This document is a final research project report on HR policies and practices in the insurance industry, focusing on Life Insurance Corporation, Reliance Life Insurance Company, and Birla Sun Life Insurance Company. It discusses the historical context of the insurance sector in India, its growth, and regulatory frameworks while also providing a SWOT analysis of the key companies. The report includes research methodology, findings, and a structured approach to human resource management within the insurance industry.

1. A FINAL RESEARCH PROJECT REPORT
ON
“HR POLICIES AND PRACTICES IN INSURANCE
INDUSTRY
WITH SPECIAL REFERENCE TO
LIFE INSURANCE CORPORATION (LIC), RELIANCE LIFE
INSURANCE COMPANY (RLIC) & BIRLA SUN LIFE
INSURANCE COMPANY (BLSI)”
Submitted in partial fulfillment of the requirement
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF BUSINESS MANAGEMENT
SESSION (2014-2015)
Under the guidance of: Submitted By:
Mrs. Maira Singh Kushagra Shukla
Faculty Guide Roll No.: 1304870027
DAMS, Kanpur Batch: MBA 2013-15
DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR
AFFILIATED TO
U.P. TECHNICAL UNIVERSITY, LUCKNOW

2. A FINAL RESEARCH PROJECT REPORT
ON
“HR POLICIES AND PRACTICES IN INSURANCE
INDUSTRY
WITH SPECIAL REFERENCE TO
LIFE INSURANCE CORPORATION (LIC), RELIANCE LIFE
INSURANCE COMPANY (RLIC) & BIRLA SUN LIFE
INSURANCE COMPANY (BLSI)”
Submitted in partial fulfillment of the requirement
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Of
U. P. Technical University, Lucknow
Session – (2014 - 15)
By
Kushagra Shukla
Roll No.: 1304870027
Batch: MBA 2013-15

3. ACKNOWLEDGEMENT
I consider it pleasant privilege to express my heartiest gratitude and
indebtedness to those who have assisted me towards the completion of
my project report. The project wouldn’t have seen the light of day
without the help and guidance of many people. I take an opportunity to
convey my deepest gratitude to all those individuals.
I feel highly obliged and indebted to my guide Mrs. Maira Singh for
not only providing all moral and organizational support but also for
inspiring encouragement during the course of this work. Without whose
help it wouldn’t have been possible for me to accomplish this task on
time.
Words at my command are inadequate both in form and spirit to express
my sincere and profound gratitude to these entire persons for their
meticulous guidance, keen supervision, constructive criticism, friendly
attitude and whole hearted help throughout the course of this project. I
owe my special regard to the Dean Academics, HOD’s and all the
Faculty members to help me out in giving the relative information.
(Kushagra Shukla)
(Ms. Maira Singh) (Sign. of external examiner)
I

4. PREFACE
In spite of the theoretical knowledge gained through class room study, a
person is incomplete if not objected to practical exposure of real
corporate and may have to face hurdles which will be difficult to
overcome without any firsthand experience of business.
In this context research program has been designed to make the person
aware of happening of the real business world. The project entitled “
” has been done at Kanpur as completion part of
M.B.A. program.
The study was made by collecting relevant data about performance with
the help of questionnaire survey, secondary data were collected from the
organization broacher’s, websites etc.
This report is the result of the work done during the training period. I
have tried my level best to be as a systematic as possible and to avoid
any sort of biases.
II

5. CERTIFICATE
This is to certify that the Project titled, “
” is an academic work
done by “KUSHAGRA SHUKLA” submitted in the partial fulfillment of
the requirement for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION (MBA) from DAYANAND
ACADEMY OF MANAGEMENT STUDIES, GOVIND NAGAR,
KANPUR. It has been completed under the guidance of MRS. MAIRA
SINGH. The authenticity of the project work will be examined by the
viva examiner which includes data verification, checking duplicity of
information etc. and it may be rejected due to non-fulfillment of quality
standards set by the institute.
III

6. STUDENT DECLARATION
I Kushagra Shukla student of Master of Business Administration
(M.B.A.) at Dayanand Academy of Management Studies, Kanpur of
hereby declare that the project work entitled “HR POLICIES AND
PRACTICES IN INSURANCE INDUSTRY WITH SPECIAL
REFERENCE TO LIFE INSURANCE CORPORATION (LIC),
RELIANCE LIFE INSURANCE COMPANY (RLIC) & BIRLA SUN
LIFE INSURANCE COMPANY (BLSI)” is compiled and submitted
under the guidance of Mrs. Maira Singh. I would also like to thank my
friends, faculty members who helped me during my training program. This
is my original work.
Whatever information furnished in the project report is true to the best of
my knowledge.
Kushagra Shukla
MBA 4th
Semster
1304870027
IV

7. EXECUTIVE SUMMARY
Insurance sector in India is one of the booming sectors of the
economy and is growing at the rate of 15 - 20 % per annum. Together
with banking services, it contributes to about 7 per cent to the country's
GDP. Insurance is a federal subject in India and Insurance industry in
India is governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.
The origin of life insurance in India can be traced back to 1818
with the establishment of the Oriental Life Insurance Company in
Calcutta. It was conceived as a means to provide for English Widows. In
those days a higher premium was charged for Indian lives than the non-
Indian lives as Indian lives were considered riskier for coverage. The
Bombay Mutual Life Insurance Society that started its business in 1870
was the first company to charge same premium for both Indian and non-
Indian lives. In 1912, insurance regulation formally began with the
passing of Life Insurance Companies Act and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a
number of frauds during 1920’s and 1930’s tainted the image of
insurance industry in India. In 1938, the first comprehensive legislation
regarding insurance was introduced with the passing of Insurance Act of
1938 that provided strict State Control over insurance business.
V

8. Insurance sector in India grew at a faster pace after independence.
In 1956, Government of India brought together 245 Indian and foreign
insurers and provident societies under one nationalized monopoly and
formed Life Insurance Corporation (LIC) by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of ` 5/- Crores.
The (non-life) insurance business/general insurance remained
with the private sector till 1972. There were 107 private companies
involved in the business of general operations and their operations were
restricted to organized trade and industry in large cities.
The General Insurance Business (Nationalisation) Act, 1972
nationalized the general insurance business in India with effect from
January 1, 1973. The 107 private insurance companies were amalgamated
and grouped into four companies: National Insurance Company, New
India Assurance Company, Oriental Insurance Company and United
India Insurance Company. These were subsidiaries of the General
Insurance Company (GIC).
In 1993, the first step towards insurance sector reforms was
initiated with the formation of Malhotra Committee, headed by former
Finance Secretary and RBI Governor R. N. Malhotra. The committee was
formed to evaluate the Indian insurance industry and recommend its
future direction with the objective of complementing there forms initiated
in the financial sector.
VI

9. VII

10. INDEX
Table of Content Page No.
CHAPTER – 1 :: INTRODUCTION
 Context of the Topic 2
 Human Resource Development 4
 Purpose 6
 HR Policies & Procedures 7
CHAPTER – 2 :: INDUSTRY PROFILE
 Origin of Insurance 10
 IRDA Act, 1999 11
 Duties, Powers & Functions of IRDA 12
 Insurance Market in India 15
 History of Insurance Sector 15
 Insurance Sector reforms 16
 Life Insurance Market in India 18
 Future of Life Insurance Market 19
 Top 10 Insurance Companies of India 21
 Insurance Companies 26
CHAPTER – 3 :: SWOT ANALYSIS OF INSURANCE INDUSTRY
 Strength 31
 Weakness 31
 Opportunities 32
 Threats 32

11. CHAPTER – 4 :: COMPANY PROFILE
 Life Insurance Corporation (LIC) 34
 SWOT Analysis of LIC 43
 Reliance Life Insurance Company (RLIC) 44
 SWOT Analysis of RLIC 53
 Birla Sun Life Insurance Company (BLSI) 54
 SWOT Analysis of BSLI 64
CHAPTER – 5 :: RESEARCH METHODOLOGY
 Objective of the Report 66
 Research Design 66
 Data Collection Techniques 67
 Mode of Data Collection 68
 Sampling Plan 68
CHAPTER – 6 :: DATA ANALYSIS AND INTERPRETATION
 Induction Program 70
 Behavioral Training 73
 Motivational Tools 78
 Welfare Activities 82
 Rewards & Recognition 85
CHAPTER – 7 :: FINDINGS AND OBSERVATION
 Limitations 92
 Conclusion 93
 Suggestions 95
 Recommendations 100
CHAPTER – 8 :: ANNEXURE
 Bibliography And Webliography 106
 Questionnaire 108
 Images 112

12. CHAPTER – 1
INTRODUCTION
1

13. Context of the Topic:
The role of Human Resources is changing as fast as
technology and the global marketplace. Historically, the HR Department
was viewed as administration, kept personal files and other records,
managed the hiring process, and provided other administrative support to
the business. Those times have changed.
The positive result of these changes is that HR professionals have
the opportunity to play a more strategic role in the business. The
challenge for HR managers is to keep up to date with the latest HR
innovations — technological, legal, and otherwise.
This special report will discuss the best practices in HR
management for 2010 — in other words, how HR managers can
anticipate and address some of the most challenging HR issues this
year. This report will give you the information you need to know
about these current HR challenges and how to most effectively manage
them in your workplace.
Human resources is an increasingly broadening term with which
an organization, or other human system describes the combination of
traditionally administrative personnel functions with acquisition and
application of skills, knowledge and experience, Employee Relations and
resource planning at various levels. The field draws upon concepts
developed in Industrial/Organizational Psychology and System Theory.
Human resources has at least two related interpretations depending on
context. The original usage derives from political economy and
economies, where it was traditionally called labor, one of four factors
of production although this perspective is changing as a function of
new and ongoing research into more strategic approaches at national
levels. This first usage is used more in terms of human resources
2

14. development's, and can go beyond just organizations to the level of
nations. The more traditional usage within corporations and businesses
refers to the individuals within a firm or agency, and to the portion of
the organization that deals with hiring, firing, training, and other
personnel issues, typically referred to as human resources management.
This article addresses both definitions.
The objective of human resource’s development (the `s' is
important in human resource`s' in that it underscores
individuality/variability) is to foster human resourcefulness through
enlightened and cohesive policies in education, training, health and
employment at all levels, from corporate to national (Lawrence 2000).
Human resource management's objective, on the other hand, is to
maximize the return on investment from the organization's human
capital and minimize financial risk. It is the responsibility of human
resource managers in a corporate context to conduct these activities in
an effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Recruitment & Selection,
2. Training and Development,
3. Performance Evaluation and Management,
4. Promotion,
5. Redundancy,
6. Industrial and Employee Relations,
7. Record keeping of all personal data.,
8. Compensation, pensions, bonuses etc. in liaison with Payroll,
9. Confidential advice to internal 'customers' in relation to
problems at work,
10.Career development.
3

