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    Pradeep dubey 20 Pradeep dubey 20 Document Transcript

    • A SUMMER TRAINING REPORT On “Market Segmentation in Sbi life Insurance” At SBI Life Insurance Co Limited Alakhnanda Tower 3rd Floor, City Centre, Gwalior (M.P) Submitted To Jiwaji University Gwalior For the partial fulfillment of the award of Master of Business Administration (2011-2013) Submitted By (Pradeep Dubey) Prestige Institute of Management Opposite Deen Dayal Nagar, Bhind Road, Gwalior Ph.0751-2470724, Fax-0751-470516 Website: prestigegwl.org 1
    • DECLARATIONI am Pradeep Dubey, student of MBA IInd semester of Prestige Institute ofManagement Gwalior; hereby declare that the Summer Training Reportentitled “Marketing Strategies Activity In Sbi life Insurance” in Gwalior(M.P) is submitted by me in partial fulfillment of the requirement for the Masterof Business Administration Degree.I assure that this summer training report is the result of my own efforts and thatany other institute for the award of any degree or diploma has not submitted it.Place: Pradeep DubeyDate: MBA-IInd sem. 2
    • PrefaceNow days in this dynamic era Insurance is coming as an important tool forreducing the effect of uncertainty and risks. It becomes an integral part andindispensable part of human life. There are various types of Insurance Plansto provide protection from loss and uncertainties.So is a great opportunity for me to study on “People’s Perception andawareness are concerning “Marketing Strategies Activity In Sbi LifeInsurance” in Gwalior (M.P). The purpose of this research is to knowawareness and importance among peoples regarding “Marketing StrategiesActivity in Sbi Life Insurance” in Gwalior (M.P). Pradeep Dubey M.B.A IInd sem 3
    • CERTIFICATEThis is to certify that Pradeep Dubey Student of MBA IInd Sem of PrestigeInstitute Of management Gwalior, has successfully completed his Summertraining report. He has prepared this report entitled “Marketing StrategiesActivity In Sbi Life Insurance” under my direct supervision and guidance. Prof. C K Dantre (Faculty Guide PIMG) 4
    • ACKNOLEDGEMENTSummer Training Report is a combined effort including this one also, so Iwould like to thank to all who have helped me completion of this reportpurposeful.We would like to extend our heartfelt gratitude to Prof. Ashish Mehra for hisguidance throughout the project. Without his support and cooperation we wouldhave failed in our endeavors and targets in this project.I also want to thank to Mr. Yog Mishra, Unit Manager in SBI LIFE InsuranceCo.Ltd. (Sales Dept.), Prof. C K Dantre my mentor and, coordinator assistingme in completion of this project.Further I would like to thanks to all of my Teachers, Staff Members, LibraryMembers, and Friends for their valuable support and advices which helps me alot to completing this project report purposeful. Pradeep Dubey M.B.A IInd sem 5
    • TABLE OF CONTENTSSEQUENCE PG. No1. Introduction • History of the Insurance2. Company Profile • Organizational structure • Financial Performance • Recruitment Process • Welfare activity • Product and market competitors • Market Share • Various productlines • Financial analysis • SWOT analysis3. Introduction of the topic4. Objectives of the Study5. Results and Discussion6. Analysis and findings7. Limitations8. Recommendations & Suggestions9. CONCLUSION  Reference  Annexure 6
    • History of Insurance: at a glanceLife Insurance in its modern form came to India from England in the year 1818. Oriental ifeInsurance Company started by Europeans in Calcutta was the first life insurance company onIndian Soil. All the insurance companies established during that period were brought up withthe purpose of looking after the needs of European community and Indian natives were notbeing insured by these companies. However, later with the efforts of eminent people likeBabu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. ButIndian lives were being treated as sub-standard lives and heavy extra premiums were beingcharged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indianlife insurance company in the year 1870, and covered Indian lives at normal rates. Starting asIndian enterprise with highly patriotic motives, insurance companies came into existence tocarry the message of insurance and social security through insurance to various sectors ofsociety. Bharat Insurance Company (1896) was also one of such companies inspired bynationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies.The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operativeInsurance Company took its birth in one of the rooms of the Jorasanko, house of the greatpoet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance andSwadeshi Life (later Bombay Life) were some of the companies established during the sameperiod. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,the Life Insurance Companies Act, and the Provident Fund Act were passed. The LifeInsurance Companies Act, 1912 made it necessary that the premium rate tables and periodicalvaluations of companies should be certified by an actuary. But the Act discriminated betweenforeign and Indian companies on many accounts, putting the Indian companies at adisadvantage. The first two decades of the twentieth century saw lot of growth in insurancebusiness. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming ofinsurance companies many financially unsound concerns were also floated which failedmiserably. The Insurance Act 1938 was the first legislation governing not only life insurancebut also non-life insurance to provide strict state control over insurance business. The demandfor nationalization of life insurance industry was made repeatedly in the past but it gatheredmomentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the 7
    • Legislative Assembly. However, it was much later on the 19th of January, 1956, that lifeinsurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indiancompanies and 75 provident were operating in India at the time of nationalization.Nationalization was accomplished in two stages; initially the management of the companieswas taken over by means of an Ordinance, and later, the ownership too by means of acomprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the19th of June 1956, and the Life Insurance Corporation of India was created on 1st September,1956, with the objective of spreading life insurance much more widely and in particular to therural areas with a view to reach all insurable persons in the country, providing them adequatefinancial cover at a reasonable cost.Some of the important milestones in the life insuranceBusinesses in India are:1818: Oriental Life Insurance Company, the first life insurance company on Indian soilstarted functioning.1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company startedits business.1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate thelife insurance business.1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.1938: Earlier legislation consolidated and amended to by the Insurance Act with the objectiveof protecting the interests of the insuring public.1956: 245 Indian and foreign insurers and provident societies are taken over by the centralgovernment and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, witha capital contribution of Rs. 5 crore from the Government of India.The General insurance business in India, on the other hand, can trace its roots to the TritonInsurance Company Ltd., the first general insurance company established in the year 1850 inCalcutta by the British. 8
    • Some of the important milestones in the general insuranceBusinesses in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes ofgeneral insurance business.1957: General Insurance Council, a wing of the Insurance Association of India, frames a codeof conduct for ensuring fair conduct and sound business practices.1968: The Insurance Act amended to regulate investments and set minimum solvencymargins and the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the generalinsurance business in India with effect from 1st January 1973107 insurers amalgamated and grouped into four companies’ viz. the National InsuranceCompany Ltd., the New India Assurance Company Ltd., the Oriental Insurance CompanyLtd. and the United India Insurance Company Ltd. GIC incorporated as a company.Indian Insurance industry:Indian Insurance comprised mainly two Players.  Life Insurer: the important are.  Life Insurance Corporation of India (LIC)  HDFC Standard Life Insurance Company Ltd.  Max New York Life Insurance Co. Ltd.  ICICI Prudential Life Insurance Company Ltd.  Kodak Mahindra Old Mutual Life Insurance Limited.  Birla Sun Life Insurance Company Ltd.  Tata AIG Life Insurance Company Ltd.  SBI Life Insurance Company Limited.  ING Vysya Life Insurance Company Private Limited.  Bajaj Allianz Life Insurance Company Limited.  MetLife India Insurance Company Pvt. Ltd.  Sahara India Insurance Company Ltd. 9
    •  Aviva Life Insurance Co. India Pvt. Ltd.General InsurerGeneral Insurance Corporation of India (GIC) GIC has four subsidiary companies namely:  The Oriental Insurance Company Limited.  The New India Assurance Company Limited.  National Insurance Company Limited.  United India Insurance Company Limited.  Royal Sundaram Alliance Insurance Company Limited.  Reliance General Insurance Company Limited.  TATA AIG General Insurance Company Ltd.  Bajaj Allianz General Insurance Company Limited  ICICI Lombard General Insurance Company Limited.  Cholamandalam General Insurance Company Ltd.  HDFC-Chubb General Insurance Co. Ltd. 10
