Description
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
A STUDY O THE FU CTIO S OF THE HR DEPARTME T OF ICICI PRUDETIAL LIFEISURACE Co. Ltd. A report on Internship Training Undergone at ICICI PRUDE TIAL LIFE I SURA CE Ltd. Ramcon Fortuna Towers CHE AI - 34.
Submitted in partial fulfillment of the Requirement for the award of the degree of MASTER OF BUSI ESS ADMI ISTRATIO
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CO TE TS Sr. o. 1 Particulars I DUSTRY PROFILE Page o. 4
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COMPA Y PROFILE
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I TRODUCTIO
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HISTORY OF ICICI Prulife
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VISIO & VALUES
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DEPARTME TATIO HR DEPARTME T
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EXPERIE CE
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CO CLUSIO
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BIBLIOGRAPHY
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INDUSTRY PROFILE
I SURA CE I I DIA
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government.
In order to provide strict state control over Insurance business many acts were passed, th first being The Insurance Act, 1938. The Life Insurance in India was completely nationalised only on 19 th Janurary, 1956 through the Life Insurance Corporation Act, 1956. Nationalization was accomplished by the government acquisition of the management of the existing insurance companies. This resulted in the formation of the Life Insurance Corporation of India on 1st September 1956 which enjoyed complete monopoly in the life insurance industry till the year 1999.
The remaining 100 odd General Insurance companies were nationalized by the General Insurance Business (Nationalisation) Act, 1972 subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New
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India Assurance, Oriental Insurance, United India Insurance which were headquartered in each of the four metropolitan cities.
Till end of 1999-2000 fiscal year, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance (both life and non-life) providers in India.The year 1999 saw the entrance of private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act (IRDA) in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies.
MAJOR PLAYERS
The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment of just Rs.3, 000 crore in three years of liberalization. The private life insurance players have been significantly improving their market share when compared to 50 years Old Corporation (i.e. LIC). As per the figures compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96 crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In terms of number of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC (The Economic Times, 21 March, 2004).
The ICICI Prudential topped among the private players in terms of premium collection. It recorded a market share of 25 per cent, followed by Birla SunLife with 15 percent, HDFC Standard and Max New York Life with a market share of approximately 15 per cent each. 4
In case of private non-life insurance players, which their market share raised to 14.13 per cent, recorded a growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per cent, registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the end of January 2004. Among the private non-life insurance players, ICICI Lombard topped the list with a market share of 3.05 per cent in one year period and with an annual growth rate of 131.6 per cent, followed by Bajaj Allianz with 2.91 per cent market share and Tata AIG with 2.27 per cent market share and with an annual growth rate of 62.60 per cent.
LIFE INSURERS
Life Insurance Corporation of India SBI Life Insurance Co. Ltd Allianz Bajaj Life Insurance Co. Ltd. Om Kotak Mahindra Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd Birla Sunlife Insurance Co. Ltd I G Vysya Life Insurance Co. Ltd Tata-AIG Life Insurance Co.Ltd Metlife India Insurance Co. Pvt. Ltd AMP Sanmar Assurance Co. Ltd Dabur CGU Life Insurance Co. Pvt. Ltd Max ew York Life Insurance Co. Ltd
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NON-LIFE INSURERS
ational Insurance Co. Ltd ew Indian Assurance Co. Ltd Oriental Insurance Co. Ltd United India Insurance Co. Ltd Tata AIG General Insurance Co. Ltd Bajaj Allianz General Insurance Co. Ltd IFFCO Tokio General Insurance Co. Ltd ICICI Lombard General Insurance Co. Ltd Reliance General Insurance Co. Ltd Royal Sundaram Alliance Insurance Co. Ltd
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COMPANY PROFILE
India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank Ltd.-one of India's foremost financial services company- and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
They began their operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA) and are headquartered in Mumbai. Today, their nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 banc assurance partners.
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INTRODUCTION
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. The ICICI Prudential edge comes from the commitment to their customers, in all that they do - be it product development, distribution, the sales process or servicing. ICICI Prudential products have been developed after a clear and thorough understanding of customer needs. Having the right products is the first step, but it's equally important to ensure that customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute their products. Robust risk management and underwriting practices form the core of their business. With clear guidelines in place they ensure a smooth and hassle-free claims process. Entrusted with helping customers meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. Their 16000+ strong staff is given the opportunity to learn and grow, everyday in a multitude of ways. This keeps them engaged and enthusiastic, so that they can deliver on the promise to cover customer, at every step of life. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
DISTRIBUTIO ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of January 31, 2007 the company has over 580 offices across the country and over 234,000 advisors. 8
The company has over 20 banc assurance partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs, MFIs and Corporates for the distribution of rural policies.
PLA S There are two main types of plans - ULIP and Traditional. Unit Linked Insurance Product ULIPs have gained high acceptance due to attractive features they offer. These include: Flexibility: Flexibility to choose sum assured. Flexibility to choose premium amount. Option to change level of Premium/ Sum Assured even after the plan has started. Flexibility to change asset allocation by switching between funds. Transparency: Charges in the plan and net amount invested are known to the customer. Customer has the convenience of tracking his/her investment performance on a daily basis. Liquidity: Customer has the option to withdraw money after few years i.e. the option of low minimum tenure. Partial or systematic withdrawals are allowed. Fund Options: A choice of funds is provided to customers ranging from equity, debt, cash or a combination. They can choose the fund mix based on desired asset allocation.