15. HUMAN RESOURCES DEVELOPMENT:
In organizations, in terms of sex and selection it is important to
consider carrying out a thorough job analysis to determine the level of
skills/technical abilities, competencies, flexibility of the employee required
etc. At this point it is important to consider both the internal and
external factors that can have an effect on the recruitment of employees.
The external factors are that out-with the powers of the organization
and include issues such as current and future trends of the labor market
e.g. skills, education level, government investment into industries etc. On
the other hand internal influences are easier to control, predict and
monitor, for example management styles or even the organizational
culture.
In order to know the business environment in which any
organization operates, three major trends should be considered:
Demographics – the characteristics of a population/workforce, for
example, age, gender or social class. This type of trend may have an
effect in relation to pension offerings, insurance packages etc.
Diversity – the variation within the population/workplace. Changes
in society now mean that a larger proportion of organizations are
made up of "baby-boomers" or older employees in comparison to
thirty years ago. Traditional advocates of "workplace diversity"
simply advocate an employee base that is a mirror reflection of the
make-up of society in so far as race, gender, sexual orientation, etc.
Skills and Qualifications – as industries move from manual
to more managerial professions so does the need for more highly
skilled graduates. If the market is "tight" (i.e. not enough staff for
4

16. the jobs), employers will have to compete for employees by
offering financial rewards, community investment, etc.
MODERN CONCEPT OF HUMAN RESOURCES:
Though human resources have been part of business and
organizations since the first days of agriculture, the modern
concept of human resources began in reaction to the efficiency focus
of Taylorism in the early 1900s. By 1920, psychologists and
employment experts in the United States started the human relations
movement, which viewed workers in terms of their psychology and fit
with companies, rather than as interchangeable parts. This movement
grew throughout the middle of the 20th
century, placing emphasis on
how leadership, cohesion, and loyalty played important roles in
organizational success. Although this view was increasingly challenged
by more quantitatively rigorous and less "soft" management techniques in
the 1960’s and beyond, human resources development had gained a
permanent role within organizations, agencies and nations, increasingly as
not only an academic discipline, but as a central theme in development
policy.
Human resource policies are systems of codified decisions,
established by an organization, to support administrative personnel
functions, performance management, employee relations and resource
planning.
Each company has a different set of circumstances, and so
develops an individual set of human resource policies.
5

17. Purposes:
HR policies allow an organization to be clear with employees on:
 The nature of the organization
 What they should expect from the company
 What the company expects of them
 How policies and procedures work at your company
 What is acceptable and unacceptable behavior
 The consequences of unacceptable behavior
The establishment of policies can help an organization demonstrate,
both internally and externally, that it meets requirements for diversity,
ethics and training as well as its commitments in relation to regulation
and corporate governance. For example, in order to dismiss an
employee in accordance with employment law requirements, amongst
other considerations, it will normally be necessary to meet provisions
within employment contracts and collective bargaining agreements. The
establishment of an HR Policy which sets out obligations, standards of
behavior and document disciplinary procedures, is now the standard
approach to meeting these obligations.
Developing the HR Policies:
HR policies provide an organization with a mechanism to manage
risk by staying up to date with current trends in employment standards
and legislation.
6

18. HR POLICIES AND PROCEDURES:
This factsheet gives introductory guidance. It:
 Highlights the main policies and procedures that organizations
need to consider
 Looks at formatting a policy and sources of information
Introducing HR policies and procedures gives organizations the
opportunity to offer a fair and consistent approach to managing
their staff. For more on why HR policies are introduced, see our
factsheet HR policies and procedures: why introduce them?
11 policy or practice areas those are crucial to effective people
management and development:
 Recruitment and Selection,
 Training and Learning/Development,
 Career Opportunities,
 Communication,
 Employee Involvement,
 Team Working,
 Performance Appraisal Pay,
 Satisfaction,
 Job Security,
 Job Challenge/Job Autonomy,
 Work-Life Balance.
7

19. Not all policies and procedures will be relevant to all
organizations, and some policies are required by law while others
are to promote good practice.
The following paragraphs indicate the range of possible policies
which apply during the employment life cycle - more detailed
information and the legal requirements on each of these areas is
included.
8

20. CHAPTER - 2
INDUSTRY
PROFILE
9

21. INSURANCE INDUSTRY
ORIGIN OF INSURANCE:
The origin of insurance dates back to the 12th
century, the origin
of insurance appeared first in marine and land fields. The ideas of
insurance were made in Babylonia and India at quite an early period; the
courts of Hammurabi and Mano recognized the provision for sharing the
future losses. However there is no evidence that insurance in its present
form was practiced prior to 12th
century. Tracing the history of insurance
to the present day, one can easily gauge the performance of industry
both collectively as an industry as well as individually by the companies.
In earlier times, travelers by sea and land were very much exposed
to risk of losing their vessels and merchandise because piracy on the
open seas and highway robbery of caravan were common. References to
similar practices are also found in 'Manab Dharma Shastra' which
contained rules for sea from contracts which was observed by traders.
Insurance conceived as method of sharing of the losses embodying the
principal of co-operation existed in the early civilization.
Many may not be aware that the life insurance industry of India is
as old as it is in any other part of the world. The first Indian life
insurance company was the Oriental Life Insurance Company, which was
started in India in 1818 at Kolkata. A number of players (over 250 in
10

22. life and about 100 in non-life) mainly with regional focus flourished all
across the country. However, the Government of India, concerned by the
unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life) and in 1972 (non-
life). The insurance business of the country was then brought under two
public sector companies, Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC).
Reforms were initiated with the passage of Insurance Regulatory
and Development Authority (IRDA) Bill in 1999. IRDA was set up as
an independent regulatory authority, which has put in place regulations in
line with global norms. So far in the private sector, 12 life insurance
companies and 9 general insurance companies have been registered.
INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (I.R.D.A) ACT – 1999
The object of this act is to provide for the establishment of an
authority to protect the interest of holders of insurance policies, to
regulate, to promote and ensure orderly growth of insurance industries.
Insurance Regulatory and Development Authority (IRDA) has sought the
comments of industry participants to finalize the guidelines for online
agents' training institutes.
These proposed guidelines are in addition to its standard
instructions and guidelines applicable for approval/renewal of agents'
training institutes. The guidelines would be applicable to all the online
training institutes including in-house training institutes of the insurers.
11

23. As per the draft guidelines, the applicant should undergo at least
120 hours practical training in life or general insurance business. The
composite training should be for at least 180 hours, where the applicant
is seeking license for the first time to act as an insurance agent.
The duration should be minimum of 24 days for 120 hours training
and 36 days for 180 hours training with a maximum five hours per day.
Stating that no product training/market survey should be included into
this 120/180 hours training, the regulator said revision examination could
form part of the training.
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY:
• The powers and functions of the authority include registration of
insurers, intermediaries and agents regulations of terms and
conditions of contract of insurance, promoting and regulating
professional organizations connected with the insurance, monitoring
investment of funds and solvency margin of insurance companies.
• The authority is to be advised by a committee to be known as the
insurance advisory committee, which shall consists of not more than
25 members including ex-officio members in the insurance sector.
The insurance advisory committee is expected to advice the
authority on matters relating to making of the regulations.
• An Indian insurance company has been defined as a company
incorporated under the Companies Act - 1956 and the paid capital
of General Insurance business will have to be not less than ` 100/-
Crores and in case of companies wanting to transact reinsurance
business the paid capital will have to not less than ` 200/- Crores.
12

24. • It has also been notified that every insurance company will have to
appoint an Actuary to be approved by I.R.D.A.. The duty of the
Actuary is to insure that-
The assets are valued in appropriate manner
The liabilities are evaluated as required
The prescribed margin for maintaining solvency is complied
with.
• The I.R.D.A. also issued regulations with regards to advertisement
so as to include almost any public communication for a sale of
insurance policy.
THE FUNDAMENTAL / PRINCIPALS OF LAW OF
INSURANCE
UTMOST GOOD FAITH:
The parties to the commercial contract, according to the law are
required to observe good faith. The seller cannot mislead the buyer in
respect of transactions, but he has no subject of the contract, it is the
buyer’s duty to be careful while entering into a contract. 'LET THE
BUYER BE AWARE' is a legal rule.
INSURABLE INTEREST:
The owner of the property has a right under law to effect
insurance on the property if he is likely to suffer financially when
property is lost or damaged. This legal right to insure is called insurable
interest, without insurable interest the contract of insurance will be void.
13

25. Because of this legal requirement of insurable interest the insurance
contracts are not gambling transactions.
INDEMNITY:
The principal of indemnity arises under common law and requires
that an insurance control should be a contract of indemnity only and
nothing more. The object of principals to place the insured after a loss
in the same financial position as far as possible, as he is occupied
immediately before the loss. The effect of this principal is to prevent the
insured from making the profit out of his loss or gaining any advantage
or benefit. The object of a contract of insurance is to protect the
financial interest of the insured in the subject matter of insurance.
SUBROGATION:
The principal of subrogation arises from the principal of indemnity.
Subrogation may be defined as transfer of rights and remedies of the
insured to the insurer who has indemnified the insured in respect of the
loss. If the insured has any rights of action to be recovered the loss
from any third party, who is primary responsible for the loss, the insurer
having paid the loss is entitled to avail himself of these rights to recover
the loss from the third party. The effect is that the insured does not
receive more than actual amount of his loss and any recovery affected
from the third party goes to the benefit of the insurer to reduce the
amount of his loss.
14

26. INSURANCE MARKET IN INDIA:
By any yardstick, India, with about 200 million middle class
households, presents 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 global insurance
majors. Life insurance is mainly considered as a saving instrument rather
than an investment avenue as it promotes compulsory savings besides
reducing tax burden on the policyholder and protect the family of the
policyholder in the event of unforeseen happening. It is the only saving
instrument, which covers the life risk besides giving tax concession both
at entry (premium paid) and at exit.
HISTORY AND PRESENT STATUS OF INSURANCE
MARKET IN INDIA:
The insurance sector in India has come 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
reviles the 360-degree turn witnessed over a period of almost two
centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
The business of life insurance in India in its existing form started
in India in the 1818 with the establishment of Oriental Life Insurance
Company in Calcutta. Some of the important milestones in the Life
Insurance business in India are:
15

27.  1912: The Indian Life Assurance Companies Act enacted as the
first statue to regulate the life insurance business.
 1928: The Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-insurance business.
 1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interest of
the insuring public.
 1956: 245 Indian and foreign insurers and provident societies
are taken over by the central government and nationalized. LIC
found by an Act of Parliament, viz. LIC Act 1956, with a
capital contribution of rupees Five Crores from the Government
of India.
INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee, headed by former Finance Secretary
and RBI Governor R. N. Malhotra, was formed to evaluate the Indian
insurance industry and recommend its future direction. The Malhotra
committee setup with the objective of complimenting the reforms initiated
in the financial sector. The reforms where aimed at "creating a more
efficient and competitive financial system suitable for the requirements
of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for
similar reforms.."
In 1994, the Committee submitted the report and some of the key
recommendations included:
16

