possibilityof your overlooking your premium payment and getting your poICICI

LICy(ies) lapsed wherever you are in the world and (b) you will be earning5% tax-free interest on the unutilized portion of the amount left with ICICILIC after apportioning the regular installment.

18. Most of the ICICI LIC plans come with Riders to take care of Total andPermanent Disablement due to Accident and some of the most dread diseasesthat may result in loss of income.

19. ICICI LIC pension plans that guarantee you life pension are extremely popular. You can park your hard earned money safely with the corporationand enjoy pension as long as you are alive.

Due to these reasons and lot more, ICICI LIC should be your obvious choice forall your ICICI Life Insurance requirements.

ICICI LIC is India s most trusted brand, INSURING LIVES AND ENSURINGSMILES from more than 50 Years.SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST ITUSER IN INDIA (NASSCOM 2003).Largest Institutional Investor in India and Second largest in Asia among insurers.(Source: Asian Investor)ICICI LIC - An Institution Builder promoting many financial and insurance instituteslike NSE, NCDEX, ICICI LIC Mutual Fund, Stock Holding Corporation of India,

National Insurance Academy, Insurance Institute of India etc.ICICI LIC is the largest life insurer of IndiaAsset value as on 31.3.2004: 3,673,598.4 mn (INR).Offers over 45 plans to cover your life at various stagesOver 160 million customers and 1.1 million agents. It has underwritten more than 160million poICICI LICies.2,048 branch offices (all computerized) of which 2019 are networkedFrom all above we can say our money is safe and secure with assured returns .


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Project AnalysisThe Positive side of ICICI LIC as well as Negative side of ICICILIC. I encourage other readers to correct me if I am wrong andalso add light to any point that I may have missed.First lets talk about the Positive side of ICICI LIC

1. ICICI LIC is owned by the government and therefore it is theonly company besides the PPF that has the sovereign guaranteeof the govt. of India. It is a different story that today ICICI LIC hasbecome so powerful that the govt. leans on ICICI LIC every timethat the Stock Market crashes. Imagine having an Asset base of over Rs 6 Lac Crore. . Thats a 14 digit number! No company inIndia can boast of such figures. Mind boggling.

2. ICICI LIC is the only ICICI Life Insurance Company makingprofits. Most of the Private Insurers including the self proclaimedmarket leaders like ICICI and Bajaj Allianz are booking heavylosses. Check IRDA website in the Annual Report column. Thepoint is that if an insurance company makes losses year over year,then how will they manage to pay the Claim amount? Afterall noInsurance company is here to do charity business.

3. When it comes to paying claims, again ICICI LIC is Number Onewith the claims settlement ratio of more than 99%. Private Insurerscannot match ICICI LIC s ability on claims settlement. Again,please visit IrDAs website to see the claims settlementperformance of various companies.

4. ICICI LIC has the worlds largest sales force, yes over 10 lac agents and now universities in western countries are trying tostudy how a company managed to appoint such a large salesforce. A sales force of over 1 million! Truly a remarkableachievement.

5. Many people argue that ICICI LIC has not been able to

penetrate the market as it has insured only 15% of the population.My point is, in a poor country like India where there are so many


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people living below the poverty line, so many people who die of starvation, so many people who dont have access to basicmedi cation, so many people who dont have basic necessities of life like food, shelter, education and clothing. Will such a person

first feed his children or buy Insurance ? Lets not forget that amajority of the Indian population is poor and a substantialpercentage is living below the poverty line. At a personal level ifeel that ICICI LIC has done a satisfactory job of insuring people.

# NOW THE NEGATIVE POINTS OF ICICI LIC #

1. The Administrative staff in ICICI LIC is in deep slumber. Trywriting a complaint to them and they wont even bother to replyback. If you ask the Branch Manager for the complaints book, heprobably wont have it in place. If an Agent complains against anystaff, then the Agent is black listed and next time onwards his workis not done.2. In order to show a better performance & achieve branchTargets, Agents are motivated by the Managers to split the poICICILICies. This not only adds to the inconvinience of the poICICI

LICyholders but it also increases the expenses of ICICI LIC.Competitions for Agents are held with Prizes being offered on thenumber of poICICI LICies sold and not on the number of livesinsured. Therefore many Agents are tempted to split the poICICILICies in order to get better prizes. However if an agent wants theforms or sales literature, most of the time its out of stock. Butsurprisingly just a week before any scheme is about to close,the office is flooded with forms & sales literature. This is verydisturbing.

