A Study To Develop An Ideal Recruitment Mix For A Fpa Sales Force

A STUDY TO DEVELOP AN IDEAL RECRUITMENT MIX FOR A FPA SALES FORCE
A PROJECT REPORT ON
A STUDY TO DEVELOP AN IDEAL RECRUITMENT MIX FOR A FPA SALES

FORCE
Submitted To: Submitted By:

Dr. Neetu Jain Arpita Srivastava
Faculty (HR) 0451593905
RDIAS MBA (2005-07)
Rukmini Devi Institute of Advanced Studies

Rohini New Delhi-110085
Guru Gobind Singh Indraprastha University

(University Established by Government of NCT of Delhi)
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Acknowledgement
Executive summary
Objectives of study
.Anil Dhirubhai Ambani Enterprises Group of Companies
Major group constituents
New Logo
Founder
Anil Ambani – Chairman
About Reliance Life Insurance

Products of the Company
Individual Products
Group Products
Future plans
Life Insurance in India
History
Reforms
Current Scenario of the Insurance Industry in India
Industry News
Conclusion
Governance code for Indian Insurance Industry
Project
Profile
Research Methodology
Observation
Analysis, Findings & Interpretation
Suggestions & Recommendation
EXHIBITS
BIBLIOGRAPHY
2
A Project is never the accomplishment of an individual. Rather, it is an

amalgamation of the efforts, ideas and cooperation of a number of people.
The compilation and presentation of this project has bestowed me with an
opportunity to thank God and show my gratitude to all the people who supported
me throughout this project.
My Sincere thanks to Mr. Tripthi N Rajan, Branch Manager, Kodungallur,

Thrissur, for giving me the opportunity to work and learn in the organization.
I am grateful to Mrs. A.Saritha, Sales Manager who has been the hallmark of this
effort I thank him for the continuous support and mentoring throughout this
project.
I would also like to thank the staffs at Thrissur Branch, for their support and
direction all through the project.
I am thankful to Mr.Subakaran, guide and faculty at Holy Grace Academy of

Management Studies, Mala for his heartfelt support and guidance. I extend my
thanks to Shajahan, Director and the entire faculty at Holy Grace Academy Of
Management Studies for their support in successfully completing the project.
At last but not the least I would like to thank, my parents, whose blessings,
inspiration and encouragement have resulted in the successful completion of this
project.
NEETHU. S
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Reliance Group founded by Dhirubhai H. Ambani is India's largest business

house with total revenues of over Rs 99,000 crore. The Group's activities include
exploration and production of oil and gas, refining and marketing,
petrochemicals, polymers, textiles, financial services and insurance, power,
telecom and infocomm initiatives. The Group exports its products to more than
100 countries world over.
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd which
is one of India’s leading private sector financial services companies and the
financial arm of Anil Dhirubhai Ambani Group. The company was officially
launched on 1st February 2006 after acquiring 100 percent stake in AMP
Sanmar.
The company realized its need for financial Planning advisors to carry out the
business and decided to recruit professionals for this purpose. The idea was to
use the contacts of these professionals to explore the market. Questionnaire was
prepared to identify the interested professionals and then recruit them as
financial advisors. Telephonic calls were made to fix an appointment with these
professionals.
To get the real taste of work undertaken by the financial advisors another
questionnaire was prepared to identify the potential customers who were ready
to invest in the company. Personal meeting and telephonic conversations were
required for the same and training was given in these areas.
Reliance Life Insurance has plans to open up as much as 162 branches across
the country and capture the untapped market mainly in the rural and semi-urban
areas. Recommendations are given at the end of the report which I feel will help
the company to perform better in its future operations.
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ANIL DHIRUBHAI AMBANI ENTERPRISES GROUP OF COMPANIES
Reliance - Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group

founded by Shri Dhirubhai H. Ambani (1932-2002), ranks among India’s top
three private sector business houses in terms of net worth. The group has
business interests that range from telecommunications (Reliance
Communications Ventures Ltd.) to financial services (Reliance Capital Ltd.) to
the generation and distribution of power (Reliance Energy Ltd.)
Reliance – ADA Group’s flagship company, Reliance Communications, is India's

largest private sector information and Communications Company with over 20
million subscribers. The company has established a pan-India, high-capacity,
integrated (wireless and wire line), convergent (voice, data and video) digital
network, to offer services spanning the entire infocomm value chain.
Major group constituents:

The Anil Dhirubhai Ambani Enterprises (ADAE) group has decided to call for
separate creative and media pitches for all its companies, which include Reliance
Infocomm, Reliance Capital and Reliance Energy. Confirming the development
to agencyfaqs1, sources at ADAE said, “We will call the agencies for a
presentation very soon.”
The company declined to comment on the size of the business, saying that “it
would be one among the top three spenders in India and that they spend would
be higher than that of FMCG companies”. But industry sources estimate the size
of the business to be more than Rs 100 crore.
At present, the entire Reliance Group is handled by three agencies, Mudra,

Saatchi & Saatchi and Ambience Publicis2. After the split between the Ambani
brothers, the ADAE group, led by Anil Ambani, is working on a massive project to
overhaul its branding and communication strategies in a bid to shed Reliance’s
image as an industrial house and become more consumer-centric.
1
Frequently asked questions
2
Advertising agencies
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The ADAE group currently consists of Reliance Infocomm, Reliance Capital and
Reliance Energy. While Mudra handles the Reliance Capital and Reliance
Energy businesses, Saatchi & Saatchi and Ambience Publicis work on Reliance
Infocomm. Ambience Publicis takes care of the corporate account of Reliance
Infocomm, while pre-paid and post-paid are handled by Saatchi & Saatchi.
According to company sources, Mudra will not be hit much since it handles just
about 5-10 per cent of the ADAE group business.
The group has already hired additional creative talents to take care of its various
customer-facing businesses. Former Lever man and head, marketing, Nokia,
Sanjay Behl has been given the portfolio of head, branding, Reliance Infocomm.
In addition, Nalini Gupta has been roped in as marketing advisor, and Ajay Kakar
as head of branding, Reliance Capital.
New logo for Anil Ambani group
The Anil Dhirubhai Ambani Group has developed a new group logo after having
worked on it for almost nine months. According to company sources, the logo
consists of the word Reliance in capital letters in an entirely new font along with
the lineage - Anil Dhirubhai Ambani Group. A combination of blue and red
colours is meant to convey solidity and the alphabet `A' in the Reliance name
has been converted into two arrows arching upwards.
The new logo had to reflect the group's business interests from
telecommunications to entertainment, urban infrastructure to financial services,
and energy to a new area such as healthcare. The need, therefore, was to
evolve a logo that did not reflect any specific product category.
• Mission statement:
“Our mission is to be a leading and
preferred service provider to our
customers, and we aim to achieve this
leadership position by building an
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innovative, enterprising , and technology

driven organization which will set the
highest standards of service and business
ethics.”
Anil Dhirubhai Ambani - Chairman
Regarded as one of the foremost corporate leaders of contemporary India, Shri

Anil D Ambani, is the chairman of all listed companies of the Reliance ADA
Group, namely, Reliance Communications, Reliance Capital, Reliance Energy,
Reliance Natural Resources and Reliance Power. He is also Chairman of the
Board of Governors of Dhirubhai Ambani Institute of Information and
Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held
the post of Vice Chairman and Managing Director in Reliance Industries Limited
(RIL), India's largest private sector enterprise. Anil D Ambani joined Reliance in
1983 as Co-Chief Executive Officer, and was centrally involved in every aspect
of the company's management over the next 22 years. He is credited with having
pioneered a number of path-breaking financial innovations in the Indian capital
markets. He spearheaded the country's first forays into the overseas capital
markets with international public offerings of global depositary receipts,
convertibles and bonds. Starting in 1991, he directed Reliance Industries in its
efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond
issue for the company in January 1997.
Amitabh Jhunjhunwala - Vice-Chairman
Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered Accountant. He has

vast experience in the areas of financial services and capital markets. Shri
Jhunjhunwala was appointed to the Board on March 7, 2003 and was appointed
Vice Chairman on March 20, 2006. He is a Director on the Board of Harmony Art
Foundation and Reliance Anil Dhirubhai Ambani Group Pvt. Ltd.
Rajendra Chitale - Independent Director
Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is the Managing

Partner of M/s M. P. Chitale & Associates. He is a Director on boards of the
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National Securities Clearing Corporation Limited, Asset Reconstruction Company

(India) Ltd, Hinduja TMT Limited, HTMT Global Solutions Ltd, Ambuja Cement
Limited, SME Rating Agency of India Limited, Ishan Real Estate PLC and
Reliance General Insurance Company Ltd. He is also a member of the advisory
board of the Insurance and Regulatory Authority of India (IRDA). He has also
served on the boards of Life Insurance Corporation of India, Unit Trust of India,
SBI Capital Markets Ltd., National Stock Exchange of India Ltd. and Small
Industries Development Bank of India.
Shri C. P. Jain
Shri C.P. Jain, 61, is the former Chairman and Managing Director of NTPC Ltd.
(National Thermal Power Corporation). Shri Jain has an illustrious career
spanning over four decades of contribution in the fields of financial management,
general management, strategic management and business leadership. He is a
fellow member of the Institute of Chartered Accountants of India with an
advanced diploma in Management and is a law graduate. Shri C. P. Jain joined
the Board of NTPC in 1993 as Director (Finance), was elevated as Chairman &
Managing Director in September 2000 and superannuated in March 2006. He is
Chairman of the Global Studies Committee of World Energy Council (WEC),
world's largest energy NGO with nearly hundred member-nations. He has been
on several important committees of the Government of India, latest being the
'Adhoc Group of Experts on Empowerment of CPSEs'. He was Chairman of
Standing Conference of Public Enterprises (SCOPE) between April 2003 and
March 2005. He is a Director on the Board of IL & FS Infrastructure Development
Corporation and, is also a member of the Audit Advisory Board of the
Comptroller and Audit General of India.
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9
Reliance Capital
10
Reliance
Reliance Reliance Reliance Reliance
Life Insurance Consumer
Mutual fund General Insurance Money
Finance
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• Reliance Life Insurance
• Demat Account Services
• Reliance Mutual Funds
• Reliance General Insurance
Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is
India's fastest growing life insurance company and among the top 4 private
sector life insurers.
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Reliance Life Insurance has a pan India presence and a range of products
catering to individual as well as corporate needs. Reliance Life Insurance has
over 700 branches and 1, 80,000 agents. It offers 26 products covering savings,
protection & investment requirements. Reliance Life Insurance will endeavor to
attain a leadership position in the market over the next few years, by further
expanding and strengthening its distribution network and offering a diverse array
of products to suit the varied and specific needs of individual customers.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer
fully integrated financial services.
Reliance Life Insurance is another step forward for Reliance Capital Limited to
offer need based Life Insurance solutions to individuals and Corporates.
Reliance Capital Limited (RCL) announced the launch of its life insurance
business on February 1, 2006. This was after obtaining the required regulatory
approvals from the Registrar of Companies and the Insurance Regulatory and
Development Authority.
It was on August 2005 that the ball was set rolling when RCL, the financial arm of
Reliance - Anil Dhirubhai Ambani Group (ADAG) - announced the acquisition of
100 percent share holding in AMP Sanmar Life Insurance Co Ltd; and formal
transfer of shares took place in October 2005. The company will issue all policy
contracts under the Reliance Life Insurance Company Limited name. All the
existing policy contracts also stand transferred to the Reliance Life Insurance
entity with all original contractual terms and commitments intact3.
What is Life Insurance?
An amount of money paid to someone (called beneficiary) when the Life Assured
(in whose name the insurance policy is taken) dies. This amount can be used to
3
Not broken
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pay the expenses related to Life assureds death or can be invested to generate
income that will replace your salary. Life Insurance is an important tool in any
investors portfolio & can be used for - wealth creation, asset building, provide for
contingencies and retirement planning.
The main reason to buy Life Insurance is to