28. Structure:
a. Government stake in the insurance companies to be brought down
to 50%.
b. Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.
c. All the insurance company should be given greater freedom to
operate.
Competition:
a. Private companies with a minimum paid up capital of Rs. 1 bn
should be allowed to enter the industry.
b. No company should deal both the life insurance and general
insurance through a single entity.
c. Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
d. Postal Life Insurance should be allowed to operate in the rural
market.
e. Only one state level Life Insurance Company should be allowed to
operate in each state.
Regulatory body:
a. The Insurance Act should be changed.
b. An Insurance regulatory body should be setup.
Reforms in the insurance sector were initiated with the passage of the
IRDA Bill in the Parliament in December 1999. The IRDA since its
incorporation as statutory body in April 2000 has fastidiously stuck to its
17

29. schedule of framing regulations and registering the private sector
insurance companies.
LIFE INSURANCE MARKET IN INDIA:
Life Insurance Statistics
Indian Population I bn
GDP as on 2000 ( ` bn) 50000 bn
Gross Domestic Saving as a % of GDP 32%
NCAER estimate is Insurance Population 240 mn
Estimated market 2015 950 mn
India has an enormous middle class that can afford to buy life,
health, and disability and pension plan products. The low level of
penetration of life insurance in India compared to other developed nations
can be judged by a comparison of per capita life premium.
Country Life Premium per capita US $ in 1994
Japan 3817
UK 1280
USA 964
India 4
18

30. FUTURE OF LIFE INSURANCE MARKET:
Even at modest estimates the size of life insurance market in India
could be around ` 40000 billion covering just 250 mn people…
LIC had enjoyed the monopoly of the big life insurance market
since 1956. LIC was in for a surprise now and then when it found that,
among air crash casualties or rail accident victims, only very few had
life insurance cover. In fact LIC did attempt to evaluate the size of the
market and look at broad homogeneous segments of the market based on
the data provided by Decennial Census Report relating to worker
population categorized into groups based on occupations. However LIC's
major segmentations were the urban, rural, male, female, medical and
non-medical segments. The census of occupation data was used more as
a framework for formulating the business plans. But, now with the entry
of new player, very conscious of their market shares, the evaluation of
the size of the market for life insurance assumes importance. The market
size with its viable segments is to be identified and suitable products to
meet the needs of these segments developed.
Life insurance market covers the entire age range of the population
of 1000 mn in India . However taking into account their economic
conditions and their ability to pay the premium for some sort life
insurance cover or an annuity, the number of eligible prospects for life
insurance may be put around 30% of the total population viz, 300 mn.
LIC has on its books as on date 125 mn policies. Research had shown,
that each of these holders of the policies have on an average, 1.6 (as
many policy holders have more than one policy). Thus the no of persons
holding life insurance policies with LIC good work out to 75 mn. This
19

31. means only 25% of the potential market has so far covered, leaving the
remaining 75% a vast market of 225 mn persons to be covered.
Market size ever expanding…
This market size is dynamic and ever expanding. The growth is
dictated by several factors such as:
1. An addition of around 20 mn of new population each year.
2. More and more persons due to improvements in economic
conditions move continuously into the zone of people with
ability to pay premium for a life insurance policy.
3. Many among the existing policyholders are grossly under
insured . They need and can afford additional insurance. These
can be made to join the market as potential prospects for
additional insurance. These form the creamy layers market
capable of being very good source of high volume of
business.
Taking all these factors into account it can be seen that the size of
the market for life insurance in India is enormous. Assuming the number
of persons who can be sold an insurance policy to be 250 mn, in terms
of number of policies, this works out to 400 mn policies. In financial
terms, taking the average size of the policy as ` 1 lakh, the sum assured
works out to ` 40,000 bn or $ 800 bn. The first year's premium income
can be assume as ` 6,250 per annum per policy. The figures would keep
increasing year by year due to the improvement in the economic
conditions leading to increase in the number of potential prospects.
20

32. Top 10 Insurance Companies in India:
List of top 10 Insurance companies in India; these are the best
companies in life insurance and finance sector.
1. Life Insurance Corporation of India (LIC)
a. Establishment – September 1, 1956
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 1,20,000+
d. Business – Financial services
e. Website – www.licindia.in
f. Details – Best Insurance Company in India dominating the
market since then it established in market. In other word, it is
the synonyms of Insurance in India, most important they have
best settlement ratio.
2. SBI Life Insurance
a. Establishment – March, 2001
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 96,000+
d. Business – Insurance
e. Website – www.sbilife.co.in
f. Details – State bank of India life insurance is a joint venture
between BNP Paribas Cardiff holding 74:26 ratios. It has great
21

33. hold in Indian market as far as concern of Finance and
banking sector, best in insurance sector after LIC.
3. Birla Sun life Insurance
a. Establishment – 2000
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 1,33,000+
d. Business – Financial services
e. Website – www.birlasunlife.com
f. Details – It is financial and Insurance Company, a Joint
venture of Aditya Birla and Sun life Insurance. Company
offers life insurance products including health, wealth and
retrial plans.
4. Reliance Life Insurance (RLIC)
a. Establishment – 2001
b. Corporate Office – Navi Mumbai, Maharashtra
c. Employees – 1,24,000+
d. Business – Insurance
e. Website – www.reliancelife.com
22

34. f. Details – Company is Group Company of Reliance, among of
top insurance company in India. In year 2011 Nippon life
insurance, Japan acquired 26% share in this company.
5. ICICI Prudential Life Insurance
a. Establishment – 2000
b. Corporate Office – United Kingdom
c. Employees – 15,000+
d. Business – Life Insurance
e. Website – www.iciciprulife.com
f. Details – ICICI prudential is a joint venture between ICICI
and prudential Plc., United Kingdom. ICICI Prudential offers
wide range of Insurance Products including health, wealth, life
insurance, medical insurance and retrial solutions.
6. Tata AIG Life Insurance
a. Establishment – 2001
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 7,500+
d. Business – Insurance
e. Website – www.tataaiginsurance.in
f. Details – Tata AIG is a joint venture between Tata and AIG;
it is Flagship Company of Tata group. Started insurance
23

35. business in year 2001, company launched many insurance
products such as Motor, travel, health and accidental insurance.
7. ING Vysya Life Insurance
a. Establishment – 2001
b. Corporate Office – Bangalore, Karnataka
c. Employees – 7,800+
d. Business – Insurance
e. Website – www.inglife.co.in
f. Details – ING Vysya is a insurance company offers insurance
policies and retrial plans. It has been serving in more than 200
cities in India and almost 10 laces customer base.
8. Bajaj Allianz Life Insurance
a. Establishment – 2001
b. Corporate Office – Pune
c. Employees – 1000+
d. Business – Insurance
e. Website – www.bajajallianz.com
f. Details – It is a private Insurance company offers many
insurance plan & policies including ULIP, pension plans and
term Insurance.
24

36. 9. Max Life Insurance
a. Establishment – 2000
b. Corporate Office – New Delhi
c. Employees – 8,000+
d. Business – Financial Services
e. Website – www.maxlifeinsurance.com
f. Details – Max life insurance is another private company offers
Insurance plans for everyone.
10. HDFC Standard Life Insurance
a. Establishment – 2000
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 15,500+
d. Business – Insurance
e. Website – www.hdfclife.com
f. Details – Group Company of giant Housing development
finance corporation, it is joint venture with Standard life
Insurance.
25

37. Insurance Companies:
Insurance is an upcoming sector, in India the year 2000 was a
landmark year for life insurance industry, in this year the life insurance
industry was liberalized after more than fifty years. Insurance sector was
once a monopoly, with LIC as the only company, a public sector
enterprise. But nowadays the market opened up and there are many
private players competing in the market. There are fifteen private lives
insurance companies has entered the industry. After the entry of these
private players, the market share of LIC has been considerably reduced.
In the last five years the private players is able to expand the market
(growing at 30% per annum) and also has improved their market share
to 18%. For the past five years private players have launched many
innovations in the industry in terms of products, market channels and
advertisement of products, agent training and customer services etc.
List of General Insurance Companies
 Public Sector
 New India Assurance Company Limited
 National Insurance Company Limited
 The Oriental Insurance Co. Ltd.
 United India Insurance Co. Ltd.
 Agriculture Insurance Company of India Ltd.
 Private Players
 Bajaj Allianz General Insurance Co. Ltd.
 ICICI Lombard General Insurance Co. Ltd.
26

38.  IFFCO-Tokio General Insurance Co. Ltd.
 Reliance General Insurance Co. Ltd.
 Royal Sundaram Alliance Insurance Co. Ltd.
 TATA AIG General Insurance Co. Ltd.
 Cholamandalam General Insurance Co. Ltd.
 HDFC ERGO General Insurance Co. Ltd.
 Star Health Allied Insurance Co. Ltd.
 Apollo DKV Insurance Co. Ltd.
 Shriram General Insurance Company Limited
 SBI General Insurance Company Limited
 Max Bupa Health Insurance Company Limited
 Future Generali India Insurance Co. Ltd.
 Universal Sompo General Insurance Co. Ltd.
 Bharti AXA General Insurance Co. Ltd.
 Raheja QBE General Insurance Company Ltd.
 L&T General Insurance Company Limited
 Religare Health Insurance Company Limited
 Magma HDI General Insurance Company Ltd.
 Liberty Videocon General Insurance Company Limited
 Specialised
 General Insurance Corporation of India
 Export Credit Guarantee Corporation
27

39. List of Life Insurance Companies
 Public Sector life Insurance Company
 Life Insurance Corporation of India
 Private Sector life Insurance Companies
 Bajaj Allianz Life Insurance Company Ltd.
 Birla Sun-Life Insurance Company Ltd.
 HDFC Standard Life Insurance Co. Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
 ING Vysya Life Insurance Company Ltd.
 Max New York Life Insurance Co. Ltd.
 MetLife Insurance Company Ltd.
 Kotak Mahindra Old Mutual Life Ins. Co. Ltd.
 SBI Life Insurance Company Limited
 TATA AIG Life Insurance Co. Ltd.
 Reliance Life Insurance Co. Ltd.
 Aviva Life Insurance Co. Pvt. Ltd.
 Sahara India Life Insurance Co. Ltd.
 Shriram Life Insurance Co. Ltd.
 Bharti AXA Life Insurance Co. Ltd.
 Future Generali India Life Insurance Co. Ltd.
 IDBI Fortis Life Insurance Co. Ltd.
 Canara HSBC Oriental Bank of Commence Life
Insurance Corp. Ltd.
 AEGON Religare Life Insurance company Limited.
28

40.  DLF Pramerica Life Insurance Co. Ltd.
 Star Union Dai-ichi Life Insurance Co. Ltd.
 India First Life Insurance Company Limited
 Edelweiss Tokio Life Insurance Company Limited
29

41. CHAPTER - 3
SWOT ANALYSIS
OF
INSURANCE INDUSTRY
30

42. SWOT of INSURANCE Industry
• As a vast emerging economy and a country with more
than 1 bn people, India is too large to ignore, even if the
present barriers to entry are high.
• A democracy with functioning governance and a
regulatory framework familiar to Western corporations,
even if it is overloaded with bureaucracy.
• The economy is growing quite strongly and will
experience less of a slowdown than a number of other
emerging markets.
STRENGTH
• The market is dominated by state-owned insurers and the
progress to open up the market is glacial. In the current
political climate there is even less support for change.
• The non-life penetration rate is among the lowest in the
world, and even though it is growing it will remain
extremely low throughout the forecast period.
• Life density is low and the market has been growing
only slowly.
Weakness
31