3, As I earlier said, ICICI LIC is lacking in Effective Leadership inrecent times. Managers having designations like MarketingManager or Sales Manager donot have the capability to motivatean audience at a meeting. Yes this is true even in a city likeMumbai. Even the Senior level managers cannot make effectivepresentations or design a sales strategy. Their only mantra at an

Agents meeting is "Friends, bring more poICICI LIC ies!. If you askthem howto bring more poICICI LICies, they wont know. Its a pity !

4. Though ICICI LIC has more than 2000 branches, they are not


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systematically located. In Mumbais Fort area, ICICI LIC has morethan 20 branches within a radius of 1.5kms. Whats the use ? In thesuburbs where most of the people reside, there are no branches atall. ICICI LIC has no branches in Bandra East, Khar East & West,

Santacruz East, Vile Parle East, Andheri West, Jogeshwari West,Mahim, Matunga, etc. If ICICI LIC gives a thought to systematicrelocation of its offices, it will immensly help the poICICILICyholders.

5. Even though ICICI LIC claims to have taken several initiativesin the IT sector, poICICI LICyholders still face problems in revivalof their poICICI LICies, payment of premium in several branches,change of mode, change of address, etc. The After-sales poICICILICy services department needs to be revamped. PoICICILICyholders feel that ICICI LIC agents are humble while selling apoICICI LICy and thereafter they fail to provide any service to theclient. The truth is that ICICI LIC is so weak in poICICI LICyservices department, that even a good agent finds it difficult to getthe work done from the administrative staff.

To sum up, i would say that ICICI LIC will never cheat a PoICICILICyholder in payment of claim, but at the same time everyone willagree that ICICI LIC is not responsive to the needs of thecustomer. If you have purchased an ICICI LIC poICICI LICies thendont forget to pay the premium on time, and when your poICICILICy gets matured ICICI LIC will honestly pay your Maturityamount on time.

The employees are sometimes rude in their behaviour with thePoICICI LICyholder. If a claim cheques is handed over by acourteous and smiling employee of ICICI LIC, it will enhance theimage of ICICI LIC in the mind of the poICICI LICyholder.

Today ICICI LIC is not just an Insurance Company, ICICI LIC is aMovement, ICICI LIC is a Cult, ICICI LIC is a Religion. Imagine 10lac agents and 1 lac employees serving 16 crore poICICILICyholders in India. You cannot deny that ICICI LIC has becomethe way of life in India. Daily you can hear someone or theother talking of ICICI LIC in local trains, at fish markets, atrestaurants, on News Channels, in your own offices, etc.

As i earlier said, ICICI LIC has started lacking in effectiveleadership. If a company like ICICI LIC starts sponsoring irrelevant


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awards like Zee Cine awards which it had done 2 years ago, thenit will send the wrong message in the minds of the poICICILICyholders. Imagine Indias most famous institution sponsoring aCine Awards function stating that it was done to increase the brand

awareness of ICICI LIC. That sounded like a big joke. It is time thatthe top level officials of ICICI LIC come out of their air-conditionedcabins and travel by pubICICI LIC transport for sometime in order to feel the pulse of the common man.

Conclusion

After Findings we can see about ICICI LIC features and his The tendency to

take the expedient approach and focus on the far right of the ICICI LICspectrum, Peacetime Contingency Operations and conduct training as usual,

while briefing that the ICICI LIC block has been checked, will lead us to a

possibly fatal false sense of security.

Instinctive behavior and ingrained training must be adjusted to fit newcircumstances. STXs must be developed locally or borrowed from units whohave already been through the training.

The probability of becoming involved in a ICICI LIC operation is high. Thepotential to attract international attention, even with limited forces, is alsogreat. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided.

ICICI LIC is not conventional warfare. This is critical for the counterinsurgentto understand. The insurgents violent and coercive strategy is applied so asto achieve political, civil, military and psychological results. Hence, thecounterinsurgent must counter all of these strategic elements individually. Inaddition, the target of the insurgents v iolence and coercion is the population.

This is because the population is the centre of gravity in ICICI LIC. Thereforethe counterinsurgent must also focus on the population to be successful. In


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terms of military principles in counterinsurgency, doctrinal precision,professionalism, independence, initiative, force precision, restraint, combinedarms, precision engagement, joint force, effective population basedintelligence, integrated communications, a civil affairs approach and highlevels of training are critical.