provide income replacement for your loved
Types of Life Insurance Policies
• Most Insurance policies are a combination of Savings & Protection.
• Products are formulated by either increasing or decreasing either one of
these components.
• These combinations can be broadly divided into 4 groups
- ULIPs
- Term Insurance
- Endowment Policies : Whole Life; Unit Linked etc
- Annuities & Pension
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Life Stage in Life Insurance
Peak earning age

range. High asset
creation & build up
of liabilities. Critical
stage for
Introduction of dependents Asset base build
dependents. Start up & liabilities
of financial reduced/ taken
planning – balance care of. Need for
between asset retirement
creation & planning more
protection than protection.
No dependents/ Need for

liabilities protection low.
therefore need Greater need for
for insurance is regular income
less flow.
25-30
Marrie 30-45 years 45 yrs and
d Couples with above
couple children Matured
18-25
(Unmarrie s with couple Retire
d) no kids d
Need Analysis in life Stages

Endowment / ULIP’s Endowment / ULIP’s +
Term Annuities
INSURANCE SUGGESTED
AGE STATUS
At each stage, requirements, NEEDS PRODUCTS
responsibilities and Financial
needs differ
1.Go on a holiday Short Term

18yrs - 25yrs Unmarried
2.Buy a new Car Endowment Product
3.Set up a new
house
4.Set up Interiors
5.Buy jewellery
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1.High Debt, high

expenditure Phase Temporary term or
25yrs -30yrs Married
2.Family whole life Product
dependency on
your income
3.Low accumulated
wealth
4.Need for Planning
Requirement
1.Retirement Profits or Unit Linked

30yrs - 45yrs Matured couple
Planning Endowment/
2.Wealth transfer or Deferred annuities
saving vehicles
3.Returns on
investment
4.Opting for
guaranteed Product
1.Single Premium
1.Protection in case annuities
60yrs and Post Retirement
you live long 2.Long term care
above
2.Protection for products
spouse in case of 3.Whole life products
death
3.Wealth
accumulation for
children
Ter
Endowme m
nt
Life Stage Example Annuitie

s
Hello, I am Philip, sailor.

Have seen the world.
Always on cruise and keep
worrying about family and
the loans. I need financial
Savera has just Protection if I do not return
come to our lives. As from one voyage
Worked for almost
proud parents, We 25 years, now want
need to protect her to live…
live…. I want
as well as create her something that will
own financial make my life Chinta-
standing free after
16 retirement…
retirement….
Products of Life Insurance
Life Insurance products are usually referred to as ‘plans’ of insurance. These

plans have two basic elements; one is the “Death Cover” providing for the
benefits being paid on the death of the insured person within a specified period.
The other is the “Survival Benefit” providing for the benefit being paid on survival
of a specified period.
• Plans of insurance that provide only death cover are called “Term
Assurance” Plans.
• Plans of insurance that provide only survival benefits are called “Pure
Endowment” Plans.
Term Life Insurance

Term Life Insurance provides protection for a specified period of time. A death
benefit is paid to the beneficiary if the insured dies within a specified period of
time while the policy is still in force.
Whole Life Insurance

Whole Life insurance is a permanent life insurance and provides protection for
life. As long as premiums are paid, a death benefit is paid to the beneficiary.
ULIPs
A ULIP is a life insurance which provides a combination of Life Insurance
protection and investment. Money can be invested in the following fund:- Equity
Fund, Debt Fund, Money Market Fund (Liquid Fund) and Balance Fund.
Annuities
Annuities are practically the same as pension. Pension provides periodical
payments to the employees, who have retired. They are paid as long as the
recipient is alive. Annuities are called the “reverse” of Life Insurance.
Solutions for Individuals - RGI
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Taking time out from your daily schedule to plan your future is a necessary task.
You could do with some help, but who can help you? Reliance Life Insurance is
here with Solutions for Individuals, a series of plans that will help you make wise
investments, protect your family, secure your child’s future and even chalk out a
plan for your retirement.
Protection Plans
Protect your family even when you’re not around by investing in Reliance
Protection Plans. Choose a limited period plan or a lifetime protection plan
depending on your needs. The latest Protection Plans are as below
1. Reliance Term plan

2. Reliance Simple Term plan
3. Reliance Special Term plan
4. Reliance Credit Guardian plan
5. Reliance Special Credit Guardian plan
6. Reliance Endowment plan
7. Reliance Special Endowment plan
8. Reliance Connect 2 Life plan
9. Reliance Whole Life plan
10. Reliance Wealth + Health plan
11. Reliance Cash Flow plan
Savings & Investment Plans

Reliance Savings & Investment Plans help you to set aside some money to
achieve specific goals in life, which means that you can enjoy life and provide for
your family’s daily needs. The savings and investment Plans are as below
1. Reliance Total Investment Plan Series I - Insurance

3. Reliance Automatic Investment plan
4. Reliance Money Guarantee plan
5. Reliance Cash Flow plan
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6. Reliance Market Return plan

7. Reliance Endowment plan
8. Reliance Special Endowment plan
9. Reliance Whole Life plan
10. Reliance Golden Years Plan
11. Reliance Golden Years Plan Value
12. Reliance Golden Years Plan Plus
13. Reliance Connect 2 Life plan
Retirement Plans
Invest today in Reliance Retirement Plans and save money to enjoy life even
after retirement. You will never have to depend on another person or make any
compromises to maintain your current lifestyle. The latest Retirement Plans are
as below
1. Reliance Total Investment Plan Series II – Pension

2. Reliance Golden Years Plan
3. Reliance Golden Years Plan Value
4. Reliance Golden Years Plan Plus
6. Reliance Automatic Investment Plan
7. Reliance Money Guarantee Plan
Child Plans
Save systematically and secure your child’s future needs by investing in Reliance
Child Plans. You can always be there for your child when he or she needs you.
The Childs plans are as below…
1. Reliance Child plan
2. Reliance Secure Child plan
Market Return Plan

Under This plan the investment risk in the investment portfolio is borne by the
policyholder.
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Reliance Endowment Plan: Reliance Life Insurance’s Reliance Endowment Plan

is the key to all financial needs of the customers. It is an inexpensive and easy
way to protect the customer, his family or his business.
In a nutshell this plan will keep the customer financially prepared for all the
special occasions in his life - daughter’s wedding, child’s university education or
even a new office for business - by eliminating the burden that a shortage of
money creates.
In the event of untimely death, Reliance Endowment Plan will also assist the
loved ones of the customer through this difficult time by the financial support that
it provides. Reliance Endowment Plan also gives the additional benefit of
participating in the company’s profits, which the customer will receive at the end
of the policy period.
Reliance Special Endowment Plan: This insurance policy is designed for people
who wish to combine savings with extended security. The unique feature of this
policy is that life protection continues for five years after the customer have
stopped the payment of premium. Payment of sum assured at the end of
premium paying term and extension of life cover thereafter for the full sum
assured for a period of 5 years, are characteristics of the policy.
This plan also participates in the profits.
Reliance Cash Flow Plan:

This insurance policy is designed for those who have a recurring need for
reinvestment in business or look for short-term investment channels. The
advantage of the policy is that they need not part with a sizable amount of money
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at any one time, but create, through regular premium payments, a periodic return
of lump sums which become available for reinvestment at higher returns, while
providing simultaneously, substantial life cover.
Alternatively, it can be used to meet any immediate financial crisis in the family
like son’s college admission, daughter's engagement, and renovation of home or
perhaps, a holiday abroad.
The money is payable in installments. The first installment is paid at the end of
the 4th year and thereafter at the end of every 3rd year.
Reliance Child Plan:

This insurance policy is designed for people who wish to save money for a future
time when there will be a recurring need for substantial amounts of money. This
is especially true when it comes to paying large sums of money for higher
education as and when the customer’s son or daughter is studying to become an
Engineer, a Doctor or specialise in some other field, or is perhaps planning to go
abroad.
This money is payable in equal installments over the last 4 years of the policy
term.
Reliance Term Plan:

This insurance policy is designed for those who only want life cover for the
protection of their family, and do not wish to save for themselves. It can also be
useful to business firms that wish to provide financial security to their business
against the sudden loss of partners or valuable manpower. Since there is no
saving element or bonus provision, the premium is very low. Hence, this is a high
risk plan with a low premium
Reliance Whole Life Plan:

This insurance policy is designed for people who do not wish to avail of any
benefits themselves but wish to create an immediate estate to protect their family
by availing of insurance cover on their life at a very low cost.
Reliance Market Return Plan:

The course of a customer’s life can change with time. But then, it is still his life.
What he/she need is a sound financial plan to take care of his/her investment
needs and a sound insurance plan to cover life risks. How about tossing a coin
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that gives heads on both sides! They could look for a single plan that takes care
of investment and insurance needs.
Good returns from a sound investment and the security of life cover with one
basic investment plan, is the most cost effective and profitable financial solution.
A unit-linked insurance plan helps you invest your money in various investment
funds and enjoy investment benefits and insurance benefits at the same time.
Money is precious. The worth of money depends on how the customer makes it
grow, how he makes the most of market conditions. To get the best returns he
can invest in bank deposits, bonds, shares and other investment instruments.
While fixed income investment instruments provide him with security, this income
is still susceptible to fluctuations in inflation. To maximise the returns, in the long
term perspective, he cannot ignore the high returns and buffer from inflation that
the equity market offers. One has to balance the security offered by fixed income
securities and the high returns offered by the equity markets. A sound investment
plan has to provide with options to protect the customer from market risks and
the effects of inflation. Does he/she have the expertise to do so? Experienced
fund managers in the company, provide you with this expertise and the logistics
to guide the customer through the changing world of the money markets and
help them reap better returns in the future. With added insurance cover, the
customer has a coin that tosses-up head both ways- that is Reliance Market
Return Fund.
Reliance Market Return Fund is the unit-linked product that helps the customer
to invest in the financial markets in a combination of investment instruments of
his/her choice. The customer can enjoy the returns from the markets without the
trouble of monitoring and managing their own investment portfolio and keeping
track of the market movements. At the same time their investment premiums
provide them with insurance cover. Reliance Market Return Fund unit-linked
insurance plan provides the customer with a basket of fund options that balances
their return and risk exposure while providing life cover at the same time.
Reliance Market Return Fund is a unit-linked investment plan that invests

premiums in a variety of investment instruments. The customer’s premiums,
regular or one-time, are invested in the different types of funds after deducting
charges (refer section on charges under ‘Your Unit Account'). The amounts they
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invest are expressed in units. Based on the performance of the funds, the value
of the units will vary. Reliance Market Return Fund provides the customer with
the option to combine returns from fixed income investments and participate in
the equity markets so that the customer can maximise the returns from their
investments. They can choose from the different fund options that the company
offer in the way they best desire. At the same time, in line with the premiums that
they pay, they can specify a sum for insurance and enjoy the benefits of life
insurance cover. Reliance Market Return Fund is a two-in-one insurance and
investment plan that provides the customer returns and life cover.
Reliance Golden Years Plan:

Reliance Golden Years Plan is a flexible package that provides freedom of
choice in choosing the type of investment, life cover, vesting options such as
commuting and annuity options. Contributions provide Income tax savings as
well.
The plan is quite simple. Contributions are made to the Reliance Golden Years
Plan pension plan. The contributions may be a lump sum or on a regular basis
like monthly, quarterly, half yearly and annual. The funds the customer
contributes are invested in any of the investment options offered to you, after
deduction of nominal charges. At the time of vesting (i.e. the time when you
decide to opt for receiving the annuity) a choice of annuity plans are available.
Additionally, the customer can opt for life insurance cover under the Reliance
Golden Years Plan, at a nominal cost. This life insurance cover offer is available
only for regular contribution of funds for investment. The additional features of
the Reliance Golden Years Plan are the commuting options available upon
vesting. Furthermore, the scheme also provides 5 choices of annuity payments.
The Reliance Golden Years Plan also offers accident benefit with decreasing
sum assured.
From each contribution received, a certain portion of the premium is deducted

towards expenses and for the life risk cover chosen. The balance will be invested
in a fund of customer’s choice. Their contributions will be accumulating in the
fund chosen at a rate of interest computed monthly. The accumulated funds will
be the account balance. The account balance statement will be sent at the end of
the policy anniversary year.
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At the time of vesting, a portion can be commuted and the balance can be used
for purchase of pension.
Reliance Group Term Assurance Policy:

Reliance Group Term Assurance Policy is a one year Renewable Term
Assurance contract. The benefit is payable on the happening of the contingency
during one year. At the end of the year, the contract may be renewed. Employers
looking for a comprehensive professionally administered term assurance cover
for their employees. Subject to approval by the Provident Fund Commissioner,
this Policy can be used as a replacement for the Employees Deposit Linked
Insurance Scheme under the Provident Fund Act. A payment is made on the
death of an employee. Cover can be:
• Fixed multiple of salary
• % of salary for each year of future service to normal retirement date
• Fixed Rupee amount
• Fixed Age-related scale
• Formula based on designation / rank of employees in the group
If an employee becomes disabled, as defined by the company, then the benefit
above is accelerated and paid out in 5 equal annual installments. No further
benefit is payable subsequently. No benefits are payable on survival to the end
of the year.
Reliance EDLI Scheme:

All establishments with at least 10 full-time permanent employees and to whom
the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies,
have a statutory liability to subscribe to Employee's Deposit Linked Insurance
Scheme (EDLI), to provide for life insurance for all their employees.
Reliance Group Gratuity Policy:

At Reliance Life Insurance the company offers a range of services to assist the
customer in managing their company's gratuity obligations. These include:
• Stress-free administration services and flexible benefit design
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• Investment choice which gives the customer control and flexibility over
their investment goals
• Competitive rates for death and disablement insurance through 's
Reliance Life Insurance Employee Benefit Plan
• Communications that will help the customer communicate the benefits
they provide to their employees and annual reporting for their record
keeping requirements
• Consulting advice on taxation, benefit design, financial accounting and
any other issues that affect the management of customer’s gratuity
scheme
• Experienced and professional administration service which provides
specialist advice and support
• Actuarial services
• Investment management
• Establishment and variation of Trust documentation
The Reliance Group Gratuity Policy allows the customer to take control of the
benefits they provide to their employees without the burden of administration.
The company can help the customer and their employees work towards a secure
future, both now and in retirement, by offering:
• A gratuity policy that reflects customer’s company's identity and which
highlights the value of the benefits he/she provide to his/her employees
• Flexible benefit designs allowing for a variety of accrual rates and
eligibility periods
• Specialist advice and support
• Strategic investment management that provides competitive returns
• Insurance for death and disability (available through the Reliance Life
Insurance Employee Benefit Plan)
• Keeping up to date by providing annual information for you and your
employees
• The company can manage the establishment of the customer’s trust deed
and any trust deed amendments
• Security and assurance so that your gratuity scheme complies with the
law
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Reliance Group Superannuation Policy:

At Reliance Life Insurance the company offers a range of services to assist the
customer in managing their employee superannuation arrangements. These
include:
• Stress-free administration services and flexible benefit design.
• Investment choice which gives the customer and / or their employees
control over investments
• Competitive rates for death and disablement insurance through Reliance
Life Insurance's group life policy
• Employees have the option to purchase an annuity on resignation and
retirement through the Reliance Life Insurance's immediate annuity
product
• Communications that will help the customer communicate the benefits
they provide to their employees and annual reporting for their record
keeping requirements
• If the customer have gratuity obligations to their employees, the Reliance
Group Gratuity Policy can be linked to their superannuation scheme so
that benefits can be communicated to employees on a single benefit
statement
• Consulting advice on taxation, benefit design, financial accounting and
any other issues that affect the provision of employee benefits
• Actuarial services
• Investment management
• Establishment and variation of Trust documentation
The Reliance Group Superannuation Policy allows the customer to take control
of the benefits they provide to their employees without the burden of
administration.
The company can help the customer and their employees work towards a secure
future, both now and in retirement, by offering:
• A superannuation policy that reflects customer’s company's identity and
which highlights the value of the benefits they provide to their employees
• Flexible benefit design with additional saving opportunities for their
employees
• Strategic investment management that provides competitive returns from
a range of investment options which the customer and/or their employees
can choose from
26
• Insurance choice for death and disability (available through our group life
policy)
• Keeping up to date by providing annual information for the customer and
their employees
• The company can manage the establishment of customer trust deed and
any trust deed amendments
The sure way to retaining good staff is to provide valuable benefits to employees
of the customer. It makes sense to provide benefits through superannuation and
at the same time the customer can enjoy the tax incentives available.
Reliance Group Superannuation Policy means the customer can tailor their
superannuation arrangements to suit the growing needs of their workforce. At
Reliance Life Insurance the company will take the headache out of managing the
customer’s superannuation arrangements, leaving more time for the customer’s
internal resources to focus on other important issues.
A variety of insurance benefits are available through the company’s group life
policy which can be tailored to suit employee's needs. For employers who
provide gratuity benefits, the Reliance Group Gratuity Policy and the customer’s
superannuation scheme can be linked together so that all benefits they provide
can be reported to their employees on a single annual statement.
Reliance Group Superannuation Policy allows employees to transfer in other

employer superannuation benefits making it easier to manage their retirement
savings.
At Reliance Life Insurance, immediate annuity provides employees with the

opportunity to convert their benefit into a pension that will provide competitive
investment returns. At this time the customer have the option to seek annuity
purchase from any other provider.
Future Plans:
27
Reliance Life Insurance has plenty of plans on the anvil. It will be opening new
branches across India and will be launching additional products aimed at
providing unparalleled service to its valued clientele.
• Three hundred new branches to be opened across the country in the