    • Introduction SBI LIFE – a joint venture between 74% 26%SBI Life Insurance is a joint venture between the State Bank of India and Cardiff SA ofFrance. SBI Life Insurance is registered with an authorized capital of Rs 1000 core and a paidup capital of Rs 350 carore. SBI owns 74% of the total capital and Cardiff the remaining 26%State Bank of India enjoys the largest banking franchise in India. Along with its 7 AssociateBanks, SBI Group has the unrivalled strength of over 14,000 branches across the country, thelargest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The EuroZone’s leading Bank. BNP is one of the oldest foreign banks with a presence in India datingback to 1860. It has 9 branches in the metros and other major towns in the country. Cardif is avibrant insurance company specializing in personal lines such as long-term savings, rotectionproducts and creditor insurance. Cardif has also been a pioneer in the art of selling insuranceproducts through commercial banks in France and 29 more countries.SBI Life Insurance’smission is to emerge as the leading company offering a comprehensive range of LifeInsurance and pension products at competitive prices, ensuring high standards of customerervice and world class operating efficiency. The company plans to make the insurance buyingprocess quick, simple and based on well-informed judgment. In 2004, SBI Life Insurancebecame the first company amongst private insurance players to cover 30 lacks lives. Thecompany expects to carve a niche in the Indian insurance market through extensive productinnovation and aims to provide the highest standards of customer service through atechnological interface. To facilitate this, call centers have been already installed and helplines will be installed and customers will have access to their accounts through the Internet orthrough SBI branches. The company proposes to make available ready liquidity to its LifeInsurance policies by way of loans at SBI counters. This will make Life Insurance a liquidasset in the financial portfolio of households. SBI Life Insurance is uniquely placed as a 11
    • pioneer to usher bank assurance into India. The company hopes to extensively utilize the SBIGroup as a platform for cross-selling insurance products along with its numerous bankingproduct packages such as housing loans, personal loans and credit cards. SBI’s access to over100 million accounts provides a vibrant base to build insurance selling across every regionand economic strata in the country.Group Corporate.SBI Life extensively leverages the SBI Group as a platform for cross-selling insuranceproducts along with its numerous banking product packages such as housing loans andpersonal loans. SBI’s access to over 100 million accounts across the country provides avibrant base for insurance penetration across every region and economic strata in the countryensuring true financial inclusion. 12
    • OGANISTIONAL STRUCTURE OF AGENCY CH R.D R.S.M ED A.S.MMD & CEO.M.N RAO S.R.D.S. M D.S.M SR.BSM B.S.M A.B.S.M AGENCY SCNIOR TM.A.B.S. U.M AGENCY MANAGE MANAGER M 13
    • Management Style MANAGEMENT STYLE FINANCE & ACCOUNTS INVESTMENT ACTUARY IT HR MARKETING OPERATIONS NEW BUSINESS UDNERWRITING CLAIMS POLICY SERVICING ISSUE & PROBLEM SOLVING 14
    • Financial PerformanceSBI LIFE POSTS NET PROFIT OF Rs. 301 CroresSustains its all-round performance and expansion, YTD DEC FY 10 - 11:√ Increase in net profit by 52%√ Branch network increases to 628 branches√ Employee strength surges to 7334 employees√ Moves to a new, larger and integrated corporate office buildingMumbai, January 18, 2011: Sustaining its holistic business performance, SBI LifeInsurance, the leading new generation life insurer, has posted impressive results during thefirst nine months of the FY 10 - 11. Growing by 52%, the company has set a new milestone,by crossing the landmark figure of Rs 300 Crores in net profit during the period. Reflectingits superior efficiency in it business operations, the company maintains the lowest “expenseto GWP (Gross Written Premium)” ratio in industry of 7.43%. SBI Life’s Gross WrittenPremium collection grew by 28% to Rs. 7,770 Crores The Asset Under Management jumpedby 50 % to Rs 36, 861 Crores from Rs. 24, 613 Crores as on 31st December, 2009. Thecompany has uniquely expanded by adding 134 new branches and increasing number ofemployees by 1349, during the period, despite tough external conditions. The corporate officehas moved to a newly- acquired building in fast evolving commercial hub of Mumbai. Thenew corporate building was inaugurated by Shri R Sridharan, MD and GE (A & S), StateBank of India. Commenting on the performance, Mr. M N Rao, MD & CEO, SBI LifeInsurance said “Through continued emphasis on strengthening business fundamentals,namely customer centricity and operational excellence, we are confident that we will sustainour profitable growth performance. We remain committed to catering to the life insuranceneeds of Indian population encompassing all socio-economic and geographical segments.”Highlights of YTD Dec FY 10 - 11Gross Written Premium Rs 7,770 Cr 28% ↑Premium New Business Rs 4,699 Cr 6% ↑Asset Under Management ( Y-o-Y) Rs 36, 861 Cr 50% ↑All key distribution channels namely, Bancassurance, Agency and Corporate Solutions havedemonstrated profitable business growth during the period. The Agency Channel provided asignificant thrust to the overall business by contributing 44% of total premium as a result of 15
    • superior productivity levels of Insurance Advisors. Bancassurance witnessed a remarkablegrowth of 43% and contributed to over 36% cent of the total premium and Group Corporatecontributed to 18% of total premium. In the recent months, the company introduced a seriesof “Simple and Smart” products that encompass new IRDA guidelines compliant ULIPs,Pure Protection and Traditional products. The rapidly launched six new ULIPs cater to theinvestment needs of the varied customer segments. These include HNI-targeted Smart Elite,NAV-Guaranteed Smart Performer, No Medicals ULIP – Saral Maha Anand, Flexible ULIP– Unit Plus Super, Child Plan – Smart Scholar and ULIP with Automatic Asset Allocation –Smart Horizon. Innovatively-featured, non-ULIPs rolled out are No-Medicals, pureprotection plan – Saral Shield, HNI targeted, pure protection plan – Smart Shield and NoMedicals, traditional savings plan – Saral. One of the highlights towards achieving customerservice excellence has been the national launch of customer care initiative ‘SMS SOLVE”. Afirst-of-its kind in the life insurance industry, the service allows customers to have theirgrievances resolved in a simpler, paperless and faster manner. An innovative SMS-basedservice, SMS SOLVE provides customers the ease of accessing SBI Life 24 X 7. Customersare able to register their grievances about SBI Life’s service by merely sending SMS‘SOLVE’ to 56161. Testifying its multi-dimensional excellence, the company has baggednumerous recognitions and awards recently. Being adjudged the best, SBI Life’s annualreport has won Gold Shield from Institute of Charted Accountants of India (ICAI) forexcellence in Financial Reporting. Also, International Certification Services (ICS) hasawarded SBI Life "ICS Quality Champion Award - 2010" for continual improvement in theQuality Process. NDTV Profit Business Leadership award and Best Life Insurer 2010,Runner Up, award by Outlook Money are the other key media recognitions that have beenconferred to SBI Life. Retaining the ISO 9001:2000 Certification for superior claim process,globally topping the prestigious international MDRT Table and reaffirmation of CRISIL“AAA/Stable” rating are other key distinctions achieved by the company during initialcurrent financial year. As per the latest IRDA report, as of November 2010, the company hasa market share of 18.27% among private life insurers and a total market share of 5.10 %. 16
    • Management PhilosophyVision :"To be the most trusted and preferred life insurance provider "Mission"To emerge as the leading company offering a comprehensive range of life insurance andpension products at competitive prices, ensuring high standards of customer satisfaction andworld class operating efficiency, and become a model life insurance company in India in thepost liberalization period".Values • Trustworthiness• Ambition• Innovation• Dynamism• Excellence 17
    • The recruitment process flowchart that we have gone through inour project period GETTING KNOWLEDGE ABOUT THE COMPANY AND RECRUITMENT GETTING KNOWLEDGE ABOUT BENEFIT OF LIFE ADVISOR GETTING KNOWLEDGE ABOUT DOING THE SALES CALL SEGMENTING THE MARKET TARGETING THE MARKET PROCESS OF CAPCTURING ELEGABLE CANDIDATE FILLING OF I.S.F. FORM SHORTLISTING ON THE BASIC OF ‘Q’ SCORE CONDUCT AN INTERVIEW BOP PRESENTATION FILLING OF COMPULSORY IRDA /NAAF FORM THREE DAYS IRDA REFRESHER TRAINING CONDUCTION OF EXAMINATION TWO DAYS PRODUCT TRAINING 18
    • Welfare ActivitiesGift Drishti One of our corporate ethos, enhancing our SBI Life brand value, is about giving back to the society. In line with our Corporate Social Responsibility (CSR) initiatives, the cause of supporting our Elderly Citizens was initiated. Incidence of cataract blindness, annually at 3.28 million, is one of the mostprevalent health ailments suffered by old people, particularly in rural pockets of our country.On the occasion of World Elders Day on 1st October, CSR initiative - "Gift Drishti"(Restoring vision) was launched in partnership with HelpAge India, a registered nationallevel voluntary body, working for the cause of disadvantaged aged persons. Restoring visionis done through Intra Ocular Surgery (IOL). SBI Life employees made monetarycontributions to the cause. SBI Life donated twice the sum contributed by its employees. Eyesight for thousands of elderly citizens was restored across the rural parts of the country.Gift Drishti Camps 19