So we can say that so many merits and Demerits in ICICI Life InsuranceCorporation of India.

BIBLIOGRAPHYBooks

CMIE Database programming with MS Office,

MS office,

Visual vmpro software (ICICI LIC)

Important websites

www.google.com

www.ICICI LICindia.com

Magazine

Yogkshem ICICI LIC Magazine

Outlook Express

Business today

Finance & Banking

Money Outlook

News Paper

Business standard
http://www.google.com/http://www.google.com/http://www.licindia.com/http://www.licindia.com/http://www.licindia.com/http://www.google.com/


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Times of India

Economic times

Hindustan times

LIMITATION OF THE PROJECT

ICICI LIC has been so many limitations -----

A. A Dealer is not required to obtain the sellers identification,photograph the seller, record the sellers thumbprint, or have theseller complete the Declaration of Proof of Ownership if the Dealercomplies with the remaining requirements in the AdministrativeRules and if:1. The item is acquired through consignment by a Dealer from aperson who lives more than 150 miles from the City of Portland andthe consigned property is mailed, shipped, or sent by courier to theDealer.

2. The item is acquired during a trade show. All items acquiredduring a trade show by a Dealer must be reported. At the time of the transaction, the Dealer must write on the transaction report acomplete, legible and accurate description of the regulated propertyof sufficient detail to distinguish like objects one from the other. TheDealer must also record the name and date of the event and theaddress of the venue in the name, date, and address fields of thetransaction report form. Items acquired during a trade show may besold or traded during the trade show without being held. Items stillin a Dealers possession at the end of th e show will be subject tothe hold period requirement in effect for that Dealers acquisitions of regulated property.

3. The item is acquired from a business whose acquisitions of regulated property consist exclusively of donated items and/orpurchases from a 501(c)3 organization. The Dealer must record thename and location address of the business in the name and addressfields of the transaction report form and the date of the acquisition.

4. The item is acquired through an internet transaction. The Dealermust record on the transaction report the sellers email address orsellers identification, the name of the internet website that listedthe item, and the date of the acquisition.


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5. The item is acquired by the Dealer from a yard sale, garagesale, estate sale or swap meet. The Dealer must record on thetransaction report the physical address of the sale location and thedate of the acquisition.Items acquired under Subsection A. must be held in compliancewith the hold period requirement in eff ect for the Dealers otheracquisitions of regulated property.

B. A Dealer is not required to obtain the sellers identification,photograph the seller, record the sellers thumbprint, or have theseller complete the Declaration of Proof of Ownership if the Dealercomplies with the remaining requirements in the AdministrativeRules and if the item is used, regulated property acquired from aICICI LICensed business. The Dealer must keep a receipt for theitem from the ICICI LICensed business that includes the ICICILICensed business name and a description of the item. The receiptmust be retained at the Dealers business location for one year oruntil the item is sold, whichever is longer. The Dealer must recordon the transaction report the name and location address of thebusiness in the name and address fields of the transaction reportform, and the date of the acquisition. The item does not have to beheld.

C. A Dealer is not required to make a copy of the acceptableidentification obtained from the seller, photograph the seller, orrecord the sellers thumbprint if the Dealer complies with thefollowing requirements:

1. Conducts each and every acquisition of regulated property byeither:a. not tendering payment to the seller for a minimum of 15 daysafter the regulated property is delivered to the Dealer; or

b. offering in-store credit that must be used for merchandise onlyand not redeemed for cash; and

2. Holds each and every item of regulated property for aminimum of 15 days from the date of acquisition; and

3. Complies with the remaining requirements set forth in theAdministrative Rules; and

4. Notifies the Director and the Chief of PoICICI LICe in writingthat each and every acquisition of regulated property will beconducted by not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer.


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D. A Dealer is not required to make a copy of the acceptableidentification obtained from the seller, photograph the seller, orrecord the sellers thumbprint when the Dealer acquires an item of regulated property on consignment if the Dealer complies with the

following requirements:

1. Does not tender payment to the consignor for a minimum of 15 days after the regulated property is delivered to the Dealer;

2. Holds each and every item of consigned regulated propertyfor a minimum of 15 days;

1. Complies with the remaining requirements in theAdministrative Rules.

So these are the limitation of ICICI Life Insurance Corporation of India.In every company has so many limitation but ICICI LIC haslimitation butIt is no - 1 and trusty brand of India.