coming months; and a pan India presence with 162 branches in the
coming year.
• A state-of-the-art customer care centre will provide continuous,
responsive services to caller and promptly address queries, collate
feedback and suggestions from the caller, who may be both prospective
and existing clientele and from channel partners in Chennai and Mumbai.
• We plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai
Ambani Knowledge City) which will cater to the needs across India, with
fail-over capability to Chennai Data Centre within the same business day
in occurrence if an incident or Disaster happens.
• All Branch / Area & Regional offices will be interconnected to Data Centre
with a 24*7 access to Core Applications. This will enable associates to
work faster and better with high speed internet connectivity and also
ensure faster Turn Around Time for our customers.
• A centralized Customer Care Centre at Dhirubhai Ambani Knowledge
City at Navi Mumbai which will cater services to internal and external
queries and complaints. A Customer Relationship Management Tool
(CRM) and Lead Management Systems (LMS) are in progress.
• Web Portal will be in interface between both internal employees and our
external users. Some of the functions included in our portal are Policy
Tracking Systems, Corporate News, Quality Checking Systems, Under
Writing Medical System, Agents Management systems etc.
• Reliance Mobile R-World will provide online information about the
Company, Products, and Policy Services to our existing customers,
Agents/ Advisors and Lead Generators.
• SMS Alerts will be provided to Sales Managers about the latest
happenings like Contests and Campaigns, Employee Alerts will include
Company News & Welcome/ Birthday/ Anniversary message etc.
Customer Alerts will include Company News & Welcome/ Birthday/
Anniversary message, Policy Despatch Details, Policy Servicing SMS like
Premium Receipt & Renewal Premium Reminders etc.
28
• Single Life and Group Life details will be captured and managed by Life &
Group Asia. A common middleware between this application will enable
Group Life Customers to view their individual Single Life Insurance Plan
details taken with Reliance Life Insurance and vice versa.
• Advisor Lounge is a dedicated area for Reliance Life Insurance Agents/
Advisors in all the branches across India. This Lounge will be equipped
with desktops and printers with internet connectivity, where Advisors can
bring in the prospects and can have discussions across the table and
they can create and print quotes. The agents can use this area to service
their existing customers.
• Document management System (DMS) will enable both Policy Issuance
& Contract Servicing through an automated work flow which yields a
faster Turn Around Time to both internal and external users. This
application will enable to have a paperless office and thus mitigate the
risk of loosing vital records.
• Wireless Data Access will enable Top Sales managers and Top Advisors
to access real time data for both LMS & CRM on the fly through handheld
PDA device.
LIFE INSURANCE IN INDIA:

The insurance sector in India has become a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries.
With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20 per cent annually. Together with banking
services, it adds about 7 per cent to the country’s GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor.
Nearly 80% of Indian populations are without Life insurance cover and the Health
insurance. This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra
Committee” was constituted by the government in 1993 to examine the various
aspects of the industry. The key element of the reform process was Participation
of overseas insurance companies with 26% capital. Creating a more efficient and
29
competitive financial system suitable for the requirements of the economy was
the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to the
existence of LIC. Since the liberalization of the industry the insurance industry
has never looked back and today stand as the one of the most competitive and
exploring industry in India. The entry of the private players and the increased use
of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the longer
run.
History:
The origin of insurance is very old .The time when we were not even born; man
has sought some sort of protection from the unpredictable calamities of the
nature. The basic urge in man to secure himself against any form of risk and
uncertainty led to the origin of insurance.
The insurance came to India from UK; with the establishment of the Oriental Life
insurance Corporation in 1818.The Indian life insurance company act 1912 was
the first statutory body that started to regulate the life insurance business in
India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been
established in India. Then the central government took over these companies
and as a result the LIC was formed. Since then LIC has worked towards
spreading life insurance and building a wide network across the length and the
breath of the country. After the liberalization the entrance of foreign players has
added to the competition in the market.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. In 1957 General
Insurance Council, a wing of the Insurance Association of India frames a code of
conduct for ensuring fair conduct and sound business practices. In 1972 The
General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. It was after this
that 107 insurers amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
30
Reforms:
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor was formed to evaluate the Indian insurance industry and give its
recommendations. The committee came up with the following major provisions·
Private Companies with a minimum paid up capital of Rs.1bn should be allowed
to enter the industry· Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies· Only one State Level Life Insurance
Company should be allowed to operate in each state. It was after this committee
came into affect the regulatory body for insurance sector was formed with the
name of IRDA
IRDA4: The IRDA since its incorporation as a statutory body has been framing
regulations and registering the private sector insurance companies. IRDA being
an independent statutory body has put a framework of globally compatible
regulations.
Impact of Liberalization:
The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC.
Since the advent of the private players in the market the industry has seen new
and innovative steps taken by the players in this sector. The new players have
improved the service quality of the insurance. As a result LIC down the years
have seen the declining phase in its career. The market share was distributed
among the private players. Though LIC still holds the 75% of the insurance
sector but the upcoming natures of these private players are enough to give
more competition to LIC in the near future. LIC market share has decreased from
95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the
market share of the insurance industry.
Current Scenario of the Insurance Industry in India:

India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for
4
Insurance Regulatory Authority Of India
31
global insurance majors. The insurance sector in India has come to a position of
very high potential and competitiveness in the market.
Innovative products and aggressive distribution have become the say of the day.
Indians, have always seen life insurance as a tax saving device, are now
suddenly turning to the private sector that are providing them new products and
variety for their choice. Life insurance industry is waiting for a big growth as
many Indian and foreign companies are waiting in the line for the green signal to
start their operations. The Indian consumer should be ready now because the
market is going to give them an array of products, different in price, features and
benefits. How the customer is going to make his choice will determine the future
of the industry.
Customer Service:
Consumers remain the most important centre of the insurance sector. After the
entry of the foreign players the industry is seeing a lot of competition and thus
improvement of the customer service in the industry. Computerization of
operations and updating of technology has become imperative in the current
scenario. Foreign players are bringing in international best practices in service
through use of latest technologies. The one time monopoly of the LIC and its
agents are now going through a through revision and training programmes to
catch up with the other private players. Though lot is being done for the
increased customer service and adding technology to it but there is a long way to
go and various customer surveys indicate that the standards are still below
customer expectation levels.
Distribution Channels:
Till date insurance agents still remain the main source through which insurance
products are sold. The concept is very well established in the country like India
but still the increasing use of other sources is imperative. It therefore makes
sense to look at well balanced, alternative channels of distribution.
LIC has already well established and have an extensive distribution channel and
presence. New players may find it expensive and time consuming to bring up a
distribution network to such standards. Therefore they are looking to the diverse
areas of distribution channel to have an advantage. At present the distribution
channels that are available in the market are:
· Direct selling
32
· Corporate agents
· Group selling
· Brokers and cooperative societies
· Bancassurance
To make all these channels a success the companies have to be very alert and
skillful to know how to use these channels in a proper way. Bancassurance is on
of the most upcoming channels of distribution and therefore is being discussed in
details.
Bancassurance5:
India has an extensive bank network established over the years. What Insurance
companies have to do is to just take advantage of the customers' long-standing
trust and relationships with banks. This is a mutually beneficial situation as banks
can also expand their range of products on offer to customers, while the
insurance company will also earn profits from the exposure. Another advantage
is that banks, with their network in rural areas, help to fulfill rural and social
obligations stipulated by the Insurance Regulatory and Development Authority
(IRDA) recently. Insurance companies should see Bancassurance as a tool for
increasing their market penetration in India. It is also good for the one who sees
Bancassurance in terms of reduced price, high quality product and delivery at
doorsteps. Everybody is a winner here. The creation of Bancassurance
operations has made an important impact on the financial services industry at
large. This is though a new concept but it has gained a lot of importance in the
industry at present and has a great future.
Product Innovation:
There has been a plethora of new and innovative products offered by the new
players.
Customers have tremendous choice from a large variety of products from pure
term (risk) insurance to unit-linked investment products. Customers are offered
unbundled products with a variety of benefits as riders from which they can
choose. More customers are buying products and services based on their true
needs and not just traditional money back policies, which is not considered very
appropriate for long-term protection and savings. There is lots of saving and
investment plans in the market. However, there are still some key new products
yet to be introduced - e.g. health products.
5
Can be called as Bank Assurance
33
Rural Marketing:
Rural India seems to have an appetite for mobile phones, computers, and cars
and to add to it we have insurance. In India with the private players having
entered into the insurance industry, the expected explosion in job opportunities
may not actually happen but for them the catchments area is the opportunities in
the rural India. In India the insurance business can be said to be "a marathon,
not a sprint". This is because of the nature of the business being long term. With
merely two years of the industry being opened, not surprisingly, the new comers
are making losses. The public sector companies, notably the LIC, have gained in
strength, thanks to the deepening of the market consequent to the awareness
created by the new companies. However this does not deterred the private
sector, which knows know that the race is a marathon, not a sprint. However it
seems that they if not anything, are only increasing their spending, though only
out of the capital. Today, there are 18 insurance companies in India excluding
the PSU’s, with 12 in the life insurance business and the rest in non-life .As
insurance companies go more and more rural in search of business, there will be
opportunities in the rural sector. Those who understand rural India better will be
in demand.
The rural consumer is now exhibiting an increasing propensity for insurance
products. A research conducted exhibited that the rural consumers are willing to
dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the
insurance the awareness level for life insurance is the highest in rural India, but
the consumers are also aware about motor, accidents and cattle insurance. In a
study conducted by MART the results showed that nearly one third said that they
had purchased some kind of insurance with the maximum penetration skewed in
favor of life insurance. The study also pointed out the private companies have
huge task to play in creating awareness and credibility among the rural populace.
The perceived benefits of buying a life policy range from security of income bulk
return in future, daughter's marriage, children's education and good return on
savings, in that order, the study adds.
Regulatory and Development Authority (IRDA) have set stiff rural targets for
insurance companies. For the life sector, in the first year, 5 per cent of the total
policies written should come from the rural sector. This will go up to 15 per cent
in five years. Similarly, for the non-life sector, two per cent of the total gross
premium income should come from the rural sector going up to 5 per cent in five
34
years, according to the regulation. All these moves will make the investment the
rural area a big start.
Information Technology and Insurance:

In the insurance industry today, there is a clear trend away from selling a broad
range of products to a large volume of customers in a one –size-fits-all manners.
Instead of focusing on their different products lines as silos (i.e., life, property and
casualty etc) insurers are looking for ways to offer highly targeted insurance
products that are tailored to the individuals customers with the highest propensity
to buy them. There is an evolutionary change in the technology that has
revolutionized the entire insurance sector. Insurance industry is a data-rich
industry, and thus, there is dire need to use the data for trend analysis and
personalization.
With increased competition among insurers, service has become a key issue.
Moreover, customers are getting increasingly sophisticated and tech-savvy.
People today don’t want to accept the current value propositions, they want
personalized interactions and they look for more and more features and add
ones and better service
The insurance companies today must meet the need of the hour for more and
more personalized approach for handling the customer. Today managing the
customer intelligently is very critical for the insurer especially in the very
competitive environment. Companies need to apply different set of rules and
treatment strategies to different customer segments. However, to personalize
interactions, insurers are required to capture customer information in an
integrated system.
With the explosion of Website and greater access to direct product or policy
information, there is a need to developing better techniques to give customers a
truly personalized experience. Personalization helps organizations to reach their
customers with more impact and to generate new revenue through cross selling
and up selling activities. To ensure that the customers are receiving personalized
information, many organizations are incorporating knowledge database-
repositories of content that typically include a search engine and let the
customers locate the all document and information related to their queries of
request for services. Customers can hereby use the knowledge database to
35
mange their products or the company information and invoices, claim records,
and histories of the service inquiry. These products also may be able to learn
from the customer’s previous knowledge database and to use their information
when determining the relevance to the customers search request.
The insurance sector remains a very competitive market and those companies
that are able to best utilize their data and provide their customer with the most
personalized options will have the distinct competitive advantage. The insurers
that come up to the top will be those who leverage the appropriate technology
solutions effectively in order to foster customer loyalty, attract new customers
and improve operational efficiency by providing common information across their
lines of business.
Mergers and Acquisitions:

This is an era of mergers and acquisitions. Private companies including MNC’s
are amalgamating the world over to get more competitive edge. Currently, the
general insurance industry has been opened up. The question here is that for
over two years, eight private companies have operated and has the size of the
cake expanded. We here find that this is not true. The insurers are doing enough
to raise the level of risk awareness or are they merely content to compete in the
markets organized and established. However sooner or later the private sector
players will have to put in place strategies aimed not at winning the existing
accounts of the public players but at diversifying market as a whole. The private
players in the future would have to turn their attention to working in the
unorganized and underserved markets.
What is likely to happen is that the private players would continue to skim the
profitable segments of the already organized business in the urban areas? The
time has already come for the government of India to evaluate the performance
of private companies’ vis-à-vis their declared objective of opening up the
industry.
However it is high time for the government to realize that importance of merging
the public sector general insurance companies into single entity. The resent
scenario calls for a better performance from part of each of the public sector
insurance companies against each other; or in other words a competition to be
36
the best. The result what we see is the undercutting of premium to retain or
wrest6 business and quoting an uneconomical rate of premium. While this allows
one of the Public Sectors Company to win a business form another in this
manner. The others suffer a loss and the resultant effect is a cannibalization with
a fall in the average premium of the public sector itself. This at many times brings
advantage to the private players who grab the business because of the unethical
competition among the public players.
The purpose of having four companies all subsidiaries of General Insurance

Corporation of India (GIC) – National Insurance Company, New India Assurance
Company, and Oriental Insurance Company, And The United India Insurance
Company; at the time of nationalization was to have competition among
themselves –in service and products at the same price. The service provided by
them was also equally good or bad depending on the experience of the
customers.
Now with real competition coming in with most of the global insurance players
setting footprints here, it is felt that the time for merger has come and to enjoy
the benefits if the size. It is to be sated that size does matter in insurance
business. All over the world’s mergers and acquisitions in the risk-underwriting
sector is common. The benefits if the four insurance companies merge will be
enormous. The merged entity will enjoy higher underwriting and risk retention
capacity; increase in reinsurance premium, reduction in reinsurance outflow,
healthy solvency margins, setting right the asset –liability mismatch and
reduction in cost. The insurance market thus becomes a gambling place. Had the
public sector companies made into a single entity, perhaps the total premium of
the four public sector companies in the year 2003-04 would have gone up but 25
percent. But the public sector alone is forced to underwrite the loss making motor
third party liability (TPL) insurance. The public insurance companies insured a
loss of Rs 1943 crore on this portfolio on just one year (03-04). The cumulative
loss under this portfolio is astronomical. The loss of profitable business in view of
undeserved competition among the public sector companies is hampering the
subsidization of social insurance including the motor TPL.
It is thus clear that it is good for the public sector companies to merge
immediately when they are still strong, lest a merger becomes inevitable later
6
To take power or influence someone
37
after the independent public sector companies fail one after another. This does
not bid well for the public sector, nor fort he insuring public and not for the
economic development either. For a progress me require merger of strong public
sector companies. Else it would render public sector companies weak and
destroy them.
Impact of Budget in Insurance:

The 2006-07 Budget has dampened the spirit of insurance companies. Hardly
any changes have been made in the general insurance sector. The change in the
tax structure may have some impact on the life insurers. With the removal of the
Section 887 relief in the previous budget there is not much for the insurance
players to cheer for.
FDI hike in insurance sector:

The Finance Minister commended on the growth in the insurance sector, there
was no mention of the steps being taken for increasing FDI in insurance sector.
There is a dire need to attract more foreign capital in the sector. However it
seems that the Union
Finance Ministry is looking at proposals to de-link the FDI limit from the
Insurance Act, when it is amended. This move would empower any future
government to increase the
FDI limit through an executive order without taking the issue to the Parliament.
Removal of Sec 88 tax relief: With the removal of the Section 88 tax relief on life
insurance products there would be a sever blow on the life insurance companies.
Industry News
IRDA sets money laundering norms:
IRDA has set up some stringent money laundering norms with effect from 1st
April 06 that will require insurer companies to diligently follow those norms and
provide details for suspicious transactions to the financial intelligence unit. The
average insurance premium being collected by the companies has been grown
exponentially year by year. Last year the private insurance company amassed
Rs 19,463 as the average regular premium per policy that is over 20 per cent
increase. Experts see this growth happening because of the Unit-linked
insurance products offered by these companies that have become a big hit
among people to route their savings.
7
Section under the Income Tax which allows for rebate in the amount of tax
38
The companies have been asked to classify customers based on their risk
profile. The guidelines are expected to keep in check suspicious transactions in
products like unit-linked products, which provide for withdrawals and unlimited
top-up premiums, free look cancellations, big ticket cases of single premium
products where premium is paid in lump sum and surrendered at the earliest
opportunity.
This latest prevention comes under the Prevention of Money Laundering Act,
2002 (PMLA) that came into force in July last year. As per the PMLA guidelines,
insurers are required to submit suspicious transactions immediately to financial
intelligence unit, set up by the government to track possible money laundering
attempts, for investigation. Remittances of premium by cash are capped at Rs
50,000 with the insurers permitted to place lower caps.
PMLA also requires the insurance companies to strictly adhere to Know Your
Customer (KYC) norms under which insurers are required to know the exact
details of the customer by collecting the required documents for the same.
Standalone health insurance, group insurance schemes and term life insurance
contracts are exempted from the guidelines.
Insurance regulator pitches for differential FDI caps:

Insurance Regulatory and Development Authority (IRDA), the governing body for
insurance companies in India has promoted the idea of differential caps for
Foreign Direct Investment (FDI) in the insurance sector. If the law is passed, it
will mean that foreign companies may vary their participation in the paid up
capital in the Indian insurance company depending on the category of the
company. This means that a standalone health insurance company could have
an FDI cap that is different from, let’s say, a general insurance company.
This new initiative is part of comprehensive changes that IRDA wants to bring in
the Indian insurance sector. It has also mooted as per the recommendations of
the working group set up for this purpose a lower minimum capital of Rs 50 crore
for the standalone health insurance companies.
39
Even though the government had proposed the hiking of FDI limit in the
insurance companies to 49 percent in the 2004-05 budget it has faced stiff
opposition from the Left parties due to which the law has not been passed yet
IRDA’s proposal is a step forward and will help in giving incentive for investments
in those insurance markets where political opposition is likely to be relatively
weak such as health insurance for one.
Life insurers hike exposure to stocks:

As the market rises rapidly and breaks all time barriers, the newest entrants into
this rally came from a very conservative group of investors that have traditionally
kept away. The new entrants are the life insurance companies in India, who are
making hay in the stock market sunshine.
As per the new study carried out by Fitch Ratings, insurance companies have
radically increased their equity exposure to 20-30 percent of its corpus in the
fiscal year 2005, from the 15 to 20 percent in the preceding year. The trend is
significant because it is mandatory for insurance company to invest a significant
part of its investment -45 percent for non-life and 65 percent for life insurers- in
the government and other approved securities. Exceptions to the rule are
pension, general annuity and unit-linked insurances. The allocations include a
compulsory investment (of at least 10 percent for non-life and 15 percent for life
insurers) in the infrastructure and social sector. The remaining assets- 55
percent for non-life and 35 percent for life are also subject to certain restrictions.
According to the study the increasing share of Unit-Linked Insurance Plan (ULIP)
in the insurance policies sold and the buoyancy in the stock market indicate that
the trend is likely to continue in the current year. Experts relate this increase in
equity exposure to the falling interest rates that are reducing in their earnings in
debt holdings due to which insurance companies have no option but to increase
its stock exposure to increase company earnings and boost its bonus payments.
40
Postal insurance to tap equity:

The new record surge in the stock market has instigated the government to
increase the competition and professionalism in the grossly inefficient postal
insurance. A new draft proposal mooted on behalf of the Ministry of Finance
(MoF) and Department of Posts (DoP) seek to invest part of money collected by
the Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) in the
equity market.
This move will be beneficial to the government as well that has to fund the deficit
caused in the postal fund out of the Union budget. Till now the entire fund and its
annual returns have been part of Special Deposit Scheme that was at the
disposal of MoF.
The new proposal will make the fund to be transferred over to the directorate of
postal life insurance as per the guidelines of IRDA. This will also require the
hiring of services of a private asset management company to invest in a booming
stock market and a diversified investment portfolio to reap rich returns higher
than the current fixed 8 percent returns. The wide coverage of post office
network would also enable the postal insurance to cater to a significant
proportion of the uninsured population many times more than the private life
insurance companies.
Southeast Asia’s first post-accident analysis facility in India to help insurance

companies:
Southeast Asia’s first post-accident facility under the National Automotive testing,
Research and Development Infrastructure Project (NATRIP) of the Cabinet
Committee on Economic Affairs (CCEA) is being set up at Lucknow in India. The
facility will make the fraudulent insurance claims redundant.
The facility will keep a database of accident-prone cars that will help the
insurance companies in assessing the cost of damages and understand fake
claims better. The motor insurance portfolio is fraught with issues, including
multiple insurance policies against the same vehicle to facilitate multiple claims
or the fraudulent reuse of the automobile registration numbers of junked vehicles.
As per the new facility specially trained investigators will visit the accident site to
collect data and evidence related with the mishap. The evidences will then be
41
uploaded on computers scientifically designed to analyze the cause of accident.