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Traditional Endowment Plans These are the old type of plans available. These plans cater to customers with a low risk appetite. Some of the common features of the traditional plans are: Steady Investment: Major chunk of investible funds are in debt instruments. Though low, but steady and almost assured returns are expected over the long term. Death Benefit: death benefit is sum assured with guaranteed and vested bonus. Asset Creation: Helps in asset creation as they are for a long tenure. Fixed Ratios: Premium to sum assured ratios is fixed for each plan and age. Withdrawals: Withdrawals are generally not allowed before maturity.
PRODUCTS
I SURA CE SOLUTIO S FOR I DIVIDUALS ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced up to 4 riders, to create a customized solution for each policyholder.
Savings & Wealth Creation Solutions Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. Save 'n' Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. 10
LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options - Preserver, Protector, Balancer and Maximizer. Life Link Super is a single premium unit linked insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for longterm wealth creation. Invest Shield Life ew is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. Invest Shield Cash bak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Protection Solutions LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium &single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.
Child Plans Education insurance under the Smart Kid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. Smart Kid plans are also available in unit-linked form - both single premium and regular premium.
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Retirement Solutions ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers an annuity option (guaranteed income for life) at the time of retirement. LifeLink Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care: Diabetes Care is the first ever critical illness product especially for individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover. Hospital Care: Hospital Care is structured to ensure customers receive a predetermined insurance amount for each procedure or hospitalization, even if they spend less. Further, its long-term design of a term between 10-20 years, assures policyholders the guaranteed cushion of insurance cover even if they make a claim during the term. Available for individuals between the ages of 1-60 years, this is one of the first products that will cover people up to the age of 80 years.
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GROUP I SURA CE SOLUTIO S ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Prudential offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers, they offer immediate annuities to superannuation funds not managed by them. Group Term Plan: ICICI Prudential's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider
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sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid and CashPlus. Waiver of Premium: In case of total and permanent disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with LifeTime Super, LifeTime Super Pension and CashPlus.
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HISTORY OF ICICI PRUDENTIAL
As mentioned earlier ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services company - and Prudential plc - a leading international financial services group headquartered in the United Kingdom.
ICICI Bank ICICI Bank ( YSE:IB ) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79 billion) as on March 31, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call centers and internet banking to ensure that customers have access to its services at all times.
Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £251 billion of funds worldwide (as of 31 December 2006). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets exJapan as at June 2006. Its fund management business has expanded into a total of ten 15
markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. ICICI Prudential has been the market leader in the private life insurance sector contributing to 30% of the growth share followed by the SBI Life Insurance with 18% share. Members like Ms. Shikha Sharma, C.E.O & M.D., Ms. Anita Pai, E.V.P Customer Service & Technology, Mr. Puneet Nanda, C.I.O, Mr. Binayak Dutta, Chief Sales & Distribution, have been with the company since its inception in 2000 and are instrumental in developing ICIC Prudential to this level. The first policy was sold on 12th December, 2000. Within 1 year ICICI Prudential achieved 25000 policies and thereby growing at a faster rate achieved 1 million policies by October, 2004. By 2010 ICICI Prudential has a target to achieve 20 million customers.
Chart showing the achievement of 1 million policies from the year of inception
AWARDS & RECOGNITION
AWARDS India's Most Customer Responsive Insurance Company Avaya GlobalConnect - Economic Times Customer Responsiveness Awards. 16
Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted Brands - 2003, 2004 and 2005. Prudence Customer Centricity Award 2004 & 2005 Prudential Corporation Asia. Best Life Insurer 2003 Outlook Money Awards 2003 & 2004 Superbrand 2003-04 Silver Effie for Effectiveness of the 'Retire from Work not life' advertising campaign Effies 2003 RECOG ITIO S IMM Award for Excellence Institute of Marketing & Management Organisation with Innovative HR Practices Indira Group of Institutes Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence
VISION & VALUES
VISIO
" To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass people and service. "
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The dominance here is meant in making ICICI Prudential a "Role Model" for other insurance companies and also to increase in scale. They believe in building on trust since it's critical for a long-term relationship by people from all cadres in the world and provide the best services.
They hope to achieve vision by:
Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to policyholders. Providing an enabling environment to foster growth and learning for employees. And above all, building transparency in all their dealings.
Their vision has given them a direction to reach out and make a mark in the dynamic industry.
VALUES
The keystones of ICICI Prudential's success have been their values which shine forth in all they do. Every member is committed to 5 core values:
Integrity - Be honest and fair in what you say and do. Customer First - Own the customer & deliver the promise. Boundryless - Never say 'Its not my job'
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Ownership - If its to be, its up to me. Passion - Boundless energy and enthusiasm.
DEPARTMENTATION
Departmentation is an element of the organizing process. Departmentation may be defined as a process of grouping individual jobs into departments. It involves grouping of activities and employees into departments so as to facilities and employees in to departments so as to facilities the accomplishment of organization objectives. It is a
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means of dividing the large & complete organization into smaller & flexible administrative unit.