So we can say that ICICI LIC is best serviceprovider and trusty brand of India.


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SUBJECT INTRODUCTION

The human resources are the most important assets of an

organization. The success or failure of an organization is largely

dependent on the caliber of the people working therein. Without positive

and creative contributions from people, organizations cannot progress and

prosper. In order to achieve the goals or the activities of an organization,

therefore, they need to recruit people with requisite skills, qualifications

and experience. While doing so, they have to keep the present as well as

the future requirements of the organization in mind.

Recruitment is distinct from Employment and Selection. Once the

required number and kind of human resources are determined, the

management has to find the places where the required human resources

are/will be available and also find the means of attracting them towards

the organization before selecting suitable candidates for jobs. All this process is generally known as recruitment. Some people use the term

Recruitment for employment. These two are not one and the same.

Recruitment is only one of the steps in the entire employment process.

Some others use the term recruitment for selection. These are not the

same either. Technically speaking, the function of recruitment precedes

the selection function and it includes only finding, developing the sourcesof prospective employees and attracting them to apply for jobs in an

organization, whereas the selection is the process of finding out the most

suitable candidate to the job out of the candidates attracted (i.e.,

recruited).Formal definition of recruitment would give clear cut idea

about the function of recruitment.


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DEFINITIONS

Recruitment is defined as, a process to discover the sources of

manpower to meet the requirements of the staffing schedule and to

employ effective measures for attracting that manpower in adequate

numbers to facilitate effective selection of an efficien t workforce. Edwin

B. Flippo defined recruitment as the process of searching for prospective

employees and stimulating them to apply for jobs in the organization.

Recruitment is a linking function -joining together those with jobs to fill

and those see king jobs. It is a joining process in that it tries to bringtogether job seekers and employer with a view to encourage the former to

apply for a job with the latter.

In order to attract people for the jobs, the organization must

communicate the position in such a way that job seekers respond. To be

cost effective, the recruitment process should attract qualified appICICILICants and provide enough information for unqualified persons to self-

select themselves out.

Thus, the recruitment process begins when new recruits are sought

and ends when their appICICI LICations are submitted. The result is a

pool of appICICI LICants from which new employees are selected.

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially

qualified job candidates. Specifically, the purposes are to:


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Recruitment represents the first contact that a company makes with

potential employees. It is through recruitment that many individuals will

come to know a company, and eventually decide whether they wish to

work for it. A well-planned and well-managed recruiting effort will result

in high-quality appICICI LICants, whereas, a haphazard and piecemeal

effort will result in mediocre ones. High-quality employees cannot be

selected when better candidates do not know of job openings, are not

interested in working for the company and do not apply. The recruitment

process should inform qualified individuals about employment

opportunities, create a positive image of the company, provide enoughinformation about the jobs so that appICICI LICants can make

comparisons with their qualifications and interests, and generate

enthusiasm among the best candidates so that they will apply for the

vacant positions.

The negative consequences of a poor recruitment process speak volumes about its role in an organization. The failure to generate an

adequate number of reasonably qualified appICICI LICants can prove

costly in several ways. It can greatly compICICI LICate the selection

process and may result in lowering of selection standards. The poor

quality of selection means extra cost on training and supervision.

Furthermore, when recruitment fails to meet the organizational needs for talent, a typical response is to raise entry-level pay scales. This can distort

traditional wage and salary relationships in the organization, resulting in

avoidable consequences. Thus, the effectiveness of a recruitment process

can play a major role in determining the resources that must be expended

on other HR activities and their ultimate success.


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SUB-SYSTEMS OF RECRUITMENT

The recruitment process consists of the following four sub-functions:-

Finding out and developing the sources where the required number

and kind of employees will be available.

Developing suitable techniques to attract the desirable candidates.

Employing the techniques to attract candidates.

Stimulating as many candidates as possible and asking them to

apply for jobs irrespective of the number of candidates required.

Management has to attract more candidates in order to increase the

selection ratio so that the most suitable candidate can be selected out of

the total candidates available. Recruitment is positive as it aims atincreasing the number of appICICI LICants and selection is somewhat

negative as it selects the suitable candidates in which process; the

unsuitable candidates are automatically eliminated. Though, the function

of recruitment seems to be easy, a number of factors make performance

of recruitment a complex one.