The coming up of this facility is said to reduce the counterfeit claims drastically,
which according to the industry sources amount to 20-25 percent of the total
claims. This facility will help in increasing the operating efficiency and profit of the
insurance companies.
Governance Code for the Indian Insurance Industry
There are four major factors why drawing up a set of governance standards for
the Indian insurance industry, covering life as well as general insurance
companies, public and private sector, is important at this stage. Firstly, in life
insurance, a well drafted governance code and their adherence would help to
shore up the level of public confidence in the new generation insurance
companies, which seem to suffer in comparison to LIC due to the absence of a
level playing field, with the insurance policies issued by the latter carrying the
stamp of sovereign guarantee. While there is reportedly a move by the
government to level this field by removing the privilege enjoyed by LIC, it is
perhaps quite a long way off. Meanwhile, as an industry which engages with
clients on long term contract, the new generation life insurance companies
should be keen to have a set of standards against which they could benchmark
their own governance to strengthen the public image that the new players can be
considered as trustworthy and dependable as their public sector counterparts.
Secondly, the Indian insurance industry is set to witness a major phase of
change, and possibly explosive growth, with the lifting of the foreign equity cap
and dilution of domestic promoters’ stake in the foreseeable future, as well as
removal of tariff regulations in the non-life sector. There are plans to pave way
for the entry of large number of players to open business in specialized
insurance fields such as health insurance by relaxing the capital and solvency
rules. We would possibly witness more foreign firms entering the country, and
key management personnel with limited industry experience representing
domestic and foreign partners running the companies. At the same time, the
existing companies in the life insurance sector, along with facing competition
from new players, will probably grapple with greater operating challenges, such
as increasing number of maturity, death and other claims on the cumulative
business built by them over the last few years. We need good governance
standards against which the companies’ conduct and performance would get
measured in this backdrop. On the general insurance side, with the industry
moving away from the tariff regime, there are going to be plenty of issues
42
concerning fair play, transparency and policyholder servicing. Thirdly, the need
for proper governance standards in the insurance industry assumes importance
in the context of the Indian corporate sector getting ready to accept and live up to
a set of corporate governance rules, thanks to the initiatives taken by the
securities market watchdog during the last two years. Companies that are listed
in the stock exchange, and having paid up capital of Rs. 3 crore or net worth of
Rs. 25 crore or more would now need to abide by the new code. SEBI has boldly
introduced a system of disincentive-cum-penalty for defaulting companies: they
run the risk of being de-listed from bourses, or the promoters being fined up to
Rs.25 crore (the highest in the corporate law book) or face imprisonment up to
10 years. Since insurance companies are not likely to get listed in bourses in the
near future and would remain closely held companies, they need to conform to a
set of governance rules to reassure stakeholders about their standards of
performance and conduct. Fourthly, there is increasing evidence of public sector
financial institutions evincing interest to enter insurance business in partnership
with foreign insurance firms, and in some cases as three-way partnerships with
private corporate enterprises. While a few such ventures have recently been
licensed, several more are set to take off in the life and non-life sectors. There is
ambivalence whether such ‘public-private’ partnerships are subject to the rules
normally applicable to PSU enterprises. PSU managements in general have no
uniform views in regard to the applicability of corporate governance standards to
them. It is important that insurance ventures promoted by PSUs are governed by
clear governance principles to send the right signals that they are viable and
dependable stand-alone entities in their own right. On a wider context, this would
reinforce the grounds on which the financial sector convergence is taking place
in the Indian market.
43
The Study was undertaken as part of my 3th Semester Project for Reliance Life
Insurance Pvt. Ltd. Reliance has been a pioneer in the field of Life Insurance for
almost half a decade now.
My project topic was “A study to Develop An Ideal Recruitment Mix for a FPA
Sales Force “.
The Indian Insurance History commenced from the year 1956 with the
Nationalization of Life Insurance. In 1972 Nationalization of Non Life Insurance
sector took place. With the onset of the new millennium foreign Multinationals
made their way to India, globalization was a major factor in the turnaround story.
Keeping up with trends Reliance Life Insurance tied up with AMP Sanmar Life
Insurance Co Ltd and made its foray into the Indian Insurance Sector.
13 Private Players and one government owned company are presently functional
in the Indian Insurance Sector. All these companies fall under the Umbrella of
IRDA (Insurance Regulatory Development Authority) and follow IRDA
regulations.
LIC is the major player in the Indian Insurance Sector with a major chunk of more
than 20%.
44
My task involved creation of an ideal recruitment mix model. For this purpose I
recruited people from 4 different classes i.e. students, working class, housewives
and Senior Citizens. The Role of an FPA is to provide ongoing financial advice,
identify the future clients, make appointments, conduct review meetings, close
sales, get referrals, provide service to clients, follow internal sales and reporting
system.
The findings of this study were to create an ideal recruitment mix model. This
helped the company to choose suitable FPA’s based on their quality, credibility,
database, business orientation, career aspirations.
To conclude, this study proved to be an effective tool for the location of the right
people. This gave the company a competitive edge as they could identify the
right people from different strata of society, who could effectively pursue the
company’s goals and in the process fulfill their career aspirations. Details of the
study are included in the forthcoming chapters of this report.
45
The objectives of this project report have been manifolds. In general the purpose
of the project is to have in-depth analysis and knowledge about the chosen topic
of interest.
The following have been the main objectives behind this study:
 This study helps to create and develop an ideal Recruitment Mix for FPA
Sales Force
 To identify the parameters determining the quality of FPA work force
 It helps to analyze Scope of each class of FPA
 To fix the right person for the right job
 To find out in what all areas of HR are the human resource professionals
using these psychometric tests
46
In order to understand and achieve the objectives of the project and to have an
in-depth knowledge about the chosen topic of interest it was important to gather
the relevant data from various sources.
RESEARCH DESIGN
Fundamental to the success of any formal project is a sound research design. A
good research design has the characteristics, viz problem definition, specific
methods of the data collection and analysis, time required for research project
and estimate of expenses to be incurred. The function of a research design is to
ensure that required data are collected and search design is to ensure that the
required data are collected and they are collected accurately and economically.
A research design is purely and simply the framework or plan for a study that
guides the collection and analysis of data.
SAMPLING PLAN
Under this study Research Methodology is undertaken in order to develop ideal
recruitment mix of the FPA sales force. This research study was done in Trichur
District for Reliance Life Insurance, Initially a sample of 100 people was taken,
and these people were selected from various zones in Trichur district. The
groups are:-
1. Students
2. Working class
3. House wives
4. Retired class
CHART AND TABLE SHOWING THE PARTICIPATION OF FPA

SALES FORCE FOR EACH CATEGORY
Sl Category Male Female Total
1 Students 5 - 5
2 Working class 6 4 10
3 House wives - 10 10
4 Retired class 5 - 5
Total 16 14 30
47
student class
working class
house wives
retired class
Above the category mainly divided for concentrating the Financial Advisor work is
understand the taste of each classes of the society, the category numbers are 5
students, 10 working class, 10 House wives, 5 Retired class, Each group was
selected based on certain inputs with regard to their profiles. Students were
selected from colleges & other educational institutions; Working class people
were selected by visiting various offices and based on information obtained from
people. House wives selected from various units & keeping track of different
woman’s groups, activities etc, Retired class selected from treasuries and other
known source.
Classification in four categories simplified the tasks to a large extent as data

collection became simpler to understand for everyone, Further it gave a glimpse
on behaviors of these groups in terms of Database, Quality, Business orientation,
Credibility and Carrier aspiration of the FPA’s.
To accomplish the objective of any research project, data can be collected from
two main sources:
DATA COLLECTION SOURCES

Data collected from these people using convenient sampling. Techniques used
to collect data included questionnaire, telephonic conversation, face to face to
talk etc, Using the current available data obtained through this technique we
were able to compare data with the given parameters like data base, quality of
FPA’S. Using this data we would gain insights about personal details, his
contacts quality and Business Orientation and eventually show how capable
these people can be at convincing the customers and planning he/her consistent
business.
48
Thus by using Research Methodology I was able to develop an Ideal

Recruitment Mix for FPA’s at “RELIANCE LIFE INSURANCE CO.LTD
THRISSUR”, I hope that the company finds it useful.
A research design is purely and simply the framework or plans for a study that
guides the collection and analysis of data. The research design is conceptual
structure, the blue print for the collection, measurement and analysis of data.
1. COLLECTION OF DATA
a. Primary data Questionnaire survey
b. Secondary data Text book, magazines, profile,
Internet, Website etc.
Sampling technique.
SAMPLING TECHNOLOGY
Sampling Method Convince sampling
b. Sample Size 30
TOOLS FOR ANALYSIS Tables, Charts, graphs etc.
METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined and
charted out. While deciding about the methods of data collection to be used for
the study, the researcher should keep in mind two types of data; they are,
a) Primary data
b) Secondary Data
1) Primary Sources of Data

Primary data means data’s collected afresh and for the first time and thus
happen to be original in character. Primary data can be obtained either through
observations or through direct communication with respondents in one form or
another through personal interview. In this project work the researcher collected
the primary data through questionnaire method.
2) Secondary Sources of Data

Secondary Data means the data’s that are already available. In this study the
researcher has taken textbooks, magazines, Profile, Internet and website of the
organization as the sources of secondary data.
49
To accomplish the objectives of this research work , both primary

as well as secondary sources of data collection were used.
SAMPLING TECHNIQUE
In this project study the researcher has selected the sample by using Convincing
sampling technique. A Convincing sampling technique is one in which one can
specify the each element of population and the people being selected in the
sample. An essential quality of a random sample is that it makes possible
representative sampling plans
SAMPLING METHOD
Convincing sampling is used in this study 30 is the sample size and samples are
divided into four classes people that is Students, Working peoples, House wife’s
and Retired class Sample Size
The sample size of the study is 30.
TOOLS FOR ANALYSIS