The various departments in ICICI Prudential are:
Underwriting & Claims Human Resource Customer Service & Operations Marketing Sales Finance Investments Business Intelligence Actuarial Information Technology
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HUMAN RESOURCE DEPARTMENT
A brief on the Human Resource department and its functions in ICICI prudential are as follows?
This report is on the ICICI Prudential branches in state of Tamil Nadu. The whole of TN is divided into two: Tamil Nadu 1 & 2.
The Human Resource functions belonging to Tamil Nadu 1 is controlled by the HR department in the Nungambakkam branch of Chennai by Mr. Mark Joseph and Mr. Bejoy Varghese. Tamil Nadu 2 is controlled from Coimbatore by Mr. Joseph Stany. This HR department works only for the Sales Department. There are totally 52 branches in Tamil Nadu and all the HR activites except the recruitment process is fully centralized.
HUMAN RESOURCE ______________________________________________ Recruitment Functional HR
HR Manager
HR Manager Employee Welfare Corporate Governance Performance Appraisal Salary & Wages.
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RECRUITME T Recruitment process:
Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Through planning, a management strives to have the right number and the right kind of people at the right place, at the right time to do things which result in both the organization and the individual receiving the maximum long range benefits. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. There are two sources of recruitment. They are Internal source and External source of recruitment. Internal source of recruitment means selecting the candidate for the position from the employers of the organization itself. External source of recruitment means selecting the candidate from outside the organization. HR department will understand the need for additional man power and then they will go for selection process. If internal source of employees are not available, they go for external source. Applications will be scrutinized and the eligibility candidates are short listed. They will be called for writing a test. Those candidates, who cleared the test, will be called for an interview. Once they get through the interview, their certificates will be verified. Selected candidates will be given offer letters.
HR Planning
SOURCES OF RECRUITME TRecruiCmPrnutdential @ I CI t I e I TER AL SOURCE EXTER AL SOURCE Pinnacle Consultancies; Talent Hunt; Direct Walk-in's;
Selection
Pinnacle: This is a source of internal recruitment where off-load job employees are given an opportunity to work on-load througlh caemesnsessment Development Centers (ADC). In this
Pa nA t
programme the employees are tested in terms of their presentation skills, problem solving 22
ability, communication skills, professional knowledge, team leading ability, aggressiveness, and persistence with the job profile etc. Every employee has to maintain a goal sheet where the targets are set. If the employee achieves the goal sheet within a specified period he stands to have a chance of attending the ADC. If the employee crosses the hurdle he is promoted to a higher designation. If he fails to do so he can wait till he becomes eligible for the next ADC.
Talent Hunt: Popularly known in the market as employee reference. Employees of ICICI Prudential can refer any candidate of his choice. In case the candidate is hired and stays with the organization for a minimum of 3 months, the employee who referred the candidate stands to gain a reward of Rs. 10,000/- where Grade I candidates are concerned and a reward of 8.3% of the salary of the hired candidate if his designation belongs to Grade II. This is done in order to increase employee morale, to strengthen the value of ownership.
Direct Walk-in-interview: Venues are arranged for direct walk-in. Candidates are short listed by the HR people with respect to their performance as mentioned in their resumes and are sent to the second level interview conducted by the respective Line managers. Hired candidates are then required to fill in the Personal Data Form (PDF) and adhere to necessary formalities. Consultancies: ICICI Prudential has been maintaining good relation with a number of consultancies since its inception. The whole process of recruiting through consultancies is as follows. Requirements from all the branches reach the HR department. The HR department then contacts the Consultants and gives its requirements. Consultants then send in suitable candidates with respect to the required designations for interview. The hired candidates are then required to compile with the necessary formalities.
In the month of May and June around 400 were recruited while the attrition was comparatively less which was 75 numbers.
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In case of resignations Exit Interviews are held by the HR manager. Calls are made to the candidates and interviewed. The main reason for resigning is for better prospects. Currently there are 35,145 employees all over India where 2440 numbers belong to Tamil Nadu. Out of 2440, 1250 are active employees and the remaining 1190 have exited the organization. (Source: PACE Dump, ICICI Prudential, as on 23/06/07.)
CORPORATE GOVER A CE
Corporate Governance is given due importance at ICICI Prudential as at its heart are many dedicated people focused on delivering the best results. The organization makes sure that yearly the management gets to meet the employees and this is done on a large scale. The programme conducted is called 'Spandhan' where interactions and participations happen between the management and the work force. Employees are felt free to give suggestions, share any grievances etc. The management makes sure the problems, if any, are solved there itself. If not is taken seriously and considered over a period.
EMPLOYEE WELFARE SALARY & WAGES: Fair salary and wages are given to the employees. Every
empolyee have to open an ICICI bank account with the organization. The first month salary is received in the form of a bank draft and subsequent month's salary is credited in the bank account.
PERFORMANCE APPRAISAL: Appraisal is done from the top to bottom and do
not follow the 360 degree appraisal. Employees are given a chance for self appraisal also. Based on their performance they do stand a chance to get promoted.
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ENTERTAINMENT: In order to maintian good employment relations various
activites are organized.