FACTORS AFFECTING RECRUITMENT

The following are the 2 important factors affecting Recruitment:-

1) INTERNAL FACTORS

Recruiting poICICI LICy


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Temporary and part-time employees

Recruitment of local citizens

Engagement of the company in HRP

Company s size

Cost of recruitment

Company s growth and expansion

2) EXTERNAL FACTORS

Supply and Demand factors

Unemployment Rate

Labour-market conditions

Political and legal considerations

Social factors

Economic factors

Technological factors

INDUCEMENTS

Organisational inducements are all the positive features and benefits

offered by an organization that serves to attract job appICICI LICants to


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the organisation. Three inducements need specific mention here, they

are:-

Compensation: Starting salaries, frequency of pay increases,

incentives and fringe benefits can all serve as inducements to

potential employees.

Career Opportunities: These help the present employees to grow

personally and professionally and also attract good people to the

organization. The feeling that the company takes care of employeecareer aspirations serves as a powerful inducements to potential

employees.

Image or Reputation: Factors that affect an organisation s

reputation include its general treatment of employees, the nature

and quality of its products and services and its participation inworthwhile social endeavors.

CONSTRAINTS

If a firm has a poor image in the market, many of the prospectivecandidates may not even apply for vacancies advertised by the firm. If the

job is not attractive, qualified people may not even apply. Any job that is

viewed as boring, hazardous, anxiety producing, low-paying, or lacking

in promotion potential seldom will attract a qualified pool of appICICI

LICants. Recruiting efforts require money. Sometimes because of limited

resources, organizations may not like to carry on the recruiting efforts for

long periods of time, this can, ultimately, constrain a recruiter s effort to


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through quality and services necessitated the companies to search for and

attract competent human resources. Corporations focusing on new

business development will have to seek entrepreneurial abilities,

companies planning to withdraw from diversifications must look for

pragmatists and companies chasing growth alliances should employ

people comfortable in different cultural backgrounds. Above all,

companies must hire for the future, anticipating jobs that may not be in

existence yet. Recruitment managers must focus for attitudes and

approaches that fit the corporate goals and culture.


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RECRUITMENT POICICI LICY

Recruitment poICICI LICy of any organization is derived from the

personnel poICICI LICy of the same organization. In other words the

former is a part of the latter. However, recruitment poICICI LICy by

itself should take into consideration the government s reservation

poICICI LICy, poICICI LICy regarding sons of soil, etc., personnel

poICICI LICies of other organizations regarding merit, internal sources,social responsibility in absorbing minority sections, women, etc.

Recruitment poICICI LICy should commit itself to the organisation s

personnel poICICI LICy like enriching the organisation s human

resources or servicing the community by absorbing the retrenched or laid-

off employees or casual/temporary employees or dependents of

present/former employees, etc.

The following factors should be taken into consideration in

formulating recruitment poICICI LICy. They are:-

Government poICICI LICies

Personnel poICICI LICies of other competing organizations

Organisation s personnel poICICI LICies


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Recruitment sources

Recruitment needs

Recruitment cost

Selection criteria and preference

RECRUI TM ENT- M atching the of the organization & appI CICI

LICants

IMPACT OF PERSONNEL POICICI LICIES ON RECRUITMENT

POICICI LICIES

Recruitment poICICI LICies are mostly drawn from personnel

poICICI LICies of the organization. According to Dale Yodar and Paul

D. Standohar, general personnel poICICI LICies provide a wide variety

of guidelines to be spelt out in recruitment poICICI LICy. After formulation of the recruitment poICICI LICies, the management has to

decide whether to centralize or decentralize the recruitment function.

CENTRALISED V/s DECENTRALISED RECRUITMENT


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Recruitment practices vary from one organization to another. Some

organizations like commercial banks resort to centralized recruitment

while some organizations like the Indian Railway resort to decentralized

recruitment practices. Personnel department at the central office performs

all the functions of recruitment in case of centralised recruitment and

personnel departments at unit level/zonal level perform all the functions

of recruitment concerning to the jobs of the respective unit or zone.

MERITS OF CENTRALISED RECRUITMENT

Average cost of recruitment per candidate/unit should be relativelyless due to economies of scale.

