megha life insurance basics (1)

7/27/2019 Megha Life Insurance Basics (1)

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ING VYSYA LIFE INSURANCE CO.LTD

1

DECLARATION

I do hereby declare that the dissertation entitled STRATEGIC METHOD

OF ING VYSYA LIFE INSURANCE. under guidance of Mr. Sisir Sahu. being

submitted by me is a record of my research work. The report embodies the

finding based on my study and observation and has been published or Submitted

anywhere else.

Miss Saubhagyalaxmi Mohanty


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AcknowledgementI am thankful to ING Life insurance, for giving me an opportunity to work in

their esteemed organization. I am honored to sincerely thank, Mr. SISIR SAHU,

BRANCH MANAGER ,Kharavel nagar branch, Bhubaneswar, who gave me an

opportunity to work under such an esteemed organization and for expressing his

faith and confidence in me by assigning this project.

I am also grateful to our guide Mr. Rashmi Ranjan Panigrahi Faculty of

ASMIT, whose continuous and valuable guidance can never be forgotten and

without whom, this study could not have got this present shape.

As the outset I express my deep sense of gratitude to our Honble Director,

ASMIT & to the course coordinator of MFC for giving me permission to

undergo this training programme.

Finally I am thankful to & all the faculty members who supported me for doing

the project

Thanking You

Miss Saubhagyalaxmi Mohanty


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Table of CONTENTSSl. No Contents Page No.

1 IntroductionObjectives of the project

Scope of the project

Research Methodologylimitation of the project

2 Literature Review

3 Industry Profile

4 Company profile

5 Data analysis & Interpretation

6 Findings & suggestion

7 Summary & Conclusion- Conclusion

- Recommendation- Scope for further study

8 Bibliography

9 Appendices


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CHAPTER- 1INTRODUCTION

OBJECTIVE OF THE PROJECT SCOPE OF THE PROJECT RESEARCH METHODOLOGY

LIMITATION OF THE PROJECT


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SCOPE OF STUDY1To study the various policies available to cater the needs ofdifferent kinds of customers by the ING life insurance.-the various plans like safal jeevan plan, high life plan, childprotection plan etc.,

2..

To study also the different strategies methods followed by the lifeinsurance company.

RESEARCH METHODOLOGY


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First Phase:

Secondary information review & desk study of existing literature are conducted.

A flexible, creative, open and dynamic social dialogue with the staff and theproject functionaries is carried out.

Second Phase:

Preliminary visits to the field, observation, interactive group interviews, and

village meetings are also conducted.

Third Phase:

Stakeholders consultation involving the project team for consensus building on

a sensitive framework to guide field work.

Fourth Phase:

Data collection through questionnaire round.


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CHAPTER:-2

CHAPTER:-2

LITERATURE REVIEW


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Availability of literature on impact of INSURANCE interventions with

particular reference to NRDA is limited. Many of the existing impact

assessments are of qualitative and anecdotal in nature and there are

very few attempts made to analyze the impact in quantitative terms.

This addressed the question of the benefits to the poorest members of

the investors. The evidence suggested that nearly all members benefited

to some extent although the benefits to poorer members were less or

delayed compared to the better off..

The holders of life insurance policies enjoy various tax advantages as well. Thisincentive is of great social and economic values. Besides Life insurancecompanies contribute to conservation of health. It is also an important factor inthe prevention of family integration and has wide social significance.

THE BEGINNINGS OF LIFE INSURANCELife insurance can be traced back to the sixteenth century when short-termassurances were usually effected as collateral security for loans. Indeed, the first

life assurers were marine insurance underwriters, policies often being written on


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the life of a merchant sailing with his goods. The first recorded life policy wasin 1583, which was subject to a dispute over payment. The policy was granted

by 16 individual underwriters of England on June 18, 1583, for 12 months onthe life of one William Gibbons.

Life insurance is one of the most popular forms of insurance andhas acquired a top position all over the world. Like other branches of insurance,it is a device for distributing equally the heavy financial losses on the happeningof a specified event over a group of such persons as are exposed to the same riskand agree to share among themselves such losses. The event may be the deathof an individual , who may be the bread-winner of the family or it may be hisoutliving his financial usefulness or an earning age to provide for his needs.The first category where he may die too soon is physical death while the second

category where he may live too long is economic death. A man who is forced toretire from his job at 55 or 60 or becomes too ill to work at early ages isfinancially dead, unless he has alternative source of income. Thus life insurance

protects against financial losses resulting from premature death of the insured orguarantees the payment of a certain sum of money on his attaining a certain age.When an insured person dies, the proceeds of the policy are paid to hisrepresentative or beneficiary designated in the policy. If however, he attains acertain age and the payments become due during his life time, the amount of the

policy will be paid to him.Since every person faces these basics contingenciesconcerning life and is exposed to the same risk.

In its modern form, life insurance provides protection against the risk of earlydeath and is at the same time a good form of investment. It enables a man tooverlap the barrier of death and to overcome the grim fear that his loved onesmay some day become dependants upon the charity of others but can livehonourably after the death of the insured.. In addition to its primary mission offamily protection against immature deaths, provision for old age, creating fundsfor investments, and promoting thrift. It has many business uses. The

businessman can protect against the loss arising from premature death of the

important members of the staff, like business partners, directors, engineers,promoters, and other key employees and can create a sense of belonging withthe employing organization. Also, insurance policies can be used as collateralsecurity for securing loans or for the repayment of debts. Besides it enables anindividual to use capital accumulations in ventures involving high degree ofrisks by guaranteeing replacement of capital to dependants in case of death.

The holders of life insurance policies enjoy various tax advantages as well. Thisincentive is of great social and economic values. Besides Life insurance


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companies contribute to conservation of health. It is also an important factor inthe prevention of family integration and has wide social significance.

WHAT IS LIFE INSURANCE???

Life insurance offers a way to replace the loss of income that occurs whensomeone dies (usually the person who produces the majority of income in afamily situation). It is a contract between you as the insured person and thecompany or "carrier" that is providing the insurance. If you die while the

contract is in force, the insurance company pays a specified sum of money free


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of income tax "cash benefits" to the person or persons you name asbeneficiaries.

A good life insurance program does more than just replace the loss of income

that occurs if you die. It should also provide money to cover the new costs thatarise after your death funeral expenses, taxes, probate costs, the need forhousekeepers and child care, and so on. And these cash benefits should providefor your family's future needs as well, including college education for yourchildren and part or all of your spouse's retirement needs. In almost all cases,your beneficiary can use the cash benefits in the way he or she sees fit, withoutrestriction.

Some types of life insurance PERMANENT LIFE INSURANCE policies have a cash value that you can obtain by cashing out the policy or by

borrowing against it. Though it can seem attractive, most financial experts agreethat this feature should be seen as a secondary purpose of life insurance.Another type of insurance is TERM LIFE INSURANCE policies are availableas well. To learn more click the respected link.

DO YOU REALLY NEED LIFE INSURANCE??