Expressions
is a quarterly e-magazine meant for the employees of ICICI Prudential. Articles can be posted on this e-magazine. This is done to enhance the hidden talents in employees.
Toast to the Champ
is an event where sports like Cricket and Table Tennis matches
are held once in two months. This is kind of a relaxation for the employees.
AWARDS: Awards are given to encourage employees to perform even better and to
give in their best. Based on each one's meritocracy awards are given. The awards are as follows:
Howzzat
This is a spot award recognition given to any employee who possess and also adhere to the company's values.
Striker
This award is given if any exceptional demonstation of ICICIPrulife's value is recognized which have contributed to any business practice.
Bestprax
Self nomination of a case study can be done for this award for practices which have a significant impact on business practices.
TRAINING: Training is provided to all the hired candidates for a period of ten days.
The training batches are held every alternate Monday and the food and accomodation are taken care off by the company for this period. If the batch is huge in number the candidates are divided in two batches and training are held at the available ICICI Prudential branch.
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COMPLAI TS: In case of any complaints against an employee, it can be mailed to the HR manager. In case of any fraudulant practices termination is the only solution. Complaints with respect to work place harresments, behaviour, non-adherence to process may result in warnings followed by strict actions if no improvement is observed.
HEALTH CARE: For employees belonging to Grade III and above, activities on stress level management is conducted.
ICICI Prudential has a special software designed by 'People Soft' named PACE for its employees which is used through the intranet. It stands for Personalized Accessible Convenient Easy. This software helps the employees to update their personal details, their bank account numbers, etc. Employees can apply for leave on PACE and can get approval. They have to mark their attendence through the e-muster everyday else their salary will not be paid for that day. In case of any official duty prior notification can be made for these days on PACE. Enployees can also file complaints on it. This has been very helplfull for all employees and it is practiced since the inception of the company.
LEARNING EXPERIENCE
First Week: I was entrusted with the responsibility of getting in contact with a list of Consultancies and their suggested referrences. I had to ask for feedback from the provided referrences to have an idea about the efficiency of the consultants. This gave me exposure to big HR consultancies who have tie-ups with big organizations. 26
Second Week: My relation with the consultancies grew as I kept in touch with the consultants and provided them with the HR requirements for the each relationship. Together we made sure that the interviews took place and the sufficeint number of requirements for candidates were met with.
Third Week: I gave welcome calls to all the hired candidates and helped them with the training batch venue. I made sure the training department was informed about the batch and saw to it the venue was booked for the training. I was also entrusted to take care of candidates' accomodation.
Fourth Week: I was given the responsibility of taking care of post recruitment process. That is calling the hired candidates to fill in a Personal Detail Form (PDF) and collecting the necessary documents from them. On submission of which I had to give them their Offer Letter.
Fifth Week: I had to do paper processing. The filled in PDF's had to be duly checked if its complete and has the necessary line manager and the HR manager's signature along with the candidate's documents and a copy of the offer letter and send it to the centralized entry. Once these PDF's are received in Mumbai they are once again checked and the applicant ID is generated for hiring the candidate on PACE and providing the employee ID.
Sixth Week: I took care of the forms relating to resignation i.e. the resignation acceptance form, the PF withdrawal form and the mediclaim. These had to be tracked on the computer and had to be sent to the centralized entry. An employee can exit the company only if he/she recieves acceptance from his/her reporting manager. He/she must inform it to the HR department where we send the forms to the centralised entry and update this information in PACE.
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CONCLUSION
ICICI Prudential has been growing at a rapid pace since its inception and will continue to grow. The ICICI Prudential edge comes from the commitment to their customers, in all that they do - be it product development, distribution, the sales process or servicing. Their leadership position not only reflects customer satisfaction, but also reveals the business potential in the industry. They have a very dedicated force focused on delivering the best results.
ICICI Prudential is built on the foundation of our core values: Integrity, Customer first, Boundary less, Ownership and Passion that lay a foundation for all their actions. The organization also aims at providing a supportive environment for each employee at every location.
The company is able to conduct its business smoothly mainly because of the coordination and commitment of various departments. They all work towards the objectives of the company keeping their vision in mind and at the same time fulfilling their quality policies. In order to have good employee relations various activities are conducted where there is interaction between the top level management and the employees.
The consultants are also maintaining a good relation with the organization. It is very important to maintain a good relation with the consultancies so that the company's necessary requirements where candidates are concerned are fulfilled. Monthly meets are organized between the company and the consultancies. They are also encouraged by rewarding a sum of Rs. 100,000 for the first 50 hires and extra 50,000 for every extra hire above 50 numbers.
Thus to conclude the success of ICICI Prudential, India's No. 1 private life insurer, is due to the committed work force with an excellent top management. This
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experience has practically given me an idea of how the whole recruitment process works which will be of great use in the future.
BIBLIOGRAPHY
http://www.iciciprulife.com/public/About-us/About-Us.htm http://www.allconferences.com/conferences/20060509074525/ http://indiaonestop.com/insurance/insurance.htm http://en.wikipedia.org/wiki/Insurance http://en.wikipedia.org/wiki/Insurance_in_India
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doc_538077179.docx
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
A STUDY O THE FU CTIO S OF THE HR DEPARTME T OF ICICI PRUDETIAL LIFEISURACE Co. Ltd. A report on Internship Training Undergone at ICICI PRUDE TIAL LIFE I SURA CE Ltd. Ramcon Fortuna Towers CHE AI - 34.