    • Read India Pledge SBI Life undertook the Corporate Social Responsibility (CSR) initiative, aimed at driving the cause to make children read and write. The campaign, "Read India Pledge" sensitized general public towards the cause and urged them to pledge & support the cause monetarily or by devoting time.Thecampaign was partnered by Pratham, one of the leading child-cause related NGOs and RadioMirchi, a leading radio station.Read India Camps 20
    • Distribution channels of SBI Life Insurance SBI Life Credit Bancassurance Agency Corporate Life Group Corporate Insurance Agents Brokers AgentsInsurance Agents:Insurance agents are those individual persons who work for one particular insurancecompany. An insurance agent cannot work for more than one particular at one point of time.Corporate Group:Targeting Corporate for Gratuity and Group Pension products.Agency Channel:Agency channel have the most productive and active force of more than 25,000 Advisor. Ourapproach is to provide door-to-door need-based insurance solution to customers after takinginto account protection and wealth creation needs. Agency channel has grown more than300% over the last year and contributed more than 45% to the company’s new businesspremium collection. 21
    • PRODUCT & MARKET Types of Products Individual Group Products Products Credit Guard Smart Performer Sampoorn Smart Unit Plus Super Suraksha Plus Soral Maha Anand RETIREMENT SOLUTIONS Smart Elite Dhanrashi Smart Scholar Swarna Ganga Smart Horizon Swarna Jeevan Smart Weath Assare Cap Assure 22
    • PROCESS OF INSURANCE OPERATIONA Without prejudice to the other express terms and conditions of this Agreement and all andany implied rights of SBI Life Life Insurance after the termination of this Agreement, theAdvisor shall not: • Use for his own benefit or the benefit of any other person; or • Disclose to any person; • Through any failure to exercise all due care and diligence, cause or permit any unauthorized disclosure of any trade secrets or confidential information of or relating to SBI Life Life Insurance which he may have received, used or obtained during the term of this Agreement. Any such trade secrets and confidential information shall at all times remain the property of SBI Life Life Insurance. a. For the purposes of this clause, trade secrets and/or confidential information shall include, but not be limited to, lists of and information concerning customers, Policyholders, employees, Advisors and agency managers of SBI Life life Insurance, information relating to the working of any product, process, invention, improvement or development carried on or used by SBI Life Life Insurance, information relating to research projects, know-how, prices, rates, discounts, mark-ups, business strategies, marketing, tenders and any price sensitive information concerning SBI Life Life Insurance. For the avoidance of doubt, the obligation of confidentiality in this clause extends to trade secrets and confidential information howsoever stored, whether in hard copy documents, records or computer programs. b. Access to SBI Life Life Insurance computer resources, electronic data and the like may be given to and shall be utilized by the Advisor only for the purpose of carrying out the duties embodied in the Agreement. c. The forgoing provisions on confidentiality and non-disclosure also apply to employees of both the parties to this Agreement and the sad parties assume liability for the breach or violation in any manner by their employees. 23
    • SALES & MARKETINGKey MilestonesFinancial Year 11-12:Awarded the most coveted NDTV Profit Business Leadership Award, twice in a row, 2010 &2011.Awarded ‘Most Trusted Life Insurance Brand - II By The Economic Times, BrandEquity and Nielsen, Most Trusted Brands 2011.Globally topped the prestigious Million Dollar Round Table (MDRT) for having the aximumnumber of MDRT members, for three years consecutively.CRISIL reaffirmed its AAA / Stable rating to SBI Life, indicating highest financial strengthto meet policyholder obligations. • ICRA reaffirmed its iAAA rating indicating highest claims paying ability and a fundamentally strong position. • Won one of the most prestigious quality distinction, IMC Ramkrishna Bajaj National Quality Awards 2011- "Certificate of Merit" • Awarded Silver Shield by ICAI for Excellence in Financial Reporting for FY 2010 – 11 under the Insurance category • Won ‘Best Presented Accounts Award‘by The South Asian Federation of Accountants (SAFA), in the Insurance Category for the Annual Report FY 2009-10.Financial Year 10-11: • SBI Life won the coveted Bloomberg UTV Financial Leadership Award 2011 - "Life Insurer of the year". • Won the most coveted NDTV Profit Business Leadership Award 2010.Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for having themaximum number of MDRT members. Awarded the Gold Shield by Institute of CharteredAccountants of India (ICAI) for Excellence in Financial Reporting. Won the ‘ICS Quality 24
    • Champion Award 2010’ for Continual Quality Improvement. Adjudged Best Life Insurer2010 - Runner Up by Outlook Money • Launched an innovative customer care initiative - SMS ‘SOLVE’ for prompt Grievance Redressal. • Appraised at Maturity level 3 of Capability Maturity Model Integration (CMMI) Version 1.2 for its ISG Division.ICRA reaffirmed ’iAAA’ rating to SBI Life, indicating highest claims paying ability andmeeting policyholders obligations.CRISIL, country’s leading rating agency, reaffirmed its highest financial rating AAA/Stableto SBI Life.Financial Year 09-10: • Reported a robust Net Profit of Rs.276 Crores. • Crossed Rs.10,000 Crores in Gross Written Premium (GWP). • Ranked No.1, in New Business Premium, amongst private life insurance companies. • Assets under Management (AUM) grew by 96% to Rs.28, 551 Crores. • Globally topped the prestigious MDRT 2009 for having Maximum number of MDRT Members. • ICRA reaffirmed iAAA rating to SBI Life indicating highest claims paying ability. • Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security Management System (ISMS). • Retained ISO 9001:2000 certificate for superior claim settlement process.Financial Year 08-09: • Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members. • Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008". • CRISIL, country’s leading rating agency, reaffirmed its highest financial rating AAA/ Stable to SBI • Life. In 2007, SBI Life became the first life insurer in India to receive this rating from CRISIL. • ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance 25
    • • Retained ISO 9001:2000 certificate for superior claim settlement process.Financial Year 07-08: • Ranked amongst global top five life insurance companies in the number of MDRT members. • Rated as the ’The Most Trusted Private Life Insurer’ according to a survey conducted by Brand quity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau. • Received the highest financial rating ’AAA’ from CRISIL. • Forayed into micro insurance with the launch of ’Grameen Shakti’ in Bhubaneshwar, Orissa for the economically underprivileged sections of society. • Received ISO 9001: 2000 certification for superior claim settlement process. • Received CMMI Level 3 certification for IT processes and software development capabilities.Financial Year 06-07: • Second consecutive year of Profitability. • More than 6.40 Million lives covered Financial Year 05-06: Reported a robust net profit of Rs. 2.02 Cr 26
    • MARKET SHARESBI LIFE LEADS GLOBALLY AT MILLION DOLLAR ROUND TABLE (MDRT) 2011Mumbai, September 28, 2011 - SBI Life Insurance, the leading private life insurer, retains theunique distinction of being the only Life Insurer from India, topping the prestigious MillionDollar Round Table (MDRT) 2011 across the globe. For the third consecutive year, SBI Lifehas reached the pinnacle of the international coveted league by having 2,661 MDRTmembers in 2011. Amongst these, 200 have achieved Court of Table (COT) and 30 Top ofTable (TOT) membership statuses. SBI Life has been consistently featuring amongst the topfive insurers, worldwide, since last five years. Globally, the company ranked 5th in 2007, 3rdin 2008, and 1st in 2009, 2010 and 2011. Reputation, standard of sales excellence and highethical standards are some of the key values that are associated with the MDRT brand. TheMDRT membership is an exclusive honor that is achieved by less than 1 percent of theworlds life insurance and financial services advisors. Life Insurance professionals aspire toattain the privilege of being an MDRT member Mr. M. N. Rao, MD & CEO, SBI Life, said,"Across the globe, both, Agent and Insurance Facilitator at bank, continue to be a reliablesource of personal financial advise. Our accomplishment on a global platform testifies theprofessional approach followed by our distributors. We will continue to focus on equippingthem with relevant support to enable advisory-based delivery of life insurance solutions toour customers." Mr. Rajiv Gupta, Executive Director, Marketing, SBI Life added "Thisaccomplishment resonates our commitment towards creating quality advisors who can belooked upon as world-class benchmarks. Providing need based solutions, professional adviceand unmatched service will remain the focal delivery points for our Advisors ". Anopportunity to represent one of the most trusted brands in the country, superior trainingprogram and attractive reward and recognition programmes are some of benefits availed bySBI Life Insurance Advisors. Mr. Anand Pejawar, Executive Director, Marketing, SBI Lifeadded "In addition to highly productive Retail Agency Channel, our integrated bancassuranceapproach continues to create value for Bank customers and Facilitators of our products. Thebank employee, involved in the sale of the insurance products, has rapidly evolved to deliverholistic banking and insurance solutions to their customers making the bank truly a supermarket for all financial requirements". During the first financial quarter ending June 2011,SBI Life recorded a profit of Rs. 144 Crores, registering an impressive profit growth of 27%over the corresponding period last year. The total premium of the company grew by 13 % toRs. 1935 Crores during the period. The new business premium collected, during the period, 27