It would have more expertise available to it.

It can ensure broad uniformity among human resources of various

units/zones in respect of education, skill, knowledge, talent, etc.

It would generally be above malpractices, abuse of powers,

favouritism, bias, etc. It would facilitate interchangeability of staff among various

units/zones.

It enables the line managers of various units and zones to

concentrate on their operational activities by relieving them from

the recruiting functions.

It enables the organization to have centralised selection procedure, promotional and transfer procedure, etc.

It ensures the most effective and suitable placement to candidates.

It enables centralised training programmes which further brings

uniformity and minimizes average cost of staff.

MERITS OF DECENTRALISED RECRUITMENT


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The unit concerned concentrates only on those sources/places

wherein normally gets the suitable candidates. As such the cost of

recruitment would be relatively less.

The unit gets most suitable candidates as it is well aware of the

requirements of the job regarding culture, traditional, family

background aspects, local factors, social factors, etc.

Units can recruit candidates as and when they are required without

any delay.

The units would enjoy freedom in finding out, developing the

sources, in selecting and employing the techniques to stimulate the

candidates.

The unit would relatively enjoy advantage about the availability of

information, control and feedback and various functions/processes

of recruitment.

The unit would enjoy better familiarity and control over the

employees it recruits rather than on employees selected by thecentral recruitment agency.

Both the systems of recruitment would suffer from their own demerits.

Hence, the management has to weigh both the merits and demerits of

each system before making a final decision about centralizing or

decentralizing the recruitment. Alternatively management maydecentralize the recruitment of certain categories of employees preferably

middle and top level managerial personnel and centralize the recruitment

of other categories of employee s preferably lower level positions in view

of the nature of the jobs and suitability of those systems for those

categories of positions. The management has to find out and develop the


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sources of recruitment after deciding upon centralizing or decentralizing

the recruitment function.

CASE STUDY:-

WHICH IS MORE IMPORTANT

RECRUITING OR RETAINING

Uptron Electronics Ltd is an internationally reputed electronics

firm. It attracted employees from internationally reputed institutes andindustries by offering high salaries, perks, etc. It had advertised for the

position of an Electronics engineer some years back. Nearly 150

candidates working in various electronics firm applied for the job. Mr.

Sashidhar, an Electronics Engineer Graduate from Indian Institute of

Technology with 5 years of working experience in a small electronics

firm was selected among those interviewed. The interview boardrecommended an enhancement in his salary by Rs.500 more than his

present salary at his request. He was very happy and was congratulated

by his previous employer for his brilliant interview performance and good

luck.

Mr. Sashidhar joined the company with great enthusiasm and also

found his job to be quite comfortable and challenging one. He found that


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his colleagues and superiors were friendly and co-operative. But this

didn t last long. After one year of his service, he slowly learnt about a

number of unpleasant stories about the company, management, the

superior-subordinate relations, rate of employee turnover, etc. But still he

decided to continue with the promise that he made in the interview. He

wanted to please and change the attitude of management through his

performance, commitment and dedication. Looking at his great

contributions and efforts, the management got the impression that he is

well settled will remain in the company for a long time. After sometime

they all started taking undue advantage of him and overloaded him withmultifarious jobs and thereby ridded over him. As a result, his freedom in

deciding and executing was cut down to size; his colleagues started

assigning their responsibilities to him. Consequently, there were

imbalances in his family, social and organization life.

It was quite surprising to the general manager to see the resignationletter of Mr. Sashidhar one fine morning. The general manager failed to

convince him to withdraw his resignation. The general manager wanted

to appoint a committee to go into the matter immediately, but dropped the

idea later so that the company s image doesn t get spoiled.

ANALYSIS

Thus, from this case study it is clear that retaining is much more

important than recruiting. What s the use and benefits of recruiting

quality employees if they cannot be retained by the organization in a

proper manner. The purpose of recruitment is fulfilled when the

employees selected from a pool of qualified appICICI LICants are

retained in the company by keeping them satisfied in all aspects. They


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must be provided with better working conditions, better pay scales,

incentives, recognition, promotion, bonus, flexible working hours, etc.

They should treat the employees as co-owners and partners of the

company.

SOURCES OF RECRUITMENT

The sources of recruitment may be broadly divided into two

categories: internal sources and external sources. Both have their ownmerits and demerits. Let s examine these.