Submitted in partial fulfillment of the Requirement for the award of the degree of MASTER OF BUSI ESS ADMI ISTRATIO
1
CO TE TS Sr. o. 1 Particulars I DUSTRY PROFILE Page o. 4
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COMPA Y PROFILE
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I TRODUCTIO
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HISTORY OF ICICI Prulife
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5
VISIO & VALUES
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DEPARTME TATIO HR DEPARTME T
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EXPERIE CE
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CO CLUSIO
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BIBLIOGRAPHY
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INDUSTRY PROFILE
I SURA CE I I DIA
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government.
In order to provide strict state control over Insurance business many acts were passed, th first being The Insurance Act, 1938. The Life Insurance in India was completely nationalised only on 19 th Janurary, 1956 through the Life Insurance Corporation Act, 1956. Nationalization was accomplished by the government acquisition of the management of the existing insurance companies. This resulted in the formation of the Life Insurance Corporation of India on 1st September 1956 which enjoyed complete monopoly in the life insurance industry till the year 1999.
The remaining 100 odd General Insurance companies were nationalized by the General Insurance Business (Nationalisation) Act, 1972 subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New
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India Assurance, Oriental Insurance, United India Insurance which were headquartered in each of the four metropolitan cities.
Till end of 1999-2000 fiscal year, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance (both life and non-life) providers in India.The year 1999 saw the entrance of private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act (IRDA) in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies.
MAJOR PLAYERS
The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment of just Rs.3, 000 crore in three years of liberalization. The private life insurance players have been significantly improving their market share when compared to 50 years Old Corporation (i.e. LIC). As per the figures compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96 crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In terms of number of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC (The Economic Times, 21 March, 2004).
The ICICI Prudential topped among the private players in terms of premium collection. It recorded a market share of 25 per cent, followed by Birla SunLife with 15 percent, HDFC Standard and Max New York Life with a market share of approximately 15 per cent each. 4
In case of private non-life insurance players, which their market share raised to 14.13 per cent, recorded a growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per cent, registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the end of January 2004. Among the private non-life insurance players, ICICI Lombard topped the list with a market share of 3.05 per cent in one year period and with an annual growth rate of 131.6 per cent, followed by Bajaj Allianz with 2.91 per cent market share and Tata AIG with 2.27 per cent market share and with an annual growth rate of 62.60 per cent.
LIFE INSURERS
Life Insurance Corporation of India SBI Life Insurance Co. Ltd Allianz Bajaj Life Insurance Co. Ltd. Om Kotak Mahindra Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd Birla Sunlife Insurance Co. Ltd I G Vysya Life Insurance Co. Ltd Tata-AIG Life Insurance Co.Ltd Metlife India Insurance Co. Pvt. Ltd AMP Sanmar Assurance Co. Ltd Dabur CGU Life Insurance Co. Pvt. Ltd Max ew York Life Insurance Co. Ltd
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NON-LIFE INSURERS
ational Insurance Co. Ltd ew Indian Assurance Co. Ltd Oriental Insurance Co. Ltd United India Insurance Co. Ltd Tata AIG General Insurance Co. Ltd Bajaj Allianz General Insurance Co. Ltd IFFCO Tokio General Insurance Co. Ltd ICICI Lombard General Insurance Co. Ltd Reliance General Insurance Co. Ltd Royal Sundaram Alliance Insurance Co. Ltd
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COMPANY PROFILE
India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank Ltd.-one of India's foremost financial services company- and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
They began their operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA) and are headquartered in Mumbai. Today, their nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 banc assurance partners.
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INTRODUCTION
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. The ICICI Prudential edge comes from the commitment to their customers, in all that they do - be it product development, distribution, the sales process or servicing. ICICI Prudential products have been developed after a clear and thorough understanding of customer needs. Having the right products is the first step, but it's equally important to ensure that customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute their products. Robust risk management and underwriting practices form the core of their business. With clear guidelines in place they ensure a smooth and hassle-free claims process. Entrusted with helping customers meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. Their 16000+ strong staff is given the opportunity to learn and grow, everyday in a multitude of ways. This keeps them engaged and enthusiastic, so that they can deliver on the promise to cover customer, at every step of life. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
DISTRIBUTIO ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of January 31, 2007 the company has over 580 offices across the country and over 234,000 advisors. 8
The company has over 20 banc assurance partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs, MFIs and Corporates for the distribution of rural policies.
PLA S There are two main types of plans - ULIP and Traditional. Unit Linked Insurance Product ULIPs have gained high acceptance due to attractive features they offer. These include: Flexibility: Flexibility to choose sum assured. Flexibility to choose premium amount. Option to change level of Premium/ Sum Assured even after the plan has started. Flexibility to change asset allocation by switching between funds. Transparency: Charges in the plan and net amount invested are known to the customer. Customer has the convenience of tracking his/her investment performance on a daily basis. Liquidity: Customer has the option to withdraw money after few years i.e. the option of low minimum tenure. Partial or systematic withdrawals are allowed. Fund Options: A choice of funds is provided to customers ranging from equity, debt, cash or a combination. They can choose the fund mix based on desired asset allocation.
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Traditional Endowment Plans These are the old type of plans available. These plans cater to customers with a low risk appetite. Some of the common features of the traditional plans are: Steady Investment: Major chunk of investible funds are in debt instruments. Though low, but steady and almost assured returns are expected over the long term. Death Benefit: death benefit is sum assured with guaranteed and vested bonus. Asset Creation: Helps in asset creation as they are for a long tenure. Fixed Ratios: Premium to sum assured ratios is fixed for each plan and age. Withdrawals: Withdrawals are generally not allowed before maturity.
PRODUCTS
I SURA CE SOLUTIO S FOR I DIVIDUALS ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced up to 4 riders, to create a customized solution for each policyholder.
Savings & Wealth Creation Solutions Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. Save 'n' Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years. 10
LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options - Preserver, Protector, Balancer and Maximizer. Life Link Super is a single premium unit linked insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan specially structured for longterm wealth creation. Invest Shield Life ew is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. Invest Shield Cash bak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Protection Solutions LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium &single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.
Child Plans Education insurance under the Smart Kid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. Smart Kid plans are also available in unit-linked form - both single premium and regular premium.
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Retirement Solutions ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers an annuity option (guaranteed income for life) at the time of retirement. LifeLink Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover. Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care: Diabetes Care is the first ever critical illness product especially for individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover. Hospital Care: Hospital Care is structured to ensure customers receive a predetermined insurance amount for each procedure or hospitalization, even if they spend less. Further, its long-term design of a term between 10-20 years, assures policyholders the guaranteed cushion of insurance cover even if they make a claim during the term. Available for individuals between the ages of 1-60 years, this is one of the first products that will cover people up to the age of 80 years.
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GROUP I SURA CE SOLUTIO S ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Prudential offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimize returns for the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: In addition to the annuities offered to existing superannuation customers, they offer immediate annuities to superannuation funds not managed by them. Group Term Plan: ICICI Prudential's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider
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sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid and CashPlus. Waiver of Premium: In case of total and permanent disability due to an accident, the future premiums continue to be paid by the company till the time of maturity. This rider is available with LifeTime Super, LifeTime Super Pension and CashPlus.
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HISTORY OF ICICI PRUDENTIAL
As mentioned earlier ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services company - and Prudential plc - a leading international financial services group headquartered in the United Kingdom.
ICICI Bank ICICI Bank ( YSE:IB ) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79 billion) as on March 31, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call centers and internet banking to ensure that customers have access to its services at all times.
Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £251 billion of funds worldwide (as of 31 December 2006). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets exJapan as at June 2006. Its fund management business has expanded into a total of ten 15
markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates. ICICI Prudential has been the market leader in the private life insurance sector contributing to 30% of the growth share followed by the SBI Life Insurance with 18% share. Members like Ms. Shikha Sharma, C.E.O & M.D., Ms. Anita Pai, E.V.P Customer Service & Technology, Mr. Puneet Nanda, C.I.O, Mr. Binayak Dutta, Chief Sales & Distribution, have been with the company since its inception in 2000 and are instrumental in developing ICIC Prudential to this level. The first policy was sold on 12th December, 2000. Within 1 year ICICI Prudential achieved 25000 policies and thereby growing at a faster rate achieved 1 million policies by October, 2004. By 2010 ICICI Prudential has a target to achieve 20 million customers.
Chart showing the achievement of 1 million policies from the year of inception
AWARDS & RECOGNITION
AWARDS India's Most Customer Responsive Insurance Company Avaya GlobalConnect - Economic Times Customer Responsiveness Awards. 16
Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted Brands - 2003, 2004 and 2005. Prudence Customer Centricity Award 2004 & 2005 Prudential Corporation Asia. Best Life Insurer 2003 Outlook Money Awards 2003 & 2004 Superbrand 2003-04 Silver Effie for Effectiveness of the 'Retire from Work not life' advertising campaign Effies 2003 RECOG ITIO S IMM Award for Excellence Institute of Marketing & Management Organisation with Innovative HR Practices Indira Group of Institutes Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence
VISION & VALUES
VISIO
" To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass people and service. "
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The dominance here is meant in making ICICI Prudential a "Role Model" for other insurance companies and also to increase in scale. They believe in building on trust since it's critical for a long-term relationship by people from all cadres in the world and provide the best services.
They hope to achieve vision by:
Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to policyholders. Providing an enabling environment to foster growth and learning for employees. And above all, building transparency in all their dealings.
Their vision has given them a direction to reach out and make a mark in the dynamic industry.
VALUES
The keystones of ICICI Prudential's success have been their values which shine forth in all they do. Every member is committed to 5 core values:
Integrity - Be honest and fair in what you say and do. Customer First - Own the customer & deliver the promise. Boundryless - Never say 'Its not my job'
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Ownership - If its to be, its up to me. Passion - Boundless energy and enthusiasm.