    • stood at Rs. 892 Crores. Further, the Assets under Management grew by 33%, over thecorresponding period last year, to Rs. 40,070 Crore as on 30th June 2011. The companycontinues to have the lowest expense to GWP (Gross Written Premium) ratio in industry of10.14%. Uniquely, despite tough external conditions, SBI Life continues to expand itspresence. During the current financial year, the company has introduced 81 branches andrecruited 1657 employees. SBI Life ranks number one amongst private players, as per thelatest IRDA report, July 2011. The company has a market share of 21.6% among private lifeinsurers and a total market share of 6%.About MDRT: MDRT is an association of the worldsbest life insurance sales (advisors) professionals. Founded in 1927, MDRT is an international,independent association of nearly 36,000 of the worlds leading life insurance and financialservices professionals from 76 nations and territories, representing over 450 companies.MDRT members are recognized as skillful professionals who are considered to be among thebest in the industry, perform outstanding client service, and have achieved the higheststandard of sales excellence in the life insurance and financial services business.Rank Company Name Country 2010 Members1 SBI Life Insurance India 2,6612 New York Life USA 2,0673 Samsung Life Insurance Rep of Korea 2,0524 LIC Of India India 1,9935 Northwestern Mutual USA 1,26013 HDFC Standard Life India 48921 ICICI Prudential Life India 34131 TATA AIG Life India 20733 Max New York Life India 203 SWOT ANALYSIS  SBI LIFE INSURANCE CO. LTD AT A GLANCE  Joint venture between State bank of India and BNP Paribas Assurance. 28
    •  SBI is the largest bank in India and BNP Paribas Assurance is France·s largest Insurance company.  Investments: SBI-76% and BNP Paribas 24%.  The Company started its operations in 29th March2001.  Provides Life Insurance Solutions to Individuals and Corporates.STATE BANK OF INDIA:  Largest and oldest banking franchise of India dating back to 1806 AD.  6 Associate Banks, 16000 Branches all over the country.BNP PARIBAS ASSURANCE:  4thLargest Insurance Company in France.  The Insurance arm of BNP Paribas Bank, the largest bank of France.Operations in 41 countries around the world.  One of the oldest foreign banks with a presence in India dating back to1860 AD.  A worldwide leader in Creditor insurance products offering protection toover 50 million clients. STRENGTHS  No.1 Private Life Insurance company in India (as on 2009-10).  Leverages the State Bank Group Relationship as a platform for cross-selling insurance products.  As it sells its products through banc-assurance division of SBI,therefore less need on spending money for establishing separate branch offices.  Market share of 18.34% among private life insurers and a total market share of 6.44%.  SBI·s access to over 100 million accounts across the country provides for a vibrant base for insurance penetration in the country.  Growth at a rate of 40%.  IRDA has never banned any of SBI Life·s product.  Only private life insurance company to have posted profits (Rs 276 crores for they earended March 31st, 2010) and declared bonus. 29
    •  Solvency ratio of 2.2 and share capital of Rs.1000 Crore, SBI Life is one of the most capita lefficient life insurance companies in the industry.  Continues to maintain the lowest´expense to GWP (Gross Written Premium)µ ratio in industry of 6.5%  Globally topping the prestigious international MDR Table (Million DollarRound Table ²30 Lacs collections by an agent in a year).  One of the market leaders in Unit Linked Plans by offering products asSmart ULIP, UNIT +, UNIT +2, UNIT +3 etc.  Profitable business growth demonstrated by all key distribution channels.  Certifications of ISO 9001:2000, ISO 2700:2005 (Information security) AAA rating by ICRA, CRISIL etc.  Superior Claims Settlement Process (certified by ISO 9001:2000).  Asset Under Management jumped by 96% to Rs 28,551 Crand New Business Annualised Premium Equivalent (APE) by 37% to Rs.6, 358 Crores.  Restructured Customer Grievances Redressal Mechanism. Regional Directors and Regional Channel Heads resolve customer complaints at local level.  Through ´My policy µ portal in www.sbilife.co.in,customers can view all policy details including Payment Summary, Fund Value and Premium Calendar.WEAKNESSES  Less sales force than others (LIC·s 3 field advisor: SBI·s 1field advisor)  Low productivity of banc-assurance people.  People at top management/decision making level are from SBI. So,typical PSU attitude in many aspects.  Hassle free online purchase of insurance policy is not available  Is less aggressive in generating business compared to other private life insurance players.  Over dependence on the banc-assurance channels.  Less branch office compared to others.OPPORTUNITIES  As only 12% of the 40 crores insurable population is insured, thus, a huge opportunity to reach out to more people. 30
    •  It has an edge over LIC as far as service is concerned. So, it can grab moremarket share from LIC by giving it a tough competition.  Not so much requirement on establishment of Brand (already have a good brandimage of SBI).  A huge revolutionary change (PARIBARTAN) in SBI is going to happen,so there is an immense opportunity for SBI Life in future.  Huge market potentiality in Rural markets which has been untapped till now.  Higher market penetration by being more aggressive in banc-assurance channelof distribution.  Huge opportunity to grab customers by being more active through otherdistribution channels as mall-assurance, brokers etc..  Lower premium ULIP policy (<10000) can attract lower income segment market.THREATS Huge competiti on from other pre-existing 22 players in the Life Insurance sector in India. ICICI Prudential, the market giantal ready pipped SBI Life to regaint opposition, garnering new business worth Rs.303 crores (source Economic Times,26th May·10) New entrants in the pipe line of the life insurance business. New tie-ups of competitors with innovative distribution channels.The New Insurance guidelines from September·10 onwards is really a big challenge or SBI Life·s bus SBI LOCATION OF OFFICES:SBI has a huge network of offices for providing service related to Insurance all overthecountry. 31
    • LocationRegistered office: SBI Life Insurance Co. Ltd. Central Processing Centre Kapas Bhawan, Sector 10, CBDBelapur, Navi Mumbai 400614.Telephone No: 022-6645 6241Email: info@sbilife.co.inCorporate Office:SBI Life Insurance Co. Ltd, "Natraj", M.V. Road & Western Express Highway Junction,Andheri (East), Mumbai - 400 069Summer training office locationBranch office:Sbi Life Insurance Co. Ltd. 3rd Floor, Alaknanda Tower, City Center.474001. Gwalior (M.P) Tel.0 751- 4024 497 32
    • PROCESS OF CAREER GROWTH OF INSURANCE ADVISORAs we were assigned to recruit life advisors, the very first thing that we required wasknowledge about benefits and opportunity because to motivate a prospective candidate to 33
    • become an Advisor, we need to convenience the Advisor about the opportunity and carriergrowth in SBI Life.Benefit • Commission • Renewal Commission • Bonus • Quarterly gifts • ACER club membership facility • MDRT • Promotion factor for an agent • Domestic and International ConventionsOpportunity/ • Advisor require no capital investment • They can chose there own working hour according to there convenience. • They are there own boss. • Unlimited earning potential • Represent a strong trusted brand.OPPORTUNITYAdvisor requires no capital investment:- For starting any business we require a hugeinfrastructure but here in SBI Life the Advisors do not require any capital investment otherthan RS. 825 IRDA examination fees, which is very nominal and on return the Advisors getfree phone calling facility, Xerox facility etc. They can choose there own working houraccording to there convenience:- Advisor are free to work in there convenient hours because 34
    • the advisors working here comes from different profession like Doctor, Engineer, Student,Medical Representative, contractor etc. They are there own boss:- There is no boss to giveyou target rather you are your own boss and can work according to your pleasure andearning requirement. Unlimited earning potential:- As the payment is made on commissionbasis so there is no limit to earning. A person working hard can go to any limit with rewardand recognition in extra. 35
    • MARKETING STATEGIES & ACTIVITYMarketing strategy consists of the analysis, strategy development, and implementationactivities in: “Developing a vision about the market(s) of interest to the organization,selecting market target strategies, setting objectives, and developing, implementing, andmanaging the marketing program positioning strategies designed to meet the valuerequirements of the customers in each market target”. Strategic marketing is a market-drivenprocess of strategy development, taking into account a constantly changing businessenvironment and the need to deliver superior customer value. The focus of strategicmarketing is on organizational performance rather than a primary concern about increasingsales. Marketing strategy seeks to deliver superior customer value by combining thecustomer-influencing strategies of the business into a coordinated set of market-drivenactions. Strategic marketing links the organization with the environment and views marketingas a responsibility of the entire business rather than a specialized function. Because ofmarketing’s boundary orientation between the organization and its customers, channelmembers, and competition, marketing processes are central to the business strategy planningprocess. Strategic marketing provides the expertise for environmental monitoring, fordeciding what customer groups to serve, for guiding product specifications, and for choosingwhich competitors to position against. Successfully integrating cross-functional strategies iscritical to providing superior customer value. Customer value requirements must betransformed into product design and production guidelines. Success in achieving high-qualitygoods and services require finding out which attributes of goods and service quality drivecustomer value.Marketing Strategy ProcessThe marketing strategy analysis, planning, implementation and management process isdescribed below. The strategic situation analysis considers market and competitor analysis,market segmentation, and continuous learning about markets. Designing marketing strategyexamines customer targeting and positioning strategies, marketing relationship strategies andplanning for new products. Marketing program development consists of product, distribution,price, and promotion strategies designed and implemented to meet the value requirements of 36
    • targeted buyers. Strategy implementation and management consider organizational designand marketing strategy implementation and control.Stage 1: Strategic Situation AnalysisMarketing management uses the information provided by the situation analysis to guide thedesign of a new strategy or change an existing strategy. The situation analysis is conductedon a regular basis after the strategy is under way to evaluate strategy performance andidentify needed strategy changes.Market Vision, Structure, and Analysis.Markets need to be defined so that buyers and competition can be analyzed. For a market toexist there must be (1) people with particular needs and wants and one or more products thatcan satisfy buyers’ needs, and (2) buyers willing and able to purchase a product that satisfiestheir needs and wants. A product-market consists of a specific product (or line of relatedproducts) that can satisfy a set of needs and wants for the people (or organizations) willingand able to purchase it. The term product is used to indicate either a physical good or anintangible service. Analyzing product-markets and forecasting how they will change in thefuture are vital to business and marketing planning. Decisions to enter new product-markets,how to serve existing product-markets, and when to exist in unattractive product-markets arecritical strategic choices. The objective is to identify and describe the buyers, understand their 37
    • preferences for products, estimate the size and rate of growth of the market, and find out whatcompanies and products are competing in the market. Evaluation of competitors’ strategies,strengths, limitations and plans is also a key aspect of the situation analysis. It is important toidentify both existing and potential competitors. Competitor analysis includes evaluating eachkey competitor. The analyses highlight the competition’s important strengths andweaknesses. A key issue is trying to figure out what each competitor is likely to do in future.Segmenting Markets. Market segmentation looks at the nature and extent of diversity ofbuyers’ needs and wants in a market. It offers an opportunity for an organization to focus inbusiness capabilities on the requirements of one or more groups of buyers. The objective ofsegmentation is to examine differences in needs and wants and to identify the segments (sub-groups) within the product-market of interest. Each segment contains buyers with similarneeds and wants for the product category of interest to management. The segments aredescribed using the various characteristics of people, the reasons that they buy or use certainproducts, and their preferences for certain brands of products. Likewise, segments ofindustrial product-markets may be formed according to the type of industry, the uses for theproduct, frequency of product purchase, and various other factors. Each segment may varyquite a bit from the average characteristics of the entire product-market. The similarities ofbuyers’ needs within a segment enable better targeting of the organization’s capabilities tobuyers with corresponding value requirements. And Marketing strategy is an ongoing processof making decisions, implementing them, and tracking their effectiveness over time. In termsof its time requirements, strategic evaluation is far more demanding than planning.Evaluation and control are concerned with tracking performance and, when necessary,altering plans to keep performance on track. Evaluation also includes looking for newopportunities and potential threats in the future. It is the concerning link in the strategicmarketing planning process. By serving as both the last stage and the first stage (evaluationbefore taking action) in the planning process, strategic evaluation assures that strategy is anongoing activity Key insurance marketing strategies will always include an in-depth reviewof the a value of follow-up. All successful sales agents understand that consumers need to becontacted again and again in order to make a vital connection. Also, great follow-up protocollets the potential customer know that good, solid customer service will be part of the over-allpackage. Follow-up says to a consumer that they are important, thought of, and that theirbusiness would be greatly appreciated. The consumer today not only wants a product at agreat price, they also want a personal relationship, especially when it comes to financialsystem sales, such as various insurances. Letters and phone calls are gentle reminders that the 38
    • salesperson intends to serve with his or her whole heart. And, once a sale is secured, a thankyou call is strongly advised .consumers today value information. We live in the informationage, and the savvy, faithful customer is one that has knowledge about the products andservices offered. The next most valuable insurance marketing tips include the salespersonbeing the source of financial information for the client. Newsletters, email updates, andnotifications will keep customers informed about issues surrounding insurance and otherfinancial programs. There are creative ways to approach these insurance marketing strategies.Newsletters could include contests, special interest areas for kids, safety concerns, andeconomic updates. There could even be an area for customer spotlights, or encouragingtestimonies of how the customers were helped through the office. Of course, all new productsand services should be showcased in any informative hard copy or e-mail communication.Community marketing is another great way to get advertising and name recognition.Successful networkers join local community agencies, such as the local Chamber ofCommerce, and sign up to help in activities. This is a great way to get name and photographslisted in newspaper articles and other media avenues. Also, charity work cannot only begreatly beneficial to the community and those served, but may also open doors tocommunicating with other volunteers, who could be potential clients. People enjoy usingservices extended by like-minded providers. Creating a sense of community is extremelyimportant to insurance marketing strategies. There are other insurance marketing tips andresources available and insurance agents may find investigating several options to bebeneficial. Many marketing support companies offer email or publication updates, sharinginformation and techniques that are proven to bring in success. Agents may want to browsethe Internet and find a few different insurance marketing tips programs to choose from. Notonly will these resources help keep salespersons abreast of the latest strategies, but thesesupport programs can also create a sense of community and an opportunity for agents to sharetheir own struggles and challenges with others in the field.ACTIVITYIn the insurance industry there is a new way of thinking which determined the passage fromtransactional marketing to a holistic marketing concept. In this paper five key elements ofholistic marketing are presented: relationship marketing, integrated marketing, internalmarketing, social responsibility marketing and international marketing. In order to besuccessful insurance companies have to be able to convince their clients of the usefulness oftheir products and of the solidity of their businesses. In the current crisis situation, trust is a 39
    • vital element for the insurance industry and even if on short term, liquidity is the target, as itensures survival, on long and medium term the objective has to be the consolidation of thetrust of consumers in insurance companies and the goal of the managers must be to wincustomer loyalty. Keywords: holistic marketing in insurance, relationship marketing,integrated marketing, internal marketing, social responsibility marketing, internationalmarketing, trust, customer loyalty, crisis Today the success of an insurance company is basedon the quality of the long term relationship established between the company and its“partners”: customers, employees, broker dealers, banks, hedge funds etc. In the insuranceindustry this new way of thinking determined the passage from transactional marketing to aholistic marketing concept. The traditional transaction marketing focused on meetingcustomers’ needs so that the company could obtain an immediate advantage. This approachwasn’t always benefic for the insurance companies and for their clientsAn integratedmarketing is a must in the insurance industry. The insurance company must have a coherentmarketing mix in order to satisfy efficiently the needs of their clients. The marketingdepartment of the insurance company must coordinate and integrate all the activities includedin the marketing mix in order to maximize their joint effects: the insurance products andservices offered must be conceived as a solution for the needs of the client and the setting ofthe premiums, distribution channels and company communications must be done in anintegrate perspective. The role of internal marketing is to ensure that everyone in theinsurance company embraces appropriate marketing principles. The internal marketing is thetask of hiring, training and motivating the employees who want to serve customers well.Social responsibility marketing is a key element in the marketing activity of an insurancecompany due to the specific of the product. The role of the insurance is to protect the insuredagainst different risks, but also to create benefic effects for the entire society. The marketingactivity in insurance has important causes and effects in the social, ethical and legalenvironment. The social responsibility marketing activities demonstrate a corporate culturethat is designed to treat consumers fairly 40
    • OBJECTIVES OF THE STUDYThe objective of the recruitment process is to obtain the number and quality of employeesthat can be selected in order to help the organization to achieve its goals and objectives.Following are other objectives of recruitment process-1. Support the organization ability to acquire, retain and develop the best talent and skills.2. Increase the effectiveness of various recruiting techniques.3. This study provides the student a practical insight of various activities and functions ofthe company.4. The will also be able to develop in depth knowledge of Human Research sector. The studyis also required for the partial fulfillment of the requirement for the degree of M.B.A. as perthe curriculum5. The study would help SBI to know the Employee`s attitude towards the company.6. To know the latest trend of the company.MEANING & DEFINITION “The life insurance contract embodies an agreement in which broadly stated, the insurerundertakes to pay a stipulated sum upon the death of the insurer to a designated beneficiary.” --- J.H.MAGEE“Life insurance contract may be defined whereby the insurer, in consideration of premiumpaid either installment, undertakes to pay an annuity on the death of the insured of a certainnumber of years.” --- R.S.SHARMA 41
    • “A contract of life assurance is that in which one party agrees to pay a given sum on thehappening of a particular event contingent upon the duration of human life inconsideration of immediate payment of a smaller sum by another.”Insurance advisorA life adviser is a broker or intermediary authorized to sell or advise on the policies of lifeinsurance and financial products, such as unit trusts. Typical examples of companies whichemploy financial advisers are banks, insurance and life companies, general brokers, estateagents and building societies The presence of a life insurance policy is essential in everyindividuals financial portfolio. But at the same time, it is also important that the rightinsurance products be bought and that too for the right reasons. With so many insuranceproducts vying for a place in the individuals portfolio, conducting a proper evaluation canbecome quite a task. Taking the help of an insurance advisor/agent can help solve thisproblem. An insurance advisor/agent can play the part of the direct link between theinsurance company and the insurance seeker i.e. you. He is the one who can help you selectthe right policy i.e. one which can help you fulfill your insurance needs. But for this, it isimportant that you connect with an expert and qualified insurance advisor/agent.The task is to choose the good quality advisor those who are having the following quality.•Confidence•Self motivation And Persuasion•Urge to be financiallyindependent•Relationship skillsI have to recognize where a person (whom I meet to recruit him/her as an advisor) havingallthese characteristics or not .If some person is closed enough to these characteristicsthen. Idiscussed the following support pattern.After getting all these information an advisorbasically asked about the workingenvironment. Then I discussed the working environmentand try to convince him/her that he/she has the potential to become an agent/advisor.1. To be part of a world class sales team.2. Work from his/her (advisor) own office or residence.3. Work full time or part time.4. Earn commission, bonus and incentives.5. No upper limits on earnings. 42
    • 6. Flexible career.Therefore the first and for most problem is to convinced that person thosewhohaving enough patience to listen my companies idea/views.The role of the advisor is toquite effective to search a good prospect.FUNCTION OF ADVISORS:Advisors provide on going financial advice for his /her client/prospect. In our official termprospect is a person who can buy life insurance from us.The advisors study the prospectsneeds and persuade them to buy a policy.Complete all formalities for proposal of newinsurance, including filling up forms.collecting premium. Arranging medical examination,collecting proofs (of age/income), reports and information required by the underwriter.Afterhaving sold a new insurance policy, the advisor has to ensure that the policy continues.Without a lapse. Till it becomes a claim For that reason an advisor has to do the following:1. Keep in touch with the policy holder to make sure that renewal premiums are paid in time.2. Ensure that nominations are made or changed, if necessary3. Assist in collecting claim amounts.As an advisor you contribute in bringing in newbusiness for the company offer world class pre and post sales service to the clients with thesupport of theorganization.But an advisor to us means much more than a salesman or a,saleswoman, at SBI LIFE recognize our advisors as the ambassadors of our organization inthe market place and we consider the advisor force would be our biggest differentiating factorin thecoming years.That is why; we take a lot of care in recruiting and developing our advisorforce, so thatwe can maintain our standards of quality in service and salesmanship. Thecompetition and the customer awareness have forced the times to be a knowledgeorientedmarketplace. Appreciating the same we strive to get people with reasonablygood graduationbackground as our advisors. We also acknowledge and recognize prior 11sales experience ofthe persons; at the time of recruitment.The other function is to be of assistance to the policyholder in case he/she needs a loanunder the policy.ROLE OF AN ADVISOR:1. Identify future clients/prospect2. Making appointment.2. Conduct financial review meeting with prospect.4. Close sale. 43
    • 5. Get referral6. Provide service to clients/prospect.7. Follow internal sales and reporting system.After analyzing the quality (which the companyis looking for), back office service(which the company is giving to that person). Functions tobe performed, role to be played .I used to describe the benefits which the advisor can get outof his/her joiningas an advisor in SBI Life Insurance Company.ROLE OF UNIT MANAGERSIn fulfilling his obligations under the Agreement, Advisor shall scrupulously adhere to,follow and be bound by the Statutory provisions governing life insurance Advisors and moreparticularly the code of conduct contained therein, as in force from time to time. Withoutprejudice to the generalify of the obligations of the Advisor to SBI Life Life Insurance, theAdvisor shall: a. Faithfully and diligently promote the business of SBI Life Life Insurace; b. Ensure that any representation made and information provided is accurate; c. Act diligently and carefully in providing any advice and ensure that such advice is based on thorough analysis and take into account available alternatives; d. Ensure that any advice is reasonable in view of the customer’s circumstances; e. Not admit any liability or make any false, misleading, deceptive or reckless statement to the customer in respect of life insurance generally or any particular product of SBI Life Life Insurance; f. Solicit proposals for insurance for SBI Life Life Insurance as SBI Life Life Insurance may from time to time determine during the term of this Agreement; g. Service the needs and requirements of customer introduced by self or assigned by SBI Life life Insurance; h. Meet the validation specified by SBI Life Life insurance including production and persistency; i. Attend all training, meetings and seminars arranged or required by SBI Life Life Insurance and perform such other duties as requested by SBI Life Life Insurance; 44
    • j. Begin soliciting proposals for various insurance products at dates set by SBI Life Life Insurance;k. Be fully responsible and accountable for all its acts and omissions;l. Obtain, maintain, renew and keep renewed the prescribed licences issued by the IRDA and any other licence, approval or permission required of it for fulfilling the obligations of an Advisor at all times during the term of this agreemet;m. At all times during te term of this Agreement, act within the scope of such licences, approvals and permissions and any applicable legislation ad in consonance with the corporate image and objectives of SBI Life Life Insurance. The Advisor shall promptly notify SBI Life Life Insurance of the loss of any suc licence, approval or permission by it or by its certified persons;n. Submit to SBI Life Life Insurance within the period of time specified by SBI Life Life Insurance in writing from time to time, all proposals and initial premiums, for products solicited by Adviosr and in any case within the time specified by 64VB(4) of the Insurance Act, 1938 or any other statutory provisions applicable thereto. The Advisor shall remit to SBI Life Life Insurance all monies collected in trust immediately and without any deduction whatsoever.o. Observe and be bound by the- • Statutory provisions, SBI Life Life Insurance Instructions including Advisor manual, benefit illustration policy, cash acceptance policy, market conduct guidelines, prevention of money laundering policy, the compliance manual and the code of conduct that may be issued by SBI Life Life Insurance, in writing, from time to time relating to the conduct of the business; • Monitoring, supervision and performance standards of the business and sales practices used in relation to SBI Life Life Insurance products that may be issued by SBI Life Life Insurance, in writing, from time to time;p. Promptly deliver to SBI Life Life Insurance in good order and condition when demanded all records, rate books, documents, manuals, computers (hardware and software relating in any way to the life insurance business of SBI Life Life Insurance and which were received from SBI Life Life Insurance, including those that have 45
    • been specifically entrusted to the Advisor pursuant to this Agreement. Advisor here by acknowledges that such good, tangible and otherwise, and the exclusive property of SBI Life Life Insurance;q. Maintain and observe at all times the strictest secrecy and confidentiality, concerning the business of SBI Life Life Insurance or of Policyholders or proposers of Life Insurance or persons or companies from time to time dealing with SBI Life Life Insurance at any time, either while the Agreement is in force or subsequent to its termination;r. Bear all expenses incurred in the performance of duties under this Agreement unless otherwise specifically agreed to in writing by SBI Life Life Insurance;s. Promptly disclose to SBI Life Life Insurance every fact and circumstance within his knowledge relevant to the acceptance of the risk of business by SBI Life Life Insurance and shall promptly and accurately relate to SBI Life Life Insurance every fact disclosed to him relevant to the acceptance of such risk or business howsoever the Advisor is aware of such matter;t. Promptly notify SBI Life Life Insurance of receipt by it or service on it of any complaint, demand, notice or claim made or to be made under a policy howsoever the advisor is aware of such matter.u. Record and reolve, within the standard turn around time of 7days from receipt, all the complaints and requests/inquiries received from customers of Advisor and statutory/regulatory bodies and forward a report of the complaints, requests and inquiries of the past week with the relevant documentation containing details like Date of Complaint, Policy older Name, Advisor name and Code No., MOA Name and No., Nature of Complaint, Date of Complaint Forwarded to the concerned function for resolution, Status (Resolved /Pending), Resolution date to SBI Life Life Insurance at the specified email address on every Thursday of the next week.v. Ensure that a strong needs analysis is carried out for every prospect during the sales process;w. Ensure strict adherence to the prevention of Money laundering and Terrorist Financing Policy of SBI Life Life Insurance, the prevention of Money Laundering 46
    • Act, 2002, Rules thereunder and the IRDA Anti Money Laundering (‘AML’) guidelines and modification thereto and employ adequate know Your Customer (‘KYC’) standards as prescribed therein; x. In the event of finding any adverse or suspicious change on the standing, integrity or reputation of the customer/policyholder, Advisor should promptly disclose the same to the Principal compliance officer of SBI Life Life Insurance in change of Anti Money Laundering programme. In the event Advisor fails to comply with this provision and/or exposes SBI Life Life Insurance to AML related risks, SBI Life Life Insurance shall be entitled to terminate this Agreement with all attendant consequences to the Advisor; y. Act as a fiduciary, in good faith and I the best interests of SBI Life Life Insurance at all times during the continuance of this Agreement; and z. Declare his adherence to the code of sales and Business Conduct in the format prescribed in Schedule ‘A’.TRAINING AND COACHING OF ADVISORSRefresher training is the basic given to the trainee advisors about what is insurance, types ofinsurance, present scenario of life insurance in India and scope and career growth ininsurance with legal ideas related to insurance.i. The applicant shall have to undergo at least 100 hours’ practical training in life or general insurance business which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent.ii. The training duration should be minimum 18 working days excluding Sundays and holidays. 47
    • iii. No product training/market survey should be included into this hundred 100 hours training. The product training, if any, to be given by the insurance company should be over and above the minimum training hours prescribed by the Authorityiv. The attendance record of the trainees should be maintained at the Institute for necessary inspection at any given point of time.v. In case of short-fall of attendance, extra class may be permitted but the extra hours may be specified separately with proper attendance and details of faculty.vi. Every Institute should have at least one qualified permanent faculty who is an Associate or Fellow from the Insurance Institute of India for each stream i.e. for Life and Non-Life.vii. The attendance register of the faculty members should be maintained at the training institutes.viii. The record of the payment made to faculty should be maintained at the training institute i.e. batch-wise payment detail should be maintained.ix. The faculty should provide details of the other Institutes with whom they have been empanelled as part-time/guest faculty.x. Register should be maintained at the training institute giving details of batches completed, strength of the each batch, number of candidates decertified, name of the sponsored insurer and details of faculty who imparted the training with dates.xi. The seating capacity of each class-room should not exceed 40.xii. The fresh accreditation will be given on need basis after assessing the needs of the particular city/town.xiii. The initial approval will be for a period of 3 years and consideration of further renewal up to 3 years would depend on the satisfactory compliance of requirements of accreditation. 48
    • xiv. The insurance companies would regularly send their officials to oversee the proper conduct of the training at the institutes and would not sponsor candidates to those institutes that are not maintaining the required standards of and facilities for the training.xv. The training institute must display the certificate of accreditation to impart training issued by the Authority at the training institute.xvi. The Institute should not allow a franchisee to conduct courses on its behalf even if the faculty is that of the Institute. The Institute should conduct the training on its own premises or hired premises with proper infrastructure.xvii. No marketing fee/consultancy fee payment is permitted for getting the training batches.xviii. It will be the responsibility of the Insurance Company to check the status of the institute before sponsoring any candidates for training.xix. In case of mofussil areas or the cities where there are no accredited institutes and an insurance company intends to appoint agents, it will be the responsibility of the insurance company to conduct training.xx. The Institutes must keep with them one set of records of the training at the place where the training is being imparted.xxi. The Institute should confine its activities only to the place/city for which it has been given the approval. No training outside the said place/city is permitted.xxii. The Institutes must submit a copy of the lease deed/rent agreement at the time of seeking fresh accreditation/renewal/change of address of the institute.xxiii. On successful completion of training the candidates get COT i.e. the Completion of Training Certificate by SBI Life INSURANCE?Basic aim of the insurance plan satisfies the following objectives:- • Protection of economic value of assets. 49
    • • Mechanism to reduce impact of adverse events on value generating assets.Types of insuranceInsurance is generally classified into three main categories: 1. Life Insurance. 2. Health Insurance. 3. General Insurance.To get insurance an individual or an organization can approach to Insurance Companydirectly, through Insurance agent of the concerned company or through intermediaries.Life insurance or life assurance is a contract between the policy owner and the insurer,where the insurer agrees to pay a sum of money upon the occurrence of the insuredindividuals or individuals death or other event, such as terminal illness or critical illness. Inreturn, the policy owner agrees to pay a stipulated amount called a premium at regularintervals or in lump sums. There may be designs in some countries where bills and deathexpenses plus catering for after funeral expenses should be included in Policy Premium.NEED OF LIFE INSURANCE. The functions of Insurance can be bifurcated into two parts:1. Primary Functions2.Secondary Functions3. Other FunctionsThe primary functions of insurance include the following:Provide Protection - The primary function of insurance is to provide protection againstfuture risk, accidents and uncertainty. Insurance cannot check the happening of the risk, butcan certainly provide for the losses of risk. Insurance is actually a protection againsteconomic loss, by sharing the risk with others.Collective bearing of risk - Insurance is a device to share the financial loss of fewamong many others. Insurance is a mean by which few losses are shared among larger 50
    • number of people. All the insured contribute the premiums towards a fund and out of whichthe persons exposed to a particular risk is paid.Assessment of risk - Insurance determines the probable volume of risk by evaluatingvarious factors that give rise to risk. Risk is the basis for determining the premium rate also.Provide Certainty - Insurance is a device, which helps to change from uncertainty tocertainty. Insurance is device whereby the uncertain risks may be made more certain.The secondary functions of insurance include the following:Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitabledevice to prevent unfortunate consequences of risk by observing safety instructions;installation of automatic sparkler or alarm systems, etc. Prevention of losses causes lesserpayment to the assured by the insurer and this will encourage for more savings by way ofpremium. Reduced rate of premiums stimulate for more business and better protection to theinsured.Small capital to cover larger risks - Insurance relieves the businessmen from securityinvestments, by paying small amount of premium against larger risks anduncertainty.Contributes towards the development of larger industries - Insurance providesdevelopment opportunity to those larger industries having more risks in their setting up. Eventhe financial institutions may be prepared to give credit to sick industrial units which haveinsured their assets including plant and machinery.The other functions of insurance include the following:Means of savings and investment - Insurance serves as savings and investment,insurance is a compulsory way of savings and it restricts the unnecessary expenses by theinsureds For the purpose of availing income-tax exemptions also, people invest in insurance.Source of earning foreign exchange - Insurance is an international business. Thecountry can earn foreign exchange by way of issue of marine insurance policies and variousother ways. 51
    • Risk Free trade - Insurance promotes exports insurance, which makes the foreign traderisk free with the help of different types of policies under marine insurance cover.LIMITATION 52
    • RECOMMENDATION AND SUGGESTIONSRecommendations-Following are suggestions made for the benefits and augmentation of the sound working ofthe company –SBI life insurance1. Need to train and develop life insurance agents with more comprehensive knowledge andskills to counter every queries of the customer. 53
    • 2. It is suggested that company should not left any stone unturned towards soundadvertisement and promotional measures on every section whether it is printed, media or airvia radio.3. It is also suggested that skilled management graduates need to be places on sales andmarketing of financial services that can render their best ideas for the accomplishment of thecompany goals and objectives to the best extent.4. Also, care need to be taken that every customer’s grievance should be met with delightwhether before purchase or after sales.5. There should be an expansion measure for more offices and location of more centers foroffices of the company is established sop that company may grow its network.6. Life insurance Products should be made flexible so as to suit every section of society.Suggestions-Following are suggestions made for the benefits and augmentation of the sound working ofthe company –SBI life insurance:1. Need to train and develop life insurance agents with more comprehensive knowledge andskills to counter every queries of the customer.2. It is suggested that company should not left any stone unturned towards soundadvertisement and promotional measures on every section whether it is printed, media or airvia radio.3. The advisors should be made aware and educated so that they can extend their services notonly in terms of collection of premium checks from the customer but also to educate themabout the insurance and the latest nontraditional plans.4. All the company should come out of a unit link product that should aid every selection ofthe society.5. It is also suggested that skilled management graduates need to be places on sales andmarketing of financial services who can render their best ideas for the accomplishment of thecompany goals and objectives to the best extent. 54
    • 6. Also, care need to be taken that every customer’s grievance should be met with delightwhether before purchase or after sales.7. There should be an expansion measure for more offices and location of more centers foroffices of the company be established sop that company may grow its network. CONCLUSIONSummer training is a best example for a trainee to learn about the company working,corporate culture under which is operating the functions. SBI life insurance company underwhich I gained a significant knowledge with respect to life insurance, its importance andapplicability as well as undertook the task to recruit capable life insurance advisors which isconducive for the company to grow with more prosperity. What I taught in the managementinstitute utilized them fruitfully leading to the best advantage to the company and to the bestexperience for mine. In all Public Service jurisdictions, new approaches to recruitment arebeing used.In many territories, the strategies are manual but, as automated methods become 55
    • more pervasive; those mechanisms that support its use will assume greater popularity.Whatever the strategies selected for use, the objective is to recruit the most qualified,committed individuals into the organizations and ensure that the provision of governmentservices to the public is timely and effective, that the goods are of consistent high quality andthat the organizations achieve the objectives for which they have been established. Lifeinsurance is a noble service which is very important for every citizen to learn and realize itsimportance because this is the only source which can remain the status where one is with thefamily bread earner and ever when he is not.With the growing financial sector I would like toopt this industry for my future career advancement and as an opportunity to service thisindustry. Questionnaire:Q.1. what do you mean by life insurance?a) Protection of human asset value against uncertaintyb) A sum received after deathc) BothQ.2. Do you think life insurance is essential for every one?a) Yes 56
    • b) NoQ.3. what is your qualification?a) Post graduateb) Graduatec) Senior secondaryQ.4. Do you come under:a) 18-25 age groupb) 25 – 35 age groupc) 35 – 45 age groupd) Above 45 age groupQ.5. would you like to know about a career in life insurance advisor shipwhere you can fulfill every desire of your life?a) Yesb) NoQ.6. Do you perceive that life insurance business is a noble service orientedbusiness?a) Yesb) NoQ.7. would you like to become or opt for life insurance advisor underesteemed and prospering organization SBI Life insurance?a) Yesb) No Q.8. Do you agree that the life insurance business is a growing industryand will grow and rapid pace in future? 57
    • a) Yesb) NoQ.9. Do you favor the privatization of life insurance by the Governmentwhere a Significant number of companies now in the market for lifeinsurance to the customers with the alliance of multinationals?a) Yesb) NoSUGGESTION:1. ……………………………………………………………2. ……………………………………………………………PERSONAL INFORMATION:Name: - ………………………………………………………………Location: - ……………………………………………………………Occupation: - …………………………………………………………No REFERENCES:· Websites-www.sbiindia.co.inwww.sbilife.co.inwww.irdaindia.orgwww.liccouncil.orgwww.businessconnect.com 58
    • www.google.co.inwww.netpnb.comwww.pnbindia.combusiness.mapsofindia.comfinance.indiamart.comwww.scribd.comwww.nseindia.comwww.bseindia.comhttp://en.wikipedia.org/wiki/consumer_psyche 59