43. • The long-term potential of an emerging economy with
more than 1 bn people is unmistakable.
• While GDP per capita remains low, there is an emerging
wealthier group, loosely referred to as 'middle class', and
an elite group of extremely wealthy Indians.
• Various economic forces will probably force the
government to relinquish ownership of major insurers.
Opportunities
• The political environment is not conducive to constructive
change or sound economic management.
• The dominance of entrenched players makes it possible
that the industry will stagnate.
• The legal framework, bureaucracy and financial
infrastructure worsen the insurance business environment.
Threats
32

44. CHAPTER - 4
COMPANY
PROFILE
33

45. Life Insurance Corporation of India
भारतीय जीवन बीमा �नगम
Life Insurance Corporation of India (LIC)
Parent Company Government of India
Category NBFC
Sector Insurance and finance
Tagline / Slogan Yogakshemam Vahamyaham
(Your welfare is our responsibility)
USP India’s Largest Life Insurance Company
STP
Segment Personal and Group Insurance
Target Group Urban and Rural Investors
Positioning Complete Insurance and financial solutions
Competition
Competitors 1. SBI Life Insurance
2. Sahara Life Insurance
3. HDFC Standard Life
34

46. The Life Insurance Corporation of India (LIC) (Hindi: भारतीय
जीवन बीमा �नगम) is the largest state-owned life insurance company in
India, and also the country's largest investor. It is fully owned by the
Government of India. It also funds close to 24.6% of the Indian
Government's expenses. It has assets estimated of INR13.25 trillion
(US$268.71 billion). It was founded in 1956 with the merger of 243
insurance companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of
India, the Life Insurance Corporation of India currently has 8 zonal
Offices and 113 divisional offices located in different parts of India,
around 3500 servicing offices including 2048 branches, 54 Customer
Zones, 25 Metro Area Service Hubs and a number of Satellite Offices
located in different cities and towns of India and has a network of
13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents,
98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance
business from the public.
The slogan of LIC is:
Mission:
"Explore and enhance the quality of life of people through financial
security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic
development."
35

47. Awards:
Some of the important milestones in the life insurance business in India
are:
 1818: Oriental Life Insurance Company, the first life insurance
company on Indian soil started functioning.
 1870: Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.
 1912: The Indian Life Assurance Companies Act enacted as the
first statute to regulate the life insurance business.
 1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses.
 1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.
 1956: 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalized. LIC formed
by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of ` 5 crore from the Government of India. 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
36

48. British. Some of the important milestones in the general insurance
business in India.
 1907: The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.
 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.
 1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set
up.
 1972: The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from
1st
January 1973.
 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.
Products:
 Insurance Plans,
 Pension Plans,
 Unit Plans,
 Special Plans,
 Group Plans.
37

49. Introduction to Life Insurance Corporation (LIC):
The Life Insurance Corporation of India popularly known as “LIC
of India” was incorporated on September 1, 1956 by nationalizing 245
Indian as well as foreign companies. It was established 52 years ago
with a view to provide an insurance cover against various risk in life.
The luminaries who spearheaded this move at that time visualized an
entity that will provide life insurance to Indians, especially the vast rural
people, at an economical cost and channel the savings for the betterment
of the nation. It is the largest life insurance company in India and also
the country’s largest investor. It is fully owned by the Government of
India and headquarter is Mumbai.
Today LIC function with 2048 fully computerized branch offices,
100 divisional offices, 7 Zonal offices and the corporate office. LIC’s
wide area Network cover 100 divisional offices and connects all the
branches through a Metro area network. LIC has tied up with some
Banks and service providers to offer on-line premium collection facility
in selected cities. LIC’s ECS and ATM premium payment facility is an
addition to customer convenience. Apart from on-line kiosks and IVRS,
info centers have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities.
With vision of providing easy access to its policyholders, LIC has
launched its SATELLITE SAMPARK offices. The digitalized record of
the satellite offices will facilitate anywhere to serve and other
convenience in the future.
LIC has crossed many milestones and has set unprecedented
performance records in various aspect of life insurance business. The
same motives which inspired our forefathers to bring insurance into
38

50. existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible
and to help the people in providing security to their families.
The subsidiary companies of LIC:
1. LIC of India, International: A joint venture offshore company
promoted by LIC, commenced its operation in July 1989. The
primary objective is to the US-dollar denominated policies which
cater to the insurance needs of non-resident in Indians. It provides
insurance services to policyholders who residing in Gulf. The LIC
International operates in all Gulf Cooperation Council (GCC)
countries.
2. LIC Nepal: A joint venture company formed in September 2001
with the Vishal Group of Industries with a capital base of ` 250
mn. It is one of the largest capitalized insurance companies of
Nepal. It has joint share between LIC of India (55%) Vishal Group
(25%) and has a public participation to the extent 20%.
3. Life Insurance Corporation Lanka Limited (LICL): A joint
venture company formed in 2003 with the Bartleet Group of
Companies, it is one of the oldest and reliable institutions in Sri
Lanka. The combined strengths of these two formidable companies
has enabled LICL to emerge as the premier provider of Life
Insurance in Sri Lanka. The Indian-based blue chip also has offices
in UK, Mauritius, Fiji, and in all Middle East countries.
39

51. 4. LIC Housing Finance: Incorporated on June 19, 1989; its main
objective is to provide long term finance for construction or
purchase of houses or apartments. The company provides long
terms finance to individuals for purchase, construction, repair and
renovation of new existing flats houses. It also provides finance on
existing property for business, personal needs and gives loans to
professionals for purchase or construction of clinics nursing homes
diagnostic centers office space and also for purchase of
equipment’s. It has set up a representative office in Dubai and
Kuwait to cater to the non-resident Indians in countries covering
Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. It has client group
of over 9,40,000 prudent house owners who enjoy the company’s
financial assistance.
5. LIC Housing Finance Limited Care Homes: It is a Wholly-
owned subsidiary of LIC Housing Finance. It builds and operates
“Assisted Community Living Center” for senior citizens. It operates
a network of approximately 6 regional offices, 13 back offices, and
127 marketing offices.
Products and Services in LIC:
LIC has eight zonal offices and 105 divisional offices located in
different parts of India. It compromises of 2,048 branches and employs
over 10,02,149 agents for soliciting life insurance business from public.
LIC has extended its activities in 12 countries from outside India,
primarily to cater to the insurance needs of non-resident Indians. LIC
aims at strengthening its relationship with its vast customer’s base by
40

52. providing value-added service such as credit cards and offering premium
payment facility to the policyholders. It is the largest insurance player in
India and its objective is to channelize its funds for the benefit of the
community at large. It enjoys a near monopoly power in the solicitation
and sale of life insurance policies in India.
The corporation has major business houses as clients, under the
group business of India. It has more than 1,18,000 corporate clients
covering more than 3,15,00,000 members.
Apart from the corporate group insurance business the pension &
group schemes is responsible for ‘Aam Aadmi Bima Yojna’, a social
security schemes for the rural landless households under the aegis of the
Government of India.
LIC has been investing a major portion of its funds in socially-
oriented sectors with a view to reach every insurable person in the
country and provide adequate financial cover against death at a
reasonable cost. Another goal is to mobilize people’s savings adequately
attractive. LIC has recently tied up with Policybazaar.com an insurance
portal that enables the consumers to get detailed information on the
policy. It is one of the leading online non-life and life insurance
aggregator to sell its policy Jeevan Aastha on the internet.
Objective of LIC:
1. Spread life insurance widely in particular to the rural areas to
socially and economically backward class. This is done with a view
to reach all the insurable persons in the country to provide them
adequate financial cover against death at a reasonable cost.
41

53. 2. To maximize mobilization of people’s savings by making insurance
linked savings adequately attractive.
3. Bearing in mind, the primary obligation to its policyholders, whose
money hold in trust, the investible fund to be deployed to the best
advantage of the investors as well as the national priorities and the
obligations of attractive returns.
4. To conduct business with utmost economy and keeping in mind
that the money belongs to the policyholders.
5. It acts as a trustee of the insured public in its individual and
collective capacities.
6. To meet the various life insurance need of the community that
would arise in the changing social and economic environment.
7. It ensures that all people working in the corporation are involved
to the best of their capability in furthering the interests of the
insured public by providing efficient service with courtesy. Promote
amongst all agents and employees of the corporation a sense of
participation, pride and job satisfaction through discharge of their
duties with dedication towards achievement of corporate objective.
42

54. SWOT
Analysis
Strength 1. Largest state-owned life insurance company
in India, and also the country's largest
investor
2. Has over 2000 branches across all parts of
India and more than 10,00,000 agents.
3. With Largest fund base it is the biggest
investor in India
4. Has over 115,000 employees across India
5. According to The Brand Trust Report, LIC
is the 8th
most trusted brand of India
6. LIC has subsidiaries like LIC Housing
Finance Limited, LIC Cards Services
Limited, LIC Nomura Mutual Fund, LIC
(Nepal) Ltd, LIC (Lanka) Ltd, LIC
(International) BSC (C)
Weakness 1. It has an image of a Government agency
and hence lacks innovation
2. Being a Government agency, red tape and
bureaucracy causes problems
3. Managing a huge workforce during economic
crisis meant overburdened due to salaries
Opportunity 1. Use of Technology to provide effective
services to cater to urban population.
2. Government Schemes implementation
Threats 1. Economic crisis
2. Entry of new NBFCs in the sector
3. Varying Gov. policies
43

55. Reliance Life Insurance Company Limited
Reliance Life Insurance
Parent Company Reliance Capital ltd.
Category NBFC
Sector Insurance and finance
Tagline / Slogan Answer only 7 simple questions
USP Brand Reliance as its foundation
STP
Segment Personal and Group Insurance
Target Group Urban and Rural Investors
Positioning Complete Insurance and financial solutions
Competition
Competitors 1. Bajaj Allianz
2. Sahara Life Insurance
3. HDFC Standard Life
44

56. Reliance Life Insurance Company (RLIC)
Reliance Life Insurance is amongst the top 5 private sector life
insurance companies in terms of individual WRP (weighted received
premium) and new business WRP. The company is by far the largest
non-bank promoted private life insurer with over 10 million policy
holders, a strong distribution network of over 900 branches and over
1,00,000 advisor as on March 31, 2014.
Rated amongst the Top 2 Most Trusted Private Life Insurance
Service Brands by Brand Equity-Nielsen Most Trusted Brands Survey
2014, the company’s vision is “To be a company people are proud of,
trust in and grow with; providing financial independence to every life
we touch.” With this in mind, Reliance Life caters to five distinct
segments, namely Protection, Child, Retirement, Saving & investment and
Health; for individuals as well as Groups / corporate entities.
Reliance Life Insurance is a part of Reliance Capital of the
Reliance Group. Reliance Capital is one of India's leading private sector
financial services companies, and ranks among the top private sector
financial services and non-banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds,
stock broking, life & general insurance, proprietary investments, private
equity and other activities in financial services.
45

57. Nippon Life Insurance Company acquired 26% interest in equity
share capital of the Company effective October 7, 2011 subsequent to
receipt of all regulatory approval.
Nippon Life Insurance, also called Nissay, with 28% market share
is Japan's largest private life insurer with revenues of ` 406,502 crore
(US $ 66 Billion) and profits of over ` 31,145 crore (US $ 5 billion). The
Company has over 21 million policies in Japan, offers a wide range of
products, including individual and group life and annuity policies through
various distribution channels and mainly uses face-to-face sales channel
for its traditional insurance products. The company primarily operated in
Japan, North America, Europe and Asia and is headquartered in Osaka,
Japan. It is ranked 86th
in Global Fortune 500 firms in 2013.
Few men in history have made as dramatic a contribution to their
country's economic progress as did the founder of Reliance,
Shri. Dhirubhai H. Ambani. Fewer still have left behind a legacy that is
more enduring and timeless.
As with all great pioneers, there is more than one unique way of
describing the true genius of Dhirubhai; the corporate visionary, the
unmatched strategist, the proud patriot, the leader of men, the architect of
India's capital markets, and the champion of shareholder interest.
46

58. But the role Dhirubhai cherished most was perhaps that of India's
greatest wealth creator. In one lifetime, he built from scratch, India's
largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a
seed capital of only about US $ 300 (around ` 14,000). Over the next
three and a half decades, he converted this fledgling enterprise into a
` 60,000 crore colossus — an achievement which earned Reliance a place
on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of India's capital
markets. In 1977, when Reliance Textile Industries Limited first went
public, the Indian stock market was a place patronized by a small club
of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-
time retail investors to participate in the unfolding the Reliance story and
put their hard-earned money into the Reliance Textile IPO, promising
them in exchange for their trust, substantial return on their investments. It
was to be the start of one of the greatest stories of mutual respect and
reciprocal gain in the Indian market.
Under Dhirubhai's extraordinary vision and leadership, Reliance
scripted one of the greatest growth stories in corporate history anywhere
in the world, and went on to become India's largest private sector
enterprise.
Throughout this amazing journey, Dhirubhai always kept the
interests of the ordinary shareholder above all else; in the process making
millionaires out of many of the initial investors in the Reliance stock,
and creating one of the world's largest shareholder families.
47

59. Anil Dhirubai Ambani, born on 4th
June, 1959, in Mumbai.
He is the younger son of the visionary entrepreneur Shri. Dhirubhai
Ambani and lives with his mother Kokilaben Dhirubhai Ambani in
Mumbai. Graduated (B.Sc. in Science) from K. C. College, Mumbai
University and MBA at Wharton, University of Pennsylvania. He is
married to former actress - Tina Munim and has two sons – Jai Anmol
(23 Years) and Jai Anshul (19 Years). He has an elder brother Mr.
Mukesh Ambani and two younger sisters Mrs. Dipti Salgaocar and Mrs.
Nina Kothari.
Corporate:
Anil Dhirubhai Ambani is one of India’s leading business leaders
and founder of the Reliance Group; whose constituent business enterprises
are engaged in pivotal roles in the ongoing economic transformation of
India. He is the Chairman of the Reliance Group; including, Reliance
Communications, Reliance Capital, Reliance Infrastructure, and Reliance
Power.
Anil or ADA, as he is often referred to by his colleagues, founded
the Reliance Group in 2006 and in less than 10 years, the Reliance
Group has built a leadership position in major growth sectors of the
Indian economy, including telecommunications, generation, transmission
48

60. and distribution of renewable and non-renewable sources of power,
national road highways, metro rail systems, cement, financial services,
education, healthcare, media and entertainment.
Key Indicators of Reliance Group:
Reliance Group is amongst India's top 5 business houses and has
the world's largest Shareholder / Investor base of over 13 million
shareholders and investors. Reliance Group has assets in excess of
` 2,60,000 Crore (US $ 43 billion); annual Revenues of the order of
` 56,000 Crore (US $ 9 billion); Net Worth of over ` 98,000 Crore
(US $ 16 billion); and over 1,00,000 employees.
Shri Ambani has been associated with a number of prestigious
academic institutions in India and abroad.
To be a Company people
are proud of, trust in and grow with;
providing financial independence to every
life we touch
Planning people's future and standing by them in their hour of
need goes beyond business, it takes a selfless intent of thinking well for
others. Our advisors enjoy high credibility and stature in society, having
helped not only shape future of families, but also recuperate in tough
times. 'Do Good' is our intent, our philosophy and belief that we aim to
bring alive through every life we touch.
49

61. Board of Directors:
 Rajendra Chitale, Independent Director
 Soumen Chitale, Non-Executive Director
 Amit Bapna, Non-Executive Director
 Kazuhide Toda, Non-Executive Director
 Anup Rau, Chief Executive Officer and Executive Director
 D. Varadarajan, Independent Director
 Renu Challu, Independent Director
Key Persons::
 Mr. Anup Rau Velamuri,
 Chief Executive Officer
 Mr. S. V. Sunder Krishnan,
 Chief Risk Officer
 Mr. Sunil Agarwal,
 Chief Finance Officer
 Mr. Srinivasan Iyengar,
 Chief Operating officer
50

62.  Mr. Alok Kalra,
 Head of Marketing
 Mr. Viral Berawala,
 Chief Investment Officer
 Mr. Sameer Karekatte,
 Chief Compliance Officer
 Mr. Ashish Lakhtakia,
 Company Secretary
 Ms. Kavita Maru,
 Chief Internal Auditor
 Mr. Prithesh Kumar Chaubey,
 Appointed Actuary
 Ms. Puja Mehta,
 Principal Compliance Officer - AML
51

63. 52

64. SWOT
Analysis
Strength 1. Robust and Diverse Product portfolio
2. Has network of 1252 offices and 1,65,000
agents
3. Strong Capital Base and strong brand backing
of Reliance
4. Reliance Capital is one of India’s leading
private sector financial services companies,
and ranks among the top 3 private sector
financial services and banking companies, in
terms of net worth
Weakness 1. Controversies related to Reliance Capital may
have a negative impact
2. Low advertising as compared to competitors
Opportunity 1. Opportunities in the newer semi-urban and
rural markets
2. Earning Urban Youth looking for investments
Threats 1. Economic crisis and global financial
problems
2. Entry of new NBFC’s in the sector
53

65. Aditya Birla Group
&
Sun Life Financial, Inc.
Birla Sun Life
Parent Company Aditya Birla Group & Sun Life Financial Services
Category NBFC
Sector Insurance Services
Tagline / Slogan ‘Zindagi ke utar chadav mei jiyo vishwas ke saath’;
Leaving nothing to chance
USP Expertise in Insurance across Continents
STP
Segment Personal and Group Asset Management
Target Group Urban and Rural Investors
Positioning Complete Insurance and financial solutions
Competition
Competitors 1. LIC
2. SBI Life Insurance
3. HDFC Standard Life
54

66. Overview:
Birla Sun Life Insurance Company Limited (BSLI) is a joint
venture between the Aditya Birla Group, a well-known Indian
conglomerate and Sun Life Financial Inc., one of the leading international
financial services organizations from Canada. With an experience of over
a decade, BSLI has contributed to the growth and development of the
Indian life insurance industry and currently is one of the leading life
insurance companies in the country.
Company Profile:
Established in 2000, Birla Sun Life Insurance Company Limited
(BSLI) is a joint venture between the Aditya Birla Group, a well-known
and trusted name globally amongst Indian conglomerates and Sun Life
Financial Inc., leading international financial services organization from
Canada. The local knowledge of the Aditya Birla Group combined with
the domain expertise of Sun Life Financial Inc., offers a formidable
protection for its customers' future.
With an experience of over 10 years, BSLI has contributed
significantly to the growth and development of the life insurance industry
in India and currently ranks amongst the top 7 private life insurance
companies in the country.
55

67. Known for its innovation and creating industry benchmarks, BSLI
has several firsts to its credit. It was the first Indian Insurance Company
to introduce "Free Look Period" and the same was made mandatory by
IRDA for all other life insurance companies. Additionally, BSLI
pioneered the launch of Unit Linked Life Insurance plans amongst the
private players in India. To establish credibility and further transparency,
BSLI also enjoys the prestige to be the originator of practice to disclose
portfolio on monthly basis. These category development initiatives have
helped BSLI be closer to its policy holder’s expectations, which gets
further accentuated by the complete bouquet of insurance products (viz.
pure term plan, life stage products, health plan and retirement plan) that
the company offers.
About Birla Sun Life Insurance:
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture
between the Aditya Birla Group, a well-known Indian conglomerate and
Sun Life Financial Inc., one of the leading international financial services
organization’s from Canada. With an experience of over a decade, BSLI
has contributed to the growth and development of the Indian life
insurance industry and is currently one of the leading life
insurance companies in the country. BSLI has a customer base of over
two million policy holders. The Company offers a complete range of
offerings comprising protection solutions, children's future solutions,
wealth with protection solutions, health and wellness solutions, retirement
solutions and savings with protection solutions. It has an extensive
distribution reach in over 500 cities through its network of over 560
branches, around 85,000 empanelled advisors and over 140 partnerships
with corporate agents, brokers and banks. Birla Sun Life Insurance has
56

68. total assets under management of ` 26,813 Crores and a robust capital
base of over ` 2,170 Crores, as on 30th
Jun, 2014. For more
information, please visit www.birlasunlife.com
About Aditya Birla Financial Services Group (ABFSG):
Aditya Birla Financial Services Group (ABFSG) ranks among the
top 5 fund managers in India (excluding LIC) with an AUM of USD
20.4 billion. Having a strong presence across the life insurance, asset
management, NBFC, private equity, retail broking, distribution & wealth
management, and general insurance broking businesses, ABFSG is
committed to serve the end-to-end financial services needs of its retail
and corporate customers.
The seven companies representing ABFSG are: Birla Sun Life
Insurance Company Ltd., Birla Sun Life Asset Management Company
Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd.,
Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd. and Aditya
Birla Insurance Brokers Ltd.. In FY 2013-14, ABFSG reported
consolidated revenue from these businesses at ` 6,640 Crore (USD 1.1
billion) and earnings before tax at ` 745 Crore. Anchored by about
13,000 employees and trusted by over 5.3 million customers, ABFSG has
a nationwide reach through 1,500 points of presence and about 130,000
agents / channel partners.
About Aditya Birla Nuvo:
Aditya Birla Nuvo is a USD 4 billion conglomerate operating in
the services and the manufacturing sectors, where it commands a
leadership position. Its service sector businesses include Financial Services
57

69. (Life Insurance, Asset Management, NBFC, Private Equity, Broking,
Wealth Management and general insurance advisory), Fashion & Lifestyle
(Branded apparels & Textiles) and Telecom. Its manufacturing businesses
comprise of the Agri, Rayon and Insulators businesses.
Aditya Birla Nuvo is part of the Aditya Birla Group, a USD 40
billion Indian multinational. The Group operates in 36 countries across
the globe, is anchored by an extraordinary force of about 120,000
employees belonging to 42 nationalities and derives more than 50% of its
revenue from its overseas operations.
About Sun Life Financial:
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth products
and services to individuals and corporate customers. Sun Life Financial
and its partners have operations in key markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong Kong, the
Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam,
Malaysia and Bermuda. As of June 30, 2014, the Sun Life Financial
group of companies had total assets under management of $ 684 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York
(NYSE) and Philippine (PSE) stock exchanges under the ticker symbol
SLF.
VISION:
To be a leader and role model in a broad based and integrated financial
services business.
58

70. Values:
• Integrity,
• Commitment,
• Passion,
• Seamlessness,
• Speed.
Awards:
Year Awarded From Title
2012 The Institute of Chartered
Accountants of India (ICAI)
'Gold Trophy' for Financial
Reporting
2012 The South Asian Federation of
Accountants (SAFA)
'Best Presented Accounts &
Corporate Governance
Disclosures Awards
2012 Golden Peacock Award Excellence in Corporate
Governance
2012 Effies Gold in the 'Services category'
2012 Kaan awards Best use of Radio
2012 Asian Confederation of Businesses Best Employer Brand Award
2012 Golden Peacock HR Excellence Golden Peacock HR Excellence
Award
2011 Golden Peacock Global Awards
Secretariat
Golden Peacock Award
2011 Internet Advertising Competition
(IAC)Awards 2011
Best Insurance Integrated ad
campaign (NotJobsButPassion
campaign)
59

71. 2011 Advertising Agencies Association
of India & Advertising Club
Bombay
Bronze - Media Abby Awards at
Goa Fest 2011 as Best Never
Before use of Media
2011 Advertising Agencies Association
of India & Advertising Club
Bombay
Gold - Creative Abby Awards at
Goa Fest 2011 as Direct
marketing Dimensional Mail
2011 Advertising Agencies Association
of India & Advertising Club
Bombay
Best use of Outdoor & Ambient
media Awards at Goa Fest 2011 -
Direct marketing Flat Mail
2011 BBC.com-Campaign India Digital
Media Awards 2011
Gold - "financial services
website" category for Birla Sun
Life Insurance -
NotJobsButPassion microsite
2010 APPIES 2010 - Asia Pacific
Advertising & Marketing Congress
Silver Medal & a letter of
appreciation for - Wealth with
Protection Solutions campaign
2010 14th Annual Webby Awards 2010 Official Nominee - BSLI Email
marketing campaign 'Save
Forest'
2009 Institute of Chartered Accountants
of India (ICAI)
ICAI Awards for Excellence in
Financial Reporting - Silver in
Insurance Category
2009 - Recruiting and Staffing Best in
Class Awards
2004 Outlook Money Awards 2004 Best Life Insurer (Runner Up)
2004 TROPHY
2004 Outlook Money Awards 2004 Best Life Insurer (Runner Up)
2004 CERTIFICATE
60

72. 2004 The 8th Asia Insurance Industry
Awards 2004
Top five nominees in the
category
2005 The Indo-Canadian Business
Chamber
'Successful Performance' for 4
years April 2005
2004 Hewitt 'The Hewitt Best Employers In
India Awards 2004' Trophy
2007 Anil Sachdev (Chairman & MD of
Grow Talent Company Ltd) Robert
Levering (Co-founder Great Place to
Work Institute) and Jehangir Pocha
(Business World Magazine)
'The Great Place to Work
Seminar Series 2007'
2006 Dr. Bhishma Narain Singh (Former
Governor of Tamil Nadu & Assam)
in association with the "Institute of
Economic Studies (IES)"
The Bhartiya Shiromani Puraskar
for Enhancing the image of India
2005 The Mayor, David Miller - Toronto A letter sent to BSLI - A
Message
2004 Hewitt Hewitt Best Employers in India
2004
2004 Asia Insurance Review Sponsorship Acknowledgement
for - The Asia Insurance Review
61

73. Our People:
62

74. 63

75. SWOT
Analysis
Strength 1. Has Network of 600 branches and advisors
spread over 1500 towns in India having
over 130,000 advisors
2. Backed By Aditya Birla Brand and Sun Life
financial services
3. Emphasis on Customer Satisfaction through
Transparent Functioning
4. Strong Capital Base
Weakness 1. Low Presence in Rural Market
2. Lesser advertising as compared to
competitors
Opportunity 1. Growing potential in the Rural Market
2. Alignment with Government Schemes
3. Better awareness amongst people for getting
insurance
Threats 1. Economic crisis and economic instability
2. Entry of new NBFC’s in the sector
64

76. CHAPTER - 5
RESEARCH
METHODOLOGY
65

77. Objective of Project:
The current research will be aimed at determining the HR Practices and
Policies. The research will be focused on the following major issues.
a) To study the significance of HR policies.
b) To study the system development.
c) To measure the factors related to HR Practices and Policies.
d) To study the employee relation and executive response for
Practices and Policies in Insurance Industry.
RESEARCH METHDOLOGY:
In order to cope up with the emerging challenges due to tough
global competitions, the way out for this is to produce quality products
at reasonable prices. This is possible only through an organization culture
of quality consciousness and enhanced productivity. Optimal utilization of
resources especially the human resources are one sure way of meeting
this objective. That’s why proper induction of an employee is very
important.
Research Design:
Research design means a specified framework for controlling the
data collection. The research is of descriptive in nature, which could
provide an accurate picture of induction procedure conducted in the
organization. Descriptive research includes surveys and fact-finding
inquiries of different kinds. The research is of Ex post facto nature in
which researcher no control over the variables has. Statistical method lay
66

78. stress on objectivity rather than rely on intuition and judgment and
average & percentages can easily be calculated.
Research Instrument:
The following methodology was adopted in project::
• Comprises of understanding the theoretical concepts in
general,
• Questionnaire study,
• Analysis of the primary data,
• Analysis of the secondary data.
DATA COLLECTION TECHNIQUES:
Sources of Data:
The statically method needs the collection of data in two forms:
a) Primary Data
b) Secondary Data
a) Primary Data
The primary data are those, which are collected a fresh and for the
first time, and thus happen to be original in character. The data on
the required information is collected from actual persons using the
product/services. This data is more suited for the objectives of the
project.
67

79. b) Secondary Data
The data which have already been collected by someone else or
taken from published or unpublished sources and which have been
already been passed through the statistical process.
MODE OF DATA COLLECTION:
The study is based on Secondary data which includes:
Secondary Data:
Secondary Data will be gathered from books and journals on HR
Practices and Policies in Insurance Industry.
SAMPLING PLAN:
Sample Size:
Unit :: 100 Employees
Universe:
The universe of the study was be Insurance Industry.
Contact method:
The respondents sampling personally will be prepared to interview
100 employees..
68

80. CHAPTER - 6
DATA ANALYSIS
&
INTERPRETATION
69

81. DATA ANALYSIS AND INTERPRETATION
A.INDUCTION PROGRAM
1) Does company provide induction for new employees?
Answer Respondents Percentage
Yes 93 93 %
No 7 7 %
INTERPRETATION:
 The graph shows that almost all the companies are following
induction practices.
 Near about 93% of the companies follow induction practices
while 7% of them don’t follow it.
 Induction is although inseparable part for HR practices. Yet
there are companies, which don’t follow a standard procedure of
induction but make it just through personal explanation of
working strategy of the dept.
Yes, 93
No, 7
Induction Practices
Yes
No
70

82. 2) Who participates in delivering induction?
Answer No. of respondents Percentage
HR Department 35 35 %
Related Department 40 40 %
All Department 25 25 %
INTERPRETATION:
 Most of the companies follow delivery of induction by related
departments.
 According to the survey approximately 40% of the companies
follow induction practice through related dept., which explains
working of respective dept. to the employees.
 Compared to 40% of induction done by related dept. 35% is been
done by HR dept. and only 25% is performed by all dept.
.
HR Department
Related
Department All Department
0%
20%
40%
60%
80%
100%
35 40
25
Involvement in Induction
71

83. 3) Is Induction same for all levels or different?
Answer No. of respondents Percentage
Same for all 40 40 %
Different for
different levels 60 60 %
INTERPRETATION:
• Most of the companies say that induction process is different for
different level of employees while some says that the induction
procedure they follow is same for all level of employees.
• The company may prepare a common induction procedure to
explain the policies, work culture of the company, the benefits the
company provide, the basis to be adopted for transfers and
separations, basis for promotions, and a brief history of the
organization, yet the process to be followed for individual working
environment must be different.
40
60
Level of Induction
Same for all
Different for different
levels
72

84. B. BEHAVIORAL TRAINING
4) How does the company recognize the need of training.
Answer No. of respondents Percentage
Through Questionnaire 20 20 %
Performance
Monitoring 30 30 %
Reference from
Supervisor 30 30 %
Absence in Pride 4 4 %
Defective Quality
Product 6 6 %
Unsatisfactory
Promotions 10 10 %
20
3030
4
6
10
Training Need
Through
Questionnaire
Performance
Monitoring
Reference from
Supervisor
Absence in Pride
Defective Quality
Product
Unsatisfactory
Promotions
73

85. INTERPRETATION:
• There may be several methods for training among which most
commonly adopted method is reference through supervisor.
• Although 30% of superiors depends on performance monitoring
approach to decide for providing training to their employees.
• Although 10% of superiors depends on unsatisfactory promotions
approach to decide for providing training to their employees.
• And only 20% rely on questionnaire method, 6% rely on defective
quality product and only 4% rely on absence in pride.
74

86. 5) What type of training is conducted?
Answer
No. of
respondents Percentage
On the Job Training 50 50 %
Class Room Sessions 30 30 %
Online Training 10 10 %
Apprentice Training 5 5 %
Outdoor Training 5 5 %
INTERPRETATION:
• Though various types of training methods are adopted this
comprises of on the online training, apprentice training, classroom
training, job training, and outdoor training. But the most commonly
adopted method is on the job training, which is practiced in almost
all companies.
• Then do the companies prefer the outdoor training, which is, again
most adopted one whereas online training is least.
50
30
10
5 5
Type of Training
On the Job
Training
Class Room
Sessions
Online Training
Apprentice
Training
Outdoor
Training
75

87. 6) What is the annual budget for training?
Answer No. of respondents Percentage
1 - 2 Lac. 5 5 %
2 - 3 Lac. 40 40 %
3 - 5 Lac. 50 50 %
5 - 10 Lac. 5 5 %
INTERPRETATION:
• The budget is decided depending upon the need of the employee
and the degree of skills and knowledge already possessed by the
employees and also depending the need of the organization.
• Most of the companies i.e. almost 40% of companies keep their
budget around ` 2 to 3 lac and almost 50% of companies keep
their budget around ` 3 to 5 lac.
• Although some organizations have as high as ` 5 to 10 lac
assigned as budget for training.
5
40
50
5
0
10
20
30
40
50
60
1 - 2 Lac. 2 - 3 Lac. 3 - 5 Lac. 5 - 10 Lac.
Training Budget
76

88. 7) What is the module duration for training programme?
Answer No. of respondents Percentage
Less than a week 60 60 %
Minimum of 2 hrs.
to 2 days 10 10 %
Maximum to 6-7 days 20 20 %
For 4 week 10 10 %
INTERPRETATION:
• Most of the companies prefer to go for training for less than 1
week it is mostly ranging from a minimum of 2 hrs. to 2 days
and maximum to 6 to 7 days.
• Some of the companies even go for a training for 4 weeks, which
makes their employees completely trained about the skills they are
lacking in.
• The companies even go for job rotation, which help them go for
all round development.
60
10
20
10
Training Module
Less than a week
Minimum of 2 hrs. to
2 days
Maximum to 6-7 days
For 4 week
77

89. C. MOTIVATIONAL TOOLS
8) Does the company provide any profit sharing policy?
Answer No. of respondents Percentage
ESOP’s 4 4 %
Bonus 80 80 %
Shares 10 10 %
None 6 6 %
INTERPRETATION:
• Although there may be various profit sharing methods which may
work as motivational aspect for the employees. It could be through
ESOPs, excreta etc., yet the most preferred one could be providing
bonus to the employees who fall in to this category as per
government rule.
• According to the survey 10% of the organizations declare shares
for their employees and 80% prefer to declare bonus time to time.
4
80
10
6
Profit Sharing
ESOP’s
Bonus
Shares
None
78

90. 9) Does the company provide any recreational activities.
Answer No. of respondents Percentage
Picnics 30 17 %
Tours 50 28 %
Family Outings 60 33 %
None 0 0 %
Others 40 22 %
30
50
60
0
40
0
10
20
30
40
50
60
70
Picnics Tours Family Outings None Others
Recreational Activities
79

91. INTERPRETATION:
• Recreational activities are quite important for maintaining
interpersonal relations among the staff and to develop enthusiasm
among the employees. Moreover it’s a part of welfare activity,
which even work as motivational aspect.
• The company could conduct many activities, which could gather the
company staff together at a common platform. These activities
could be picnics , tours, outings, parties, functions, get together.
• These activities not only enhance the interpersonal relations but also
help the families of the employees interact.
• According to the survey the most preferred activity is get together
which approaches up to approx. 100% of the organizations and the
least preferred one is company tours.
80

92. 10) Does company provide any retirement benefits?
Answer No. of respondents Percentage
Gratuity 20 20 %
VRS 4 4 %
PF 60 60 %
Pension 10 10 %
Old Age Security 6 6 %
INTERPRETATION:
• As per government rule providing 60% provident funds (PF) and
20% gratuity & 4% VRS (Voluntary Retirement Scheme) is the
rule thus it is provided by all the organizations.
• Apart from these, organizations provide other benefits too. 6% of
the organizations provide age relaxation so that the employees could
serve a little more to the organization and approx. 10% provide
pensions to retired employees.
20
4
60
10 6
Retirement Benefits
Gratuity
VRS
PF
Pension
Old Age
Security
81

93. D. WELFARE ACTIVITIES
11) What are the welfare activities taken up by the
organization.
Answer No. of respondents Percentage
On Duty Doctors 75 62.5 %
Collaboration
with Hospitals 12 10 %
Ambulance for
Emergency 18 15 %
First aid kit 15 12.5 %
None 0 0 %
75
12
18
15 0
Welfare Activities
On Duty Doctors
Collaboration with
Hospitals
Ambulance for
Emergency
First aid kit
None
82

94. INTERPRETATION:
• Most of the organizations provide all the major welfare activities to
their employees.
• Almost 10% of the companies provide first aid facilities and
cafeteria.
• Almost 80% of them the organizations provide on duty doctors to
their employees.
• Although the maintenance of these uniforms may be taken by either
the HR dept. or the employees by themselves.
• Almost 10% of the organizations have collaboration with hospitals.
• It may be company bus, or the company vehicles; in some cases
the company provides traveling allowance.
83

95. 12) Does organization adopt any job safety measures?
Answer No. of respondents Percentage
Fire Safety 60 60 %
Electric/Shock
Safety 20 20 %
Radiation Safety 10 10 %
Handling of
Machinery 10 10 %
INTERPRETATION:
• Various safety measures, which could be adopted by the
organizations, could be from fire, shock and electricity, safety while
handling machinery, and operational health and safety measures
(OH&S facility).
• According to the survey almost all the organizations adopt all these
safety measures.
• The result is 100% implementation of these practices.
6020
10
10
Safety Measures
Fire Safety
Electric/Shock
Safety
Radiation
Safety
Handling of
Machinery
84

96. E. REWARDS AND RECOGNITION
13) What appreciation scheme is followed by the
organization.
Answer No. of respondents Percentage
Appreciate
Publically 8 8 %
Incentives 10 10 %
Increments 70 70 %
Promotions 12 12 %
70
10
8
12
Appreciation Scheme
Appreciate Publically
Incentives
Increments
Promotions
85

97. INTERPRETATION:
• The organization may provide perks, promotions, monetary rewards,
increments, incentives or even an appreciation in public matters a
lot.
• According to the survey the most common, adopted and preferred
one is increments for better work performance, then comes the
promotions & monetary incentives.
• Almost 70% of the organizations prefer to go for increments and
12% provide promotions & 10% provide monetary incentives.
• Least preferred one is public appreciation count to 8%.
86

98. 14) What are various award & recognition schemes of the
organization?
Answer No. of respondents Percentage
Additional Pay for
Extra Work 22 22 %
Paid vacations 60 60 %
Overtime 8 8 %
Monetary Rewards 6 6 %
Perks 4 4 %
22
60
8
6 4
Reward Basis
Additional Pay
for Extra
Work
Paid vacations
Overtime
Monetary
Rewards
Perks
87

99. INTERPRETATION:
• There are various methods to reward an employee for his
outstanding performance. The organization may provide them with
paid vacations, additional pay for additional work, overtime,
monetary rewards, perks etc.
• According to the survey perks are the most preferred means of
rewarding the employees, then is paying overtime and least
preferred is paid vacations.
• Paid vacations counts to 60% of the choice, and perks the least to
4%.
88

100. 15) How the organization recognize outstanding performer.
Answer No. of respondents Percentage
Regularity 40 40 %
Punctuality 30 30 %
Initiative 20 20 %
Extra Work 6 6 %
Productivity 4 4 %
40
30
20
6
4
Basis of Judgement
Regularity
Punctuality
Initiative
Extra Work
Productivity
89

101. INTERPRETATION:
• Although almost all the organizations go for all:
 Punctuality
 Regularity
 Initiative
 Productivity
 Extra work
• But according to the survey the most preferred basis is punctuality
followed by initiative and productivity.
• Regularity comprises 40% preference in deciding the right candidate
for reward and Punctuality, Initiative and Productivity aspect counts
equal to 30%, 20% and 4%.
90

102. CHAPTER - 7
FINDINGS
&
OBSERVATION
91

103. LIMITATIONS
This report had to work under several constraints and
limitations. Some of the key limitations are…..
 VERY TIME CONSUMING in the fast competitive market
everybody is busy in performing his / her job. It is really hard for
the managers to spare time. So it is time consuming.
 TIME CONSTRAINTS understanding the work culture of any
organization in few weeks is very hard task. For doing project few
weeks are not enough. Managers were very busy so managing time
with them was quite difficult.
 As the researcher was an outsider so co-ordination with the
employees took some time and it was formal.
 HR managers were quite reserved in sharing their company’s
policies with an outsider.
 The sample size of study was small..
92

104. CONCLUSION
At last I want to say that while recruitment and selection identify
acceptable candidate, the process still continue with induction program for
the new employee, we can further fine tune the fit between the
candidate’s qualities and the organization’s desire. Then to make the
employees more skilled behavioral training may be provided.
It makes the positive impact of any organization, but it needs a lot
of money, time, attention and guidance. It is just like only taking, not
giving or taking the starting benefits and when the time comes for
returning back you just quit the job. So it is not always fruitful.
The employee motivation is needed to be built up through constant
attempts of the organization. The organization may adopt various methods
for motivating the employees. It may be by providing recreational
activities such as tours, picnics, family outings, annual days, sport days,
functions, and parties. The organization must consider its employees as its
family members and must provide some profit sharing policy such as
ESOPs , bonus, and shares. The organization may provide fringe benefits.
Welfare activities to be undertaken by the organization
may include various facilities such as uniform for the
employees for whom HR department is responsible for its
maintenance and providing it.
Last but not the least rewards are the main motivational activity,
which may be monetary and non-monetary rewards.
93

105. At last to conclude, I would like to say that with enthusiasm that
it was a great experience working with many experienced people working
at senior positions. Interacting and spending time with the people rich in
learning experience. The people were very cooperative and helpful and
encouraging. It is an experience to be cherished for a long time.
It was great of learning so much about HR practices and
implementing them. I’m really thankful for all the senior members who
explain me the working strategies and methodologies of organizations.
94

106. SUGGESTIONS
As in the competitive world where the need for every organization
to prove itself the best and make an outstanding and remarkable progress
is the need, no fact could be left ignored. Every organization must know
the shortcomings and must try to go for building up the shortcomings.
An ethical practice in any organization could only be achieved if the
organization works for the well-being of its employees. Every
organization must possess a basic structure and the organization must be
capable enough to reward its outstanding performers and must appreciate
the initiative works.
According to the survey been conducted with various HR heads of
various organizations here are few suggestions from their side:
A. INDUCTION PRACTICES:
Induction is must in every organization for all level of employees to
make them well known of the industry they are working in.
The best ways to perform induction may be through:
 Lectures,
 Power point presentations prepared explaining company’s policies,
 Through SOPs (Standard operating procedures),
 Manuals,
 Diaries,
 But the most adopted one is through personal induction.
95

107. The induction program must follow a proper feedback from
employees been put into the program which is again an ethical practice
and is achieved by:
 Induction scheduling,
 Opinions from supervisors,
 Feedback forms.
B. BEHAVIORAL TRAINING:
• Behavioral training is boon for any organization.
• The organization could provide on the job training, which is
quite common and most adopted. The organization may also
go for outdoor training
• Job rotation could be preferred which could make the
employee skilled in overall working of an organization.
• The organization may provide a basic training for FIRST
AID & SAFETY OR FIRE SAFETY TRAINING.
• The organization may have tie ups with the training
organizations which could organize courses and the
organization may take up the best course as per requirements
of their staff.
• A proper feedback must be taken to grasp the extent the
employees have versed themselves with knowledge.
• Proper Feed-back could be taken through-
 Evaluation,
 Questionnaire,
 Feedback forms,
 Submission of report through trainee,
 Feedback through trainers.
96

108. C. MOTIVATIONAL TOOLS:
Motivating for work is inseparable to continue productivity. But
work when itself serves as motivation then progress is inevitable. The
organization must take great care to motivate its employees through
various methods.
Promotion may be one of the best motivational factors. Promotional
basis could be -
 Work Performance,
 Qualification,
 Performance Evaluation,
 Skill Enhancements,
 Initiative steps taken .
Organization may also provide fringe benefits such as:
 Leave Traveling Allowance,
 Medical,
 Free Transportation,
 ESI (Employee State Insurance),
 Furnishing Scheme,
 House Lease,
 Hospitalization.
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109. D. WELFARE ACTIVITIES:
The organization may adopt welfare policies such as:
 Transportation facility,
 Canteen facility with breakfast, lunch and dinner facility along
with refreshments.
 Canteen could be free, subsidized, paid. But the most
preferred one is through subsidized mode.
 The organization must also possess first aid facilities for its
staff. A well-versed rehabilitation of injured staff and an duty
doctor or an ambulance should be always provided.
 The organization must also possess a grievance handling
committee despite a union to take an action for their
problems. It could be a three-tier of four-tier grievance
committee.
E. REWARD AND RECOGNITION SCHEME:
Rewarding the best work not only provide the candidate with
appreciation but also provide enthusiasm to do better. A competitive spirit
is also developed to perform the best.
Some of the practices of rewarding the employees practiced in
organizations are:
 Award after completion of 10 years of service,
 Company’s well-furnished housing & hotels for officers,
 Paid vacations to foreign countries,
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110.  Yearly reward scheme,
 Overall equipment efficiency reward,
 Quality man of the year award,
 Best man of the year,
 Best kaizen award,
 Increments,
 Promotions,
 Incentives,
 Monetary rewards,
 Public appreciation.
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111. RECOMMENDATIONS
For all the programs the organization must follow feedback method
to understand the effectiveness of any practice in a better way.
Holistic views of induction should out show both positive and
negative aspects of the organization. This ultimately let the employee
know about both the phases of the policies adopted by the organization.
Practice of providing a brief presentation of the company and a
booklet for rules and regulations of company must be maintained so that
the employee could go through it whenever required.
Individual should concentrate more while training. When an
organization invest on training of an employee, the purpose of training
serves the mutual benefit of both organization and the employee. Thus,
the employee should be more oriented towards drawing as much benefits
as he can. Employees are supposed to understand their role for particular
training program.
Company must maintain training manuals or training charts and
training report submitted by the trainee. This, practice not only keeps a
maintained record of the programs been conducted but also keep the
employee known of the knowledge gained by him which could later be
utilized.
A pre-evaluation and post-evaluation practice should be followed to
understand the success of training and the training could be then
effectively used to fill gaps later.
Continuous training module should be conducted, personality
development training should be provided.
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112. • To motivate the employees,
• Performance awards could be given every year,
• Incentives could be paid,
• Salary saving schemes could be provided.
Extra activities such as games and sports, community meetings,
recreational activities, picnics, tours and outings should be planned to
improve the interpersonal relationships.
External welfare activities could also be taken up by the
organization such as –
 Blood donation camps,
 Safety week,
 Free eye camps,
 Free books for children,
 Poster and quotes competition could be organized.
Devotion, belongingness and good team member spirit should be
rewarded. Employees should be encouraged for group efforts and team
work.
To avoid worker union for better employee welfare and give
suitable welfare activities from time to time to the employees in house
work committee should be developed to handle the grievance.
Employee’s participation is key issue. Thus, suggestions should
always be invited and maximum efforts should be put up to implement
the suggestions.
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113. INITIATIVE SUGGESTIONS:
Employee’s family’s involvement in motivating employee is the key
element. It creates a special pressure point.
 Drawing competitions of children could be organized.
 Special training for wives could be arranged to teach them
what are the do’s and doesn’t.
 Special scholarships could be announced for the children of
employees securing good marks.
Management by objective should be adopted. The practice should
be objective to avoid biasness.
Kaizen award could be given to the implementer of best
suggestion.
BENEFITS:
“The new environment in INDIA is an environment of change, a change
brought by an awakening among the people of INDIA who demand a
fair deal for themselves and for their children. This situation constitutes
a great challenge for managers. All managers, whether they are
managing business or offices, farms or factories, whether they are called
business executives or civil servants, will have to measure up to this
challenge”.
-- MRS. INDIRA GANDHI
For scientific and systematic execution of all human activities, two
essential watch words are - administer well and manage well.
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114. Thus focusing the benefits of ethical HR practices are:
 INCREASED PRODUCTIVITY: HR practices deals with
training process which teach the employees proper handling
of resources and the methods to put their resources to
optimum utilization with minimization of losses and minimum
wastage.
 EMPLOYEE SATISFACTION: HR goes for human resource
development functioning. It looks after the welfare activities
of the employees. Take care of their problems. Thus, an
overall care of their health, transportation, meals and well-
being is taken. Which ultimately results into employee
satisfaction?
 INDUSTRIAL PEACE: Ethical HR practices contain a well
maintained grievance handling machinery which deals with the
internal problems and provide employees with satisfactory
solutions.
 ORGANIZAED WORK PATTERN: With the ascent of HR
practices the organization follows the process of
departmentation. Which further results to delegation of work
and an organized work pattern.
 BETTER INTERACTION: Through recreational activities
been organized by the organization (like- parties, picnics,
get-together, annual days celebration). This inculcate team
spirit among the employees.
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115.  BETTER ADMINISTRATION: Through following a fixed
and scheduled work pattern like- induction feed-backs,
induction scheduling, training feed-backs, performance
appraisal forms etc.
 KNOWLEDGE ENHANCEMENT: Through trainings (on-
the-job training, out-door training etc.)
 PARTICIPATION IN MANAGEMENT: through suggestions
and kaizen practices.
 MORALE ENHANCEMENT: Through motivational activities
and reward and recognition schemes.
 EMPLOYEE ADVANCEMENT
 SYSTEMATIC SCHEDULE
 EMPLOYEE CARE
 GOOD INTERPERSONAL RELATION
104

116. CHAPTER – 8
ANNEXURE
105

117. Bibliography:
I. Dr. P. Subba Rao- Essentials of Human Resource
Management And Industrial Relations (Himalaya
Publishing House, 3rd Revised Edition)
II. K Aswathapa- Human Resource and Personnel
Management (Tata McGraw Hill, 5th Edition)
III. C. R. Kothari - Research Methodology Methods &
Techniques (New Age International Publishers, 2nd
Edition, 2004)
Webliography:
 http://www.licindia.in/
 http://www.reliancelife.com/
 http://insurance.birlasunlife.com/Pages/Individual/About-
Us/Company-Profile.aspx
 http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_
India
 http://en.wikipedia.org/wiki/Reliance_Life_Insurance
 http://en.wikipedia.org/wiki/Sun_Life_Financial
 http://en.wikipedia.org/wiki/Aditya_Birla_Group
106

118.  http://top10companiesinindia.co.in/2013/06/07/top-10-
insurance-companies-in-india/
 http://en.wikipedia.org/wiki/List_of_insurance_companies_i
n_India
 http://en.wikipedia.org/wiki/Human_resource_policies
 http://www.mbaskool.com/brandguide/banking-and-
financial-services/1016-birla-sun-life.html
 http://www.mbaskool.com/brandguide/banking-and-
financial-services/1020-reliance-life-insurance.html
 http://www.mbaskool.com/brandguide/banking-and-
financial-services/1019-life-insurance-corporation-of-india-
lic.html
 http://www.policyholder.gov.in/
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119. Questionnaire
Respected Sir/Mam,
This questionnaire is to study the “HR POLICIES AND
PRATCIES IN INSURANCE INDUSTRY WITH SPECIAL
REFERENCE TO LIFE INSURANCE CORPORATION (LIC),
RELIANCE LIFE INSURANCE COMPANY (RLIC) & BIRLA
SUN LIFE INSURANCE COMPANY (BSLI)”. You are required
to please give few minute to fill the questionnaire and
provide us the valuable information. All the information
provided by you will be treated as confidential. We will be
glad to share the summary of the survey with you…..
Instructions:
You may mark more than one options if relevant.
You are free to put your remarks in every blank provided.
1. Name of the Company ……………………..
2. Complete Address ……………………………
3. Name of HR Head …………………………….
4. E-mail Address …………………………………..
5. Contact No. ……………………………………
6. Work Force of the company …………………..
7. Turnover rate …………………………
8. Does your organization have other units in India (Yes/No)
………………….
9. If Yes, how many permanent employees do you have in each
units
1) ………….. 2)…………… 3) ……………….
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120. A. INDUCTION PROGRAM
1. Does your company provide induction for new employees?
a) Yes b) No
2. Who participates in delivering the function?
a) HR Department b) Related Department
c) All Departments d) Any, other please specify……
3. Does Induction is?
a) Same for all b) Different for different levels
B. BEHAVIORAL TRAINING
4. How does the company recognize the need of training?
a) Through Questionnaire b) Performance Monitoring
c) Refernce from supervisor d) Absence in pride
e) Defective Quality Product f ) Unsatisfactory promotions
5. What type of training is conducted?
a) On the job training b) Class room sessions
c) Online Training d) Apprentice Training
f) Outdoor training f ) Any, other please specify……
6. What is the annual budget for training?
a) 1-2 Lac. b) 2-3 Lac
c) 3-5 Lac. d) 5-10 Lac.
e) Any, other please specify……
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121. 7. What is the module duration for training programmee?
a) Less than a week b) Minimum of 2 hrs to 2 days
c) Maximum 6 - 7 days d) For 4 week
C. MOTIVATIONAL TOOLS
8. Does the company provide any profit sharing policy?
a) ESOP’s b) Bonus
c) Shares d) None
e) Any, other please specify……
9. Does the company provide any recreational activities (You can mark
more than one options in case applicable)?
a) Picnics b) Tours
c) Family Outings d) None
e) Any, other please specify……
10. Does the company provide any retirement benefits?
a) Gratuity b) VRS
c) PF (Provident Fund) d) Pension
e) Old Age Security f ) Any, other please specify……
D. WELFARE ACTIVITIES
11. Does the company has any special aid facility (You can mark more
than one options in case applicable)?
a) On duty Doctors b) Collaboration with Hospitals
c) Ambulance for Emergency d) First aid kit
e) None f ) Any, other please specify……
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122. 12. Does the company adopt any on job safety measures?
a) Fire Safety b) Electric/Shock Safety
c) Radiation Safety (if any) d) Handling of machinery
e) None f ) Any, other please specify……
E. REWARD AND RECOGNITION
13. What appreciation schemes are being followed by your
organization?
a) Appreciate Publically b) Incentives
c) Increments d) Promotions
e) Any, other please specify……
14. What are various rewards and recognition schemes for the
organization?
a) Additional pay for extra work b) Paid Vacations
c) Overtime d) Monetary Rewards
e) Perks f ) Any, other please specify……
15. How do you recognize outstanding performer?
a) Regularity b) Punctuality
c) Initiative d) Extra work
e) Productivity f ) Any, other please specify……
16. Any Suggestions:-
THANKS FOR YOUR VALUEABLE HELP!
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123. Images
Official Website :
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124. Facebook Page Review :
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125. 114