DEPARTMENTATION
Departmentation is an element of the organizing process. Departmentation may be defined as a process of grouping individual jobs into departments. It involves grouping of activities and employees into departments so as to facilities and employees in to departments so as to facilities the accomplishment of organization objectives. It is a
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means of dividing the large & complete organization into smaller & flexible administrative unit.
The various departments in ICICI Prudential are:
Underwriting & Claims Human Resource Customer Service & Operations Marketing Sales Finance Investments Business Intelligence Actuarial Information Technology
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HUMAN RESOURCE DEPARTMENT
A brief on the Human Resource department and its functions in ICICI prudential are as follows?
This report is on the ICICI Prudential branches in state of Tamil Nadu. The whole of TN is divided into two: Tamil Nadu 1 & 2.
The Human Resource functions belonging to Tamil Nadu 1 is controlled by the HR department in the Nungambakkam branch of Chennai by Mr. Mark Joseph and Mr. Bejoy Varghese. Tamil Nadu 2 is controlled from Coimbatore by Mr. Joseph Stany. This HR department works only for the Sales Department. There are totally 52 branches in Tamil Nadu and all the HR activites except the recruitment process is fully centralized.
HUMAN RESOURCE ______________________________________________ Recruitment Functional HR
HR Manager
HR Manager Employee Welfare Corporate Governance Performance Appraisal Salary & Wages.
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RECRUITME T Recruitment process:
Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Through planning, a management strives to have the right number and the right kind of people at the right place, at the right time to do things which result in both the organization and the individual receiving the maximum long range benefits. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. There are two sources of recruitment. They are Internal source and External source of recruitment. Internal source of recruitment means selecting the candidate for the position from the employers of the organization itself. External source of recruitment means selecting the candidate from outside the organization. HR department will understand the need for additional man power and then they will go for selection process. If internal source of employees are not available, they go for external source. Applications will be scrutinized and the eligibility candidates are short listed. They will be called for writing a test. Those candidates, who cleared the test, will be called for an interview. Once they get through the interview, their certificates will be verified. Selected candidates will be given offer letters.
HR Planning
SOURCES OF RECRUITME TRecruiCmPrnutdential @ I CI t I e I TER AL SOURCE EXTER AL SOURCE Pinnacle Consultancies; Talent Hunt; Direct Walk-in's;
Selection
Pinnacle: This is a source of internal recruitment where off-load job employees are given an opportunity to work on-load througlh caemesnsessment Development Centers (ADC). In this
Pa nA t
programme the employees are tested in terms of their presentation skills, problem solving 22
ability, communication skills, professional knowledge, team leading ability, aggressiveness, and persistence with the job profile etc. Every employee has to maintain a goal sheet where the targets are set. If the employee achieves the goal sheet within a specified period he stands to have a chance of attending the ADC. If the employee crosses the hurdle he is promoted to a higher designation. If he fails to do so he can wait till he becomes eligible for the next ADC.
Talent Hunt: Popularly known in the market as employee reference. Employees of ICICI Prudential can refer any candidate of his choice. In case the candidate is hired and stays with the organization for a minimum of 3 months, the employee who referred the candidate stands to gain a reward of Rs. 10,000/- where Grade I candidates are concerned and a reward of 8.3% of the salary of the hired candidate if his designation belongs to Grade II. This is done in order to increase employee morale, to strengthen the value of ownership.
Direct Walk-in-interview: Venues are arranged for direct walk-in. Candidates are short listed by the HR people with respect to their performance as mentioned in their resumes and are sent to the second level interview conducted by the respective Line managers. Hired candidates are then required to fill in the Personal Data Form (PDF) and adhere to necessary formalities. Consultancies: ICICI Prudential has been maintaining good relation with a number of consultancies since its inception. The whole process of recruiting through consultancies is as follows. Requirements from all the branches reach the HR department. The HR department then contacts the Consultants and gives its requirements. Consultants then send in suitable candidates with respect to the required designations for interview. The hired candidates are then required to compile with the necessary formalities.
In the month of May and June around 400 were recruited while the attrition was comparatively less which was 75 numbers.
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In case of resignations Exit Interviews are held by the HR manager. Calls are made to the candidates and interviewed. The main reason for resigning is for better prospects. Currently there are 35,145 employees all over India where 2440 numbers belong to Tamil Nadu. Out of 2440, 1250 are active employees and the remaining 1190 have exited the organization. (Source: PACE Dump, ICICI Prudential, as on 23/06/07.)
CORPORATE GOVER A CE
Corporate Governance is given due importance at ICICI Prudential as at its heart are many dedicated people focused on delivering the best results. The organization makes sure that yearly the management gets to meet the employees and this is done on a large scale. The programme conducted is called 'Spandhan' where interactions and participations happen between the management and the work force. Employees are felt free to give suggestions, share any grievances etc. The management makes sure the problems, if any, are solved there itself. If not is taken seriously and considered over a period.
EMPLOYEE WELFARE SALARY & WAGES: Fair salary and wages are given to the employees. Every
empolyee have to open an ICICI bank account with the organization. The first month salary is received in the form of a bank draft and subsequent month's salary is credited in the bank account.
PERFORMANCE APPRAISAL: Appraisal is done from the top to bottom and do
not follow the 360 degree appraisal. Employees are given a chance for self appraisal also. Based on their performance they do stand a chance to get promoted.