Internal Sources:-

Persons who are already working in an organization constitute the

internal sources . Retrenched employees, retired employees, dependentsof deceased employees may also constitute the internal sources.

Whenever any vacancy arises, someone from within the organization is

upgraded, transferred, promoted or even demoted.

External Sources

External sources lie outside an organization. Here the organization

can have the services of : (a) Employees working in other organizations;

(b) Jobs aspirants registered with employment exchanges; (c) Students

from reputed educational institutions; (d) Candidates referred by unions,

friends, relatives and existing employees; (e) Candidates forwarded by

search firms and contractors; (f) Candidates responding to the


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advertisements, issued by the organization; and (g) UnsoICICI LICited

appICICI LICations/ walk-ins.

Merits and Demerits of Recruiting people from Within

Merits Demerits

1) Economical: The cost of

recruiting internal candidates is

minimal. No expenses are

incurred on advertising.

2) Suitable: The organization can

pick the right candidates having

the requisite skills. The

candidate can choose a right

vacancy where their talents can

be fully utilized.

3) Reliable: The organization has

the knowledge about suitability

of a candidate for a position.

Known devils are better than

unknown angels!

4) Satisfying: A poICICI LICy of

preferring people from within

offers regular promotional

1) Limited Choice: The

organization is forced to select

candidates from a limited pool.

It may have to sacrifice quality

and settle down for less

qualified candidates.

2) Inbreeding: It discourages

entry for talented people,

available outside an

organization. Existing

employees may fail to behave

in innovative ways and injectnecessary dynamism to

enterprise activities.

3) Inefficiency: Promotions

based on length of service

rather than merit, may prove to

be a blessing for inefficient


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avenues for employees. It

motivates them to work hard

and earn promotions. They will

work with loyalty commitment

and enthusiasm.

candidate. They do not work

hard and prove their worth.

4) Bone of contention:

Recruitment from within may

lead to infighting among

employees aspiring for limited,

higher level positions in an

organization. As years roll by,

the race for premium positions

may end up in a bitter race.

The merits and demerits of recruiting candidates from outside an

organization may be stated thus:

Merits and Demerits of External sources of Recruitment

Merits Demerits

Wide Choice: The organization has

the freedom to select candidates

from a large pool. Persons with

requisite qualifications could be

picked up.

Expenses: Hiring costs could go up

substantially. Tapping multifarious

sources of recruitment is not an

easy task either.


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Infection of fresh blood: People

with special skills and knowledge

could be hired to stir up the existing

employees and pave the way for

innovative ways of working.

Motivational force: It helps in

motivating internal employees to

work hard and compete withexternal candidates while seeking

career growth. Such a competitive

atmosphere would help an

employee to work to the best of his

abilities.

Long term benefits: Talented

people could join the ranks, new

ideas could find meaningful

expression, a competitive

atmosphere would compel people

to give out their best and earnrewards, etc.

Time consuming: It takes time to

advertise, screen, to test and test

and to select suitable employees.

Where suitable ones are not

available, the process has to be

repeated.

De-motivating: Existing

employees who have put in

considerable service may resist the process of filling up vacancies from

outside. The feeling that their

services have not been recognized

by the organization, forces then to

work with less enthusiasm and

motivation.

Uncertainty: There is no guarantee

that the organization, ultimately

will be able to hire the services of

suitable candidates. It may end up

hiring someone who does not fitand who may not be able to adjust

in the new setup.


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METHODS OF RECRUITMENT

The following are the most commonly used methods of recruiting people.

INTERNAL METHODS:

1. Promotions and Transfers

This is a method of f i ll ing vacancies f rom within through transfers and

promotions.

A transfer is a lateral movement within the same grade, from one job

to another. It may lead to changes in duties and responsibilities, working

conditions, etc., but not necessarily salary. Promotion, on the other hand,

involves movement of employee from a lower level position to a higher level position accompanied by (usually) changes in duties,

responsibilities, status and value. Organisations generally prepare badli

lists or a central pool of persons from which vacancies can be filled for

manual jobs. Such persons are usually passed on to various departments,

depending on internal requirements. If a person remains on such rolls for

240 days or more, he gets the status of a permanent employee as per theIndustrial Disputes Act and is therefore entitled to all relevant benefits,

including provident fund, gratuity, retrenchment compensation.

2. Job Posting


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Job posting is

lic in hrm of icic

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