For the collected data analysis and interpretation the researcher has applied
some analysis tool such as Rating methods which is used for rating each
category of people against sort of Parameter and give rating for each class and
find out which of the class is suitable for consistency and high income
business .These analysis helpful for the Ideal Recruitment Mix of FPAs. MS
Word and MS Excel, for the presentation of the analyzed data the researcher has
made use of tools like tables and charts
50
To make an ideal recruitment mix model for Financial Planning Advisors (FPA)
sales force with respect to Reliance Life Insurance Company Limited we have to
consider certain parameters like Contacts, Business Orientation, Quality,
Credibility and Career Aspiration, thus resulting in me observing the above
parameters it easy to find out which category is efficient for the Sale.
While doing this study i am using Rank Order Rating scales these methods
requires the respondent to rank a set of objects according to some criterion. The
application extends beyond the measurement of attitudes into such areas the
rating of past, present, or future behavior. When used to measure attitudes,
rating scales can be focused on the overall attitude towards an object or on the
attitude towards some specific attribute of an object. Analysis was done using
Rating Scale Method i.e. rates were allocated to each options given to the
specific groups and based on the results the cumulative was taken up to know
the desired class suitable for being Financial Planning Advisors (FPA).
Analysis for each parameter is as follows,

Contacts: - A Contact is a collection of all the contacts maintained by the
Financial Planning Advisors (FPA). It includes addresses, classification of
people, details about the financial data needs and Priorities of the customer etc.
It plays an important part in increasing the overall efficiency of the FPA’s.
Table-1
The following table shows the various types of contacts maintained by the FPA in
his field/society.
Type of contact Students Working Housewives Retired Total
class class
Lower income 2 4 1 - 7
Middle income 3 9 9 6 27
High income 5 10 20 10 45
Lower middle - 4 - - 4
Upper middle 4 1 8 4 17
Total 14 28 38 20 100
Interpretation
51
Interpretation of the table shows us that the FPA has contacts with the above
mentioned group of people. The rates allocated to each of the contacts in the
groups is as follows,
High Income -5 Upper Middle-4 Middle Income-3 Lower Middle-2
Lower Income-1
Maximum rating points were obtained by Housewives for maintaining contacts

with the various classes of people.
CHART NO-1
The following Figure shows the various types of contacts maintained by the FPA
in his field/society.
40
35
30
25
20
15
10
0
students workingclass housewives retiredclass
TABLE NO :2
The following table shows the various Class of Contacts of FPA’s in the Society
and their rating. The various classes include NRI’s, Professionals, Retired
people, business class and self employed people. The various segments are
very helpful in identifying the areas of strength of the particular FPA and what
sort of customers can the particular FPA bring in and how much potential does
he hold.
Table showing the Contacts of Different Class of People’s For FPA’s in the
Society
52
Working House Retired

Sl Type of class Students Total
class wives class
1 NRIS 5 10 25 20 60
2 PROFESSIONALS 8 16 12 - 36
3 RETIRED CLASS 3 - 6 3 12
4 BUSINESS CLASS - 4 - - 4
5 SELF EMPLOYED 1 2 - - 3
TOTAL 17 32 43 23 105
Interpretation
Rates allocated to each of the contacts in the group is as follows
NRI’s-5 PROFESSIONAL’S-4 RETIRED CLASS-3 BUSINESS CLASS-2
SELF EMPLOYED-1
Maximum rating points were obtained by Housewives and retired class for
maintaining contacts with the various classes of people.
Chart No :- 2
Figure showing the Contacts of Different Class of People’s For FPA’s in the
Society
45
40
35
30
25
20
15
10
0
STUDENTS WORKING CLASS HOUSE WIVES RETIREDCLASS
TABLE NO :3
Table showing the number of customers consulting by the FPA per week
53
Sl Category 0-10 10-20 20-30 30-50 Above 50 Total
1 Student 2 4 3 - - 9
2 Working class 3 8 6 4 - 21
3 House wives - 8 9 8 5 30
4 Retired class - - 9 4 5 18
Total 5 20 27 16 10 78
Interpretation
Rating for this table is as follows,
Above 50 - 5
30-50 -4
20-30 -3
10-20 -2
0-10 -1
My observations were that Housewives and retired class of people brought in
maximum clients and contacted maximum numbers of people per week.
Chart No:- 3
Figure showing the number of customers consulting by the FPA per week
30
25
20
15
10
0
students working class house wives retired class
Business orientation
54
Business Orientation is the way to go about any business. It is the ways and
means to achieve maximum productivity and profitability using effective
methodologies and channels.
The various methods used to locate potential clients by the FPA’S are reference
from others, collected database etc. These references can be from family,
friends, neighbors etc.
Table No:-4
The table shows the types of methods used for consulting the peoples
Working House Retired

Sl Types of method Students Total
class wives class
Reference from
1 10 15 20 10 55
others
2 Direct sales 4 12 8 4 28
Collected
3 3 3 3 3 12
database
Telephonic
4 2 4 4 2 12
appointment
Promotional
5 1 1 2
activities
Total 19 35 36 19 109
Interpretation
The FPA’s recruited by me usually follow these methods and the ratings for
these methods were given as follows
Reference from Others - 5
Direct Sales - 4
Collected Database - 3
Telephonic Appointment- 2
Promotional Activities -1
Interpretation of the above table shows that housewives maintain better
communication and contacts with potential clients.
Chart no:-4
The chart showing the types of methods used by the different mix of FPA’s for
consulting the peoples
55
40
35
30
25
20
15
10
0
Table:-5
Table showing the time prefer for consulting the consumers by the FPA’s
Sl Category 2-4 hrs 4-8 hrs 8-10 hrs 10-12 hrs 12-14 hrs Total
1 Students 2 6 - - - 8
2 Working class 2 10 9 - - 21
3 House wives - 4 12 16 - 32
4 Retired class - 4 6 4 - 14
Total 4 24 27 20 - 75
Interpretation
The Rating for above Table
12-14hrs 5
10-12hrs 4
8-10hrs 3
4-8 hrs 2
2-4 hrs 1
The above table shows that the time taken by FPA’s to contact their clients.
Usually students and working class people may not find enough time to work as
FPA’s whereas house wives and retired class people can utilize their time
effectively and do their work
as FPA’s in a better way. The same conclusion was derived as a result of my
study that housewives find more time to work as FPA’s and thus companies try
to recruit housewives for the roles of FPA’s.
56
Chart no:-5
Chart showing the time prefer for consulting the consumers by the FPA’s
35
30
25
20
15
10
0
Table No:6
Family Support is essential for the job of FPA’s especially for students and
housewives as they have to deal with a lot of stress when they deal with clients
talk to prospective clients, trying to convince people etc. Doing so many a times
students and housewives FPA’s may come across a few bitter experiences
which can be demoralizing and demotivating. Thus, in order to be refocused
family support is essential. Motivation and emotional support from family become
major tools for students and housewives to make a career out of FPA’s and to
contribute to their family in their own ways. The following table helps to
understand weather the FPA’s are getting permission or not.
Table showing the total support getting from the family for the FPA’s for their
work
Sl Category Yes No Total
1 Students 2 3 5
57
3 House wives 9 1 10
Total 22 8 30
Interpretation
Analysis of the above table clearly shows that students do not get enough
support from their family i.e. out of 5 students only 2 students get support and
understanding from their family. Among the working class people out of 10
people 6 people were found to get support from their family. There can be
various reasons for not getting enough support when it comes to working class
like work stress, personal problems, family feeling left out and unattended to etc.
Housewives and retired class were found to get full support from their families in
this regard. Hence I could reach a conclusion that housewives and retired class
were the two groups who could utilize and do the work of FPA’s with maximum
efficiency.
58
Chart No: 6
Table showing the total support getting from the family for the FPA’s for their
work
0
Table No:-7
The below table shows analysis done whether FPA’s are able to cope with their
work
routine and whether they are able to devote enough time towards their tasks as
FPA’s.
Table showing the weather FPA’s can cope their routine
1 Students 3 2 5
4 Retired class 5 _ 5
Total 19 11 30
59
Interpretation
Among students 3 out of 5 were found to do their job efficiently. Among working
class 5 out of 10 could not do their tasks efficiently. Housewives 6 out of 10 were
found to be doing their tasks efficiently. Among the retired class all 5 people were
found to do their task with maximum efficiency.
Chart No:7
Chart showing the weather FPA’s can cope their routine
0
Quality
Another major parameter to be measured to find the efficiency of an FPA is
quality. Quality denotes the quality of work he does, the quality of relations the
maintains with his clients how much goodwill does he earn for himself and the
company.
Table No:8
The table showing average premium are collecting from customers
25000- 50000- 75,000- 1,50,000- Above

Sl Category Total
50000 75000 1,50,000 3,00,000 3 lack
1 Students 3 4 - - - 7
Working
2 2 10 9 - - 21
class
3 House wives - 4 12 8 10 34
4 Retired class - - 6 8 5 19
Total 5 18 27 16 15 81
60
Interpretation
The rate of above table has given below
Above 3 Lakhs - 5
1, 50,000 - 3, 00,000 - 4
75,000 - 1, 75,000 - 3
50,000 - 75,000 - 2
25,000-50,000 - 1
The above table shows the quality analysis based on the amount of premium
collected by each segment from their clients. As shown above Housewives
derive maximum premium from their clients followed by retired class.
Char No:-8
The Chart showing average premium are collecting from customers
35
30
25
20
15
10
0
61
Credibility
Credibility is another major parameter when it comes to assessing the FPA’s.
Credibility is the amount of goodwill FPA’s earn for the company, how much do
they value the growth of their company etc.
Table No: 9
The table showing the FPA credibility level towards the Customers
Sl Category Excellent Good Satisfactory Poor Total
1 Students - 6 4 1 11
2 Working class 8 6 8 1 23
3 House wives 8 15 4 1 28
4 Retired class 12 3 2 - 17
Total 28 11 18 3 79
Interpretation
The rating for above table
Excellent-4
Good -3
Satisfactory-2
Poor-1
The above table shows that Housewives and retired class have extremely high
levels of credibility towards their clients and company. An ‘Excellent’ level of
credibility brings in added incentives given to FPA’s by the company which
include foreign trips,raise in their commission etc.
62
Chart No:9
The Figure showing the FPA credibility level towards the company
30
25
20
15
10
0
The Credibility of the FPA is determined by their satisfaction levels on the basis
of the commission provided by Aviva Life Insurance. Commission is the single
most important driving force for an FPA as the better the client/policy he brings in
for the company the higher will be the amount he earns as investment.
Commission is in the range from 15-40% , i.e. depending on the amount of the
policy his ultimate earnings will be determined. Based on their commissions I
could assess the credibility of the FPA’s
Table No:10
The table showing weather the FPA’s Satisfied Reliance’s commission
63
1 Student 2 3 5
Total 21 9 30
The above table shows Satisfaction level of the FPA’s. The table shows that
Housewives and retired class are satisfied with the amount of commission they
receive from the company. Moreover the Credibility levels among these two
groups were found to be higher than the other groups, thus their goodwill is an
intangible asset for the company.
Chart No:10
The Char showing weather the FPA’s Satisfied Reliance’s commission
0
student working class house wives retired class
Career aspiration
Career aspiration is the way employees want to shape their careers. It is based
on where they stand presently- where they want to be and what they have to do
64
to achieve their goal. Career aspiration is derived from an employees educational