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ENTERTAINMENT: In order to maintian good employment relations various
activites are organized.
Expressions
is a quarterly e-magazine meant for the employees of ICICI Prudential. Articles can be posted on this e-magazine. This is done to enhance the hidden talents in employees.
Toast to the Champ
is an event where sports like Cricket and Table Tennis matches
are held once in two months. This is kind of a relaxation for the employees.
AWARDS: Awards are given to encourage employees to perform even better and to
give in their best. Based on each one's meritocracy awards are given. The awards are as follows:
Howzzat
This is a spot award recognition given to any employee who possess and also adhere to the company's values.
Striker
This award is given if any exceptional demonstation of ICICIPrulife's value is recognized which have contributed to any business practice.
Bestprax
Self nomination of a case study can be done for this award for practices which have a significant impact on business practices.
TRAINING: Training is provided to all the hired candidates for a period of ten days.
The training batches are held every alternate Monday and the food and accomodation are taken care off by the company for this period. If the batch is huge in number the candidates are divided in two batches and training are held at the available ICICI Prudential branch.
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COMPLAI TS: In case of any complaints against an employee, it can be mailed to the HR manager. In case of any fraudulant practices termination is the only solution. Complaints with respect to work place harresments, behaviour, non-adherence to process may result in warnings followed by strict actions if no improvement is observed.
HEALTH CARE: For employees belonging to Grade III and above, activities on stress level management is conducted.
ICICI Prudential has a special software designed by 'People Soft' named PACE for its employees which is used through the intranet. It stands for Personalized Accessible Convenient Easy. This software helps the employees to update their personal details, their bank account numbers, etc. Employees can apply for leave on PACE and can get approval. They have to mark their attendence through the e-muster everyday else their salary will not be paid for that day. In case of any official duty prior notification can be made for these days on PACE. Enployees can also file complaints on it. This has been very helplfull for all employees and it is practiced since the inception of the company.
LEARNING EXPERIENCE
First Week: I was entrusted with the responsibility of getting in contact with a list of Consultancies and their suggested referrences. I had to ask for feedback from the provided referrences to have an idea about the efficiency of the consultants. This gave me exposure to big HR consultancies who have tie-ups with big organizations. 26
Second Week: My relation with the consultancies grew as I kept in touch with the consultants and provided them with the HR requirements for the each relationship. Together we made sure that the interviews took place and the sufficeint number of requirements for candidates were met with.
Third Week: I gave welcome calls to all the hired candidates and helped them with the training batch venue. I made sure the training department was informed about the batch and saw to it the venue was booked for the training. I was also entrusted to take care of candidates' accomodation.
Fourth Week: I was given the responsibility of taking care of post recruitment process. That is calling the hired candidates to fill in a Personal Detail Form (PDF) and collecting the necessary documents from them. On submission of which I had to give them their Offer Letter.
Fifth Week: I had to do paper processing. The filled in PDF's had to be duly checked if its complete and has the necessary line manager and the HR manager's signature along with the candidate's documents and a copy of the offer letter and send it to the centralized entry. Once these PDF's are received in Mumbai they are once again checked and the applicant ID is generated for hiring the candidate on PACE and providing the employee ID.
Sixth Week: I took care of the forms relating to resignation i.e. the resignation acceptance form, the PF withdrawal form and the mediclaim. These had to be tracked on the computer and had to be sent to the centralized entry. An employee can exit the company only if he/she recieves acceptance from his/her reporting manager. He/she must inform it to the HR department where we send the forms to the centralised entry and update this information in PACE.
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CONCLUSION
ICICI Prudential has been growing at a rapid pace since its inception and will continue to grow. The ICICI Prudential edge comes from the commitment to their customers, in all that they do - be it product development, distribution, the sales process or servicing. Their leadership position not only reflects customer satisfaction, but also reveals the business potential in the industry. They have a very dedicated force focused on delivering the best results.
ICICI Prudential is built on the foundation of our core values: Integrity, Customer first, Boundary less, Ownership and Passion that lay a foundation for all their actions. The organization also aims at providing a supportive environment for each employee at every location.
The company is able to conduct its business smoothly mainly because of the coordination and commitment of various departments. They all work towards the objectives of the company keeping their vision in mind and at the same time fulfilling their quality policies. In order to have good employee relations various activities are conducted where there is interaction between the top level management and the employees.
The consultants are also maintaining a good relation with the organization. It is very important to maintain a good relation with the consultancies so that the company's necessary requirements where candidates are concerned are fulfilled. Monthly meets are organized between the company and the consultancies. They are also encouraged by rewarding a sum of Rs. 100,000 for the first 50 hires and extra 50,000 for every extra hire above 50 numbers.
Thus to conclude the success of ICICI Prudential, India's No. 1 private life insurer, is due to the committed work force with an excellent top management. This
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experience has practically given me an idea of how the whole recruitment process works which will be of great use in the future.
BIBLIOGRAPHY
http://www.iciciprulife.com/public/About-us/About-Us.htm http://www.allconferences.com/conferences/20060509074525/ http://indiaonestop.com/insurance/insurance.htm http://en.wikipedia.org/wiki/Insurance http://en.wikipedia.org/wiki/Insurance_in_India
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