If there is someone who would suffer economic hardship if you died, then theanswer is yes... you need life insurance! Families with young children have aclear need for life insurance. If both spouses work, the loss of one income willcause the family immediate economic hardship and make it harder for them to

realize future goals, such as paying for the children's' education. But even if onespouse works "inside the home" and doesn't bring in a formal income, his or herdeath will require the surviving spouse to hire child care, housekeepers andother professionals to help run the household - and that can be a significant newexpense.

If you are married without children or single, then you may need life insuranceto protect your partner or surviving family members against the costs associatedwith your death. Funeral expenses, probate and administrative fees, outstanding

debts, special obligations to charities, and federal and state taxes are costs that


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allof us must consider. And, they can add up quickly. Unless you already havesufficient financial resources, your survivors will probably need life insuranceto cover these expenses.

HOW TO CALCULATE THE AMOUNT OF INSURANCE WE NEED??

HUMAN LIFE VALUE

Human Life Value" is that amount which ensures that the standard of living of afamily is not affected even if the earning member is not there or not able toearn.

Our families are accustomed to a certain standard of living. What we often failto realize is that this standard of living is entirely dependant on the earningmember of the family. If the earning member is unable to provide for thefamily, it is hardly possible to maintain the same quality of life.

1. IS IT IMPORATANT TO KNOW YOUR HUMAN LIFE

VALUE?

Our families are accustomed to a certain standard of living. What we often fail to realize isthat this standard of living is entirely dependent on the earning member of the family. If theearning member is unable to provide for the family, it is hardly possible to maintain the samequality of life

2.. STEP TO CALCULATE HUMAN LIFE VALUE

AGE HLV(multiple of gross annual income/salary)Up to 25 years 20 times

26 to 35 years 15 times



Above 61 years On merits

INFORMATIONS REQUIRED


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What is the family's Monthly Household Expenditure? Per Month

What is the family's Annual Lifestyle Expenditure? Per Year

What percent of the monthly household expense is on you? % per Month

What percent of the annual lifestyle expense is on you? % per Year

What Inflation do you expect on household expenses? %

What return do you expect on risk free securities? %How many financial dependents do you have?

Select Dependent Type

What is the Dependent's Current Age?Years

How many more years will they be dependent on you?Years

What is the percentage of monthly household expense spent on the dependent?% per Month

What is the percentage of annual lifestyle expense spent on the dependent?% per Year

What specific Goals does the dependent have? (If any)

Specify Goal Here (graduation / post graduation/ marriage / other)Rs.



Total Monthly Expense on Dependent 0 Rs.

Financial Value of your Life to your Dependent 0 Rs.

Outstanding Loans Rs.

Other Liabilities Rs.

Contingency Funds that will be required by the family Rs.

Current Life Insurance that the client already has Rs

. Assets that the family will be able to financially use in case of clients demise Rs.TOTAL INSURANCE REQUIREMENT0 Rs.

INSURANCE VS ASSURANCE

The specific uses of the terms "insurance" and "assurance" are sometimesconfused. In general, in jurisdictions where both terms are used, "insurance"refers to providing coverage for an event that might happen (fire, theft, flood,etc.), while "assurance" is the provision of coverage for an event that is certain

to happen. In the United States both forms of coverage are called "insurance"


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for reasons of simplicity in companies selling both products. As per sometheories, the term "insurance" is used where the financial losses are assessedafter happening of the event and the amount to be paid is decided. Whereas in"assurance" the amount is predefined irrespective of the losses occurred.

TWOBASIC CLASSIFICATIONS OF LIFE INSURANCE

Temporary Life Insurance

Permanent Life Insurance

Term assurance provides life insurance coverage for a specified term. The

policy does not accumulate cash value. Term is generally considered "pure"insurance, where the premium buys protection in the event of death and nothingelse.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),2. Premium to be paid (cost to the insured), and

3. Length of coverage (term).

Permanent l if e insuranceis life insurance that remains active until the policymatures, unless the owner fails to pay the premium when due. The policycannot be cancelled by the insurer for any reason except fraudulent application,and any such cancellation must occur within a period of time (usually twoyears) defined by law. A permanent insurance policy accumulates a cash value,reducing the risk to which the insurance company is exposed, and thus theinsurance expense over time. This means that a policy with a million dollar face

value can be relatively expensive to a 70-year-old.

THIRTEEN COMPANIES AS LIFE INSURERS, REGISTERED BY IRDA:

HDFC Standard Life Insurance Co. LtdICICI Prudential Life Insurance Co. LtdMax New York Life Insurance Co. LtdOm Kotak Mahindra Life Insurance Co. Ltd
http://en.wikipedia.org/wiki/Permanent_life_insurancehttp://en.wikipedia.org/wiki/Permanent_life_insurancehttp://en.wikipedia.org/wiki/Permanent_life_insurance


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Birla Sun Life Insurance Co. LtdTata AIG Life Insurance Co. LtdSBI Life Insurance Co. Ltd ING Vysya Life Insurance Co. LtdAllianz Bajaj Life Insurance Co. LtdMetlife India Life Insurance Co. LtdAMP Sanmar Life Insurance Co. LtdDabur CGU Life Insurance Co. LtdAviva Life Insurance Co. Pvt. Ltd

These thirteen insurers are limited companies, registered under the companiesAct, unlike the LIC, which is a corporation set up under the LIC Act of 1956 by

the Central Government. Each of these organizations will have differentorganizational structures. Not only the number of offices and their locations, butthe designations and responsibilities vested at various positions would bedifferent.

IMPORTANT ACTIVITIES OF A LIFE INSURANCE

COMPANY: Procuring applications or proposals from prospective buyers of life

insurance.

Scrutinising and making decisions on the proposals for insurance. Thisis called underwriting.

Issuing the policy document, incorporating the terms and conditions ofthe insurance cover.

Keeping track of the performance of the insurance contract by eitherparty, like payment of premium or payment of benefits.

Other supporting activities like advertising, investment of funds,maintenance of accounts, management of personnel, processing of data,compliance with regulations and laws.

LIFE INSURANCE---A FAST GROWING SECTOR

Life Insurance is the fastest growing sector in India since 2000 as Governmentallowed Private players and FDI up to 26% and recently Cabinet approved a

proposal to increase it to 49%. Life Insurance in India was nationalised byincorporating Life Insurance Corporation (LIC) in 1956. All private life

insurance companies at that time were taken over by LIC.


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In 1993, the Government of India appointed RN Malhotra Committee to laydown a road map for privatisation of the life insurance sector.

While the committee submitted its report in 1994, it took another six years

before the enabling legislation was passed in the year 2000, legislationamending the Insurance Act of 1938 and legislating the Insurance regulatoryand development authority act of 2000. The same year the newly appointedinsurance regulator - Insurance Regulatory and Development Authority IRDA

started issuing licenses to private life insurers.


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COMPANY

PROFILE

ING VYSYA LIFE INSURANCE CO. LTD.


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Company profile

At ING Life, our mission is-- To set the standard in helping ourcustomers manage their financial future.

ING Vysya Life Insurance Company Limited (ING Life Insurance India) is a

life insurance company head quartered in Bangalore. ING Vysya Life Insurancerecently achieved the significant milestone of completing 10 years of operationsin India. The company is a joint venture between Exide Industries and INGInsurance International B.V. ING Life Insurance India is currently present inover 200 cities and serves over 1 million policy holders in India. The companydistributes its products through two channels, Tied Agency and AlternateChannel. The Tied Agency Channel comprises over 30,000 ING Life InsuranceAdvisors, spread across the country. The Alternate Channel is a fast growingdistribution channel, and includes Bancassurance partner (ING Vysya Bank),

Cooperative Banks, Corporate Agents and Brokers.

ING Vysya Life Insurance Company Limited is an established life insurancecompany with over a decade of experience serving over I million customers inover 200 cities in India. Headquartered in Bangalore, ING Vysya Life InsuranceCompany Limited is 100% owned by Exide Industries Limited.

The company distributes its products through key channels like Tied Agency,Banc assurance and Alliances. The Tied Agency channel comprises over 30,000ING Vysya Life Insurance Advisors, spread across the country. The Bancassurance and Alliances business within ING Vysya Life Insurance is a fastgrowing distribution channel, and includes the Banc assurance partner (INGVysya Bank), Referral Partners, Corporate Agents and Brokers.


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ING LIFES business is driven on our values of Optimism,Knowledgeable, Trustworthy and Transparent.

Optimism: We bear an approach of Optimism towards our company,towards each other, in our products and in our care for our customers interests.

Knowledgeable: We cultivate the knowledgeable value through ourrobust way of working, sharing and actively communicating.

Trustworthy:We deliver trustworthiness by doing the right things in rightway, by delivering an easier customer experience and by being a sociallyresponsible corporate.

Transparent: Our value of transparent drives our actions, reflects in ourproducts and services.

Their values are personified by our people through a set of Personalityaspects. These personality aspects are: Positive, Professional, Accountable and

Transparent.

Positive: ING Life India employees live its value of optimism bybearing a positive and can-do attitude to their work.

Professional: At ING Life India, we expect the highest standard ofprofessional behavior by providing professional advice to customers, bytreating customers equitably, abide by companys culture and act with

compliance.

Accountable: ING Life India expects employees to be accountable fortheir actions, words and decisions such that it builds their personalintegrity and fosters ING Life Indias value of trustworthiness.


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Straightforward: ING Life India expects employees to bestraightforward in their conduct and work while dealing with customersand colleagues

The Brand Essence of ING Life is, Experience the joy of fulfilling yourresponsibility. This essence is captured in the unique brand positioning MeraFarz, developed in 2007. This positioning means, ING Life helps its customersfulfill their responsibilities as provider towards themselves and their families.ING Life provides its customers with the strength, reliability and the right

balance between long-term savings, security & reasonable returns.

ING Life follows a "customer centric approach" while designing its products.The Company's product portfolio offers products that cater to every financial

requirement, at all life stages. ING Life has developed an exclusive tool - theLifeMakerTM

a simple tool which helps our customers choose a plan mostsuitable to them, based on their needs, requirements and current life stage. Thistool helps build a complete financial plan for life at every lifestage, whether therequirement is Protection, Savings, Retirement or Investment.

MANAGEMENT

BOARD OF DIRECTORS (as on March 21, 2013)Mr. Rajan Raheja : Chairman

Mr. A. K. Mukherjee : Director

Mr. Kshitij Jain : Managing Director & CEO

Mr. N. N. Joshi : Director

Mr. Rajesh Kapadia : Director

Mr. Satish Raheja : Director

EXECUTIVE TEAM(as on March 21, 2013)

Mr. Kshitij Jain: Managing Director & CEO

Mr. Rahul Agarwal: Chief Distribution Officer

Mr. B. Ashwin: Chief Operating Officer


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Mr. Uco Vegter: Chief Financial Officer


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Indian life Insurance Industry Overview

All life insurance companies in India have to comply with the strict regulationslaid out by Insurance Regulatory and Development Authority of India (IRDA).

Life Insurance Corporation of India (LIC), the state owned behemoth, remainsby far the largest player in the market. The private companies have come outwith products called ULIPs (Unit Linked Investment Plans) which offer bothlife cover as well as scope for savings or investment options as the customerdesires. These type of plans are subject to a minimum lock-in period of threeyears to prevent misuse of the significant tax benefits offered to such plansunder the Income Tax Act. Comparison of such products with mutual fundswould be erroneous.

CHAPTER-2TYPES OF LIFE INSURANCE

IMPORTANCE OF HAVING LIFEINSURANCE


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TYPES OF INSURANCE


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1. Marine Insurance:


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The marine insuranceis the oldest form of insurance. Under Bottom bond, thesystem of credit and the law of interest were well-developed and were based ona clear appreciation of the hazard involved and the means of safeguardingagainst it.

If the ship was lost, the loan and interest were forfeited. The contract ofinsurance was made a part of the contract of carriage, and Manu shows thatIndians had even anticipated the doctrine of average and contribution.

Freight was fixed according to season and was expected to be reasonable in thecase of marine transport which was then very much at the mercy of winds andelements. Travellers by sea and land were very much exposed to the risk oflosing their vessels and merchandise because the piracy on the open seas andhighway robbery of caravans were very common.

Besides there were several risks, Many times, it might have beencaptured by the king's enemies or robbed by pirates or got sunk in thedeep waters.

The risk to owners of such ships were enormous and, therefore, tosafeguard them the marine traders devised a method of spreading overthem the financial loss which could not be conveniently borne by theunfortunate individual victims.

The co-operative device was quite voluntary in the beginning, but now in

modern it has been converted into modified shape of premium.

The marine policies of the present forms were sold in the beginning offourteenth century by the Brogans. On the demand of the inhabitants ofBurges, the Court of Flanders permitted in the year 1310, theestablishment in this Town of a charter of Assurance, by means of whichthe merchants could insure their goods, exposed to the risks of the sea.

The insurance development was not confined to the Lombard's and tothe Hansa merchants; it spread throughout Spain, Portugal, France,

Holland and England. The marine form land lending prominence ofLombard's merchants got a prominent section of the London City.

They built homes there and took the name of Lombard Street. Later on,this street became famous in insurance history. The Lloyd's coffee-housegave an impetus to develop the marine insurance.

2. Fire Insurance:


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After marine insurance, fire insurance developed in present form. It hadbeen observed in Anglo- Section Guild form for the first time where thevictims of fire hazards were given personal assistance by providingnecessaries of life.

It had been originated in Germany in the beginning of sixteenth century.The fire insurance got momentum in England after the great fire in 1666

when the fire losses were tremendous.

About 85 per cent of the houses were burnt to ashes and property worthof sterling ten crores were completely burnt off. Fire Insurance Office

was established in 1681 in England. With colonial development ofEngland, the fire insurance spread all over the world in present form'Sun Fire Office was successful fire insurance institution.

In India, the general insurer started working since 1850 with theestablishment of the Triton Insurance, Calcutta. Again in 1861, the NorthBritish and Mercantile catered the requirements of insurance business.

The general insurance in India could not progress much. The slowgrowth of joint-stock enterprise and mechanised production was anotherreason for the low level of general insurance business.

3. Life Insurance:Life insurance made its first appearance in England in sixteenth century, thefirst recorded evidence in England being the policy on life of William Gibbonson June 18, 1653. Even before this date annuities had become quite common inEngland, and marine insurance had, in fact, made its appearance three thousandyears ago.

The life insurance developed at Exchange Alley. The first registered life officein England was the Hand-in-Hand Society established in 1696. The famousAmicable Society for a Perpetual Assurance Office started its operation since

1706.

Life insurance did not prosper in the United States during the 18th century,because of serious fluctuations in death-rate, but soon after 1800 some activeinterest began to be shown in this enterprise because of the application of level

premium plan which had by then been in operation in U.K. for more than ageneration.

In India, some Europeans started the first life insurance company in BengalPresidency, viz., the Orient Life Assurance Company in 1818. The year 1870

was a year of a landmark in the history of Indian Insurance separating the early


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period of pioneering attempts at life insurance from the subsequent period ofsteady development at the establishment of Indian Life Office, viz., BombayMutual Life Assurance Society in 1871.

The next important life office was Oriental Government Security LifeAssurance Co., Ltd., which started its operation since 1874. Since then severaloffices developed in India.

4.Miscellaneous Insurance:The miscellaneous insurance took the present shape at the later part ofnineteenth century with the industrial revolution in England. Accidentinsurance, fidelity insurance, liability insurance and theft insurance were theimportant form of insurance at that time.

Lloyds's Association was the main functioning institution. Now, insurancessuch as cattle insurance, crop insurance, profit insurance, etc., and are taking

place. The scope of general insurance is increasing with the advancement of thesociety.

5. Health Insurance:Health insurance is insurance against the risk of incurring medical expenses

among individuals. By estimating the overall risk of health care and healthsystem expenses among a targeted group, an insurer can develop a routinefinance structure, such as a monthly premium or payroll tax, to ensure thatmoney is available to pay for the health care benefits specified in the insuranceagreement. The benefit is administered by a central organization such as agovernment agency, private business, or not-for-profit entity. According to theHealth Insurance Association of America, health insurance is defined as"coverage that provides for the payments of benefits as a result of sickness orinjury. Includes insurance for losses from accident, medical expense, disability,or accidental death and dismemberment"

Health plan vs. Health insurance

Historically, HMOs tended to use the term "health plan", while commercialinsurance companies used the term "health insurance". A health plan can also


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refer to asubscription-based medical care arrangement offered through HMOs,preferred provider organization, or point of service plan . These plans aresimilar to pre-paid dental, pre-paid legal, and pre-paid vision plans. Pre-paidhealth plans typically pay for a fixed number of services (for instance, $300 in

preventive care, a certain number of days of hospice care or care in a skillednursing facility, a fixed number of home health visits, a fixed number of spinalmanipulation charges, etc.). The services offered are usually at the discretion ofa utilization review nurse who is often contracted through the managed careentity providing the subscription health plan. This determination may be madeeither prior to or after hospital admission6. VEHICLE INSURANCE:Vehicle insurance (also known as auto insurance, GAP insurance, car insurance,

or motor insurance) is insurance purchased for cars, trucks, motorcycles, andother road vehicles. Its primary use is to provide financial protection against

physical damage and/or bodily injury resulting from traffic collisions andagainst liability that could also arise there from. The specific terms of vehicleinsurance vary with legal regulations in each region. To a lesser degree vehicleinsurance may additionally offer financial protection against theft of the vehicleand possibly damage to the vehicle, sustained from things other than trafficcollisions.

Auto Insurance in India deals with the insurance covers for the loss or damagecaused to the automobile or its parts due to natural and man-made calamities. It

provides accident cover for individual owners of the vehicle while driving andalso for passengers and third party legal liability. There are certain generalinsurance companies who also offer online insurance service for the vehicle.

Auto Insurance in India is a compulsory requirement for all new vehicles usedwhether for commercial or personal use. The insurance companies have tie-upswith leading automobile manufacturers. They offer their customers instant autoquotes. Auto premium is determined by a number of factors and the amount of

premium increases with the rise in the price of the vehicle. The claims of theAuto Insurance in India can be accidental, theft claims or third party claims.Certain documents are required for claiming Auto Insurance in India, like dulysigned claim form, RC copy of the vehicle, Driving license copy, FIR copy,Original estimate and policy copy.

DIFFERENT TYPES OF AUTO INSURANCE IN INDIA :


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Private Car InsuranceIn the Auto Insurance in India, Private Car Insurance is the fastestgrowing sector as it is compulsory for all the new cars. The amount of premium depends onthe make and value of the car, state where the car is registered and the year of manufacture.

Two Wheeler InsuranceThe Two Wheeler Insurance under the Auto Insurance in India

covers accidental insurance for the drivers of the vehicle. The amount of premium dependson the current showroom price multiplied by the depreciation rate fixed by the TariffAdvisory Committee at the time of the beginning of policy period.

Commercial Vehicle InsuranceCommercial Vehicle Insurance under the Auto Insurancein India provides cover for all the vehicles which are not used for personal purposes, like theTrucks and HMVs. The amount of premium depends on the showroom price of the vehicle atthe commencement of the insurance period, make of the vehicle and the place of registrationof the vehicle.

WHAT IT INCLUDES WHAT IT DOES NOT INCLUDE Loss or damage by accident, fire, lightning,self ignition, external explosion Consequential loss, depreciation, mechanicaland electrical breakdown, failure or breakageLiability for third party injury/death, third

party property and liability to paid driver.When vehicle is used outside thegeographical area OR War or nuclear perilsand drunken driving

On payment of appropriate additionalpremium, loss/damage to electrical/electronicaccessories.

Auto repair insurance is an extension of carinsurance available in all 50 of the United Statesthat covers the natural wear and tear on a vehicle

Life Insurance Shopping Tips:


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Your life insurance plan should be structured to meet your lifecircumstances. For example, a single person may need less life insurancethan a couple or a couple with children.

Life insurance is complicated. Utilize the services of trained insurance

professionals. Check with the Ohio Department of Insurance to ensure your agent and company are

licensed to do business in the state.

An agent is not allowed to be the beneficiary of a life insurance policythe agent has sold you, unless the agent is a family member or a funeraldirector.

An agent is not allowed to misrepresent any aspectof either the policybeing sold or a policy you already own. An agent is not allowed toencourage you to put incorrect information on your application.

Decide what type of policy you want: term life, whole life, universal lifeor a combination of these policy types. Be sure to calculate your total

premiums for the life of the policy. It is possible to pay more inpremiums than the face amount of the policy.

Some policies have an accelerated benefits feature. This provision letsthe policyholder, under certain conditions, to receive part of the death

benefit before he/she dies.

Be alert to any promise that you will, at some future point, never have topay premiums again. Also make sure youre aware of any surrender fee

you would owe in the event you cancel the contract. Dont sign any life insurance application that has not been completely

and accurately filled in and dated. Make a copy of the completedapplication for your files.

Make your premium payment check to the insurance company, not theagent.

Immediately study the policy once you receive it and make sure itsexactly what you ordered. Take advantage of the free-look (or right toreview) period most life companies offer. During this period you can

return the policy for a full refund. The policy owner is the only person who can cancel the policy. If

premium payments are not being made the insurer will generally send apayment notice before cancellation.

A failure to pay your premium will cause your policy to lapse or beterminated.

Review your policy periodically. Your insurance needs change duringdifferent periods of your life.

Do You Have the Right Life Insurance?


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Having adequate life insurance should be an important part of yourfinancial planning. The type(s) you choose will depend on your needsand goals.

Life insurance was established to provide funds at death to cover funeraland burial costs, pay final expenses and debts, provide an income fordependents (especially those with dependent children or a spouse), andleave a legacy for children and grandchildren. In addition, it provides ameans for tax-efficient savings.

Before we can explore the benefits of life insurance in more detail, it isnecessary to first understand the main types of policies and how theywork.

There are primarily two kinds of life insurance and you could have them

for different reasons. You may find that a combination of the two is thebest solution for your situation.

TERM LIFE INSURANCETerm insurance provides coverage for a set term which can either be based on anumber of years, such as one, five, ten or twenty years, or based on your agewhen the contract expires, such as when you turn 60.The premium you pay stays the same for the duration of the contract. The sum

insured is only payable if you die while the contract is in force. If you surviveto the end of the period, the policy is then worthless.At the end of the selected term, you can renew the contract for the same termwithout having to prove that you are still insurable. It gets more expensive asyou get older. The premium will increase and will be calculated based on yourage at the time of renewal. This increase can become expensive in later years.You may find the cost unaffordable as you get older. Also, some term policiesare not renewable after a certain age.Because you are buying a short term insurance policy, the cost is lower than

permanent life insurance. It is something to consider if you want to protect yourspouse and children at a low cost should something happen to you.You may also consider purchasing it as an alternative to mortgage insurance.When you purchase mortgage insurance, the benefit decreases over time as yourmortgage gets paid off. With term life insurance, the benefit remains the sameuntil the term expires.

PERMANENT LIFE INSURANCE


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Permanent life insurance provides protection for your life, not just for a specificterm. If your mortgage is paid off and your kids have grown up, you maywonder why you need permanent life insurance since you have no dependents.You may want to consider it because, in addition to paying a death benefit to

your beneficiary, there is also a cash value:

1. The cash values inside of your policy can be accessed to supplement yourretirement income through a policy loan, partial surrender or loan strategy, ifneeded.

2. Any money invested inside a permanent life insurance policy grows on a tax-deferred basis, within certain regulatory limits. This is especially attractive ifyou have maximized both your RRSP and Tax-Free Savings Account (TFSA)

contributions.

3. The cash values can be used to pay your estate taxes when you die so yourbeneficiaries wont have to pay the taxes on their inheritance. Keep in mind that

life insurance proceeds in provinces other than Quebec avoid probate and estatetaxes if they are made payable to a named beneficiary and not to your estate.

There are two kinds of permanent life insurance:

1. Whole life insurance policies have level and fixed premiums, usuallypayable for your entire lifetime, which cant be increased or decreased.The premium payments in the early years exceed the amount required soyou basically are overpaying in the early years to subsidise your lateryears. You have no investment decisions to make as you are providedwith guaranteed cash values.

There are two kinds of whole life insurance policies:

a. Participating policiesyou participate in the insurance companys profitsand the plan pays out a dividend which can provide an increasing cash valueand death benefit

b. Non-participating policies these policies are lower in cost and dont payout a dividend.


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2. Universal life insurance policies offer flexible premiums, a choice of level orincreasing death benefits, and the ability to take premium holidays if you wantto stop paying your premiums in the later years.

When a premium is paid, the money is deposited into an investment account,which you have investment control over. As such, you can end up with asignificant portfolio depending on the investment decisions you make. The costof your life insurance and administration are deducted from the investmentaccount.

3. Cash Value Life Insurance is a type of insurance where the premiumscharged are the higher at the beginning than they would be for the same amountof term insurance. The part of the premium that is not used for the cost of the

insurance is invested by the company and builds up a cash value that may beused in variety of ways. You may borrow against a policys cash value bytaking a policy loan. If you dont pay back the loan and the interest on it, the

amount you owe will be subtracted from the benefits when you die or from thecash value if you stop paying premiums and take out the remaining cash value.You can also use your cash value to keep insurance protection for a limited timeor to buy a reduced amount without having to pay more premiums. You canalso use the cash value to increase your income in retirement or to help pay forneeds such as a childs tuition without cancelling the policy. However, to build

up this cash value, you must pay premiums in the early years of the policy. Cash

value life insurance may be one of several types, whole life, universal life, andvariable life are all types of cash value insurance.

4. Variable Life Insurance is a kind of insurance where the death benefits andcash values depend on the investment performance of one or more separateaccounts which may be invested in mutual funds or other investments allowedunder the policy. Be sure to get the prospectus from the company when buyingthis kind of policy and study it carefully. You will have higher death benefitsand cash value if the underlying investments do well. Your death benefits and

cash value will be lower or may disappear if the investments you choose didntdo as well as you expected. You may pay an extra premium for a guaranteeddeath benefit.


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COST COMPARISON

As discussed, term life insurance costs less than permanent life insurance. Lets

compare the annual ranges of rates on a $100,000 policy among variousproviders for the two types of life insurance that are most commonly sold: TermLife and Whole Life.

Assumptions:Non-smoker in regular health in Ontario; as at November 2009(www.insurecan.com)

Note: a male who started a Whole Life policy at age 25 would pay the $386-$864 annual premium for as long as the policy was kept current (e.g. age 60 and

beyond) whereas the premium for a term life policy increases at the end of each

term as you get older, regardless of the age that you first get the policy

TERM LIFE

10 YEARS

TERM LIFE

20 YEARSWHOLE LIFE

AGE 25MALE $123- $166 $138- $218 $386- $864FEMALE $94 - $137 $115 - $218 $313 - $736

AGE 40MALE $150 - $298 $206 - $389 $723 - $1,525

FEMALE $127 - $244 $163 - $389 $586 - $1,231

AGE 60MALE $583 - $1,645 $1,213 - $2,074 $2,242 - $4,330

FEMALE $427 - $1,645 $823 - $1,973 $1,939 - $3,248


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IMPORTANCE OF HAVING LIFEINSURANCE

WHY DO WE NEED LIFEINSURANCE?

IS IT COMPULSORY FOR ALL? SPECIAL BENEFITS FOR CHILDREN, IF

ANY.

IMPORTANCE OF LIFE INSURANCE IN VARIOUS FIELDS:-


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IMPORTANCE OF LIFE INSURANCE IN ESTATE PLANNING:-

As part of the estate planning process, you may talk to any number ofadvisorsfrom lawyers, accountants and trust officers, to financial and

retirement planners. These advisors often provide not only valuable services,but also may be in the business of selling investments, annuities and insurance.You will need to evaluate carefully as you do your planning whether the

products offered to you are useful to you. Take life insurance, for instance. Atfirst glance, it may not seem to have a great bearing on how you will dispose ofyour assets. Yet, life insurance is very often an integral part of a well-thought-out estate plan.

WHY LIFE INSURANCE??

The proceeds of a life insurance policy can do much more than provide a largesum to your beneficiaries. Here is just a partial list of the benefits provided bymaking life insurance a part of your estate planning strategy

1 It provides immediate cash at death to pay funeral expenses, debts and finalincome taxes of the insured.

2The cash provided by the proceeds can be made available to pay estate taxesand, thus, avoid the forced sale of an asset.

3 Generally, life insurance proceeds payable to a named beneficiary pass tothat beneficiary free of income tax.

4 Proceeds from the policy provide a relatively low-cost source of funds thatcan be transferred to a trust created in the insured's will for the benefit of, forexample, minor children or elderly or handicapped relatives.

5 Life insurance proceeds payable to someone other than the insured's estatecan avoid passing through probate when the policy is owned by an irrevocableinsurance trust. For example, the funds may be used to satisfy marital settlementobligations for child or spousal support.

WHYYOUMAYNEEDL IFEINSURANCE ??


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The main reason many middle class families want life insurance is the need toprovide a substantial lump sum to replace lost income if a parent or breadwinnerdies.Young families are often carrying large mortgages and are meeting the expenses

of growing children. This is why it's important for them to choose a lifeinsurance product that provides the desired death benefits at a much lowercurrent cost, which is term life.By the time many adults reach their fifties, their children are usually grown,their mortgage will typically be substantially paid down so they now have agood deal of home equity, and they will have accumulated other retirementsavings. As such, the need for a substantial death benefit from a life insurance

policy is much less important in later life.So for many young couples, it makes sense to focus the bulk of their life

insurance on term life which is more cost-effective at that time of their lifewhen life insurance is the most important.If you are younger, you may find it confusing when an insurance agentrecommends whole life policies when an emphasis on term life would seem the

better choice. Be aware that insurance agents typically get much highercommissions for selling whole life products and those commissions often canhave an unfortunate influence on advice provided.

Foreign Direct Investment (FDI) Policy in Insurance

Sector:-

As per the current (March 2006) FDI norms, foreign participation in an Indianinsurance company is restricted to 26.0% of its equity / ordinary share capital.The Insurance Regulator has stipulated that foreign investment in IndianInsurance companies be limited to 26% of total equity issued (FDI limit) withthe balance being funded by Indian promoter entities. The limit to foreigninvestment includes both direct and indirect investment and has been a cause ofsignificant lobbying by foreign insurance companies for a change in regulationsto increase the FDI limit to 49% of equity issued.

The Indian government has supported an increase in the FDI limit, whichrequires a change in the Insurance Act. The Union Budget for fiscal 2005 hadrecommended that the ceiling on foreign holding be increased to 49.0%.

A change in the Insurance Act requires a passage of the bill in both houses ofParliament.


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PARTS OF AN INSURANCE CONTRACT:-

1.. Declarations - identifies who is an insured, the insured's address, theinsuring company, what risks or property are covered, the policy limits

(amount of insurance), any applicable deductibles, the policy period andpremium amount. These are usually provided on a form that is filled out bythe insurer based on the insured's application and attached on top of orinserted within the first few pages of the standard policy form.

2...Definitions - define important terms used in the policy language

3...Insuring agreement - describes the covered perils, or risks assumed, ornature of coverage, or makes some reference to the contractual agreement

between insurer and insured. It summarizes the major promises of theinsurance company, as well as stating what is covered.

4... Exclusions - take coverage away from the Insuring Agreement bydescribing property, perils, hazards or losses arising from specific causeswhich are not covered by the policy.

5... Conditions - provisions, rules of conduct, duties and obligationsrequired for coverage. If policy conditions are not met, the insurer can denythe claim.

6...Endorsements - additional forms attached to the policy form that modifyit in some way, either unconditionally or upon the existence of somecondition. Endorsements can make policies difficult to read for no lawyers;they may modify or delete clauses located several pages earlier in thestandard insuring agreement, or even modify each other. Because it is veryrisky to allow no lawyer underwriters to directly rewrite core policylanguage with word processors, insurers usually direct underwriters tomodify standard forms by attaching endorsements preapproved by counsel

for various common modifications.

7...Policy riders - A policy rider is used to convey the terms of a policyamendment and the amendment thereby become part of the policy. Ridersare dated and numbered so that both insurer and policyholder can determine

provisions and the benefit level. Common riders to group medical plansinvolve name changes, change to eligible classes of employees, change inlevel of benefits, or the addition of a managed care arrangement such as anHealth Maintenance Organization or Preferred Provider Organization (PPO).


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SEVERAL BENEFITS OF HAVING LIFE INSURANCE:-

A life insurance policy's primary purpose is to replace the income of a familybreadwinner in the event of his or her untimely demise. The typical example is a

family with two young children and a mortgage - if one of the parents were todie, the surviving spouse would likely find it impossible to maintain theircurrent standard of living.

But what about families with minimal debt and full grown children? Why wouldthey need or want life insurance. Could life insurance help in maximizingwealth? In many cases, yes. Life insurance has several benefits for maximizingwealth:

1. Life insurance is tax efficient: the proceeds from a life insurance policyare paid out tax free. Moreover the death benefit of certain Permanentpolicies - more specifically Participating Whole Life and Universal Lifepolicies - grow on a tax sheltered basis. They are paid out TAX FREE.The accumulation fund within a Universal Life policy or dividends withina Participating Whole Life policy can also be used to offset future

premiums, allowing these premiums to be offset with pre-tax dollarsrather than after tax dollars.

2. Life insurance is a risk free asset. Although the returns on life policiesare often compared to returns of a portfolio of stocks or equity basedmutual funds or exchanged traded funds, this is not a fair comparison.Returns on an equity based account have significant downside risk whilethe face amount on a life insurance policy are guaranteed. Even theaccumulation funds one can add to a Universal Life policy's death benefitare often guaranteed. RBC Insurance, Transamerica and Empire Life allhave minimum guarantees of 4% or higher on their Universal Lifeaccounts.

3. One downside to life insurance that can't be ignored is the moneycontributed to a straight investment account can be accessed while the

owner is alive, whereas the face amount on a life insurance policy is notpaid out until the insured is dead. On many Universal Life policies, eventhe accumulation fund may not be accessed until the policy has been inforce a certain number of years. Still, when stacking up the returns of aUniversal Life or Whole Life death benefit against other risk freeinvestments, they compare very favorably.
http://wiki.answers.com/Q/What_are_the_advantages_of_a_life_insurance&altQ=What_are_the_advantages_of_life_insurerancehttp://wiki.answers.com/Q/What_are_the_advantages_of_a_life_insurance&altQ=What_are_the_advantages_of_life_insurerance


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4. Life insurance is liquid. Another key advantage to life insurance is thatproceeds are paid immediately to policyholders beneficiaries and are notsubject to probate fees. Probate fees are highest in Ontario: on a$1,000,000 estate the probate fees would be $14,500. The liquidity of life

insurance is superb. When there is a significant tax liability from a familycottage or business, life insurance is exactly what you need to offset thoseliabilities and pass on an estate whole.

So life insurance remains an extremely valuable tool in the financial toolbox forestate planning, even later in life when your full mortgage is paid up and yourchildren have grown older.

IMPORTANT THINGS TO CONSIDER BEFORE CHOOSINGA POLICY:-

Review your own insurance needs and circumstances. Choose the kind ofpolicy that has benefits that most closely fit your needs. Ask an agent orcompany to help you.

Be sure that she can handle premium payments. Can you afford the initial

premium? If the premium increases later and you still need insurance, canyou still afford it?

Dont sign an insurance application until you review it carefully to besure all the answers are complete and accurate.

Dont buy life insurance unless you intend to stick with your plan. It maybe very costly if you quit during the early years of the policy.

Dont drop one policy and buy another one without a thorough study ofthe new policy and the one you have now. Replacing your policy may becostly.

Read your policy carefully. Ask your agent or company about anythingthat is not clear to you.

Review your life insurance program with your agent or company everyfew years to keep up with changes in your income and your needs.


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HOW MUCH DO WE NEED??

Here are some questions to ask yourself..

1... How much of the family income I do provide? If I were to die early,how would my survivors, especially my children, get by? Does anyoneelse depend on me financially, such as a parent, grandparent, brother andsister.

2... Do I have children for whom I would like to set aside money to finish

their education in the event of my death?

3... How will my family pay final expenses and repay debts after mydeath?

4... Do I have family members or organizations to whom I would like toleave money?

5... Will there be estate taxes to pay after my death?

6... How will inflation effect future needs?

WHAT IS THE RIGHT KIND OF LIFE INSURANCE???

All policies are not the same. Some give coverage for your lifetime andothers cover you for a specific number of years. Some build up cashvalues and others do not. Some policies combined different kinds ofinsurance and others let you change from one kind of insurance toanother. Some policies may offer other benefits while you are still living.Your choice should based on your needs and what you can afford.


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LIFE INSURANCE ILLUSTRATIONS:-

You may be thinking of buying a policy where cash values, death

benefits, dividends or premiums may vary based on events or situationsthe company does not guarantee. If so, you may get an illustration fromthe agent or company that helps explain how the policy works. Theillustration will show how the benefits that are not guaranteed will changeinterest rates and other factors change. The illustration will show youwhat the company guarantees. It will also show you that what couldhappen in the future.

REASONS FOR OBTAINING LIFE INSURANCE

There can be many reasons for purchasing life insurance. Certain reasonsare more prevalent at one life stage than another

GOAL Early career20 to 35

years old

Family25 to 55 years

old

Established35 to 55 years

old

At or nearretirement

Provide resources foryour childrens and/orgrandchildrens future

Ensure your spouseslifestyle is protected

Cover a mortgage orother loan

Finance a businessopportunity, a sabbaticalor retirement

Provide a tax-

advantaged cash valuecomponent that can beused to help meet futurefinancial needs oropportunities

Provide a tax-effectiveway to supplementretirement income foryou and your spouse

Plan for long term careneeds in the future


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CHAPTER-3. Hilliard Lyons and its Financial Consultants (FCs) understand that lifeinsurance isan important risk management tool that should only be placed when it isappropriate tothe planning needs and desires of a client. They believe that the selection of lifeinsurancecompanies and products should be as objective as possible.To help ensure that its clients get the highest level of competency in the

placement ofinsurance products, Hilliard Lyons partnered with three of the most respectedestate

planning attorneys in the United States, Robert A. Esperti, Renno L. Peterson,andDavid K. Cahoone (EPC), to help develop a unique process, called the EPCMethod.The EPC Method helps Hilliard Lyons FCs to identify real wealth and estate

planning

needs and provide an objective method of placing the proper life insurance tomeetthose needs.Extensive training is necessary to fully master the EPC Method. This training,whichEsperti, Peterson, and Cahoone taught, was limited to a carefully selected groupof 30of the most competent and productive Hilliard Lyons FCs and members of theirteams.

The training included 72 hours of classroom sessions spread over a six monthperiod thatcovered an ambitious agenda designed to give participants hands-on experiencein the useof life and long-term care insurance. The top management of Hilliard Lyons,includingits CEO and other high level executives, attended the training. They wanted todemonstrate the top-down commitment that Hilliard Lyons has made to thehighest

professional standards in the placement of insurance.


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need people to carry out the organizational mission, goals and objectives. Everyorganization needs to recruit people. The recruitment policy should, therefore,address itself to the key questions, what are the personnel/human resourcerequirement of the organization in terms of number, skills, levels, etc. to meet

present and future needs of production and technical and other changes plannedor anticipated in the next year.

ISSUES IN RECRUITMENT AND SELECTION Do not discard applicants who stopped out to provide care for a

child, or for maternity leave. Consider the dynamics of the interview- is the candidate being

interviewed in an environment i.e., representative of the officeenvironment.

Understand question that cannot be asked regarding family,children, pregnancy, etc.

Provide medical insurance that covers the full range of medicalneeds of women employees, including reproductive health care.

Provide paid sick leave policies for employees illness and illnessof spouse lifetime partner, dependent children and elderly parents.

Provide life insurance, disability and pension programs that arenon-discriminatory on the basis of gender.

Have clear and vigorously enforced sex, race and sexualorientation, discrimination and sexual harassment policies andinclude a statement about these policies in the advertisement of the

positions.

FIVE AREAS CRITICAL TO THIS PROCESS

1.. Open communication.

2.. A commitment to creating an inclusive environment.

3.. Clear pre-conceived expectations based on gender.


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4.. A neutral supervisor who can observe different styles andfacilitated communication when a conflict arises.

5.. Training- sexual harassment as well as gender issues training.

It is thought that 75%- 80% of sexual harassment complaintscould be prevented by understanding gender differences.

FACTORS AFFECTING RECRUITMENT

In recruiting new employees management must consider the nature of labormarket, what sort of potential labor are available and how do look for works.

The factors affecting can be summed up under the following heads:

Labor Market Boundaries:- The knowledge of the boundaries helpmanagement in estimating the available supply of qualified personnelform, which it might recruit. A labor market consists of a geographicalarea in which the forces of demand and supply interact and thus affect the

price of labor.

Available skills:- Companies must locate the areas where they can findemployees who fit the jobs according to their skills.

Economic Condition:- Economic conditions also affect recruitment.Unemployment worker may swamp a new plan located in a depressedlabor market whereas a firm trying to establish it or to expand in an areawhere a few qualified workers are out of work has quite a differentrecruitment problem.

Attractiveness of the Company:- The attractiveness of the company interms of higher wages, clean work, better fringe benefits and rapid

promotions serves as influencing factor in recruitment.

IMPORTANCE OF RECRUITMENT

Recruitment of the people who are wrong for the organization and lowering of

morale in the existing workforce. Such people are likely to be discontented,


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unlikely to give their best, and end up leaving voluntarily or involuntarily whentheir unsuitability becomes evident. They will not offer the flexibility andcommitment that many organizations seek. Managers and supervisors will haveto spend extra time on further recruitment exercises, when what is needed in the

first place is a systematic process to access the role to be filled, and the type ofskills and most recruitment systems will be simple, with stages that can befollowed as a routine whenever there is a vacancy to be filled, and which can bemonitored and adapted in the light of experience.

RECRUITMENT PROCEDURE

A vacancy presents an opportunity to consider restructuring, or to reassess the

requirements of the job. This assessment is valid whether it is to fill an existingjob or a new one.

ASK QUESTIONS SUCH AS---

Has the function changed? Have work patterns, new technology or new products altered the job? Are there any changes anticipated which will require different, more

flexible skills from the jobholder?

Answer to these questions should help to clarify the actual requirementsof the job and how it is fits into the rest of the organization or department.Exit interviews or consultation with the current job-holder and colleaguesmay well produced good ideas about useful changes.

Recruitment begins by specifying the human resource requirement,initiating activities and action to identify the possible sources from wherethey can be met, communicating the information about the jobs, terms

and conditions and prospects they offer, and enthuse the people who meetthe requirement to respond to the invitation by applying for jobs.Thereafter selection process begins. The process is as follows:-

Decide On How Many People You Really Need

If everything is being done to improve performance and still there is agap between what the current performance is and the goals set, then the

best way is to recruit more people.


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For evaluation future needs manpower is drafting. A manpowerplan evolves studying the make-up of present work force,assessing forth coming changes and calculating future work

force, which is required. Manpower planning helps devisinglong-term recruitment plans.

Finding sources of recruitment

The human resource requirement can be met from internal or externalsources:

INTERNAL SOURCES

These refer to persons already employed in the organization. Promotingpersons from lower levels may fill up vacancies at higher levels. Shortageof manpower in one branch/factory may be met by transferring surplusstaff from another branch/factory. Promotion means shifting of anemployee to higher post carrying greater salary, status and responsibility.

On the other hand transfer refer to the shifting an employee with salary,status and responsibility. Some time ex-employee of the organization may

be re-employed.

ADVANTAGES OF INTERNAL SOURCES

1.Filling vacancies for higher jobs by promoting employees fromwithin the organization helps to motivate and improve the moral ofthe employees. This induces loyalty among them.

2.Internal requirement has to minimize labor turn over andabsenteeism. People wait for promotion and the work force is moresatisfied.

3.Candidates working in organization do not require inductiontraining. They are already familiar with organization and with the

people working in it.

DI SADVANTAGES OF INTERNAL SOURCES


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CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION


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30% people said that the company specifies 0-2 years for

making estimation of forecasting. 20% people said that the company specifies 2-3 years for

making estimation. 30% people said that the company specifies 3-4 years for

making the estimation for forecasting. 20% people said that the company specifies 4 and above years

for making forecasting.

2.Does your organization plan the recruitment policy?

Sl No Opinion No of Respondent Percentage1 Yes 30 100%

2 No 0 0%


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100% people said that they plan the recruitment policy

3.What do you suggest should be the basis of forecasting?

Sl No Opinion No of Respondent Percentage1 Total cost of the

project6 20%

2 Past experience 12 40%

3 Different phases ofthe project

9 30%

4 All of the above 3 10%

Written Recruitment Policy

no

yes


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4 Internet 12 40%

5 Any Other 3 10%

20% people said that the company uses the employee exchangeconsultant.

20% people said that the company uses the private employeeagency.10% people said that the company uses the advertisement

method.40% people said that the company uses the internet method.10% people said that the company uses any other way.

7. Does your organization recruit employees through latest methodsof recruitment through internet?

Sl No Opinion No of Respondent Percentage1 Yes 30 100%

2 No 0 0%

External Sources

Employee Exchange Consultant

Private Employee Agency

Advertisement

Internet

Any Other


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90% people said that the company uses its own website forrecruitment.

10% people said that the company do not use its own website.

9. How much number of employees you train in a year?

Sl No Opinion No of Respondent Percentage1 5-10 emp 0 0%

2 10-15 emp 6 20%

Use Own Website

Yes

No


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QUESTIONNAIRE

QUESTIONNAIRE

SURVEY ON THE MANAGERIAL SATISFACTION LEVEL OFRECRUITMENT OF INSURANCE ADVISORS

Dear Respondent,


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We are conducting a survey on the managerial satisfaction levelforthe recruitment procedure of the insurance advisors.Your free and frank opinion would be very valuable inconducting the survey. Please answer the following questionswith (YES) in the appropriate boxes.

MANPOWER PLANNING:

1. If yes, then please specify the time period(s) for which theestimates are made?(a) 0-2 years (b) 2-3 years(b) 3-4 years (d) 4 & above years

RECRUITMENT POLICY:

2.Does your organization plan the recruitment policy?(a) Yes (b) No

3.What do you suggest should be the basis of forecasting?

(a) Total cost of project (b) Past experience(b) Different phases of project (d) All of the above

4.Do you think the present recruitment policy is helpful inachieving the goals of the company?(a) Yes (b) No(b) To some extent

SOURCES OF RECRUITMENT

5.Through which source your organizations recruit theemployees?

(a) Internally (b) Externally


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The organization follows the rules and regulations involved in theirrecruitment and selection procedure of the organization. However,there are some scope for improvement with regard to following.

1.. The managers are fully satisfied with the existing recruitmentprocedure.

2.. The recruitment procedure should not be lengthy.

3.. To some extent a clear picture of required candidates should bemade in order to search for appropriate candidates.

4.. The recruitment procedure should be impartial.

BIBLIOGRAPHY


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Personal management by K.V. Mishra, Aditya publishing house,Madras, 1992

CHHABRA T.N. Principles and practices of management,Dhanpat Rai and co. (p) ltd., Delhi 2000

Practice of Human Resource by Danny Sheild

Manuals from the Bank

www.inglife.co.in

megha life insurance basics (1)

Documents