qualification, expertise in a particular field, goodwill etc. Reliance Life Insurance
understands the career aspirations of their employees and gives timely
promotions and incentives. This becomes a motivator for the employees to
perform better which is beneficial for the company.
65
Table No: 11
Table showing the Career Aspiration of FPA’s
UTI Br
Sl Category FPA ASM SM TOTAL
Manager Manager
1 Student 2 4 3 - - 9
2 Working class - 8 9 8 5 30
3 House wives 4 10 3 - - 17
4 Retired class 3 4 - - - 7
Total 9 26 15 8 5 63
Interpretation
The above table shows the carrier aspiration of the FPA’s the rating are gives
below
Branch Manager- 5
UTI Manager -4
Sales Manager - 3
Assistant SM - 2
FPA’s -1
The analysis of the above table shows that career aspiration among working
class and housewives was comparatively higher than other groups.
Chart No:11
Chart showing the Career Aspiration of FPA’s
30
25
20
15
10
0
STUDENT WORKING HOSE WIVES RETIRED
CLASS CLASS
66
RECRUITMENT MIX MODEL

The Ultimate objective of the research study was to build a recruitment mix
model which analyses the FPA’s on the basis of certain parameters. These
parameters help the company in understanding their strengths and weaknesses
and can throw light on the future strategies to be adopted by the company.
The major governing factors in designing an Ideal Recruitment Mix Model are
Database, Business Orientation, Quality, Credibility, and Career Aspiration.
Through analysis the rates of each class were found. The corresponding rates
for these classes identifying the strength of each class.
Analysis of the database-business orientation-quality-credibility and career

aspiration of the FPA’s gave insights into the ratings of each class, which could
be shown using the Ideal Recruitment Mix
This Ideal Recruitment Mix helps in analyzing likely generators & optimum users
of corporate resources. Organizations have to take decisions regarding the
allocation of resources between competing business units. This task of allocation
is complex in a constantly changing scenario. However, an organization is
required to take decisions based on some fundamental criteria.
The Ideal Recruitment Mix is widely used in corporate strategic analysis. This
matrix helps in multi-divisional organization to manage its portfolio of business by
examining the relative position and the growth rate of each division relative to all
other divisions in the organization. An Ideal Recruitment Model created for
Effective Sales force Out of the 30 people recruited by me for being FPA’s , 5 fell
under the students category, 10 belonged to the working class, 5 from the retired
class and 10 were housewives. Responses were collected from all the people
recruited and based on their feedback rates were assigned to them
The Study was undertaken on the basis of five Parameters (Contacts, Business
Orientation, Quality, Credibility, and Carrier Aspiration) to create an effective
Ideal Recruitment mix for FPA’s.
Rating Scales were assigned on the basis of this five parameter in the four
different classes, i.e. House wives, Students Working class Retired people.
67
The cumulative percentage of the rating scales were taken to determine the Ideal
personnel for the role of FPA’s
Based on the percentage obtained it become evident that which are all group is
highly effective for the Sales Force.
Table Showing Total of The Parameters Of Each Classes of FPA’s

Working House Retried Grand
Sl Parameters Students
class wives class total
1 Contacts 40 81 111 61 293
Business
2 32 47 83 43 205
orientation
3 Quality 7 21 34 19 81
4 Credibility 13 29 36 22 100
Carrier
5 9 30 17 7 63
aspiration
Total 101 208 281 152 742
68
Analysis of the above diagram shows that housewives are the most consistent of
all the four groups, as they scored 37% well along Retired class come third 21%
among high performers and thus is equivalent to stars. Retired class in my group
were less in number and hence hard an edge over the remaining two groups.
Working class comes second 28% they can be considered to be as this group is
capable of delivering good results but are not able to do so because of certain
professional/personal reasons.
Student class scored 14 % classes are considered as they score low on all
parameter they had on business and consistency. Thus we can conclude that
Housewives are best suited for being FPA’s , and Aviva Life Insurance should
focus more on luring housewives into being FPA’s by understanding their
problems, needs, aspirations and ultimately channel zing their efforts for
delivering results. Thus creating value for the company and in the process for
themselves. This being an untapped segment has tremendous potential within
and Aviva should seriously include this as a future strategy to combat
competition from their rivalry.
69
Recruitment Mix model helps companies understand the model suited people for
the job of FPA’s & also gives insights into the type of clients. They are capable
for beginning. As shown above, the percentage are indicative of the ideal
recruits for FPA’s Thus companies should focus on their Recruitment & innovate
new Strategies for increase their Presence.
70
The project is an effort to create an ideal recruitment mix for Reliance Life
Insurance. The recruitment mix is for Financial Planning Advisor’s (FPA) who can
bring in business for the company. The groups were broadly classified as
Students, Housewives, Working Class and Retired Class.
Out of the four groups Housewives were found to deliver maximum returns to the
company as they fared extremely high in their Parameters among the high
percentage got the Housewives class, Retired class come third 21% among high
performers and thus is equivalent to stars. Retired class in my group were less in
number and hence hard an edge over the remaining two groups.
Thus to conclude we can say that housewives & Retired class segment s hold
tremendous potential for delivering maximum benefits for the company as they
are capable of convincing, understanding and eventually bring in clients for the
company. Retired class though less in number was able to deliver as well. Thus
housewives and retired class were found to be working efficiently in their roles of
FPA’s.
71
The model can be of great help for Reliance Life Insurance to recruit the right
person for the FPA post, it can be used effective strategic model to build effective
Sales force.
Housewives should be given more priority in future business plans of Reliance

Life Insurance because if properly utilized they can serve to be an asset for the
organization and give an edge over competitors. It was found that if trained
properly housewives were capable of delivering even more returns. Housewives
can take up the role of FPA’s in an even better way if they are given rewards and
their work is acknowledged.
Thus my suggestion would to focus on housewives and ultimately make them an

asset for the company. I have some points to bold for Student class and Working
class have a chance to build their effective Carrier through FPA’s by proper
Training and good returns provided to them.
72
BOOKS
 Anastasi Anne, Urbina Susana

Psychological Testing,
Pearson Education, 2003.
 Mcshane S, Glinow A M, Sharma R,

Introduction to Organization Behavior,
Tata McGraw Hills, 2006.
E-Books
 D.Constantine-Simms,
Everything you need to know to pass psychometric tests.
Magazines
HRM Review February 2007
Search Engines
Google
Bibliography
 C.R. Kothari, Research methodology
 Dr. D.D Sharma, Marketing Research
Website
www.reliancelife.co.in
73

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A STUDY TO DEVELOP AN IDEAL RECRUITMENT MIX FOR A FPA SALES FORCE

A STUDY TO DEVELOP AN IDEAL RECRUITMENT MIX FOR A FPA SALES

Submitted To: Submitted By:

Rukmini Devi Institute of Advanced Studies

Guru Gobind Singh Indraprastha University

About Reliance Life Insurance

A Project is never the accomplishment of an individual. Rather, it is an

My Sincere thanks to Mr. Tripthi N Rajan, Branch Manager, Kodungallur,

I am thankful to Mr.Subakaran, guide and faculty at Holy Grace Academy of

Reliance Group founded by Dhirubhai H. Ambani is India's largest business

ANIL DHIRUBHAI AMBANI ENTERPRISES GROUP OF COMPANIES

Reliance - Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group

Reliance – ADA Group’s flagship company, Reliance Communications, is India's

Major group constituents:

At present, the entire Reliance Group is handled by three agencies, Mudra,

New logo for Anil Ambani group

innovative, enterprising , and technology

Anil Dhirubhai Ambani - Chairman

Regarded as one of the foremost corporate leaders of contemporary India, Shri

Amitabh Jhunjhunwala - Vice-Chairman

Shri Amitabhabh Jhunjhunwala, 51, is a Fellow Chartered Accountant. He has

Rajendra Chitale - Independent Director

Shri Rajendra P. Chitale, 46, an eminent Chartered Accountant, is the Managing

National Securities Clearing Corporation Limited, Asset Reconstruction Company

• Reliance Life Insurance

• Demat Account Services

• Reliance Mutual Funds

• Reliance General Insurance

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

What is Life Insurance?

The main reason to buy Life Insurance is to

Types of Life Insurance Policies

• Most Insurance policies are a combination of Savings & Protection.

• Products are formulated by either increasing or decreasing either one of

• These combinations can be broadly divided into 4 groups

- Endowment Policies : Whole Life; Unit Linked etc

- Annuities & Pension

Life Stage in Life Insurance

Peak earning age

No dependents/ Need for

Need Analysis in life Stages

1.Go on a holiday Short Term

1.High Debt, high

1.Retirement Profits or Unit Linked

Life Stage Example Annuitie

Hello, I am Philip, sailor.

Products of Life Insurance

Life Insurance products are usually referred to as ‘plans’ of insurance. These

Term Life Insurance

Whole Life Insurance

Solutions for Individuals - RGI

1. Reliance Term plan

Savings & Investment Plans

1. Reliance Total Investment Plan Series I - Insurance

6. Reliance Market Return plan

1. Reliance Total Investment Plan Series II – Pension

Market Return Plan

Reliance Endowment Plan: Reliance Life Insurance’s Reliance Endowment Plan

Reliance Cash Flow Plan:

Reliance Child Plan:

Reliance Term Plan:

Reliance Whole Life Plan: